sandip das
DESCRIPTION
Sandip DasTRANSCRIPT
Uptake of Renewables in Indian Market
Sandip Das,
Head of Renewables, PXIL, India
Power Exchange India Limited
5th November 2012
Renewable Energy in India - Development
� The role of New and Renewable Energy has assumed significance in recent
times with the growing concern for India’s Energy security
� Development of focused approach:
― Commission for Additional Sources of Energy (CASE) in 1981
― Department of Non-Conventional Energy Sources (DNES) under Ministry of
Energy in 1982
― Ministry of Non-Conventional Energy Sources (MNES) in 1992
― MNES renamed as Ministry of New and Renewable Energy (MNRE) in 2006
Commission for
Additional
Sources of
Energy (CASE)
1981
Department of
Non-conventional
Energy Sources
(DNES)
1982
Ministry of Non-
Conventional Energy
sources (MNES)
1992
Ministry of New
and Renewable
Energy (MNRE)
2006
Development of focused approach
NAPCC and National Tariff Policy
NAPCC
� National Action Plan on Climate Change (NAPCC) released by Prime Minister of India
on June 2008 with an aim to continue India on a high growth path along with taking
responsibility on climate change
� Aims to achieve target through 8 missions
� National Solar Mission
� National Mission for Enhanced Energy Efficiency
� Six National Missions on Water, Sustainable Habitats, the Himalayan
Ecosystem, Sustainable Agriculture, Green India and Strategic Knowledge on Climate
Change
� National Bio-Energy Mission to be added in 12th 5-year plan (FY 12-13 to 16-17)
� Recommended increasing the share of Renewable energy to 10% by 2015 and 15% by
2020
National Tariff Policy
� The Amendment to National Tariff Policy-2006 issued in Jan-2011 has specified
Purchase from Solar energy at 0.25% by FY 2012-13 and to reach 3% by FY 2021-22
Renewable Energy in India – Promotion of Investments
� Renewable Energy sector (mainly Wind) took off in mid 90’s after
Government of India(GoI) started the Accelerated Depreciation Scheme as
a Tax incentive
� Preferential Tariff determined by State Electricity Regulatory Commission
(SERCs) was the only way to sell Electricity
� With focus on capacity addition rather than generation, Renewable energy
generation below International standards
� In December 2009, Ministry of New and Renewable Energy(MNRE) initiated
Generation Based Incentive(GBI) scheme
― Indian Renewable Development Agency (IREDA),the Financial Institution for
Renewable projects also is the central agency for implementing the GBI
scheme
� Migrating towards a Renewable Purchase Obligation (RPO) regime where
Obligated entities will meet their targets through REC market and
Preferential Tariff
RE Technology12th Plan(2012-17) capacity
addition targets (MW)
Wind Power 19255
Solar Power 9410
Small Hydro Power 2799
Biomass Power 4250
Total 35714
Nuclear , 5
GW, 2%Hydro , 39
GW, 19%
Renewable
Energy , 25
GW, 12%
Coal , 118
GW, 57%
Gas , 19
GW, 9%
Diesel , 1
GW, 1%
Total Installed Capacity as on Sep 2012
Wind , 17967
MW,
69.5%
Small Hydro,
3434 MW,
13.3%
Biomass,
1210 MW,
4.7%
Bagase , 2110
MW,
8.2%
Solar,
1044 MW,
4.0%
Municipal
Waste, 94
MW,
0.4%
Renewable Installed Capacity as on Sep 2012
Power Sector Capacity Distribution in India
Renewable Energy Potential (GW)
Source: Central Electricity Authority (CEA) website
Jawaharlal Nehru National Solar Mission(JNNSM)
� National level bidding to set up Solar Power plants at a single location to achieve economies of scale
� JNNSM Phase-I target of 1000 MW grid connected Solar Power plants to be completed by 2013
� 131 projects of 802 MW in Batch-I and 28 projects of 350 MW in Batch-II
� Financial closure achieved by 35 projects of 610 MW in Phase -I Batch-I
� Grid Connected Solar capacity increased from 10 MW in FY 09-10 to 1044 MW in FY 11-12
� Record low tariffs of 15 cents/unit in JNNSM Phase-I Batch -II
– Grid Parity likely to be achieved much before FY 16-17
� Charanka Solar Park in Gujarat- Largest Solar Park in Asia with current capacity of 214 MW with total
planned capacity of 500 MW
Particular Phase I (2010 - 13) Phase II (2013 - 17) Phase III (2017 - 22)
Utility Grid power, including Roof
top1100 MW 4000 - 10000 MW 20000 MW
Off Grid Solar Applications 200 MW 1000 MW 2000 MW
Aggregation of Demand to provide economies of scale
Renewable Energy Certificates (REC) - Introduction
� REC - A Market based instrument
– Distribution of RE resources not uniform
across the country
– In past, Feed in Tariffs (FiTs) set by various
SERCs was the only option
– Renewable rich states reached their
saturation level and had no obligation to
purchase costly Renewable energy
beyond their Renewable Purchase
Obligation (RPO) target
– Problem overcome by creating a National
REC Market where each state has to
meet its RPO either through FiTs route or
the REC route
� A vibrant and liquid National Market
for participants to carry out RE
transactions
RPO Target of various States for
2012
REC Mechanism – Conceptual Framework
RE Generation
Sale at Preferential Tariff
Distribution licensees
Sale under REC Framework
Electricity Component
Distribution licensee at a Price
not more than Average Power Purchase Cost
Third Party sale at mutually agreed
Price
Sale through Power Exchange
Renewable Component
Obligated Entities (Sale through
Power Exchange)
REC Market
� 1 REC = 1 MWh
� Floor & Forbearance Price declared till FY 16-17
� Rapid Growth in RECs issued from avg. of 87000 in
FY 12 to avg. of 0.34 Million in H-1 of FY 2012-13
� Market envisages to trade 0.5 Million REC / Month
by end of FY 2012-13
.00 .00
.03.03 .03.03
.07
.13.14
.09
.10
.20
.20
.12
.23
.26
.38
.47
.53
0
0.1
0.2
0.3
0.4
0.5Monthly REC Issued (in millions)
.00
.02 .02 .02
.00
.07
.10
.11
.11
.17
.21 .20
.07
.17
.24
.16
.27 .27
0
0.05
0.1
0.15
0.2
0.25
0.3
Ap
r-1
1
Ma
y-1
1
Jun
-11
Jul-
11
Au
g-1
1
Se
p-1
1
Oct
-11
No
v-1
1
De
c-1
1
Jan
-12
Feb
-12
Ma
r-1
2
Ap
r-1
2
Ma
y-1
2
Jun
-12
Jul-
12
Au
g-1
2
Se
p-1
2
Monthly RECs traded (in millions)
ParticularFloor Price
(in INR/REC)
Forbearance
Price
(in INR/REC)
Non-Solar 1500 3300
Solar 9300 13400
Issues
� Need for single window clearances to fast track commissioning
of RE based Power projects
� Setting up of evacuation facilities for full utilization of RE Power
� Strengthening of enforcement and monitoring mechanism for
meeting of RPO obligations of various states
� Emerging demand from generators to extend the tenure of REC
scheme to be co terminous with loan tenures
� Better forecasting technologies for RE power - Will help in
scheduling of RE power
Path Ahead
� Wind largest contributor (70%) to RE
portfolio of India
� Estimated Potential of 100 GW in wind at
80m Hub Height
� Focus on utilisation of Capacity by improving
PLF of Wind
� Biomass contributes around 5 % of total RE
portfolio of India - Strategic importance in
Urban areas for managing Municipal Waste
� Focus on building of ‘Green Energy
Corridors’ with a cost of $8 Billion to
evacuate Renewable energy from states of
Tamil Nadu, Karnataka, Andhra
Pradesh, Gujarat, Maharashtra, Rajasthan
and Himachal Pradesh
� Establishment of Renewable Energy
Management Centers(REMC) to co-ordinate
with the System Operators
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