India Energy Congress 2013 Sustainable Sources of Energy February 2013

Contents Background Issues & Constraints Discussion Points Deloitte

Introduction Energy an important consideration for economic growth – Indian economy on growth trajectory Widening Demand Supply gap : anticipated energy shortage ~ 9.3% & peak shortage ~ 10.6% (FY 2013) Issue of climate change - India Per capita CO2 1.37 tonnes (Year 2009 - IEA) Per capita GHG emissions projections vary from 2.77 tonnes to 5 tonnes of CO2 (2030-31) Possible Options Huge untapped Renewable energy potential Coal will remain mainstay for energy supply, but clean coal technologies could assume significance Nuclear energy as an emerging alternative Source: Integrated Energy Policy, 2006 Deloitte

Policy push key to promote different options for GHG emission mitigation Renewable Energy (RE) National Action Plan for Climate Change (NAPCC) in year 2008 Target of 15% from RE by 2020 8 Separate Missions including JNNSM India's renewable energy installed capacity ~ 26.6 GW Expected to increase to 54 GW by end of 12th Plan & 99 GW by end of 13th Plan Clean Coal technologies Initiatives taken to overcome technical barriers - Both BHEL as well as NTPC now have roadmap deployment of commercial scale IGCC/Ultra- supercritical plants by 2017 New ‘Mission on Clean Coal Technologies’ under NAPCC initiated in 2012 Nuclear Energy Installed Capacity ~ 4.7 GW Additional 5.3 GW in 12th Plan period (planned) India signed Nuclear Cooperation agreements to secure fuel supply & technical assistance with key countries Deloitte

Issues & Constraints - Renewable Energy RPO Targets Introduced as per the provisions of Electricity Act 2003 - SERC initiative Issues related to effective implementation of RPO, penalties for RPO non-compliance Renewable Energy Certificate (REC) Declining trend in REC demand due to non-enforcement of the RPO targets, Lack of long term price clarity Power Evacuation Infrastructure Poor financial health of utilities Lack of adequate power evacuation infrastructure for renewable energy project sub optimal utilization of assets & back-down during peak season Financing of Renewable Projects Availability of funds Low cost financing Renewable projects perceived risky Re-estimation of resource assessment High quality resource assessments is lacking in renewable power technologies – biomass Low level of Penetration for urban and industrial application Relatively high level of cost & lack of policy & regulatory framework clarity hinders the large scale deployment Deloitte

Issues & Constraints Clean Coal Technologies Improve efficiency of combustion & sub-systems of the power plants to increase the productivity of coal Understanding economical-social- environmental benefit matrices of various technologies to make appropriate technology decisions Understanding & identification of emerging superior Clean Coal Technologies practiced worldwide suitable for Indian scenario Bridging the financing gaps Institutionalization of the policy facilitation framework of CCTs Nuclear Energy Safety aspect: recent disasters at the Fukushima NPP in Japan : ensuring robust levels of nuclear safety are in place Availability of fuel supply for long term Limited reserves & extremely low grade ores available in India Social & environmental concerns: Issues related to social & environmental impacts needs to be addressed to encourage acceptance of nuclear power project by all stakeholders Deloitte

Discussion Points – Renewable Energy Need to deliberate on the strategy adopted by Govt. of India for promotion of renewable energy in India and possible way forward to strengthen the same Possible ways to ensure that RPOs are implemented uniformly across states & they reflect the NAPCC targets Enhancing credibility of REC market mechanism to support project viability Ensuring availability of adequate financing be ensured for the development of renewable sector Need for strengthening the institutional framework for the renewable segment to ensure coordinated development of RE sector Deloitte

Discussion Points Clean Coal Technologies Key lessons from the various initiatives for clean coal technology testing and commercialization Possible roadmap for adoption of Advanced clean coal technologies in Indian context Nuclear Energy Overcoming concerns with regard to safety aspects of Nuclear projects be addressed Possible roadmap for nuclear power capacity addition Deloitte

Thank You Deloitte