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Renewable Energy RENEWABLE ENERGY For updated information, please visit www.ibef.org October 2020 Table of Contents Executive Summary……………….….…….3 Advantage India…………………..….……..4 Market Overview and Trends……….……..6 Strategies Adopted………….……..………12 Growth Drivers …………………...…..……14 Opportunities….……………..……………..20 Key Industry Organisations……….......…………24 Useful Information……….......…………….26 EXECUTIVE SUMMARY . In 2018, the Government of India has set an ambitious target of achieving 227 GW of renewable energy capacity by 2022 and 275 GW by 2027. These include adding 114 GW of solar capacity, 67 GW of wind power Ambitious targets and 31 GW of floating solar and offshore wind capacity by 2022. Government plans to establish renewable energy capacity of 500 GW by 2030. The renewable energy will account for 55% of the total installed power capacity by 2030. India has low conventional energy resources compared to its required energy needs driven by huge population and rapidly increasing economy. But India can harness the huge potential of solar energy as it receives sunshine most of the year. It also has vast potential in hydro power sector which is being explored across states in the northeast. Immense growth potential . As of September 2020, India had 89.22 GW of renewable energy capacity, including 36.05 GW from solar and 38.12 GW from wind power. India is expected to overachieve its Paris Agreement goals . India plans to add 30 GW of renewable energy capacity along the desert on its western borders of Gujarat and Rajasthan. The renewable energy space in India has become highly attractive for investors and received FDI inflow of US$ 9.56 billion between April 2000 and June 2020. Increasing investment . More than US$ 42 billion has been invested in India’s renewable energy sector since 2014. India ranked seventh on the EY Renewable Energy Country Attractive Index 2020. Source: EY Recai (November 2018) , Central Electricity Authority, MNRE, DPIIT, Livemint, IWTMA 3 Renewable Energy For updated information, please visit www.ibef.org Renewable Energy ADVANTAGE INDIA ADVANTAGE INDIA . India has a relatively low per capita energy Non -conventional energy received FDI and electricity consumption. Per capita inflow of US$ 9.56 billion between April electricity consumption in India reached 2000 and June 2020. 1,181 units in 2018-19. With Government’s ambitious green . As the economy grows, the electricity energy targets, the sector has become consumption is projected to reach 15,280 quite attractive for both foreign and TWh in 2,040 from the 4,926 TWh in 2012. domestic investors. Most of the demand will come from real . By 2028, India can see investment worth estate and transport sectors. US$ 500 billion in renewable energy. ADVANTAGE INDIA . Indias wa ranked fourth in wind power, fifth in solar power and fifth in renewable power . The Indian Government aims to achieve installed capacity as of 2018. 227 GW of renewable energy by 2022. India ranked seventh on the EY Renewable . Plan is to achieve universal household Energy Country Attractive Index 2020. electrification, which will be a boon to the . India has one of the lowest capital costs per power sector. MW for photovoltaic plants. Government plans to establish renewable energy capacity of 500 GW by 2030. Note: TWh - Terawatt Hour Source: Central Electricity Authority, Ministry of New and Renewable Energy, Mercom India, EY, News sources, BloombergNEF 5 Renewable Energy For updated information, please visit www.ibef.org Renewable Energy MARKET OVERVIEW AND TRENDS Renewable Energy Sources Renewable Energy Sources (RES) Other forms of Hydro Energy renewable energy Small Hydro Power Wind Power Bio-Power Solar Power (Projects ≤ 25 MW) Urban & Industrial Biomass Power Waste Power Source: Central Electricity Authority (CEA) 7 Renewable Energy For updated information, please visit www.ibef.org GENERATION CAPACITY HAS INCREASED AT A HEALTHY PACE…(1/2) InstalledVisakhapatnam Renewable port Energy traffic 1(millionCapacity tonnes)2 (GW) InstalledVisakhapatnam Renewable1 Capacity port traffic2 Breakup(million - September tonnes) 2020 100 CAGR 17.33% 90 Wind Power 89.2 80 87.0 5% 70 77.6 11% Solar Power 60 69.0 50 57.2 43% 40 45.9 Bio-Power 30 20 40% Small Hydro 10 0 FY16 FY17 FY18 FY19 FY20 FY21* . The International Energy Agency’s World Energy Outlook projects a growth of renewable energy supply to 4,550 GW in 2040 on a global basis. Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 17.33% between FY16- FY20. India had 87 GW renewable energy capacity in FY20. As of September 30, 2020, the installed renewable energy capacity stood at 89.22 GW, of which solar and wind comprised 36.05 GW and 38.12 GW, respectively. Biomass and small hydro power constituted 10.14 GW and 4.73 GW, respectively. Notes: GW- Gigawatt, 1Large Hydro power projects not included as they are not included in renewable energy targets of GOI, 2grid interactive capacity, *- till September 2020 Source: Central Electricity Authority (CEA), International Renewable Energy Agency (IRENA), MNRE 8 Renewable Energy For updated information, please visit www.ibef.org GENERATION CAPACITY HAS INCREASED AT A HEALTHY PACE…(2/2) . Power generation from renewable energy sources (excluding large ElectricityVisakhapatnam Generation port fromtraffic RES*(million (billion tonnes) units) hydro) in India reached record 127.01 billion units in FY20. The country ranks fourth in the world in terms of total installed wind power capacity. 140 . The Government of India is aiming to achieve 227 GW of renewable energy capacity by 2022, much ahead of its target 175 GW as per the Paris Agreement. 120 127.01 . Government plans to establish renewable energy capacity of 500 126.76 GW by 2030. 100 . Solar installation in India is expected to increase 360% by 2020. 101.84 . Off -grid renewable power capacity has also increased. 80 . In 2019, India installed 7.3 GW of solar power across the country, 81.51 establishing its position as the third-largest solar market in the world. 60 65.78 40 20 0 FY16 FY17 FY18 FY19 FY20 Note: RES - Renewable Energy Source, *Large Hydro power projects not included, SPV - Solar Photovoltaic System, MWeq - Megawatt Equivalent Source: CEA, Make in India, MNRE, Mercom India 9 Renewable Energy For updated information, please visit www.ibef.org SOLAR POWER GENERATION GROWTH LIKELY TO OUTWEIGH OTHER SOURCES BY 2022 . Dues to it favourable location in the solar belt (400 S to 400 N), India Top 10 state wise solar installations in India (September 2020) is one of the best recipients of solar energy with relatively abundant availability State Capacity (MW) . Growth in solar power installed capacity is expected to surpass the installed capacity of wind power, reaching 114 GW by 2022. A total of 47 solar parks with over 25 GW of combined capacity were Karnataka 7,297.93 approved in India until March 2020. In October 2019, India started working on its solar power plant in Rajasthan 5,353.24 Rajasthan, which will be the world’s largest solar plant with a capacity of 2,255 MW. Tamil Nadu 4,221.36 . The biggest solar project financed in India is the 709 MW NLC Tangedco PV plant - which is coming up at a cost of about US$ 500 Telangana 3,825.18 million. India added 2,320 MW of solar capacity amidst COVID-19 pandemic Andhra Pradesh 3,629.63 from January to September 2020. Adani Group aims to become the world’s largest solar power Gujarat 3,272.94 company by 2025 and the biggest renewable energy firm by 2030. In June 2020, Adani Green Energy won a major tender to set up 8 Madhya Pradesh 2,331.42 GW of manufacturing-linked solar energy project with an investment of Rs. 45,000 crore (US$ 6.38 billion). Maharashtra 1,874.74 . Prime Minister Mr. Narendra Modi inaugurated the 750 MW solar project set up at Rewa, Madhya Pradesh on July 10, 2020. Uttar Pradesh 1,184.10 . On July 22, 2020, 2 MW capacity solar power plant of the Western Naval Command was inaugurated. Punjab 947.10 Source: CEA, Make in India, India Solar Handbook 2017, MNRE, Mercom India, Bloomberg NEF 10 Renewable Energy For updated information, please visit www.ibef.org GROWTH IN HYDRO POWER . India has overtaken Japan, becoming the nation with the fifth largest VisakhapatnamInstalled port Hydro traffic Capacity(million tonnes) hydropower production capacity in the world with a total installed base at over 50 GW, and is only behind Canada, US, Brazil and China according to International Hydropower Association (IHA). 50.0 . India has the hydro power potential of around 145 GW, of which 45 45.0 45.4 45.7 GW is already been utilised. 45.3 40.0 . Hydro power projects in India are classified into conventional hydro projects and small hydro electric projects. Small hydel projects are 35.0 35.9 included in the Government’s renewable energy sources (RES) targets. 30.0 . In March 2019, large hydro power Projects (HPO) were declared as 25.0 part of non-solar Renewable Purchase Obligation (RPO). 20.0 . Installed capacity from large hydel projects in India increased from 35.9 GW in March 2008 to 45.69 GW in March 2020, while capacity 15.0 from small hydel plants increased four-fold to 4.7 GW in the same 10.0 period. 4.5 4.6 4.7 . A new hydro power policy for 2018-28 has been drafted for the 5.0 1.1 growth of hydro projects in the country. 0.0 . Construction of Kiru hydro project (624 MW) by Chenab Valley Mar '08 Mar '18 Mar '19 Mar '20 Power Projects Private Ltd (CVPPPL) with an investment of Rs.
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