INDIAN ENERGY

SCENARIO: Status and

Future Prospects
the time is running outsoon, there will be
nothing left to burn on earth but earth itself

By:
J VEERENDRA KUMAR
Dept. of Electrical Engineering
SRM UNIVERSITY

ENERGY IN INDIA: AN
OVERVIEW

India consumes 3.7% of the worlds commercial energy

making it the 5th largest consumer of energy globally.
Total installed capacity of 2,75,911.62 MW using NonRenewable energy sources and 36470.64 MW using
Renewable energy sources.
350 kgoe(Kg of oil Equivalent) per capita primary
commercial energy consumption. 26% of world average.
Per capita electricity consumption: 600 kWhr per year.
About 80% of total rural energy consumption comes
from non-commercial energy.
84% villages electrified. 44% of rural households
electrified.

INDIAN POWER SECTOR

2,75,911

Source: Ministry of New and Renewable Energy

NON RENEWABLE ENERGY

CONSUMPTION TREND

ENERGY SCENARIO IN INDIA

Rapid economic development & Increasing
population = High demand for Energy
A sustained 8% GDP(Gross domestic product)
growth of India requires an annual increase of:

a)

Commercial energy supply from 3.7% to 6.1%

b) Total primary energy supply from 2.2% to 5.1%

Limited supply of COAL, coupled with its poor

quality, low level of technologies advancements
and high environmental hazards.
Limited domestic reserves and uncertain foreign
supply of hydrocarbons.

WHY RENEWABLE ENERGY FOR

INDIA?
Power

shortage
Rising Prices of Oils & Gases
Ecological Hazards
Ample resources and sites available
Abundant sunshine
Government incentive
Increased financing options

BENEFITS OF RENEWABLE
ENERGY
Avoid the high costs involved in transmission.
Avoid distribution losses Technical & otherwise
Avoid recurring fuel cost
Boost the rural economy
Encourage self help groups & self dependence
Enable village co-operatives to supply and / or
monitor distribution
Make available much needed energy for basic
needs at the doorstep at affordable prices.

INSTALLED CAPACITY FROM

RENEWABLE ENERGY
36,470

Source: Ministry of New and Renewable Energy

CURRENT FOCUS
Promoting rural energy for productive uses and
linked social benefits
Promoting renewable energy for rural
electrification and industrial applications
Enhancing access of the rural poor to affordable
and sustainable energy services
Supporting training and capacity building for
manufacture, local assembly and maintenance of
renewable energy technologies / systems
Organizing global forum activities and providing
strategic expert advice on renewable energy
technologies and energy policy planning and
institutional framework

RENEWABLE ENERGY
DEPLOYMENT
Wind installation (global)
60,000 MW (cumulative)
Indias share (and position)

23762 MW(fourth in the

world)
SPV cell production (global) 31,700 MW (in 2015)
Indias share (and position)

Biogas plants installation

(global)
Indias share (and position)

4060 MW (seventh in the

world)
27,643 MW (in 2015)

Small hydro power (global)

4418 MW(second in the

world)
18,573 MW (in 2015)

Indias share

4101 MW

Source: Ministry of New and Renewable Energy

INDIA RENEWABLE POWER

Renewable Estimated Remarks
POTENTIAL
Resource
Potential
Wind Power

48,000 MW

Biomass Power

42,000 MW

Solar Power

60,000 MW

Small Hydro
Power
Bio-Energy

18,000 MW
24,000 MW

Source: Ministry of New and Renewable Energy

Sites with wind densities of 300

W/m2 or higher with 9% of
assessed area available for wind
farms requiring 12 ha/MW.
20 mha of wastelands yielding 10
MT/ha/annum of woody biomass
giving 4000 kcal/ kg with system
efficiency of 30% and operating at
75% PLF.
Assuming solar energy:
4-6 kWhr/ m2/ day and depending
upon future developments making
solar technology cost-competitive
for grid power applications.

COMMERCIAL ENERGY
IMPORTS FOR 8% GDP
Fuel

Range of
Assumed
Requiremen Domestic
t in
Production
Scenarios

Range
of
Import
s

Import
(Percent
)

Oil (Mt)

350486

35

315451

9093

Natural Gas
(Mtoe)

100197

100

0-97

0-49

Coal (Mtoe)

632-1022

560

72-462

11-45

Source: Energy Policy Report, Planning Commission, India

INDIAN WIND ENERGY

SECTOR OVERVIEW
CURRENT SCENARIO

4th largest producers of wind energy in the world.

Indias current installed wind capacity is 8.7 GW
(approx. 10% of the worlds total installed
capacity).
Capacity growth has been strong with a 22%
CAGR over last decade.
Tamil Nadu, Maharashtra & Karnataka are the
leaders in wind capacity.

INDIAN WIND ENERGY

SECTOR OVERVIEW
FUTURE POTENTIAL

Cumulative installed capacity is expected to reach 22

GW by 2020.
Generation based subsidy of Rs 0.50per unit recently
announced for 10 years (limit of 5 MW per developer
and 50 MW in aggregate).

KEY TREND IN INDIA WIND

ENERGY INDUSTRY

All players in India undertaking a Dual Role

Manufacturing & Developer
Various Indian Companies are looking to enter
the sector
Infrastructure Developers
Electrical Equipment Manufacturers

KEY TRENDS IN INDIAN

SOLAR INDUSTRY
EXPANSION ACROSS THE BOARD

Various existing players planning Brownfield

expansion.
Huge new Greenfield facilities being planned.

KEY DRIVERS INCLUDE:

Low operating costs

Capital subsidy (20/25%) by government for large
semi-conductor based units (for large investments
above certain limits)
Possibility of Solar Energy development locally.
Public and private capital in abundant supply.

INDIAN HYDRO POWER

SECTOR OVERVIEW

POTENTIAL FOR HYDRO POWER GENERATION

India ranks 8th in terms of hydro-electricity generated
Potential to provide energy in remote and hilly areas
where extension of an electrical transmission grid
system is uneconomical
Till now, 14 States have announced policies for setting
up commercial SHP projects.
KEY POSITIVE
Proven Technology
Low O&M Costs
High energy conversion efficiency (70%)

INDIAN HYDRO POWER

SECTOR OVERVIEW

KEY DRAWBACKS
High gestation period
High capital costs (per MW)
Social Costs

FUTURE POTENTIAL
Hydro capacity expected to reach 57 GW by 2012.
Small hydro potential is expected close to 15 GW.
MNRE has introduced subsidy schemes for SHPs up
to 25 MW.
Well-established manufacturing base for full range
and type of small hydro equipments.

BIOMASS ENERGY OVERVIEW

INDIAN BIOMASS MARKET

OVERVIEW

CHALLENGES

POTENTIAL

DRIVERS

Small sized

Dependence on
agricultural output
Insecure raw
material linkage
Shortage of
equipment
Lack of cheap
financing, both debt
& equity
Currently, few
focused biomass
players

20 GW of power
may be generated
from 300 MT of
agro waste
(currently
produced)
50% currently
burnt in the open
Less than 3%
potential realized
Can revolutionize
pace of rural
electrification.

Agro based
economy
Large,
Unexploited
domestic resource
Favorably aligned
regulatory
environment
Simple
technology
Power deficit
across states

SUMMARY OF POTENTIAL
RETURNS IN RE BASE
GENERATION
PROJECTS
Given the comparatively higher cost of generating
energy from renewable sources, necessity for
financial support for the industry.
Government has introduced subsidies to make
returns attractive for developers.
Indicative expected returns:
Type of
Project
Returns

Costs (Rs. Cr/MW)

Wind Hydro

Hydro

Biomass Solar

5-6

5-6

4-5

(PPA)
5-6

(Merchant)

18-20

THANK YOU