GRID CONNECTED R.E. POTENTIAL IN INDIA
renewable energy IN INDIA – THE EVOLVING FRAMEWORK –
Sr. No. Source / Systems
MNRE ESTIMATE
Estimated Potential (MW) 16,881 45,195 15,000 5,000 2,700 84,776
(Source: MNRE Annual Report, 2007-08)
by –
01. Bio-Power (Agro residues & plantations) wind power Small Hydro Power (upto 25 MW) Waste to Energy (Urban & Industrial) Solar Power Total (in MW)
G M PILLAI DIRECTOR GENERAL WORLD INSTITUTE OF SUSTAINABLE ENERGY, PUNE
02. 03. 04.
at
The Green Power – 2009 Conference 18 July, 2009, Chennai
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GRID CONNECTED R.E. POTENTIAL IN INDIA
ESTIMATE BY WISE
Source Wind Small Hydro Bagasse Biomass Large Hydro (existing & future) Large Hydro in Bhutan Waste to Energy *Solar CSP based Power Generation Solar PV / CPV based power generation Geothermal Total Capacity (MW) 100000 15000 5000 16881 100000 16000 5000 200000 200000 10000 6,62,881 Assumed PLF 25 45 60 60 60 60 60 35 20 80 Annual Energy Generation in billion kWh 219.0 46.0 26.3 88.72 525.6 84.1 26.28 613.2 350.4 70.1 2049.70
CUMULATIVE ACHIEVEMENT AS ON 31.01.2009
The Term Paper on Non Conventional energy resources in India
Non-Conventional Energy Resources in India Contents 1. Introduction………………………………………………………… 02 2. Wind Energy………………………………………………………. 03 3. ...
1. GRID CONNECTED R.E. POWER
Sr. No. 1. 2. 3. 4. 5. 6. Sources / Systems Biomass Power (Agro residues) Wind Power Small Hydro Power (up to 25 MW) Cogeneration-bagasse Waste to Energy Solar Power Total 1,476.74 MW Achievement during 2008-09 (upto 31.01.2009) 77.50 MW 998.85 MW 163.83 MW 232.90 MW 3.66 MW Cumulative Achievement 683.30 MW 9755.85 MW 2344.67 MW 1033.73 MW 58.91 MW 2.12 MW 13,878.58 MW
(Source: MNRE)
Current achievement in terms of installed capacity is 2.09% of the potential estimated by WISE.
Note: Resource potential of other RE sources including offshore, wind, wave, tidal, biogas-based power not considered *India has a total desert area of 208110 sq.km.
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CUMULATIVE ACHIEVEMENT AS ON 31.01.2009
GLOBAL R.E. STATUS: SELECTED INDICATORS
2. OFF-GRID / DISTRIBUTED POWER
Sr. No. 1. 2. 3. 4. 5. 6. Sources / Systems Biomass Power / Co-gen.(non-bagasse) Biomass Gasifier Waste-to-Energy Solar PV Power Plants and Street Lights Aero-Generators/Hybrid Systems Total Remote Village Electrification Achievement during 2008-09 (upto 31.01.2009) 60.92 MW 8.98 MWeq. 4.36 MWeq. 0.07 MWp 0.09MW 74.42 MWeq 300/NIL Villages/Hamlets Cumulative Achievement 150.92 MW 160.31 MWeq 31.06 MWeq 3.00 MWp 0.89 MW 346.18 MWeq 4254 villages + 1156 hamlets
(Source: MNRE)
SELECTED INDICATORS Investment in new renewable capacity (annual) Renewables power capacity (existing, excl. large hydro) Renewables power capacity (existing, incl. large hydro) Wind power capacity (existing) Grid-connected solar PV capacity (existing) Solar PV production (annual) Solar hot water capacity (existing) Ethanol production (annual) Biodiesel production (annual) Countries with policy targets States/provinces/countries with feed-in policies States/provinces/countries with RPS policies States/provinces/countries with biofuels mandates
2006 ► 63 ► 207 ► 1,020 ► 74 ► 5.1 ► 2.5 ► 105 ► 39 ► 6►
2007 ► 104 ► 240 ► 1,070 ► 94 ► 7.5 ► 3.7 ► 126 ► 50 ► 9► 66 ► 49 ► 44 ► 53 ►
2008 120 billion USD 280 GW 1,140 GW 121 GW 13 GW 6.9 GW 145 GWth 67 billion litres 12 billion litres 73 64 49 55
The Essay on Renewable Energy Source Solar Water Passive
RENEWABLE ENERGY SOURCE SOLAR POWER Solar energy is a renewable resource that is environmentally friendly. Unlike fossil fuels solar energy is available just about everywhere on earth. And this source is always free, immune to rising energy prices. Solar energy can be used in many ways to provide heat, lighting, mechanical power and electricity. The two types of solar energy are Passive and Active ...
(Source: Renewables Global Status Report, 2009)
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THE IMPERATIVES FOR A TRANSITION TO R.E.
FOSSIL FUELS: THE 2030 SPIKE
A. FOSSIL FUEL DEPLETION What is important is not depletion per se but peaking of production. After peaking, the reserves will deplete in reverse mode, as much as or more than production was growing before peaking. Between 2010 and 2025 most fossil fuels will peak and then decline. B.CLIMATE CHANGE IMPERATIVE C. PRICE VOLATILITY OF FOSSIL FUELS D. NEED FOR ENERGY AUTONOMY Policy
KEY DETERMINANTS OF INVESTMENT DECISION / MARKET DEVELOPMENT
Key Instruments Regulatory RPS Feed-in Tafiff Wheeling & Banking R E Law Allocation of Sites Statutory Clearances Fiscal Incentives (Accelerated Depreciation / Generation Based Incentives – GBI) State Investment Outlook Infrastructure Evacuation Infrastructure Site Access / Connectivity Resource CUF / Feedstock Availability
Wind
SHP
Biomass
Solar
High Impact Medium Impact NA NA Low Impact
Coal Plateau at 4000
Natural Gas -5% 2025 -3% 2035-2070
Oil -5% 2010-2020 -3% 2020-2040 -2% 2050-2050 -1% 2050-2100
Source: Oil, Gas, Coal-Nuclear Scenario, LBST (Ludwig Bolkow System Technic, Denmark) 2005
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CURRENT POLICY / REGULATORY SUPPORT FOR R.E. IN INDIA
Type of Support Capital Subsidy Soft Loan Accelerated Depreciation Feed-in Tariff (12-15 states) RPS (17 states) Tax Holiday GBI Grants for Resource Estimation study Relaxation/Exemption in Customs/Excise duty √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ 5. Rajasthan ( 7 March 2007) √ √ √ Wind Solar SHP √ √ 1. √ √ √ √ √ 2. √ √ √ 3. 4. Maharashtra (16 Aug 2006) Kerala (24 June 2006) Biomass √ Co-Generation √ Sr. No.
STATUS OF RPS IN INDIAN STATES
State / Regulation date
RE technology / utilities under obligation
% RPS Specification 2006-07 3% 2007-08 4% 2008-09 5% 2009-10 6% 2010-11 2011-12
SHP – 2% Wind – 2% Others – 1% 5% 10% WBSEB CESC DPL DPSC Wind Biomass 2% 0.50% 4% 0.88% 5% 10% 5% 10% 4.8% 4% 2.5% 2% 5% 1.25% 13% 6.8% 6% 4% 4% 6% 1.45% 14% 8.3% 8% 7.0% 7% 6.75% 1.75% 10% 10% 10% 10% 7.5% 2.00%
Tamil Nadu (20 March 2009) West Bengal (25 March 2008)
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The Term Paper on Contracting State Tax Royalty Dcs
Royalty in Double Tax Convention Models Between Developing and Industrialised Countries Indra Muliawan Introduction Commerce and Technology are major forces that influence the process of global transformation. In order to keep up with the pace of such transformation, a Developing Country ("DC"), must consequently be aware of new technologies emerging from, most of the times and very likely from, ...
STATUS OF RPS IN INDIAN STATES (Contd…)
Sr. No. 2010-11 7.5% 2011-12 11. 12. 13. 14. BESCOM, MESCOM, CESE HESCOM, GESCOM, HUKERI Soc 10. Madhya Pradesh (June 2008) Wind Biomass Cogeneration and others 10% 7% 10% 7% 5% 2% 3% 1o% 7% 6% 2% 2% 6% 2% 2% 6% 2% 2%
STATUS OF RPS IN INDIAN STATES (Contd…)
State and Regulation date Haryana (31 January 2007) Punjab (13 Dec 2007) Uttarakhand (30 April 2008) Chhattisgarh (14 July 2008) Biomass Small Hydro Others 15. 16. Himachal Pradesh (18 June 2007) Orissa 23 April 2005 Wind SHP 3% 20% 3% Eligible RE sources / Entities % RPS Specification 2006-07 2% 2007-08 2% 1% 5% 2008-09 3% 1% 5% 5% 3% 2% 20% 3% 2009-10 10% 2% 8% 5% 3% 2% 20% 2010-11 10% 3% 9% 5% 3% 2% 2011-12 10% 4% 10%
Sr. No. 6. 7. 8. 9.
State and Regulation date Uttar Pradesh (23 March 2006) Andhra Pradesh (27 Sept 2005) Gujarat (draft, May 2009) Karnataka (23 Jan 2008)
RE technology / utilities under obligation
% RPS Specification 2006-07 7.5% 5% 2007-08 7.5% 5% 2008-09 7.5% 5% 8% 9% 10% 2009-10 7.5%
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FEED-IN TARIFF AWARDED BY SERCS
(in 8 Prominent States)
Highlights of Draft CERC R.E. Tariff Fixation Norms
(May 2009)
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8.
State Maharashtra Andhra Pradesh Madhya Pradesh Rajasthan Gujarat Tamil Nadu Kerala Karnataka
Wind √ √ √ √ √ √ √ √
SHP √ √
Biomass √ √ √ √ √
Cogeneration √ √
MSW √
Solar √ √ √
Control period / Review period: 3 years. Levelized tariff calculated over useful life of the plant recommended for first 13 years. After 13 years power procurement would be on the basis of competitive bidding. Project specific tariff for solar, MSW power projects, generic single or two-part tariff for remaining R.E. technologies. Technology-specific benchmark operating and financial parameters. Indexation formula for automatic revision of capital cost; depending on changes in wholesale price index of prominent components used in particular R.E. technology.
√ √ √ √
√ √ √ √
√ √
√ √
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DRAFT CERC GUIDELINES ON BENCHMARK OPERATING AND FINANCIAL PARAMETERS FOR R.E. TARIFF (May 2009)
INTRODUCTION OF REC MECHANISM IN INDIA
Parameters Capital cost
The Essay on Ideal Home House Year Energy
Architecture In 1975 Focused Mainly On Environmentally Architecture In 1975 Focused Mainly On Environmentally Friendly Homes Home! Home! Sweet, sweet home! There's no place like home, the quote written by Payne shows how dear a home is to a person. Whereas a house is referred to as a place of dwelling, a home is more than that. A home is what a person makes of it; a home is given life by the ...
Wind Rs 5.15 crore / MW (2009-10) – linked to indexation formula for subsequent years 22 % – 30 % (depending upon mean wind power density at site) SBI PLR plus 1% 12 years 6% (for first 12 years); remaining will be spread over the useful life of plant
Biomass Rs 4.50 crore/ MW – linked to indexation formula for subsequent years 60 % (during stabilization) afterwards 80 % SBI PLR plus 1% 12 years 6% (for first 12 years); remaining will be spread over the useful life of plant
Co-gen Rs 4.45 crore / MW
SHP Rs 5 crore / MW
NAPCC recommends national level target for R.E. purchase to be set at 5% of total grid purchase for FY 2009 – 2010, to be increased by 1% each year for 10 years.
PLF
60%
45% (Himachal, Uttarakhand, N-E States); others 30% SBI PLR plus 1% 12 years 6% (for first 12 years); remaining will be spread over the useful life of plant Pre-tax 17% (for first 10 years): Pre-tax 23% for subsequent years
SERCs may set higher target than this minimum percentage at any point in time. Appropriate authorities may issue certificates that procure renewable power in excess of the national standard. Such certificates may be tradable, to enable utilities falling short to meet their RPS. MNRE has taken lead in this regard – preparation of REC operational framework is in advanced stage. Forum of Regulators decided to constitute a Task Force for examination of REC implementation issues in India.
Interest rate Loan tenure Depreciation
SBI PLR plus 1% 12 years 6% (for first 12 years); remaining will be spread over the useful life of plant Pre-tax 17% (for first 10 years): Pre-tax 23% for subsequent years
ROE
Pre-tax 17% (for first 10 years): Pre-tax 23% for subsequent years
Pre-tax 17% (for first 10 years): Pre-tax 23% for subsequent years
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GENERATION BASED INCENTIVES
A. GBI HISTORY: Production subsidies also known as Generation Based Incentives (GBI) – Introduced in 2008. Back up to the feed-in tariffs for grid-connected solar and wind power. An attempt to change nature of R.E. industry in India, especially wind o o Wind Investors – primarily Indian corporations or individuals who could offset their income tax liabilities by investing in wind using AD Foreign firms or IPPs did not find this market attractive on account of limited or nil income tax liabillity
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The energy that is used today comes from fossil fuels, which is a nonrenewable limited resource that will eventually be used up. Alternative energy sources such as solar, hydroelectric, geothermal and wind energies can be used, to conserve the planets limited natural resources. Alternative energy is the use of another energy without the burning of fossil fuels and break up on atoms. Solar energy ...
NATIONAL R.E. LAW INITIATIVE
WISE prepared the model draft R.E. Law for India which was released for the first time in New Delhi in August 2005, in a seminar inaugurated by Mr Vilas Muttemwar, then Minister for New and Renewable Energy. Three-year advocacy campaign was conducted with full stakeholder participation through the media, seminars, and direct contacts. In November 2007, the Working Group on R.E. Law approached 300 Members of Parliament (both Lok Sabha and Rajya Sabha) seeking their support. Many prominent MPs promised to take up the matter. In August 2007, the Model R.E. Law draft was formally submitted to MNRE. In June 2008, the Prime Minister of India chaired a meeting of the Energy Coordination Committee (ECC) wherein he authorised MNRE to come forward with a draft legislation for the promotion and accelerated growth of renewable energy in India. Soon after the ECC meet, MNRE constituted an R.E. Law Technical Committee who would be responsible for carrying forward the process of finalising the draft R.E. Law. It is one year after the cabinet decision; high time the draft is finalised for Parliamentary approval.
B. CURRENT STATUS: Rs. 0.50/kWh GBI approved by Expenditure Finance Committee for 4000 MW wind by 2012. Total duration of GBI to be 10 years, over and above tariff. Cabinet note ready for cabinet’s approval. 80% accelerated depreciation to be removed. C. COMMENT: Removing depreciation a regressive step; depreciation and GBI to be available as options.
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THE NATIONAL SOLAR MISSION
Conclusion
Most Urgent Need: Re-write Integrated Energy Policy. Some other actions needed: o Long-term PPAs. o Creation of Clean Energy Funds. o Priority sector lending status for R.E. o Disincentivizing dependence on imports of fossil fuels. o Externality and subsidy accounting and correct pricing to reflect true costs of fossil energy, power and water use. o Reduction in subsidies for conventional energy, transfer to R.E. / E.E. o Tariff hikes to reflect true social and environmental costs. Business-as-usual using old technologies in decline would lead to multiple crises in the energy sector. Proactive action needed to facilitate transition to low-carbon, renewable energy economy.
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On 30th June, 2008 the Prime Minister’s Council on Climate Change, approved the ‘National Action Plan on Climate Change’ (NAPCC).
It was decided to constitute Eight National Missions. The most important mission is ‘The National Solar Mission’. One year after the cabinet decision, there is no Solar Mission in sight. It is learnt that the consultancy firm McKinsey has prepared a background document, but no further action. THE WORLD IS MOVING FAST ON SOLAR ENERGY DEVELOPMENT. WE NEED TO CATCH UP.
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