TABLE OF CONTENTS

1. Renewable Energy Sector

1.1 Global Scenario

1.2 India Scenario

1.3 Gujarat Scenario

1.4 Gujarat Scenario: Success Stories
1.5 Gujarat Scenario: Vision 2020 and Investment Opportunities
1.6 Government Initiatives and Interventions
1. RENEWABLE ENERGY SECTOR
1.1 RENEWABLE ENERGY SECTOR: GLOBAL SCENARIO
 RENEWABLE ENERGY SECTOR: GLOBAL SCENARIO

Sufficient renewable energy resources are available to satisfy World’s current and future energy demand.
Solar energy alone could meet the existing global energy needs 10,000 times over

• From 2011 to 2012 renewable energy capacity saw a growth of 8.5 1 China
percent and reached to a total renewable energy capacity of 1,470GW
in 2012 2 US
• Solar industry experienced a market growth of 18 percent in 2013 Top 6 3 Germany
countries
• Biofuels grew modestly in 2013, with global production of ethanol and
biodiesel sprouting up to USD 97.8 billion in investment compared to
RE capacity, 4 Spain
USD 95.2 billion in 2012 Dec.2012
5 Italy
• Wind energy saw an investment of ~USD 58.5 billion in 2013
6 India
World Total Energy Consumption (Quadrillion, Btu)

1000 Renewable Power Capacities

Total 480
CAGR: 1.5%
OECD 500 (Gigawatts)
800
400
Total 300
600 Non
210
200 128 90 86
OECD 100 71 31 29 24
400 World
Total 0
200

0
2010 2020 2030 2040

Source: REN 21, www.cleantechnica.com Note: RE stands for Renewable Energy

 RENEWABLE ENERGY SECTOR: GLOBAL SCENARIO

European Union has expressed commitment to a 20:20:20 ambition: 20 percent emissions reduction,
20 percent renewable energy and 20 percent improvement in energy efficiency by 2020

Selected indicators of RE
Unit 2011 2012 Energy
market development
dependence
Global new investment in billion
279 244 and energy
renewable energy (annual) USD
Solar PV cell production
security
GW 71 100
(annual)
billion
Ethanol production (annual) 84.2 83.1 Technological Continued
litres
billion
progress growth in
Biodiesel production (annual) 22.4 22.5 driving down
litres energy
Countries with policy targets # 118 138
capital cost GROWH demand

Countries with feed-in policies # 94 99 DRIVERS

Global Clean Energy Projected Growth

500 2013 - 2023 (USD Billion) Focus on Stakeholder
397.8
400 sustainability pressure for
300 247.6 and lowering environmen
158.4 environmental tal action
200 145.6 2013
97.8 93.8 91.3 impact
100 58.5 2023
0
Total Biofuels Wind Power Solar Power

Source: REN 21, Clean Edge, Inc. , 2014

1.2 RENEWABLE ENERGY SECTOR: INDIA SCENARIO
 RENEWABLE ENERGY SECTOR: INDIA SCENARIO

Renewable energy is becoming an increasingly important element of India’s national energy mix

• As per the Ministry of New and Renewable Energy (MNRE), India’s total renewable potential is ~245 GW, however the current
installed capacity is only 28 GW
• Wind energy dominates India’s renewable energy sector. As on 31st March, 2013 wind accounts for ~68 percent (i.e. 19.05 GW) of
India’s total renewable installed capacity
• To boost the growth of renewable energy in India, Government of India and many state governments have incentivized the
installation of renewable energy through various policies and fiscal measures
• By 2050, 69 percent of the country’s energy generation will be from renewable energy (Greenpeace vision)

Break-up of installed power generation capacity Installed capacity of renewable energy in India

58.30% 6%
12.80% Wind
0.30% small hydro
12.30% Biomass
12.90%
0.50% Solar
67.90% Others
9% 17.70%
2.10%

Coal Renewable Hydro Nuclear Oil Gas

Source: Ministry of Power, Government of India;

Ministry of New and Renewable Energy, Government of India
 RENEWABLE ENERGY SECTOR INDIA SCENARIO: WIND ENERGY

India ranks fifth in the world in wind power installed capacity

with an installed capacity of19,565 MW (as on June 30th, 2013)

• To drive commercialization of wind power, promote research and development in wind power and to support wind power
projects in country, Government of India initiated the “Wind Power Program” in the year 1984
• Wind power accounts for 8.5 percent of total energy mix of India
• 95 percent of wind power comes from 5 states: Tamil Nadu, Gujarat, Maharashtra, Rajasthan and Karnataka

Global installed capacity of wind State wise installed capacity (MW)

19565
energy (%) 20000
18000
China 16000
14000
15.7% U.S.A 12000
2.2% 10000 7196
26.6% Germany 8000
3.0% 6000 3294 3250 2717 2170
Spain 4000 514 386 35.1 4.3
2.9% 2000
India 0
2.7%
France
6.5%
Italy
8.1% 21.2% UK
Canada
11.1%
Rest of World

Source: Ministry of New and Renewable Energy, Government of India; IGEF

 RENEWABLE ENERGY SECTOR INDIA SCENARIO: SOLAR ENERGY

India has one of the highest irradiation levels in the world

• Policies at the central government and state government level are the main growth drivers of solar energy sector
• Regulations like Renewable Purchase Obligations (RPOs) inclusion with favorable policies play a major role in
growth of the solar sector
• Gujarat was the first state to release the solar policy in year 2009. In 2010 MNRE launched the Jawaharlal Nehru
National solar Mission (JNNSM) with the objective to add 20 GW of solar power projects by the year 2022

State wise split of solar power projects (MW)

JNNSM Capacity addition target
Phase 1 Phase 2 Phase3
(2009-13) (2013-17) (2017-22) 23 37
115 Gujarat
Utility grid
power including 4000- 100 Rajasthan
1100 20000
roof top 10000 Maharashtra
(MW)
Andhra Pradesh
Off grid 852
Madhya Pradesh
installations 200 1000 2000 553
(MW) Others

Solar collectors
(million square 7 15 20
meters)

Source: Ministry of New and Renewable Energy, Government of India; IGEF

 RENEWABLE ENERGY SECTOR INDIA SCENARIO: BIO ENERGY

Bio energy comprises of bio mass, bio fuels and bio gas. A total of 4,449 MW capacity has been
installed in bio energy in both grid connected and off grid capacities in India as on March 31st, 2013

• Biomass based power generation grew at a CAGR of 21.6 percent and increased from 1,112 MW to 3,601 MW between
FY07-FY13
• 65 percent of biomass based generation comes from baggase based co-generation
• MNRE is drafting a new policy for National Bio Energy Mission which will be implemented in two phases. Phase1 will be
executed in 12th five year plan and Phase 2 in 13th five year plan
• Incentives of USD 557 million will be provided in phase 1 to add 3000 MW capacity during the period

Growth of Biomass based power Biomass power installed capacity

generation (MW) 4000 (MW) 3601

4000
3000

3000 2000
CAGR: 21.6%
776 756
2000 1000 538 491 380 249.9
124.591.3 45.3 43.3 30.5
0
Uttar…

Andhra…
1000

Tamil Nadu

Punjab

Bihar

All India
Haryana
Chattisgarh
Karnataka
Maharashtra

Rajasthan

Gujarat
0
2006-072007-082008-092009-102010-112011-122012-13

Source: Ministry of New and Renewable Energy, Government of India; IGEF

 RENEWABLE ENERGY SECTOR INDIA SCENARIO: SMALL HYDRO POWER

Small Hydro1 Power Capacity increased with CAGR of 11.35

percent from 1.905 MW to 3,632 MW between FY07-FY13
• MNRE is providing 'Central Financial Assistance (CFA)' to set up small/micro hydro projects both in public and private sectors
• Financial assistance of around USD25 million is being provided to the states by the centre for the development of small
hydro-power projects
• Government created a data base for the potential sites for small hydro projects and identified 6,474 such sites with a
potential of ~19.8 MW
• MNRE signed MOU with IIT, Roorkee for development of small hydropower plants on a contractual basis

Small Hydro power generation in State wise installed capacity

India (MW) (MW)
4000 3632

4000 3500
CAGR: 11.35% 3000
3500 2500
3000 2000
2500 1500 964 943
1000 588
2000 300 219 175 158 155 131
1500 500
1000 0
500
0

Source: Ministry of New and Renewable Energy, Government of India; IGEF, Economic Times 1. Projects under 25 MW capacity are
considered as “Small Hydro Power” and comes under renewable energy source in India
 RENEWABLE ENERGY SECTOR INDIA SCENARIO: WAY FORWARD

Interplay of favorable risk-return profile at project level coupled with the emerging Indian merchant
power opportunity creates a positive strategic framework for Indian renewable IPP players
PROJECT LEVEL
•Shorter time-to-commissioning than conventional power projects
•Fast-track project approval- significantly fewer environmental or CERC clearances required compared to conventional
power projects
•Easier to achieve financial closure vis-à-vis larger projects, Greater predictability of project execution
•Plethora of small-to-mid size units in “locally constrained” entrepreneurial setups: ideal for consolidation play
•Bidding route not mandatory for new capacities

FINANCIAL PERSPECTIVE
•Low working capital requirements, particularly for small hydro and wind projects
•Ability to boost returns through emissions trading options
•Regulatory support, including preferential tariffs
•Fiscal incentives (subsidies, grants and tax incentives) available in some States

SUSTAINABILITY
•Lower fuel sourcing and pricing risk compared to conventional power projects
•Opportunity to de-risk asset portfolio through geographic and technological options- exposure to multiple markets,
regulatory regimes, technologies and climatic conditions
•Lower social friction concerns by promoting ‘inclusive growth’
•Broadening fuel base complements efforts to decouple India’s economic growth from emissions growth and helps to
achieve energy security

FUND REQUIREMENT
• Consolidated fund requirement estimated by MNRE (Strategic plan for new and renewable energy sector for the
period 2011 -17 is:
- For grid connected renewable energy technologies – USD 2.6 billion
- For off grid renewable energy programs – USD 2.7 billion

Source: Vibrant Gujarat Website

1.3 RENEWABLE ENERGY SECTOR: GUJARAT SCENARIO
 RENEWABLE ENERGY SECTOR GUJARAT SCENARIO

Gujarat was a power deficient state barely a decade ago, but now has a surplus power and a
vibrant energy sector. Gujarat contributes ~ 15 percent to India’s renewable energy basket

• Share of RE in total energy mix in Gujarat is ~18 percent

Total Total
• Gujarat’s share of RE sources in Western Region is 46 Potential potential RE Installed
percent Source
(India), (Gujarat), Capacity MW
MW MW
• Timely tariff revisions have made the sector viable
enabling the state to set up adequate generation capacity
Wind 45,000 12,000 3,250
• Uninterrupted power supply attracts companies to set up
business in Gujarat Solar > 100,000 69,000 852.31

Installed power capacity in Gujarat Break up RE source in Gujarat

0.20%
0.70%
21.30%
Wind
76%
17.80% Solar
Biomass

1.70% 77.80% Small Hydro

2.50%
Thermal Renewable
Nuclear Hydro
Source: Energy & Petrochemicals Department, Government of Gujarat,
Gujarat Energy Development Agency Note: RE stands for Renewable Energy
 RENEWABLE ENERGY SECTOR GUJARAT
SCENARIO: RENEWABLE ENERGY POTENTIAL

Renewable Energy in Gujarat by 2020 aims at increase of RE power to the national grid, from 5 percent
in 2009-10 to 15 percent of the energy mix by 2020 (National Action Plan on Climate Change).

According to TERI, “The overall renewable energy potential in Gujarat is very high, considering if all the identified suitable
lands can be made available. Gujarat's overall integrated renewable energy potential is estimated to be around 748.77 GW”

SOURCE RESOURCE POTENTIAL

5.75
Sun Solar Radiation
kWh/Sq.m./day

Biomass 24 million Tonnes 900 MWe

200 lakh cattle

Biogas 933 MWe
population
67 lakh Ha.
Energy Plantation 15000 MWe
Wasteland
Coastline & Hilly
Wind 12000 MWe
Regions

The state has signed power purchase agreements (PPAs) for solar power generation with 80 private players for 25
years, including Tata Power, US-based SunEdision and Moser Baer Solar. These deals are worth USD 3 billion

Source: Gujarat Power Corporation Limited, TERI, Economic Times, CII, India Today
 RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: RENEWABLE ENERGY MAP

Gujarat has a large amount of waste land along with good solar radiation and wind flow for most of the year.
Biomass, Tidal, Geothermal resources are also available in the state.

Source: Gujarat Energy Development Agency

 RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: WIND POWER

Gujarat has the second largest Wind Power Plant installed capacity in the country which is about 3250 MW .
Annually generating about 5447 million units of electricity.

Gujarat: At a Glance Wind Power Density in Gujarat, W/m2

• Potential: 12000 MW
• Installed Capacity: 3250 MW till date
• Cost: USD 1 million per MW

• The Centre for Wind Energy Technology, an

autonomous R&D institution under MNRE, has
identified and approved 40 sites for wind energy
deployment with annual average wind power
density greater than 200 W/sq. m. at a 50 m
height in Gujarat
• Over a period of last more than 25 years more
than 65 sites have been monitored for the wind
speed and wind power density, and over 50 sites
have been found feasible for harnessing wind
power

Source: TERI, Gujarat Energy Development Agency

 RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: WIND POWER

The State of Gujarat with its longest coast line in the country and inland windy sites has a
potential of 12,000 MW of wind power

Wind Power capacity (in MW)

CAGR: 48% In November 2008 Gujarat won the Best Wind

4000 2,885 3010
3000 1,782 2,095 Power Developer State (Percentage Increase)
2000 1,171 1,485
1000 271 555 Award 2008 for achieving the maximum capacity
0 additions during the two consequent year FY07
and FY 08 alone the coast of Saurashtra

WIND POWER POLICY AND GERC REGULATORY FEATURES

Eligible Unit: Any company/corporate body/association/body of individuals
Sale: Fixed tariff
Tariff: INR 4.15 kWh for 25 years
Open Access / 3rd party sale: Allowed banking
At 66 kV: Normal charges as applicable to open access
Wheeling:
Below 66 kV: Normal charges as applicable to open access + 10% of generated fed to the grid
On a Private Land ; On a Revenue waste land @ 1 hectare per Wind turbine generator on long term
Land:
lease of 20 years to the developer

Source: GEDA, GERC0

 RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: SOLAR POWER

Gujarat has the highest solar generation potential in India –300 days of 5.6 to 6.0 kWh/sq.m/day solar radiation

• In Gujarat there is a potential of generating 10,000 MW from

0.1 percent of available wasteland
• The area with the highest solar potential is the district of
Kachchh which gets 310 sunny days in a year and has the
highest direct solar insolation of 6.4 kWh/sq. m. / day
throughout the year
• The sites do not require sun tracing

Districts with the highest GH/DN Irradiance, kWh/m2/year

GHI DNI
Jamnagar 2,216 2,697
Junagadh 2,212 2,661
Navsari 2,110 2,427
Patan 1,883 2,008

Source: TERI, Gujarat Energy Development Agency

 RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: SOLAR POWER

77 plants totaling to about 891 MW capacity were commissioned in Gujarat up to March 2014

GUJARAT’S LARGEST SOLAR POWER PLANTS

• Gujarat has taken a lead over other states in renewable
Plant District MW
energy initiatives, particularly in solar power generation. It is
the first state in India to achieve RPO target Adani Enterprises Ltd. Kachchh 40
• Gujarat also has Asia’s First Solar Park
• Village Charanka, Ta:Santalpur, Patan 2024 hectares of Sanland Real Estate Pvt. Ltd. Banaskantha 25
wasteland
• For setting up 3000MW Generation & Manufacturing Tata Power Company Ltd. Jamnagar 25
Facilities
• 258 MW Capacity Power Plants have been installed Alex Astral Power Pvt. Ltd. Patan 25
• GPCL is the Project Managers
Roha Dyechem Pvt. Ltd. Patan 25

Sun Edison Energy India Pvt.

SOLAR POWER POLICY : 1ST STATE POLICY IN THE COUNTRY Patan 25
Ltd.

Kiran Energy Solar Power Pvt.

DEVELOPERS Patan 20
PHASE CAPACITY, MW
(NOS.) Ltd.

Phase I allotment 57 406.5 PLG Photovoltaic Patan 20

Phase II allotment 27 562.0 Hiraco Renewable Energy

Porbandar 20
Total 84 968.5 Pvt. Ltd.

Source: TERI, Gujarat Energy Development Agency

 RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: SOLAR POWER - TARIFF

Summary of solar Tariffs, Rs./kWh (projects commissioned Jan 29, 2012 - March 31, 2015)

APR 1, 2013 – APR 1, 2014 –

PERIOD JAN 29, 2012 –MAR 31, 2012
MAR 31, 2014 MAR 31, 2015

Megawatt - scale PV projects availing accelerated depreciation

Levelized tariff for 25 years 9.70 9.02 8.39
First 12 years 10.52 9.64 8.82
Subsequent 13 years 7.00 7.00 7.00
Megawatt - scale PV projects not availing accelerated depreciation
Levelized tariff for 25 years 10.92 10.15 9.44
First 12 years 11.97 10.96 10.03
Subsequent 13 years 7.50 7.50 7.50
Kilowatt - scale PV projects availing accelerated depreciation
Levelized tariff for 25 years 11.64 10.82 10.07
Kilowatt - scale PV projects availing accelerated depreciation
Levelized tariff for 25 years 13.10 12.18 11.33

LEVELIZED TARIFF FOR SOLAR THERMAL PROJECTS

With accelerated depreciation benefit 11.83 per kWh for 25 years
Without accelerated depreciation benefit 13.23 per kWh for 25 years
Source: GERC Order no. 1 of 2012: Determination of tariff for procurement of power by distribution licensees and others from Solar Energy
Projects for the State of Gujarat – Rehearing in order No.1 of 2012 as per the directions of the Hon’ble APTEL vide Judgment dated 17.04.2013 in
Appeal No. 75 of 2012.
 RENEWABLE ENERGY SECTOR GUJARAT
SCENARIO: SOLAR POWER – PROJECT LOCATIONS

Geographical locations of Solar power projects

Source: GETCO
 RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: BIO ENERGY

The total bio-mass potential for Gujarat is about 1,800 MW from crop residue and about 140 MW
from forest residue

Biomass potential in Gujarat

41.20 MW capacity
biomass projects
commissioned in
Amreli, Junagadh and
Vadodara DISTRICTS WITH THE HIGHEST
BIOMASS POTENTIAL, MW
13.23 MW waste-to- CROP
energy power Rajkot 228
Crop Residue
generation projects Jamnagar 203
Forest Residue Bhavnagar 192
Junagadh 168
BIO-ENERGY PROGRAMMES Surendranagar 142
Amreli 137
• Institutional biogas plants 9835 m3/day capacity in various institutions across
FOREST
the state
Junagadh 18
• India’s first and Asia’s biggest power plant based on biomass gasification has The dangs 18
recently been commissioned at village Kothara in the border district of Kutch, Sabarkantha 16
Valsad 15
Gujarat. The project is expected to generate 500 KW electricity from its two Dahod 12
generating units Banaskantha 11

Source: TERI, Gujarat Energy Development Agency

1.4 RENEWABLE ENERGY SECTOR: GUJARAT SCENARIO – SUCCESS STORIES
 RENEWABLE ENERGY SECTOR GUJARAT
SCENARIO: MODEL SOLAR CITY PROJECT - GANDHINAGAR

Government of India declared Gandhinagar as a Model Solar City setting example for Solar Cities
throughout India and other nations

Gandhinagar: The Model Solar City project Ministry of New and Renewable Energy (MNRE) has
launched a program on “Development of Solar Cities” on
January 24, 2011

The program assists Urban Local Governments in:

10 KW capacity wind-solar hybrid system
commissioned at Udyog Bhavan, Gandhinagar
19 solar rooftop systems of 10 KW each
commissioned at government buildings,
Gandhinagar
4,000 KW SPV-based grid-connected power
generating rooftop systems at government
buildings
• Preparation of a master plan for increasing energy
efficiency and renewable energy supply in the city
• Setting-up institutional arrangements for the
implementation of the master plan.
• Awareness generation and capacity building
activities.
The program aims at minimum 10% reduction in
projected demand of conventional energy at the end of
five years, which can be achieved through a combination of
energy efficiency measures and enhancing supply from
renewable energy sources.

240 solar rooftop systems of 1 KW each

commissioned at godowns

6 solar hybrid systems of 5 KW each

commissioned on government buildings

Source: MNRE, GEDA

 RENEWABLE ENERGY SECTOR. GUJARAT SCENARIO:
5 MW GANDHINAGAR SOLAR ROOFTOP PROGRAMME

Government of Gujarat has launched the ambitious “Gandhinagar (Solar) Photovoltaic Rooftop
Programme” to encourage alternative clean energy sources like solar energy as well as social participation
to advance towards energy self-sustainability
OPPORTUNITY FOR ROOFTOP OWNERS

• This Programme provides an opportunity to property owners in Gandhinagar City for

participation by offering their rooftop or terrace for installation of Solar Photovoltaic System
for solar power generation
• The owner of property will be paid a “Green Incentive,” which shall be based on the units
(kWh) of electricity generated by the SPV system installed on their property

ROLE OF PROJECT DEVELOPER

• In this programme the developer is selected through a transparent competitive bidding
process. The selected developer will finance/Install/Own/Operate and maintain PV roof
systems on owners roof tops
• The energy generated from this system will be sold to Distribution Company and Distribution
Company will pay duly approved tariff to developers
• Selected developers will execute the “Green Incentive and Lease Agreement” with individual
property owners, whose rooftop or terrace will be utilized for the SPV system

TO BE IMPLEMENTED IN
• Surat
• Rajkot
• Mehsana
• Bhavnagar
• Vadodara

Source: Gujarat Energy Development Agency, Gujarat Power Corporation Ltd

 RENEWABLE ENERGY SECTOR GUJARAT SCENARIO:
GUJARAT SOLAR PARK – MAKING INDIA A SOLAR HUB

Asia’s largest "Gujarat Solar Park" to mitigate impact of Climate Change and to protect environment for our
future generation, making Solar Sector vibrant and viable not only in India but also across the Globe

Concentrated zone of development for solar power related activities

• Solar thermal/ PV generation based projects, Solar components manufacturing/ assembling
• Research and development, Capacity Building
• Single window facility for solar power project developers for providing common

GUJARAT SOLAR PARK, CHARANKA, PATAN DISTRICT

GEDA FINANCIAL INSTITUTES
Policy
Processed directives Project
applications funding

Tariff Transmission GETCO

GERC/CERC GPCL
determination infrastructure
Nodal Agency for Solar
Government Tariff Water SSNNL
Park development
agencies determination availability

Infrastructure
KEY FEATURES development charge

Area: approx. 2,024 Ha

Capacity Installed: 258 MW Shared with solar developer,
No. of developers: 20 manufacture, R&D setup

Source: Gujarat Energy Development Agency, Gujarat Power Corporation Ltd

 RENEWABLE ENERGY SECTOR GUJARAT SCENARIO:
GUJARAT SOLAR PARK – MAKING INDIA A SOLAR HUB

The only project in Power sector of India that has won this prestigious award

AWARD MERITS:
• Gave a discrete definition of “solar park” in
the Indian context
• World’s largest multi-developer and multi-
beneficiary solar park with targeted 500 MW
Solar Power Projects at single location

SOCIAL COMMITMENT:
• All-weather road connectivity
• Water to carry out cultivation activities
• Drinking water facility to the Charanka village
• Ambulance service
• State-of-the-art training facility to provide
training to the villages in various fields

Source: Gujarat Energy Development Agency, Gujarat Power Corporation Ltd

 RENEWABLE ENERGY SECTORGUJARAT SCENARIO:
INDIA’S FIRST CANAL TOP SOLAR POWER PROJECT

Gujarat has initiated the world’s first canal-based solar power project on Narmada branch canal new
Chandrasan village of Mehsana district

Energy generated from this pilot project will be directly fed into
the local electricity grid and utilized by nearby towns and villages

TECHNICAL DETAIL INNOVATIVE IDEAS

• Projected energy production: 1.6 million • Cover the canal with Solar Panels to
units/year/MW • Save Land @ 5 acre per MW
• Minimize evaporation from canal (9 million liters
• Irradiation: 4.6 – 6.4 kWh/m2
water saving per MW per year)
• Installed capacity: 1 MWp
• Produce eco-friendly power
• Technology: polycrystalline solar modules, 280 Wp • Shadowing effect of panel results in reduced
• Number of modules: 3616 photosynthesis and less algae growth leading to
• Canal length used: 750 m less maintenance cost
• Power evacuation system: 11 KV • Pilot Project is for 1 MW

Source: GSECL
 RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: BIO ENERGY

Various Bio energy projects have been implemented in Gujarat. Few of them are enlisted below:

0.95 MW biogas based power project at Sayaji Industries, Kathwada, 2009-10

• Sayaji Industries, Kathwada is dealing with maize starch products. As a result of maize corn milling,
grinding and processing, about 14000 nm3 biogas is generated. Earlier biogas was being used in the
coal fired boilers. Under the MNRE programme of energy recovery from industrial & commercial
wastes, the biogas based power project was taken up. The project commissioned in April'2009 and
has been running successfully at about 80% PLF since commissioning.

12000 nm3 biogas per day (1 MWeq.) maize starch industry liquid waste based
biomethanation plant by Gujarat Ambuja Exports Ltd., at Dalpur , Dist: S.K., 2009-10

• 12000nm3 /day capacity biomethanation plant is completed & commissioned in December 2009
under MNRE waste-to-energy (WTE) scheme. Plant has been running successfully since its
commissioning date. Produced biogas gas is used in 100% biogas engines in CPP

0.833 MWeq.(10000 nm3/day) capacity maize starch industry liquid waste based
biomethanation plant at Sayaji Industries Ltd., Kathwada, 2010-11

• Sayaji Industries, Kathwada increased its maize grinding capacity from 325 MT/day to 550 MT/day, the
effluent also increased with higher COD value of about 16000 to 20000 KGs COD. One 10000 nm3/day
capacity biomethanation plant has been installed & commissioned December 2011.The same is
working with more than 80% efficiency. The produced biogas is used in its CPP

Source: Gujarat Energy Development Agency

 RENEWABLE ENERGY SECTOR
GUJARAT SCENARIO: LARGE RE PLAYERS IN GUJARAT

Solar power
developers

Solar PV
manufac-turers . Sonki Solar India

Wind power
developers

Wind equipment
manufac-turers
1.5 GUJARAT SCENARIO: VISION 2020 AND INVESTMENT OPPORTUNITIES
 RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: 2020

NAPCC goal: 1 percent annual increase of RE power to the national grid, from 5 percent in 2009-10 to
15 percent of the energy mix by 2020

Installed 12th five year Plan period Capacity

Source /
capacity (MW) additions 12th
Technology as on May 2012 FY13 FY14 FY15 FY16 FY17 Plan

Wind 3,352 326 377 456 498 508 2,165

SHP 7 2 3 4 3 3 15
BIO 41.2 35 45 55 60 44 239
Solar 891 209 331 331 441 560 1,872
WTE 0 2 2 0 2 6
Total 4,291.2 572 758 848 1,002 1,117 4,297

Expected capacity addition in RE sector

by 2017 will be 4,297 MW with highest
contribution from wind – 50 percent and
solar – 44 percent
Total installed capacity from RE sources
by 2017 – 7,863 MW

Source: Energy & Petrochemicals Department, Government of Gujarat0

 RENEWABLE ENERGY SECTOR GUJARAT SCENARIO: 2020

Fund requirement Development of distributed

Non- Conventional power projects gas based power combined
under private sector with non conventional
sources

FUND REQUIRED Tidal and geothermal Development of wind-

PROJECT
(USD BILLION) projects first at a pilot solar hybrid
scale, and then at a installations and
commercial scale biomass projects
Wind 2.65
Development of large
SHP 0.02 scale solar parks and
canal-top solar projects

Bio Mass 0.24

Offshore wind Development of solar
Solar 3.82 projects development manufacturing capacities

WTE 0.01 Development of projects

under solar rooftop
programme (Bhavnagar,
Total 6.74 Surat, Rajkot, Mehsana)

Source: Energy & Petrochemicals Department, Government of Gujarat

 RENEWABLE ENERGY SECTOR GUJARAT SCENARIO:
INVESTMENT OPPORTUNITIES

The state endeavors to become a leader in terms of capacity and introduction of new technologies in
other renewable energy sources, like wind-solar hybrid, WTE, OTEC, tidal energy, etc.

• The total potential for wind solar hybrid installations is about 74,000 MW with the largest potential in
Rajkot and Kachchh
• Gujarat has a 1,600 km coast line and good wind velocity offshore. The total offshore wind potential is
about 5,000 MW
• Preliminary activities have been initiated to explore Off-shore wind mill projects installation in
consultation with Central Government

DISTRICTS WITH THE HIGHEST HYBRID POTENTIAL, MW

WIND SOLAR HYBRID INSTALLATION, MW
Rajkot 23,182
Kachchh 16,151
Jamnagar 8,707
Surendranagar 6,625
Amreli 3,585
Bhavnagar 2,514
Sabarkantha 2,303
Banaskantha 2,044
Junagadh 2,038

Source: TERI, Gujarat Energy Development Agency, Gujarat Power Corporation Ltd
 Renewable Energy Sector Gujarat Scenario: Investment Opportunities

Geothermal power pilot projects are being planned in the state. Gujarat is set to tap geothermal electricity
through resources which are available in Cambay between Narmada and Tapi river

GUJARAT GEOTHERMAL POTENTIAL IS CONCENTRATED IN CAMBAY TIDAL POTENTIAL IN GUJARAT, MW

Tidal potential

TIDAL ENERGY POTENTIAL,

POTENTIAL SITE
MW
Gulf of Kachchh 1200
Gulf of Khambat 7000
Total 8200

Source: TERI, Gujarat Energy Development Agency

1.6 GOVERNMENT INITIATIVES AND INTERVENTIONS
 Renewable Energy Sector Government Initiatives &
Interventions

A robust regulatory framework has been put in place to realize India’s wind, hydro, solar and biomass potential

Electricity Act 2003

• Mandated State Electricity Regulatory Commissions (SERCs) to

• Promote generation of electricity from renewable sources of energy by providing suitable measures for connectivity with
the grid and sale of electricity to any person
• Fix certain minimum percentages for purchase of renewable power

National Electricity Policy 2005

• Further provided for progressive increase in generation of electricity from renewable sources and supported purchases by
distribution companies through competitive bidding process

Tariff Policy 2006

• Provided for fixation by SERCs of a minimum percentage of Renewable Purchase Obligation (RPO) from RE sources taking
into account availability of such resources in the region and its impact on retail tariffs and procurement by distribution
companies at preferential tariffs determined by the SERCs

National Action Plan on Climate Change 2008

• Outlined existing and future policies and programs addressing climate mitigation and adaptation
• NAPCC has advised that starting 2009-10, RPOs be set at 5% of total grids purchase, and be increased by 1% each year for 10
years.

Source: Ministry of Power, Government of India; Ministry of New and Renewable Energy, Government of India
 Renewable Energy Sector
Government Initiatives & Interventions- National Solar Mission

Objective of the National Solar Mission is to establish India as a global leader in Solar Energy, by creating the policy conditions
for its diffusion across the country as quickly as possible.

• Accelerate generation capacity addition to drive down costs A. 20 GW Grid based solar power projects by 2022
and achieve grid parity by 2022 • Large power plants (5 MW solar PV; 5 to 100 MW CSP in
• National Tariff Policy amended (January 2011) for mandatory NSM 1 and 5MW to 50MW solar PV in NSM 2)
Solar RPOs for all power utilities
100 MW rooftop and small projects
• Connected below 33 kV. Target (10 MW of up to 100kW;
and 90 MW of 0.1 to 2 MW.
Phase 1: 2010-13 Phase 2: 2013-17 Phase 3: 2017-22

B. 2000 MW off-Grid project by 2022

Policy Market based • Off grid solar and decentralized solar applications.
Grid
framework to on FIT and • Capital and interest subsidy; Refinance by IREDA et al
competitive
attract and mandatory • Other channels to supply & maintain Products
solar power
scale-up solar RPO
C. Support projects
Grid: 1,100 Grid: 4-10,000 Grid: 20,000 • Centre of excellence and incubation
MW MW MW
• Demonstration and pilot projects
Off-grid: 200 Off-grid: 1000 Off-grid: 2000
MW MW MW • 100MW parabolic trough based
• 100-150MW solar hybrid plant

Source: Ministry of New and Renewable Energy, Government of India


Policy Instrument
Feed in Tariffs/ Preferential Tariffs
Accelerated Depreciation (AD)
Generation Based Incentives (GBI)
Renewable Purchase Obligation
(RPO)
Clean Energy Cess
Renewable Energy Certificates
(REC’s)
Carbon Trading
Tax Incentives - Exemptions on
Capital Investments and
Generation
Source: State RE Policies
Renewable Energy Sector
Government Initiatives & Interventions- Support mechanism for RE in India
Indian Experience Incentives for Developers
• Financial as well as economic costs and
• Being used for all active RE technologies. introduced by most states benefits of RE are not yet factored in FIT
except J&K, Bihar, Jharkhand, Odisha and the North Eastern states. • Technology upgradation
• Preferred by developers because it enhances project bankability could lead to better returns as it is not
considered in FIT
• Acknowledged as the key instrument for success of wind industry in
• The sector has attained scale &
India
commercial viability on its own.
• Most wind installations in India have been developed under AD.
• Recently introduced to shift investment focus from capacity addition • Presents avenues for additional
to electricity generation – move from capital subsidies (AD) to guaranteed revenues for project
generation based incentive. developers
• RPOs are mandated by the Electricity Act 2003 and National Tariff
• Readymade market for renewable
Policy
power sources
• RPOs adopted by 23 SERCs
• The government plans to develop these funds for development of
renewable energy
• MNRE and CERC have developed a REC regime which has kicked off
• Helps renewable power developers to
recently
trade REC's and realise the value of
• Serves as a mechanism to fulfill the RPO obligations thereby
power
reducing penalties
• India has largest number of registered and pipeline CDM projects in
the world. • Additional cushion for developers to
• Helped to push the RE industry by making projects more financially increase their project returns and RoE
attractive
• Tax exemption instruments such as exemptions or reductions on • Tax Incentives help improving RoE of
excise and customs duty have been introduced developer
• Examples of state with policies for RE include Karnataka, Punjab, • The number of clearances required for
Madhya Pradesh, Gujarat, Himachal Pradesh, Uttarakhand etc renewable projects has come down
 Renewable Energy Sector
Government Initiatives & Interventions

Renewable Energy Certificates

• One REC to be issued for every MWh of electricity fed to the grid and metered at the bus-bar of generator
• REC issued is valid for a period of 1 year
Overview • Not related to Carbon Credits, both mechanisms operate independent of each other.
• Pricing of REC component:
• Sold in the exchange within a range of floor price and ceiling price as fixed by CERC from time to time

• A renewable generating entity that has:

• Not entered into any PPA at a preferential tariff
Eligibility • Sells its power to a local distribution licensee at a cost at or below the Average Power Purchase Cost (excl. RE
power cost)
• Sells power either to the third party or through Power Exchanges

Renewable Purchase Obligations

• In 2007, the Government released draft versions of a new policy which seeks to increase the target to 20 percent by 2020
• Several State Regulators (“SERC”) have translated this national target into Renewable Purchase Obligations (RPO)
• RPOs mandate the minimum quantum of electricity which distribution utilities in the States have to source from renewable
sources (failing which, a penalty may be imposed on them)
• On a pan-Indian basis, the total RPO commitment by the 12 States that have implemented it constitutes ~5.33 percent of
the total power consumption in 2007-08
• The RPO system passes on the onus of increasing renewable energy consumption to the State DISCOMS – effectively the cost
of acquiring this renewable electricity is passed onto the consumer through higher power tariffs

Source: Ministry of New and Renewable Energy, Government of India

 FOR ADDITIONAL INFORMATION CONNECT US @

Energy and Petrochemicals Deapartment http://www.guj-epd.gov.in

Gujarat Energy Development Agency http://www.geda.gujarat.gov.in

Gujarat Power Corporation Ltd http://www.gpclindia.com

Gujarat Energy Research & Management Institute http://www.germi.org

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