Transcript Clean Technology Opportunities in India

Suzlon Energy Ltd
Clean Technology
Opportunities in India
- Chintan Shah
Suzlon Energy Ltd
30th March, 2016
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Structure of the Presentation
•
Overview
•
Clean Technology Opportunities in India
•
–
Market Drivers of Clean Technology
–
Clean Technology opportunities
Suzlon Energy Ltd
Prospects an d Potential
–
India as investment destination
–
Renewable Energy targets and enablers
www.suzlon.com
Overview
Suzlon Energy Ltd
•
Global commitment to Renewable Energy in 2015 stood at $285 billion –
A new record
•
India saw its commitment rise 22% to $10.2 billion in 2015
•
COP21 produced an unprecedented agreement among 195 countries to
act for zero net emissions in the second half of the century
•
Share of Global investment in Renewable Energy accounted for by the
Developing countries rose to 55% in 2015 with investments of $155.9
billion

India ranked 4th in new investments in Renewable Energy

India saw 75% jump is utility-scale solar financing @ $4.6 billion

Capital costs for PV projects in India have fallen to among the
cheapest in the world @ $ 1.1 million per MW

In Wind Energy, the $ 4.1 billion of asset finance in 2015 was 17%
higher than the previous year
www.suzlon.com
Structure of the Presentation
•
Overview
•
Clean Technology Opportunities in India
•
–
Market Drivers of Clean Technology
–
Clean Technology opportunities
Suzlon Energy Ltd
Prospects an d Potential
–
India as investment destination
–
Renewable Energy targets and enablers
www.suzlon.com
Market Drivers of Clean Technology
Accelerated
population
urbanization
Increasing
consumption by a fast
growing Middle-class
Scarcity of Natural
Resources – Fossil Furls,
Water and Minerals
Rising and volatile
energy and
commodity prices
Increasing energy
security related
concerns
Increasing adoption of
renewables
Corporate response
•
•
•
Suzlon Energy Ltd
Pursuing cleantech revenue
opportunities by leveraging core
competencies or developing new
ones
Investing in renewables as part of
energy optimization strategies to
manage risk
Sustainability initiatives that enhance
the efficiency of resources
Government Response
•
•
•
Incentives in Renewable Energy
Markets
Carbon Regulations
Ambitious Renewable Energy
targets
www.suzlon.com
Clean Technology Opportunities in India
Major RE Technology
in India
Suzlon Energy Ltd
FY 2015 – 16
Capacity Addition
Cumulative status (As
on 31st Jan 2016)
Wind Energy
1,744 MW
25,188 MW
Solar Energy
1,489 MW
5248 MW
Small Hydro Power
132 MW
4187 MW
Bio-Power (Biomass &
Gasification and Bagasse
Cogeneration)
342 MW
4760 MW
Waste to Power
12 MW
127 MW
•
Wind Power Generation Potential in India is 300,000 MW
• Solar power capacity targets at 100,000 MW by 2022, entailing an
investment of INR 600,000 crore, to make India one of the largest green
energy producers
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www.suzlon.com
Clean Technology Opportunities in India
•
•
Energy Efficiency

Smart Grids

Green Buildings
Environment Technologies

•
Coal beneficiation, Coal combustion, Coal conversion
Water Management

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Waste management, development of urban areas, water & sanitation
Clean Coal Technologies

•
Suzlon Energy Ltd
Industrial waste water management , Drinking water purification
www.suzlon.com
Structure of the Presentation
•
Overview
•
Clean Technology Opportunities in India
•
–
Market Drivers of Clean Technology
–
Clean Technology opportunities
Suzlon Energy Ltd
Prospects an d Potential
–
India as investment destination
–
Renewable Energy targets and enablers
www.suzlon.com
The Indian Economy
•
The largest democracy | Population ~1.30 billion
•
GDP USD 2.384 trillion (nominal), GDP Rank: 7 (nominal)
•
GDP Growth: 7.6% (2015-16 est.)
•
A liberal foreign investment regime

India Sector wise GDP
17.40%
25.80%
56.90%
Agriculture
Industry
Services
FDI Inflows into India (equity + re-invested earnings + other capital)
–
Cumulative FDI Inflow 2000 - 2015: USD 365 bn (Equity inflow: 264 bn)
–
Total FDI Inflow 2014 - 15: USD 41.2 bn (Equity inflow: USD 28.8 bn)
•
Abundant natural resources, a rich mineral base, self-sufficiency in agriculture
•
Fifth highest investment in energy infrastructure projects to reach financial closure
and serve the public
•
Energy growth is critical for meeting GDP targets

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Suzlon Energy Ltd
Renewables to contribute in major way
www.suzlon.com
India as an Investment Destination
Suzlon Energy Ltd
$ 30.9 billion FDI in FY
2015 - 16
Growing middle
class
No 1 FDI
Destination
Market
Potential
Industrial sector
on a growth
trajectory
Liberalization of various
sectors – Defense,
Insurance
Decline in Inflation
Policies
Encouraging Policies –
Financial Inclusion, Digital
India, GST
FDI inflows rise
by 40%
Stable Government
(Both Central & State)
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India’s commitment to Renewable Energy
Suzlon Energy Ltd
175,000 MW of Green Power by 2022
Wind
Solar
Biomass
Small Hydro
60,000 MW
100,000 MW
10,000 MW
5,000 MW
India’s INDCs
Emission Reduction
Renewable Energy
Green Cover
Adaptation
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• Reduction emission intensity to GDP target of about
35% by 2030 from 2005 levels
• Achieve 40% commutative electricity installed
capacity from non-fossil fuel based energy sources by
2030
• Create carbon sinks of 2.5 to 3 billion tonnes of CO2
equivalent through additional forest and tree cover by
2030
• Better adaptation with climate resilient agriculture and
water conservation
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Govt. of India’s support and initiative for RE
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Re-introduction of Generation based Incentive (GBI)

•
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INR 0.50 per unit of electricity fed into the grid for a period not less
than 4 years and a maximum period of 10 years with a cap of INR. 100
Lakhs per MW
Re instatement of Accelerated Depreciation (AD)

•
Suzlon Energy Ltd
Been proven a key instrument for growth on wind sector in India
Creation of Green Energy Transmission Corridor for
Renewable Energy

Will evacuate renewable power from RE rich states to load centres

Will make RE generation grid interactive, reduce evacuation losses,
allow grid-scale energy storage & management
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Suzlon Energy Ltd
Thank you
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