1. No category

First Renewable Energy Global Investment
Promotion Meet & Expo, New Delhi, India
(RE-INVEST )
Ministry of New and Renewable Energy
Government of India
15th-17th February 2015
Salient features of the Indian Economy - 2013
• Largest Democracy
• Population of 1.24 bn.*
• GDP:
• USD 1,876.80 bn.**
• Ranked 10th globally
• Growth rate of 5%
• A per capita GNI of USD 1,571
• Ranked 3rd globally in terms of PPP*
17.4%
Agriculture
Industry
Services
25.8%
56.9%
GDP Composition by Industry
• A liberal foreign investment regime
• FDI of USD 28.15 bn. in 2013
• Abundance of natural resources, a rich mineral base & self-sufficiency in
agriculture
• Fifth highest investment in infrastructure projects in energy that have
reached financial closure and serve the public
*Source:
http://www.imf.org/external/pubs/ft/weo/2014/01/weodata/index.aspx; **Source: http://data.worldbank.org/indicator/NY.GDP.MKTP.CD;
12.7%
Indian Power Sector
Power Installed Capacity = 253.390 GW
As of 31st August 2014
Thermal
176,118.6
MW
•
•
•
•
•
•
Hydro
40,798.8
MW
Nuclear
4,780
MW
Renewable
32,307.71
MW
Thermal
16.1%
Nuclear
Hydro
1.9%
69.3%
Renewable
Total
254,005.1
MW
Indian energy scenario
India’s energy usage has been rapidly increasing as a result of economic growth in
the last decade and the large population;
Per capita consumption of electricity in India (2.02kWh) is very low compared to
Canada (51.5kWh), USA (39.25kWh) and other developed countries.
India is one of the major coal importing nations in the world
More than 25% of primary energy needs being met by imports mainly in the form of
crude oil and gas
India is endowed with vast renewable energy resources including wind, solar,
biomass and small hydro.
India needs to develop the available renewable energy to meet its growing power
needs and ensure energy security
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8.49%
Renewable Power Capacity
12.52%
Wind
Small Hydro
Power Installed Capacity = 32.308 GW
As of 31st August, 2014
Wind
21,692.98
MW
Small Hydro
3,826.18
MW
Solar
2,743
MW
Biomass
4,045.55
MW
Bio mass
11.84%
Solar
67.14%
Total
32,307.71
MW
Renewable Power Projects Potential
Resource
Potential (MW)
Cumulative
achievement
Wind
49,500(50m hub height)
102,800(80m hub height)
21,692.98
Small Hydro(up to 25MW)
19,700
3,826.18
Biomass including bagasse
cogeneration
22,500
4,045.55
Solar
50MWp/km2
2,743MW
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India’s Energy Challenge
In next 12 years India’s
electricity requirement to
grow 2.5 times
Peak shortage of 2%
and energy shortage
of 5.1% is
expected(2014-15) **
Demand
Climate Change is
also an important
issue
Shortage
Climate
Change
Access
Security
India was dependent on
oil imports for 71% of its
demand in 2012*
*Source:
http://www.eia.gov/countries/cab.cfm?fips=in;
300 Million people
did not have access
to electricity as per
the 2011 census *
**Source:
http://www.cea.nic.in/reports/yearly/lgbr_report.pdf
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Renewable Energy: Historic Trends
and Growth Enablers
35000.00
JNNSM Phase II
guidelines
Tariff Policy,2006
• Discom shall fix
RPO
• Discom to procure
RE power through
competitive bidding
30000.00
Electricity Act 2003
NAPCC
guidelines
25000.00
CERC RE Tariff
Regulation and
JNNSM
guidelines
REC Regulation
20000.00
MW
NEP, 2005
• SERC to determine
preferential tariff
• Promote private
sector participation
in RE
15000.00
10000.00
Power restructuring and
national guidelines on
tariff, inter-connection
and third party sales
5000.00
0.00
FY 02
FY 03
FY 04
Wind
FY 05
FY 06
FY 07
Biomass
Solar
WtE
FY 08
SHP
FY 09
FY 10
FY 11
FY 12
FY 13
FY 14
Cumulative Installed Capacity
6
Clean Energy Investment so far…
14
12.3
12
Clean energy investment, 2013, $billion
USD Billion
10
7.6
8
6
4.7
4
2
2
5.6
4.7
6.85
5.6
4.2
2.9
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Bloomberg Finance Report, 2014
•
•
•
•
•
Indian clean energy market is largely driven by asset-based
finance to the extent of 94% of the total investment in the sector.
A variety of investors finance renewable energy projects in India,
including institutions, banks, and registered companies
Development Banks-IREDA, continue to represent a key source
of funds for RE investments, particularly in project finance , over
the medium term.
Institutional investors are either state-owned or bilateral and
multilateral institutions
The estimated investment in Indian market will be about 100
billion USD in coming 4 years as per government estimates.
Asset
finance
Public
Market
VC/PE
Total
Solar
0.9
-
0.01
1.0
Bio-fuels
0.03
-
-
0.03
SHP
0.7
-
0.01
0.7
Biomass
0.5
-
0.02
0.6
Wind
3.2
-
0.1
3.3
Source: Bloomberg Finance Report, 2014
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12th Plan Targets (up to March 2017)
Technology
Target*
Investment required
Wind Power Projects
15000 MW
US$15 billion
Small Hydro Projects
2100MW
US$2.1 billion
Biomass based power projects
2700 MW
US$2.7 billion
Grid connected Solar power projects 10000MW
US$12 billion
Off grid solar power projects
US$1.8 billion
Aggregate
1000MW
US$33.6 billion
* These are now being up-scaled to 100GW capacity addition in next five years (about
20000 MW every year ) requiring about US$ 20 billion every year excluding power
evacuation facility.
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Renewable Energy Policy Initiatives in India
National Solar Mission
Government specified targets for capacity addition in
both grid /off-grid solar
• Biggest demand pull program globally
• High quantum availability reduces tariff
• 3 rounds of bidding for solar projects have
happened since its inception
• Payment security increases investor confidence
Solar park scheme (draft)
Government support for large scale solar parks
• Offer pre-existing infrastructure facilities
• Competitive advantage of plugging in projects
• SECI is the nodal agency for central support
Biomass & Cogeneration
Specified targets to be achieved within a time frame
• Support for fuel security
• Robust mechanism to define fuel prices
• Command area specifying a minimum radius for
every power plant
• Industrial cogeneration has high potential and is
relatively untapped on an organized scale
Scaling up solar energy
Government to scale up solar through 3 key measures
• Large scale deployment of rooftop projects
• Increased pace of grid connected projects.
• Thrust on large scale projects (100 MW min.)
• Government ambitions for 100 GW in 6-8 years
National wind mission & offshore policy (draft)
Defined targets with aggressive frameworks for On/off
shore wind; small wind; hybrid and other technologies
• Thrust on increased local manufacturing
• Resource allocation for faster deployment
• Repowering of old wind machines
• Single window clearance
• Sea Bed Lease Arrangement.
• Grid connectivity and evacuation of power
Strengthening of transmission infrastructure
Development of network specifically for wheeling of
RE power.
• Integration of existing grid with green corridor.
• Strengthening of infrastructure will assist
developers in accurate forecasting of generation 9
Transmission Infrastructure
•
•
•
Existing evacuation infrastructure is not capable
of evacuating proposed capacity additions
A need to integrate of RE based generation to
the existing system
Proposed high capacity transmission systems
(Green energy corridor)
Green Energy Corridor
• Will evacuate renewable power from RE rich states
to load centres
• Make pockets of RE generation grid interactive
• Reduce evacuation losses
• Foster reliable forecasting of renewable energy
based generation
• Allow Grid scale energy storage & its management
• Require a capital outlay of around INR 425
billion(USD 6.964 billion)
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Tax & Regulatory Incentives
Incentive
Details
Income tax Holiday
100% for 10 consecutive years - MAT @ 20% to apply
Accelerated
depreciation
Accelerated depreciation @ 80% on solar assets
Additional depreciation @ 20% on new plant/machinery in the 1 st year
Deemed export
benefits
Available to specified goods manufactured and not actually exported
• Advance authorization from Directorate General of Foreign Trade
• Deemed export drawbacks
• Exemption/return of Terminal Excise Duty
Service tax based on
negative list
Certain services are exempted from service tax
• Services of transmission or distribution of electricity by an electricity utility
Customs and Excise
Laws
Various duty concessions and exemptions to RE Sector
Reduced VAT
Certain States allow reduced VAT rates (5%) on RE projects
Additional one-time
allowance
Available @15% in Budget 2014 on new plant and machinery
Tax-free Grants
Grants received from the holding company engaged in generation, distribution
or transmission of power
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Non-Tax Incentives
Incentive
Details
Feed-in-tariffs
•
•
When renewable generators sell to state utilities under the MoU route
Rates decided by the CERC and the SERC
Rebates
•
•
•
Available on the manufacturing of solar and wind components
Targeted at specific types of renewable energy technology
Include subsidies and rebates on capital expenditures
Favourable land
policies
•
•
By various state governments for renewable development
Reduce capital costs and favour ease of land allocation
Government R&D
programmes
•
•
Improve renewable energy technologies
Lead to growing performance, importance and reducing costs
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Foreign Investment
FDI: Foreign Direct Investment
•
•
•
•
•
•
100% FDI under the Automatic Route
Does not require approval from the
Government of India
The Indian Company receiving FDI is
required to:
• Report to the Reserve Bank of India
the receipt of FDI within 30 days
• File form FC-GPR within 30 days of
issue of shares
Shares are issued to the Investor within 180
days of receipt of FDI
Financial and fiscal advantages, such as
preferential tariff or payment security
mechanism
Government encourages transfer of foreign
technology
JV: Joint Venture
•
•
•
•
•
•
Automatic approval for up to 74% foreign
equity participation in a JV
Liberalized foreign investment approval
regime
100% foreign investment as equity is
permissible with the approval of Foreign
Investment Promotion Board (FIPB)
Various chambers of commerce and industry
associations in India provide guidance to
investors in finding appropriate Partners
Investors can set up a liaison office in India
Foreign Investors are encouraged to set up
RE-based power generation projects on
build-own-operate basis
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Making India the New Investment Destination for Renewable
Energy
A Government of India Initiative
The Event
• Encourage ‘Make in India’ – for manufacturing and generating energy
• Central theme - to attract large scale investments for renewable
energy sector in India
• First major event for investment promotion in RE sector by
Government of India, with active participation from the States
• Provide a platform to global investment community to connect with
stakeholders in RE sector in India: central and state government
officials of India, leading business leaders and top executives from the
industry, academics and experts from around the world
Objectives
• To project India as an attractive investment destination
for RE
• To bring foreign investment to new areas of RE such as
small hydro, offshore wind, hydrogen, bio-fuels and
geothermal while further strengthening solar and wind
energy sectors
• To demonstrate India’s commitment towards
development and up-scaling of RE to meet its energy
requirement while taking care of the environment
Conference
• Plenary session:
– Inauguration by Hon’ble Prime Minister of India
– Addresses by high level national and international
dignitaries
• Technical & breakout sessions
• Policy sessions by central and state
governments
• Pre-arranged one-to-one business meetings
• Working panels and networking opportunities
Exhibition
• Trade show with 300 – 350 companies
• Showcase of:
– Manufacturing capabilities
– Latest technologies
– Innovative financing options
– Investment opportunities
• Representation from domestic and
international manufacturers, project
developers, investors, service providers
Agenda
• Interactions on key drivers of RE
production and use including:
–
–
–
–
Grid interactive renewable power
Policy and technical issues
Decentralized and distributed RE generation
Up-scaling global effort for technology development and
transfer
– Financing and investment
• Sector-specific granulated discussions on
policies, incentives, compliance norms,
timelines and other practical requirements
(contd…)
Agenda
• Current investment landscape from different
perspectives
• Status of the RE development, with focus on
equity and credit financing, established and
emerging commercial technologies, and
renewable power generation
• Expo to showcase the industry’s
manufacturing capabilities and latest
technologies to investors
Market
• Favorable policy frameworks set by central and state
governments to facilitate RE projects, such as:
– FDI up to 100% permitted in RE generation and
distribution projects under the automatic route
– Transfer of foreign technologies encouraged
– Incentives offered:
•
•
•
•
•
Capital subsidies, including for biomass and small hydro projects
Viability Gap Funding (VGF) for solar projects
Preferential tariffs, Feed-in-Tariffs (FiTs)
Generation-based incentives and tax benefits
Payment security mechanisms
Participants
• Over 200 Indian and international large
investors are expected from:
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–
–
–
–
–
–
–
Renewable power project developers and manufacturers
Bilateral and multilateral financial institutions
Indian Banks and non-banking financial companies (NBFCs)
Institutional investment companies
State government departments and renewable energy nodal agencies
Public Sector Units
Utility representatives and equipment suppliers
Other related stakeholders from the renewable energy sector
• Over 1,000 delegates expected from across the
world
Organizers
•
•
•
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•
•
Ministry of New and Renewable Energy (MNRE), Government of India
The Indian Renewable Energy Development Agency (IREDA)
Confederation of Indian Industry (CII)
Federation of India Chambers of Commerce and Industry (FICCI)
Knowledge Partner: PricewaterhouseCoopers (PwC)
Supported by leading industrial and sector-specific organisations including
ASSOCHAM and PHD Chamber of Commerce and Industry
• More information:
http://mnre.gov.in | http://www.ireda.gov.in | www.cii.in | www.ficci.com
• Event website: http://www.re-invest.in
Venue & Registration
• Venue:- Ashok Hotel, Niti Marg, Chanakyapuri, New Delhi- 110021
(India)
• Conference Registration Fee:-
 Indian Nationals - Rs. 7000/- per delegate
 Foreign delegates- US$ 200/- per delegate
• Exhibition Registration Fee:-
 Rent for exhibitors Bare space :Indian Exhibitors Rs.13000/- per sq m + 12.36% Service Tax
Foreign Exhibitors US $ 300-per sq m + 12.36% Service Tax
 Rent for exhibitors shell space : Indian Exhibitors Rs.15000/- per sq m + 12.36% Service Tax
 Foreign Exhibitors US $ 350-per sq m+ 12.36% Service Tax
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THANK YOU
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| Presentation Title | Presenter Name | Date | Subject | Business Use Only