RENEWABLE ENERGY IN INDIA - Dansk Industri (wind biomass) in... · Windfarm Project in India...

RENEWABLE ENERGY IN INDIASECTOR FOCUS: WIND AND BIOMASS

A PARTNERSHIP BETWEEN

THE MINISTRY OF SCIENCE, INNOVATION AND HIGHER EDUCATION

AND THE MINISTRY OF FOREIGN AFFAIRS OF DENMARK

RENEWABLE ENERGY IN INDIA




Renewable energy contributes 14.7%

of the total installed capacity in the country as on 31.07.20161.

India has 5th largest power generation

portfolio in the world.

Current renewable energy contribution:

44.8 GW (As on 31.07.2016)1.

National Target: 175 GW Installed Renewable Power

by 20222.

60 GW from wind power;

100 GW from solar power;

10 GW from biomass power;

5 GW from small hydro power2.

Industry has attracted approx. US$ 10 billion in Foreign Direct

Investment (FDI), between April 2000 and March 20163.

Over the next 5–10 years, around 293

global and domestic companies have

committed to generate 266 GW of

mix-renewable energy (solar, wind,

mini-hydel and biomass) based power in India.

1HTTP://WWW.MAKEININDIA.COM/SECTOR/RENEWABLE-ENERGY

2HTTP://MNRE.GOV.IN/FILE-MANAGER/ANNUAL-REPORT/2015-2016/EN/CHAPTER%201/CHAPTER_1.HTML

3HTTPS://WWW.IBEF.ORG/ARCHIVES/DETAIL/B3ZLCNZPZXCMMZCYMZYMOTEW

Country-wise: New Investments in Renewable Energy India is geared-up ambitiously for the Renewable Energy

..CONTD.




•India would be the 3rd

largest country

consuming 9% of total

renewable energy

globally1.

•Initiative would entail

an investment of about

US$ 310–350 billion2.

•One of the India’s

Intended Nationally

Determined

Contribution (INDC) in

response to COP*

decisions is of reaching

a renewable energy

share of 40% by 20303.

2030

•India shall account for 11% of all investment in power generation4.

•Renewable energy penetration would be approximately 49%4.

•It is essential to engage India together with the other largest users such as Brazil, China, the EU and the United States (US) to achieve the goal of doubling renewable energy’s global share1.

2040

*CONFERENCE OF PARTIES

1REMAP RENEWABLE ENERGY PROSPECTS FOR INDIA. MAY 2017 WORKING PAPER

2HTTPS://WWW.IBEF.ORG/ARCHIVES/DETAIL/B3ZLCNZPZXCMMZCYMZYMOTEW

3 INDIA’S INTENDED NATIONALLY DETERMINED CONTRIBUTION: WORKING TOWARDS CLIMATE JUSTICE, HTTP://WWW4.UNFCCC.INT/SUBMISSIONS/INDC/PUBLISHED%20DOCUMENTS/INDIA/1/INDIA%20INDC%20TO%20UNFCCC.PDF

4GLOBAL WIND AND SOLAR COSTS TO FALL EVEN FASTER, WHILE COAL FADES EVEN IN CHINA AND INDIA. JUNE 2017. HTTPS://ABOUT.BNEF.COM/BLOG/GLOBAL-WIND-SOLAR-COSTS-FALL-EVEN-FASTER-COAL-FADES-EVEN-CHINA-INDIA/




Renewable Energy

(RE) Stakeholders

Equipment Manufacturers

and Technology Providers

Research & Development

(R&D)/ Technical

Institutions

State Governments

Regulators

Different Ministries of

Government of India

Indian Financial

Institutions/ Partner Banks

International Financial

Institutions

Developers/ Investors (including foreign)

Non Governmental Organizations

(NGOs)/ Association(s)

Nodal Agencies

Technology and Skill

Development /Technical Consulting

National Institute of

Wind Energy (NIWE);

Sardar SwaranSingh National

Institute of Bio-Energy

Facilitating effective

implementation of RE

programs & schemes

State Ministeries

etc.

Technology innovation;

Product marketing partners

SuzlonEnergy,

Gamesa, Inoxetc.

Formulating Conducive

regulations; Supporting RE policies from Centre and state

Central Electricity Regulatory Commission

(CERC); State Electricity Regulatory

Commissions

Promoting RE;

Facilitating large scale

off-grid programs like

small wind turbines etc.

Ministry of New and

Renewable Energy

(MNRE); Ministry of Power etc

Rural electrification

efforts by providing

debt funds at low cost

World Bank, Asian

Development Bank,

Goldman Sachs etc.

Concessional financing for RE projects

IREDA and other Indian

Banks

Implementing projects and Innovation in

business models for inclusive growth

Independent Power

Producers like Renew Power, Suzlon Energy,

GE Energy, Vestas,

Siemens etc.

Spreading Awareness/ Organizing

stakeholders meeting(s)

Confederation of Indian

Industries,Indian Wind

Power Association

etc.

Tendering and Bidding

out the projects

Windfarms, Solar–wind

hybrids

National Thermal Power Corporation; Solar Energy

Corporation of India

WIND ENERGY IN INDIACONTENTS




• Potential, Capacity, Market Overview

• State Focus

• Offshore Wind in India

• Danish Competencies in India

• Supply Chain

WIND ENERGY IN INDIA




1HTTP://WWW.GWEC.NET/WP-CONTENT/UPLOADS/VIP/GWEC_IWEO_2016_LR.PDF

2HTTPS://TIMESOFINDIA.INDIATIMES.COM/BUSINESS/INDIA-BUSINESS/GOVT-MULLING-2-3-TARIFF-BASED-AUCTIONS-FOR-WIND-

PROJECTS/ARTICLESHOW/61088778.CMS

3MNRE, (N.D.). WIND [ONLINE] AVAILABLE AT HTTP://BIT.LY/2V9L1B8,ACCESSED ON 22 AUGUST 2017

Growth of Installed Capacity3* (Projected), GW

Potential, Installed Capacity and Current Market Overview

4th largest installed capacity of wind power.

Estimated wind power potential by NIWE is 302 GW at 100m height.

Installed capacity of wind power~ 32 GW.

Top-five Wind Turbine Manufacturers in terms of cumulative installed capacity in India are Suzlon(35.4%), WindWorld (18%), Gamesa (10.1%), Vestas(7.6%), Regen (7.3%) and Inox (5.68%)1.

2017 is a "year of transition" for India’s wind energy’s market based mechanisms.

Industry has moved from tax-credit driven investment to mainstream bidding process by Independent Power Producers (IPPs).

In October 2017, during a planned auction 1 GW of capacity was awarded to five developers with a tariff of about 0.04 US$/kWh2.

Seeing the success of 2 bids, MNRE has planned auction of 4 GW wind projects during the current fiscal (uptoMarch 2018).

Indian government is planning to auction 5GW offshore wind projects in 2018.

http://bit.ly/2v9L1b8




Wind Energy: State Focus

Spread across the South, West and North regions of India.

Potential of wind energy is concentrated in the states of – Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu and Telangana.

Tamil Nadu has the highest installed capacity in the country and its state regulations are very much favourable to wind power development.

Maharashtra has the 2nd highest installed capacity.

Gujarat has 3rd highest installed capacity and its long coastline is also being tapped for offshore energy, with the government signing a Memorandum of Understanding (MoU) for a 500 MW offshore project, the first of its kind in India.

1HTTP://WWW.MNRE.GOV.IN/

2HTTP://NIWE.RES.IN/DEPARTMENT_WRA_100M%20AGL.PHP

Wind Power Potential at 100magl2

GujaratMaharashtra

Tamil Nadu

State wise Installed Wind (MW) (as on 31.10.2016)1




Offshore Wind in India

India has its National Offshore Wind Energy Policy.

Draft guidelines for Offshore Studies and Surveys by Private Sector have been issued by National Institute of Wind Energy (NIWE).

The EU Delegation to India, in close cooperation with the Indian Ministry of New and Renewable Energy, have given grant to two different consortiums: ‘Facilitating Offshore Wind in India (FOWIND)’, initiated by the Indo-European co-operation on renewable energy, is led by the Global Wind Energy Council (GWEC) and has been working for more than 3 years in offshore wind.

Another consortium led by COWI (Denmark) ‘First Offshore Windfarm Project in India (FOWPI)’. The project is preparing technical tender documents for a 200 MW offshore windfarm in Gujarat. The documentation is expected to be ready by mid 2018 for the NIWE to send a tender call to Indian and European companies to construct the offshore wind farm 1.

Danish Competenciesin India

Under 'Make in India' initiative and following to a commitment to Indian Prime Minister in November 2015, Vestas opened their blade manufacturing unit in Gujarat.

MoU for 1GW wind power generation has been signed between Gujarat Energy Development Agency (GEDA) and Vestas.

Vestas is partnering with the Skill Council of India and has research and development test centre for wind turbine components in Chennai, India2.

LM Wind Power set up its second blade factory in Vadodra, Gujarat promoting employment, advanced training and development of technical skills in the state. Currently, it operates a blade manufacturing facility in Dobaspet, Karnataka and a research and development office in Bangalore3.

1HTTP://NIWE.RES.IN/DEPARTMENT_WRA&O_OFFSHORE_PORTAL.PHP

2HTTP://DESHGUJARAT.COM/2017/03/25/GUJARAT-CM-INAUGURATES-VESTAS-WIND-POWER-BLADE-PLANT-AT-BAVLA/

3HTTPS://WWW.LMWINDPOWER.COM/EN/STORIES-AND-PRESS/STORIES/NEWS-FROM-LM-PLACES/LM-WIND-POWER-ANNOUNCES-SECOND-BLADE-FACTORY-IN-INDIA




Raw material and

Machinery Suppliers

Design and Development

Services

Component Suppliers

Wind Turbine Companies

Construction and

Installation Services

Windfarm Developers

Design

Engineering

Research

Machining

Automation

Assembly

Steel

Carbon fibre

Balsa wood

Fibre glass

Other

materials

Machinery

Tooling

Gearbox

Bearing

Tower

Generators

Blades

Electronics

OEMs

Large utility

scale

Small wind

New wind

energy

designers

Turbine mfg

licensees

Engineering &

Procurement

(EPC)

Construction

companies

Transportation

services

Operation and

maintenance

Feasibility

analysis

firms

Project

developers

Utilities

SUPPLY CHAIN

HTTP://WWW.EAI.IN/REF/EVE/WIND_POWER_VALUE_CHAIN.PDF

Represents Thrust areas in Supply Chain.

Maximum Market potential for Danish competencies exists in:

Design and Engineering

Operation and Maintenance

• Feasibility studies

• Research and Development

BIOMASS ENERGY IN INDIACONTENTS




• Potential, Capacity, Market overview

• State Focus

• Fiscal Incentives

• Danish Competencies in India

• Supply Chain

BIOMASS ENERGY IN INDIA




1HTTP://MNRE.GOV.IN/SCHEMES/GRID-CONNECTED/BIOMASS-POWERCOGEN/

2MNRE, (N.D.). BIOMASS KNOWLEDGE PORTAL [ONLINE] AVAILABLE AT <HTTP://BIOMASSPOWER.GOV.IN/> ACCESSED ON 22 AUGUST 2017

3HTTP://MNRE.GOV.IN/FILE-MANAGER/ANNUAL-REPORT/2016-2017/EN/PDF/3.PDF

Potential, Installed Capacity and Current Market Overview: Biomass in Indian energy matrix for remote villages and decentralised settlements

India has potential of about 18 GW of energy from Biomass1.

Currently, about 32% of total primary energy used in India is derived from Biomass.

More than 70% of the country’s population depends upon biomass for its energy needs.

Biomass related projects receives an investment of about $9251 million every year, leading to electricity generation of 5000 million units.

India has ~5+ GW capacity biomass powered plants: 83% are grid connected while the remaining 17% are off-grid plants2.

Off-grid plants based on biomass gasification technology are used for thermal and power application in rural areas.

Year-wise Cumulative Bio-Power (Biomass/ Cogen, Waste to Energy) Installed Capacity (GW)




1HTTP://MNRE.GOV.IN/SCHEMES/GRID-CONNECTED/BIOMASS-POWERCOGEN/

2HTTP://MNRE.GOV.IN/FILE-MANAGER/ANNUAL-REPORT/2016-2017/EN/PDF/3.PDF

3HTTP://BIOMASSPOWER.GOV.IN/STATE-WISE.PHP

Biomass Energy: State Focus

In India, around 70 Cogeneration projects with surplus capacity aggregating to 800 MW are under implementation1.

Leading states for biomass power projects are Maharashtra, Uttar Pradesh and Karnataka.

Other states with favorable policies and opportunities includes: Punjab http://biomasspower.gov.in/state-wise-policy-punjab.php and; Biharhttp://biomasspower.gov.in/state-wise-policy-bihar.php

Biomass Energy Potential (as on 20 March 2016)3

State-wise Grid Interactive Bio-Power Installed Capacity (MW)(Biomass / Cogeneration and Waste to energy)2

http://biomasspower.gov.in/state-wise-policy-punjab.php

http://biomasspower.gov.in/state-wise-policy-bihar.php




Fiscal Incentives: Biomass Power Generation1

The government has developed an central policy for biomass and bagasse cogeneration. It includes financial incentives and subsidies, both for biomass projects and sugar mills that use the technology.

Government of India (GoI) also gives 10 years Income tax exemption for implementing such projects.

Concessional customs and excise duty exemption for machinery and components for initial setting up of Biomass power projects are also provided.

Exemption from General Slaes Tax is also available in certain States

State governments have also instituted their own incentives and subsidies which differs across the states.

Danish Competenciesin India

The largest Danish actors with activities within the Indian Biomass sector is Andritz and Novozymes.

1HTTP://WWW.MNRE.GOV.IN/

SUPPLY CHAIN




Agricultural inputs and supplies

Biomass Production

Biomass Collection

Biomass Mobilization

Bio/ThermoProcessing

Inputs End Products

Seeds

Crop

protection

Biofertilizers

Bioenergy

crops

Short rotation

crops

Short rotation

woods

Agricultural waste

aggregation

Municipal solid

waste

Logistics

Compacting

technologies

Biomass trading

Biomass supply

and partnerships

Enzymes

Pre-treatment

chemicals

Advanced

technologies

for thermal

conversion

Energy/ Gas

Biorefining

Bioplastics

manufacture

Synthetic rubber

Other

Biomass Collection

Biomass Mobilization

Bio/Thermo Processing Inputs

Feasibility studies

Research and Development

Manual

Collection

Automated

Collection

Represents Thrust areas in Supply Chain.

Maximum Market potential for Danish competencies exists in:

HTTP://WWW.EAI.IN/REF/AE/BIO/BIZ/BIOMASS_BIZ_OPP.HTML

PEST ANALYSIS FOR RE SECTOR




POLITICAL

Opportunities

• Meeting Sustainable Development Goals (SDG) Goal 7: Affordable and Clean Energy; Goal 13: Climate Change and;

• Conducive Policy & Regulatory Framework for promoting RE and ease to do business

• Availability of funds

• Upgrading regulatory mechanisms and Integration of RE into national grid

• Interest of both international and national private entities in the sector

Threat

• Non availability of financial resources for supporting RE

• Political support at the State Government level/institutions vary widely

• Lack of interest to support such resources by other ministries

ECONOMIC

Opportunities

• Meeting Sustainable Development Goals (SDG) Goal 8: Decent Work and Economic Growth; Goal 17: Partnerships for the Goals

• Increasing oil-prices and energy demand

• Increasing gap in energy supply and existence of regions in the country with no access to grid power

• Decreasing availability of conventional fuel sources such as coal

• Possibility of significant reduction in costs of solar, wind and storage technologies

Threat

• Availability of subsidies for diesel, kerosene, cooking gas

• Financial institutions are becoming risk-averse

• Reducing financial attractiveness of the market and maintaining cost competitiveness vis-à-vis international markets

…CONTD.




SOCIO-CULTURAL

Opportunities

• Significant potential of employability

• Meeting Sustainable Development Goals (SDG) Goal 8: Decent Work and Economic Growth

Threat

• Resistance from local community/ end-users towards use of certain technologies (e.g. waste to energy)

TECHNOLOGICAL

Opportunities

• Meeting Sustainable Development Goals (SDG) Goal 9: Industry, Innovation and Infrastructure

• Technology break-through in solar, small wind turbines, low-cost storage solutions

• New technology breakthrough –second generation biofuel technology breakthrough

Threat

• Inadequate transmission system capacity

• Infrastructure bottlenecks

RE OPPORTUNITIES IN INDIA




RE Missions Jawaharlal Nehru National Solar Mission - The objective of the mission is to establish India as a global leader in solar energy

National Biogas and Manure Management Programme

Solar: Lantern Programme, Solar thermal energy Demonstration Programme; Remote Village Lighting Programme

National Biomass Cookstoves Initiative

National Offshore Wind Energy Authority

Small Hydro Power Programme

India’s Energy Storage Mission

Business Opportunities

Energy Storage Market is expected to grow to 70 GW by 2022. India’s market for EV batteries is worth of $300 billion from 2017 to 2030.

Forecasting and scheduling regulations have been notified by many states namely Karnataka, Andhra Pradesh, Rajasthan and Madhya Pradesh.

Green Energy Corridors have been designed to strengthen the inter- as well as intra- state transmission intra-state as well as inter-state transmission infrastructure.

Wind Repowering policy has been issued by Ministry in 2016 for wind-turbines installed before the year 2000 with capacity below 500 kW at sites having high wind energy potential.

Wind-Solar Hybrid policy draft has been prepared by MNRE in 2016, having up to 10 GW of hybrid capacities by FY 2022.

Wind Bidding Scheme has been enabled for Discoms of the non-windy States through purchase of wind power at a tariff determined by transparent bidding process.

Grid-interactive RE power based projects (wind, biomass, small hydro and solar) are driven by private investments having favourable tariff policy regimes.

HTTP://WWW.MNRE.GOV.IN/

KEY CONTACTS




Contributors Deepshikha Sharma, PhD ([email protected])Senior Commercial Advisor: Cleantech

Twinkle Jawrani, ([email protected]) Innovation Officer

Anandita Prakash, ([email protected])Innovation Consultant

Rasmus Soltendieck, ([email protected])

Innovation Intern

Contact Address Innovation Centre Denmark, Royal Danish Embassy, 11 Golf Links, New

Delhi - 110 003, India. Phone: 00-91 (11) 42090700

mailto:[email protected]







Thank You

RENEWABLE ENERGY IN INDIA - Dansk Industri (wind biomass) in... · Windfarm Project in India...

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