ALTERNATIVE ENERGY-INDUSTRY PROFILE

Prepared byPranjal Saraswat B.Tech( IIT Guwahati)

ALTERNATIVE ENERGY
Increase in energy demand rapid economic growth in developing economies, especially China and India

Since 2005, the energy and climate change agenda has taken
center stage in the domestic and international policy arena.
UN Climate Change Conference, 2009- India pledged to reduce carbon emissions by 2025% below 2005 levels by 2020 Renewable energy - Energy produced and/or derived from sources that can be renewed indefinitely, such as hydro, solar and wind power, or sustainably produced, such as biomass Renewable 10.73% Hydro (large hydro) , 21.73% Nuclear , 2.78%
Power Sources-India

World Energy consumption 1980-2030

Source: Energy Information Administration(EIA)

Total Power Installed Capacity, India: 171 GW ( Feb 2011) Thermal , 64.75%

INDIAs RENEWABLE ENERGY NEEDS

Increasing energy needs More than 100,000 villages (17%) without electricity - Dire need for distributed energy generation Peak deficit over 12% To help India increase its energy security and to lower its carbon intensity Significant reliance on oil as a standby source, increasing the import bill, and resulting in higher pollution Important tool for spurring regional economic development

Solar and Hydro Power

Additions to renewable energy capacity, 1993/942009/10. Source-MNRE

PRESENT SCENARIO

India has 150GW of renewable energy potential and ranks fifth in the world in total installed renewable energy capacity ( World Bank ,2010) Present installed renewable energy generation capacity- 18 GW (as of February,2011) Targetso Increase the capacity to generate renewable energy by 40GW to 55GW by the end of the 13th Five-Year Plan (2022) o National Action Plan on Climate Change (NAPCC)- 1 % annual increase in renewable energy generation o Jawaharlal Nehru National Solar Mission (JNNSM)- Ambitious target of adding 1GW of capacity between 2010 and 2013. It seeks to increase combined solar capacity from 9MW in 2010 to 20GW by 2022 o Government of India plans to provide universal access and to increase per capita consumption to 1,000 kWh by 2012
Resource Wind Power Small hydro power Bio power Solar power Total Estimated Potential (MW) 48,500 15,000 23,700 2030MW/sq.km Up to 9th Plan During 10th Plan 5,427 538 795 1 6,761 Targets for 11th Plan 9,000 1,400 1,780 50 12,230 During 11th Plan up to Jan,2011 6,090 977 1,488 29 8,584 Total capacity as on 31.01.2011 13,184 2,953 2,673 32 18,842

1,667 1,438 390 2 3,497

Plan-period-wise capacity addition (MW)in grid connected renewable energy based power generation installed capacity Source: Ministry of Power

 Quantified targets for Twelfth Plan period (2012-17)

YEAR
Capacity to be developed through competitive bidding Capacity developed through other alternatives (GBI, APPC+REC, Group Captives) Total capacity targets for grid connected renewable power

2012-13
1000 2000

2013-14
2500 1000

2014-15
3000 1000

2015-16
5000 1000

2016-17
6000 1000

3000

3500

4000

6000

7000

Development Targets for Grid Connected RE Capacity excluding Solar (MW) Source: Planning Commission

Existing regulatory framework

o Electricity Act 2003 - mandates SERCs to fix certain minimum percentages for purchase of renewable power in the area of each Distribution licensee. The Tariff Policy 2006- requires fixation by SERCs of a minimum percentage for purchase of energy from such sources taking into account availability of such resources in the region and its impact on retail tariffs National Action Plan on Climate Change 2008- It is suggested that starting 2009-10, the national renewable standard may be set at 5% of total grids purchase, to increase by 1% each year for 10 years Renewable Energy Certificate 2010- allows certificate holders to sell renewable electricity at nonpreferential tariff and sell the environmental attribute of renewable electricity through energy exchange to desirous entities

RENEWABLE ENERGY

SOLAR 20GW capacity

addition by 2022, state targets in addition
Focus on both photovoltaic (PV) and concentrated solar power (CSP), and thermal PV expected to have race ahead in the near term, CSP higher prospects post 2015 and long term Opportunities: EPCs, developers, equipment manufacturing, training and support Major players: BHELAbengoa for CSP, Tata BP, Adani Power

WIND
Fifth largest installed capacity(14GW) 50 GW by 2020 Bottlenecks : Demand supply gap in turbines widening Opportunities: Developers, turbine component manufacturing, wind energy analytics Major Players: Suzlon, Vestas, GE, Siemens, Enercon

SMALL HYDRO
Potential 15 GW Current Status 2.9GW (20% of total) Drivers : Power requirements in remote locations and availability of small hydro resources in these locations Bottlenecks :Long approval times (over 3 years), environmental clearances Opportunities: Equipment supply, especially more efficient turbines and accessories
Major Players :

BIOMASS
Total installed capacity (including cogeneration): about 2.2 GW Drivers rural power needs, small scale power needs

Bottlenecks : biomass supply chain, price of biomass

Opportunities : Technology transfer ( especially for small scale biomass), research collaboration in energy crops
Major Players : All

NHPC, SJVN , Tata power, Reliance Power

Green Energy , Clenergen India, Husk Power Systems