By:

J VEERENDRA KUMAR

Dept. of Electrical Engineering

SRM UNIVERSITY

INDIAN ENERGY INDIAN ENERGY SCENARIO: Status and SCENARIO: Status and

Future ProspectsFuture Prospects

“……the time is running out…soon, there will be nothing left to burn on earth but earth itself…”

ENERGY IN INDIA: AN OVERVIEW India consumes 3.7% of the world’s commercial energy

making it the 5th largest consumer of energy globally. Total installed capacity of 2,75,911.62 MW using Non-

Renewable energy sources and 36470.64 MW using Renewable energy sources.

350 kgoe(Kg of oil Equivalent) per capita primary commercial energy consumption. 26% of world average.

Per capita electricity consumption: 600 kWhr per year. About 80% of total rural energy consumption comes

from non-commercial energy. 84% villages electrified. 44% of rural households

electrified.

INDIAN POWER SECTOR

Source: Ministry of New and Renewable Energy

2,75,911

NON RENEWABLE ENERGY CONSUMPTION TREND

ENERGY SCENARIO IN INDIA

Rapid economic development & Increasing population = High demand for Energy

A sustained 8% GDP(Gross domestic product) growth of India requires an annual increase of: a) Commercial energy supply from 3.7% to 6.1% b) Total primary energy supply from 2.2% to 5.1%

Limited supply of COAL, coupled with its poor quality, low level of technologies advancements and high environmental hazards.

Limited domestic reserves and uncertain foreign supply of hydrocarbons.

WHY RENEWABLE ENERGY FOR INDIA?

Power shortageRising Prices of Oils & GasesEcological HazardsAmple resources and sites

availableAbundant sunshineGovernment incentiveIncreased financing options

BENEFITS OF RENEWABLE ENERGY Avoid the high costs involved in transmission. Avoid distribution losses – Technical &

otherwise Avoid recurring fuel cost Boost the rural economy Encourage self help groups & self

dependence Enable village co-operatives to supply and /

or monitor distribution Make available much needed energy for

basic needs at the doorstep at affordable prices.

INSTALLED CAPACITY FROM RENEWABLE ENERGY

Source: Ministry of New and Renewable Energy

36,470

CURRENT FOCUS Promoting rural energy for productive uses

and linked social benefits Promoting renewable energy for rural

electrification and industrial applications Enhancing access of the rural poor to

affordable and sustainable energy services Supporting training and capacity building for

manufacture, local assembly and maintenance of renewable energy technologies / systems

Organizing global forum activities and providing strategic expert advice on renewable energy technologies and energy policy planning and institutional framework

RENEWABLE ENERGY DEPLOYMENTWind installation (global) 60,000 MW

(cumulative)

India’s share (and position) 23762 MW(fourth in the world)

SPV cell production (global)

31,700 MW (in 2015)

India’s share (and position) 4060 MW (seventh in the world)

Biogas plants installation (global)

27,643 MW (in 2015)

India’s share (and position) 4418 MW(second in the world)

Small hydro power (global)

18,573 MW (in 2015)

India’s share 4101 MWSource: Ministry of New and Renewable Energy

INDIA RENEWABLE POWER POTENTIALRenewable Resource

EstimatedPotential

Remarks

Wind Power 48,000 MW Sites with wind densities of 300 W/m2 or higher with 9% of assessed area available for wind farms requiring 12 ha/MW.

Biomass Power

42,000 MW 20 mha of wastelands yielding 10 MT/ha/annum of woody biomass giving 4000 kcal/ kg with system efficiency of 30% and operating at 75% PLF.

Solar Power 60,000 MW Assuming solar energy:4-6 kWhr/ m2/ day and depending upon future developments making solar technology cost-competitive for grid power applications.

Small Hydro Power

18,000 MW

Bio-Energy 24,000 MWSource: Ministry of New and Renewable Energy

COMMERCIAL ENERGY IMPORTS FOR 8% GDP

Fuel Range ofRequirement inScenarios

AssumedDomesticProduction

Range of Imports

Import (Percent)

Oil (Mt) 350–486 35 315–451 90–93

Natural Gas(Mtoe)

100–197 100 0-97 0-49

Coal (Mtoe) 632-1022 560 72-462 11-45

Source: Energy Policy Report, Planning Commission, India

INDIAN WIND ENERGY SECTOR OVERVIEW

CURRENT SCENARIO 4th largest producers of wind energy in the

world. India’s current installed wind capacity is 8.7

GW (approx. 10% of the world’s total installed capacity).

Capacity growth has been strong with a 22% CAGR over last decade.

Tamil Nadu, Maharashtra & Karnataka are the leaders in wind capacity.

INDIAN WIND ENERGY SECTOR OVERVIEWFUTURE POTENTIAL Cumulative installed capacity is expected to

reach 22 GW by 2020. Generation based subsidy of Rs 0.50per unit

recently announced for 10 years (limit of 5 MW per developer and 50 MW in aggregate).

KEY TREND IN INDIA WIND ENERGY INDUSTRY

All players in India undertaking a Dual Role – Manufacturing & Developer

Various Indian Companies are looking to enter the sector

Infrastructure Developers Electrical Equipment Manufacturers

KEY TRENDS IN INDIAN SOLAR INDUSTRYEXPANSION ACROSS THE BOARD Various existing players planning Brownfield

expansion. Huge new Greenfield facilities being planned.

KEY DRIVERS INCLUDE: Low operating costs Capital subsidy (20/25%) by government for

large semi-conductor based units (for large investments above certain limits)

Possibility of Solar Energy development locally. Public and private capital in abundant supply.

INDIAN HYDRO POWER SECTOR OVERVIEWPOTENTIAL FOR HYDRO POWER GENERATION India ranks 8th in terms of hydro-electricity

generated Potential to provide energy in remote and hilly

areas where extension of an electrical transmission grid system is uneconomical

Till now, 14 States have announced policies for setting up commercial SHP projects.

KEY POSITIVE Proven Technology Low O&M Costs High energy conversion efficiency (70%)

INDIAN HYDRO POWER SECTOR OVERVIEWKEY DRAWBACKS High gestation period High capital costs (per MW) Social Costs

FUTURE POTENTIAL Hydro capacity expected to reach 57 GW by

2012. Small hydro potential is expected close to 15 GW. MNRE has introduced subsidy schemes for SHPs

up to 25 MW. Well-established manufacturing base for full

range and type of small hydro equipments.

BIOMASS ENERGY OVERVIEW

INDIAN BIOMASS MARKET OVERVIEW

CHALLENGES Small sized Dependence on

agricultural output Insecure raw

material linkage Shortage of

equipment Lack of cheap

financing, both debt & equity

Currently, few focused biomass players

POTENTIAL 20 GW of power

may be generated from 300 MT of agro waste (currently produced)

50% currently burnt in the open

Less than 3% potential realized

Can revolutionize pace of rural electrification.

DRIVERS Agro based

economy Large,

Unexploited domestic resource

Favorably aligned regulatory environment

Simple technology

Power deficit across states

SUMMARY OF POTENTIAL RETURNS IN RE BASE GENERATION PROJECTS

Given the comparatively higher cost of generating energy from renewable sources, necessity for financial support for the industry.

Government has introduced subsidies to make returns attractive for developers.

Indicative expected returns:

Type of Project

Returns

Wind Hydro (PPA)

Hydro (Merchant)

Biomass

Solar

Costs (Rs. Cr/MW)

5-6 5-6 5-6 4-5 18-20

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