First Renewable Energy Global Investment
Promotion Meet & Expo, New Delhi, India
( RE-INVEST )
Ministry of New and Renewable Energy
Government of India
15 th -17 th February 2015

Salient features of the Indian Economy - 2013
•
Largest Democracy
•
Population of 1.24 bn.
*
• GDP:
• USD 1,876.80 bn
.
**
• Ranked 10 th globally
• Growth rate of 5%
•
A per capita GNI of USD 1,571
• Ranked 3 rd globally in terms of PPP
*
56.9%
17.4%
25.8%
Agriculture
Industry
Services
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;

Thermal
176,118.6
MW
Hydro
40,798.8
MW
Nuclear
4,780
MW
Renewable
32,307.71
MW
16.1%
Power Installed Capacity = 253.390 GW
As of 31 st August 2014
1.9%
Total
254,005.1
MW
12.7%
69.3%
Thermal
Nuclear
Hydro
Renewable
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

4
8.49%
12.52%
Power Installed Capacity = 32.308 GW
As of 31 st August, 2014
11.84%
Wind
21,692.98
MW
Small Hydro
3,826.18
MW
Solar
2,743
MW
Biomass
4,045.55
MW
Total
32,307.71
MW
Resource Potential (MW)
Wind
Small Hydro(up to 25MW)
Biomass including bagasse cogeneration
Solar
49,500(50m hub height)
102,800(80m hub height)
19,700
22,500
50MWp/km 2
67.14%
Wind
Small Hydro
Bio mass
Solar
Cumulative achievement
21,692.98
3,826.18
4,045.55
2,743MW
4

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 Shortage
Climate Change is also an important issue
Climate
Change
Security
Access
300 Million people did not have access to electricity as per the 2011 census *
India was dependent on oil imports for 71% of its demand in 2012 *
* Source: http://www.eia.gov/countries/cab.cfm?fips=in; ** Source: http://www.cea.nic.in/reports/yearly/lgbr_report.pdf
5

35000,00
JNNSM Phase II guidelines
30000,00
Tariff Policy,2006
• Discom shall fix
RPO
•
Discom to procure
RE power through competitive bidding
25000,00
Electricity Act 2003
NAPCC guidelines
CERC RE Tariff
Regulation and
JNNSM guidelines
REC Regulation
20000,00
15000,00
10000,00
Power restructuring and national guidelines on tariff, inter-connection and third party sales
NEP, 2005
•
SERC to determine preferential tariff
•
Promote private sector participation in RE
5000,00
0,00
FY 02 FY 03 FY 04
Wind
FY 05
Biomass
FY 06
Solar
FY 07
WtE
FY 08
SHP
FY 09 FY 10 FY 11
Cumulative Installed Capacity
FY 12 FY 13 FY 14
6

14
12,3
12
Clean energy investment, 2013, $billion
10
8
6
4,7
5,6
4,7
4,2
7,6
6,85
5,6
Solar
Asset finance
0.9
Public
Market
-
4
Bio-fuels 0.03
2,9
2
2
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.
SHP
Biomass
0.7
0.5
Wind 3.2
Source: Bloomberg Finance Report, 2014
-
-
-
-
VC/PE Total
0.01
-
0.01
0.02
0.1
1.0
0.03
0.7
0.6
3.3
7

th
Technology
Wind Power Projects
Target*
15000 MW
Investment required
US$15 billion
Small Hydro Projects 2100MW
Biomass based power projects 2700 MW
Grid connected Solar power projects 10000MW
Off grid solar power projects
Aggregate
1000MW
US$2.1 billion
US$2.7 billion
US$12 billion
US$1.8 billion
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.
8

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

•
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)
10

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
Service tax based on negative list
Customs and Excise
Laws
•
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
Certain services are exempted from service tax
Services of transmission or distribution of electricity by an electricity utility
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
11

Incentive Details
Feed-in-tariffs
Rebates
•
When renewable generators sell to state utilities under the MoU route
•
Rates decided by the CERC and the SERC
•
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
12

Foreign Investment
FDI: Foreign Direct Investment JV: Joint Venture
•
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
•
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
13

Making India the New Investment Destination for Renewable
Energy
A Government of India Initiative

• 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

•
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

•
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

•
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

•
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…)

•
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

•
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

•
Over 200 Indian and international large investors are expected from:
–
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

• 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 :- 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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| Presentation Title | Presenter Name | Date | Subject | Business Use Only