Renewable Energy

Solar (S)

Market Size (India)

  • 100 GW by 2022

Risks

  • Crowded market
  • Competitive tariffs in bidding
  • Project execution challenges (Completing the project within schedule and budget and with quality)
  • Attaining early financial closure with such competitive tariffs
  • Securing long term guarantee from OEMs for critical equipment (Panels, Charge Controllers, Inverters, Control system)

Opportunities

  • Big market
  • Distributed generation, micro grid for off grid projects
  • Social impact (employment to local skilled workforce for electrician/installation work/maintenance)

Wind (W)

Market Size (India)

  • 100 GW identified (@80m above ground level)
  • 60 GW by 2022

Policies (India)

Risks

  • Competitive tariffs in bidding leading to revenue pressure
  • Project execution challenges (Completing the project within schedule and budget and with quality)
  • Attaining early financial closure with such competitive tariffs
  • Long term guarantee from OEMs for critical equipment (Turbine,Generator, Gearbox, Control system)
  • Availability of spares and quick service support

Opportunities

  • Big untapped potential
  • Distributed generation, no need to have transmission infra for off grid projects
  • Social impact (availability of power to far flunged area, employment generation)

Small Hydro (SHP)

Market Size (India)

  • 20 GW

Policies (India)

Risks

  • Timely regulatory approval for project commencement
  • Early financial closure
  • Project execution challenges; hydro projects are construction intensive unlike wind and solar
  • Local issues need to be effectively managed, otherwise it leads to litigation and delays in project
  • Contract management – small contractors need to be actively managed and supervised for quality and timely delivery

Opportunities

  • Social impact (employment generation during project phase and in O&M phase); hydro projects are construction intensive and hence, more employment could be generated
  • Higher PLF (CUF) compared to standalone wind/solar projects

Hybrid (S+W)

Market Size (India)

  • ~ 10 GW by 2022

Policies (India)

Risks

  • The formal policy has still not been stipulated
  • Tariffs are not known
  • Mode of project allocation, norms of bidding not very clear

Opportunities

  • Optimum utilization of available land
  • Optimum utilization of existing transmission infrastructure (no new
  • Better CUF due to complimentary nature of wind and solar resource (In summer – wind speed is low, solar irradiation is high, in winter – wind

Bio-Mass

Market Size (India)

  • 18 GW

Policies (India)

Risks

  • Availability of biomass as fuel – in time and in right quantity and quality
  • Efficiency dependent on biomass quality and mixing of different biomass
  • Project execution challenges as Biomass is construction/erection intensive (much like small thermal power projects)

Opportunities

  • Better PLF (CUF) compared to solar and wind
  • Continuous production depending on availability of biomass unlike hydropower projects where the production is seasonal due to availability of water