Ministry of New and Renewable Energy Government of India 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 GDP Composition by Industry 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* 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 Sources: http://data.worldbank.org/indicator/NY.GDP.MKTP.CD https://www.cia.gov/library/publications/the-world-factbook/fields/2012.html http://www.imf.org/external/pubs/ft/weo/2014/01/weodata/index.aspx *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 energy scenario Indian Power Sector Power Installed Capacity = 253.390 GW As of 31st August 2014 Thermal 176,118.6 MW Hydro 40,798.8 MW Nuclear 4,780 MW Renewable 32,307.71 Total 254,005.1 MW Indian energy scenario India’s 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

Renewable Power Capacity 4 Renewable Power Capacity Power Installed Capacity = 32.308 GW As of 31st August, 2014 Wind 21,692.98 MW Small Hydro 3,826.18 MW Solar 2,743 MW Biomass 4,045.55 MW Total 32,307.71 Renewable Power Projects Potential Resource Potential (MW) Cumulative achievement Wind 49,500(50m hub height) 102,800(80m hub height) 21,692.98 Small Hydro(up to 25MW) 19,700 3,826.18 Biomass including bagasse cogeneration 22,500 4,045.55 Solar 50MWp/km2 2,743MW

India’s Energy Challenge In next 12 years India’s electricity requirement to grow 2.5 times Peak shortage of 2% and energy shortage of 5.1% is expected(2014-15) ** Shortage Access Security Climate Change Demand 300 Million people did not have access to electricity as per the 2011 census * Climate Change is also an important issue A general introduction to Indian Energy Scenario. Self explanatory in nature.   Introduce the viewer to the energy gap prevalent in India, all areas of Shortage, Access, Security, Need for action for Climate Change and also Demand Management India was dependent on oil imports for 71% of its demand in 2012* *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 Power restructuring and national guidelines on tariff, inter-connection and third party sales Electricity Act 2003 NEP, 2005 SERC to determine preferential tariff Promote private sector participation in RE Tariff Policy,2006 Discom shall fix RPO Discom to procure RE power through competitive bidding NAPCC guidelines CERC RE Tariff Regulation and JNNSM guidelines REC Regulation JNNSM Phase II guidelines

Clean Energy Investment so far… Clean energy investment, 2013, $billion Asset finance Public Market VC/PE Total Solar 0.9 - 0.01 1.0 Bio-fuels 0.03 SHP 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.

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.

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 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 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 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

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)

Tax & Regulatory Incentives Details Income tax Holiday 100% for 10 consecutive years - MAT @ 20% to apply Accelerated depreciation Accelerated depreciation @ 80% on solar assets Additional depreciation @ 20% on new plant/machinery in the 1st year Deemed export benefits Available to specified goods manufactured and not actually exported Advance authorization from Directorate General of Foreign Trade Deemed export drawbacks Exemption/return of Terminal Excise Duty Service tax based on negative list Certain services are exempted from service tax Services of transmission or distribution of electricity by an electricity utility Customs and Excise Laws Various duty concessions and exemptions to RE Sector Reduced VAT Certain States allow reduced VAT rates (5%) on RE projects Additional one-time allowance Available @15% in Budget 2014 on new plant and machinery Tax-free Grants Grants received from the holding company engaged in generation, distribution or transmission of power

Non-Tax Incentives Incentive Details Feed-in-tariffs When renewable generators sell to state utilities under the MoU route Rates decided by the CERC and the SERC Rebates Available on the manufacturing of solar and wind components Targeted at specific types of renewable energy technology Include subsidies and rebates on capital expenditures Favourable land policies By various state governments for renewable development Reduce capital costs and favour ease of land allocation Government R&D programmes Improve renewable energy technologies Lead to growing performance, importance and reducing costs

FDI: Foreign Direct Investment 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

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 India’s commitment towards development and up-scaling of RE to meet its energy requirement while taking care of the environment

Conference Plenary session: Technical & breakout sessions Inauguration by Hon’ble 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 industry’s 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 Rent for exhibitors Bare space :- 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

THANK YOU | Presentation Title | Presenter Name | Date | Subject | Business Use Only