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*
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;

*
 Indian Power Sector
Power Installed Capacity = 253.390 GW
As of 31st August 2014

Therma Hydro Nuclea Renewa Total

l 40,798. r ble 254,005.
176,118 8 MW 4,780 32,307.7 1 MW
.6 MW MW 1
MW
Indian energy scenario
Indias 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

Renewable Power Capacity

Power Installed Capacity = 32.308 GW
As of 31st August, 2014

Wind Small Solar Biomass Total

21,692.9 Hydro 2,743 4,045.55 32,307.71
8 MW 3,826.18 MW MW MW
MW

Renewable Power Projects Potential

Resource Potential (MW) Cumulative
achievement
Wind 49,500(50m hub height) 21,692.98
102,800(80m hub height)
Small Hydro(up to 25MW) 19,700 3,826.18
Biomass including bagasse 22,500 4,045.55
cogeneration
Solar 50MWp/km2 2,743MW 4
 Indias Energy Challenge
In next 12 years Indias Peak shortage of 2%
electricity requirement to and energy shortage
grow 2.5 times of 5.1% is
expected(2014-15) **

300 Million people

Climate Change is did not have access
also an important to electricity as per
issue the 2011 census *

India was dependent on

oil imports for 71% of its
demand in 2012* 5
Source: http://www.eia.gov/countries/cab.cfm?fips=in; Source: http://www.cea.nic.in/reports/yearly/lgbr_report.pdf
* **
Renewable Energy: Historic Trends
and Growth Enablers
JNNSM Phase II
Tariff Policy,2006 guidelines
Discom shall fix
RPO
CERC RE Tariff
Discom to procure
Regulation and
RE power through
JNNSM
competitive bidding
Electricity Act 2003 guidelines
NAPCC
guidelines

REC Regulation

NEP, 2005
SERC to determine
preferential tariff
Promote private
sector participation in
Power restructuring and RE
national guidelines on
tariff, inter-connection
and third party sales

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 Clean Energy Investment so far
Clean energy investment, 2013, $billion
Asset Public
VC/PE Total
finance Market
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
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.
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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 1000MW US$1.8 billion

Aggregate 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 Accelerated depreciation @ 80% on solar assets
depreciation Additional depreciation @ 20% on new plant/machinery in the 1st year
Available to specified goods manufactured and not actually exported
Deemed export Advance authorization from Directorate General of Foreign Trade
benefits Deemed export drawbacks
Exemption/return of Terminal Excise Duty
Service tax based on Certain services are exempted from service tax
negative list Services of transmission or distribution of electricity by an electricity utility
Customs and Excise
Various duty concessions and exemptions to RE Sector
Laws

Reduced VAT Certain States allow reduced VAT rates (5%) on RE projects

Additional one-time
Available @15% in Budget 2014 on new plant and machinery
allowance
Grants received from the holding company engaged in generation, distribution or
Tax-free Grants
transmission of power
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 Non-Tax Incentives
Incentive Details

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

Available on the manufacturing of solar and wind components

Rebates Targeted at specific types of renewable energy technology
Include subsidies and rebates on capital expenditures

Favourable land By various state governments for renewable development

policies Reduce capital costs and favour ease of land allocation

Government R&D Improve renewable energy technologies

programmes 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 Indias commitment towards
development and up-scaling of RE to meet its energy
requirement while taking care of the environment
 Conference
Plenary session:
Inauguration by Honble 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 industrys
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:
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
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
25 | Presentation Title | Presenter Name | Date | Subject | Business Use Only