1. Renewable Energy in India: Current Status, Outlook & Investment Opportunities
Ministry of New & Renewable Energy &
ITP & ES Division, Ministry of External Affairs
Draft

2. Renewable Energy: Globally and India’s position–
Renewable Energy: Globally and India’s position
Global RE installed capacity of 942 GW
Global Wind: 370 GW and India 5th with GW
Global Solar: 179 GW and India 11th with 4 GW
*As on Jan 2015, IRENA RE status report 2015 and Global Wind Energy Council
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE 2

3. Present Power Scenario of India
19 April, 2018 –
Present Power Scenario of India
Overview
India’s installed capacity is GW (As on December 2015).
India has RE capacity of 38,821 MW (as on Dec 2015) which accounts for 13.4% of the installed power capacity
Current share of renewable energy (in energy produced) is 7%
Wind contributes to 64% of the installed Renewable Capacity
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE
*Source: MNRE, GoI ; CEA Statistics 3

4. RE in India: Status and Revised targets–
RE in India: Status and Revised targets
38821 MW
9389MW
% IN BAR chart on final pillar
Total renewable capacity (Only small hydro)
164.1
Capacities in MW
Source
Installed capacity by end of 11th Plan
(March 2012)
Current installed Capacity (Jan 2016)
Target as per 12th Plan (March 2017)
Revised Targets till 2022
Solar Power
941
4879
10,941
1,00,000
Wind power
17,352
25088
32,352
60,000
Biomass Power
3,225
4550
6,125
10,000
Small Hydro
3,395
4177
5,495
5,000
TOTAL
24,914
37010
54,914
1,75,000
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE 4

5. Support Mechanism for Renewable Power In India–
Support Mechanism for Renewable Power In India
Introduced by almost all states for RE technologies
Feed in Tariffs
States have formulated RE policies and have added significant capacities
Key instrument for success of wind
Also exists for of solar, biomass projects
Accelerated Depreciation (AD)
State RE Policies
Support for RE
Renewable Purchase Obligation (RPO)
RPOs mandated by the Electricity Act 2003 and National Tariff Policy
Renewable Energy Certificate (REC) mechanism launched to fulfil RPOs
High demand supply energy gap
Power shortage prevails and Energy gap is expected to increase
Exemptions and other incentives
Excise & Custom duty exemptions for most of the Equipment, Machinery etc.
10 year tax holiday
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE 5

6. FDI: Foreign Direct Investment–
Key incentives
Incentive
Details
Income tax Holiday
100% for 10 consecutive years - 20% to apply
Accelerated depreciation
Accelerated 80% on solar assets
Additional 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 exemption
Certain services are exempted from service tax
Customs and Excise Laws
Various duty concessions and exemptions to RE Sector
Reduced VAT
Certain States allow reduced VAT rates (5%) on RE projects
Tax-free Grants
Grants received from the holding company engaged in generation, distribution or transmission of power
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
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 offer guidance on partners
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE 6

7. Wind energy across states–
Wind energy across states
Current Installed capacity of MW
According to CWET, the wind power potential in India at 50 m hub-height is estimated to be 49,130 MW and at 80 m hub-height is estimated to be 1,02,788 MW
3053 MW
3582 MW
568 MW
4370 MW
Growth path
60000 MW
913 MW
17352 MW
22645 MW
32352 MW
2549 MW
35 MW
7394 MW
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE 7

8. Solar Energy across states–
Solar Energy across states
Solar Resource
Solar:
5130 MW (January 2016)
200 MW
12 MW
0.3 MW
13 MW
1264 MW
140 MW
10 MW
1024 MW
16 MW
679 MW
12 MW
5 MW
73 MW
379 MW
67 MW
342 MW
357 MW
104 MW
12 MW
419 MW
India has potential for 748 GW
(considering deployment on 3% of wastelands)
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE 8

9. Plummeting cost of power from solar–
Plummeting cost of power from solar
Bidding tariffs for solar projects have been declining due to drop in capital costs and competitive bidding
Lowest tariff quoted in Rajasthan: Rs. 4.34/KWh ($ cent 6.45) for 70 MW from Fortum
Lowest tariff quoted in Andhra Pradesh: Rs. 4.63/KWh ($ cent 7.02) for 500 MW from SunEdison
Rs. 4.63/KWh ($ cent 7.02) for 350 MW from SB Group
Lowest tariff quoted in Madhya Pradesh: Rs. 5.05/KWh ($ cent 7.65) for 50 MW from Sky Power
Lowest tariff quoted in Punjab: Rs. 5.17/KWh ($ cent 7.71) for 50 MW from Today Homes
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE 9

10. –
20 GW Solar park
26 Parks (20 states) with capacity 17,418 MW approved. Subsidy of 30% provided for infrastructure
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE 10

11. Rooftop: Target to achieve 40 GW grid tied rooftop–
Rooftop: Target to achieve 40 GW grid tied rooftop
Status
122 MW Installed capacity
1720 MW Projects approved (in Principal [Potential for 124 GW exists]
Target
40 GW by 2022 of which 10 GW during to
Current support
Subsidy of 30% of capital cost (except for private, Industrial & commercial)
Promotional measures:
14 States have rooftop provisions in their Solar Policy and 20 States/UTs have notified regulations
Rooftop included under Integrated Power Development Scheme and guidelines issued
Guidelines issued to include rooftop under housing loan and banks have issued instructions
Central Electricity Authority (CEA) has notified technical standards for connectivity and metering
A grant of INR 50 Billion ($ 757 Million) has been approved to support 4200 MW rooftop projects
$ 2 billion line of credit through KFW, WB and ADB for rooftop projects
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE 11

12. Opportunities for global players–
Opportunities for global players
Project Developer
Opportunities for global players to develop portfolio in India
Target to install 175 GW RE by 2022
Fixed feed-in-tariff for wind and competitive bidding in solar
Manufacturing
Current Module manufacturing: MW
Current Cell manufacturing: MW
Push for “Make in India”
MOUs signed between global manufacturers and Indian developers 1 2 3 4
Opportunities in solar in India
Financing
Investment to the tune of $ 135 billion required in RE sector and $ 75 billion in solar by 2022
Govt. of India keen to work on new mechanism like green bonds, innovative hedging, Infra bonds, etc.
EPC
A lot of new entrants in Market, requiring EPC
Many Govt. companies have signed Green energy commitments and need EPCs
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE 12

13. –
Financing
175 GW RE plan entails investment of Approx. $ 140 billion (Rs. 8,50,000 Crore)
Debt (70%)
$ 98 Billion (Rs. 6,00,000 Crore)
Equity (30%)
$ 42 Billion (Rs. 2,50,000 Crore)
Multilateral and Bilateral
NBFCs
Commercial banks
MNRE discussing innovative financial instruments to reduce cost of debt
Green bonds and infrastructure debt funds (IDFs)
Dollar denominated tariffs
Pension funds, crowd funding, yield companies
Hedging risk fund to allow cheaper financing
MNRE in touch with various multilateral/bilateral FIs like JICA, KFW, ADB, World Bank, EIB, AFD, US EXIM, etc. to avail line of credit
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE 13

14. Proposed Dedicated Renewable Energy Fund For India–
Proposed Dedicated Renewable Energy Fund For India
Govt. of India (through IREDA) proposes to set up USD 1 to 1.5 bn fund for renewable energy
Govt. owned entities such as PFC, REC, NTPC and IREDA have in principle agreed to invest USD 315 million into the fund as Anchor Investors
Fund will be managed by a reputed international fund manager whose selection is being undertaken through an ICB process
Received prima facie interest from following large fund managers to act as Investment Manager (GP) for proposed fund:
Brookfield
Macquarie
Blackrock
KKR
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE 14

15. Proposed Structure of the Fund
To be setup as a ‘Category I’ Alternative Investment Fund (AIF) under SEBI (Alternative Investment Funds) Regulations, 2012.
Independent trustee company will be trustee.
Anchor Investors and Other Investors would be LPs in the fund and would have role on Limited Partner Advisory Committee (LPAC).
LPAC would not be decision making body and all investment decisions would be made by Investment Manager.

16. Renewable Investment globally vis-à-vis India–
Renewable Investment globally vis-à-vis India
Investment in Europe decline and stay constant in US, Asia & South America witness highest growth
Investment in India’s renewable industry increased more than 22% in 2015 to reach $10.9bn
Rise largely attributed to scale, where investment reached $5.6bn, up 80% from $3.1bn last year
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE 15

17. India as an Investment destination–
India as an Investment destination
387 investors submitted “Green Energy Commitment” to develop 272 GW
30 Banks and Financial Institutions have given commitments to finance projects aggregating to 70 GW
MNRE Target
Commitment made during RE-Invest
175 GW
272 GW
$150 Billion
$ 57 billion to support approx. 72 GW
Global
In second quarter of 2015, Global investment in clean energy was $73.5bn , down0.2% on Q
For the first half of 2015, Global investment in clean energy was $127.9bn, down 3% on H
India
India invested $2.2bn, up 75% on the same quarter last year.
India remains on track to cross $10 billion in 2015
Interest in India from domestic and foreign investors has grown in the last six months
India intends to reduce the emissions intensity of its GDP by % by below its 2005 level
In the January-June period, India has surpassed US and China as the biggest FDI destination in the world , garnering $31 billion.
Current Status, Outlook & Investment Opportunities in RE Sector • MNRE 16

18. Thank You