17th Renewable Energy Summit K S Popli Chairman and Managing Director Indian Renewable Energy Development Agency Ltd. (New Delhi, India) 14th February, 2018I New Delhi

Target (2022): 175 GW Mission 175 GW by 2022 Solar 100 GW Wind 60 GW India made a commitment in Paris Climate Agreement To reduce emission intensity of the economy and For having at least 40% electric power installed capacity from clean energy sources by the year 2030. Towards this an ambitious target of 175 GW by 2022 announced in 2015: Target (2022): 175 GW Sector Potential (GW) (As on date) Installed (GW) Wind 302 32.84 Solar 750 16.07 Small Hydro 20 4.41 Biomass incl bagasse Cogen. 23 8.41 Total 1095 62.84 Solar 100 GW Wind 60 GW Bio Energy 10 GW Small Hydro 5 GW As on 31.12.2017

Mission 100 GW Solar by 2022 Projects commissioned till 31.01.2018: Capacity installed up to March 2017 : 12.28 GW Capacity installed during 2017-18 so far : 6.17 GW Total capacity as on 31.1.2018 : 18.45 GW Based on tenders floated an additional 3.5 GW Capacity expected by March 2018 Total expected Solar capacity up to 31.03.2018 : 22 GW

Plan for 2017-18 Already bid out : 11,161 MW February, 2018 : 5,000 MW Till November, 2017 3,866 MW December, 2017 5,585 MW January 2018 2,210 MW February, 2018 : 5,000 MW SECI 3,000 MW NTPC 2,000 MW March, 2018 : 6,000 MW NTPC 3,000 MW Total : 21,161 MW PPAs of 3,276 MW have already been signed. NPTC is expected to increased the capacity from 5,000 MW to 10,000 MW SECI has invited EoI to install 10 GW of floating solar power plants capacity in phased manner in next three years. 15 parties have shown interest.

Trajectory for coming years Proposed bids during the coming period: 2017-18 : 20 GW (11.16 GW already bid out) 2018-19 : 30 GW 2019-20 : 30 GW Total (Including plants commissioned till 31.3.2018): 102 GW

2018-19 Solar Plan Tender Capacity ( MW) Tender to be brought by SECI – 3,000 MW each in May, July, September, November, January, 2018 & March, 2019 18,000 Tenders under CPSU Scheme – Tenders by September, 2018 3,000 Tenders under KUSUM * Scheme – Tenders by December, 2018 Tenders by NTPC – 5,000 MW by September, 2018 and 5,000 MW by February, 2019 10,000 TOTAL 34,000 * Kisan Urja Suraksha evam Utthaan Mahaabhiyan (KUSUM)

Solar - Manufacturing Base To boost manufacturing, the government has sought EoI for 20 GW of solar-generation capacity by companies ready to set up manufacturing facilities in India. 30 companies have submitted EoI. India’s total module manufacturing capacity is estimated at 8.4 GW and Solar Cell at 3.2 GW. About 88% of all module requirement in India is met through imports. The GoI, together with state governments, is offering several incentives for manufacturing modules in India – including capital subsidy, operating cost subsidy and export incentives – under different policies

Wind Power Change in tariff regime from FIT to bidding route in 2017 Wind has the highest share amongst RE. Globally out of 921 GW of total RE capacity wind is 488 GW (53%) In India Wind Power installed capacity is 32.8 GW (around 52%) of total RE capacity of 62.84 GW. India stands 4th in terms of wind power installed capacity (China, USA and Germany) Change in tariff regime from FIT to bidding route in 2017

Tariff Discovered Rs/Unit Wind Auctions Capacity (GW) Tariff Discovered Rs/Unit Status SECI – I 1 3.46 Completed SECI – II 2.64 / 2.65 SECI – III 2 E-revers bidding expected by Feb 15 Tamil Nadu 0.5 3.42 Gujarat 2.43 Maharashtra Bid floated SECI –IV Total 7.5 In pipeline – Rajasthan, Karnataka & SECI -V Off-Shore Wind GoI is contemplating off-shore wind programme in the coming years to take advantage of huge potential for off-shore wind in India. As per the meso-scale mapping studies, there is a potential of 75 GW in Gujarat and 60 GW in Tamil Nadu. First LiDAR to monitor wind conditions at sea is installed Gujarat. NIWE to take clearances for evacuation

Target for 2018-19 and 2019-20 10 GW tenders each year. 2500 MW tenders during months of June, September, December and March.

Wind - Manufacturing Base Manufacturing capacity around 10 GW per annum 21 manufacturers with 54 models Indigenization over 80% Cost of Indian wind turbines among lowest in the world

Status of other Renewable Energy Sources Biomass Power and Cogeneration Target by 2022 : 10,000 MW Achievement : 9,266 MW (January, 2018) ~ 800 MW in next 4 years. The current availability of biomass in India is estimated at about 500 million metric tons per year. Estimated surplus biomass availability at about 120 to 150 million metric tons per annum covering agricultural and forestry residues Potential of about 18,000 MW Biomass power & 7,000 MW additional Potential - Bagasse cogeneration in the country’s 550 sugar mills. Small Hydro Power (SHP) Potential : 20,000 MW Target by 2022: 5,000 MW Achievement: 4,458 MW (as on 31.1.2018) ~ 600 MW in next 4 years Other New RE Technologies/ Focus Areas Waste to Energy Projects Solar - Wind Hybrid Projects

Renewable Energy Investment –Global vis-à-vis India Total Global investments in RE was $333.5 Billion in 2017 (up 3% from 2016 levels) Reduction in technology costs, raw material costs, improved technology, conducive policy environment, better financing structuring of projects have resulted in low capital costs over the years

175 GW RE plan by 2022 entails investment of Approx Rs. 5,60,000 Crore Funding Requirements To achieve the target of 175 GW from present ~63 GW of renewable energy, approximately Rs. 5,60,000 Cr needed over the period of next 4- 5 years (until 2022) Recently, more and more Bankers/Financial Institutions have started financing Renewable Energy Projects Green/Masala bonds has been a successful financial instrument for investors to raise funds – Bond market has increased from US$ 42 billion in 2015 to US$ 92 billion in 2016. It is expected that bond market would have touched US$ 120 billion in 2017. Recently, IREDA has successfully raised Rs. 19.5 billion through a 5 year rupee-denominated green bond at the tightest ever pricing Several Multi-Lateral / Bi lateral Agencies like World Bank, KfW, Germany, ADB, the New Development Bank (NDB) have also been extending Lines of Credit in funding Indian RE Sector With year on year reduction in technology costs, raw material costs, improved technology, conducive policy environment, better financial structuring of projects and Assuming 10-20% yearly increase in investments, it may be said that India can easily mobilize the requisite funds 175 GW RE plan by 2022 entails investment of Approx Rs. 5,60,000 Crore Debt (70%) Equity (30%) (~ Rs. 3,92,000 Crores) (~ Rs. 1,68,000 Crs)

Amendment in Electricity Act & Tariff Policy The Government is considering amendments in the Electricity Act to provide further impetus to growth of energy sector, viz: Electricity Act Separation of carriage and content business State to prepare a roadmap to segregate distribution and supply wings of the DISCOMs Stricter enforcement of RPO Making tariff policy to keep cross subsidy component within 20%. Service obligation on part of DISCOMS to ensure 24X7 power supply. Tariff Policy To disallow AT&C losses of beyond 15% from being recouped via higher tariffs. The move will force the DISCOMS & State Govts to lower AT&C losses Push DISCOMS to reduce pilferage and theft of electricity.

India’s Energy Storage Market To address the challenges of large scale integration of RE into the grid, Storage technologies would play a critical role India’s energy storage potential is expected to reach 25 GW by 2032 primarily driven by investment in RE Key growth drivers: Integration of 175 GW of renewable energy sources by 2022 Today the average storage cost is around US$ 250 / kWh which is expected to touch US$ 100 /kWh in next 3-4 years. Falling costs, improved performance Mandatory use of RE in telecom towers (as mandated by TRAI) Indian grid-scale storage market is lagging behind countries like the US, China, South Korea and Japan since it is still awaiting installation of its first megawatt scale battery energy storage project. The government plans to shift to an all-electric fleet by 2030 which will boost the storage market.

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