A description of India energy mix, its current and futur projects in renewable energy.

1. RENEWABLES COUNTRY PROFILE
INDIA
Currently, India is the world fifth consumer of
primary energy. Given its economic growth (7 to 10%
per year) and its demographic growth (2% a year),
the Indian electricity demand is likely to soar in the
coming years.
Such a speculation is putting a lot of pressure on the
available energy resources of the country. For
example, the coal power plants, which account for
50% of the electricity production, have an energy
storage limited to 7 days.
With a growth of 10% a year of the electric demand,
India is already struggling to meet this demand with
its own electricity production. Thus, the perspective
of such a growth is synonymous with a dramatic
increase of the energy invoice of the country that
already imports a large part of its electricity.
Consequently, it becomes crucial for India to diversify
its energy mix. As shown in the following graph, the
country depends too much on resources that have
become more and more scarce.
OVERVIEW OF THE ENERGY MIX
FINERGREEN| FINANCIAL ADVISOR FOR RENEWABLE ENERGY PROJECTS October 2015
In 2014, more than 60% of the production comes
from coal and fossil energies. Yet, they are both
limited resources in India.
At the same time, renewables are lagging behind in
the energy mix (hardly 13% without the
hydroelectricity).
Such a shame knowing that India has a very high
renewables potential : 102,8 MW of wing energy
potential, 22,5 GW of biomass potential and 50
MWp/km² of solar potential.
Today, India is the world fifth producer of wind
energy in term of installed capacity.
During the last decade, the government has
implemented numerous measures and plans in
order to foster the development of the renewables
(in particular solar energy):
ᵥ In 2003, the Electricity Act promotes the
production of alternative sources of energy, and
simplifies the commissioning of renewables
installations.
ᵥ In 2005, The National Electricity Policy aims at
reducing the capital cost and at encouraging the
participation of the private sector.
ᵥ In 2006, The Pricing Policy implements a
preferential tariff for purchase of electricity
produced by renewables.
ᵥ In 2008, The National Action Plan of Climate
Change, introduces the idea of fixing a minimum
purchasing tariff and a penetration rate of
renewables in the energy mix by 2020.
CAPITAL : New Delhi
POPULATION : 1,202 billions of inhabitants
GDP 2014 : 4 215 billions $
ELECTRICITY PRODUCTION: 1 089,7 TWh
ELECTRICY CONSUMPTION : 909 kWh/inhab
Fossil
Hydro
RE
Nuclear

2. ᵥ The Renewable Purchase Obligation, fixes a
quota of renewables that have to be purchased
by companies that distribute electricity.
PROJECTS INSTALLED
SOLAR
India is the world first country in term of solar
potential : an annual yield goes from 1700 to 1900
Kwh/Kwc, an incident energy up to 7kWh/m²/d and
more than 2 000h sunning per year. The West of the
country particularly enjoys a high solar potential.
Since 2011, the development of solar energy in
India has known a tremendous growth. Installed
capacity of thermic solar has increased by 44% from
2011 to 2012. As for photovoltaic, it has soared by
124% in 2011 and by 130% in 2012. Such a growth
can partly be explained by the commissioning of
huge plants, such as Charanka, in Gujarat State,
which installed capacity is superior to 200 MW.
In 2014, India added 616 MWc of capacity to its
photovoltaic park, ranking 10th on the world list of
installed capacity within the year.
In order to support this development, the Indian
government has implemented new measures, with
new goals. Among them, the Jawaharlal Nehru
National Solar Mission (JNNSM), aiming at reaching
the total capacity of the Indian solar park to 20 000
MW by 2022.
Furthermore, governmental subventions, up to 30%
of the project cost, have been implemented in order
to promote off grid installations.
Goals have already been reached and exceeded for
the year 2015.
The sharp fall of the PV cost have been one of the
consequences engendered by the current solar
boom. It went from 17 rupees (0,23€) in 2010 to 7,5
rupees in 2013 (0,10€).
Among all India regions, three are particularly active
in terms of solar developing program:
- Gujarat : at the end of the first phase, 655MWc
are already installed
- Rajasthan : 198 MWc of installed capacity
- Andhra Pradesh : Lagging behind the two others,
with 22MWc of installed capacity
As said before, India has a well developed solar
power, relies on numerous plants of several
megawatts. The most important of them are situated
in Gujarat State :
ᵥ A 214MWc plant was settled in 2012
ᵥ An agreement was signed in 2012 for the
commissioning of a 968,5 MWc of PV
ᵥ 857 MWc were connected to the network at the
end of 2013
At the beginning of 2014, Rajasthan State announced
the construction of the world’s largest solar plant :
77km², 4000MW, 7 years of construction, a 4,4
billion-euros investment for an annual production of
6,4 Twh and a cost per kWh around 5,5 rupees
(0,07€).
WIND ENERGY
Wind Energy is the most important renewable asset
of India. Ranked 5th worldwide in terms of
production and installed capacity, India is producing
more than 30 TWh of wind energy, i.e. 5,6% of the
worldwide production, for an installed capacity
accounting for 6,1% of the global capacity.
All alone, wind power represents 67% of the
electricity produced by renewables with only 21% of
the potential exploited (22 GW installed, out of the
exploitable 103 GW).
As solar energy, wind power is a quite dynamic sector
: +10,2 GWh during the last 5 years and +15GWh
within next years.
FINERGREEN| FINANCIAL ADVISOR FOR RENEWABLE ENERGY PROJECTS October 2015
RENEWABLES COUNTRY PROFILE
INDIA

3. In terms of national policy, the Minister of Renewable
Energy has implemented an investment policy in
favor of wind energy, in order to reach 60GWh of
installed capacity by 2022.
Throughout this policy, producers can benefit from
production endowment, authorization to resort to
100% FDI and of a favorable tax policy (depreciation
up to 80%).
In 2013, the National Policy for Offshore Wind
energy has also been launched. Pilot projects should
be launched by 2019. This program also benefits from
a financial help from the European Union.
In terms of State policies, every state is involved in
the country energy transition, offering very
advantageous electricity purchase tariff to the new
producers.
5 States are really efficient and dynamic as for the
development and construction of wind energy plants :
Tamil Nadu, Gujarat, Maharashtra, Karnataka,
Rajasthan, Madhya Pradesh et Andhra Pradesh. All
gathered, these states are totaling more than 95% of
the Indian installed capacity.
AND WHAT ABOUT FUTURE ?
SOLAR
Despite governmental initiatives, India is still the 3rd
largest pollutant in the world.
Thus, in the context of COP21 and the UN meeting on
global climate emergency, India bets on solar energy
to improve its situation. On September 2015, India
announced its intention to produce 40% of its
electricity trough renewables and to multiply its solar
production by 30. A Fund for national adaptation for
the climatic change, with an ability to invest up to 18
million euros has even been created.
Among other things, India notably launched a vast
tender campaign for the development of solar plants.
It’s in this context that EREN Energies Nouvelles and
EDF Energies Nouvelles commissioned the NSM and
Odisha solar plants.
The NSM plant offers a total of 120 MWc of installed
capacity, divided into 5 different sites, while the
Odisha plant has an installed capacity of 30 MWc.
The financing of both plants has been realized by
local and international financial institutions such as
the International Finance Corporation (IFC) and the
Asian Development Bank ( ADB).
In addition to the fact that these two plants will
provide electricity to 9 000 households, they will
contribute to stimulate the local economy :
construction, maintenance and exploitation will be
carried out by Indian companies.
At the same time, India has commissioned quite a
stunning project : the first airport autonomous in
solar energy. Cochin airport gathers 46 150 panels on
more than 18 ha, and produces 50 000 to 60 000
kWh per day.
WIND ENERGY
India is one of the leading countries in wind energy
production. The economic fabric linked to this sector
is also quite developed, particularly with the
presence of the Indian company Suzlon, ranked 5th
wind energy group in the world.
However, there are now fewer wind ground-based
projects, partly because India is increasingly turning
towards offshore wind, which potential is widely
under-exploited. As a matter of fact, thanks to its high
maritime exposition, India has a strong potential to
pursue the development of wind energy.
One of the projects is the recent creation of a
consortium of firms – FOWIND – which aims at
realizing a map of the potential sectors that can
welcome future offshore projects. The stress is put on
Gujarat and Tamil Nadu. This consortium is leaded by
the Global Wind Energy Council, and composed by
the Center of Scientific Studies, DNV GL, Gujarat
Power Corporation Limited (GPCL), Global Institut of
RE and National Institut of Solar Energy.
FINERGREEN| FINANCIAL ADVISOR FOR RENEWABLE ENERGY PROJECTS October 2015
www.finergreen.fr
RENEWABLES COUNTRY PROFILE
INDIA