RENEWABLE ENERGY SECTOR

Transcription

1 RENEWABLE ENERGY SECTOR

2 CONTENTS Renewable Energy : Indian scenario Renewable Energy: Tamil Nadu Scenario Investment Opportunities Government Support

3 Gigawatt Renewable Energy Global Scenario Renewable energy contributes 1/5 th of the global power production. It has the potential to satisfy 100% of the growing global energy demands Renewable energy share (including-hydro) of global electricity production is 19% Global Renewable energy generation by origin 2.6% 19.0% 78.4% International Energy Outlook 2011 forecasts energy consumption growth by 53% between 2008 and It is expected to reach 770 quadrillion Btu India Italy Spain Germany US Fossil Fuels Nuclear Power Renewable energy Renewable power capacity (GW) India ranks #6 in the global RE 78 capacity with an installed capacity of 27GW (without 93 including hydro) China 118 Renewable energy has had a healthy growth owing to increasing focus through policy shifts Bio-fuel obligations Heat Obligations/mandates Tendering Policy RPS / quota policies Feed-in Countries with Policy targets Number of states/province/country Global Renewable Power Generation Wind Power Concentrating Solar Thermal Power Solar PV Geothermal Bio Mass

4 Renewable Energy - Indian Scenario Renewable energy sources currently contribute 30% of the installed capacity and is expected to increase to 34% by 2017 Installed Capacity Mix in India (GW), Thermal Nuclear Hydro Wind Power Small Hydro Power Biomass Power Fuel wise generation mix, 2013 Nuclear. 2% Hydro. 18% Thermal. 68% Fuel wise generation mix by 2017 projection Nuclear. 3% Renewable. 12% Renewable. 13% For the period , the target capacity addition for power sector is 118 GW out of which the target addition for renewable energy is 30,000 MW. This implies that 25% of the planned capacity addition is in the renewable segment Hydro. 21% Thermal. 63%

5 Section 2 Indian Scenario Renewable energy investment stemmed from the landmark Electricity Act 2003 and the subsequent policies & instruments. Electricity Act 2003 Mandated State Electricity Regulatory Commissions (SERCs) to promote power generation from renewable sources through proper grid connectivity and open access Fix certain minimum percentages for purchase of renewable power Policy Instrument Feed in Tariffs/ Preferential Tariffs Positives for Private sector investment Financial as well as economic costs and benefits of RE are not yet factored in FIT. National Electricity Policy 2005 Tariff Policy 2006 National Action Plan on Climate Change 2008 Further provided for progressive increase in generation of electricity from renewable sources and supported purchases by distribution companies through competitive bidding process 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 Outlined existing and future policies and programs addressing climate mitigation and adaptation NAPCC has advised that starting , RPOs be set at 5% of total grids purchase, and be increased by 1% each year for 10 years. Accelerated Depreciation Generation Based Incentives Renewable Purchase Obligation Renewable Energy Certificates (REC s) Carbon Trading Tax Incentives Result of which, there is commercial viability in this business Avenues for additional guaranteed revenues for project developers Readymade market for renewable power sources Helps renewable power developers to trade REC's and realise the value of power Additional revenue stream for developers to increase their financial returns Improved Return on Equity for developer

6 Renewable Energy - Tamil Nadu Tamil Nadu is a pioneer in harnessing its renewable energy potential in India as compared to its peers. CAGR 7% 6636 Renewable Energy Capacity (MW) #1 State in renewable energy capacity among all the Indian States #10 global installed capacity of wind power generation units and also #1 in India. #2 installed capacity of cogeneration power plants in the country 39.6% of the total power capacity from renewable energy sources

7 Tamil Nadu s Competitive Advantage Wind power in Tamil Nadu Advantageous geographic position and progressive policy initiatives Wind power passes in Tamil Nadu S. No. Areas Annual Average Wind Speeds 1 Palghat Pass, Coimbatore, Erode Shencottah Pass, Tirunelveli, Tuticorin Coimbatore Dindigul Theni Tirunelveli Kanyakumari Thoothukudi Ramnathapuram 3 Aralvoimozhi Pass, Kanyakumari Kambam Pass, Theni District Palghat Pass, Coimbatore, Erode Progressive policy initiatives The regulations allow for sale to third parties through open access. Wheeling charges for transmission of power using the network is at 40% of the conventional power. The State has allocated USD 377 Million and USD 198 Million in two phases for provision of transmission capacity for wind and solar sources

8 Solar Power in Tamil Nadu Geographic advantage of tropical region and initiatives to become national leader in solar power by achieving 3000MW Geographical Advantage India has solar incidence in the range of 4 7 kwh/sq.m./day, while Tamil Nadu enjoys solar incidence of kwh/sq.m/day. This sector which has hitherto been untapped with a cumulative capacity of only MW. Tamil Nadu is pioneer in announcing net metering policy Key features of solar energy policy 2012 Investment Outlay The State has an outlay of INR 55,000 crore (USD 9.16 Billion) for solar energy sector alone. This is more than 10% of the total allocation for Power sector Solar rooftop programme Solar rooftop has been made mandatory for all new State Government buildings. PV system will also be installed in old buildings in phased manner Tax Concessions Refund of 50% of the VAT component on capital goods (if these are manufactures in Tamil Nadu) exclusively for captive power generation Electricity tax exemption for sale to utility & captive sales for 5 years Hence, Tamil Nadu is a potential destination for solar investment Renewable energy sector Tamil Nadu Global Investors Meet 2015 Other features Domestic roof top installations with support from the State Government Net metering policy to encourage more number of installations Compulsory roof tops in all government buildings Solar water heating systems in public building and industrial buildings A total capacity of 1500 MW to promote development of solar capacity (of varied capacities ranging from 1MW to over 10 M.

9 Capacity in MW Biomass in Tamil Nadu USD 200 million opportunity of untapped potential Biomass Capacity/Potential in TN Installed Capacity Untapped potential Total Features of the Biomass power policy under the TNERC regulations. Any company/corporate body/association/body of individuals can set up a biomass power generation unit The applicable tariff for the current year is under revision. However, the tariff for the last year is Rs 4.85 per MW. Available potential is 272MW. The scheme allows for 3 rd party sale and open access. As per TANGEDCO, the approximate cost of setting up a biomass facility is INR 4.45 crore per MW (USD 0.74 Million). Therefore an investment potential of USD 200 Million. Wheeling charges at 50% of conventional power

10 Cogen in Tamil Nadu Raw material availability and investment policies Raw material availability The raw material for power generation using cogeneration plants is bagasse which is generated form sugar factories. Tamil Nadu is the third largest sugar producer in India with 43 factories and it accounts for about 10% of the total production. There are 29 plants in the State that together account for the capacity of 659 MW of cogen power capacity. This capacity is spread across the State in the delta region, Districts of Erode, Coimbatore, Tirunelveli etc. TNERC policies promoting investment Any company/corporate body/association/body of individuals can set up a biomass power generation unit The applicable tariff for the current year is under revision. However, the tariff for the last year is Rs per kwhr. The scheme allows for 3 rd party sale and open access. Wheeling charges at 7.5% of energy wheeled for Low tension services and 5% for others.

11 Opportunities for Investment in Renewable Energy in Tamil Nadu Tamil Nadu is conducive for investment across the spectrum in the renewable energy sector Development of windsolar hybrid installations and biomass projects Offshore wind projects development Development of solar PV manufacturing capabilities Development of large scale solar and wind parks Tidel projects first at pilot scale, and then at commercial scale

12 Government Support Tamil Nadu been the most forward looking State in terms of sustainable power development This has been achieved largely on account of the State s focused policy making and drive to capitalize on the opportunity. Tamil Nadu Electricity Board (TNEB) Limited Tamil Nadu Generation and distribution Corporation Limited (TANGEDCO) Energy Department Tamil Nadu Transmission Corporation Limited (TANTRANSCO) Tamil Nadu Energy Development Agency (TEDA) - Set up in 1984 to migrate the State from fossil to renewable energy Tamil Nadu Power Finance and Infrastructure Development Corporation Limited (TNPFIDC) Chief Electrical Inspector to Government (CEIG)

13 The current programmes as part of the policy initiative.. CM s Solar Powered Green House Scheme 0.3 Million houses will be constructed with solar powered lighting systems from to in rural areas CM s Solar Rooftop Capital Incentive Scheme A capital subsidy of $300 (INR 20, 000) per kw of installation over and above the GoI s 30% subsidy under the MNRE scheme Bio Energy Bio energy program's objective is to optimally utilize the vast biomass resource for power and cogeneration through biomass gasifier & biomass plants Solar Energy The State s ambitious solar energy policy 2012 is aiming to add 3000MW of solar in Tamil Nadu by 2015 which is ~16% of the total installed capacity in Tamil Nadu Wind Energy Wind is a success story of Tamil Nadu. The State has identified Kambam pass in Theni District for wind energy development. Currently 3 passes are in operation. Wind Solar Hybrid System A wind solar hybrid is a way to offset the seasonality of these power sources. Also the cost of the hybrid is 40-50% cheaper than pure play solar systems.

14 Additional Chief Secretary - Government of Tamil Nadu Industries Department Phone: Fax: indsec@tn.gov.in, jsindgim@tn.gov.in Nodal agency Tamil Nadu Industrial Guidance and Export Promotion Bureau 19-A, Rukmini Lakshmipathy Road, Egmore, Chennai Phone: directorguidance@gmail.com Visit us at