New & Renewable Energy

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New Renewable Energy
PRESENTATION By
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Agenda I

• Energy Scenario
• Power Reforms
• RE Imperative
• RE Scenario
• RE Policy Enablers
• RE Targets
• RE Investments
• Attractiveness

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Energy Scenario

• Power Capacity 156 GW
• Thermal - 100 GW
• Hydro - 37 GW
• Renewable - 15 GW
• Per Capita Consumption 730 units
• RE Share in Generation 4
• Energy Served Population 60
• Peak Deficit 12
• Energy Deficit 11
• ATC Losses 30

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Power Reforms

• Unbundling of utilities
• De-licensing in Generation Transmission
• Mega schemes - UMPP UMTP
• Creation of National Grid
• Franchisee in Distribution
• Promoting merchant Power
• Focused approach for Rural Areas
• Promotion of Renewable Energy
• Fiscal Financial Incentives
• RPO Targets
• National Solar Mission

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RE Imperative

• Enormous RE potential
• Promotes Energy Security
• Promotes Sustainable Growth
• Bridges demand-supply gap
• Reduced Losses as Generation near consumption
• Provides lifeline energy (Heat, Light Power) to
  rural masses

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Issues with RE Projects

• Remote Locations
• Infirm Power, difficult to schedule
• Limited Generation period, requires storage
• High Generation Cost due to
• High up-front cost
• Low Capacity Factor
• Under-utilization of transmission facilities
• Associated with Reactive Power
• First Generation Entrepreneurs
• Limited Public Sector Participation
• Lack of Trained Work-force

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RE Policy Enablers

• Dedicated Ministry MNRE
• Dedicated Financial Institution - IREDA
• Comprehensive Resource Assessment
• Wind Atlas
• Solar Radiation Mapping
• Identification of Hydro sites
• Enabling Legislations
• NAPCC
• Purchase Obligations
• Preferential Tariffs/ GBI/ RE Certificate
• Guaranteed off-take, Must-Run status

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Fiscal Financial Incentives

• Excise duty exemptions
• Income Tax Holiday
• Accelerated Depreciation
• Electricity Duty exemption
• Preferential Tariffs/ GBI/ RE Certificate
• Interest Capital subsidies
• 100 FDI permitted
• Energy buy-back through long-term PPA
• Captive, 3rd Party Sale Trading

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NAPCC Snapshot 8 Missions
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Indian RE Scenario

• Note Grid connected capacity as on 31-Oct-2009

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Investments in Indian RE
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2012 RE Targets Investments
() After deducting for the commissioned capacity
as on 31 Oct09 from MNRE-RFD for Wind, SHP
Biomass () Solar JNNSM (Th-600 MW PV-400
MW) () Cost projections Inline with CERC
guidelines
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ATTRACTIVE INVESTMENT DESTINATION
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Indian Economy

• Fastest growing free market democracy
• 4th largest economy
• GDP growth _at_ 8
• Infrastructure
• 2nd largest Rail network
• 334 airports
• 12 major ports 87 minor ports
• 400 Million telephone connections
• 5th largest power market
• IT Engineering Superpower

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FDI in India

• 100 FDI allowed in power Generation,
  Transmission Distribution
• Government has set up Foreign Investment
  Implementation Authority
• One-stop service to foreign investors
• Obtaining necessary approvals
• Sorting operational problems

www.investinginindia.in
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INDIA Ideal Destination
US 35 Billion FDI in 2008-09
Source IBM-PLI Global Investment Locations
Database, GILD
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FDI in Indian Power Sector
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ABOUT IREDA
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Agenda II

• Introduction
• Operational Areas
• Financing Schemes
• Resource Base
• Performance Highlights
• International Partnerships
• Recognition

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Evolution

• INCEPTION
• Incorporated under the Companies Act on 11th
  March, 1987 to promote, develop and extend
  financial assistance for Renewable Energy and
  Energy Efficiency/ Conservation Projects.
• OBJECTIVE
• Extend financial support to Renewable
  Energy, Energy Efficiency Conservation projects
• MOTTO
• Energy For Ever

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Operational Areas

• Sectors being financed
• Wind
• Small Medium Hydro
• Biomass Power Cogeneration
• Solar
• Waste to Energy
• EE Conservation
• Bio Fuels/ Alternate Fuels

• Other Activities
• Intermediary for providing financing facilities
  for various MNRE Schemes
• Implementing Agency for GBI scheme

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Financing Offerings

• Schemes
• Project Financing
• Equipment Financing
• Financing Through Intermediaries
• Terms
• Loan - 70 of Project Cost
• Interest -11.25 to 12.15
• (based on credit rating)
• Repayment - Upto 13 Years
• New Initiatives
• Securitization against future receivables
• Structured repayment
• Loan syndication under Consortium
• Non-recourse financing

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Outreach

• Registered Head office New Delhi
• Branch Offices Chennai Hyderabad
• Camp Offices Kolkata Ahmedabad
• Business Development Associates 50 Nos
• MoU with PFC, PTC, IIFCL for joint financing
• Conducts Business Meets, Seminars, workshops
• Publishes IREDA News Bulletin on EE

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Cumulative Performance

• No of Projects Sanctioned 1892
• Total Loan Sanctions Rs.10,356 Cr
• Loan Disbursements Rs. 5,754 Cr
• Sanctioned Power Capacity 3616 MW
• Commissioned Capacity 1902 MW
• Conventional Fuel Replacement 13L MTCR/Yr

As on 31/03/2009
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India RE PortfolioIREDA Share
As on 31/03/2009
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Highlights

• Unique FI Dedicated for RE Financing
• Specialized knowledge of RE EE
• High Brand Equity
• Catalyzed market development leading to
  commercialization of RE
• Assisting in policy formulation
• Profit earning dividend paying
• ISO 90012000 Certified Company
• Highest share in RE Financing - 13.5

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International Partnerships

• Lines of Credit Availed
• Govt of Netherlands, 1991 18 Million Dutch
  Guilders
• World Bank (1st LoC), 1993 145 Million
• DANIDA, 1993 15 Million
• Asian Development Bank, 1997 100 Million
• KfW, Germany (1st LoC), 1999 61 Million
• World Bank (2nd LoC), 2001 110 Million
• KfW, Germany(2nd LoC), 2008 50 Million
• KfW, Germany (3rd LoC) 19.9 Million
• Lines of Credit in Pipeline
• AFD (France) 70 Million
• JICA (Japan) 100 Million

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Lenders Perceptions

• ADB - IREDA has satisfactorily performed the
  operational and institutional responsibilities in
  accordance with the diverse objectives for which
  it was created.
• World Bank - IREDA is well motivated, active and
  has strong interest in incorporating
  environmental costs and benefits into economic
  analysis.
• KFW - despite its fairly young age, IREDA is an
  able and competent financial institution and has
  retained its financial strength through years of
  very rapid growth and in sectors with
  considerable technological and financial risks.

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Recognition

• Second Prize in Water Globe Award Category of the
  Energy Award 2002 presented at Linz, Austria.
• World Climate Technology Award for the year 1999
  by Climate Technology Initiative (CTI), France.

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• THANK YOU