Solar Energy

India Solar Plans

National Solar Mission (NSM) one of the eight key National Missions which comprise
Indias National Action Plan on Climate Change
To achieve volume production at a scale which leads to cost reduction and rapid diffusion
and deployment of solar technologies across the country
NSM plans to achieve 20 GW of solar power installation by 2022
ROAD MAP

Application Segment

Target for Phase1 (2010-13)

Target for Phase-2

(2013-17)

Target for Phase-3

(2017-22)

Grid solar power

1000 MW

3000 MW

16000 MW

Off grid solar

application (including
rural solar lights)

200 MW

1000 MW

2000 MW

Solar collectors

7 million Sqm

15 million sqm

20 million Sqm

1st phase will also include additional 100 MW of roof top projects

Country is geographically blessed with abundant solar

radiation which compliments demand drivers of solar energy

In most parts of India, clear sunny

weather is experienced 250 to 300
days a year.

Most parts receive irradiance of

5-7 Kilowatt hour (kWh) /
Sqm/day

Average power generation potential

of 20 MW/ Sq Kilometer (KM)

Potential Regions:

Rajasthan

Northern Gujarat

Leh and Ladakh (J &K)

Andhra Pradesh

Maharashtra

Madhya Pradesh

Economics

Attractive feed-in tariff for phase-I

Solar Photovoltaic

Solar Thermal

Capex

169 million INR

( 2.91 million)*

153 million INR ( 2.64

million)

Capacity Utilization Factor

(CUF)

19%

23%

Tariff

INR 17.91 ( 0.31)

INR 15.41 ( 0.27)

IRR

13-15%

12-14%

Project life 25 years

PPA period of 25 years

* Assumed 1 Euro = 58 INR

Advantages- National Solar

Mission

The Mission envisages an investment of INR 916,840 million ( 15807.59 ) over the next 30 years.
This will include an interest subsidy to the tune of INR 73,000 million ( 1258.62)

Proposes to add 20,000 MW of power by 2020 and 100,000 MW by 2030.

10-year tax holiday for solar plants, both photovoltaic (PV) and thermal, set up by 2020

Exemption from customs and excise duties on specific capital equipment, critical materials and
project imports.

Special Incentive Package (SIP), for the setting up of an integrated solar manufacturing plants.

International Developers
Entering India

Company

Country

Activity In India

eSolar

USA

Acme India partnered with eSolar as a master licensee of

eSolar technology within India.

SunBorne Energy

USA

Developing Solar Thermal Project in India ( Gujarat) of 50

MW

AES Solar Energy

USA

Developing Solar PV Project in India ( Gujarat) of 15 MW

Astonfield Solar

USA

Developing Solar PV Project in India (Gujarat) of 25 MW

TATA BP Solar

USA

Tata BP Solar is a Joint Venture between Tata Power

Company, a pioneer in the power sector and BP Solar one
of the largest Solar Companies in the world.

Fidelis Energy Inc

USA

Fidelis Energy has entered into a US$25 million agreement

with Esar Solar Power Pvt. Ltd. (ESP), to develop and
construct solar energy projects located in Jaislmer (
Rajasthan)

Abengoa

Spain

Developing a solar thermal plant in agreement with

Maharishi Solar Technology India in Gujarat (40 MW)

MAN Solar
Millennium

Germany

MAN Solar Millennium JV with Suryachakra Power

Private Limited for transfer of concentrated Solar Thermal
Technology to Solar Thermal project developers in Indian

Wind Energy

Wind Energy - India

Wind resource segregated into four different
zones based on WPD (Wind Power Density)
Cate
gory

WPD
(watt /
m2)

PLF
/
CUF

Remarks

Zone1

200250

20%

Most wind farm sites

now fall under this
category

Zone2

250300

23%

Some places in
Maharashtra,
Karnataka, Andhra
Pradesh & Tamilnadu

Zone3

300400

27%

Some places in
Karnataka & Tamilnadu

Zone4

> 400

30%

Almost nil (sites

already utilized)

Potential and Installed Capacity

5th largest wind power producer in world

Installations of more than 10, 386 MW, expected to reach 12,000 MW by end of 2010

Wind energy - 70% of total Renewable energy in the country, growth @ 22% CAGR

India a net exporter of wind turbines ( 490 million exports in 2008-09)

Gross Potential (MW)

Total Installed Capacity (MW)

12000
10000
8000
6000
4000
2000

Source: CWET, INWEA

Others

Tamil Nadu

Rajasthan

Maharashtra

Madhya
Pradesh

Kerala

Karnataka

Gujarat

Andhra
Pradesh

Economics

Tariff - varies zone wise (INR./kWh)

Zone 1

Zone 2

Zone 3

Zone 4

4.29 ( 0.07 /
kWh)

3.73 ( 0.06 / kWh)

3.17 ( 0.05 / kWh)

2.86 ( 0.05 / kWh)

States have their own tariff determination policy

Example Maharashtra state tariff, INR 3.5 ( 0.06) with escalation of INR 0.15 every year

Tariff period 13 years, depending on state regulations it ranges from 10-20 years)

Capex @ INR 45- 57 Million / MW ( 0.78- 0.98 million/ MW)

Project useful life 25 years

IRR

Without CDM benefits 10-14%

With CDM varies 3-4%

Advantages

Concession on import duty on specified wind turbine parts; Excise duty relief on certain
components

80% accelerated depreciation

Generation-Based incentives of INR 0.50/kWh ( 0.009 ) to a maximum of INR 6.2

million/ MW ( 0.11 million/ MW)

Up to a maximum period of 5 years, the investor would have an option to either

choose the GBI or the existing accelerated depreciation benefits

Income Tax holiday of 10 years

Wheeling, banking and third party sales, buy-back facility by states

Clearance of leasing forest land for up to a period of 30 years

International Developers
Entering India
Company

Country

Activity in India

Vestas Wind
Systems

Denmark

It has installed over 4,050 turbines in the country, with an

installed capacity of over 2,190 MW.

Enercon India
(subsidiary of
Enercon
Gmbh)

Germany

Has Presence in major high potential states viz. Gujarat,

Karnataka, Madhya Pradesh, Maharashtra, Rajasthan,
Tamilnadu, and Andhra Pradesh.

Acciona

Spain

Company has established two parks in the Anabaru (16.5 MW)

and
Arasinagundi (13.2 MW) located in the State of Karnataka.

Gamesa Wind
Turbines Pvt
Ltd

Spain

Has established a new wind-turbine manufacturing plant in

Chennai with a capacity of 200 MW. It also has plans to set
up
farms in Coimbatore and Theni.

Siemens India

Germany

GE Energy

USA

The company plans to start wind turbine manufacturing by

2012.

Has established a new wind-turbine manufacturing plant in

Chennai
which has a capacity of making 300 wind turbines, or 450 MW,

Small Hydro Energy

Overview Small Hydro Energy

Small Hydro potential, assessed ~ 15 GW

4415 new sites for small hydro with an aggregate capacity of over 10683.77 MW are available

Potential (MW)

Installed Capacity (MW)

4000
3500
3000
2500
2000
1500
1000
500

Andhra Pradesh
Assam
Bihar
Chhattisgarh
Gujarat
Haryana
HP
J&K
Jharkhand
Karnataka
Kerala
MP
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Orissa
Punjab
Sikkim
TN
Tripura
Rajasthan
UP
Uttarakhand
WB
Others

Economics
Category

Himachal Pradesh,
Uttarakhand & North east
states

Other States

Capex / MW (5-25 MW)

INR 63 million / MW ( 1.09

million/ MW)

INR 50 million / MW ( 0.86

million / MW)

Tariff

INR 3.35 ( 0.06)

INR 4.00 ( 0.07)

PLF

60%

35%

IRR without CDM benefits

11-12%

13-15%

IRR with CDM benefits varies between 4-5%

Advantages

Central Government

Customs Duty concessions

10 year Income tax exemptions

Subsidy for new SHP projects (both public & private)

Subsidy on renovation and modernization of public sector projects

Schemes involving capital up to Rs 500 million ( 8.62 million) need no environmental

clearance from Ministry of Environment and Forests (MoEF)

Term loans through Indian Rural Energy Development Agency (IREDA)

State Government

Sales tax and electricity tax exemption - Andhra Pradesh, Himachal Pradesh,
Karnataka, Maharashtra, Chhattisgarh, Punjab etc.,

Biomass Energy

Overview Biomass Energy

Studies sponsored by the Ministry has estimated surplus biomass availability of

about 120 150 million metric tones per annum covering agricultural and forestry
residues corresponding to a potential of about 16,000 MW.

Economics
Two part tariff for Biomass based Power generation:
Tariff Range

INR 3.16- 4.40 ( 0.05- 0.08) per unit

depending upon site, capital cost, debt
equity ratio, and interest rate etc.

Reported
PLF
Range

Capex/ MW

IRR without
CDM

80-90%

INR 400-570 million

( 6.90- 9.83
million)

14-16%

IRR varies 4-6% with CDM revenue

States have their own tariff determination policy

Project useful life 20 years
Tariff period 13 years, depending on state regulations

Advantages

80 % depreciation in the first year can be claimed for the following power generation
equipment

Fluidized Bed Boilers, High efficiency boilers

Back pressure, pass-out, controlled extraction, extraction and condensing turbine for Power
generation with boilers
Waste heat recovery equipment

10 year tax holiday

Duty leviable for power projects of less than 50 MW capacity (under Project Import
Category) is 20 %.

Exempted for renewable energy devices, including raw materials, components and
assemblies

Capital Subsidy

Special Category States: (NE Region, Sikkim, J&K, HP & Uttaranchal) INR 2.5 million X (C
MW)^0.646
Other States: INR 2 million X (C MW)^0.646

International Developers
Entering India
Company

Country

Activity in India

Clenergen
Corporation

USA

Has established wholly-owned subsidiary as Clenergen

Corporation India Pvt. Limited. Currently, Clenergen India
have executed a long term, fifteen year power purchase
agreement with Power Trading Corporation of India
Limited
(PTC) for our sale and supply to PTC of 71 megawatts
per
hour (MW/h) of energy.

USA

Signed a strategic partnership with Areva of France,

in Aug 2009 to co-develop the company's initial 100-mw
biomass power plants across India at an estimated cost
of
INR 6300 million ( 108.62 million)

Astonfield
Renewable
Resources Pvt. Ltd.