Research4India

India Solar Energy Report

June 2012
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Table of Content
1. Solar Energy in India Introduction. 3 2. Solar Energy Segments.. 9 3. Drivers for Solar Market .... 18 4. Government Incentives/NSM.. 23 5. Investment Opportunities in the Solar Sector .... 29 6. Key Issues/Challenges .. 37 7. Companies . 45
Manufacturers of Cells/Modules/Systems i. Moser Baer Photovoltaic (MBPV) ii. XL Energy iii. Websol Energy iv. Indosolar v. Tata BP Solar vi. Titan Energy vii. Solar Semiconductor viii. Kotak Urja ix. Photon Energy x. Maharishi Solar xi. Vikram Solar xii. Reliance Solar xiii. PLG Power xiv. HHV Solar Developers of Solar Power Plants i. Lanco Solar ii. Moser Baer Clean Energy iii. Azure Power iv. SunBorne v. Kiran Energy

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Untapped potential of Renewable Energy in India

India has an enormous potential of renewable energy (~XXMW) across various sources. However India has realized ~xx% (~xx MW) , leaving a huge untapped potential. This is xx% of total installed power capacity However, the contribution of renewable energy to real power generated is only x%. As part of the National Action Plan on Climate Change, (NAPCC) the government has set the target of increasing contribution of renewable energy sources in power generations to x% by 2015. The share will continue to grow steadily with renewable energy expected to contribute as high as xx% by 2050.

Installed Capacity for Renewables in India

Renewable Potential Vs Achievements in India RE Sources Potential (MW) XX XX XX XX Achieved (MW) XX XX XX XX

CAGR 23%

Wind Small Hydro (up to 25 MW) Biomass + Bagasse Solar and others
1 TW = 1000,000 MW

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11 Source: MNRE

Source: MNRE

India has realized less than XX% of its installed renewable energy capacity, leaving huge untapped opportunity
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Methods of harnessing solar power

Solar Photovoltaic
Solar Photovoltaic (SPV) technology converts light directly into electricity. India has current installed capacity of XXMW (PV systems and power plants). PV installations in India today almost entirely comprise small capacity applications. Ministry of New and Renewable Energy (MNRE) is aiming to achieve XXMW grid-connected SPV capacity by 2012.
2009 2010e 2011e 2012e 2013e Source: European Photovoltaic Industry Association CAGR 57%

Installed Capacity for PV in India (MW)

Solar Thermal
Solar Thermal technology converts light first into heat and then electricity. Solar thermal can be used for heating and drying and for power generation (concentrating solar power, CSP). In India, there is no power generation currently using solar thermal. Solar thermal has been used exclusively for heating and drying. India ranks ninth worldwide in production of solar thermal power systems.

Solar PV technology has always been the main technology adopted for solar power in India. Solar thermal is largely confined to heating and drying applications

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Status of Solar Energy in India

Solar Power Capacity
Sources / Systems Grid-interactive Power Solar Power From all renewable sources Off-grid Power XX XX Cumulative Achievement

PV constitutes a miniscule part in Indias installed power generation capacity with grid connected solar PV generation at a mere XXMW

Solar PV Power Plants

From all renewable sources Total Solar Power Decentralised Energy Systems (Off-grid) Solar Street Lighting Home Lighting System

XX
XX XX

XX XX

Solar Lantern
SPV Pumps Solar Water Heating System

XX
XX XX

Bulk of Indias installed SPV capacity is in the form of non-grid applications. They are most visibly seen in lighting applications (street lighting, and home lightning systems), small electrification systems and solar lanterns in rural areas. In India, solar thermal technology has been used exclusively for heating and drying.

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Availability of public and private capital

PE deals in solar in the last 4 years Date Oct-11 Jun-11 Investor (s) GE Energy Financial Services
Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Company 8

Company

Value($Mn)
XX XX XX XX XX XX XX XX

IFC New Silk Route, Bessemer Ventures and Argonaut Jan-11 Ventures Oct-10 IFCI Ventures Oct-10 New Silk Route, Argonaut, Bessemer Oct-10 IFC Aug-10 Blackstone Group Jul-10 Apr-10 Mar-10 Dec-09 May-09 Bessemer Venture, IFC IFC IFC, Helion Venture Partners, Foundation Capital Khosla Ventures, General Catalyst Partners Pangea Capital

Company 9
Company 10 Company 11 Company 12 Company 13 Company 14 Company 15 Company 16 Company 17

XX
XX XX XX XX XX XX XX XX

Nov-08 Sherpalo Ventures, KPCB, Applied Ventures Oct-08 Sep-08 General Catalyst Partners Helion Ventures, Foundation Capital Morgan Stanley, Credit Suisse, IDFC PE, Nomura Sep-08 Holdings, Others Mar-08 Aureos India, SIDBI VC

Investing in solar power plants could fit in PE portfolio owing to the fact a long power purchase agreement with a government-backed entity assures them of a stable revenue flow

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Incentives under National Solar Mission

Incentives under National Solar Mission

Incentives for power plant developers

Incentives for solar PV/thermal manufacturers

Generation Based Incentive (GBI) for roof top and small scale power plants (1-5 MW) Reduce the cost of grid connected solar systems GBI to power developers: Rs.12/ KWh for SPV and of Rs.10/KWh for Solar Thermal Power Plants GBI for a period of 10 years

NTPC Vidyut Vyapar Nigam (NVVN) for large scale power PV plants (5-25 MW) and thermal plants (20-100 MW) NVVN will enter into PPA with solar power developers to purchase solar power @ CERC tariff (Rs 17.91/kWh for PV and Rs. 15.40/kWh for thermal) NVVN to get equivalent MW from NTPC NVVN will sell bundled power to State utilities at the rates determined as per CERC regulations

Semiconductor Policy and Special Incentive Package Scheme 20% subsidy on capital expenditure for SPV project in a SEZ while 25% subsidy in case of a non SEZ. No Central Excise duty on specific capital equipment, critical materials and project imports Low interest rate loans Promote solar water heating systems ensuring that applications below 80 C are solarised Aims at 4-5 GW capacity by 2020

Aims at 100 MW power by 2013 Aims at 1,000 MW power by 2013 Private & Confidential

High cost of solar power

Cost of power generation (Rs /kWh)

The estimated unit cost of generation of electricity from SPV and solar thermal route is much higher than the electricity obtained from conventional fossil fuels.
Thermal Solar Thermal Min Max SPV

Source: TERI

Cost of setting up power plants (Rs Mn/MW)

The primary reason for the high cost of solar power is the high capital cost.
Component Solar panel arrays Inverter Balance of System Installation Others Total Amount (Rs Mn) XX XX XX XX XX XX

SPV cost breakup Thermal Source: CERC Wind Nuclear Solar Thermal SPV

The main issue impending the solar industry is high cost of power generation which is due to high capital cost
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Manufacturers of PV cells/modules/systems
Product Company Moser Baer Photovoltaic XL Energy Websol Energy Indosolar Location Capacity Wafers Cells Modules PV Solar Systems Thermal Future Plans

Delhi Hyderabad Kolkata Noida

XX XX XX XX

XX XX XX XX

Tata BP Solar
Titan Energy Solar Semiconductor Kotak Urja Photon Energy Maharishi Solar Vikram Solar Reliance Solar PLG Power HHV Solar

Bangalore
Hyderabad Hyderabad Bangalore Hyderabad Delhi Kolkata Mumbai Mumbai Bangalore

XX
XX XX XX XX XX XX XX XX XX

XX
XX XX

XX XX XX XX XX XX XX

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Websol Energy Systems

BACKGROUND AND OVERVIEW
Established in 1990, Websol Energy Systems Ltd. (formerly Webel SL Energy Systems Ltd.) is a leading manufacturer of photovoltaic monocrystalline solar cells and modules. The Companys production facility is located at Falta SEZ, West Bengal and has the manufacturing capacity of 42MW. Websol solar modules have been certified by various reputed institutes like Underwriters laboratories Inc , TUV Rhienland Germany, EuroTest Laboratori S.R.l Italy and CSA International Canada. The Company manufactures cells and modules for stand-alone and grid connected projects. Websol primarily focuses on the international markets: In FY10, it exported more than 99% of its production to Europe and USA It is selling its products to system integrators and project developers In order to address customer enquiry and develop customer relations it has set up offices at Germany and US In India, the companies operations are largely focused to the state of West Bengal

PRODUCTS AND SOLUTIONS

Products/solutions Details Solar Photovoltaic Crystalline Cells Crystalline Modules The product range from 5 watt to 220 watt caters to needs ranging from rural electrification to big power plants.

MANAGEMENT
Name/Designation Profile

Mr. Agarwal is a commerce graduate from Kolkata Mr. S L Agarwal, University and has more than 25 years experience in Founder and managing different types of businesses and organisations. Managing Director Mr. Agarwal is a recipient of the prestigious Udyog Ratna Award from the President of India and Shiromani Award from the Indian Institute of Economic Studies in 1987. He is also a core committee member of Indian Semiconductor Association Solar PV Cell.

BUSINESS STRATEGY
The Company plans to increase the capacity to XXMW by 2011 and to XXMW by 2012. It expects to grow peak revenues to Rs XXbn once XXMW is fully commissioned, and to Rs XXbn when XXMW is commissioned.

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Websol Energy Systems

REVENUES (EXPORTS AND DOMESTIC) EBITDA AND EBITDA MARGIN

FY08 FY08 FY09 FY10 FY11 FY12

FY09 EBITDA (Rs Mn)

FY10

FY11

EBITDA Margin (%) FY12 EBITDA : Rs -1,123mn

PAT AND PAT MARGIN

RETURN ON NET WORTH AND RETURN ON CAPITAL EMPLOYED

FY08 FY08 FY09 Net Profit (Rs Mn) FY10 PAT Margin (%) FY12 PAT : Rs -1,489mn FY11

FY09

FY10

FY11

RoE

RoCE

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Developers of solar power plants

Capacity Company Lanco Solar Location Delhi Current XX Under implementation XX Future Plans XX

Moser Baer Clean Energy Delhi Azure Power SunBorne Kiran Energy KVK Energy Delhi Gurgaon Mumbai Hyderabad

XX XX XX XX XX XX

XX XX XX XX XX XX

XX XX XX XX XX XX

Rajasthan Sun Technique Mumbai (Reliance Power unit)

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