Karnataka Renewable Energy Development Limited
Introduction.
Karnataka - Supporting Renewable Initiatives • 2015
KREDL
February 2015
1
Section 1 – Introduction.
Karnataka, a state with significant potential for all forms of
energy.
State Capacity by fuel mix (MW)
State Renewable energy capacity (MW)
3000
16000
14000
2500
12000
2000
Renewabl
e, 4741
Coal,
6251
10000
1500
8000
6000
1000
4000
Nuclear,
476
500
Hydro,
3600
2000
0
Diesel,
234
0
Wind
Cogen
SHP
Capacity (MW)
Biomass
Solar PV
Potential(MW)
•
The total installed capacity of the state ~ 14.2GW (Nov 2014). Thermal and hydro have been the
main sources of electricity in the state. Renewable energy accounts for ~31% of installed capacity.
•
Renewable energy potential is estimated in excess of 30.2 GW.
•
Government has allotted projects of 13 GW wind and 782MW solar.
•
KREDL, established in 1996 by the Government of Karnataka as the state nodal agency has added
~4.7 GW of renewable based capacities since incorporation and plays an active role.
Karnataka - Supporting Renewable Initiatives • 2015
KREDL
February 2015
2
Section 1 – Introduction.
Why Karnataka for renewables?
Capacity addition planned across all forms of renewables.
• One of the fastest growing states and a
leading investment destination has a
total installed power generation capacity
of 14.2 GW.
Opportunity for capacity addition across all forms
of renewables
• Karnataka is one of the top 4 states with
installed renewable energy generation
capacity.
Wind
13983
2614
Small Hydro
3000
785
Cogeneration
2000
1144
Biomass
1000
113
Solar PV
10,000
84
135
-
30118
4741
• Coal based power generation
contributes the maximum with its
share around 41%. The state with
3.5GW has the 2nd largest Hydel
capacity in the country.
• Share of renewable energy in the
overall capacity mix today in MW
terms in Karnataka stands at an
impressive 31%.
Karnataka - Supporting Renewable Initiatives • 2015
KREDL
Capacity
Renewable Energy
Capacity
commissioned
Source
Potential (MW)
(MW )
Municipal Solid
Waste
Total
25 GW
state RE potential to harness
February 2015
3
One State, many investment
opportunity.
“With access to natural
resources like coal and
gas being a challenge, a
naturally preferred and
reliable option is
renewable energy”
Karnataka - Supporting Renewable Initiatives • 2015
KREDL
February 2015
4
Section 2 – One State, many investment opportunity.
1. Solar power.
• Karnataka receives global solar radiation in the
range of 5.1 - 6.4 kWh/m2 (summer), 3.5 - 5.3
kWh/m2 (monsoon), and 3.8 – 5.9 kWh/m2
(winter), making solar energy generation across
all seasons.
Karnataka Solar PV project capacity (MW)
84
60
50
40
30
• KREDL estimates a potential of over 5GW.
20
10
• Large amount of area available in urban areas in
the form of roof tops can be used for solar
energy generation.
• Capacity allocation – A transparent competitive
price discovery model on regulator determined
tariff.
• Industry friendly policy and regulations.
No Cross subsidy surcharge (3rd party); No
transmission and wheeling charge and 100%
banking for open access projects.
Karnataka - Supporting Renewable Initiatives • 2015
KREDL
90
80
70
60
50
40
30
20
10
0
31
13
0
FY 13
Capacity addition (MW)
FY 14
FY 15
Total installed capacity (MW)
State is promoting Utility scale
on-grid projects; roof top
projects with net metering
policy; decentralized on-grid
projects through “farmers
category” and other off –grid
projects.
February 2015
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Section 2 – One State, many investment opportunity.
Solar power - Karnataka Solar Policy 2014-21
In support of the national and state targets, with over 700MW in development.
• Government of Karnataka (GoK) on 22nd May
2014 revised its existing state solar power policy
• 2000 MW (in phased manner) by 2021 i.e. 3%
of solar energy out of total projected
consumption.
o Grid connected projects - 1600 MW.
− Projects by land owning farmers - 300
MW.
− Projects under REC mechanism,
captive/group captive, IPPs – No limit.
− Projects under bundled power
− Projects selected by competitive bidding
(capacity > 3 MWp)
o Grid connected rooftop projects – 400 MW
by 2018.
o Rooftop solar to be promoted; net-metering
provisions included.
Karnataka - Supporting Renewable Initiatives • 2015
KREDL
Key initiatives.
•
GoK encourages energy-efficient design standards
for energy generation, maximizing natural light entry,
options that provide heat insulation including grid tied
building integrated PV (BIPV)
•
Amendments t0 building bye laws in respect of FAR
(Floor Area Ratio) to exempt FAR in respect of
additional floor area created under solar PV panels.
•
Policy supports deployment of solar powered
irrigation pump sets.
•
Solar parks. Development of solar parks helps to utilize
uneven waste land for power generation.
•
GoK contemplates to create private land banks owned by
farmers or associations for development of solar projects
on long term lease up-to 30 years at lease rates.
•
Grid tied canal corridor projects.
•
Grid connected “solar with other renewable
hybrid projects”. To maximise existing project
infrastructure. Hybrid projects having minimum 25% of
overall generation coming from respective generation
sources shall be promoted through this policy.
February 2015
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Section 2 – One State, many investment opportunity.
Incentives & support to solar power projects.
• Time bound permissions to acquire land
under section 109 of land reforms act
and deemed conversion of lands acquired.
• Time bound clearance for evacuation
approval from KPTCL.
• Reduction of supervision charges by
KPTCL/ESCOMs from 10% to 5%.
• Exempted for obtaining clearance from state
pollution control Board.
(1)
Fiscal incentives
o Developers can avail tax concessions in
respect of Entry Tax, Stamp Duty
and Registration as per industrial
policy of GoK.
o Measures to exempt VAT: The Value
Added Tax applicable on various
Renewable Energy Equipment's,
Instruments & inputs required for
establishment of Solar Power Project
shall be considered for applicable VAT
reimbursement.
o Government of India incentives:
Concessional Excise Duty & Customs
Duty exemptions are allowed to project
developer by Ministry of New &
Renewable Energy.
Karnataka - Supporting Renewable Initiatives • 2015
KREDL
February 2015
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Section 2 – One State, many investment opportunity.
Incentives & support to solar power projects.
Solar roof top PV systems and net
metering .
•
Solar Roof Top PV systems can be installed
on residential /commercial / industrial
buildings in the state.
•
Excess Generated energy can be fed to the
grid with net metering
•
Attractive Tariff for roof top solar:
o Rs. 9.56/ - Without Subsidy
o Rs . 7.20/ - With Subsidy
(2)
Surya Raitha Scheme for Promoting Solar
Irrigation Pumpset.
o To promote adoption of Solar PV pumpset
by farmers, GoK has announced Surya
Raitha scheme for Solar PV irrigation
pumpset.
o This scheme is applicable for IP sets to the
extent of 10HP capacity. Net-metering
concept for rooftop solar power as per
KERC order is being adopted for this
scheme.
o For investment farmer can avail soft loan
from banks and subsidy from MNRE.
Karnataka - Supporting Renewable Initiatives • 2015
KREDL
February 2015
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Section 2 – One State, many investment opportunity.
Incentives & support to solar power projects.
(3)
Solar Parks
o The Solar Parks are to be developed in
private dry lands/waste lands which will
provide plug and play facility for
developers.
o A MoU has been signed on 07.01.2015
between SECI and KREDL for
development of 2 solar parks of 800
MW each in Karnataka.
o 11,000 acres of land has been identified
at Pavagada Taluk in Tumkur District.
Land Document verification is under
process.
Karnataka supports the
development of solar parks and
provides incentives/ concessions
to developers as per MNRE /
SECI guidelines.
2 x 800 MW solar park for
development.
o Land lease rate will be finalised after
negotiation.
o Promotion of distributed generation
through small solar parks (Min 100 acre)
Promotion of integrated solar parks.
Karnataka - Supporting Renewable Initiatives • 2015
KREDL
February 2015
9
Section 2 – One State, many investment opportunity.
2. Wind power
• Karnataka is one of the wind-rich states in
India and has a potential around 14 GW.
Currently a capacity of 2.6 GW has been
installed in the state.
• The capacity addition in state has been
quite stable of around +250 MW/annum
in the last 3 years.
• During the Financial year 2014-15, it was
targeted to achieve 350 MW Wind Power
Project in the State, of which 250 MW has
been commissioned.
Karnataka Wind capacity (MW)
450
3000
400
2615
2500
2365
350
2213
300
1726
250
1500
1472
200
150
2000
1932
1327
1011
1000
100
500
50
• Karnataka introduced preferential tariff
framework in 2004, a key enabler with a
tariff of Rs 4.20/kWh the state is one of
the preferred destination for wind power
projects in the country.
Karnataka - Supporting Renewable Initiatives • 2015
KREDL
0
0
FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15
Capacity added - Wind (MW)
Total capacity - Wind (MW)
February 2015
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Section 2 – One State, many investment opportunity.
A 30GW* estimate at 100mtr hub height, opens up strong
investment opportunity in wind power projects.
WPD > 200 W/m2 at 100 and 120 mtr hub height
• Independent study, identifies various wind
rich locations in the state (Bellary,
Chitradurga, Chamrajnagar, parts of
Kolar, Chikballapur, Hassan, Haveri,
Gadag, Koppal and Bijapur), estimating
over 30GW potential.
• With the simplification of land acquisition
and conversion process, expedition of
forest clearances, industrial status to wind
power projects.
Source: C-STEP
* C-STEP estimate
Karnataka - Supporting Renewable Initiatives • 2015
KREDL
February 2015
11
Section 2 – One State, many investment opportunity.
3. Small Hydro projects
• Karnataka state has high development and
dependency on Hydel power which
contributes to around 28% of state
generation.
• Karnataka state is endowed with small
hydro power potential estimated to be
about 3000MW, of which only 25% has
been harnessed so far.
Karnataka, Hydro capacity (MW)
160
900
140
785 800
742
120
578
100
615
650
600
500
80
411
• A tariff of Rs 4.16/kWh is one of the best
in the country for a high PLF region.
700
701
428
400
60
300
40
• With the simplification of land acquisition
and conversion process, expedition of
forest clearances, industrial status to SHP
projects, Land lease for 30 yrs+ (forest
and Govt. land), MNRE subsidy up to Rs.
1 Cr / MW (for SHP).
Karnataka - Supporting Renewable Initiatives • 2015
KREDL
200
20
100
0
0
FY 08 FY 09 FY 10 FY 11
Capacity added - Hydro (MW)
FY 12 FY 13 FY 14 FY 15
Total capacity - Hydro (MW)
February 2015
12
Section 2 – One State, many investment opportunity.
4. Biomass and Cogen power
• Simplified land acquisition and conversion
process, industrial status, and tariff of Rs 250
4.83/kWh for Cogen and Rs
5.15/kWh for biomass based projects
200
is one of the best in the country.
Karnataka Biomass and Cogen capacity
(MW)
1400
1145
1200
1145
1069
1000
• GoI and GoK offer various exemptions and 150
incentives like Central excise duty
exemptions, Tax holiday, Customs Duty
exemption, and VAT reimbursement up to 100
50%.
888
800
663
84
388
532
90
90
700
91
93
103
113
113
600
400
50
200
0
0
FY 08 FY 09 FY 10
Karnataka - Supporting Renewable Initiatives • 2015
KREDL
FY 11
FY 12 FY 13 FY 14 FY 15
Capacity added - Cogen (MW)
Capacity added - Biomass (MW)
Total capacity - Biomass (MW)
Total capacity - Cogen (MW)
February 2015
13
Section 2 – One State, many investment opportunity.
Summary …
Investor friendly state for renewable energy projects
Amendments to
“Renewable energy policy”
to attract investments in
SHP, Wind, Biomass and
Co-generation projects, to
accelerate the capacity
addition plans in the state.
Industry status to RE
projects, simple land
conversion and forest
clearance, attractive
Feed-in-Tariffs
promote wind , SHP,
Biomass & Co-gen power
projects.
Open bid process &
competitive tariff for solar
PV projects;
Industrial friendly
regulations support open
access projects with waiver
of open access charges ,
loss & 100% banking for
solar projects.
Karnataka - Supporting Renewable Initiatives • 2015
KREDL
Attractive tariff for Net
metering & roof top solar;
Amendments to building
bye laws for Floor Area
Ratio (FAR) exemptions
driving the growth of roof
top solar PV project
investments.
Central excise duty
exemptions, Tax holiday,
Customs Duty exemption,
and upto 50% VAT
reimbursement.
February 2015
14
Thank You
Web Link: www.kredlinfo.in
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Karnataka RE Policy Teaser – 13.02.2015