Insights into Renewable
Energy Adoption in India
The Corporate Story
Confederation of Indian Industry
Knowledge Partner
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Confederation of Indian Industry
Piyush Shah
Chairman, CII WR Environment Sustainability in Business
Sub-Committee 2016-17 & Executive Vice Chairman
Hitachi Hi-Rel Power Electronics Pvt Ltd.
Message
Corporate renewable energy focus has been enhanced lately due to the formation of Low Carbon
Technology Partnerships Initiatives (LCTPI) by the World Business Council for Sustainable
Development (WBCSD) which aims to catalyse actions to accelerate low-carbon technology
development, and scale up the deployment of business solutions such that global warming is limited
to below 2 degrees C. Global companies such as IKEA, Swiss Re, BT, Formula E, H&M, KPN, Mars,
Nestlé and Philips are taking bold steps to create transformative change needed to drive a clean
energy revolution.
The Government of India has also released an ambitious plan for enhancing RE use in India. Several
top corporates in India too have deployed several renewable energy projects in the last 10 years.
However, only two Indian company figures in the RE100 a global platform for committing to 100%
renewable power. In spite of lofty goals and aims, achieving 100% renewable energy is still a dream
for corporates in India.
Managerswhoarerequiredtocreateabusinesscaseforrenewableenergyprojectsareill-equipped
to handle challenges such as cost effectiveness, policy issues, funding and financial viability of
renewable energy systems, multiplicity of government agencies and institutional structures, grid
stability and availability, variation in state level wheeling criteria. In addition, corporates that
previouslyinvestedincleandevelopmentprojectsfeelthattheremustbeamechanismtoincentivise
corporate renewable energy projects.
This paper investigates the corporate scenario for undertaking renewable energy projects, explores
roadblocks and challenges, and benchmarks leaders who have adopted renewable energy business
solutions in India. It highlights companies that are adopting RE, the challenges in adoption of
renewable energy in India, and how some companies have overcome the hurdles associated, as well
as the vendors in RE sector are, and innovations happening in this space.
On behalf of the CII WR Environment Sustainability in Business Sub-Committee, I’d like to thank all
the Industry members and stakeholders for their valuable inputs and support.
I sincerely hope this report will stimulate further thought and dialogue, spurring a rich exchange of
ideas.
3Insights into Renewable Energy Adoption in India.
Report Objectives
The global environmental status is scientifically proven to be increasingly threatened by climate
destabilization, and renewable energy plays a pivotal role in helping bring balance to the ecosystem
as well as human economies. This study occurs at a crucial juncture of climate policy, as Indian
Government and leaders made aggressive commitment in adopting Renewable Energy at the meet
at Paris for COP21. In the recent past, the Ministry of Environment, Forests, and Climate Change,
Government of India, has taken several policy initiatives to facilitate the role of renewables and
simultaneously empower “the billions at the bottom.”
Notwithstanding the action or inaction of governments, it is necessary for corporate entities to
take up the task of empowering society through their initiative and ingenuity. A majority of existing
literature explores RE adoption challenges from the perspective of a government or a utility.
With the increasing interest in adoption of RE by corporates, there is a necessity to delineate the
challenges and opportunities, considering the corporate perspective.
We have examined the challenges and opportunities for corporate and non-corporate entities to
participate effectively in constructing a 100% renewable energy society. As part of this study, we
had devised a survey to elicit the insights and insecurities of professionals and experts who are
exploring renewable energy investment and adoption. We had also developed a realistic picture of
the existing policy and technology developments to help corporations assess the gap between their
present state and a potential RE100 scenario. On behalf of the CII WR Environment Sustainability
in Business Sub-Committee, I’d like to thank all the Industry members and stakeholders for their
support and inputs.
I sincerely hope that you find this report informative and resourceful.
Anirban Ghosh
Head, Core Team- Energy,
CII WR Environment Sustainability in Business Sub Committee 2016-17
& Chief Sustainability Officer, Mahindra & Mahindra Ltd
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Confederation of Indian Industry
Executive Summary
Context
Post COP21, India’s commitment to a low carbon economy has been demonstrated via several
changes at policy level which have paved a path for quickening the pace of RE adoption in India.
India’s INDC1
outlines a 40% nonfossil fuel based power by 2030 including 175 GW of RE by 2022,
of which solar is expected to contribute 100 GW, and wind 60 GW. The policy thrust to renewables
has been significant, and specific targets have been announced to accelerate the deployment
of renewable energy. The National Action Plan on Climate Change (NAPCC, 2008) envisages a
dynamic Renewable Purchase Obligation (RPO) target of 10% at the national level for 2015 with
an annual increase of 1% in order to reach around 15% by 2020. The new electricity tariff policy is a
step in the right direction for increased RE adoption.
The Need for The Study and Study Methodology
In spite of lofty goals and aims, achieving 100% renewable energy is still a major challenge
for corporates in India. A majority of existing literature explores RE adoption challenges from
the perspective of a government or a utility. With the increasing interest in adoption of RE by
corporates, there is a necessity to delineate the challenges and opportunities, considering the
corporate perspective. The objective of this RE Policy Paper is to inform key stakeholders about
the existing perspectives on the current and potential initiatives in the pursuit of renewable energy
(RE) consumption, benchmark leaders who have adopted renewable energy business solutions
and to assess the main internal and external challenges on the path of achieving 100% RE use by
corporate sector in India.
The approach adopted for this work is based on primary data (through a survey) and secondary
research. It also helps corporates to understand about the innovations happening in this space and
vendors associated with it. The scope of the study is limited to policies of various states from the
perspective of the Western Region comprised of Maharashtra, Goa, Madhya Pradesh, and Gujarat.
5Insights into Renewable Energy Adoption in India.
Key Hurdles in Rapid Adoption
The key hurdles perceived by stakeholders interviewed via the survey method cover 5 areas:
1. Anticipation of new RE technology, lack of awareness: This has an impact in form of deferred
investment as corporates are still waiting for prices to lower further.
2. Gaps in technical evaluation and feasibility have been identified as the main technical constraints
the implementation of RE, such as:
	 (a) Variability of resource availability, 	
	 (b) Storage of excess power generated by RE, and
	 (c) Feeding of power to the grid
3.Policyimplementation&Governmentclearances:Singlewindowclearancesandeaseofnavigating
through maze of disparate policies is definitely a turnoff. Unlike states like Rajasthan, Karnataka,
Telangana, and Tamil Nadu where the timeline for the approval and clearance has been specified,
the renewable energy policy of Maharashtra does not specify any time line or turn around period
for the application, approval and clearance. Though open access has been allowed in Maharashtra,
no exemption is provided in wheeling and transmission charges of renewable energy power. This is
slated for change with the open access policy.
4. Net metering: Government of Maharashtra has approved the net-metering policy in 2015,
whereas, Tamil Nadu has approved and started promoting its net-metering policy from 2012. Due
to late initiation of the net metering in Maharashtra, Solar rooftop PV system in Maharashtra has
encountered set-backs. Moreover, Open Access permission will not be granted to the consumers
availing single point supply and sub distributing it further to multiple consumers. E.g. Commercial
Malls,ITparks,commercialcomplexes,softwaretechnologyparksetc.Suchconsumersarerequired
to apply for Distribution Franchisee through MoU route or take separate individual connections as
per relevant Regulations & Orders of MERC. (Refer Procedure for grant of open access permission,
MAH govt. order)2
5. High initial project financing costs: Upfront project costs scares several investors, and leads them
to believe that open access of RE through grid-procured power purchase agreements would be the
most viable option
6. Project Implementation related issues: Implementation phase of RE generation encounters
hurdles in:
•	 Land acquisition and space availability;
•	 Identification of vendor & EPC(Engineering & Procurement Service Provider) service provider;
•	 Lack of awareness of the related policies at the ground level
•	 Discouraging attitude of utility companies towards commercial consumers,
•	 No incentives for project developers
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Confederation of Indian Industry
Conclusion
Falling cost of renewables, new progressive policies have set the tone for larger RE adoption. This
will be hastened if the key asks are well received and addressed by the government. Key asks by
Corporates from Government in context of RE are as follows:
•	 Strict monitoring of RPOs and RGOs for a robust REC market
•	 Implementationofthetariffpolicyonthegroundthroughaclearguidanceatalllevels. Seamless
facilitation of access to Renewable Energy via grid through PPA
•	 Simplification and standardisation of policies across states.
•	 Single window clearances.
•	 Availability and awareness of various viable financial models for off grid and grid based RE.
The two key outcomes of this work are:
1.	 Results of the Survey on Renewable Energy Perspectives from corporate India indicated
that variety of hurdles exist, however overall adoption is expected to increase.
2.	 Analysis of current RE policy scenario in India revealed that the government of India has
taken several steps which will boost RE adoption. However, there is a concern regarding weak
governance, and on ground implementation support. Strengthening these will be key to RE
adoption.
The Western Region comprising of states of Maharashtra and Gujarat has the largest concentration
of business houses. Textiles, pharma, petroleum, IT, chemicals, electronics, heavy chemicals,
automobiles, food, and plastics are some of the major industries in the region. Infosys and Tata
Motors are the two Indian companies that figure in the global list of over 55 companies3
which
have signed up for RE 100 program, it is in the interest of all to see more companies declare their
commitment in a similar fashion. This will help India transition to a low carbon economy.
7Insights into Renewable Energy Adoption in India.
Contents
Executive Summary
	 Context
	 The Need for the Study and Study Methodology
	 Key Hurdles in Rapid Adoption
	 Conclusion
Reason for this study
Methodology and Scope
Background
	 A. India’s Renewable energy journey
	 B. Penetration of renewable energy in India
	 C. Current renewable energy goals
	 D. Projections for 2022 at the current rate of increase in renewable energy
	 Solar Power Projections
	 Wind Power Projections
	 Bio Power Projections	
Insights from Surveys and Interviews
	 Current Hurdles in Renewable Energy penetration in Corporate India
Good Policy gives Good Results
	 Key takeaways for western region
RE adoption by corporations in India
	 COP 21 and Implications on renewable energy Adoption
Intriguing Insights
	 Future thoughts in Renewable energy – Climate Parliamentarian
	 RE Ecosystem in India
Learning from the World – Good and Bad
Conclusion
Appendices
	 Appendix 1: Abbreviations and Definitions
	 Appendix 2: List of Tables
	 Appendix 3: List of Figures
	 Appendix 4: State-wise Policy Highlights
	 Appendix 5: Clearances & Permits for solar and wind projects in Maharashtra
	 Appendix 6: Renewable Energy Policy Brief, Brazil
	 Appendix 7: Learnings from the World
	 Appendix 8: CDP Scores and renewable energy Initiatives of selected Enterprises
	 Appendix 9: References
About Mahindra
About Treeni
About The Climate Group
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Reason for This Study
The global environmental status is scientifically proven to be increasingly threatened by climate
destabilization, and renewable energy (RE) plays a pivotal role in helping bring balance to the
ecosystem as well as human economies. This study was conceptualised at a crucial juncture of
climate policy, as international leaders met at Paris for COP21, where in a historic Paris agreement
on12th
December2015,195nationssetpathtokeeptemperaturerisewellbelow2degreesCelsius.
In the recent past, the Ministry of Environment, Forests, and Climate Change, Government of India,
has taken several policy initiatives to facilitate the role of renewables and simultaneously empower
“the billions at the bottom.” Notwithstanding the action or inaction of governments, it is necessary
for corporate entities to take up the task of empowering society through their initiative and
ingenuity. A majority of existing literature explores RE adoption challenges from the perspective of
a government or a utility. With increasing interest in corporate RE projects, there is a necessity to
delineate the challenges and opportunities, considering the corporate perspective.
Corporate renewable energy focus has been enhanced lately due to the formation of Low Carbon
Technology Partnerships Initiatives (LCTPI)4
by the World Business Council for Sustainable
Development (WBCSD), which aims to catalyse actions to accelerate low-carbon technology
development, and scale up the deployment of business solutions such that global warming is
limited to below 2°C. Pertinent to adoption of Renewable Energy is the RE 100 initiative5
which is
a collaborative, global initiative of influential businesses committed to 100% renewable electricity,
working to massively increase corporate demand for renewable energy. The top corporates in India
have deployed number of renewable energy projects in the last 10 years. Global companies such as
IKEA, Swiss Re, BT, Formula E, H&M, KPN, Mars, Nestlé, Philips, among others, are taking bold steps
to create transformative change needed to drive a clean energy revolution. They are all members
of RE100 – a global, collaborative initiative of influential businesses committed to 100% renewable
electricity. RE100 is led by The Climate Group in partnership with CDP, as part of the We Mean
Business6
coalition. Infosys and Tata Motors, headquartered in India, are part of the global list of
around 60 companies7
.
A survey was devised to elicit the insights and insecurities of professionals and experts who are
exploring investment and adoption of RE. This report analyses the realistic scenario of the existing
policy and technology developments with an aim to help corporations assess the gap between their
present state and a potential 100% RE scenario.
9Insights into Renewable Energy Adoption in India.
Methodology and Scope
The core approach adopted in developing this work is based on primary data obtained through
surveys, interviews, as well as desk-based research. Primary data was collected via survey and
interviews with companies based in Maharashtra, and secondary data on RE status, policies, and
obstacles is obtained for other states in the Western Region and India. The national status on
renewable energy progress, in terms of policy and technology is first drawn out by assessing the
historyofREgrowthandpenetrationinIndia,aswellascurrentgoalsforgrowthassetinthecontext
oftheCOP21ParismeetingsandtheIntendedNationallyDeterminedContributions(INDCs)stated
by the Government of India. Projections for RE based on current data and anticipated growth are
then made to identify the gap and potential for reaching the INDC goals. A thorough and detailed
state-wise analysis of supportive policy statements is also presented here to quickly and easily
inform readers about the scenario for RE progress in leading states.
ThehurdlestoREpenetrationidentifiedviathesurveyandinterviewsarevettedviaanindependent
evaluation of the present and potential challenges and opportunities for corporate adoption
and investment in RE. Learnings from India from past success stories, as well as other countries
are showcased to identify policy actions that strongly encourage RE progress. Insights from CDP
report data and interview comments are also included to give more nuanced understanding of the
obstacles for RE. This paper scope of the paper is centred on Solar and Wind as a major chunk of
INDC commitment will be fulfilled via this route. It does not dive into Biomass and Waste-toEnergy
adoption hurdles as that is a topic that needs to be discussed in detail separately.
Scope of the interactions is limited to companies and vendors with operations in the Western region
with special focus on Maharashtra. Corporate adoption challenges of both on-site off grid and grid
based solutions have been touched upon in this paper.
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Confederation of Indian Industry
Background
A. India’s Renewable Energy Journey
The World Economic Forum has identified climate change as one of the top global risks in their
2015 risk assessment8
, where climate change is directly related to energy consumption and the
ways by which required energy is produced. Just 90 companies across the world produce enough
greenhouse gas emissions every year to account for 67% of the global emissions leading to
climate change.9
Electricity generated from RE is considered to be carbon neutral and thus, have a
significant contribution towards climate change mitigation actions. It has been projected by World
Energy Outlook that “Over 50% of new generation capacity to 2040 comes from renewables and
nuclear”10
. Electricity generation accounted for about 38% of India’s total greenhouse gas emissions
in 2007.11
Installed capacity of grid-connected renewable energy projects in India has been steadily
increasing since 2010, and has spiked in 2015. The installed capacity of RE systems in India has been
moderate until 2014, with the cumulative total installed capacity of grid-connected RE systems in
India rising from 31.70 GW to 33.79 GW between March 2013 and December 2014. However,
there has been steep increase in RE in the year 2014-15, where it rose from 33.79 GW to 42.75 GW
by March 2016.
Figure 1: Cumulative Installed Capacity of
Grid-connected Renewable Energy Systems in
India, MW
At current levels of growth, the electricity
demand in India is projected to reach
2241 TWh by 2030. Owing to trends
such as increased urbanisation, need
for infrastructure development, and the
“Make in India” initiative that summons an
increase in local manufacturing. India has
declared an Intended Nationally Determined
Contribution (INDC) to reduce carbon
emissions by 33-35% below 2005 levels
by 2030. To achieve this goal, India will
have to avoid 3.59 billion tonnes of CO2
equivalent emissions over the current
‘business-as-usual’ status. The country
also aims for around 40% of the installed
power capacity from non-fossil fuel-based
energy sources by 2030. To achieve the RE
contribution to the total power capacity mix,
175 GW of renewable power capacity has to
be installed by 2022 and 300 – 350 GW by
2030. The development of RE technology
in India officially began in 1981 with the
11Insights into Renewable Energy Adoption in India.
formation of Commission for Additional Sources of Energy (CASE) in the Department of Science
and Technology (DST).
B. Penetration of RE in India
The RE sector has shown a CAGR of 15.42% from 2010 to 2015. The table and graph shows the
total RE capacity and growth in the RE installing -till March 2015 respectively.
A survey that received 32 responses from Indian companies shows that grid-connected solar PV
systems, wind power, and waste-to-energy systems appear to be the top choices for investment in
RE technology by organizations, with 50% of the respondents choosing each option.
The CDP India Report 2015 states that “[Indian] Organizations are getting more aware of
opportunitiesandareinvestingsignificantlyinupstreamrenewableenergyoptions.”13
Captivesolar
power, biomass-power, and solar water heating are also popular and seem to attract investment.
From the corporate perceptive, climate change, emissions reduction, and environmental pollution
concerns are the prime reasons for the organizations who responded to this survey to invest in
renewable energy.
Figure 2: Timeline of the development of RE in India.
Units, GW
Solar
Power
Wind
Power
Biomass
Power
Small Hydro
Power
Installed Capacity (March 2015) 3.38 22.65 4.18 4.03
2022 RE Goal as per INDCs 100.00 60.00 10.00 5.00
Total Potential Sources 748.99 102.77 25.09 19.75
Table 1: RE installed capacity as of March 201512
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Figure 3 Gap Assessment of renewable energy current installed capacity and total potential
Figure 4: Top Choices of renewable energy Technology for Adoption
Units,GW
13Insights into Renewable Energy Adoption in India.
C. Current Renewable Energy Goals
The renewable energy target for 2022 has been set as 175 GW, with a target of 100 GW from solar
power, 60 GW from wind, 10 GW from biomass and 5GW from small hydro power plants (less 25
MW installed capacity).
The new amended electricity tariff policy was published on 20 January 201615
. Following are the
major amendments made, in particular, to encourage development of renewable energy in India.
Regional break-down of RE Targets by Technology Statewise break-down of RE Targets (MW)
Figure 5: Reasons for renewable energy Adoption and Investment14
Figure 5: Reasons for renewable energy Adoption and Investment
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Confederation of Indian Industry
•	 RPO has been increased from 3% by 2022 to 8% by 2019, excluding hydro power. This shall be
mainly from solar power, thus increase in solar installed capacity to 69 GW by 2019.
•	 Solar and wind power are exempted from the inter-state transmission charges and losses. This
canpotentiallyboosttheinvestmentinsolarandwindenergyresourcerichstates.Greenenergy
corridors for evacuating renewable energy shall have a significant impact on the renewable
energy transmission between states. In December 2015, ADB has approved a loan of USD 1
billion for the “Green energy corridor” project by Power Grid Corporation of India Limited16
.
•	 The new coal based thermal power plants have to generate or procure at-least 10% of its
installed capacity from RE, after a specific date. The thermal power plants, due to their existing
energy evacuation infrastructure and scale, shall have advantage over the independent power
producer of renewable energy.
•	 The power generated from waste to energy plant shall be procured. 100% procurement of
power from waste to energy technology shall boost bio-energy generation.
Theamendmentsinthetariffpolicyalsoallowthebundlingofrenewablepowerwiththeconventional
coal power for which the PPA has been expired or the useful lifetime of the conventional coal power
plant is over. This will help in improving the affordability of renewable energy. The amendments in
the tariff policy have been made in view of the renewable target of 175 GW by 2022; however, the
policy is observed to be highly ambitious and without proper strategy and action plan, the changes
on the ground will be difficult to implement. The survey of 32 corporates shows that 63% of the
respondents are satisfied with this policy change, and 38% are not satisfied.
D. Projections for 2022 At The Current Rate of Increase in Renewable
Energy
The CAGR, as assessed for the year 2010-11 to 2014-15, of 6.58%, the renewable energy target
of 175 GW is projected be achieved in the 2033 as opposed to 2022 as targeted. Overall, these
projections predict that renewable energy target of 175 GWh by 2022 is not achievable at current
CAGR. To meet the renewable energy target of 175 GW by 2022, the renewable energy in India
needs to grow at the rate of 31% CAGR.
Figure 7 At Current CAGR of 6.85%, INDC goals will be reached in 2031
15Insights into Renewable Energy Adoption in India.
In terms of technology solutions, the main observation is that a majority of the survey respondents
(84%) choose Waste-to-Energy as the primary technology option where infrastructure should be
created for the realization of renewable energy targets by 2022. However, it is to be noted that the
largest fraction of the renewable energy targets is the 100 GW goal for solar power, and 66% of the
respondents agree that development of solar parks is necessary for reaching this goal.
Figure 8: To achieve INDC goals by 2022, CAGR should increase to 31% or more
Figure 9 Developments required to reach the renewable energy goals by 2022
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Confederation of Indian Industry
“In terms of renewable energy technology, we are mainly exploring solar because it matches with our
load curve and has good ROI. We are also exploring other renewable sources for our future requirement.
With renewable energy installations, one has to make sure that the installed plant is performing at the
anticipated level, since down time or un-used assets are not profitable”. -Infosys
“The installation of 100-GW solar PV systems by 2022 is vital to the success of India’s INDC statement the
COP21, Paris. India’s INDC have been correctly made keeping in mind both, our need for growth and care
for the environment. Royal DSM is a RE100 signatory and all our decisions are driven by this commitment.
In India, DSM has operations at 6 sites, of which one already gets more than 50% power from renewable
energy sources. (Pune – 1 MW technology demonstration PV plant also serves to meet that sites renewable
energygoal). Moresites areconsidering solarpower overnext12-18months.Theseinitiativesaredrivenby
sustainability goals and it gets better when they become commercially viable too. We are still in early days
for solar in India. Most policies and procedures are going through a transformation, targeted at accelerating
adoption of solar in India.” – DSM, India
“While there is progress and excitement around COP21, it may not help achieve 100% renewable energy
target, since that is very difficult to implement on the ground. The facilitation in regulatory environment is
notyetcreatedtoenableashifttowards100%renewableenergy.Ecosystemhastobemodifiedtofacilitate
it. There are no internal challenges, since there is common agreement on renewable energy initiatives,
but external factors such as cost and regulatory framework around renewable energy has is the main
obstacle.RE should become at-par with grid tariff in order for companies to take it up more aggressively.
SERCs sometimes stop companies from using power from their own captive plants. Long term strategy of
renewable energy procurement is set, with the goal of achieving 50% reduction in per capita emissions by
2020 using 2008 as baseline year. Science based goals are way ahead for us. However, renewable energy is
on the radar and there is common agreement for pursuit based on our own maturity cycle.”
– Prominent IT Major.
Solar Power Projections
Figure 10 At current CAGR (27.58%), 100 GW solar targets can be reached in 2028
17Insights into Renewable Energy Adoption in India.
Wind Power Projections
Figure 11 To achieve the 100 GW solar goal by 2022, we need a 90% increase in CAGR
Figure 13 To achieve INDC goals by 2022, CAGR should increase by 40% to 13.45%
Figure 12 At Current CAGR (9.61%), INDC goal for Wind power can be reached in 2025
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Confederation of Indian Industry
Bio Power Projections
Figure 14 At current CAGR (9.6%), INDC goal for Bio power can be reached by 2025
Figure 15 To achieve INDC goal of 10 GW Bio power by 2022, CAGR needs to be 11.78%.
19Insights into Renewable Energy Adoption in India.
Insights from Surveys And Interviews
Current Hurdles in Renewable Energy Penetration In
Corporate India
Based on our interaction with various top corporates such as Infosys, DSM, Yes Bank, Mahinda and
Mahindra, Tata Motors, Tech Mahindra, Dr. Reddy’s, TCS, ACC etc in India, and key vendors in this
space via surveys and one-on-interviews the key hurdles can be bundled into 5 major sections.
“The process of reverse tendering has resulted in investor bidding for tariff which is below the project
financial feasibility. This acts as constraint in encouraging investment. It has been suggested that Feed-In
Tariff is a better option as the investor is aware of the tariff. Implementation of FIT for all renewable energy
supplyingpowertogridshallimproveinvestmentinrenewableenergy.Thenow-prevalentreversetendering
process is not beneficial since it gives little time for careful planning. Investors should plan properly first.”
“Currently, there is no policy in relation to the quality of the product used in solar rooftop and SPV large
projects. The policy needs to be supported by strong legislation. Moreover, there is deferred investment
thinking, since solar prices are crashing. In reality, several solar professionals need to understand the
technology well enough to make it succeed.”
“There needs a proper understanding of the relationship between continuously falling tariffs which bounds
developers to invest into comparatively lower quality product specifically PV Modules to meet the ROIs.
Strict guidelines with respect to PV Modules and inverters for country like India with diversified climate is
essentially required to make sure that our multi-billion dollars (Almost 6,00,000 Crores INR) of investment
is profitable.”
The above comments are attributed to Infosys Ltd.
“In addition, Infrastructure for power evacuation and transmission is considered as the major bottleneck
Figure 16: Major Hurdles in renewable energy Adoption
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or hurdle. State utilities are not financially healthy enough to take care of the power evacuation and
transmissioninfrastructure.Writing-off theloansofSEBscanbewayforimprovingfinancialhealthofSEBs.
Laid-back attitude of state utilities also acts as constraint in the development of renewable energy. Coal
India and NTPC are involved in infrastructure investment.” – Independent Consultant 1 (RK Mandoli)
“One of the biggest drivers needed to achieve the 100-GW goal would be to attract adequate investment
and funding. Another key challenge we foresee could be compromise on quality of the panels used. If we use
sub-standard panels to reach this ambitious goal, it will impact the long term feasibility of solar and derail
the entire thrust and optimism towards it.” – Prominent Indian Power Company
“The first and foremost challenge is the need for a positive mind-set and willingness to adopt renewable
energy. The JNURM had defined a national solar mission at a part of NAPCC (National action plan on
climate change). Currently the PM is pushing for an aggressive solar adoption. However, this is not
percolating down at grass root level and increasing adoption.
There is a marked gap in what the Centre and State say and do, in terms of renewable energy. Centre wants
renewable energy adoption in all states; however, at state level, there is no provision to make adoption
happen on the ground. Power is a state subject. Oil and Coal is a central subject. If renewable energy
adoption has to increase then renewable energy power should be a central subject and the states must
make provisions for higher adoption of renewable energy. From countries energy security point of view the
– India is heavily dependent on oil imports.
Wind energy adoption in India has been successful, Biomass there is an issue of storage and assured
availability, solar has potential in this country. Solar is DC – lots of devices like LED, laptops, chargers can
accept DC current. If 2 types of wiring systems are available then adoption could be influenced In India very
few biomass plants have come up. 5000 MW of wind set up in India.
Capacity utilization factor of wind and solar power plants is another issue. The capacity utilisation of solar
is 20-25%. Tracking panels may increase cap utilisation but that increases the cost. Wind has a higher cap
utilisation factor. If wind and solar both are combined in the same area the cap utilisation factor can be
raised yielding higher power.”
All above comments attributed to Independent Consultant 2 (Atul Shah)
Major Hurdles to RE Adoption
1.Awareness and anticipation of new renewable energy technology.
Description
It has been observed from the survey outcome that 50% of the corporates consider deferred
investment due to the technical maturity, continuous development and anticipation of new
renewable energy technology and more cost-effective technologies.
21Insights into Renewable Energy Adoption in India.
Ithasalsobeenindicatedbythecorporate,duringinterviews,thatthereisgapintheimplementation
of central policies at state level. The lack of awareness on renewable energy policies in State
Electricity Boards and SERCs acts as a hurdle in the process of renewable energy implementation.
The need for capacity building, i.e., to develop awareness among non-technical professional who do
not fully understand renewable energy and Climate Change, has been identified. Mostly companies
whose top management is convinced and committed to RE, work with power and renewable energy
consultants to help them in choosing the right technology. Some companies mentioned that the
top management would like to see the business case for various options and then choose the most
suitable one and hence easy to use tools, where ROI of projects can be worked out by the companies
themselves would be wonderful.
2. Technical evaluation and feasibility.
Description
Issues such as (a) variability of resource availability, (b) storage of excess power generated by
renewable energy and (c) feeding of power to the grid have been identified as the main technical
constraints in the implementation of renewable energy.
Solar roof-top installations encounter constraints in terms of old building structure. Since the GHG
emissions from buildings accounts to over 35% of total emissions, new buildings must be designed
to handle solar installations.
Theexistingpowertransmissionanddistributioninfrastructureneedstechnologicaltransformation
to eliminate power loss, including transmission & distribution (T&D) loss and power theft. The
survey shows that 63% of the respondents consider development of smart grids as the most
important infrastructure that can encourage organizations to invest in RE, followed by research
and development infrastructure and local manufacturing facilities.
Figure 17 Main external reasons for inertia in renewable energy adoption
22
Confederation of Indian Industry
Technical evaluation of large-scale deployment of solar PV systems in India encounters barriers due
to lack of testing facilities and qualified experts who can test and certify solar products, as well as
the capability to qualify and demonstrate viability of solar modules based on local conditions.
Nearly 60% of the respondents are interested in new renewable energy technologies that enable
extraction of energy from landfills, sewage, and municipal solid waste.
Concerning the ecosystem of infrastructure and technology around RE, a large majority of the
respondents (63%) clearly indicate that improvements in the power output per unit installed
capacity can largely influence organizations’ decision to invest in renewable energy.
It has been a general observation that solar power technology is constantly upgrading and is in the
path to be a business case for profitable investment. However, solar is yet to mature as technology
Figure 19 Most Interesting New renewable energy Technology Options
Figure 18 Most important infrastructure development for renewable energy progress
23Insights into Renewable Energy Adoption in India.
to invest and other mature technologies such as micro-hydro, wind, should be further encouraged.
Wind is most developed in terms of policy, process, and awareness and is a mature technology.
3. Implementation.
Description
Implementation phase of renewable energy generation encounters hurdles in
	 A) land acquisition and space availability,
	 B) identification of vendor and EPC service provider,
	 C) lack of awareness of the related policies.
Solar and wind renewable energy systems demand large space per unit of power generation.
Furthermore, investors find it difficult to identify the appropriate vendor and EPC service provider
in the current vendor environment.
34% of the survey respondents indicate that identification of vendors is an issue and 19% of the
respondents identified land acquisition as a constraint.
Implementation of solar power, specifically in urban areas, encounters acute space constraints.
Currently, states do not have any system or policy to lease out land from the land banks to offer to
renewable energy investors and incentivize land owners, to overcome space constraints.
Implementation hurdle for waste to energy projects are collection of wastes and waste volumes.
Wind adoption has been successful so far. Going forward, implementation hurdle for wind are state-
wise policy constraints.
For both solar and wind implementation hurdles are around lack of alignment of central and state
governments. Some states are more pro renewable energy as compared to Maharashtra.., namely
Karnataka and Telangana Implementation can be streamlined for vendors if at least for public.
sectors renewable energy investors common guidelines for installation are drafted by NTPC,
PGCIL, CEA. This would reduce the long wound process of project implementation.
Figure 20 Main improvements required to ecosystem surrounding RE
24
Confederation of Indian Industry
Practical implementation challenges for organisations that work out of leased facilities(such
as banks with remote sites), shared sites(such as BTS), project based operations at sites(such
as construction and heavy engineering infra firms) which are temporary make adoption and
implementing renewable energy instead of diesel a distance dream.
4.Finance.
Description
High capital cost and low cost effectiveness of RE, particularly solar power technology, acts as a
major hurdle in investment. Investment in renewable energy is yet to become a profitable business
case that is economically sustainable for corporates.
Figure 21 Main constraints to renewable energy project implementation
Figure 22 Main reasons for corporates to invest in RE
25Insights into Renewable Energy Adoption in India.
Therefore, there is absence of corporate strategy and budget allocation in renewable energy
investment at present.
The survey results indicate that corporate strategy statements are the vital mechanism (69%) that
influences renewable energy investment decisions at organizations that responded to this survey,
followed by ROI or Cost Benefit Analysis and the processes for identifying emissions reduction
opportunities.
Concerns about high ROI and low payback period are the key main internal obstacles to adoption
of (and investment in) renewable energy at 63% of the organizations responding to this survey.
Allocation of budget for renewable energy projects is another difficult obstacle on this path.
“Foreign exchange fluctuations are also a concern: for instance, projects that were financially closed when
thedollarwasat$63,aresufferingfromapercentagehitsincethenatpresentrates,affectingtheirbusiness
model and IRR. Since solar is an infirm power, investments in grid balancing is also required. Adding to this,
therearefrequentchallengesofacquiringlandinashorttime.Lastly,majorityofthe100GWprojectswillbe
handled predominantly by private sector solar companies as well as few Government entities. Accordingly
health and intent of state distribution companies will also play a pivotal role in long term perspective. If the
system of reverse bidding continues with possibilities of lowered unfeasible prices, thereby making these
projects unviable in case of any untoward change in input cost, and hence developer can opt out.”
– Prominent Indian Power Company.
It has been a general indication during the survey interviews that investment in renewable energy
is also done to avoid high HT or commercial tariff. 47 % of the respondents agree that lower
interest rates for renewable energy loan can spur investment, while 31% agree that streamlining
paperwork pertaining to loans from banks or the government as the most vital external action that
can encourage organizations. Project financing is tough for small projects.
Figure 23 Main Internal Obstacles to renewable energy Adoption
26
Confederation of Indian Industry
“The bottom-line for renewable energy progress is the financial aspects of investment and installation of
renewable energy. Subsidies matter! Organizations should be given financial support. In addition, there
is need for capacity building, to develop awareness among non-technical professional who do not fully
understand renewable energy and Climate Change. This awareness should increase even among top-level
decision makers and management so that they get a good idea of the benefits of RE, combined with ease of
adoption. SEBI has made BRR mandatory for Top 200 companies. Similar specific guidelines for renewable
energy adoption could be offered by SEBI to Top companies in the market, and the regulatory authority
could conduct audits on progress of renewable energy installation and investments, showing not just
commitments, but also clear action plans.” – Dr Reddy’s labs
5. Policy implementation and government clearance
Description
Implementation of policy at state level has been identified as one of major hurdles in renewable
energy development in India. The issues related to policy implementation are:
Implementation of RPO: Lack of strong compliance implementation of RPO has resulted to the
failure of REC market. Since, the actual adaptation of RPO is poor and there are no actions taken
against non-compliance with RPO, the demand and the market for Renewable Energy Certificates
(REC) has not developed. Currently, the price of REC is lower than that for generating renewable
energy or buying renewable energy power from grid.
“Companies buy solar power to meet the RPO. Due to the low implementation of RPO and RGO, REC
market has not developed. Strong RPO compliance implementation is required for the renewable energy
market to develop. REC is cheaper than buying renewable energy power. However, strong implementation
of these regulations will ensure renewable energy growth even if renewable energy captive generation does
not make business case. Also, investment in renewable energy is mostly done to avoid the high commercial
Figure 24 Main external actions that can boost renewable energy Investments
27Insights into Renewable Energy Adoption in India.
power tariff. (This is particularly true for service sector like BPO, IT etc. which have huge infrastructure).”
– ACC Limited
Government clearances: Ease of doing business and obtaining government clearances act as
barriers in development of renewable energy. There is also lack of awareness on renewable energy
regulations and policies at the state level agencies.
44% of survey respondents identified lack of single window government clearances ass a major
external hurdle encountered by corporates.
Policy adoption: The onus for implementation of national policies lies with the state government,
but the adoption of national policies on renewable energy by states is low in India. Even though
Open Access and Net Metering have been introduced in the national renewable policy, in states like
Maharashtra,thereisalackintheimplementation.Noenergybankingwasallowedinopenaccessin
Maharashtra as per Distribution open access policy 2014. The lack of these policies implementation
in Maharashtra has resulted in reduced cost effectiveness of renewable energy and increased cost
of captive generation of renewable energy at the demand side.
Policy around coal usage: Due to the reduction in the price of coal, the cost of conventional coal
power is lower than power generated from renewable energy.
Lack of incentive structure: In the current scenario, there is no incentive structure for procuring
green power or investing in renewable energy.
At least 66% of the respondents opine that offering encouraging incentives for innovation in
renewable energy is the main policy change that can enable organizations to invest in renewable
energy. 59% of the respondents also call for reduced renewable energy power tariffs for buyers as a
Figure 25 Lack of single window clearances is an obstacle
28
Confederation of Indian Industry
meansforincitinggreaterpurchaseofrenewableenergy.69%oftherespondentscallforsupportive
government incentives for investment in renewable energy and for generation, and 47% favour
better government subsidies as the most vital external action that can encourage organizations.
It is a general observation that strong implementation of regulations will ensure renewable energy
growth even if renewable energy captive generation does not make an immediately profitable
business case.
Figure 26 Policy changes that can spur renewable energy adoption and investment
Figure 27 External financial environment for renewable energy progress
29Insights into Renewable Energy Adoption in India.
Good Policy Gives Good Results
It has been observed from the “Tentative State-wise break-up of Renewable Power target to be
achievedbytheyear2022”byMNREthatofthetotalrenewableenergytargetof175GW,99.53GW
is from solar, with 60GW from solar project and 40GW from solar rooftop, and 60GW is from wind
energy. In view of this, the policy conditions are analysed for the states mentioned in Table 3 and
detailed the policy highlights are provided in relation to solar and wind energy for mentioned states
in Appendix 4.
The top states of India with highest renewable energy installation for wind and solar power are
Tamil Nadu, Gujarat, Rajasthan, Maharashtra, Karnataka and Andhra Pradesh.
It is observed from Table 3, as of 1 March 2016 Tamil Nadu, Telangana, Rajasthan, Andhra Pradesh
and Madhya Pradesh are the top states in terms of solar capacity addition. Furthermore, Rajasthan,
Madhya Pradesh, Karnataka, Gujarat and Maharashtra are the top five states showing wind power
capacity addition.
It is observed that Maharashtra has the lowest capacity addition in solar power, among below
mentionedstates,followedbyGujaratandKarnataka.Intermsofwindcapacityaddition,TamilNadu
showed the lowest capacity addition, followed by Andhra Pradesh and Gujarat. Only Rajasthan and
Madhya Pradesh are the two states who are among the top 5 states in capacity addition for both
wind and solar. Variations across India in open access costs/tariffs, wheeling /banking charges and
other open access charges make it difficult for companies to adopt renewable energy in reality.
* Andhra Pradesh numbers include current Telangana State
State/UT Installed capacity Potential
Solar in MW Wind in MW Solar Wind
As on March
2015
As on 1st
March 2016
As on March
2015
As on 1st
March 2016
In MW In MW
Andhra Pradesh 247.46 475.74 *912.5 *1155 38440 *14497
Goa -- -- -- -- 880 --
Gujarat 1000.05 1024.15 3581.3 3876 35770 35071
Karnataka 78.22 104.22 2548.7 2886 24700 13593
Madhya Pradesh 563.58 678.58 567.3 1200 61660 2931
Maharashtra 363.7 378.7 4369.8 4638 64320 5961
Rajasthan 1047.1 1264.35 3052.7 3877 142310 5050
30
Confederation of Indian Industry
Though progressive companies are trying best at all levels, it is very difficult for companies to meet
renewable energy 175 MW Goal in absence of clear policies and even different policies in different
states. For example in state of Maharashtra and Tamil Nadu there are plenty of different kinds of OA
charges that makes the state not very investment friendly.
The western states, namely, Maharashtra, Goa, Madhya Pradesh and Gujarat have been considered
for the analysing the policy enablers, policy related hurdles and plausible solutions.
Enablers, hurdles, and possible solutions for Western Region states
States : Maharashtra | Topic : Land
Topic : Policy
Enablers Hurdles Possible solutions
Land acquired will be
granted deemed status of
Non-agricultural land.
Government land, if
available, for solar parks
and manufacturing of solar
modules/panels/etc. shall
be given 50 % discount on
lease/rental charges.
Availability, identification and
acquisition of land for
implementation.
Identification and availability of state’s land
bank for the implementation and easy approval
of land.
Implementation of solar parks by Govt.
Incentive, such as reduction on the stamp duty.
Enablers Hurdles Possible solutions
Inter-state and intra-state
open access is allowed.
Exemption of electricity
duty for solar for 10 years.
Re-powering of old WTG.
Solar rooftop, with net
metering: Energy banking
for 1 year.
Supervision charges
levied by the TRANSCO/
DISCOMS for renewable
energy power evacuation
lines are exempted.
No power banking allowed for
solar and wind power plants.
Sourcing of power from multiple
renewable energy generator
through open access is not
allowed.
No “must run” status for solar.
“Merit order dispatch” principle
applicable.
No exemption in wheeling,
CSS, T&D charges and power
scheduling. Minimum 1MW
capacity for wheeling power.
No exemption in registration
cost for small scale installation in
private space.
Allowing power banking for 1 year and removal
of power scheduling as per draft Distribution
Open Access regulation, 2015.
Regulation should allow multiple sourcing of
renewable energy (wind, solar) through open
access.
Exemptionofwheeling,T&D,CSSforrenewable
energy energy.
Providing “Must run” status for solar plants,
thus removing “Merit order dispatch” principle.
Reduction in the minimum capacity.
Removal of registration cost for small scale
rooftop solar or wind (less than 100 kW)
installation in private space.
Exemption of demand cut for solar rooftop, as
provided in Gujarat.
State/UT Installed capacity Potential
Solar in MW Wind in MW Solar Wind
As on March
2015
As on 1st
March 2016
As on March
2015
As on 1st
March 2016
In MW In MW
Tamil Nadu 147.98 635.87 7394.0 7515 17670 14152
Telangana 62.75 392.39 * * 20410 *
Table 3 State-wise Current Installed Capacity and Potential for Solar and Wind Energy17
31Insights into Renewable Energy Adoption in India.
Topic : Ease of business
Solar and wind Installed capacity 18
378.7 MW solar installed capacity. 4638 MW wind installed. 52MW solar rooftop installation.19
States : Goa | Topic : Land
Topic : Policy
Topic : Ease of business
Enablers Hurdles Possible solutions
Exempted from NOC/PCB
clearance.
No single window clearance – there
are about 6 numbers of permits/
clearances required for solar and wind
project installation. (List of clearance in
Appendix 5)
No time-line for the approval, thus
affecting project implementation time.
Ease of availability of information in
single source is lacking.
Introduction of single window clearance
facility. Specifying time-line and turn-
around time for the application.
Allow start of project implementation
immediately upon submission of
application and fee.
Providing all requisite information
regarding policy, regulations, list of
permits, clearances and approvals in a
single source for ease of use.
Enablers Hurdles Possible solutions
Identifying large land for solar park
development though private- public
partnership.
Lease rooftop or private land for solar
rooftop installation with net metering.
No concession in demand cut
for wind and solar captive use.
No concession in the land
acquisition requirements for
renewable energy.
Land acquired for renewable energy
power can be deemed as non-
agricultural land.
Provide incentive, rebate in govt.
land, and concession in stamp duty.
Development of state land bank.
Enablers Hurdles Possible solutions
Solar projects exempted from
wheeling, banking, cross subsidy
and T&D losses charges. Grid
connected solar projects, selling
power to grid, considered as
“must-run” Solar rooftop, with net
metering, allowed power banking
for 1 year. Open access – within
Goa and other union territories.
State renewable energy policy is still
in draft stage. Open access is limited
to union territories. Power bank-
ing is limited to 30% of the annual
generation capacity for solar rooftop.
No power banking is allowed for
ground mounted solar, installed for
selling power.
No exemption of energy scheduling
and demand cut.
Implementation of state renewable
energy policy. Removing limitation of
open access within union territories.
Removing ceiling of power banking for
rooftop solar.
Allow power banking for
ground mounted solar plants.
Exemption of demand cut and
power scheduling shall encourage
investment.
Enablers Hurdles Possible solutions
Payment is made within 30
days from the bill submission by
generator.
Electricity duty is exempted for
power generation from solar
projects.
Single window clearance in draft
stage.
No special clearance exemption for
solar projects.
No timeline on the approval and
turn-around time for applications.
Lack of ease in finding requisite in-
formation.
Implementation of single window
clearance.
Exemption of NOC/PCB clearance.
Introduction of specific time-bound
turn-around time for approvals and
clearances.
Provide all requisite information
regarding policy, regulations, list of
permits, clearances and approvals in a
single source for ease of use.
32
Confederation of Indian Industry
Solar and wind Installed capacity 18
As of Jan 2016, there was no installed capacity of solar.
States : Madhya Pradesh | Topic : Land
Topic : Policy
Topic : Ease of business
Solar and wind Installed capacity 18
678.58 MW solar installed capacity.
1200 MW wind installed capacity.
9MW solar rooftop installed.
Enablers Hurdles Possible solutions
No land limit for solar projects in
private land.
Private land purchased has 50%
concession in stamp duty.
Govt. land allotment to bidder is based
on the maximum free energy/MW
offered by bidder.
Private land purchased for
renewable energy projects is not
deemed as non-agricultural.
No policy on identification and
development of state land bank
for availability of land.
Land acquired for renewable energy
power can be deemed as non-
agricultural land.
Provide incentive, rebate in govt.
land.
Development of state land bank and
implementation of solar park.
Enablers Hurdles Possible solutions
No registration cost is applicable
for installing small scale WTG or
Wind Solar hybrid plant (up to
100 kW) at a private rooftop or
land.
Industry status for solar and wind
projects.
No licence for solar project,
generating and distributing
power in rural area.
No single window clearance.
No special clearance exemption for
solar projects.
No timeline on the approval and
turn-around time for applications.
Lack of ease in finding requisite
information.
Implementation of single window
clearance.
Exemption of NOC/PCB clearance.
Introduction of specific time-bound
turn-around time for approvals and
clearances.
Provide all requisite information
regarding policy, regulations, list of
permits, clearances and approvals in a
single source for ease of use.
Enablers Hurdles Possible solutions
Intra and inter-state third party power
sale is allowed
For third party sale of wind power
within state, Government of MP
provides grant of 4% in terms of energy
injected.
For solar power, Govt. of MP provides
grant of 4% in terms of energy injected.
Power banking allowed for 1 year.
Electricity duty and cess not applicable
for 10 years.
Contract demand reduction is allowed
for buying wind and solar power.
Banking charge of 2% energy
banked is charged.
No “must run” status for solar.
“Merit order dispatch” principle
applicable.
Solar rooftop policy is in draft
stage and yet to be implemented.
(Highlights of draft policy in an-
nexure).
No exemption of demand cut and
energy scheduling.
Providing “Must run” status for solar
plants, thus removing “Merit order
dispatch” principle.
Removing wheeling, banking and
T&D charges for renewable energy
power.
More than 100 km power
evacuation line can be erected by
state TRANSCO.
Approval and implementation of
solar rooftop policy as the soonest.
Exemption of demand cut and
energy scheduling shall encourage
investment.
33Insights into Renewable Energy Adoption in India.
States : Gujarat | Topic : Land
Topic : Policy
Topic : Ease of business
Enablers Hurdles Possible solutions
Allotment of waste land,
based on availability.
Availability and identification of land
for implementation.
Private land purchased for renewable
energy projects is not deemed as non-
agricultural.
Development of state land bank.
Implementation of solar parks by Govt.
Incentive, such as reduction on the stamp
duty.
Land acquired for renewable energy
powercanbedeemedasnon-agricultural
land.
Enablers Hurdles Possible solutions
Inter-state and intra-state open access is
allowed.
Beyond 100 km, the evacuation line from
wind farm, is implemented by GETCO.
No wheeling charge for solar rooftop
with net metering.
50% of normal wheeling and T&D charges
for captive solar plant under REC.
Power banking is allowed for 1 billing
cycle for solar rooftop with net metering,
non REC solar project – captive and third
party sale and captive wind projects.
Solar rooftop exempted from 100%
demand cut for residential and 50%
demand cut exemption for industrial and
other consumers.
Captive wind and solar are exempted
from demand cut up-to 30% and 50%
respectively.
Electricity duty exempted for all types
of solar power projects and for wind
projects, except in case of third party
sales.
CSS exempted for solar rooftop. 50%
surcharge for non REC solar project.
No complete exemption of
wheeling charges for wind and
solar power.
No power banking facility for
wind power for third party sale.
No “must run” status for solar.
“Merit order dispatch” principle
applicable.
No concession in wheeling
charge for third party wind pow-
er and captive consumption at
66kV.
Policy does not address any ex-
emption on the cost of registra-
tion of small solar rooftop.
Solar rooftop capacity is limited
to 50% of contract demand and
load.
Unlike wind project, no policy
mentioned implementation of
power evacuation line by GET-
CO from solar plants, beyond
100 km.
No exemption of energy sched-
uling.
Removing wheeling, banking and
T&D charges for renewable energy
power.
Allow power banking for wind
project – third party sale.
Providing “Must run” status for solar
plants, thus removing “Merit order
dispatch” principle.
Re-powering of old WTG can
allowed.
Removal of registration cost for
small scale rooftop solar or wind
(less than 100 kW) installation in
private space.
Solar rooftop capacity limit is
suggested to be increased.
Policy to specify and implement
that the power evacuation line,
beyond 100 km from solar farm to
be erected by GETCO.
100% demand cut exemption for
industrial consumers can encourage
solar rooftop installation.
Exemption of power scheduling for
renewable energy
Enablers Hurdles Possible solutions
Solar power and wind are
exempted from NOC/PCB
clearance.
No single window clearance facility
No specific time line of the
approval or erection of the power
evacuation facility, beyond 100 km
from wind farm.
No timeline on the approval and
turn-around time for applications.
Lack of ease in finding requisite
information
Implementation of single window clearance.
Specify timeline for erection of power
evacuation facility, beyond 100 km from wind
farm.
Introduction of specific time-bound turn-
around time for approvals and clearances.
Provide all requisite information regarding
policy, regulations, list of permits, clearances
and approvals in a single source for ease of
use.
34
Confederation of Indian Industry
Solar and wind Installed capacity 18
1024.15 MW solar installed capacity. 3876 MW wind installed. 44MW solar rooftop installed
capacity.
___________________________________________________________________________________________________________
It is observed that issue and its possible solutions, as mentioned below, will build a conducive
renewable energy environment:
•	 Development of land bank by states, streamlined and quick procedure of land acquisition and
providing deemed status of non-agricultural land upon acquisition of private land for RE.
•	 Provide single window clearance, time-bound turn-around time for approvals and clearances
and specific timeline for facilities that are to be provided by state utility like TRANSCO/
DISCOMs.
•	 Allow open access, with multiple power sourcing, and power banking facility
•	 Providing “must-run” status for renewable energy projects.
•	 Demand cut exemption for residential as well as industrial and commercial consumers.
In addition, allowing re-power of old WTGs, availability of information is systemic manner, better
incentive structure will increase ease of doing business and encourage investments. The details on
issues and possible solutions of each state are provided in the above table.
Although the availability of potential is the key criteria for the magnitude of renewable energy
development, it is understood that the relevant state policies around renewable energy plays a
significant role in the development of renewable energy in the state. Below are the policy analysis
and ease of business in Telangana, Andhra Pradesh, Tamil Nadu, Rajasthan and Karnataka.
35Insights into Renewable Energy Adoption in India.
Enablers, hurdles, and potential solutions for other select states
States : Telangana
Land:
Solar parks implementation is done by the state. Deemed conversion to Non-agricultural land
status. Exemption of land ceiling act.
Solar & wind installation , as on 1 March 2016
Solar rooftop, as of Oct 2015
392.39MW installed capacity of solar power (Appendix 6). 28MW solar rooftop installation.
States : Andhra Pradesh
Land
Allotment of revenue land as per availability. Private land to be procured by developer.
Solar & wind installation , as on 1 March 2016
Solar rooftop, as of Oct 2015
Installed capacity as of 1 March 2016 - 475.74 MW. 1155MW wind, which includes data of
Enablers Hurdles Possible solutions
Exemption of supervision charge by
TRANSCO/DISCOM.
Power banking for 1 financial year.
Exemption of T&D and wheeling charge-
captive or third party sale on 33kV line.
Exemption of T&D charges within state.
Exemption of Electricity Duty in case of sale
of power to AP Discom by wind projects.
Exemption of electricity duty Solar Power
Projects setup within the State.
Exemption of CSS third party sale for solar
power projects setup within the State for 5
years from the date of commissioning.
Intra-state and inter-state open access for
third party sale.Intra-state open access for
captive generation.
No deem non-agricultural
land status.
No “must-run” status for
solar power, as given in
Telangana.
No exemption of banking
charges.
No inter-state open access
for captive generation.
No exemption of demand
cut.
No exemption in energy
scheduling.
Wind energy projects: All approvals
and clearances within 30 days from
the date of registration.
Solar Rooftop projects: All approvals
and clearances within 14 days from
the date of application.
Technical feasibility for evacuation
within 14 days from the date of
receipt of application.
All wind and solar power projects
are exempted from obtaining PCB
clearance.
Open access turn around within 21
days, else deemed permitted.
Enablers Hurdles related to policy Possible solutions
Solar parks implementation is done
by the state.
Deemed conversion to Non-
agricultural land status.
Exemption of land ceiling act.
Energy banking for 100% of energy
during all 12 months of the year.
“Must-run” status.
100% refund of VAT/SGST and
100% refund of Stamp Duty for
land purchase.
Exemption of CSS for 5 years,
wheeling for captive use, electric-
ity duty.
Single window clearance
PCB clearance within 7 days and NOC
from Grampanchayat with 14 days.
Grid connection approval within 21
days.
Closure of technical feasibility with 30
days.
36
Confederation of Indian Industry
32MW solar rooftop installation.
States : Karnataka
Land:
Deemed status of non-agriculture land. Land bank for respective renewable energy technology
shall be generated by the concern government department. The government lands, such as barren
land and forest land will be developed by Karnataka renewable energy Development Limited.
Change or shifting of location is not permitted under the policy.
Solar & wind installation , as on 1 March 2016
Solar rooftop, as of Oct 2015
104.22 MW –solar power of installed capacity. Wind installed capacity of 2886 MW. 34 MW solar
rooftop installation.
States : Rajasthan
Enablers Hurdles Ease of business
Exemption of solar power banking
charge for 10 years
Exemption of wheeling and CSS
for 10 years for solar projects
commissioned between 1st April
2013 and 31st March 2018.
Captive solar project can opt for
REC, paying normal charges as per
KERC.
Re-powering old wind generator is
allowed.
Urban buildings are likely to be
exempted from floor-area-ratio
with respect to the floor area
created for solar rooftop.
Solar rooftop tariff of 9.56 INR/
kWh for unsubsidised systems and
7.20 INR/kWh for systems availing
a 30% central subsidy.
“Surya Raitha System” to
encourage farm land owner to
install 1MW to 3MW solar PV
system. Power can be sold to grid.
No timeline on processing of appli-
cation for evacuation line.
No exemption in open access and
wheeling charges for wind proj-
ects.
No “must run” status for solar pow-
er, as given in Telangana and union
territories.
No exemption of demand cut
No exemption in energy schedul-
ing.
The wind energy project installation
can start immediately upon submission
of application and requisite fee.
Single window clearance - Karnataka
Renewable Energy Development Ltd
acts.
Departmentalclearancewithin90days.
Forest clearance within 120 days.
Enablers Hurdles Possible solutions
Inter-stateandintra-stateopenaccess
allowed. Power banking allowed for
captive generation for billing cycle.
Exemption of banking and wheeling
charges and cross subsidy surcharge
for solar rooftop. Solar rooftop energy
banking allowed for a month and
credit will be carried forward to next
period to the extent of 50 units.
No exemption in transmission and
wheeling charges for captive and
third party sale.
Exemption from State Pollution
Board clearance.
Exemption from grampanchayat
NOC for wind farms in govt. land.
37Insights into Renewable Energy Adoption in India.
Land
Procure of private land for renewable energy projects allowed. The conversion of private land to
industrial land done at the charge of 10% of the charge levied for industrial purpose. Govt. land
for wind farm at 10% of District Level Committee (DLC) rates on first cum first served basis, with
a maximum land allotment of 5 hectare/MW. The sub-lease of land for wind farm development is
allowed.Govt.landallotmentsolarparksandsolarPowerProjectsaspertheprovisionsofRajasthan
Land Revenue, Rules 2007. (details in appendix 4) No land conversion is required for setting up
solar projects. Farmers are allowed to install or sub-let solar projects in their land without land
conversion. Land allotment for solar power projects done on the refundable payment of 5lac INR/
MW to RREC.
Solar & wind installation , as on 1 March 2016
Solar rooftop, as of Oct 2015
1264.35MWsolarinstallation. 3877MWwindprojectinstallation.32MWsolarrooftopinstallation.
States : Tamil Nadu
Land:
Land acquisition is the responsibility of the investor. Subjected to availability, industrial estates
shall be allocated for erection of solar power plants.
Solar & wind installation , as on 1 March 2016
Solar rooftop, as of Oct 2015
635.87 MW capacity solar and 7515 MW wind.
Enablers Hurdles Possible solutions
Solar rooftop power plant can be used by
DISCOM for meeting its solar RPO.
Captive consumption exempted from electricity
duty. No energy scheduling for solar power
generator for intra-state ABT. 50% rebate
in transmission charges for solar projects
commissioned between April 2015 to March
2018. Net metering energy accounting in 12
months – August to July.
No power banking for third
party.
No exemption of banking
charge.
No exemption of demand cut
and power scheduling for re-
newable energy.
Solar power projects’
comprehensive consent to
establishandconsenttooperate
within 15 days from the date of
application submission.
Enablers Hurdles Possible solutions
Intra-state and inter-state open access and wheeling of
power is allowed.
Wind-wheeling,transmissionandschedulingandsystem
operation charges to be 40% of conventional power.
Solar - wheeling, transmission and scheduling and system
operation charges to be 30% of conventional power.
Wind power banking is allowed for one financial year.
Solar power banking for 1 billing cycle.
100% exemption from demand cut for the solar power
plants.
CSS 50% for wind and solar for third party open access
consumers.
No specific time
line is given for the
clearance with respect to
wind power projects.
No separate policy for
wind.
No removal of power
scheduling.
No deemed status of
non-agricultural land.
Single window
clearance for solar.
Clearances within
30 days.
38
Confederation of Indian Industry
Key Takeaways for Western Region
Maharashtra and Gujarat has the highest concentration of business houses, textiles, pharma,
petroleum, IT, chemicals, electronics, heavy chemicals, automobiles, food processing, and plastics.
Gujrat and Madhya Pradesh have adopted single window clearance, progressive policies for
adoption of RE in comparison to Maharashtra. Goa is clearly lagging in RE adoption.
In view of the fact that most of the corporates are concentrated in Maharashtra, it has high potential
of investment in renewable energy. Maharashtra needs a favourable renewable energy policy and
vibrant eco-system for the development of renewable energy in the state.
Based on the study of other states policies on renewable energy- wind and solar, following can be
considered as key takeaway especially for the state of Maharashtra are:
•	 Land: Land acquisition has been perceived as one of major hurdles in the renewable energy
implementation. Identification of sites, availability of state’s land bank for the implementation
and easy approval of land for projects can act as major boost for renewable energy in
Maharashtra. In Telangana, the Government of Telangana shall be developing land for solar
parks. In Karnataka, installation of wind project can be started immediately upon submission
of application and fee, thereby, removing the time required for application processing from the
project implementation phase.
•	 Status of renewable energy power: Telangana and union territories has given the status of
“Must –run” for solar power plants, thus removing the principle of “merit order dispatch” for
the power from solar projects. Declaration of solar power under “must-run” can encourage
investors as it will remove the ambiguity, if any, in the selling power price.
•	 Clearance and approvals: Unlike states like Rajasthan, Karnataka, Telangana and Tamil
Nadu where the timeline for the approval and clearance has been specified, the renewable
energy policy of Maharashtra does not specify any time line or turn-around period for the
application, approval and clearance. Furthermore, there is no single window clearance system
in Maharashtra. Providing single window clearance system and specifying turn-around time for
the applications shall improve the interaction between government and project developer and
thereby,increasingtheinvestmentandimplementationofsolarandwindenergyinMaharashtra.
Currently, there are approximately 6 different permits and clearances are required for solar and
wind project installation. List of clearances are provided in appendix 5.
•	 Open access: Though open access has been allowed in Maharashtra, sourcing of power from
multiple renewable energy generator through open access is not allowed. No exemption is
provided in wheeling and transmission charges of renewable energy power. Furthermore,
in the current open access policy 2014, energy accounting is done in 15 minutes time-slot,
thus no power banking facility is available for the renewable energy generation for captive
consumptionfacilities.Thishasactedashurdleinimplementationofwindandsolarpowerplants
in Maharashtra. All other aforementioned states, apart from Gujarat, allow power banking for
billing cycle or yearly basis.
39Insights into Renewable Energy Adoption in India.
The Draft Open Access policy, 201520
, can bring in following favourable changes, which shall
boost the renewable energy in Maharashtra, provided the policies are implemented:
1.Theminimumeligibilityhasbeenreducedto500kW,i.e.,aconsumerhavingcontractdemand
of 500kW can be sourced power from a single source or multiple sources. The power can also
be evacuated from multiple sources and power exchange.
2. The draft Distribution Open Access regulation, 2015, allows power banking for 1 year for
renewable energy.
3. CSS for renewable energy is 25% of the charges stipulated by commission for open access, as
per draft open access regulation 2015
4. No power scheduling is required, as per draft open access regulation 2015.
It is important that implementation of the draft open access policy is expedite for boosting
renewable energy in Maharashtra.
•	 Net metering: Government of Maharashtra has approved the net-metering policy in 2015,
whereas, state like Tamil Nadu has approved and started promoting its net-metering policy
from 2012. Due to late initiation of the net-metering in Maharashtra, Solar rooftop PV system
in Maharashtra has encountered set-back.
•	 Incentives: For states like Gujarat, Rajasthan, Telangana, cross-subsidy surcharges exemption,
exemption from demand cut and energy scheduling and exemption from electricity duty are
provided for solar power projects, whereas, Maharashtra renewable energy policy does not
indicate such incentive for the project developers. Attractive tariff structure has also been
adopted by state like Karnataka for solar-rooftop PV system to encourage investment in the
respectivearea.Inviewofthefactwherefinancialcostandinitialinvestmentaswellasvariability
of wind or solar availability, right kind of incentive structure which supports variable renewable
energy generation and financial feasibility shall play a crucial role in boosting renewable energy
in Maharashtra.
Comment by Tata Motors Limited on current open access hurdle: “One challenge which we will
be facing is regarding the Open Access Regulation of 2014. Due to this regulation, Maharashtra State
Electricity Distribution Company Limited did not permit purchase of wind energy through Open Access
and hence captive wind energy was the only source of renewable power in FY 2014-15. We hope to secure
renewable energy through Open Access on the grid in future.” –Tata Motors Limited.
Re Adoption by Corporations In
India
Climate leadership and adoption of clean energy go hand-in-hand. The CDP India report 2015
shows interesting trends in terms of the following key points.
1. Companies are moving to a more long-term approach, as opposed to tactical and short-term
measures.
40
Confederation of Indian Industry
2. Companies are showing increasing interest and action in deploying renewable energy.
Despite the fact that not even a single Indian company features in the Climate A List 2015 published
by CDP in the CDP India Report 201522
, several Indian companies are reporting to CDP and making
progress in renewable energy adoption. Four Indian companies got a full 100 Disclosure score for
the Climate Change Report 2015, and nearly 30 companies have a score of 90 or more. The Top 15
companies from India in the CDP India Report 2015,18 their Disclosure Scores and information on
their renewable energy adoption are given in the Table 6 below.
Figure 28 Investment in Low Carbon Energy Initiatives (USD million) during 201521
Company
Disclosure
Score
RE % in Energy
Mix
Possible solutions
ITCLimited 100 43 %
ITC has been constantly working at increasing its share of
renewable energy, and set a goal to achieve 50% of its total energy
consumption through renewable energy sources by 2020.
Tata Steel 100
As per RPO, 1%
solar and 3% non-
solar.
At present TSI purchases solar REC to meet mandate additionally
it is pursuing strategies to reduce power consumption.
Tech
Mahindra
100
2.8% as per
Sustainability
Report
Increasing renewable energy mix in our operations through
installation of solar plants & windmill at our facilities. There
has also been an increase in renewable energy shares to the
company operations with additions of solar plants at Chennai &
Pune Locations. Strong pipeline for renewable energy projects
implementation at Hyderabad with total capacity of 1200 KWh.
Wipro 100 20%
Entered a Tripartite Power Purchase agreement signed between
Wipro (Purchaser), Renewable energy (mainly Solar and Wind)
generator and distribution company. They were able to meet only
half of their renewable procurement target (65 Million units Vs a
target of 130 Million units) largely due to regulatory constraints
and economics, which were not anticipated when the goals were
set in 2010.
Notes: Renewable Installation includes Wind power, Solar plant, Biomass based CPP plant, Distributed small captive systems like solar
panels,solar heating systems, captive biomass CHP, Solar PV Pump, etc. Renewable Purchase includes buying renewable energy by
getting into tripartite agreement with Distribution companies and RE supplier, buying RECs Green Building Infrastructure includes
addition of LEED guidelines based green building space to existing infrastructure Others include low carbon LED and efficient lighting
arrangements, setup to switch to cleaner fuel and Energy Recovery.
41Insights into Renewable Energy Adoption in India.
Company
Disclosure
Score
RE % in Energy Mix Possible solutions
IndusInd
Bank
99
Not mentioned in
CDP report or sus-
tainability
report 2014-15
IndusInd Bank has invested in Renewable Energy solutions
through our investment in on-site solar energy at our ATMs
and offices. This has also led to an increase in the number
of transactions at our solar-powered ATMs. The energy
generated from the fleet of solar ATMs in FY 2014-15 is
approximately 1,20,000 kWh and the cost saved by the Bank
is approximately INR 1 million.
Infosys 99 30%
Infosys is the first Indian company to join RE100 in order
to move towards meeting 100% of electricity requirements
from renewable sources. In 2015-16, Infosys planned to
install 15 MW of solar plants to meet 40% of its electricity
requirements from renewable sources. Installed capacity
is 12.4 MW solar. Poised to invest in 170 MW solar energy
(nearly 145 million USD) by 2018.
Tata
Chemicals
99
Not explicitly
mentioned in
sustainability
report or CDP
report.
At present, Tata Power Renewable Energy Limited has
commissioned a 25 MW solar power plant at Mithapur as
mentioned in their sustainability report 2014-15
Tata
Consultancy
Services
99 2.5%
In FY 2014-15, approximately 2.5% of the total power
consumption was from renewable sources. 132 MWh of
electricity were generated from installed solar capacity.
Tata
Global
Beverages
99
Not explicitly
mentioned in
sustainability report
or CDP report.
TGB targets to source 5% of its energy needs through
renewable sources by 2016.
Associated
Cement
Companies
98
Not explicitly
mentioned in
CDP report or
Sustainability
report.
Purchased RECs equivalent to 97.51 Million INR in 2014
(RPO); Investing in wind (19 MW installed) and solar energy
projects towards CDM
Gas
Authority
of India
Limited
98
Not explicitly men-
tioned in
CDP report or
sustainability
report.
On renewable energy front, they plan to set up 500 MW wind
power capacity in the next 3-4 years and over 300 MW solar
based power generation capacity in a phased manner. GAIL
engaged in trading renewable energy certificates (RECs)
for Tamil Nadu WEG projects where they successfully sold
10646 RECs with net revenue generation of INR 1.57 crores.
These certificates have been utilised to purchase renewable
power obligations (RPO) for 5 of its locations
Larsen &
Toubro
98 8%
Entered in to tripartite agreements with the electricity
board and the operator of wind farms for consumption of
green energy (wind) within their Powai, Hazira and Chennai
Campuses. In 2013-14, renewable power contributed to
8 % of the indirect energy mix, thereby avoiding Scope 2
emissions.
Mahindra &
Mahindra
98 5.6%
Implementation of Renewable energy projects (Solar/ Solar
Thermal/Solar PV) at all manufacturing sites. Procurement
of RECs from power exchange thus promoting renewable
energy deployment. They have installed solar PV panels to
harness solar energy. M&M is the first Indian company to
sign up for the EP 100 program. By signing up for EP100 ,
M&M is making a significant commitment to doubling its
energy productivity by 2030 on a baseline of 2005, and hope
to make a strong contribution towards achieving the climate
goals agreed upon at COP21.
42
Confederation of Indian Industry
The leaders in CDP disclosure have a wide variety of active initiatives and goals for moving towards
renewable energy. Some of the companies have set specific and time-bound goals for increasing
renewableenergyintheirtotalenergymix,andsomeothershavestatedintentionofmovingtowards
renewable energy adoption, as described in Table 6. Overall, several companies are achieving
substantial progress and demonstrating intention and ability to move towards a fully renewable
energy scenario. In particular, ITC Limited, with 43% and Infosys, with 30% of their energy being
sourced from renewables currently, are raising the bar for all corporations. Infosys has joined the
RE100 of The Climate Group, with the intention of using 100% renewable energy.
In addition to the leaders, several other companies are also investing in renewable energy and
have disclosed some of this information in their CDP Report. Table 16: CDP Scores and renewable
energy initiatives listed for a select cohort of companies in the Appendices lists out the renewable
energy initiatives undertaken by companies who we have reached out to in context of this paper.
Out of the 53 companies, 47% of companies achieved a CDP disclosure score above 90, and 49%
have been not listed, not scored, or not responded. Few companies are planning to respond next
year. However, it is heartening to see that almost all companies are working towards initiatives
to increase renewable energy in energy mix. Since the CDP data base was referred to for this
information, we did not pull out renewable energy initiatives companies with “no response”. Real-
time interactions across various industry sectors revealed that almost all companies are exploring
renewable energy options.
“YES BANK believes that the 175 GW target is achievable and is committed to provide funding through
innovating financing models. The Bank has one of the largest portfolios in renewable energy in the private
banking space. During the year, the Bank made commitments to further enhance its lending in this space at
key global platforms, such as the UN Climate Summit. YES BANK was the knowledge partner for the first
ever Renewable Energy Investors Summit organized by the Ministry of New and Renewable Energy, GOI.
At the COP 21 the Bank committed to mobilize USD 5 billion towards climate finance in India by 2020.”
– Yes Bank
Company
Disclosure
Score
RE % in Energy
Mix
Possible solutions
Tata
Communications
98
For Bangalore
operations, the
contribution of
wind power as the
energy source is
about 80% and
62% for Chennai
operations.
Investment in 16 MW wind turbines in Karnataka for wind
power for Data Centres in Bangalore. This shall provide
a minimum of 27 MW units every year, which constitute
80% of their power requirement at Bangalore. TCL has
also invested as a group captive user in Tamil Nadu, India
to harness and use 20 MW units of power at their Chennai
data centre. TCL is part of captive users in Delhi to promote
solar farm to harness day time power to run their data
centres. 5 MW of solar power plants is deployed across
India operations till date.
Tata Motors
Limited
98
8.3%, calculated
from Renewable
and Total energy
consumption
given in CDP
report 2015
21.95MW Wind Power Project has been registered with
NLDC under REC scheme until 2017. TML has set the
target to achieve 50% of the total electricity demand from
renewable energy sources by 2020.
Table 6 Renewable Energy Initiatives listed for companies with very high CDP Disclosure Score
43Insights into Renewable Energy Adoption in India.
Cop 21 And Implications On Renewable Energy Adoption
The COP21 has set aside certain targets for each country which includes India. As a nation, India
consists of the government, the citizens, and the corporates. So, each target will ultimately trickle
downtothesethreeverticals,andcorporateswillbebearingabigshareofit.Theyhavetheresources
and internally face lesser hurdles to get things done. The government can accelerate this by doing
changes at policy level as well. A mandatory share of CSR spending can be reserved for climate
change initiatives. Tax exemption schemes for these activities will also go a long way in encouraging
the corporatesto actively support these initiatives.
“COP 21 and subsequent conversations enable governments of countries to accelerate actions required to
adapt to and mitigate climate change. This in turn has a positive effect on corporations who are alive to
risks of climate change. However, today the biggest reason for adoption of renewable energy and green tech
rise squarely in space of economic wisdom.”
– Mr.Anirban Ghosh, Chief Sustainability Officer, Mahindra & Mahindra Group
“COP21 is a crucial outcome for renewable energy proliferation. Context has been set for RE, linking with
global context, environmental challenges. Certain challenges are still there; to realize 100%RE, emphasis
is on technology such as grid stability, appropriate technology options are required. For developing
countries, renewable energy must be competitive and affordable for deeper penetration. India is now
part of international consortium for renewable energy tech development. Awareness should be developed
about OVERALL COST per unit of electricity, for example, fossil fuel electricity has human health impacts,
pollution impacts etc. which are not currently accounted in market price.”
– Mr. Basant Jain, CEO, Mahindra Susten
Throughout the paper we have maintained that the private sector plays a critical role in the
renewable energy revolution. The RE100 India briefing report24
has indicated an upward trend in
renewables in India, highlights the business case for investing in Renewables.
Two case studies of RE100 member companies in India:
Tata Motors Limited has recently become the 1st manufacturing company in India and first
company to join RE100 after COP21 in Paris. Tata Motors is the 54th company and the second
Indian company - to join RE100.
“Unless policies, rules and regulations are aligned to the international and national goal of scaled up use of
renewable energy, a company cannot go forward with the aspiration of using 100% renewable energy in its
manufacturing operations.”
Chief Sustainability Officer, Tata Motors
Infosys, the first Indian company to join the RE100, has demonstrated clear leadership and
commitment ever since it first stated its carbon neutrality goal early in this decade. Infosys is
pioneering investment in renewables in India, and has significantly reduced energy use over the
last six years. By doing so, they reduced their operational costs and attained the lowest per capita
electricity consumption in the IT industry. The company strongly believes that responsible energy
44
Confederation of Indian Industry
management is one of the factors that helps attract and retain clients – especially those with strong
sustainability goals.
As part of their strong commitment to improve energy use and reduce costs, Infosys has committed
to sourcing 100% of their energy from renewable sources by 201825
.
Intheabsenceofclearguidelines,Infosyshasdevelopeditsownduediligencestrategiesandpolicies
to ensure best technologies to invest.
EP 100 is another program which is an Initiative of The Climate Group. It will work with the
world’s most influential businesses in setting commitments to double their energy productivity
and maximize the economic output from each unit of energy used. In light of achieving low carbon
growth along with renewable energy adoption, energy productivity is critical.
Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra Ltd., said,
“Sustainability is an integral part of Mahindra’s approach to business. At Mahindra, it has always been
our endeavour to drive positive change by making every aspect of our business sustainable. This is our
philosophy behind “Rise for Good”.
“By signing up for EP100, we are making a significant commitment to doubling our energy productivity by
2030 on a baseline of 2005, and hope to make a strong contribution towards achieving the climate goals
agreed upon at COP21. We hope many other corporations will become a part of this campaign.”
CDP’s concern with Corporate Climate Action has been around how corporate goals aren’t serving
the purpose. “Though companies are setting targets they are neither enough nor sufficiently long
term”, CDP India report, 2015
Many companies in India were waiting for the outcome of the Paris agreement. Now it’s time to
commit to long term targets. The best way to set targets is to embrace the “The Science Based
Targets initiative which uses the 2°C scenario developed by the International Energy Agency”. The
two Indian companies which have committed to science based targets are Aditya Birla Chemicals
and Tech Mahindra.
The Climate Group, under RE100 has estimated that an entire private sector switch to renewables
would cut CO2
emissions by nearly 15%. Globally, the world’s leading companies are re-creating a
thriving renewable energy market that will aim at keeping the global temperature rise below two
degrees. India’s private sector, which accounts for more than half of national energy consumption,
stands to gain from this experience. This is not just the government’s responsibility, but ultimately
thecorporates’aswell;therefore,itisnotaboutmeretop-downenforcementbutaboutenthusiastic
adherence from the corporates.
“India has to be clear of the role of renewable energy in the energy scenario following the COP21 INDC
statements. We are primarily speaking of renewable energy as replacement energy, i.e., additional energy
requirement. Our primary energy source remains coal. India’s per capita energy consumption is still low
(~900 units per capita) Vis – a –Vis countries like China (~2500 units). In India 33% of people still do not
have access to reliable electricity. India’s imports of coal and fossil fuels comprises of 80 to 85 % of our
45Insights into Renewable Energy Adoption in India.
This is not good from point of view of economy and energy security... The goal of 175 MW from
renewable energy by 2022, out of which 100 GW is from Solar, 60 W, remaining from biomass – the
governance of this policy and clearly chalked out roles and responsibilities of the state government,
utilities, vendors, enterprises, and the central government will help in creating clarity and clear path for
goal realization.”
–Wind Power Generator company.
Intriguing Insights
Future Thoughts in Renewable Energy
– Climate Parliamentarian
The Climate Parliamentarian is an international cross-party network of legislators, dedicated
to preventing climate change and promoting renewable energy. This group of forward-thinking
legislators have begun to brainstorm a unique possibility for sustaining the entire worlds’ energy
needs using solar installations located in deserts such as Sahara, Thar, Gobi and Atacama. Desert
areas have a very high insolation, and very low population of species as well as human inhabitants.
“A total area of solar panels and power stations 600 km x 600 km would provide enough power to
give 500 million people the average American’s total energy consumption, which is the equivalent
of 250 kWh per day,” reads a section of the Climate Parliament Strategy to go 100% Renewables26
.
This intriguing possibility, without going deep in the technical feasibility, is one that pushes the
envelope on renewable energy installations across the globe and would call for inter-governmental
cooperation and resource sharing, since long-distance infrastructure would be required to move
power from desert-based installations to human habitats, where power is consumed.
Re Ecosystem in India
During our conversations with renewable energy industry professionals, and through research, we
have understood that a majority of the renewable energy technology and products manufactured
in India are considered to be of lower quality than those made elsewhere. Consequently, renewable
energy installations in India contain only a small fraction of indian-made solar panels and other
components. To enhance the quality of indian-made components and technology solutions, we
need to improve the two following aspects:
1. Renewable energy manufacturing ecosystem in India: Organizing and enhancing the ability of
Indian manufacturers to deliver high quality products at affordable prices is vital to encourage this.
This could translate to ease of doing business, more comfortable taxation as well as bridging the
gap between markets to make sure products are economically viable for the manufacturers while
delivering excellent power output and durability. The Government of India, as of now, allows up to
100% Foreign Direct Investment (FDI) under the automatic route for renewable energy generation
and distribution projects subject to provisions of The Electricity Act, 2003.
To enhance the renewable energy ecosystem, the government is playing an active role in promoting
the adoption of renewable energy resources by offering various incentives, such as generation-
based incentives (GBIs), capital and interest subsidies, viability gap funding, concessional finance,
46
Confederation of Indian Industry
fiscal incentives etc. The Make In India program of the Government of India has a focus on the
renewable energy sector. Moreover, the mandate of the Solar Energy Corporation of India (SECI)
allowswide-rangingactivitiestobeundertakenwithanoverallviewtofacilitatetheimplementation
of the National Solar Mission and the achievement of set targets.
2. RE Technology Research & Development in India: Vital breakthroughs in renewable energy
technology can enhance power output per unit installed capacity. There is also possibility for varied
and innovative solutions arising from research and development of renewable energy technologies
in India. Coalitions, such as SERIIUS (Solar Energy Research Institute for India and the United
States) between Indian Institute of Sciences, Bangalore and the NREL (National Renewable Energy
Laboratory), Golden, Colorado (USA) have to be facilitated further.
Comments relevant to this aspect from Director Business Excellence, Quality & Sustainability, SKF
India Ltd. are quoted below:
“Improvements in the power output per unit installed capacity can largely influence organizations’
decision to invest in renewable energy , and so also this will help in making Solar a business case in
a very prominent way . In some states, the gap between Grid power rate and solar power tariff in
a PPA model is already thin and hence it is difficult to create a sizeable margin; nevertheless, the
green aspects clearly support use of solar energy. However, solar energy technology is constantly
upgrading and is in the path to be a business case for profitable investment. Added to this, if we
use other technological innovations such as solar tracking and solar hub developed by SKF, will
add to the efficiency of generation and will help to make the systems more profitable. As regards
implementation, Opex based PPE model is best suited for SME’s as well companies which do not
want to invest big capital and there are a lot of players now available in this area.”
Learning from The World
– Good and Bad
Here we have identified countries across the world where renewable energy contributes to 100%
of the energy demand. This list helps us understand how small countries with abundant natural
resources have switched to renewable energy sources.
In order to understand the learnings from outside of India we have looked at the following:
1. Countries across the world where renewable energy contributes to 100% of the energy demand
(Refer Appendix 7, table a)
2. Countries that are amongst the top in Renewable Energy Consumption.
(Refer Appendix 7, table b)
Noteworthy amongst countries leading in renewable energy use is Iceland which switched to
geothermal in a big way from fossil fuel in the 1990s. It has shown the world that given resources
“what a nation can achieve when it sets it mind to it!”. Norway generates 98% of power from
47Insights into Renewable Energy Adoption in India.
renewable energy. Norway sells its renewable energy to neighbouring countries in form of clean
energy guarantees of origin. In spite of its oil reserves, the country has opted to use oil money to
sustain its traditional business. Key learnings are from Uruguay where clear government decision-
making and supportive regulatory environment and strong public /private partnership have paved a
path for 100% renewable energy. India is a large country, and one can argue that the countries listed
here are small and are not as complex as India.
The second list comprises of countries that are amongst the top in Renewable Energy Consumption
are shown in the figure below 27
The above figure shows the top countries in renewable energy consumption. India is 7th in this list.
This list comprises of big countries. What India has achieved in wind energy sector can be achieved
in solar and waste to energy areas as well. The government of India is running several collaborative
research projects in indigenous technologies in Renewable28
.
Key learnings from USA, it is looking at renewable energy as a means to revive its economy though
American Recovery and Reinvestment Act 2009. India must look at the energy policy as a means to
revive green jobs in this sector. China is an innovator in solar and wind, leading to reduction in cost
of installations. India must learn from China and establish a way to encourage innovation and R&D
in renewable energy technology.
Germanyisacuriouscaseofpoliticalwillcombinedwithaggressivetargetsallowingrapidtransition
to renewable energy helping Germany to move away from fossil fuel and nuclear at the same time.
It is a combination of political will and public support to pass the right regulations that lead to the
path of dominance. It is facing challenges from China and cheaper costs, but the Germans are not
the ones to throw in the towel. The growth rate in Germany has nearly tripled in the last 10 years. In
Spain, the government dishonouring of solar tariffs ruined lives of several individual citizen
Figure 29 Global renewable energy usage by portion of total demand supplied by renewable energy
sources.
48
Confederation of Indian Industry
investors.Spainwasleadinginrenewableenergyin2008tillachangedgovernmentledtoabandoning
of its solar growth. India needs to be wary of making similar mistakes. Still some companies survived
the economic downturn by selling power outside Spain.
It is very interesting to see Brazil’s rise in renewable energy consumption. What India needs to learn
from Brazil is how clearly researched well-articulated policy and clarity in thought lead to growth in
renewable energy. Focus on biodiesel and a clearly working mechanism on the ground for reduction
of transportation emissions.
FromItalywelearnthatgridoperatorsareobligedtogivepriorityaccesstorenewableenergyplants
in the operation of their grids. In Italy, training programmes on renewable energy are developed at
regional level. Certification of installed plants is obligatory. All new or refurbished buildings must
integrate RES, with an additional 10 % to the obligation level for public buildings.
From all the above examples cited here there are great learnings and lessons. By integrating these in
our policy and actions, India will be able to surpass all the above examples within a short time span.
Conclusion
The objective of this paper is to identify the major hurdles in the process of development of
renewable energy in India. India has set the target of 175 GW of renewable energy by 2022, with
100 GW from solar and 60GW from wind energy. With the current CAGR, as assessed for the year
2010-11 to 2014-15, of 6.58%, the renewable energy target of 175 GW is projected be achieved
in 2033 as opposed to 2022 as targeted. It has been assessed that India needs to increase the
renewable energy growth CAGR by 31% to achieve the set target by 2022.
Although Rajasthan has the highest total potential for renewable energy, Maharashtra is potentially
more viable for renewable energy projects, owing to the presence of a large number of corporates
that can invest and propagate renewable energy projects in Maharashtra. A survey has been
conducted for 32 corporates in India and the major perceived hurdles identified are:
a) Anticipation for new technology;
b) Technical evaluation and feasibility of RE
c) Policy implementation at ground level
d) Initial cost and financing
e) Project implementation.
The renewable energy policies, for wind and solar, of 8 states of India have been analysed. Though
all the states have their individual renewable energy policy, following are observed:
It has been observed that uniformity of the renewable energy policy for solar rooftop, solar power
plant and wind power plant across all states is lacking. The uniformity of the taxation policy is
also lacking. It is required to have uniform renewable energy friendly policy for overall growth of
renewable energy in India.
For state like Tamil Nadu, there is no existing formal wind energy policy. A clearly researched and
well-articulated policy shall bring in more confidence in the investors and project developers.
More pro-active involvement by State Government in site identification, land allotment, turn-
around time for approval and single window clearance are required by all states for ensuring ease
of doing business. Implementation of policy at ground level is one of major setback in India. For
49Insights into Renewable Energy Adoption in India.
example, lack of implementation on the penalty structure of RPO has been the main hurdle in the
development of REC market.
(Refer Appendix 7, table b)
Noteworthy amongst countries leading in renewable energy use is Iceland which switched to
geothermal in a big way from fossil fuel in the 1990s. It has shown the world that given resources
“what a nation can achieve when it sets it mind to it!”. Norway generates 98% of power which is
Some additional aspects are highlighted below:
•	 The existing built structures are not constructed considering the possibility for installation
of rooftop solar panel systems. Due to this, some solar rooftop projects encounter hurdle in
implementation. Therefore, to facilitate the expansion of rooftop solar systems, it is necessary
to enable building codes to incorporate the possibility for rooftop installations.
•	 It has been observed that some projects are noted to be stalled due to inefficiency and delay on
thepartofstateboardsresponsibleforprocessingapplicationsorprovidingrequiredclearances
and permits. Due to lack of clarity of the turn-around time for these processes, projects face
delays and inefficiency.
•	 Another intriguing obstacle that we discovered in the course of developing this whitepaper is
that all the information about relevant renewable energy regulation and policies are not in one
place, most of the time. This is a hassle for the corporates and other personnel who have to
obtain and use such information. To facilitate the proper progress of renewable energy projects,
it is suggested to have a systematic repository where all the relevant policy and methodology
information can be placed. In addition, the simplified and direct structure of policy can ease the
application and project implementation. As an illustration of a good example of such policy, we
have included the Renewable Energy Policy Brief of Brazil, June 2015, in Appendix 6.
•	 AsperMNREcirculardated,19November2015,centralfinancialassistanceof30%ofbenchmark
cost for general category States/UT and 70% of benchmark cost for special category states is
provided, which is currently released through different state nodal agencies. The change of this
to online approval and disbursement of CFA can reduce the time consumed in the application
process and encourage investment in renewable energy sector.
•	 India needs improvement in technology innovation and facilitates R&D to reduce the cost
of renewable energy installation, especially solar power sector. The solar sector, as a result
of budget 2016-17, shall have boost due to implementation of double cess levied on coal
production thereby increasing the cost of thermal power generation. This can have a positive
impact in development of renewable energy sector by making the renewable power price
competitive with coal-fired power plant. Furthermore, solar rooftop sector may have boost in
2016-17 before the accelerated depreciation is reduced from 80% to 40%.
To move towards a 100% renewable energy scenario, it is also necessary that corporations utilize
a sustainability lens to assess all their undertakings. Without a holistic understanding on how
renewable energy helps companies reach sustainability goals, one-off attempts remain inadequate
toaddressthecoreproblemsofenergysecurity,environmentalpollution,andglobalclimatechange.
Companies who intend to lead the transition to a clean energy world must make renewable energy
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inseparable from their modus operandi. Companies must evaluate and identify opportunities for
pushing the envelope on RE, whether through purchase, or through installation, in all facets of the
company where renewable energy has a role everywhere, including hiring, materials procurement,
supply-economics, transportation, and logistics.
“All projects are looked at from environmental and social angles, considering environmental impact,
clearances, and social inclusion. Top management is committed to the principles of sustainability.
It is integrated with the business organisation structure with member of executive management
commitment (EMC) responsible for driving sustainability initiative across organisation. The EMC is
very proactive and has provided a direction to adopt carbon neutrality approach for key campuses
of L&T where renewable energy plays a key role” – L&T. Corporate action in renewable energy
adoption is led by progressive companies which can be further enhanced by removal of hurdles.
Key Asks by Corporates from Government in context of RE:
•	 Strict monitoring of RPOs and RGOs for a robust REC market
•	 Implementation of the tariff policy on the ground through a clear guidance at all levels
•	 Seamless facilitation of access to Renewable Energy via grid through PPA
•	 Simplification and standardisation of policies across states
•	 Single window clearances
•	 Availability and awareness of various viable financial models for off grid and grid based
renewable energy solutions.
In addition, a welcome boost to the renewable energy scenario in India would be an assertive stance
from the government in the form of a Renewable Energy Mandate on TOP 100 financially well-
performing companies In a manner similar to how SEBI mandates the BRR for top 200 companies
in India. The goal is for them to invest in renewable energy to meet 100% of their energy demands,
as suggested by Mr. Swapan Kumar of Dr. Reddy’s Labs. This is feasible because top 100 corporate
leaders don’t have financial hindrances that are often a common obstacle for other companies to
invest in renewable energy to a larger extent.
Therefore, the government or its appointed regulatory authority (perhaps, the MNRE) could
oversee, as with the implementation of SEBI’s BRR, that the top 100 companies in India commit
to 100% renewable energy to meet their needs by a stipulated plan. Leading corporations can
then comfortably setup their roadmaps towards 100% renewable energy for all their facilities
and operations, and submit annual progress reports to the concerned government bodies, who
can conduct timely audits to ensure that commitments are matched with clear action plans and
deliverable results on the ground.
Falling cost of renewables, new progressive policies have set the tone for larger renewable energy
adoption. This will be hastened if the key asks are well received and addressed by the government.
Integration of global and regional learnings into Western Region policy, action on ground and
governance will drive drastic adoption and thereby help in a low carbon transition.
Recently released report of the Expert Group on 175 GW RE by 2022 investigated the financing
aspects of the 175 GW RE target . The report states that “India lacks a comprehensive national
51Insights into Renewable Energy Adoption in India.
policy and legislative framework for renewable energy, Existing policies and programmes are
technology specific and vary across states restricting strategic intent. Placing renewables at the
heart of India’s power system will require a paradigm shift in planning and governance practices”.
Corporate world needs this paradigm shift for the Indian economy to flourish. Ironing out the
hurdles, innovations and strategic direction, planning and governance at centre and state level is
required for this.
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Appendices
Appendix 1: Abbreviations and Definitions
List of Definitions of Terms and Abbreviations
TERM DEFINTION
Bio Mass
Wastes produced during agricultural and forestry operation energy plantation e.g.
Husks, shells.
CAGR Compounded Annual Growth Rate
CDM Clean Development Mechanism
Date of Commissioning Dateonwhichsupplyofenergyiscommerciallycommencedbythegeneratingplant
Developer Entity which develops the projects
DISCOM Distribution Company
Energy Consumption
Useful energy input that is supplied by the fuel ( normally bagasse or other such
biomass fuel)
EPC Engineering, Procurement and Construction service, contract
GHG Green House Gas
Grid
The high voltage backbone system of interconnecting transmission lines,
substations and generating plants
Group Captive Power Scheme
A group captive scheme is where someone develops a power plant for collective
usage of many commercial consumers. The developer should have at least 26%
of the equity and has to consume at least 51% of the power produced. The term
“captive power scheme” was introduced in the Electricity Rule, 1995. For example.
Imagine Company A along with company B and company C decide to bring down
their electricity costs. Collectively they make a power plant with 26% equity and
decide to use about 51% of energy produced. Then they decide to sell the remaining
49% power to Company X, Y and Z. This makes the whole group part of the group
captive power scheme. Suppose the developer decides to make a Solar power plant
for using the group captive scheme. Now, he not only gets the group captive scheme
benefits but also gets to sell the REC (Renewable Energy Certificates) in open
market or the IEX (Indian Energy Exchange).
53Insights into Renewable Energy Adoption in India.
TERM DEFINTION
GW Giga Watts
HT High Tension
Investor A body interested in investing in a project
KWh Kilo Watt-hour
Low Voltage Voltage at 415 Volts and below
MNRE Ministry of New and Renewable Energy
MSW Municipal Solid Waste
MU Million Unit
MW Mega Watt
O&M Operation and Maintenance
OA
Open Access, which is Non-discriminatory provision for use of transmission lines/
distribution system / associated facilities with such lines or system by any licensee
/consumer/ person engaged in generation in accordance with the regulations
specified by the appropriate commission
Power Banking
It is the process under which a generating plant supply power to the grid not
with the intention of selling it to either a third party or to a licensee but with the
intention of exercising his eligibility to draw back this power from the grid.
PPA/PSA Power Purchase Agreement/ Power Supply Agreement
Project MeansaGeneratingStationortheEvacuationSystemuptoInter-ConnectionPoint.
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TERM DEFINTION
RE Renewable Energy
R&D Research & Development
SERC State Electricity Regulation Commission
Small Hydro Power Plant
(Electricity Generating Station) Single Window System facilitated by Nodal Agency
to expedite process of receiving clearances from multiple agencies and fulfil all
inception-related requirements of a renewable energy project.
Solar Plant/Solar Power Plant
A power plant or system utilizing solar energy through solar photo-voltaic or con-
centrated solar thermal devices including its integration into conventional fossil
fuel for generating of electricity.
Solar PV Power
The solar photo voltaic (PV) power project that uses sunlight for direct conversion
into electricity through photo voltaic technology. Solar PV Power Plant Solar Photo
Voltaic (SPV) Power Plant that uses sunlight for direct conversion into electricity
through Photo Voltaic technology.
Solar Thermal Power
The solar thermal power project that uses sunlight for direct conversion into
electricity through concentrated solar power technology based on either line focus
or pointy focus principle. The direct sun light is concentrated several times to reach
higher energy densities and thus higher temperatures whereby the heat generated
is used to operate a conventional cycle to generated electricity.
SPO Solar Purchase
Obligation
A state/govt. mandated requirement for minimum amount of solar power in total
power consumed.
Substation Facility equipment that switches, changes, or regulates electric voltage.
Tariff Schedule of charges for generation, transmission, wheeling and supply of
Transmission Charges
The charges payable by renewable energy sources for the use of transmission
system
Wind Farm
Cluster of wind energy generators erected by a single developer and generating
electricity from wind
Merit order dispatch Way of ranking the dispatch of available electricity generally based on price.
Must Run status
Power generated are not subjected to competitive bidding and purchased by DIS-
COMS as and when produced.
55Insights into Renewable Energy Adoption in India.
Appendix 2: List of Tables
Table 1 renewable energy installed capacity as of March 2015.	
Table 2 Description of Major Hurdles to renewable energy Adoption	
Table 3 State-wise Current Installed Capacity and Potential for Solar and Wind Energy	
Table 4 Enablers, hurdles, and plausible solutions for Western Region states	
Table 5 Enablers, hurdles, and potential solutions for other select states	
Table 6 List of Definitions of Terms and Abbreviations	
Table 7 Telangana renewable energy Policy Highlights	
Table 8 Maharashtra renewable energy Policy Highlights	
Table 9 Karnataka renewable energy Policy Highlights	
Table 10 Andhra Pradesh renewable energy Policy Highlights	
Table 11 Gujarat renewable energy Policy Highlights-	
Table 12 Rajasthan renewable energy Policy Highlights	
Table 13 Tamil Nadu renewable energy Policy Highlights	
Appendix 3: List Of Figures
Figure 1: Cumulative Installed Capacity of Grid-connected Renewable Energy Systems in India,
MW	
Figure 2 Timeline of the development of renewable energy in India.	
Figure 3 Gap Assessment of renewable energy current installed capacity and total potential	
Figure 4 Top Choices of renewable energy Technology for Adoption	
Figure 5 Reasons for renewable energy Adoption and Investment	
Figure 6 Tentative Breakdown of renewable energy Targets by Technology and Region,	
Figure 7 At Current CAGR of 6.85%, INDC goals will be reached in 2031	
Figure 8 to achieve INDC goals by 2022, CAGR should increase to 31% or more	
Figure 9 Developments required to reach the renewable energy goals by 2022	
Figure 10 At current CAGR (27.58%), 100 GW solar targets can be reached in 2028	
Figure 11 To achieve the 100 GW solar goal by 2022, we need a 90% increase in CAGR	
Figure 12 At Current CAGR (9.61%), INDC goal for Wind power can be reached in 2025	
Figure 13 To achieve INDC goals by 2022, CAGR should increase by 40% to 13.45%	
Figure 14 At current CAGR (9.6%), INDC goal for Bio power can be reached by 2025
Figure 15 To achieve INDC goal of 10 GW Bio power by 2022, CAGR needs to be 11.78%.	
Figure 16 Major Hurdles in renewable energy Adoption	
Figure 17 Main external reasons for inertia in renewable energy adoption	
Figure 18 Most important infrastructure development for renewable energy progress	
Figure 19 Most Interesting New renewable energy Technology Options	
Figure 20 Main improvements required to ecosystem surrounding RE	
Figure 21 Main constraints to renewable energy project implementation	
Figure 22 Main reasons for corporates to invest in RE	
Figure 23 Main Internal Obstacles to renewable energy Adoption	
Figure 24 Main external actions that can boost renewable energy Investments	
Figure 25 Lack of single window clearances is an obstacle
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Figure 26 Policy changes that can spur renewable energy adoption and investment	
Figure 27 External financial environment for renewable energy progress	
Figure 28 Global renewable energy usage by portion of total demand supplied by renewable energy
sources.
Appendix 4: State-Wise Policy Highlights
Goa
Minimum capacity of solar thermal project is 500 kW of installed capacity and 1 kW to less than
500 kW for rooftop solar power projects. Central incentives are eligible if the collective capacity
of solar roof top installed capacity is a minimum of 100 kW. The allotted solar projects need to be
implemented within the span of 12 months for projects of capacity below 500 kW and within 18
months for capacity of 500 KW or more. Policy highlights 30
:
Madhya Pradesh
MP has the wind and solar power policy. Net metering policy for solar rooftop is in draft phase and
shall be applicable from the date of its notification in the Madhya Pradesh State Gazette. Policy
highlights31
:
Category Description of Provided Incentives
Land availability and Land
acquisition
Land acquisition is to be performed by the developer. The land owner or rooftop
owner are eligible to lease space for solar roof top installation.
Development of solar parks is encouraged through private investment or through
public-private partnership.
Power evacuation
Cost of power evacuation to the grid interconnection point shall be borne by the
project developer.
Open access and wheeling
Open access is allowed within Goa or with other union territories. No wheeling
charge is applicable for solar rooftop system.
Power banking
Rooftop solar system, with net metering, can bank a maximum of thirty (30) % of the
annual generation capacity of electricity for a maximum of 12 months. Settlement
will be performed every 6 months.
Ground mounted solar systems, installed for sale of power, are not allowed for
power banking
Clearances Single window clearance policy is in draft stage and yet to be implemented.
Other incentives
Electricity duty is exempted for power generation from solar projects.
Solar system, self-owned or third-party owned are exempted from wheeling charg-
es, banking, cross subsidy and T&D losses charges.
CSS is exempted for ground mounted solar system set-up for Sale of power.
Power generation from solar rooftop can be accounted towards RPO. Rooftop solar
system is not eligible for REC.
Payment shall be made by the state distribution within 30 days from date of bill
submission by the solar power generator.
All grid connected solar power plants are considered as “Must Run” and thus are not
subjected to merit order dispatch principle.
57Insights into Renewable Energy Adoption in India.
Category Description of Provided Incentives
Land availability and Land
acquisition
Solar power - No capacity limit for the solar projects in private land. The project in
government land has the minimum capacity of 0.25 MW to a maximum of 100 MW.
Govt. land if available shall be 3.0 Hectares per MW. Govt. land shall be allotted to
bidder, if available, basis of maximum free energy per MW offered by eligible and
qualified bidders and they would be eligible for incentives under this policy.
Private land purchased by project develop shall have 50% exemption in stamp duty.
Forest land and land owned by schedule tribes can be used with necessary
permission from concern departments.
Wind power – Govt. land shall allotted based on availability. Permission for use of
Govt. Revenue land to be provided by New & Renewable Energy Department
Developer is eligible for 50% exemption on stamp duty on purchase of Pvt. land for
the project.
A maximum of 100MW installed capacity is eligible in govt. land.
Forest land and land owned by schedule tribes can be used with necessary
permission from concern departments.
Power evacuation
Power evacuation facility from the project site to grid intersection shall be done by
the project developer.
Open access and wheeling
Intra-state and inter-state open access is allowed as per the MPERC open access
regulation, 2005. The revised open access regulation is in the draft phase.
Wheeling charge is as per the rate prescribed by MPERC. Captive power generation
are charged 2% of energy injected towards wheeling charge.
Solar power - Government of MP shall provide grant of 4% in terms of energy
injected and the balance, if any, to be borne by the project developer for the above
wheeling charge.
Wind power – For third party sale within state, Government of MP shall provide
grant of 4% in terms of energy injected.
Power banking
Solar and wind power - Power banking is allowed for a financial year, with 2% of
banked energy as banking charge
Clearances
No single window clearance facility is available.
No licence is required for solar project, generating and distributing power in rural
area.
Other incentives
Electricity duty is exempted for solar and wind for a period of 10 years. No cess is
applicable for wind power. Energy cess is exempted for 10 years for solar power. No
registration cost is applicable for installing small scale WTG or Wind Solar hybrid
plant (up to 100kW) at a private rooftop or land.
Projects implemented under the solar and wind policy shall receive status of
industry and shall be eligible for all the incentives provided under “Industrial
Promotion Policy of State Govt.”
Contract demand can be reduced by the consumer buying wind and solar power, on
permanent basis.
Net metering
Solar rooftop net metering policy is in the draft stage.
The minimum capacity of installation is 0.5 kW and maximum capacity of 250 kW.
Technical feasibility application shall be processed within 30 days of receiving the
application.
Power banking is allowed for a year time.
Installation of SRPs under the policy shall be exempted from banking, wheeling,
cross-subsidy surcharges and electricity duty.
Solar rooftops are exempted from property tax and equipment are exempted from
VAT and entry tax.
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Telangana
Telangana, being a newly formed state, has intense energy demand and supply gap. To mitigate
this problem, Telangana State Electricity Regulatory Commission has drafted the solar policy to
encourage solar power development in the state through providing incentives and ease of doing
business. The policy is applicable for all solar power projects and solar parks. The power generation
needs to be within the time limit stipulated in the PPA or within a maximum period of 2 years from
the date of application whichever is earlier, failing which the provisions under the policy will be
cancelled. The highlights on ease of business and other incentives in the Telangana solar policy,
201532
are as:
Incentive Category Description of Provided Incentives
Land availability and Land
acquisition
Solar parks implementation is done by the state. The land acquired by the solar
power project developer shall be deemed to be converted to non-agriculture land.
No land ceiling, as per land ceiling act, is applicable for land acquisition for solar
projects.
Open access and wheeling
Intra-state open access for the tenure of the project is granted.
Intra-state transmission and wheeling charges are exempted for captive use of solar
power.
Power evacuation
The project developer shall bear the infrastructure cost of power evacuation facility
to the grid. The developers shall be supported by the transmission and distribution
company for Supervision charges levied by the TSTRANSCO/DISCOMS shall be
exempted;
b) TSTRANSCO/DISCOMS shall process and close the proposals for technical
feasibility within thirty (30) days of receipt of application from the developer.
Power banking
Banking of 100% of energy shall be permitted for all captive and Open Access/
Scheduled consumers during all 12 months, from April to March, of the year.
Clearances
The Solar Policy Cell (SPC) will undertake single window clearance for all solar
power projects.
PCB clearance for the solar projects shall be provided within 7 days from the date of
application. Applications for grid connected solar projects shall be processed within
21 days from the date of application.
Other incentives
Electricity duty is exempted for all solar projects.
Electricity duty is waived for new manufacturing facilities and ancillaries of the
Solar Power Projects.
100% exemption of cross subsidy surcharge (CSS) for solar power generated and
sold with Telangana for 5 years from the date of commissioning.
Gram Panchayat will give permission within 14 working days from the date of
making payment of INR 25,000 for development charges, failing which permission
will be deemed to have been accorded.
100% refund of VAT/SGST for all the inputs required for solar power projects for a
period of 5 years.
100% refund on stamp duty for the land purchased.
Provision for grid connected solar power shall be made within a week time.
Facility of gross and net metering, as chosen by the developer, shall be extended to
SRPs for a period of 25 years
All solar power plants are given the status of “Must Run”.
59Insights into Renewable Energy Adoption in India.
Maharashtra
Maharashtra has an overall target of 14.4 GW of energy generation from renewable energy. Of the
total, 5 GW and 7.5 GW are to be generated from wind and solar respectively. Of the total of 5
GW of wind energy target, 1.5 GW will be used to fulfil RPO of distribution companies and the rest
3.5 GW capacity of wind project can be utilized open access for interstate/ intrastate open access/
captive consumption/REC etc.
Similarly, for solar power, out to the total 7.5 GW, 2.5 GW will be used to fulfil RPO through public-
private partnership in association with MahaGenco. 5 GW shall be developed by private investors.
The minimum installed capacity of solar project applicable under renewable energy policy, 2015 is
1 MW. The highlights on renewable energy policy, 2015 are as follows:
Incentive Category Description of Provided Incentives
Power evacuation
The project developer shall bear the infrastructure cost of power evacuation facility
to the grid. The developers shall be supported by the transmission and distribution
company for Supervision charges levied by the TSTRANSCO/DISCOMS shall be
exempted;
b) TSTRANSCO/DISCOMS shall process and close the proposals for technical
feasibility within thirty (30) days of receipt of application from the developer.
Power banking
Banking of 100% of energy shall be permitted for all captive and Open Access/
Scheduled consumers during all 12 months, from April to March, of the year.
Clearances
The Solar Policy Cell (SPC) will undertake single window clearance for all solar
power projects.
PCB clearance for the solar projects shall be provided within 7 days from the date of
application. Applications for grid connected solar projects shall be processed within
21 days from the date of application.
Other incentives
Electricity duty is exempted for all solar projects.
Electricity duty is waived for new manufacturing facilities and ancillaries of the
Solar Power Projects.
100% exemption of cross subsidy surcharge (CSS) for solar power generated and
sold with Telangana for 5 years from the date of commissioning.
Gram Panchayat will give permission within 14 working days from the date of
making payment of INR 25,000 for development charges, failing which permission
will be deemed to have been accorded.
100% refund of VAT/SGST for all the inputs required for solar power projects for a
period of 5 years.
100% refund on stamp duty for the land purchased.
Provision for grid connected solar power shall be made within a week time.
Facility of gross and net metering, as chosen by the developer, shall be extended to
SRPs for a period of 25 years
All solar power plants are given the status of “Must Run”.
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Incentive Category Description of Provided Incentives
Land availability and Land
acquisition
Wind energy: The land acquired by developers shall be deemed to be converted to
non-agriculture land as per as per Maharashtra land acquisition act.
Solar power: Land acquired by the developer for solar projects will be granted
deemed status of Non-agricultural land. The solar project can be developed on the
land available with the Water Department, area near water canal and above canal.
Solar parks: Solar projects having capacity up to 2 MW can be given land 4 hectors
as per availability and 50 % discount shall be given on rental/ lease charges. All such
transactions will be governed as per Maharashtra land acquisition act.
The project developer can lease or rent land for solar project from private land
owner.
Power evacuation
In line with MERC, the power evacuation facility to the grid shall be developed by
project developer. Supervision charges levied by the TRANSCO/DISCOMS shall be
exempted.
MSELDC/MSETDC shall provide grid connectivity for the solar project of minimum
1 MW in solar park.
The policy does not provide any comment on the time of processing the application
for evacuation.
Open access and wheeling
Open access is allowed for wind energy and solar power as per MERC regulation.
Inter-stateandintra-stateopenaccessisallowed.Thereisnoexemptioninprovided
for renewable energy for the wheeling and transmission and distribution losses.
As per Distribution Open Access regulation, 2014, the minimum eligible installed
capacity is 1 MW.
Power banking
In Distribution Open Access regulation, 2014, the banking of renewable energy
power has not been specifically addressed. The excess power feed to the grid under
open access shall be purchased by DISCOM in 15 minutes. This acts a serious set-
back for the renewable energy generator and consumer under open access.
Clearances
Solar power and wind are exempted from NOC/PCB clearance.
No single window application clearance facility for the ease of business.
Other incentives
•	 Government land if available requires for manufacturing of solar modules/
panels/etc. shall also be given 50 % discount on lease/rental charges.
•	 Solar power has exemption from E-duty for captive power plants for 10 years
from the date of commissioning.
•	 Solar project developers can sell electricity generated from solar projects to
distribution companies /captive use/third-party sale/ REC.
•	 Existing wind electric generators are permitted for re-powering with
appropriate micro-siting and use of updated technology. This will help in re-
powering the old wind facilities or non-operable wind facilities.
Solar rooftop – net metering34
MERC has approved the net metering policy for solar rooftop project, 2015. The
capacity of the rooftop solar should not exceed 40% of the rated capacity of the
distribution transformer. The maximum limit of solar rooftop PV system is 1000
kVA (~800kW), i.e., less than 1 MW. The power generated from solar rooftop PV
system can be used for meeting RPO. The net meter for consumers within the scope
of “Time of Day” tariff shall record the time of generation and consumption and
compensated accordingly. Any unadjusted net credit of power injected to the grid
shall be purchased by DISCOMS at the end of the financial year at the average cost,
thus allowing a power banking of one year and ensured buying by the DISCOMS of
the un-used power.
61Insights into Renewable Energy Adoption in India.
Karnataka
Karnatakahasseparatepoliciesforsolarandotherrenewableenergy.In2014,KarnatakaRenewable
Energy Development Ltd. published solar policy for 2014-202135
and renewable energy policy for
2010-2021 is under progress. The total renewable energy target installation, by 2021, is 5.6 GW
of which 2 GW is from solar power and remaining 3.6 GW is from other renewable energy sources.
Karnataka has not defined on the RPO percentage from solar power. The major renewable energy
sources are wind, with a target of 2.6 GW by 2021 followed by solar with 2 GW target by 2021.
Key highlights of the policies37 38
are: Karnataka also approaches its energy situation by managing
energy demand through energy efficiency programs. Karnataka has the energy conservation and
efficiency policy 2015-19 with a vision to harness potential energy saving from energy efficiency.
Incentive Category Description of Provided Incentives
Land availability and Land
acquisition
The land acquired by the developer shall be deemed to be converted to non-
agriculture land as per as per Karnataka land acquisition act. The wind energy
project installation can start immediately upon submission of application and
requisite fee.
The renewable energy policy indicates that the land bank for respective renewable
energy technology shall be generated by the concern government department.
The government lands, such as barren land and forest land will be developed by
Karnataka renewable energy Development Limited to facilitate setting up of
various renewable energy projects.
LandforwastetoenergyprojectsshallbeidentifiedandreservedbytheMunicipality
Bodies.
Change or shifting of location is not permitted under the policy.
Power evacuation
The power evacuation facility to the grid shall be developed by project developer.
The policy does not provide any comment on the time of processing the application
for evacuation.
Open access and wheeling
Open access and wheeling of power within state is allowed as per KERC norms at
the rate of 5% as wheeling charge.
All solar power generators in the State achieving commercial operation between
1st April 2013 and 31st March 2018 are exempted from payment of wheeling and
banking charges and cross subsidy surcharge for a period of ten years from the
date of commissioning. Captive solar power plants opting for Renewable Energy
Certificates shall pay the normal wheeling, banking and other charges as specified
in the Commission’s Order
Power banking
Power banking of for the renewable energy is allowed by KERC. Charge for power
banking is exempted for solar power plants for 10 years.
Clearances
All solar PV projects are exempted from obtaining PCB clearances. Karnataka
Renewable Energy Development Ltd acts as a single window for the clearances and
shall be responsible for pursing the concern departments within 90 days and 120
days all departmental and forest clearances respectively.
As per the draft renewable energy policy, response time for the departments is
stipulated to be within 45 days from the date of application.
Other incentives
Existingwindelectricgeneratorsarepermittedforre-poweringwithuseofupdated
technology. This will help in re-powering the old wind facilities or non-operable
wind facilities.
10 % of “Green Energy Cess” fund shall be used as contribution to Energy
Conservation Fund for Energy Conservation activities. The balance will be set apart
for renewable energy project financing.
62
Confederation of Indian Industry
Andhra Pradesh
Andhra Pradesh has a large potential for Solar (58.8 GW) and Wind (14.5 GW) installations. The
Andhra Pradesh Government has released its new policy for the development of solar power
projects in the state in 2015. The main objective of the solar power policy39
now is to ensure
installations of 5 GW of solar power within the next 5 years, through development of solar parks
and promoting manufacture of solar equipment. The state also placed a Wind power policy40
and a
Net metering policy41
.
Incentive Category Description of Provided Incentives
Other incentives
Solar parks are promoted. A financial assistance of INR 1 Cr shall be provided by
Government of Karnataka for solar park of area 100 acres or more. “Plug and play”
solar park development by private parties are also encouraged.
Farm land owners are encouraged to implement solar plant from 1MW to 3 MW
capacities.
Urban buildings are likely to be exempted from floor-area-ratio with respect to the
floor area created for solar rooftop.
“Surya Raitha System” has been launched to encourage famers to install solar
panels for their irrigation pumps. Farmers can sell excess electricity produced back
to the grid.
Solar rooftop – net metering
KERC has approved the net metering policy for solar rooftop project. The maximum
limit of solar rooftop PV system is 1 MW.
An attractive solar rooftop tariff of 9.56 INR/kWh for unsubsidised systems and
7.20 INR/kWh for systems availing a 30% central subsidy has been offered to boost
solar rooftop PV system.
Incentive Category Description of Provided Incentives
Land availability and Land
acquisition
For Wind projects, based on the availability the allotment of revenue land shall be
considered.
For Solar projects, the project developer should acquire the land required for the
project. The land owned by Revenue Department, the land allotment shall be done
as per the prevailing government policy.
Power evacuation
For Wind Projects: The project developer shall bear the entire cost of power
evacuation facilities for interconnecting the wind farm with the grid.
For Solar projects, the Nodal Agency and/or designated offices by the Nodal Agency
will facilitate in getting power evacuation. For solar parks, the state government
will facilitate power evacuation.
Supervision charges levied by the TRANSCO/DISCOMS shall be exempted for wind
and solar power projects.
Open access and wheeling
Intra-state Open Access for wind and solar projects are allowed as per the APERC
Regulations. In absence of any response to the application for open access or
intimation from the Nodal Agency to the generator within 21 days, application shall
be considered to be deemed open access.
Transmission and Distribution charges are exempted for wheeling of power within
the state, generated from Solar and wind power projects.
No wheeling and transmission charges for wheeling to the desired location/s
for captive use/third party sale within the state through 33KV system subject to
industries maintaining their demand within its contracted demand.
63Insights into Renewable Energy Adoption in India.
Gujarat
Gujarat has significant potential of wind and solar power along with significant amount of barren
and uncultivated land and long coastal area. Gujarat has the tentative renewable energy target
of 17.133GW by 2022 of which 8.02GW is from solar power and 8.8 GW is from wind energy42
.
Gujarat came up with its new solar power policy on 13th August 2015, which would be operative up
to March 31, 202043
. As per the current solar policy, solar PV (under net metering) and solar power
plants for captive consumptions are eligible to have the installed capacity not more than 50% of the
contract demand or load. GERC has published its recent wind energy policy in July 201344
. The key
highlights of the policies are as follows:
Incentive Category Description of Provided Incentives
Power banking
100% power banking is allowed during all 12 months of the year, from April to
March.
Clearances
Wind energy projects: All approvals and clearances will be provided within 30 days
from the date of registration.
Solar Rooftop projects: All approvals and clearances will be provided within 14 days
from the date of application”
Technical feasibility for evacuation will be disposed within 14 days from the date of
receipt of application.
All wind and solar power projects are exempted from obtaining PCB clearance.
Other incentives
All wind power projects are exempted from paying Electricity Duty in case of sale of
power to AP DISCOM.
Electricity duty shall be exempted for captive consumption, sale to DISCOM(s) and
third party sale provided the source of power is from Solar Power Projects setup
within the State.
Cross subsidy surcharges are exempted for third party sale for solar power projects
setup within the State for a period of five (5) years from the date of commissioning.
Incentive Category Description of Provided Incentives
Land availability and Land
acquisition
The project developers are responsible for acquiring land. Based on the availability,
revenue waste land or Gujarat Energy Development Agency (GEDA) land can be
allotted for wind power plant installation.
Power evacuation
Wind power: The power evacuation facility from wind farm substation to GETCO
substation, up to 100 km, needs to be erected by the project developer. Beyond 100
km, the evacuation line shall be erected by GETCO
Solar power: The power evacuation facility from solar farm to GETCO substation
shall be erected by project developer.
The policy does not comment on the time line of the approval or erection of the
power evacuation facility.
Open access and wheeling
Inter-state and intra-state open access is allowed in Gujarat.
Wheeling of wind power for third party sale and captive consumption at 66kV
voltage,normalopenaccessandwheelingchargeisapplied.Forcaptiveconsumption
below 66kV, 10% and 7% of the energy fed by multiple WTGs and single WTG
respectively are charged for wheeling. The wind power generator, wheeling power
64
Confederation of Indian Industry
Rajasthan
Rajasthan has the tentative total renewable energy target of 14.362GW of which 5.762GW is from
solar power and 8.6GW is from wind energy45
. The Rajasthan Electricity Regulatory Commission
(RERC) has even set a fixed RPO for the year 2016-17 at 2.5% solar power. RERC has come up with
policies for wind46
and solar47
power generation. The key highlights of the policies are.
Incentive Category Description of Provided Incentives
Open access and wheeling
to more than two sites, shall pay INR 0.05/unit of energy fed to the grid.
Solar power: No wheeling charges are applicable for solar PV under net metering.
Captive solar projects which are registered under REC, 50% of the normal wheeling
charge and losses as applicable to normal open access consumers. For the REC solar
projects, wheeling charges are as applicable to normal open access consumers.
Power banking
Wind power: No power banking facility is available for third party sale. Energy
accounting is done on 15 minutes time block. WTGs which are used for captive
consumption can bank power for one month time during the same calendar month.
Solar power: The solar power projects under REC mechanism, selling power outside
the state and solar projects which are selling power to DISCOMS are not allowed
for power banking and the energy accounting for such projects are done on 15
minutes time block.
The non-REC solar power, either captive usage or third party sale, are eligible for
power banking for consumer’s one billing cycle wherein set-off can be done in any
of the billing cycle.
Clearances
Solar power and wind are exempted from NOC/PCB clearance.
The policies do not comment of single window clearance or timeline of the
clearances.
Other incentives
Electricity duty shall be exempted for all types of solar power projects.
For wind projects, except in case of third party sales, the electricity generated from
the WTGs is exempted from electricity duty.
Wind Turbine Generator (WTG) power: WTGs for captive use are exempted from
demand cut to the extent of 30% of the installed capacity.
Solar power: Rooftop solar PV for residential and government consumers, solar
projects for selling power to DISCOMS and solar project under NSM are exempted
from demand cut. For solar project for captive usage, third party sale, rooftop solar
PV for industrial consumers under REC are exempted from demand cut up to 50%
of the installed capacity.
Cross subsidy surcharge in solar power projects are exempted for:
Rooftop solar PV projects in residential, industrial, commercial and government
consumers under net metering
For captive consumption
For sale of power to DISCOMs or the power is sold outside state.
This surcharge is 100% for REC projects and 50% for non-REC projects for sale of
power to third party under Open Access within the state for solar projects.
Solar roof top- Net metering
The installed capacity of roof-top solar PV is limited to 50% of the contract demand
and load.
TheexistingconsumertariffisappliedfornotmeteringrooftopsolarPVpower.Any
unadjusted net credit of power injected to the grid shall be purchased by DISCOMS
at the end of the consumer’s billing cycle at the average cost, thus ensured buying
by the DISCOMS of the un-used power.
65Insights into Renewable Energy Adoption in India.
Incentive Category Description of Provided Incentives
Land availability and Land
acquisition
Wind power developers are allowed to procure private land. The conversion of
private land to industrial land shall be done at the charge of 10% of the charge
levied for industrial purpose. Rajasthan government land will provide land for wind
farm at 10% of District Level Committee (DLC) rates on first cum first served basis,
with a maximum land allotment of 5 hectare/MW. The sub-lease of land for wind
farm development is also allowed under the policy.
Government land is allotted for solar parks and solar Power Projects as per the
provisions of Rajasthan Land Revenue (Allotment of land for setting up of Power
Plant based on renewable energy Sources), Rules 2007. The maximum land
allotment for different technologies of solar power plants are as, described:
1. Solar PV Crystalline Technology: 2.5 Ha/MW
2. Solar PV Crystalline Technology with tracker 3.5 Ha/MW
3. Solar PV on Thin film / Amorphous Technology 3.5 Ha/MW
4. Solar Thermal (CSP) Tower / Trough or other technology:
Up to PLF of 21% 3.5 Ha/MW
For every 1% increase in PLF 0.15 Ha/MW additional land will be allotted
The land allotment for solar power projects shall be done only on the refundable
payment of 5 lac INR/MW to RREC. The solar project developers are allowed to
procure private land. No land conversion is required for setting up solar projects.
Farmers are allowed to install or sub-let solar projects in their land without
requirement of land conversion.
Power evacuation
The power evacuation facility shall be erected and maintained by the power
producer.
Open access and wheeling
Inter-state and intra-state open access and wheeling of power is allowed for wind
and solar power projects. Transmission & wheeling charges for third party sale or
captive use within or outside the state the wheeling and transmission charges will
be recovered in cash as per orders of the commission48
.
Power banking
As per “Terms and Conditions for Determination of Tariff for renewable energy
Sources - Wind and Solar power Regulations, 2014” 49
by RERC, the power banking
of solar and wind energy is allowed at consumer end for only captive consumption
within the state. The period of banking will be monthly basis and banking charges at
2% of banked energy would be payable.
Clearances
Wind power projects are exempted from State Pollution Board clearance. Further,
no N.O.C is required from Gram Panchayat for installation of wind farm in the
government allotted land Solar power projects are notified under “Green Category”
and a comprehensive consent to establish and consent to operate shall be issued for
solar project by PCB within 15 days from the date of application submission.
Other incentives
Incentives available under Rajasthan Investment Promotion Scheme (RIPS) shall be
available to the solar and wind power projects.
The Cross-subsidy surcharge shall not be applicable in case of open access
transactions based on wind and solar power50
.
Wind energy used for captive consumption is exempted from electricity duty.
The transmission charge for solar power projects, commissioned from April 2015 to
march 2018 shall be charged 50% of the normal transmission charge51
.
No energy scheduling is applicable for solar power generator for intra-state ABT.
Based on the availability, Water Resource Department shall allocate water from
IGNP canal or nearest source of water for solar thermal power plant.
Solar rooftop – net metering52
The installed capacity of the solar rooftop PV system is limited to 1MW installed
capacity and not be more than 80% of the consumer’s connected load or contracted
demand. The total installed capacity of the solar-rooftop PV system is not be
more than 30% of the distribution transformer capacity. Energy generated by
solar rooftop is exempted from banking and wheeling charges and cross subsidy
surcharge. The energy banking allowed for a month and credit will be carried
forward to next period to the extent of 50 units. DISCOMS can use the energy
generated by solar rooftop power plant for meeting its solar RPO through entire
generation from a net-metering plant, when the consumer is not an obligated entity.
66
Confederation of Indian Industry
Tamil Nadu
Tamil Nadu is among the states with highest insolation of 5/5 – 6 kWh/sq. m./day has been proactive
about encouraging wind and solar power installations. The renewable energy target for Tamil Nadu,
by 2022, is 21.508 GW of which 8.88GW is from solar power and 11.9 GW is projected to be from
wind energy53
. The state laid down a progressive solar policy in 201254
, with ambitious goals, such
as to generate an additional 3,000 megawatts (MW) of solar power by end-2015.
Thestatealsohadplanstolevya6%SolarPowerObligation(SPO)uponpowerconsumers.However,
the state electricity tribunal has set aside these directives and the renewable energy sector had
suffered due to this legal setback. Tamil Nadu is yet to have any formal wind energy policy for the
state.
Incentive Category Description of Provided Incentives
Land availability and Land
acquisition
Land acquisition is the responsibility of the investor.
Subjected to availability, industrial estates shall be allocated for erection of solar
power plants.
Power evacuation
The power evacuation facility is to be erected and maintained by the project
developer in line with requirement of TNERC.
Open access and wheeling
Intra-state and inter-state open access and wheeling of power is allowed.
For wind power projects and solar power projects, wheeling, transmission and
scheduling and system operation charges to be 40%55
and 30%56
respectively of
the charges as applicable to conventional power plants. The projects which are
opting for REC, 100% of the charges are applied.
Power banking
Wind power banking is allowed for one year, from 1 April to 31 March57
.
Banking of solar power is allowed for the billing cycle58
.
Clearances
For solar power projects single window clearance will be provided through TEDA in
30 days from date of application.
No specific time line is given for the clearance with respect to wind power projects.
Other incentives
100% of electricity generated from solar power used for self- consumption/sale to
utility, allowed for 5 years
Tax concessions will be given as per Tamil Nadu Industrial Policy
The cross subsidy charges for the third party open access consumers as proposed to
be 50% for both wind and solar power.
100% exemption from demand cut for the solar power plants.
Government shall identify the land for solar manufacturing parks.
Solar rooftop – net metering52
Net metering has been allowed in the solar policy 2012 to promote solar rooftop
PV system installation in commercial and individual buildings. The capacity of net
metering installation is not to be more than 90% of the connected load.
The energy accounting shall be done on 12 month basis from August – July with no
further carry forward.59
67Insights into Renewable Energy Adoption in India.
Appendix 5: Clearances & Permits for Solar and Wind Projects in
Maharashtra
Specific to renewable energy projects, the EIA rules are defined as:
•	 Biomass Projects up to 15 MW are exempted from EIA.
•	 Solar Photo Voltaic (SPV) all capacity is exempted up to a plant size of 50 hectares.
•	 Small Hydro Projects (SHPs) are exempted up to a capacity of 25 MW - But the project
proponents have to approach State Pollution Control Board (SPCB) for clearance under Air and
Water Act.
•	 No EIA for wind projects of any capacity is required.
Wind and Solar and hydel <25 MW have been moved from Red category to Green as per the
CPCB clarification of amendment in the categorisation of industries based on pollution potential.
(http://mpcb.gov.in/consentmgt/pdf/Clarificatory%20amendment%20in%20thecategorisatio%20
industries%20RedOrangeGreen_grantconsent.pdf)
68
Confederation of Indian Industry
For wind and solar projects need CTE and CTO from the state pollution control authority.
For solar projects, keeping in view the extent of land required, the state pollution control board
before providing the consent to establish, must ensure that the proposed area does not involve
	 1. Wet land,
	 2. Any agricultural land
	 3. Eco sensitive area
	 4. Large habitation
	 5. Areas rich in biodiversity.
http://mnre.gov.in/file-manager/UserFiles/environmental_clearance_grid_connect_stp_jnnsm.pdf
For forest land, clearance from forest department must be taken. Projects of national importance
like wind and solar farms can be granted forest land on lease through a detailed two stage process
by the MoEF.
In Stage-I, the developer provides the necessary documents to the Divisional Forest Officer (DFO),
who assesses the Net Present Value (NPV) of the current forested area to make recommendations
for forest land diversion and determine areas for compensatory afforestation.
In Stage-II, MoEF or its regional office reviews the document and gives a go ahead for the project.
Forest areas are identified using forest atlas and GIS maps and alternatives have to be considered
to minimize forest land use during this process.
No renewable energy project may be undertaken in coastal region.
Listed below are the clearance s and permits required for wind power projects in Maharashtra
1. Type test certificate
2. Grid connectivity permission
3. Land ownership documentation/ Forest land clearance
4. Wind assessment document from NIWE or verified by NIWE
5. No-objection certificate from local body
6. Notarised undertakings prescribed by MEDA
Listed below are the clearance s and permits required for solar power projects in Maharashtra
1. Grid connectivity permission
2. Land ownership documentation
3. Solvency certificate of up to 30% of project cost from any nationalized/scheduled bank
4. Mandatory to inform SLDC about the electricity generation through real time visibility.
5. Permission required from MEDA for installations on government waste land
6. Notarised undertakings prescribed by MEDA
69Insights into Renewable Energy Adoption in India.
List of Clearances and Permits for Renewable Energy
Projects in India.
Sr. No. Details
Approvals to be obtained by the Developer
Pre Bidding Approvals
Pre bidding approvals
1
Registration under PAN, TAN, IEC, Service tax, Entry Tax, VAT law and
Central Excise and Customs Acts.
2 Identification of nearby substation
3
Load flow analysis/connectivity letter from the Utility, with estimate for
bay extension received from Transco
4
Identify the location, where the numbers of farmers are less preferably:
At least 30-40 acres per farmer or an aggregator who as a GPA for his
name Local intelligence on who is having how much land:
PostAwardPrePPAapprovals
Post Award Pre PPA process
1 Creation of SPV for the project
2 Project registration certificate and documents.
3
Power purchase agreement/approvals with the relevant distribution
licensee in AP.
4 Power Evacuation Agreement with State Utility
Private Land Acquisition
1 Collect all the documents
2 Verified by the advocate for the due diligence
3 Public notice for acquiring the land, needed for legal due diligence
4
If cleared legally, you can buy from the aggregator, see the land is
contiguous,
5
There is an system if AP, Karnataka, Telangana, , you can buy a land only
up to 54 acres then you can apply for NA conversion The entire land
acquisition needs to be done stage wise. Deemed NA conversion. Solar
policy document available on NREDCAP. After submitting fees deemed
conversion is received takes about 45 days. After submission you can
easily start construction. The land has to be purchased in blocks and
applied for in stages with limit of 54 acres.
Revenue Land
1
After identification of land. Apply NREDCAP, approval at CM, revenue
minister office, the nodal agency will send it to energy secretary, from
energy secretary it will go to district collector. Collector – Joint collector
– Revenue divisional officer – Mandal/Tehsildar – Government surveyor.
70
Confederation of Indian Industry
Sr. No. Details
PostAwardPrePPAapprovals
2
Basedonthemarkettheysubmitprepareaproposalanditwillgotohigher
authorities. RDO will give approval and submit his report. JC will inspect
the land and submit the reports and recommend the price. Collector will
send it to CCLA (Chief Commissioner land administrator at the rank of
CS).
3
A committee called APLNA – meets one in a month which is attended
by all secretaries and the proposal will be presented to the authority to
review it. After getting cleared in APLNA it will be forwarded to state
government.
4
Process: It has to be cleared to revenue, finance, Chief Secretary of state,
revenue minister and then it goes to CM. Once it is cleared by CM it will
be cleared by cabinet meeting. GO will be issued in the name of company,
defining the land and purpose. (In wind the GO will be issued in the name
of NEDCAP and developer, after commissioning NREDCAP will be go
back from GO)
5
ALIENATION or lease. Based on GO 571 AP is not doing alienation, will
give only for special cases, but by default by lease, 25-30 years based on
plant life. Prepare the project feasibility/DPR for application to NEDCAP.
6 Process time required is 4-6 months: after expenditure
Post PPA Pre Construction
Post PPA - Pre Construction
1
Construction of Plant No required from gram panchayat, required for
both government and private land:
2
Factory license is required before commencement. Submission of layout,
Directory factory . Registration under the Factories Act, 1948, Approval
of building plans under factories act
3
Commercial taxation/state tax with local authority once again at the local
level for the plant
Municipal registration: Business establishment certificate: Company
registration document, Project NoC, in the name of the SPV.
4
Separate approval for control room buildings required director-town and
country planning - 2 weeks
5
Pollution control board No-objection certificate (CTE) from pollution
control board, if required.: Telangana state industry policy IPASS –
Single window clearance system: Apply online, upload some documents
viz. plant layout, building plan all these documents to the concerned
department. Also single point contact for factory license and town and
country planning: Consultant to Establish and Consultant to Operate
6
Approval from competent Authorities of AP state government for the
procurementofgoodandmaterialwhileexecutionofWorkatconcessional
custom duties and “nil excise duties” as currently for grid connected solar
power plants.
7
Approval for ground water extraction from competent authorities (if
required).
8
In case of bidding: evacuation related feasibility and approval is not
required: The makes and models, the SLDs, submit it to the Transco,
equipment layout and they approve. Submission of letters, and pay
supervision charges. But for open access : Load flow analysis, from the
nodal transmission authority, Identification of the substation as a spare
capacity confirmation is the first requirement.
71Insights into Renewable Energy Adoption in India.
Sr. No. Details
PostAwardPrePPAapprovals
9
Right of access and permits for Transmission Lines and interconnection
of the same from plant Battery Limits to the nearest TRANSCO/DISCOM
receiving sub-station. Transmission Agreement, Section 68 approval,
PTCC clearance.
10
EmployerobtainsregistrationasPrincipalEmployerfromtheDepartment
of Labour. Registration and licenses under Contract Labour (Regulation
and Abolition) Act, 1970
MNRE
1
Submission of any bond / undertaking / declaration to customs / central
excise / any other tax authorities / MNRE / Designated government body
required in connection with the procurement of material (both imported
and indigenous).
2
Declaration of Project Site for the purposes of IHS code for the purposes
of material procurement (both imported and indigenous)
3 Approval for MNRE for concessional customs and nil excise duty
4 Approval from Local Body / Panchayat / Tehsildar
Pre Commissioning Approvals
Pre Commissioning
CTO from pollution control board
ELECTRICAL
Load flow approval
Bay allotment approval
Transco Approval
Scheme approval
All drawing approvals
All inspections including stage , onsite and offsite and final inspection and
getting NOC
All required liasoning for the above works
CEIG
CEIG- drawing approval
CEIG- site visit
WCC-Discom( work completion certificate)
WCC by TRANSCO
WCC by OPS and maintenance
WCC by MRT
72
Confederation of Indian Industry
Sr. No. Details
Pre Commissioning Approvals
WCC by SLDC
Synchronization
Transmission utility
Distribution utility
Transmission utility
TSSPDCL
(TL & Metering)
TSTRANSCO
TSSPDCL
NEDCAP (Nodal agency )
DPE (vigilance)
Synchronisation Committee formation by discom
Appendix 6: Renewable Energy Policy Brief, Brazil
Brazil’s Renewable Energy Policy is exemplary. The policy can be accessed at
http://www.irena.org/DocumentDownloads/Publications/IRENA_RE_Latin_America_
Policies_2015_Country_Brazil.pdf
73Insights into Renewable Energy Adoption in India.
Name Energy Mix Specific Remarks
What India can learn and watch
out for
Iceland
Primarily
Geothermal
85% and 15%
hydropower
Iceland is on volcano and this
makes it possible to tap the earth’s
warmth
In talks with Britain to build an
interconnector to the UK grid
(tapping its geothermal capacity
for neighbouring countries)
Iceland switched to geothermal in a big
way from fossil fuel in the 1990s. It has
shown the world that given resources
“what a nation can achieve when it sets
it mind to it!”
Lesotho
Hydropower
100%
Lesotho Highlands Water
Project powers this tiny African
nation. Project is riddled with
controversies and serious
corruption.
Lesotho project was based on breaking
the sanction which was then imposed
on South Africa. Riddled by corruption
at the highest level project was
implemented with serious adverse
impact on people and environment.
Norway
Hydropower,
geothermal, wind
98% of power generated is
Renewable, but only 24% is
consumed in Norway – remaining
from fossil fuel. Norway sells its
Renewable power to neighbouring
countries in form of Clean Energy
Guarantees of origin.
Norway has oil reserves and has
prudently used the oil money to create
a fund which is invested outside.
It focussed on using funds to create
and sustain traditional industries such
as fishing and develop its renewable
energy portfolio.
Costa Rica
Hydro,
Geothermal,
wind, biomass and
solar 99% - 1%
fossil fuel.
Recently made headlines for
operating on 100% renewable
energy for 285 days.
Small country with big ambitions in
renewable energy – it understands that
hydro power will suffer in course of
drought, back-up plan is to invest in a
large geothermal project.
Bhutan Hydro 100%
Exports 85% of its power gener-
ated to India.
Impact on stranded assets with
withdrawal of glaciers is something to
watch out for
In dry season Bhutan needs to import
power from India.
Uruguay
Biomass, Solar,
hydro
Uruguay is another country that
is generating 95% of its electricity
from renewable energy.
Clear decision-making,
A supportive regulatory environment
Strong partnership between the public
and private sector.
Importance of cross party support
which emerged after a rancorous
debate on its energy policy in 2008.
Appendix 7: Learnings from The World
Countries across the world where renewable energy contributes to 100% of the energy demand.
74
Confederation of Indian Industry
Countries that are amongst the top in Renewable Energy Consumption:
Country Portion What India can learn from
USA
22% of the global
consumption of RE.
USA is looking at renewable energy as a means to revive its economy
though American Recovery and Reinvestment Act 2009
India must look at the energy policy as a means to revive green jobs in
this sector
USA has complained to the WTO about India’s minimum requirement
for procuring locally produced solar panels.
China
RE as a means of energy
security above fossil fuels.
Technological innovator in solar and wind, leading to reduction in cost
of installations
India must learn from China and establish a way to encourage
innovation and R&D in renewable energy technology.
Germany
27% of its power is from
renewable.
Germany, the world’s
fourth largest economy,
has promised some of the
most aggressive emission
cuts—by 2020, a 40
percent cut from 1990
levels, and by 2050, at
least 80 percent.
Accelerated adoption after govt. shutting down nuclear after the
Fukushima nuclear disaster
Aggressive targets and rapid transition to renewable energy moving
away from fossil fuel and nuclear at the same time
Grass root level movement involving citizens - Individual citizens and
local citizen associations have made half the investment and there are
1.5 million citizens selling power to the grid
Utilities are resisting as they are still based on coal
Fraunhofer Institute is a world leader in solar research – focus on
research has helped Germany transition to Renewables
Protection of its forests due to acid rain – death of forests made them
think harder about fossil fuel emissions
Spain
The country is still the fifth
largest producer in the
world of wind power and
the third biggest exporter
Spain is committed to
meeting 20 percent of
its energy needs through
renewables by 2020,
compared to the current
15 %
Government dishonouring of solar tariffs ruined lives of several
individual citizen investors
Spain was leading in renewable energy in 2008 till a changed
government led to abandoning of its solar growth
Spain wants to make up the ground it lost during the economic crisis
when it reversed its policy slashing subsidies and decimating the
sector
Some strong companies survived the economic downturn by doing
business outside of Spain
Brazil
Brazil entered a bilateral
agreement with the US to
obtain up to 20% of their
electricity from renewable
power by 2030.
Clearly researched well-articulated policy
Clarity in thought in evolution of a holistic energy policy
Focus on biodiesel and a clearly working mechanism on the ground for
reduction of transportation emissions.
Italy
28.5% of the total energy
is from renewable energy
sources; Just Solar PV
provides 7.8% of the
nations’ demand.
In Italy, grid operators are obliged to give priority access to renewable
energy plants in the operation of their grids. In Italy, training
programmes on renewable energy are developed at regional level.
Certification of installed plants is obligatory. All new or refurbished
buildings must integrate RES, with an additional 10 % to the obligation
level for public buildings. A guarantee fund is in place for supporting
district heating network development. In addition, a loan can also
be used for supporting investment in district heating infrastructure.
Further, Italy is subsidizing electric cars since transport accounts for
their large emissions footprint. Italy is also giving Income Tax credits
(50% deductions) for captive and residential solar PV plants less than
20kW.
75Insights into Renewable Energy Adoption in India.
Appendix 8: Cdp Scores And Renewable Energy Initiatives
Of Selected Enterprises
CDP Scores and renewable energy Initiatives listed for a select cohort of companies.
Name of
Company
CDP 2015
Disclosure Score
Initiatives related to Renewable Energy listed in CDP Report
AB Management
Corp.
No response
Ambuja
Cements
97
They have installed a330 KV Solar energy plant at Bhatapara,
Chhattisgarh and a 7.5 MW Wind energy plant at Kutch, Gujarat.
Bharti Infratel Not scored No response towards CDP Reporting
Cairn India 65 Solar lights installed in 2014 generated 42,860 kWh of electricity
Chambal
Fertilisers
Not scored No response towards CDP Reporting
Coal India Not scored No response towards CDP Reporting
DLF Not scored No response towards CDP Reporting
Dr Reddy’s
Laboratories
97
Signed PPAs of 15 MW with solar power producers (DRL will pay 26%
equity of projects); established biomass based steam production plant in
Pydibhimavaram.
DSM India Not listed
DSM has solarised their Pune office with a 1 MW plant, as a technological
demonstration of anti-reflective coating for improving solar panel
efficiency. Three more sites will be solarised in 12-18 months.
Godrej
Consumer
Products
Limited
94
Purchased 2764 MWh of renewable energy during the current reporting
year. Investing roughly INR 200 million in renewable energy and low
carbon technology
HCC Not listed
Not explored renewable energy due to the project based type of work in
construction sector
Hero Motorcorp Not listed Not listed in the CDP report
Hindalco No response
Hindustan
Petroleum
Corporation
Limited
Forthcoming Latest initiatives to be updated in the 2015 report
Idea AB No response
Indian Oil
Corporation
94 Existing installations: 63 MW wind, 5 MW solar, and 4.4 MW off-grid solar
Jubilant Life
Sciences
Not scored
In FY 2014-15, 4.54 % of total energy consumed was sourced from
renewables
Kansai Nerolac
Paints
Not Available No response towards CDP Reporting
Mahindra EPC Not listed
Mahindra Sanyo Not scored
Maruti Suzuki Forthcoming No previous response available for public viewing
NTPC Declined Declined
76
Confederation of Indian Industry
Name of
Company
CDP 2015
Disclosure Score
Initiatives related to Renewable Energy listed in CDP Report
Reliance ADA No response
Reliance
Industries
No response No response towards CDP Reporting
Shree Cements 90
Setting up 50 MW solar thermal; installed Waste Heat Recovery Systems
of capacity 81 MW
Suzlon Not scored
Tata Group Not listed
Tata Housing Not scored
Tata Power 92
Installed capacity: 59 MW solar, 468 MW wind, 573 hydro, and 120 MW
waste heat recovery
Tata Power Solar Not listed
TataRefractories Not listed
Titan No response No response towards CDP Reporting
UltraTech
Cement ADB
95
Poised to invest INR 49 crore in purchasing RECs due to being mandated
to meet RPO
Welspun
Renewables
77 NO initiatives mentioned clearly in CDP report.
Yes Bank 98
NO initiatives for direct installation or purchase of RE, BUT, will be
providing loans as "Green Energy Finance" to assist with renewable
energy installations. Made commitments to fund 500 MW renewable
energy in this FY.
77Insights into Renewable Energy Adoption in India.
Appendix 9: References
1
India’s INDC
http://www4.unfccc.int/submissions/INDC/Published%20Documents/India/1/INDIA%20
INDC%20TO%20UNFCCC.pdf
2
http://pinnacleengineeringsolutions.com/files/2016-01/1452152690_grant-open-access.pdf
3
Membersinclude:Adobe,Alstria,Autodesk,Aviva,Biogen,BMWGroup,BROADGroup,BTGroup,
Coca-Cola Enterprises, Commerzbank, DSM, Elion Resources Group, Elopak, Formula E, Givaudan,
Goldman Sachs, Google, H&M, IKEA Group, Infosys, ING, International Flavours & Fragrances
Inc.(IFF), J. Safra Sarasin, Johnson & Johnson, Kingspan, KPN, La Poste, Land Securities, Marks &
Spencer, Mars Incorporated, Microsoft, Nestlé, Nike, Inc., Nordea Bank AB, Novo Nordisk, Pearson
PLC, Philips, Procter & Gamble, Proximus, RELX Group, Salesforce, SAP, SGS, Starbucks, Steelcase,
Swiss Post, Swiss Re, UBS, Unilever, Vaisala, Voya Financial, Walmart and YOOX Group.
4
Low Carbon Technology Partnership Initiative, WBCSD, http://lctpi.wbcsdservers.org/portfolio-
item/climate-smart-agriculture/, accessed 22nd March.
5
http://there100.org/re100 RE100 is brought to you by The Climate Group in partnership with
CDP, as part of the We Mean Business coalition.
6
We Mean Business is a coalition of organizations working with thousands of the world’s most
influential businesses and investors. These businesses recognize that the transition to a low carbon
economy is the only way to secure sustainable economic growth and prosperity for all. To accelerate
this transition, this common platform helps to amplify the business voice, catalyze bold climate
action by all, and promote smart policy frameworks.
7
Members as listed in Reference 3.
8
Global Economic Forum Global Risks 2015:
http://www3.weforum.org/docs/WEF_Global_Risks_2015_Report15.pdf
9
http://www.theguardian.com/environment/2013/nov/20/90-companies-man-made-global-
warming-emissions-climate-change
10
International Energy Agency- World Energy Outlook Special Report, 2015:
http://www.worldenergyoutlook.org/media/weowebsite/2015/IndiaEnergyOutlook_WEO2015.
pdf
11
https://cprclimateinitiative.wordpress.com/2015/10/15/what-does-indias-indc-imply-for-the-
future-of-indian-electricity/
78
Confederation of Indian Industry
12
MNRE Annual report -2014-15:
http://mnre.gov.in/file-manager/annual-report/2014-2015/EN/Chapter%203/chapter_3.htm
13
https://www.cdp.net/CDPResults/CDP-India-climate-change-report-2015.pdf
14
Tentative breakdown of renewable energy power by 2022 for states and technologies, MNRE,
Government of India.
http://mnre.gov.in/file-manager/UserFiles/Tentative-State-wise-break-up-of-Renewable-Power-
by-2022.pdf
15
Press Information Bureau- Cabinet approves amendments in Power Tariff Policy, 20 January
2016: http://pib.nic.in/newsite/PrintRelease.aspx?relid=134630
16
Asia Development Bank- Green energy corridor- Project overview, December 2015:
http://www.adb.org/projects/44426-016/main#project-overview
17
State-wise Potential of Various renewable energy Technologies;
https://data.gov.in/catalog/state-wise-potential-various-renewable-energy-technologies
18
State-wise Potential of Various RE Technologies;
https://data.gov.in/catalog/state-wise-potential-various-renewable-energy-technologies
19
Solar rooftop installed capacity: Bridge to India- Solar rooftop Map, as of October 2015:
www.bridgetoindia.com/reports/india-solar-rooftop-map-2015
20
MERC- (DISTRIBUTION OPEN ACCESS) REGULATIONS, 2015:
http://www.mercindia.org.in/pdf/Order%2058%2042/DOA%20Regulations%202015%20
-16092015.pdf
21
https://www.cdp.net/CDPResults/CDP-India-climate-change-report-2015.pdf
22
https://www.cdp.net/CDPResults/CDP-India-climate-change-report-2015.pdf
23
http://www.theclimategroup.org/what-we-do/programs/ep100/
24
Renewable energy 100 India Briefing Report,
http://www.theclimategroup.org/_assets/files/Re100-India-briefing.pdf
25
https://www.infosys.com/newsroom/press-releases/Pages/join-renewable-energy-campaign.
aspx
26
http://climateparl.net/cpcontent/pdfs/101204%20Climate%20Parliament%20strategy.pdf
79Insights into Renewable Energy Adoption in India.
27
World Atlas, Top 15 countries using renewable energy http://www.worldatlas.com/articles/top-
15-countries-using-renewable-energy.html (Published: November 2, 2015)
28
http://www.mnre.gov.in/schemes/r-d/solar-pv-3/rd-strategy/
29
Niti Aayog, Export Report on 175 GW RE by 2022
http://niti.gov.in/writereaddata/files/writereaddata/files/document_publication/report-175-GW-
RE.pdf
30
JERC solar policy for Goa and union territories:
http://jercuts.gov.in/writereaddata/Files/SPGREGULATIONFINALJUNE.pdf
31
Solar rooftop net metering policy:
http://mpnred.com/Images/pdf/Draft_net_metering_Solar_Roof_Top_Policy_Policy.pdf
Wind power: http://www.mpnred.com/Images/pdf/Wind-Policy_ENGLISH.pdf
Solar power: http://www.mpnred.com/Images/pdf/solar-power-policy-english.pdf
32
Telangana Solar Power Policy 2015: http://mnre.gov.in/file-manager/UserFiles/state-power-
policies/Telangana-Solar-Power%20Policy.pdf
33
Maharashtra renewable energy policy
http://www.mahaurja.com/PDF/Policy%202015_2.pdf
33
MERC- Net metering policy
http://www.mercindia.org.in/pdf/Order%2058%2042/MERC%20(Net%20Metering%20for%20
Roof-top%20Solar%20PV%20Systems)%20Regulations,%202015.pdf
34
Karnataka Renewable Energy Development Ltd- Karnataka Solar policy 2014-2021:
http://www.kredlinfo.in/solargrid/Solar%20Policy%202014-2021.pdf
35
Karnataka Renewable Energy Development Ltd- Draft Karnataka renewable energy policy 2014-
21
http://www.kredlinfo.in/scrollfiles/RE%20Policy%202014-20.pdf
36
Karnataka Renewable Energy Development Ltd- Karnataka Solar policy 2014-2021:
http://www.kredlinfo.in/solargrid/Solar%20Policy%202014-2021.pdf
37
KarnatakaRenewable Energy DevelopmentLtd- Karnataka renewable energy policy 2009-2014:
http://www.kredlinfo.in/general/Renewable%20Energy%20Policy%202009-14.pdf
38
Andhra Pradesh Solar Power Policy,2015 http://www.ireeed.gov.in/policydetails?id=436
80
Confederation of Indian Industry
39
Andhra Pradesh Wind Energy Policy, 2015 http://www.ireeed.gov.in/policydetails?id=437
40
Andhra Pradesh Net Metering Policy, http://www.ireeed.gov.in/policydetails?id=37
41
MNRE, Tentative State-wise break-up of Renewable Power target to be achieved by the year
2022 So that cumulative achievement is 1,75,000 MW:
http://mnre.gov.in/file-manager/UserFiles/Tentative-State-wise-break-up-of-Renewable-Power-
by-2022.pdf
42
Gujarat Solar Policy 2015: https://geda.gujarat.gov.in/policy_files/gujarat_solar_power_
policy_2015.pdf
43
Gujarat Wind energy policy, 2013: https://geda.gujarat.gov.in/policy_files/Wind_Power_
Policy-2013.pdf
44
MNRE, Tentative State-wise break-up of Renewable Power target to be achieved by the year
2022: http://mnre.gov.in/file-manager/UserFiles/Tentative-State-wise-break-up-of-Renewable-
Power-by-2022.pdf
45
Government of Rajasthan- Energy Department- Policy for Promoting Generation of Electricity
from Wind-2012: http://www.rrecl.com/PDF/Notification-Wind%20Policy,%202012.pdf
46
Government of Rajasthan- Energy Department – Solar Policy 2015:
http://www.rrecl.com/PDF/Solar%20Policy%202014_08.10.2014.pdf
47
RERC: Term and conditions of tariff order- Solar and Wind, 2014
http://rerc.rajasthan.gov.in/Regulations/Reg79.pdf
48
RERC: Term and conditions of tariff order- Solar and Wind, 2014
http://rerc.rajasthan.gov.in/Regulations/Reg79.pdf
49
RERC: Term and conditions of tariff order- Solar and Wind, 2014
http://rerc.rajasthan.gov.in/Regulations/Reg79.pdf
50
RERC: Term and conditions of tariff order- Solar and Wind, 2014
http://rerc.rajasthan.gov.in/Regulations/Reg79.pdf
51
Government of Rajasthan, Energy Department- Policy directive to provide concessional
transmission charges to solar power projects:
http://www.rrecl.com/PDF/Policy%20Directive%20for%20Concessional%20Transmission%20
Charges%20to%20the%20Solar%20Power%20Plants.pdf
81Insights into Renewable Energy Adoption in India.
52
RERC Net Metering Regulations, 2015.:
http://rerc.rajasthan.gov.in/Regulations/Order84.pdf
53
MNRE, Tentative State-wise break-up of Renewable Power target to be achieved by the year
2022:
http://mnre.gov.in/file-manager/UserFiles/Tentative-State-wise-break-up-of-Renewable-Power-
by-2022.pdf
54
Govt. of Tamil Nadu- Solar policy 2012:
http://mnre.gov.in/file-manager/UserFiles/guidelines_sbd_tariff_gridconnected_res/
Tamilnadu%20Solar%20Energy%20Policy%202012.pdf
55
TNERC-Comprehensive Tariff Order on Wind Energy-2014:
http://tnerc.tn.nic.in/Concept%20Paper/2014/Wind%20Consultative%20paper-25-09-2014.pdf
56
TNERC-Comprehensive Tariff Order on SOLAR POWER:
http://tnerc.tn.nic.in/orders/Tariff%20Order%202009/2014/solar%20order/Order%20No%20
4%20of%202014%20dated%2012-09-2014.pdf
57
TNERC-Comprehensive Tariff Order on Wind Energy-2014:
http://tnerc.tn.nic.in/Concept%20Paper/2014/Wind%20Consultative%20paper-25-09-2014.pdf
58
TNERC-Comprehensive Tariff Order on SOLAR POWER:
http://tnerc.tn.nic.in/orders/Tariff%20Order%202009/2014/solar%20order/Order%20No%20
4%20of%202014%20dated%2012-09-2014.pdf
59
TNERC-Order on LT Connectivity and Net-metering, in regard to Tamil Nadu Solar Energy Policy
2012: http://teda.in/pdf/tnerc.pdf
82
Confederation of Indian Industry
About Mahindra
The Mahindra Group focuses on enabling people to rise through solutions that power mobility,
drive rural prosperity, enhance urban lifestyles and increase business efficiency.
A USD 17.8 billion multinational group based in Mumbai, India, Mahindra provides employment
opportunities to over 200,000 people in over 100 countries. Mahindra operates in the key
industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles,
information technology, financial services and vacation ownership. In addition, Mahindra enjoys a
strong presence in the agribusiness, aerospace, components, consulting services, defence, energy,
industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheeler
industries.
In2015,Mahindra&MahindrawasrecognizedastheBestCompanyforCSRinIndiainastudybythe
Economic Times. In 2014, Mahindra featured on the Forbes Global 2000, a comprehensive listing
of the world’s largest, most powerful public companies, as measured by revenue, profit, assets and
market value. The Mahindra Group also received the Financial Times ‘Boldness in Business’ Award
in the ‘Emerging Markets’ category in 2013.
Contacts
Anirban Ghosh,
Group - Chief Sustainability Office
Naresh Patil,
Head, Corporate Sustainability Cell
Visit us at mahindra.com
Our Social Media Channels
twitter.com/MahindraRise
facebook.com/MahindraRise
83Insights into Renewable Energy Adoption in India.
84
Confederation of Indian Industry
About Treeni
TreeniSustainabilitySolutionsPrivateLimitedisasustainabilityconsultingandtechnologysolutions
companyfocusedondeliveringvaluethroughconsulting-led,low-cost,scalable,innovativesolutions
to address organisational sustainability challenges. At Treeni’s core is the ReSustain platform that
offerscomprehensiveperformancemanagementandanalyticsfocusedonenterprisesustainability.
Founded in December 2015, and we are based out of Pune, Mumbai, Bangalore and Atlanta.
Wespecializeinend-to-endsustainabilitystrategyanddatamanagementsolutions.Weunderstand
the importance of collaboration and sound sustainability information in disclosures, performance
and reporting. We believe technology will change the way sustainability is implemented on the
ground, tracked and monitored and reported.
Treeni, as an organisation, believes firmly in delivering high quality work with the goal of making our
customers self-sufficient in the least amount of time possible. We have experience in transitioning
organizations into a sustainability leadership position. Our consultants have over 30 years of
collective experience in building sustainability strategy through a systematic approach focussed on
stakeholder engagement. Our consultants are GRI trained and certified, GHG inventory quantifiers
and have experience in systemising sustainability performance as per international frameworks for
various sectors ranging from Renewables, Automobile, Telecom, ICT and Retail, to Manufacturing,
Construction and the Food industry.
Our expertise & services isn’t limited to client concerns & broad based sustainability issues but also
extend to new age concepts like circularity, shared value, societal valuation etc.
Contacts
Dr. Sunita Purushottam,
Head of Consulting
Sharmistha Shome,
Sr. Consultant
Vinodh Valluri,
Sr. Associate Consultant
Visit us at treeni.com
Our Social Media Channels
linkedin.com/treeni
85Insights into Renewable Energy Adoption in India.
86
Confederation of Indian Industry
About The Climate Group
The Climate Group is an award-winning, international non-profit. We specialize in bold, catalytic
and high-impact climate and energy initiatives with the world’s leading businesses and state and
regional governments. Our work is at the forefront of ambitious climate action. Our vision is a world
of prosperous ‘net-zero’ emission economies and thriving, sustainable societies.
Our mission is to catalyse climate leadership in government and business to accelerate the shift to a
prosperous and thriving ‘net-zero’ future for all. We do this by communicating to inform, convening
to connect, and collaborating to scale and succeed. Founded in 2004, our offices are located in
Beijing, Hong Kong, New Delhi, New York and London.
The Climate Group is one of the founding members of We Mean Business – a coalition of
organizations working with thousands of the world’s most influential businesses and investors.
These businesses recognize that the transition to a low carbon economy is the only way to secure
sustainable economic growth and prosperity for all. RE100 is an action of the We Mean Business
coalition. Businesses must play their role, adopting climate plans such as going 100% renewable.
The Climate Group is helping companies that want to achieve this with the RE100 program, which
shows how it is possible to provide energy security, help manage fluctuating energy costs, improve
reputation and deliver carbon emission reduction goals.
Contacts
Rashi Gupta,
India Partnership Manager
Shilpi Samantray,
Project Officer
87Insights into Renewable Energy Adoption in India.
The Confederation of Indian Industry (CII) works to create and sustain an environment conducive
to the development of India, partnering industry, Government, and civil society, through advisory
and consultative processes.
CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a
proactiveroleinIndia’sdevelopmentprocess.Foundedin1895,India’spremierbusinessassociation
has over 8000 members, from the private as well as public sectors, including SMEs and MNCs,
and an indirect membership of over 200,000 enterprises from around 240 national and regional
sectoral industry bodies.
CII charts change by working closely with Government on policy issues, interfacing with thought
leaders, and enhancing efficiency, competitiveness and business opportunities for industry through
arangeofspecializedservicesandstrategicgloballinkages.Italsoprovidesaplatformforconsensus-
building and networking on key issues.
Extending its agenda beyond business, CII assists industry to identify and execute corporate
citizenship programmes. Partnerships with civil society organizations carry forward corporate
initiatives for integrated and inclusive development across diverse domains including affirmative
action, healthcare, education, livelihood, diversity management, skill development, empowerment
of women, and water, to name a few.
The CII theme for 2016-17, Building National Competitiveness, emphasizes Industry’s role
in partnering Government to accelerate competitiveness across sectors, with sustained global
competitiveness as the goal. The focus is on six key enablers: Human Development; Corporate
Integrity and Good Citizenship; Ease of Doing Business; Innovation and Technical Capability;
Sustainability; and Integration with the World.
With66offices,including9CentresofExcellence,inIndia,and9overseasofficesinAustralia,Bahrain,
China, Egypt, France, Germany, Singapore, UK, and USA, as well as institutional partnerships with
320 counterpart organizations in 106 countries, CII serves as a reference point for Indian industry
and the international business community.
Confederation of Indian Industry
(Western Region)
105, Kakad Chambers 132, Dr. Annie Besant Road, Worli,
Mumbai – 400018 (India)
• T: + 91 22 2493 1790 • F: 91 2224939463 / 24945831
E: ciiwr@cii.in | W: www.cii.in
Follow us on :
facebook.com/followcii twitter.com/followcii www.mycii.in
Reach us via our Membership Helpline: 00-91-124-4592966 / 00-91-99104 46244
CII Helpline Toll free No: 1800-103-1244
Confederation of Indian Industry

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CII Report on RE with Mahindra-Treeni

  • 1. Insights into Renewable Energy Adoption in India The Corporate Story Confederation of Indian Industry Knowledge Partner
  • 2. 2 Confederation of Indian Industry Piyush Shah Chairman, CII WR Environment Sustainability in Business Sub-Committee 2016-17 & Executive Vice Chairman Hitachi Hi-Rel Power Electronics Pvt Ltd. Message Corporate renewable energy focus has been enhanced lately due to the formation of Low Carbon Technology Partnerships Initiatives (LCTPI) by the World Business Council for Sustainable Development (WBCSD) which aims to catalyse actions to accelerate low-carbon technology development, and scale up the deployment of business solutions such that global warming is limited to below 2 degrees C. Global companies such as IKEA, Swiss Re, BT, Formula E, H&M, KPN, Mars, Nestlé and Philips are taking bold steps to create transformative change needed to drive a clean energy revolution. The Government of India has also released an ambitious plan for enhancing RE use in India. Several top corporates in India too have deployed several renewable energy projects in the last 10 years. However, only two Indian company figures in the RE100 a global platform for committing to 100% renewable power. In spite of lofty goals and aims, achieving 100% renewable energy is still a dream for corporates in India. Managerswhoarerequiredtocreateabusinesscaseforrenewableenergyprojectsareill-equipped to handle challenges such as cost effectiveness, policy issues, funding and financial viability of renewable energy systems, multiplicity of government agencies and institutional structures, grid stability and availability, variation in state level wheeling criteria. In addition, corporates that previouslyinvestedincleandevelopmentprojectsfeelthattheremustbeamechanismtoincentivise corporate renewable energy projects. This paper investigates the corporate scenario for undertaking renewable energy projects, explores roadblocks and challenges, and benchmarks leaders who have adopted renewable energy business solutions in India. It highlights companies that are adopting RE, the challenges in adoption of renewable energy in India, and how some companies have overcome the hurdles associated, as well as the vendors in RE sector are, and innovations happening in this space. On behalf of the CII WR Environment Sustainability in Business Sub-Committee, I’d like to thank all the Industry members and stakeholders for their valuable inputs and support. I sincerely hope this report will stimulate further thought and dialogue, spurring a rich exchange of ideas.
  • 3. 3Insights into Renewable Energy Adoption in India. Report Objectives The global environmental status is scientifically proven to be increasingly threatened by climate destabilization, and renewable energy plays a pivotal role in helping bring balance to the ecosystem as well as human economies. This study occurs at a crucial juncture of climate policy, as Indian Government and leaders made aggressive commitment in adopting Renewable Energy at the meet at Paris for COP21. In the recent past, the Ministry of Environment, Forests, and Climate Change, Government of India, has taken several policy initiatives to facilitate the role of renewables and simultaneously empower “the billions at the bottom.” Notwithstanding the action or inaction of governments, it is necessary for corporate entities to take up the task of empowering society through their initiative and ingenuity. A majority of existing literature explores RE adoption challenges from the perspective of a government or a utility. With the increasing interest in adoption of RE by corporates, there is a necessity to delineate the challenges and opportunities, considering the corporate perspective. We have examined the challenges and opportunities for corporate and non-corporate entities to participate effectively in constructing a 100% renewable energy society. As part of this study, we had devised a survey to elicit the insights and insecurities of professionals and experts who are exploring renewable energy investment and adoption. We had also developed a realistic picture of the existing policy and technology developments to help corporations assess the gap between their present state and a potential RE100 scenario. On behalf of the CII WR Environment Sustainability in Business Sub-Committee, I’d like to thank all the Industry members and stakeholders for their support and inputs. I sincerely hope that you find this report informative and resourceful. Anirban Ghosh Head, Core Team- Energy, CII WR Environment Sustainability in Business Sub Committee 2016-17 & Chief Sustainability Officer, Mahindra & Mahindra Ltd
  • 4. 4 Confederation of Indian Industry Executive Summary Context Post COP21, India’s commitment to a low carbon economy has been demonstrated via several changes at policy level which have paved a path for quickening the pace of RE adoption in India. India’s INDC1 outlines a 40% nonfossil fuel based power by 2030 including 175 GW of RE by 2022, of which solar is expected to contribute 100 GW, and wind 60 GW. The policy thrust to renewables has been significant, and specific targets have been announced to accelerate the deployment of renewable energy. The National Action Plan on Climate Change (NAPCC, 2008) envisages a dynamic Renewable Purchase Obligation (RPO) target of 10% at the national level for 2015 with an annual increase of 1% in order to reach around 15% by 2020. The new electricity tariff policy is a step in the right direction for increased RE adoption. The Need for The Study and Study Methodology In spite of lofty goals and aims, achieving 100% renewable energy is still a major challenge for corporates in India. A majority of existing literature explores RE adoption challenges from the perspective of a government or a utility. With the increasing interest in adoption of RE by corporates, there is a necessity to delineate the challenges and opportunities, considering the corporate perspective. The objective of this RE Policy Paper is to inform key stakeholders about the existing perspectives on the current and potential initiatives in the pursuit of renewable energy (RE) consumption, benchmark leaders who have adopted renewable energy business solutions and to assess the main internal and external challenges on the path of achieving 100% RE use by corporate sector in India. The approach adopted for this work is based on primary data (through a survey) and secondary research. It also helps corporates to understand about the innovations happening in this space and vendors associated with it. The scope of the study is limited to policies of various states from the perspective of the Western Region comprised of Maharashtra, Goa, Madhya Pradesh, and Gujarat.
  • 5. 5Insights into Renewable Energy Adoption in India. Key Hurdles in Rapid Adoption The key hurdles perceived by stakeholders interviewed via the survey method cover 5 areas: 1. Anticipation of new RE technology, lack of awareness: This has an impact in form of deferred investment as corporates are still waiting for prices to lower further. 2. Gaps in technical evaluation and feasibility have been identified as the main technical constraints the implementation of RE, such as: (a) Variability of resource availability, (b) Storage of excess power generated by RE, and (c) Feeding of power to the grid 3.Policyimplementation&Governmentclearances:Singlewindowclearancesandeaseofnavigating through maze of disparate policies is definitely a turnoff. Unlike states like Rajasthan, Karnataka, Telangana, and Tamil Nadu where the timeline for the approval and clearance has been specified, the renewable energy policy of Maharashtra does not specify any time line or turn around period for the application, approval and clearance. Though open access has been allowed in Maharashtra, no exemption is provided in wheeling and transmission charges of renewable energy power. This is slated for change with the open access policy. 4. Net metering: Government of Maharashtra has approved the net-metering policy in 2015, whereas, Tamil Nadu has approved and started promoting its net-metering policy from 2012. Due to late initiation of the net metering in Maharashtra, Solar rooftop PV system in Maharashtra has encountered set-backs. Moreover, Open Access permission will not be granted to the consumers availing single point supply and sub distributing it further to multiple consumers. E.g. Commercial Malls,ITparks,commercialcomplexes,softwaretechnologyparksetc.Suchconsumersarerequired to apply for Distribution Franchisee through MoU route or take separate individual connections as per relevant Regulations & Orders of MERC. (Refer Procedure for grant of open access permission, MAH govt. order)2 5. High initial project financing costs: Upfront project costs scares several investors, and leads them to believe that open access of RE through grid-procured power purchase agreements would be the most viable option 6. Project Implementation related issues: Implementation phase of RE generation encounters hurdles in: • Land acquisition and space availability; • Identification of vendor & EPC(Engineering & Procurement Service Provider) service provider; • Lack of awareness of the related policies at the ground level • Discouraging attitude of utility companies towards commercial consumers, • No incentives for project developers
  • 6. 6 Confederation of Indian Industry Conclusion Falling cost of renewables, new progressive policies have set the tone for larger RE adoption. This will be hastened if the key asks are well received and addressed by the government. Key asks by Corporates from Government in context of RE are as follows: • Strict monitoring of RPOs and RGOs for a robust REC market • Implementationofthetariffpolicyonthegroundthroughaclearguidanceatalllevels. Seamless facilitation of access to Renewable Energy via grid through PPA • Simplification and standardisation of policies across states. • Single window clearances. • Availability and awareness of various viable financial models for off grid and grid based RE. The two key outcomes of this work are: 1. Results of the Survey on Renewable Energy Perspectives from corporate India indicated that variety of hurdles exist, however overall adoption is expected to increase. 2. Analysis of current RE policy scenario in India revealed that the government of India has taken several steps which will boost RE adoption. However, there is a concern regarding weak governance, and on ground implementation support. Strengthening these will be key to RE adoption. The Western Region comprising of states of Maharashtra and Gujarat has the largest concentration of business houses. Textiles, pharma, petroleum, IT, chemicals, electronics, heavy chemicals, automobiles, food, and plastics are some of the major industries in the region. Infosys and Tata Motors are the two Indian companies that figure in the global list of over 55 companies3 which have signed up for RE 100 program, it is in the interest of all to see more companies declare their commitment in a similar fashion. This will help India transition to a low carbon economy.
  • 7. 7Insights into Renewable Energy Adoption in India. Contents Executive Summary Context The Need for the Study and Study Methodology Key Hurdles in Rapid Adoption Conclusion Reason for this study Methodology and Scope Background A. India’s Renewable energy journey B. Penetration of renewable energy in India C. Current renewable energy goals D. Projections for 2022 at the current rate of increase in renewable energy Solar Power Projections Wind Power Projections Bio Power Projections Insights from Surveys and Interviews Current Hurdles in Renewable Energy penetration in Corporate India Good Policy gives Good Results Key takeaways for western region RE adoption by corporations in India COP 21 and Implications on renewable energy Adoption Intriguing Insights Future thoughts in Renewable energy – Climate Parliamentarian RE Ecosystem in India Learning from the World – Good and Bad Conclusion Appendices Appendix 1: Abbreviations and Definitions Appendix 2: List of Tables Appendix 3: List of Figures Appendix 4: State-wise Policy Highlights Appendix 5: Clearances & Permits for solar and wind projects in Maharashtra Appendix 6: Renewable Energy Policy Brief, Brazil Appendix 7: Learnings from the World Appendix 8: CDP Scores and renewable energy Initiatives of selected Enterprises Appendix 9: References About Mahindra About Treeni About The Climate Group 04 04 04 04 04 08 09 10 10 11 13 14 18 17 18 19 19 29 38 39 43 45 45 45 46 48 52 52 56 56 57 68 73 74 76 77 82 84 86
  • 8. 8 Confederation of Indian Industry Reason for This Study The global environmental status is scientifically proven to be increasingly threatened by climate destabilization, and renewable energy (RE) plays a pivotal role in helping bring balance to the ecosystem as well as human economies. This study was conceptualised at a crucial juncture of climate policy, as international leaders met at Paris for COP21, where in a historic Paris agreement on12th December2015,195nationssetpathtokeeptemperaturerisewellbelow2degreesCelsius. In the recent past, the Ministry of Environment, Forests, and Climate Change, Government of India, has taken several policy initiatives to facilitate the role of renewables and simultaneously empower “the billions at the bottom.” Notwithstanding the action or inaction of governments, it is necessary for corporate entities to take up the task of empowering society through their initiative and ingenuity. A majority of existing literature explores RE adoption challenges from the perspective of a government or a utility. With increasing interest in corporate RE projects, there is a necessity to delineate the challenges and opportunities, considering the corporate perspective. Corporate renewable energy focus has been enhanced lately due to the formation of Low Carbon Technology Partnerships Initiatives (LCTPI)4 by the World Business Council for Sustainable Development (WBCSD), which aims to catalyse actions to accelerate low-carbon technology development, and scale up the deployment of business solutions such that global warming is limited to below 2°C. Pertinent to adoption of Renewable Energy is the RE 100 initiative5 which is a collaborative, global initiative of influential businesses committed to 100% renewable electricity, working to massively increase corporate demand for renewable energy. The top corporates in India have deployed number of renewable energy projects in the last 10 years. Global companies such as IKEA, Swiss Re, BT, Formula E, H&M, KPN, Mars, Nestlé, Philips, among others, are taking bold steps to create transformative change needed to drive a clean energy revolution. They are all members of RE100 – a global, collaborative initiative of influential businesses committed to 100% renewable electricity. RE100 is led by The Climate Group in partnership with CDP, as part of the We Mean Business6 coalition. Infosys and Tata Motors, headquartered in India, are part of the global list of around 60 companies7 . A survey was devised to elicit the insights and insecurities of professionals and experts who are exploring investment and adoption of RE. This report analyses the realistic scenario of the existing policy and technology developments with an aim to help corporations assess the gap between their present state and a potential 100% RE scenario.
  • 9. 9Insights into Renewable Energy Adoption in India. Methodology and Scope The core approach adopted in developing this work is based on primary data obtained through surveys, interviews, as well as desk-based research. Primary data was collected via survey and interviews with companies based in Maharashtra, and secondary data on RE status, policies, and obstacles is obtained for other states in the Western Region and India. The national status on renewable energy progress, in terms of policy and technology is first drawn out by assessing the historyofREgrowthandpenetrationinIndia,aswellascurrentgoalsforgrowthassetinthecontext oftheCOP21ParismeetingsandtheIntendedNationallyDeterminedContributions(INDCs)stated by the Government of India. Projections for RE based on current data and anticipated growth are then made to identify the gap and potential for reaching the INDC goals. A thorough and detailed state-wise analysis of supportive policy statements is also presented here to quickly and easily inform readers about the scenario for RE progress in leading states. ThehurdlestoREpenetrationidentifiedviathesurveyandinterviewsarevettedviaanindependent evaluation of the present and potential challenges and opportunities for corporate adoption and investment in RE. Learnings from India from past success stories, as well as other countries are showcased to identify policy actions that strongly encourage RE progress. Insights from CDP report data and interview comments are also included to give more nuanced understanding of the obstacles for RE. This paper scope of the paper is centred on Solar and Wind as a major chunk of INDC commitment will be fulfilled via this route. It does not dive into Biomass and Waste-toEnergy adoption hurdles as that is a topic that needs to be discussed in detail separately. Scope of the interactions is limited to companies and vendors with operations in the Western region with special focus on Maharashtra. Corporate adoption challenges of both on-site off grid and grid based solutions have been touched upon in this paper.
  • 10. 10 Confederation of Indian Industry Background A. India’s Renewable Energy Journey The World Economic Forum has identified climate change as one of the top global risks in their 2015 risk assessment8 , where climate change is directly related to energy consumption and the ways by which required energy is produced. Just 90 companies across the world produce enough greenhouse gas emissions every year to account for 67% of the global emissions leading to climate change.9 Electricity generated from RE is considered to be carbon neutral and thus, have a significant contribution towards climate change mitigation actions. It has been projected by World Energy Outlook that “Over 50% of new generation capacity to 2040 comes from renewables and nuclear”10 . Electricity generation accounted for about 38% of India’s total greenhouse gas emissions in 2007.11 Installed capacity of grid-connected renewable energy projects in India has been steadily increasing since 2010, and has spiked in 2015. The installed capacity of RE systems in India has been moderate until 2014, with the cumulative total installed capacity of grid-connected RE systems in India rising from 31.70 GW to 33.79 GW between March 2013 and December 2014. However, there has been steep increase in RE in the year 2014-15, where it rose from 33.79 GW to 42.75 GW by March 2016. Figure 1: Cumulative Installed Capacity of Grid-connected Renewable Energy Systems in India, MW At current levels of growth, the electricity demand in India is projected to reach 2241 TWh by 2030. Owing to trends such as increased urbanisation, need for infrastructure development, and the “Make in India” initiative that summons an increase in local manufacturing. India has declared an Intended Nationally Determined Contribution (INDC) to reduce carbon emissions by 33-35% below 2005 levels by 2030. To achieve this goal, India will have to avoid 3.59 billion tonnes of CO2 equivalent emissions over the current ‘business-as-usual’ status. The country also aims for around 40% of the installed power capacity from non-fossil fuel-based energy sources by 2030. To achieve the RE contribution to the total power capacity mix, 175 GW of renewable power capacity has to be installed by 2022 and 300 – 350 GW by 2030. The development of RE technology in India officially began in 1981 with the
  • 11. 11Insights into Renewable Energy Adoption in India. formation of Commission for Additional Sources of Energy (CASE) in the Department of Science and Technology (DST). B. Penetration of RE in India The RE sector has shown a CAGR of 15.42% from 2010 to 2015. The table and graph shows the total RE capacity and growth in the RE installing -till March 2015 respectively. A survey that received 32 responses from Indian companies shows that grid-connected solar PV systems, wind power, and waste-to-energy systems appear to be the top choices for investment in RE technology by organizations, with 50% of the respondents choosing each option. The CDP India Report 2015 states that “[Indian] Organizations are getting more aware of opportunitiesandareinvestingsignificantlyinupstreamrenewableenergyoptions.”13 Captivesolar power, biomass-power, and solar water heating are also popular and seem to attract investment. From the corporate perceptive, climate change, emissions reduction, and environmental pollution concerns are the prime reasons for the organizations who responded to this survey to invest in renewable energy. Figure 2: Timeline of the development of RE in India. Units, GW Solar Power Wind Power Biomass Power Small Hydro Power Installed Capacity (March 2015) 3.38 22.65 4.18 4.03 2022 RE Goal as per INDCs 100.00 60.00 10.00 5.00 Total Potential Sources 748.99 102.77 25.09 19.75 Table 1: RE installed capacity as of March 201512
  • 12. 12 Confederation of Indian Industry Figure 3 Gap Assessment of renewable energy current installed capacity and total potential Figure 4: Top Choices of renewable energy Technology for Adoption Units,GW
  • 13. 13Insights into Renewable Energy Adoption in India. C. Current Renewable Energy Goals The renewable energy target for 2022 has been set as 175 GW, with a target of 100 GW from solar power, 60 GW from wind, 10 GW from biomass and 5GW from small hydro power plants (less 25 MW installed capacity). The new amended electricity tariff policy was published on 20 January 201615 . Following are the major amendments made, in particular, to encourage development of renewable energy in India. Regional break-down of RE Targets by Technology Statewise break-down of RE Targets (MW) Figure 5: Reasons for renewable energy Adoption and Investment14 Figure 5: Reasons for renewable energy Adoption and Investment
  • 14. 14 Confederation of Indian Industry • RPO has been increased from 3% by 2022 to 8% by 2019, excluding hydro power. This shall be mainly from solar power, thus increase in solar installed capacity to 69 GW by 2019. • Solar and wind power are exempted from the inter-state transmission charges and losses. This canpotentiallyboosttheinvestmentinsolarandwindenergyresourcerichstates.Greenenergy corridors for evacuating renewable energy shall have a significant impact on the renewable energy transmission between states. In December 2015, ADB has approved a loan of USD 1 billion for the “Green energy corridor” project by Power Grid Corporation of India Limited16 . • The new coal based thermal power plants have to generate or procure at-least 10% of its installed capacity from RE, after a specific date. The thermal power plants, due to their existing energy evacuation infrastructure and scale, shall have advantage over the independent power producer of renewable energy. • The power generated from waste to energy plant shall be procured. 100% procurement of power from waste to energy technology shall boost bio-energy generation. Theamendmentsinthetariffpolicyalsoallowthebundlingofrenewablepowerwiththeconventional coal power for which the PPA has been expired or the useful lifetime of the conventional coal power plant is over. This will help in improving the affordability of renewable energy. The amendments in the tariff policy have been made in view of the renewable target of 175 GW by 2022; however, the policy is observed to be highly ambitious and without proper strategy and action plan, the changes on the ground will be difficult to implement. The survey of 32 corporates shows that 63% of the respondents are satisfied with this policy change, and 38% are not satisfied. D. Projections for 2022 At The Current Rate of Increase in Renewable Energy The CAGR, as assessed for the year 2010-11 to 2014-15, of 6.58%, the renewable energy target of 175 GW is projected be achieved in the 2033 as opposed to 2022 as targeted. Overall, these projections predict that renewable energy target of 175 GWh by 2022 is not achievable at current CAGR. To meet the renewable energy target of 175 GW by 2022, the renewable energy in India needs to grow at the rate of 31% CAGR. Figure 7 At Current CAGR of 6.85%, INDC goals will be reached in 2031
  • 15. 15Insights into Renewable Energy Adoption in India. In terms of technology solutions, the main observation is that a majority of the survey respondents (84%) choose Waste-to-Energy as the primary technology option where infrastructure should be created for the realization of renewable energy targets by 2022. However, it is to be noted that the largest fraction of the renewable energy targets is the 100 GW goal for solar power, and 66% of the respondents agree that development of solar parks is necessary for reaching this goal. Figure 8: To achieve INDC goals by 2022, CAGR should increase to 31% or more Figure 9 Developments required to reach the renewable energy goals by 2022
  • 16. 16 Confederation of Indian Industry “In terms of renewable energy technology, we are mainly exploring solar because it matches with our load curve and has good ROI. We are also exploring other renewable sources for our future requirement. With renewable energy installations, one has to make sure that the installed plant is performing at the anticipated level, since down time or un-used assets are not profitable”. -Infosys “The installation of 100-GW solar PV systems by 2022 is vital to the success of India’s INDC statement the COP21, Paris. India’s INDC have been correctly made keeping in mind both, our need for growth and care for the environment. Royal DSM is a RE100 signatory and all our decisions are driven by this commitment. In India, DSM has operations at 6 sites, of which one already gets more than 50% power from renewable energy sources. (Pune – 1 MW technology demonstration PV plant also serves to meet that sites renewable energygoal). Moresites areconsidering solarpower overnext12-18months.Theseinitiativesaredrivenby sustainability goals and it gets better when they become commercially viable too. We are still in early days for solar in India. Most policies and procedures are going through a transformation, targeted at accelerating adoption of solar in India.” – DSM, India “While there is progress and excitement around COP21, it may not help achieve 100% renewable energy target, since that is very difficult to implement on the ground. The facilitation in regulatory environment is notyetcreatedtoenableashifttowards100%renewableenergy.Ecosystemhastobemodifiedtofacilitate it. There are no internal challenges, since there is common agreement on renewable energy initiatives, but external factors such as cost and regulatory framework around renewable energy has is the main obstacle.RE should become at-par with grid tariff in order for companies to take it up more aggressively. SERCs sometimes stop companies from using power from their own captive plants. Long term strategy of renewable energy procurement is set, with the goal of achieving 50% reduction in per capita emissions by 2020 using 2008 as baseline year. Science based goals are way ahead for us. However, renewable energy is on the radar and there is common agreement for pursuit based on our own maturity cycle.” – Prominent IT Major. Solar Power Projections Figure 10 At current CAGR (27.58%), 100 GW solar targets can be reached in 2028
  • 17. 17Insights into Renewable Energy Adoption in India. Wind Power Projections Figure 11 To achieve the 100 GW solar goal by 2022, we need a 90% increase in CAGR Figure 13 To achieve INDC goals by 2022, CAGR should increase by 40% to 13.45% Figure 12 At Current CAGR (9.61%), INDC goal for Wind power can be reached in 2025
  • 18. 18 Confederation of Indian Industry Bio Power Projections Figure 14 At current CAGR (9.6%), INDC goal for Bio power can be reached by 2025 Figure 15 To achieve INDC goal of 10 GW Bio power by 2022, CAGR needs to be 11.78%.
  • 19. 19Insights into Renewable Energy Adoption in India. Insights from Surveys And Interviews Current Hurdles in Renewable Energy Penetration In Corporate India Based on our interaction with various top corporates such as Infosys, DSM, Yes Bank, Mahinda and Mahindra, Tata Motors, Tech Mahindra, Dr. Reddy’s, TCS, ACC etc in India, and key vendors in this space via surveys and one-on-interviews the key hurdles can be bundled into 5 major sections. “The process of reverse tendering has resulted in investor bidding for tariff which is below the project financial feasibility. This acts as constraint in encouraging investment. It has been suggested that Feed-In Tariff is a better option as the investor is aware of the tariff. Implementation of FIT for all renewable energy supplyingpowertogridshallimproveinvestmentinrenewableenergy.Thenow-prevalentreversetendering process is not beneficial since it gives little time for careful planning. Investors should plan properly first.” “Currently, there is no policy in relation to the quality of the product used in solar rooftop and SPV large projects. The policy needs to be supported by strong legislation. Moreover, there is deferred investment thinking, since solar prices are crashing. In reality, several solar professionals need to understand the technology well enough to make it succeed.” “There needs a proper understanding of the relationship between continuously falling tariffs which bounds developers to invest into comparatively lower quality product specifically PV Modules to meet the ROIs. Strict guidelines with respect to PV Modules and inverters for country like India with diversified climate is essentially required to make sure that our multi-billion dollars (Almost 6,00,000 Crores INR) of investment is profitable.” The above comments are attributed to Infosys Ltd. “In addition, Infrastructure for power evacuation and transmission is considered as the major bottleneck Figure 16: Major Hurdles in renewable energy Adoption
  • 20. 20 Confederation of Indian Industry or hurdle. State utilities are not financially healthy enough to take care of the power evacuation and transmissioninfrastructure.Writing-off theloansofSEBscanbewayforimprovingfinancialhealthofSEBs. Laid-back attitude of state utilities also acts as constraint in the development of renewable energy. Coal India and NTPC are involved in infrastructure investment.” – Independent Consultant 1 (RK Mandoli) “One of the biggest drivers needed to achieve the 100-GW goal would be to attract adequate investment and funding. Another key challenge we foresee could be compromise on quality of the panels used. If we use sub-standard panels to reach this ambitious goal, it will impact the long term feasibility of solar and derail the entire thrust and optimism towards it.” – Prominent Indian Power Company “The first and foremost challenge is the need for a positive mind-set and willingness to adopt renewable energy. The JNURM had defined a national solar mission at a part of NAPCC (National action plan on climate change). Currently the PM is pushing for an aggressive solar adoption. However, this is not percolating down at grass root level and increasing adoption. There is a marked gap in what the Centre and State say and do, in terms of renewable energy. Centre wants renewable energy adoption in all states; however, at state level, there is no provision to make adoption happen on the ground. Power is a state subject. Oil and Coal is a central subject. If renewable energy adoption has to increase then renewable energy power should be a central subject and the states must make provisions for higher adoption of renewable energy. From countries energy security point of view the – India is heavily dependent on oil imports. Wind energy adoption in India has been successful, Biomass there is an issue of storage and assured availability, solar has potential in this country. Solar is DC – lots of devices like LED, laptops, chargers can accept DC current. If 2 types of wiring systems are available then adoption could be influenced In India very few biomass plants have come up. 5000 MW of wind set up in India. Capacity utilization factor of wind and solar power plants is another issue. The capacity utilisation of solar is 20-25%. Tracking panels may increase cap utilisation but that increases the cost. Wind has a higher cap utilisation factor. If wind and solar both are combined in the same area the cap utilisation factor can be raised yielding higher power.” All above comments attributed to Independent Consultant 2 (Atul Shah) Major Hurdles to RE Adoption 1.Awareness and anticipation of new renewable energy technology. Description It has been observed from the survey outcome that 50% of the corporates consider deferred investment due to the technical maturity, continuous development and anticipation of new renewable energy technology and more cost-effective technologies.
  • 21. 21Insights into Renewable Energy Adoption in India. Ithasalsobeenindicatedbythecorporate,duringinterviews,thatthereisgapintheimplementation of central policies at state level. The lack of awareness on renewable energy policies in State Electricity Boards and SERCs acts as a hurdle in the process of renewable energy implementation. The need for capacity building, i.e., to develop awareness among non-technical professional who do not fully understand renewable energy and Climate Change, has been identified. Mostly companies whose top management is convinced and committed to RE, work with power and renewable energy consultants to help them in choosing the right technology. Some companies mentioned that the top management would like to see the business case for various options and then choose the most suitable one and hence easy to use tools, where ROI of projects can be worked out by the companies themselves would be wonderful. 2. Technical evaluation and feasibility. Description Issues such as (a) variability of resource availability, (b) storage of excess power generated by renewable energy and (c) feeding of power to the grid have been identified as the main technical constraints in the implementation of renewable energy. Solar roof-top installations encounter constraints in terms of old building structure. Since the GHG emissions from buildings accounts to over 35% of total emissions, new buildings must be designed to handle solar installations. Theexistingpowertransmissionanddistributioninfrastructureneedstechnologicaltransformation to eliminate power loss, including transmission & distribution (T&D) loss and power theft. The survey shows that 63% of the respondents consider development of smart grids as the most important infrastructure that can encourage organizations to invest in RE, followed by research and development infrastructure and local manufacturing facilities. Figure 17 Main external reasons for inertia in renewable energy adoption
  • 22. 22 Confederation of Indian Industry Technical evaluation of large-scale deployment of solar PV systems in India encounters barriers due to lack of testing facilities and qualified experts who can test and certify solar products, as well as the capability to qualify and demonstrate viability of solar modules based on local conditions. Nearly 60% of the respondents are interested in new renewable energy technologies that enable extraction of energy from landfills, sewage, and municipal solid waste. Concerning the ecosystem of infrastructure and technology around RE, a large majority of the respondents (63%) clearly indicate that improvements in the power output per unit installed capacity can largely influence organizations’ decision to invest in renewable energy. It has been a general observation that solar power technology is constantly upgrading and is in the path to be a business case for profitable investment. However, solar is yet to mature as technology Figure 19 Most Interesting New renewable energy Technology Options Figure 18 Most important infrastructure development for renewable energy progress
  • 23. 23Insights into Renewable Energy Adoption in India. to invest and other mature technologies such as micro-hydro, wind, should be further encouraged. Wind is most developed in terms of policy, process, and awareness and is a mature technology. 3. Implementation. Description Implementation phase of renewable energy generation encounters hurdles in A) land acquisition and space availability, B) identification of vendor and EPC service provider, C) lack of awareness of the related policies. Solar and wind renewable energy systems demand large space per unit of power generation. Furthermore, investors find it difficult to identify the appropriate vendor and EPC service provider in the current vendor environment. 34% of the survey respondents indicate that identification of vendors is an issue and 19% of the respondents identified land acquisition as a constraint. Implementation of solar power, specifically in urban areas, encounters acute space constraints. Currently, states do not have any system or policy to lease out land from the land banks to offer to renewable energy investors and incentivize land owners, to overcome space constraints. Implementation hurdle for waste to energy projects are collection of wastes and waste volumes. Wind adoption has been successful so far. Going forward, implementation hurdle for wind are state- wise policy constraints. For both solar and wind implementation hurdles are around lack of alignment of central and state governments. Some states are more pro renewable energy as compared to Maharashtra.., namely Karnataka and Telangana Implementation can be streamlined for vendors if at least for public. sectors renewable energy investors common guidelines for installation are drafted by NTPC, PGCIL, CEA. This would reduce the long wound process of project implementation. Figure 20 Main improvements required to ecosystem surrounding RE
  • 24. 24 Confederation of Indian Industry Practical implementation challenges for organisations that work out of leased facilities(such as banks with remote sites), shared sites(such as BTS), project based operations at sites(such as construction and heavy engineering infra firms) which are temporary make adoption and implementing renewable energy instead of diesel a distance dream. 4.Finance. Description High capital cost and low cost effectiveness of RE, particularly solar power technology, acts as a major hurdle in investment. Investment in renewable energy is yet to become a profitable business case that is economically sustainable for corporates. Figure 21 Main constraints to renewable energy project implementation Figure 22 Main reasons for corporates to invest in RE
  • 25. 25Insights into Renewable Energy Adoption in India. Therefore, there is absence of corporate strategy and budget allocation in renewable energy investment at present. The survey results indicate that corporate strategy statements are the vital mechanism (69%) that influences renewable energy investment decisions at organizations that responded to this survey, followed by ROI or Cost Benefit Analysis and the processes for identifying emissions reduction opportunities. Concerns about high ROI and low payback period are the key main internal obstacles to adoption of (and investment in) renewable energy at 63% of the organizations responding to this survey. Allocation of budget for renewable energy projects is another difficult obstacle on this path. “Foreign exchange fluctuations are also a concern: for instance, projects that were financially closed when thedollarwasat$63,aresufferingfromapercentagehitsincethenatpresentrates,affectingtheirbusiness model and IRR. Since solar is an infirm power, investments in grid balancing is also required. Adding to this, therearefrequentchallengesofacquiringlandinashorttime.Lastly,majorityofthe100GWprojectswillbe handled predominantly by private sector solar companies as well as few Government entities. Accordingly health and intent of state distribution companies will also play a pivotal role in long term perspective. If the system of reverse bidding continues with possibilities of lowered unfeasible prices, thereby making these projects unviable in case of any untoward change in input cost, and hence developer can opt out.” – Prominent Indian Power Company. It has been a general indication during the survey interviews that investment in renewable energy is also done to avoid high HT or commercial tariff. 47 % of the respondents agree that lower interest rates for renewable energy loan can spur investment, while 31% agree that streamlining paperwork pertaining to loans from banks or the government as the most vital external action that can encourage organizations. Project financing is tough for small projects. Figure 23 Main Internal Obstacles to renewable energy Adoption
  • 26. 26 Confederation of Indian Industry “The bottom-line for renewable energy progress is the financial aspects of investment and installation of renewable energy. Subsidies matter! Organizations should be given financial support. In addition, there is need for capacity building, to develop awareness among non-technical professional who do not fully understand renewable energy and Climate Change. This awareness should increase even among top-level decision makers and management so that they get a good idea of the benefits of RE, combined with ease of adoption. SEBI has made BRR mandatory for Top 200 companies. Similar specific guidelines for renewable energy adoption could be offered by SEBI to Top companies in the market, and the regulatory authority could conduct audits on progress of renewable energy installation and investments, showing not just commitments, but also clear action plans.” – Dr Reddy’s labs 5. Policy implementation and government clearance Description Implementation of policy at state level has been identified as one of major hurdles in renewable energy development in India. The issues related to policy implementation are: Implementation of RPO: Lack of strong compliance implementation of RPO has resulted to the failure of REC market. Since, the actual adaptation of RPO is poor and there are no actions taken against non-compliance with RPO, the demand and the market for Renewable Energy Certificates (REC) has not developed. Currently, the price of REC is lower than that for generating renewable energy or buying renewable energy power from grid. “Companies buy solar power to meet the RPO. Due to the low implementation of RPO and RGO, REC market has not developed. Strong RPO compliance implementation is required for the renewable energy market to develop. REC is cheaper than buying renewable energy power. However, strong implementation of these regulations will ensure renewable energy growth even if renewable energy captive generation does not make business case. Also, investment in renewable energy is mostly done to avoid the high commercial Figure 24 Main external actions that can boost renewable energy Investments
  • 27. 27Insights into Renewable Energy Adoption in India. power tariff. (This is particularly true for service sector like BPO, IT etc. which have huge infrastructure).” – ACC Limited Government clearances: Ease of doing business and obtaining government clearances act as barriers in development of renewable energy. There is also lack of awareness on renewable energy regulations and policies at the state level agencies. 44% of survey respondents identified lack of single window government clearances ass a major external hurdle encountered by corporates. Policy adoption: The onus for implementation of national policies lies with the state government, but the adoption of national policies on renewable energy by states is low in India. Even though Open Access and Net Metering have been introduced in the national renewable policy, in states like Maharashtra,thereisalackintheimplementation.Noenergybankingwasallowedinopenaccessin Maharashtra as per Distribution open access policy 2014. The lack of these policies implementation in Maharashtra has resulted in reduced cost effectiveness of renewable energy and increased cost of captive generation of renewable energy at the demand side. Policy around coal usage: Due to the reduction in the price of coal, the cost of conventional coal power is lower than power generated from renewable energy. Lack of incentive structure: In the current scenario, there is no incentive structure for procuring green power or investing in renewable energy. At least 66% of the respondents opine that offering encouraging incentives for innovation in renewable energy is the main policy change that can enable organizations to invest in renewable energy. 59% of the respondents also call for reduced renewable energy power tariffs for buyers as a Figure 25 Lack of single window clearances is an obstacle
  • 28. 28 Confederation of Indian Industry meansforincitinggreaterpurchaseofrenewableenergy.69%oftherespondentscallforsupportive government incentives for investment in renewable energy and for generation, and 47% favour better government subsidies as the most vital external action that can encourage organizations. It is a general observation that strong implementation of regulations will ensure renewable energy growth even if renewable energy captive generation does not make an immediately profitable business case. Figure 26 Policy changes that can spur renewable energy adoption and investment Figure 27 External financial environment for renewable energy progress
  • 29. 29Insights into Renewable Energy Adoption in India. Good Policy Gives Good Results It has been observed from the “Tentative State-wise break-up of Renewable Power target to be achievedbytheyear2022”byMNREthatofthetotalrenewableenergytargetof175GW,99.53GW is from solar, with 60GW from solar project and 40GW from solar rooftop, and 60GW is from wind energy. In view of this, the policy conditions are analysed for the states mentioned in Table 3 and detailed the policy highlights are provided in relation to solar and wind energy for mentioned states in Appendix 4. The top states of India with highest renewable energy installation for wind and solar power are Tamil Nadu, Gujarat, Rajasthan, Maharashtra, Karnataka and Andhra Pradesh. It is observed from Table 3, as of 1 March 2016 Tamil Nadu, Telangana, Rajasthan, Andhra Pradesh and Madhya Pradesh are the top states in terms of solar capacity addition. Furthermore, Rajasthan, Madhya Pradesh, Karnataka, Gujarat and Maharashtra are the top five states showing wind power capacity addition. It is observed that Maharashtra has the lowest capacity addition in solar power, among below mentionedstates,followedbyGujaratandKarnataka.Intermsofwindcapacityaddition,TamilNadu showed the lowest capacity addition, followed by Andhra Pradesh and Gujarat. Only Rajasthan and Madhya Pradesh are the two states who are among the top 5 states in capacity addition for both wind and solar. Variations across India in open access costs/tariffs, wheeling /banking charges and other open access charges make it difficult for companies to adopt renewable energy in reality. * Andhra Pradesh numbers include current Telangana State State/UT Installed capacity Potential Solar in MW Wind in MW Solar Wind As on March 2015 As on 1st March 2016 As on March 2015 As on 1st March 2016 In MW In MW Andhra Pradesh 247.46 475.74 *912.5 *1155 38440 *14497 Goa -- -- -- -- 880 -- Gujarat 1000.05 1024.15 3581.3 3876 35770 35071 Karnataka 78.22 104.22 2548.7 2886 24700 13593 Madhya Pradesh 563.58 678.58 567.3 1200 61660 2931 Maharashtra 363.7 378.7 4369.8 4638 64320 5961 Rajasthan 1047.1 1264.35 3052.7 3877 142310 5050
  • 30. 30 Confederation of Indian Industry Though progressive companies are trying best at all levels, it is very difficult for companies to meet renewable energy 175 MW Goal in absence of clear policies and even different policies in different states. For example in state of Maharashtra and Tamil Nadu there are plenty of different kinds of OA charges that makes the state not very investment friendly. The western states, namely, Maharashtra, Goa, Madhya Pradesh and Gujarat have been considered for the analysing the policy enablers, policy related hurdles and plausible solutions. Enablers, hurdles, and possible solutions for Western Region states States : Maharashtra | Topic : Land Topic : Policy Enablers Hurdles Possible solutions Land acquired will be granted deemed status of Non-agricultural land. Government land, if available, for solar parks and manufacturing of solar modules/panels/etc. shall be given 50 % discount on lease/rental charges. Availability, identification and acquisition of land for implementation. Identification and availability of state’s land bank for the implementation and easy approval of land. Implementation of solar parks by Govt. Incentive, such as reduction on the stamp duty. Enablers Hurdles Possible solutions Inter-state and intra-state open access is allowed. Exemption of electricity duty for solar for 10 years. Re-powering of old WTG. Solar rooftop, with net metering: Energy banking for 1 year. Supervision charges levied by the TRANSCO/ DISCOMS for renewable energy power evacuation lines are exempted. No power banking allowed for solar and wind power plants. Sourcing of power from multiple renewable energy generator through open access is not allowed. No “must run” status for solar. “Merit order dispatch” principle applicable. No exemption in wheeling, CSS, T&D charges and power scheduling. Minimum 1MW capacity for wheeling power. No exemption in registration cost for small scale installation in private space. Allowing power banking for 1 year and removal of power scheduling as per draft Distribution Open Access regulation, 2015. Regulation should allow multiple sourcing of renewable energy (wind, solar) through open access. Exemptionofwheeling,T&D,CSSforrenewable energy energy. Providing “Must run” status for solar plants, thus removing “Merit order dispatch” principle. Reduction in the minimum capacity. Removal of registration cost for small scale rooftop solar or wind (less than 100 kW) installation in private space. Exemption of demand cut for solar rooftop, as provided in Gujarat. State/UT Installed capacity Potential Solar in MW Wind in MW Solar Wind As on March 2015 As on 1st March 2016 As on March 2015 As on 1st March 2016 In MW In MW Tamil Nadu 147.98 635.87 7394.0 7515 17670 14152 Telangana 62.75 392.39 * * 20410 * Table 3 State-wise Current Installed Capacity and Potential for Solar and Wind Energy17
  • 31. 31Insights into Renewable Energy Adoption in India. Topic : Ease of business Solar and wind Installed capacity 18 378.7 MW solar installed capacity. 4638 MW wind installed. 52MW solar rooftop installation.19 States : Goa | Topic : Land Topic : Policy Topic : Ease of business Enablers Hurdles Possible solutions Exempted from NOC/PCB clearance. No single window clearance – there are about 6 numbers of permits/ clearances required for solar and wind project installation. (List of clearance in Appendix 5) No time-line for the approval, thus affecting project implementation time. Ease of availability of information in single source is lacking. Introduction of single window clearance facility. Specifying time-line and turn- around time for the application. Allow start of project implementation immediately upon submission of application and fee. Providing all requisite information regarding policy, regulations, list of permits, clearances and approvals in a single source for ease of use. Enablers Hurdles Possible solutions Identifying large land for solar park development though private- public partnership. Lease rooftop or private land for solar rooftop installation with net metering. No concession in demand cut for wind and solar captive use. No concession in the land acquisition requirements for renewable energy. Land acquired for renewable energy power can be deemed as non- agricultural land. Provide incentive, rebate in govt. land, and concession in stamp duty. Development of state land bank. Enablers Hurdles Possible solutions Solar projects exempted from wheeling, banking, cross subsidy and T&D losses charges. Grid connected solar projects, selling power to grid, considered as “must-run” Solar rooftop, with net metering, allowed power banking for 1 year. Open access – within Goa and other union territories. State renewable energy policy is still in draft stage. Open access is limited to union territories. Power bank- ing is limited to 30% of the annual generation capacity for solar rooftop. No power banking is allowed for ground mounted solar, installed for selling power. No exemption of energy scheduling and demand cut. Implementation of state renewable energy policy. Removing limitation of open access within union territories. Removing ceiling of power banking for rooftop solar. Allow power banking for ground mounted solar plants. Exemption of demand cut and power scheduling shall encourage investment. Enablers Hurdles Possible solutions Payment is made within 30 days from the bill submission by generator. Electricity duty is exempted for power generation from solar projects. Single window clearance in draft stage. No special clearance exemption for solar projects. No timeline on the approval and turn-around time for applications. Lack of ease in finding requisite in- formation. Implementation of single window clearance. Exemption of NOC/PCB clearance. Introduction of specific time-bound turn-around time for approvals and clearances. Provide all requisite information regarding policy, regulations, list of permits, clearances and approvals in a single source for ease of use.
  • 32. 32 Confederation of Indian Industry Solar and wind Installed capacity 18 As of Jan 2016, there was no installed capacity of solar. States : Madhya Pradesh | Topic : Land Topic : Policy Topic : Ease of business Solar and wind Installed capacity 18 678.58 MW solar installed capacity. 1200 MW wind installed capacity. 9MW solar rooftop installed. Enablers Hurdles Possible solutions No land limit for solar projects in private land. Private land purchased has 50% concession in stamp duty. Govt. land allotment to bidder is based on the maximum free energy/MW offered by bidder. Private land purchased for renewable energy projects is not deemed as non-agricultural. No policy on identification and development of state land bank for availability of land. Land acquired for renewable energy power can be deemed as non- agricultural land. Provide incentive, rebate in govt. land. Development of state land bank and implementation of solar park. Enablers Hurdles Possible solutions No registration cost is applicable for installing small scale WTG or Wind Solar hybrid plant (up to 100 kW) at a private rooftop or land. Industry status for solar and wind projects. No licence for solar project, generating and distributing power in rural area. No single window clearance. No special clearance exemption for solar projects. No timeline on the approval and turn-around time for applications. Lack of ease in finding requisite information. Implementation of single window clearance. Exemption of NOC/PCB clearance. Introduction of specific time-bound turn-around time for approvals and clearances. Provide all requisite information regarding policy, regulations, list of permits, clearances and approvals in a single source for ease of use. Enablers Hurdles Possible solutions Intra and inter-state third party power sale is allowed For third party sale of wind power within state, Government of MP provides grant of 4% in terms of energy injected. For solar power, Govt. of MP provides grant of 4% in terms of energy injected. Power banking allowed for 1 year. Electricity duty and cess not applicable for 10 years. Contract demand reduction is allowed for buying wind and solar power. Banking charge of 2% energy banked is charged. No “must run” status for solar. “Merit order dispatch” principle applicable. Solar rooftop policy is in draft stage and yet to be implemented. (Highlights of draft policy in an- nexure). No exemption of demand cut and energy scheduling. Providing “Must run” status for solar plants, thus removing “Merit order dispatch” principle. Removing wheeling, banking and T&D charges for renewable energy power. More than 100 km power evacuation line can be erected by state TRANSCO. Approval and implementation of solar rooftop policy as the soonest. Exemption of demand cut and energy scheduling shall encourage investment.
  • 33. 33Insights into Renewable Energy Adoption in India. States : Gujarat | Topic : Land Topic : Policy Topic : Ease of business Enablers Hurdles Possible solutions Allotment of waste land, based on availability. Availability and identification of land for implementation. Private land purchased for renewable energy projects is not deemed as non- agricultural. Development of state land bank. Implementation of solar parks by Govt. Incentive, such as reduction on the stamp duty. Land acquired for renewable energy powercanbedeemedasnon-agricultural land. Enablers Hurdles Possible solutions Inter-state and intra-state open access is allowed. Beyond 100 km, the evacuation line from wind farm, is implemented by GETCO. No wheeling charge for solar rooftop with net metering. 50% of normal wheeling and T&D charges for captive solar plant under REC. Power banking is allowed for 1 billing cycle for solar rooftop with net metering, non REC solar project – captive and third party sale and captive wind projects. Solar rooftop exempted from 100% demand cut for residential and 50% demand cut exemption for industrial and other consumers. Captive wind and solar are exempted from demand cut up-to 30% and 50% respectively. Electricity duty exempted for all types of solar power projects and for wind projects, except in case of third party sales. CSS exempted for solar rooftop. 50% surcharge for non REC solar project. No complete exemption of wheeling charges for wind and solar power. No power banking facility for wind power for third party sale. No “must run” status for solar. “Merit order dispatch” principle applicable. No concession in wheeling charge for third party wind pow- er and captive consumption at 66kV. Policy does not address any ex- emption on the cost of registra- tion of small solar rooftop. Solar rooftop capacity is limited to 50% of contract demand and load. Unlike wind project, no policy mentioned implementation of power evacuation line by GET- CO from solar plants, beyond 100 km. No exemption of energy sched- uling. Removing wheeling, banking and T&D charges for renewable energy power. Allow power banking for wind project – third party sale. Providing “Must run” status for solar plants, thus removing “Merit order dispatch” principle. Re-powering of old WTG can allowed. Removal of registration cost for small scale rooftop solar or wind (less than 100 kW) installation in private space. Solar rooftop capacity limit is suggested to be increased. Policy to specify and implement that the power evacuation line, beyond 100 km from solar farm to be erected by GETCO. 100% demand cut exemption for industrial consumers can encourage solar rooftop installation. Exemption of power scheduling for renewable energy Enablers Hurdles Possible solutions Solar power and wind are exempted from NOC/PCB clearance. No single window clearance facility No specific time line of the approval or erection of the power evacuation facility, beyond 100 km from wind farm. No timeline on the approval and turn-around time for applications. Lack of ease in finding requisite information Implementation of single window clearance. Specify timeline for erection of power evacuation facility, beyond 100 km from wind farm. Introduction of specific time-bound turn- around time for approvals and clearances. Provide all requisite information regarding policy, regulations, list of permits, clearances and approvals in a single source for ease of use.
  • 34. 34 Confederation of Indian Industry Solar and wind Installed capacity 18 1024.15 MW solar installed capacity. 3876 MW wind installed. 44MW solar rooftop installed capacity. ___________________________________________________________________________________________________________ It is observed that issue and its possible solutions, as mentioned below, will build a conducive renewable energy environment: • Development of land bank by states, streamlined and quick procedure of land acquisition and providing deemed status of non-agricultural land upon acquisition of private land for RE. • Provide single window clearance, time-bound turn-around time for approvals and clearances and specific timeline for facilities that are to be provided by state utility like TRANSCO/ DISCOMs. • Allow open access, with multiple power sourcing, and power banking facility • Providing “must-run” status for renewable energy projects. • Demand cut exemption for residential as well as industrial and commercial consumers. In addition, allowing re-power of old WTGs, availability of information is systemic manner, better incentive structure will increase ease of doing business and encourage investments. The details on issues and possible solutions of each state are provided in the above table. Although the availability of potential is the key criteria for the magnitude of renewable energy development, it is understood that the relevant state policies around renewable energy plays a significant role in the development of renewable energy in the state. Below are the policy analysis and ease of business in Telangana, Andhra Pradesh, Tamil Nadu, Rajasthan and Karnataka.
  • 35. 35Insights into Renewable Energy Adoption in India. Enablers, hurdles, and potential solutions for other select states States : Telangana Land: Solar parks implementation is done by the state. Deemed conversion to Non-agricultural land status. Exemption of land ceiling act. Solar & wind installation , as on 1 March 2016 Solar rooftop, as of Oct 2015 392.39MW installed capacity of solar power (Appendix 6). 28MW solar rooftop installation. States : Andhra Pradesh Land Allotment of revenue land as per availability. Private land to be procured by developer. Solar & wind installation , as on 1 March 2016 Solar rooftop, as of Oct 2015 Installed capacity as of 1 March 2016 - 475.74 MW. 1155MW wind, which includes data of Enablers Hurdles Possible solutions Exemption of supervision charge by TRANSCO/DISCOM. Power banking for 1 financial year. Exemption of T&D and wheeling charge- captive or third party sale on 33kV line. Exemption of T&D charges within state. Exemption of Electricity Duty in case of sale of power to AP Discom by wind projects. Exemption of electricity duty Solar Power Projects setup within the State. Exemption of CSS third party sale for solar power projects setup within the State for 5 years from the date of commissioning. Intra-state and inter-state open access for third party sale.Intra-state open access for captive generation. No deem non-agricultural land status. No “must-run” status for solar power, as given in Telangana. No exemption of banking charges. No inter-state open access for captive generation. No exemption of demand cut. No exemption in energy scheduling. Wind energy projects: All approvals and clearances within 30 days from the date of registration. Solar Rooftop projects: All approvals and clearances within 14 days from the date of application. Technical feasibility for evacuation within 14 days from the date of receipt of application. All wind and solar power projects are exempted from obtaining PCB clearance. Open access turn around within 21 days, else deemed permitted. Enablers Hurdles related to policy Possible solutions Solar parks implementation is done by the state. Deemed conversion to Non- agricultural land status. Exemption of land ceiling act. Energy banking for 100% of energy during all 12 months of the year. “Must-run” status. 100% refund of VAT/SGST and 100% refund of Stamp Duty for land purchase. Exemption of CSS for 5 years, wheeling for captive use, electric- ity duty. Single window clearance PCB clearance within 7 days and NOC from Grampanchayat with 14 days. Grid connection approval within 21 days. Closure of technical feasibility with 30 days.
  • 36. 36 Confederation of Indian Industry 32MW solar rooftop installation. States : Karnataka Land: Deemed status of non-agriculture land. Land bank for respective renewable energy technology shall be generated by the concern government department. The government lands, such as barren land and forest land will be developed by Karnataka renewable energy Development Limited. Change or shifting of location is not permitted under the policy. Solar & wind installation , as on 1 March 2016 Solar rooftop, as of Oct 2015 104.22 MW –solar power of installed capacity. Wind installed capacity of 2886 MW. 34 MW solar rooftop installation. States : Rajasthan Enablers Hurdles Ease of business Exemption of solar power banking charge for 10 years Exemption of wheeling and CSS for 10 years for solar projects commissioned between 1st April 2013 and 31st March 2018. Captive solar project can opt for REC, paying normal charges as per KERC. Re-powering old wind generator is allowed. Urban buildings are likely to be exempted from floor-area-ratio with respect to the floor area created for solar rooftop. Solar rooftop tariff of 9.56 INR/ kWh for unsubsidised systems and 7.20 INR/kWh for systems availing a 30% central subsidy. “Surya Raitha System” to encourage farm land owner to install 1MW to 3MW solar PV system. Power can be sold to grid. No timeline on processing of appli- cation for evacuation line. No exemption in open access and wheeling charges for wind proj- ects. No “must run” status for solar pow- er, as given in Telangana and union territories. No exemption of demand cut No exemption in energy schedul- ing. The wind energy project installation can start immediately upon submission of application and requisite fee. Single window clearance - Karnataka Renewable Energy Development Ltd acts. Departmentalclearancewithin90days. Forest clearance within 120 days. Enablers Hurdles Possible solutions Inter-stateandintra-stateopenaccess allowed. Power banking allowed for captive generation for billing cycle. Exemption of banking and wheeling charges and cross subsidy surcharge for solar rooftop. Solar rooftop energy banking allowed for a month and credit will be carried forward to next period to the extent of 50 units. No exemption in transmission and wheeling charges for captive and third party sale. Exemption from State Pollution Board clearance. Exemption from grampanchayat NOC for wind farms in govt. land.
  • 37. 37Insights into Renewable Energy Adoption in India. Land Procure of private land for renewable energy projects allowed. The conversion of private land to industrial land done at the charge of 10% of the charge levied for industrial purpose. Govt. land for wind farm at 10% of District Level Committee (DLC) rates on first cum first served basis, with a maximum land allotment of 5 hectare/MW. The sub-lease of land for wind farm development is allowed.Govt.landallotmentsolarparksandsolarPowerProjectsaspertheprovisionsofRajasthan Land Revenue, Rules 2007. (details in appendix 4) No land conversion is required for setting up solar projects. Farmers are allowed to install or sub-let solar projects in their land without land conversion. Land allotment for solar power projects done on the refundable payment of 5lac INR/ MW to RREC. Solar & wind installation , as on 1 March 2016 Solar rooftop, as of Oct 2015 1264.35MWsolarinstallation. 3877MWwindprojectinstallation.32MWsolarrooftopinstallation. States : Tamil Nadu Land: Land acquisition is the responsibility of the investor. Subjected to availability, industrial estates shall be allocated for erection of solar power plants. Solar & wind installation , as on 1 March 2016 Solar rooftop, as of Oct 2015 635.87 MW capacity solar and 7515 MW wind. Enablers Hurdles Possible solutions Solar rooftop power plant can be used by DISCOM for meeting its solar RPO. Captive consumption exempted from electricity duty. No energy scheduling for solar power generator for intra-state ABT. 50% rebate in transmission charges for solar projects commissioned between April 2015 to March 2018. Net metering energy accounting in 12 months – August to July. No power banking for third party. No exemption of banking charge. No exemption of demand cut and power scheduling for re- newable energy. Solar power projects’ comprehensive consent to establishandconsenttooperate within 15 days from the date of application submission. Enablers Hurdles Possible solutions Intra-state and inter-state open access and wheeling of power is allowed. Wind-wheeling,transmissionandschedulingandsystem operation charges to be 40% of conventional power. Solar - wheeling, transmission and scheduling and system operation charges to be 30% of conventional power. Wind power banking is allowed for one financial year. Solar power banking for 1 billing cycle. 100% exemption from demand cut for the solar power plants. CSS 50% for wind and solar for third party open access consumers. No specific time line is given for the clearance with respect to wind power projects. No separate policy for wind. No removal of power scheduling. No deemed status of non-agricultural land. Single window clearance for solar. Clearances within 30 days.
  • 38. 38 Confederation of Indian Industry Key Takeaways for Western Region Maharashtra and Gujarat has the highest concentration of business houses, textiles, pharma, petroleum, IT, chemicals, electronics, heavy chemicals, automobiles, food processing, and plastics. Gujrat and Madhya Pradesh have adopted single window clearance, progressive policies for adoption of RE in comparison to Maharashtra. Goa is clearly lagging in RE adoption. In view of the fact that most of the corporates are concentrated in Maharashtra, it has high potential of investment in renewable energy. Maharashtra needs a favourable renewable energy policy and vibrant eco-system for the development of renewable energy in the state. Based on the study of other states policies on renewable energy- wind and solar, following can be considered as key takeaway especially for the state of Maharashtra are: • Land: Land acquisition has been perceived as one of major hurdles in the renewable energy implementation. Identification of sites, availability of state’s land bank for the implementation and easy approval of land for projects can act as major boost for renewable energy in Maharashtra. In Telangana, the Government of Telangana shall be developing land for solar parks. In Karnataka, installation of wind project can be started immediately upon submission of application and fee, thereby, removing the time required for application processing from the project implementation phase. • Status of renewable energy power: Telangana and union territories has given the status of “Must –run” for solar power plants, thus removing the principle of “merit order dispatch” for the power from solar projects. Declaration of solar power under “must-run” can encourage investors as it will remove the ambiguity, if any, in the selling power price. • Clearance and approvals: Unlike states like Rajasthan, Karnataka, Telangana and Tamil Nadu where the timeline for the approval and clearance has been specified, the renewable energy policy of Maharashtra does not specify any time line or turn-around period for the application, approval and clearance. Furthermore, there is no single window clearance system in Maharashtra. Providing single window clearance system and specifying turn-around time for the applications shall improve the interaction between government and project developer and thereby,increasingtheinvestmentandimplementationofsolarandwindenergyinMaharashtra. Currently, there are approximately 6 different permits and clearances are required for solar and wind project installation. List of clearances are provided in appendix 5. • Open access: Though open access has been allowed in Maharashtra, sourcing of power from multiple renewable energy generator through open access is not allowed. No exemption is provided in wheeling and transmission charges of renewable energy power. Furthermore, in the current open access policy 2014, energy accounting is done in 15 minutes time-slot, thus no power banking facility is available for the renewable energy generation for captive consumptionfacilities.Thishasactedashurdleinimplementationofwindandsolarpowerplants in Maharashtra. All other aforementioned states, apart from Gujarat, allow power banking for billing cycle or yearly basis.
  • 39. 39Insights into Renewable Energy Adoption in India. The Draft Open Access policy, 201520 , can bring in following favourable changes, which shall boost the renewable energy in Maharashtra, provided the policies are implemented: 1.Theminimumeligibilityhasbeenreducedto500kW,i.e.,aconsumerhavingcontractdemand of 500kW can be sourced power from a single source or multiple sources. The power can also be evacuated from multiple sources and power exchange. 2. The draft Distribution Open Access regulation, 2015, allows power banking for 1 year for renewable energy. 3. CSS for renewable energy is 25% of the charges stipulated by commission for open access, as per draft open access regulation 2015 4. No power scheduling is required, as per draft open access regulation 2015. It is important that implementation of the draft open access policy is expedite for boosting renewable energy in Maharashtra. • Net metering: Government of Maharashtra has approved the net-metering policy in 2015, whereas, state like Tamil Nadu has approved and started promoting its net-metering policy from 2012. Due to late initiation of the net-metering in Maharashtra, Solar rooftop PV system in Maharashtra has encountered set-back. • Incentives: For states like Gujarat, Rajasthan, Telangana, cross-subsidy surcharges exemption, exemption from demand cut and energy scheduling and exemption from electricity duty are provided for solar power projects, whereas, Maharashtra renewable energy policy does not indicate such incentive for the project developers. Attractive tariff structure has also been adopted by state like Karnataka for solar-rooftop PV system to encourage investment in the respectivearea.Inviewofthefactwherefinancialcostandinitialinvestmentaswellasvariability of wind or solar availability, right kind of incentive structure which supports variable renewable energy generation and financial feasibility shall play a crucial role in boosting renewable energy in Maharashtra. Comment by Tata Motors Limited on current open access hurdle: “One challenge which we will be facing is regarding the Open Access Regulation of 2014. Due to this regulation, Maharashtra State Electricity Distribution Company Limited did not permit purchase of wind energy through Open Access and hence captive wind energy was the only source of renewable power in FY 2014-15. We hope to secure renewable energy through Open Access on the grid in future.” –Tata Motors Limited. Re Adoption by Corporations In India Climate leadership and adoption of clean energy go hand-in-hand. The CDP India report 2015 shows interesting trends in terms of the following key points. 1. Companies are moving to a more long-term approach, as opposed to tactical and short-term measures.
  • 40. 40 Confederation of Indian Industry 2. Companies are showing increasing interest and action in deploying renewable energy. Despite the fact that not even a single Indian company features in the Climate A List 2015 published by CDP in the CDP India Report 201522 , several Indian companies are reporting to CDP and making progress in renewable energy adoption. Four Indian companies got a full 100 Disclosure score for the Climate Change Report 2015, and nearly 30 companies have a score of 90 or more. The Top 15 companies from India in the CDP India Report 2015,18 their Disclosure Scores and information on their renewable energy adoption are given in the Table 6 below. Figure 28 Investment in Low Carbon Energy Initiatives (USD million) during 201521 Company Disclosure Score RE % in Energy Mix Possible solutions ITCLimited 100 43 % ITC has been constantly working at increasing its share of renewable energy, and set a goal to achieve 50% of its total energy consumption through renewable energy sources by 2020. Tata Steel 100 As per RPO, 1% solar and 3% non- solar. At present TSI purchases solar REC to meet mandate additionally it is pursuing strategies to reduce power consumption. Tech Mahindra 100 2.8% as per Sustainability Report Increasing renewable energy mix in our operations through installation of solar plants & windmill at our facilities. There has also been an increase in renewable energy shares to the company operations with additions of solar plants at Chennai & Pune Locations. Strong pipeline for renewable energy projects implementation at Hyderabad with total capacity of 1200 KWh. Wipro 100 20% Entered a Tripartite Power Purchase agreement signed between Wipro (Purchaser), Renewable energy (mainly Solar and Wind) generator and distribution company. They were able to meet only half of their renewable procurement target (65 Million units Vs a target of 130 Million units) largely due to regulatory constraints and economics, which were not anticipated when the goals were set in 2010. Notes: Renewable Installation includes Wind power, Solar plant, Biomass based CPP plant, Distributed small captive systems like solar panels,solar heating systems, captive biomass CHP, Solar PV Pump, etc. Renewable Purchase includes buying renewable energy by getting into tripartite agreement with Distribution companies and RE supplier, buying RECs Green Building Infrastructure includes addition of LEED guidelines based green building space to existing infrastructure Others include low carbon LED and efficient lighting arrangements, setup to switch to cleaner fuel and Energy Recovery.
  • 41. 41Insights into Renewable Energy Adoption in India. Company Disclosure Score RE % in Energy Mix Possible solutions IndusInd Bank 99 Not mentioned in CDP report or sus- tainability report 2014-15 IndusInd Bank has invested in Renewable Energy solutions through our investment in on-site solar energy at our ATMs and offices. This has also led to an increase in the number of transactions at our solar-powered ATMs. The energy generated from the fleet of solar ATMs in FY 2014-15 is approximately 1,20,000 kWh and the cost saved by the Bank is approximately INR 1 million. Infosys 99 30% Infosys is the first Indian company to join RE100 in order to move towards meeting 100% of electricity requirements from renewable sources. In 2015-16, Infosys planned to install 15 MW of solar plants to meet 40% of its electricity requirements from renewable sources. Installed capacity is 12.4 MW solar. Poised to invest in 170 MW solar energy (nearly 145 million USD) by 2018. Tata Chemicals 99 Not explicitly mentioned in sustainability report or CDP report. At present, Tata Power Renewable Energy Limited has commissioned a 25 MW solar power plant at Mithapur as mentioned in their sustainability report 2014-15 Tata Consultancy Services 99 2.5% In FY 2014-15, approximately 2.5% of the total power consumption was from renewable sources. 132 MWh of electricity were generated from installed solar capacity. Tata Global Beverages 99 Not explicitly mentioned in sustainability report or CDP report. TGB targets to source 5% of its energy needs through renewable sources by 2016. Associated Cement Companies 98 Not explicitly mentioned in CDP report or Sustainability report. Purchased RECs equivalent to 97.51 Million INR in 2014 (RPO); Investing in wind (19 MW installed) and solar energy projects towards CDM Gas Authority of India Limited 98 Not explicitly men- tioned in CDP report or sustainability report. On renewable energy front, they plan to set up 500 MW wind power capacity in the next 3-4 years and over 300 MW solar based power generation capacity in a phased manner. GAIL engaged in trading renewable energy certificates (RECs) for Tamil Nadu WEG projects where they successfully sold 10646 RECs with net revenue generation of INR 1.57 crores. These certificates have been utilised to purchase renewable power obligations (RPO) for 5 of its locations Larsen & Toubro 98 8% Entered in to tripartite agreements with the electricity board and the operator of wind farms for consumption of green energy (wind) within their Powai, Hazira and Chennai Campuses. In 2013-14, renewable power contributed to 8 % of the indirect energy mix, thereby avoiding Scope 2 emissions. Mahindra & Mahindra 98 5.6% Implementation of Renewable energy projects (Solar/ Solar Thermal/Solar PV) at all manufacturing sites. Procurement of RECs from power exchange thus promoting renewable energy deployment. They have installed solar PV panels to harness solar energy. M&M is the first Indian company to sign up for the EP 100 program. By signing up for EP100 , M&M is making a significant commitment to doubling its energy productivity by 2030 on a baseline of 2005, and hope to make a strong contribution towards achieving the climate goals agreed upon at COP21.
  • 42. 42 Confederation of Indian Industry The leaders in CDP disclosure have a wide variety of active initiatives and goals for moving towards renewable energy. Some of the companies have set specific and time-bound goals for increasing renewableenergyintheirtotalenergymix,andsomeothershavestatedintentionofmovingtowards renewable energy adoption, as described in Table 6. Overall, several companies are achieving substantial progress and demonstrating intention and ability to move towards a fully renewable energy scenario. In particular, ITC Limited, with 43% and Infosys, with 30% of their energy being sourced from renewables currently, are raising the bar for all corporations. Infosys has joined the RE100 of The Climate Group, with the intention of using 100% renewable energy. In addition to the leaders, several other companies are also investing in renewable energy and have disclosed some of this information in their CDP Report. Table 16: CDP Scores and renewable energy initiatives listed for a select cohort of companies in the Appendices lists out the renewable energy initiatives undertaken by companies who we have reached out to in context of this paper. Out of the 53 companies, 47% of companies achieved a CDP disclosure score above 90, and 49% have been not listed, not scored, or not responded. Few companies are planning to respond next year. However, it is heartening to see that almost all companies are working towards initiatives to increase renewable energy in energy mix. Since the CDP data base was referred to for this information, we did not pull out renewable energy initiatives companies with “no response”. Real- time interactions across various industry sectors revealed that almost all companies are exploring renewable energy options. “YES BANK believes that the 175 GW target is achievable and is committed to provide funding through innovating financing models. The Bank has one of the largest portfolios in renewable energy in the private banking space. During the year, the Bank made commitments to further enhance its lending in this space at key global platforms, such as the UN Climate Summit. YES BANK was the knowledge partner for the first ever Renewable Energy Investors Summit organized by the Ministry of New and Renewable Energy, GOI. At the COP 21 the Bank committed to mobilize USD 5 billion towards climate finance in India by 2020.” – Yes Bank Company Disclosure Score RE % in Energy Mix Possible solutions Tata Communications 98 For Bangalore operations, the contribution of wind power as the energy source is about 80% and 62% for Chennai operations. Investment in 16 MW wind turbines in Karnataka for wind power for Data Centres in Bangalore. This shall provide a minimum of 27 MW units every year, which constitute 80% of their power requirement at Bangalore. TCL has also invested as a group captive user in Tamil Nadu, India to harness and use 20 MW units of power at their Chennai data centre. TCL is part of captive users in Delhi to promote solar farm to harness day time power to run their data centres. 5 MW of solar power plants is deployed across India operations till date. Tata Motors Limited 98 8.3%, calculated from Renewable and Total energy consumption given in CDP report 2015 21.95MW Wind Power Project has been registered with NLDC under REC scheme until 2017. TML has set the target to achieve 50% of the total electricity demand from renewable energy sources by 2020. Table 6 Renewable Energy Initiatives listed for companies with very high CDP Disclosure Score
  • 43. 43Insights into Renewable Energy Adoption in India. Cop 21 And Implications On Renewable Energy Adoption The COP21 has set aside certain targets for each country which includes India. As a nation, India consists of the government, the citizens, and the corporates. So, each target will ultimately trickle downtothesethreeverticals,andcorporateswillbebearingabigshareofit.Theyhavetheresources and internally face lesser hurdles to get things done. The government can accelerate this by doing changes at policy level as well. A mandatory share of CSR spending can be reserved for climate change initiatives. Tax exemption schemes for these activities will also go a long way in encouraging the corporatesto actively support these initiatives. “COP 21 and subsequent conversations enable governments of countries to accelerate actions required to adapt to and mitigate climate change. This in turn has a positive effect on corporations who are alive to risks of climate change. However, today the biggest reason for adoption of renewable energy and green tech rise squarely in space of economic wisdom.” – Mr.Anirban Ghosh, Chief Sustainability Officer, Mahindra & Mahindra Group “COP21 is a crucial outcome for renewable energy proliferation. Context has been set for RE, linking with global context, environmental challenges. Certain challenges are still there; to realize 100%RE, emphasis is on technology such as grid stability, appropriate technology options are required. For developing countries, renewable energy must be competitive and affordable for deeper penetration. India is now part of international consortium for renewable energy tech development. Awareness should be developed about OVERALL COST per unit of electricity, for example, fossil fuel electricity has human health impacts, pollution impacts etc. which are not currently accounted in market price.” – Mr. Basant Jain, CEO, Mahindra Susten Throughout the paper we have maintained that the private sector plays a critical role in the renewable energy revolution. The RE100 India briefing report24 has indicated an upward trend in renewables in India, highlights the business case for investing in Renewables. Two case studies of RE100 member companies in India: Tata Motors Limited has recently become the 1st manufacturing company in India and first company to join RE100 after COP21 in Paris. Tata Motors is the 54th company and the second Indian company - to join RE100. “Unless policies, rules and regulations are aligned to the international and national goal of scaled up use of renewable energy, a company cannot go forward with the aspiration of using 100% renewable energy in its manufacturing operations.” Chief Sustainability Officer, Tata Motors Infosys, the first Indian company to join the RE100, has demonstrated clear leadership and commitment ever since it first stated its carbon neutrality goal early in this decade. Infosys is pioneering investment in renewables in India, and has significantly reduced energy use over the last six years. By doing so, they reduced their operational costs and attained the lowest per capita electricity consumption in the IT industry. The company strongly believes that responsible energy
  • 44. 44 Confederation of Indian Industry management is one of the factors that helps attract and retain clients – especially those with strong sustainability goals. As part of their strong commitment to improve energy use and reduce costs, Infosys has committed to sourcing 100% of their energy from renewable sources by 201825 . Intheabsenceofclearguidelines,Infosyshasdevelopeditsownduediligencestrategiesandpolicies to ensure best technologies to invest. EP 100 is another program which is an Initiative of The Climate Group. It will work with the world’s most influential businesses in setting commitments to double their energy productivity and maximize the economic output from each unit of energy used. In light of achieving low carbon growth along with renewable energy adoption, energy productivity is critical. Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra Ltd., said, “Sustainability is an integral part of Mahindra’s approach to business. At Mahindra, it has always been our endeavour to drive positive change by making every aspect of our business sustainable. This is our philosophy behind “Rise for Good”. “By signing up for EP100, we are making a significant commitment to doubling our energy productivity by 2030 on a baseline of 2005, and hope to make a strong contribution towards achieving the climate goals agreed upon at COP21. We hope many other corporations will become a part of this campaign.” CDP’s concern with Corporate Climate Action has been around how corporate goals aren’t serving the purpose. “Though companies are setting targets they are neither enough nor sufficiently long term”, CDP India report, 2015 Many companies in India were waiting for the outcome of the Paris agreement. Now it’s time to commit to long term targets. The best way to set targets is to embrace the “The Science Based Targets initiative which uses the 2°C scenario developed by the International Energy Agency”. The two Indian companies which have committed to science based targets are Aditya Birla Chemicals and Tech Mahindra. The Climate Group, under RE100 has estimated that an entire private sector switch to renewables would cut CO2 emissions by nearly 15%. Globally, the world’s leading companies are re-creating a thriving renewable energy market that will aim at keeping the global temperature rise below two degrees. India’s private sector, which accounts for more than half of national energy consumption, stands to gain from this experience. This is not just the government’s responsibility, but ultimately thecorporates’aswell;therefore,itisnotaboutmeretop-downenforcementbutaboutenthusiastic adherence from the corporates. “India has to be clear of the role of renewable energy in the energy scenario following the COP21 INDC statements. We are primarily speaking of renewable energy as replacement energy, i.e., additional energy requirement. Our primary energy source remains coal. India’s per capita energy consumption is still low (~900 units per capita) Vis – a –Vis countries like China (~2500 units). In India 33% of people still do not have access to reliable electricity. India’s imports of coal and fossil fuels comprises of 80 to 85 % of our
  • 45. 45Insights into Renewable Energy Adoption in India. This is not good from point of view of economy and energy security... The goal of 175 MW from renewable energy by 2022, out of which 100 GW is from Solar, 60 W, remaining from biomass – the governance of this policy and clearly chalked out roles and responsibilities of the state government, utilities, vendors, enterprises, and the central government will help in creating clarity and clear path for goal realization.” –Wind Power Generator company. Intriguing Insights Future Thoughts in Renewable Energy – Climate Parliamentarian The Climate Parliamentarian is an international cross-party network of legislators, dedicated to preventing climate change and promoting renewable energy. This group of forward-thinking legislators have begun to brainstorm a unique possibility for sustaining the entire worlds’ energy needs using solar installations located in deserts such as Sahara, Thar, Gobi and Atacama. Desert areas have a very high insolation, and very low population of species as well as human inhabitants. “A total area of solar panels and power stations 600 km x 600 km would provide enough power to give 500 million people the average American’s total energy consumption, which is the equivalent of 250 kWh per day,” reads a section of the Climate Parliament Strategy to go 100% Renewables26 . This intriguing possibility, without going deep in the technical feasibility, is one that pushes the envelope on renewable energy installations across the globe and would call for inter-governmental cooperation and resource sharing, since long-distance infrastructure would be required to move power from desert-based installations to human habitats, where power is consumed. Re Ecosystem in India During our conversations with renewable energy industry professionals, and through research, we have understood that a majority of the renewable energy technology and products manufactured in India are considered to be of lower quality than those made elsewhere. Consequently, renewable energy installations in India contain only a small fraction of indian-made solar panels and other components. To enhance the quality of indian-made components and technology solutions, we need to improve the two following aspects: 1. Renewable energy manufacturing ecosystem in India: Organizing and enhancing the ability of Indian manufacturers to deliver high quality products at affordable prices is vital to encourage this. This could translate to ease of doing business, more comfortable taxation as well as bridging the gap between markets to make sure products are economically viable for the manufacturers while delivering excellent power output and durability. The Government of India, as of now, allows up to 100% Foreign Direct Investment (FDI) under the automatic route for renewable energy generation and distribution projects subject to provisions of The Electricity Act, 2003. To enhance the renewable energy ecosystem, the government is playing an active role in promoting the adoption of renewable energy resources by offering various incentives, such as generation- based incentives (GBIs), capital and interest subsidies, viability gap funding, concessional finance,
  • 46. 46 Confederation of Indian Industry fiscal incentives etc. The Make In India program of the Government of India has a focus on the renewable energy sector. Moreover, the mandate of the Solar Energy Corporation of India (SECI) allowswide-rangingactivitiestobeundertakenwithanoverallviewtofacilitatetheimplementation of the National Solar Mission and the achievement of set targets. 2. RE Technology Research & Development in India: Vital breakthroughs in renewable energy technology can enhance power output per unit installed capacity. There is also possibility for varied and innovative solutions arising from research and development of renewable energy technologies in India. Coalitions, such as SERIIUS (Solar Energy Research Institute for India and the United States) between Indian Institute of Sciences, Bangalore and the NREL (National Renewable Energy Laboratory), Golden, Colorado (USA) have to be facilitated further. Comments relevant to this aspect from Director Business Excellence, Quality & Sustainability, SKF India Ltd. are quoted below: “Improvements in the power output per unit installed capacity can largely influence organizations’ decision to invest in renewable energy , and so also this will help in making Solar a business case in a very prominent way . In some states, the gap between Grid power rate and solar power tariff in a PPA model is already thin and hence it is difficult to create a sizeable margin; nevertheless, the green aspects clearly support use of solar energy. However, solar energy technology is constantly upgrading and is in the path to be a business case for profitable investment. Added to this, if we use other technological innovations such as solar tracking and solar hub developed by SKF, will add to the efficiency of generation and will help to make the systems more profitable. As regards implementation, Opex based PPE model is best suited for SME’s as well companies which do not want to invest big capital and there are a lot of players now available in this area.” Learning from The World – Good and Bad Here we have identified countries across the world where renewable energy contributes to 100% of the energy demand. This list helps us understand how small countries with abundant natural resources have switched to renewable energy sources. In order to understand the learnings from outside of India we have looked at the following: 1. Countries across the world where renewable energy contributes to 100% of the energy demand (Refer Appendix 7, table a) 2. Countries that are amongst the top in Renewable Energy Consumption. (Refer Appendix 7, table b) Noteworthy amongst countries leading in renewable energy use is Iceland which switched to geothermal in a big way from fossil fuel in the 1990s. It has shown the world that given resources “what a nation can achieve when it sets it mind to it!”. Norway generates 98% of power from
  • 47. 47Insights into Renewable Energy Adoption in India. renewable energy. Norway sells its renewable energy to neighbouring countries in form of clean energy guarantees of origin. In spite of its oil reserves, the country has opted to use oil money to sustain its traditional business. Key learnings are from Uruguay where clear government decision- making and supportive regulatory environment and strong public /private partnership have paved a path for 100% renewable energy. India is a large country, and one can argue that the countries listed here are small and are not as complex as India. The second list comprises of countries that are amongst the top in Renewable Energy Consumption are shown in the figure below 27 The above figure shows the top countries in renewable energy consumption. India is 7th in this list. This list comprises of big countries. What India has achieved in wind energy sector can be achieved in solar and waste to energy areas as well. The government of India is running several collaborative research projects in indigenous technologies in Renewable28 . Key learnings from USA, it is looking at renewable energy as a means to revive its economy though American Recovery and Reinvestment Act 2009. India must look at the energy policy as a means to revive green jobs in this sector. China is an innovator in solar and wind, leading to reduction in cost of installations. India must learn from China and establish a way to encourage innovation and R&D in renewable energy technology. Germanyisacuriouscaseofpoliticalwillcombinedwithaggressivetargetsallowingrapidtransition to renewable energy helping Germany to move away from fossil fuel and nuclear at the same time. It is a combination of political will and public support to pass the right regulations that lead to the path of dominance. It is facing challenges from China and cheaper costs, but the Germans are not the ones to throw in the towel. The growth rate in Germany has nearly tripled in the last 10 years. In Spain, the government dishonouring of solar tariffs ruined lives of several individual citizen Figure 29 Global renewable energy usage by portion of total demand supplied by renewable energy sources.
  • 48. 48 Confederation of Indian Industry investors.Spainwasleadinginrenewableenergyin2008tillachangedgovernmentledtoabandoning of its solar growth. India needs to be wary of making similar mistakes. Still some companies survived the economic downturn by selling power outside Spain. It is very interesting to see Brazil’s rise in renewable energy consumption. What India needs to learn from Brazil is how clearly researched well-articulated policy and clarity in thought lead to growth in renewable energy. Focus on biodiesel and a clearly working mechanism on the ground for reduction of transportation emissions. FromItalywelearnthatgridoperatorsareobligedtogivepriorityaccesstorenewableenergyplants in the operation of their grids. In Italy, training programmes on renewable energy are developed at regional level. Certification of installed plants is obligatory. All new or refurbished buildings must integrate RES, with an additional 10 % to the obligation level for public buildings. From all the above examples cited here there are great learnings and lessons. By integrating these in our policy and actions, India will be able to surpass all the above examples within a short time span. Conclusion The objective of this paper is to identify the major hurdles in the process of development of renewable energy in India. India has set the target of 175 GW of renewable energy by 2022, with 100 GW from solar and 60GW from wind energy. With the current CAGR, as assessed for the year 2010-11 to 2014-15, of 6.58%, the renewable energy target of 175 GW is projected be achieved in 2033 as opposed to 2022 as targeted. It has been assessed that India needs to increase the renewable energy growth CAGR by 31% to achieve the set target by 2022. Although Rajasthan has the highest total potential for renewable energy, Maharashtra is potentially more viable for renewable energy projects, owing to the presence of a large number of corporates that can invest and propagate renewable energy projects in Maharashtra. A survey has been conducted for 32 corporates in India and the major perceived hurdles identified are: a) Anticipation for new technology; b) Technical evaluation and feasibility of RE c) Policy implementation at ground level d) Initial cost and financing e) Project implementation. The renewable energy policies, for wind and solar, of 8 states of India have been analysed. Though all the states have their individual renewable energy policy, following are observed: It has been observed that uniformity of the renewable energy policy for solar rooftop, solar power plant and wind power plant across all states is lacking. The uniformity of the taxation policy is also lacking. It is required to have uniform renewable energy friendly policy for overall growth of renewable energy in India. For state like Tamil Nadu, there is no existing formal wind energy policy. A clearly researched and well-articulated policy shall bring in more confidence in the investors and project developers. More pro-active involvement by State Government in site identification, land allotment, turn- around time for approval and single window clearance are required by all states for ensuring ease of doing business. Implementation of policy at ground level is one of major setback in India. For
  • 49. 49Insights into Renewable Energy Adoption in India. example, lack of implementation on the penalty structure of RPO has been the main hurdle in the development of REC market. (Refer Appendix 7, table b) Noteworthy amongst countries leading in renewable energy use is Iceland which switched to geothermal in a big way from fossil fuel in the 1990s. It has shown the world that given resources “what a nation can achieve when it sets it mind to it!”. Norway generates 98% of power which is Some additional aspects are highlighted below: • The existing built structures are not constructed considering the possibility for installation of rooftop solar panel systems. Due to this, some solar rooftop projects encounter hurdle in implementation. Therefore, to facilitate the expansion of rooftop solar systems, it is necessary to enable building codes to incorporate the possibility for rooftop installations. • It has been observed that some projects are noted to be stalled due to inefficiency and delay on thepartofstateboardsresponsibleforprocessingapplicationsorprovidingrequiredclearances and permits. Due to lack of clarity of the turn-around time for these processes, projects face delays and inefficiency. • Another intriguing obstacle that we discovered in the course of developing this whitepaper is that all the information about relevant renewable energy regulation and policies are not in one place, most of the time. This is a hassle for the corporates and other personnel who have to obtain and use such information. To facilitate the proper progress of renewable energy projects, it is suggested to have a systematic repository where all the relevant policy and methodology information can be placed. In addition, the simplified and direct structure of policy can ease the application and project implementation. As an illustration of a good example of such policy, we have included the Renewable Energy Policy Brief of Brazil, June 2015, in Appendix 6. • AsperMNREcirculardated,19November2015,centralfinancialassistanceof30%ofbenchmark cost for general category States/UT and 70% of benchmark cost for special category states is provided, which is currently released through different state nodal agencies. The change of this to online approval and disbursement of CFA can reduce the time consumed in the application process and encourage investment in renewable energy sector. • India needs improvement in technology innovation and facilitates R&D to reduce the cost of renewable energy installation, especially solar power sector. The solar sector, as a result of budget 2016-17, shall have boost due to implementation of double cess levied on coal production thereby increasing the cost of thermal power generation. This can have a positive impact in development of renewable energy sector by making the renewable power price competitive with coal-fired power plant. Furthermore, solar rooftop sector may have boost in 2016-17 before the accelerated depreciation is reduced from 80% to 40%. To move towards a 100% renewable energy scenario, it is also necessary that corporations utilize a sustainability lens to assess all their undertakings. Without a holistic understanding on how renewable energy helps companies reach sustainability goals, one-off attempts remain inadequate toaddressthecoreproblemsofenergysecurity,environmentalpollution,andglobalclimatechange. Companies who intend to lead the transition to a clean energy world must make renewable energy
  • 50. 50 Confederation of Indian Industry inseparable from their modus operandi. Companies must evaluate and identify opportunities for pushing the envelope on RE, whether through purchase, or through installation, in all facets of the company where renewable energy has a role everywhere, including hiring, materials procurement, supply-economics, transportation, and logistics. “All projects are looked at from environmental and social angles, considering environmental impact, clearances, and social inclusion. Top management is committed to the principles of sustainability. It is integrated with the business organisation structure with member of executive management commitment (EMC) responsible for driving sustainability initiative across organisation. The EMC is very proactive and has provided a direction to adopt carbon neutrality approach for key campuses of L&T where renewable energy plays a key role” – L&T. Corporate action in renewable energy adoption is led by progressive companies which can be further enhanced by removal of hurdles. Key Asks by Corporates from Government in context of RE: • Strict monitoring of RPOs and RGOs for a robust REC market • Implementation of the tariff policy on the ground through a clear guidance at all levels • Seamless facilitation of access to Renewable Energy via grid through PPA • Simplification and standardisation of policies across states • Single window clearances • Availability and awareness of various viable financial models for off grid and grid based renewable energy solutions. In addition, a welcome boost to the renewable energy scenario in India would be an assertive stance from the government in the form of a Renewable Energy Mandate on TOP 100 financially well- performing companies In a manner similar to how SEBI mandates the BRR for top 200 companies in India. The goal is for them to invest in renewable energy to meet 100% of their energy demands, as suggested by Mr. Swapan Kumar of Dr. Reddy’s Labs. This is feasible because top 100 corporate leaders don’t have financial hindrances that are often a common obstacle for other companies to invest in renewable energy to a larger extent. Therefore, the government or its appointed regulatory authority (perhaps, the MNRE) could oversee, as with the implementation of SEBI’s BRR, that the top 100 companies in India commit to 100% renewable energy to meet their needs by a stipulated plan. Leading corporations can then comfortably setup their roadmaps towards 100% renewable energy for all their facilities and operations, and submit annual progress reports to the concerned government bodies, who can conduct timely audits to ensure that commitments are matched with clear action plans and deliverable results on the ground. Falling cost of renewables, new progressive policies have set the tone for larger renewable energy adoption. This will be hastened if the key asks are well received and addressed by the government. Integration of global and regional learnings into Western Region policy, action on ground and governance will drive drastic adoption and thereby help in a low carbon transition. Recently released report of the Expert Group on 175 GW RE by 2022 investigated the financing aspects of the 175 GW RE target . The report states that “India lacks a comprehensive national
  • 51. 51Insights into Renewable Energy Adoption in India. policy and legislative framework for renewable energy, Existing policies and programmes are technology specific and vary across states restricting strategic intent. Placing renewables at the heart of India’s power system will require a paradigm shift in planning and governance practices”. Corporate world needs this paradigm shift for the Indian economy to flourish. Ironing out the hurdles, innovations and strategic direction, planning and governance at centre and state level is required for this.
  • 52. 52 Confederation of Indian Industry Appendices Appendix 1: Abbreviations and Definitions List of Definitions of Terms and Abbreviations TERM DEFINTION Bio Mass Wastes produced during agricultural and forestry operation energy plantation e.g. Husks, shells. CAGR Compounded Annual Growth Rate CDM Clean Development Mechanism Date of Commissioning Dateonwhichsupplyofenergyiscommerciallycommencedbythegeneratingplant Developer Entity which develops the projects DISCOM Distribution Company Energy Consumption Useful energy input that is supplied by the fuel ( normally bagasse or other such biomass fuel) EPC Engineering, Procurement and Construction service, contract GHG Green House Gas Grid The high voltage backbone system of interconnecting transmission lines, substations and generating plants Group Captive Power Scheme A group captive scheme is where someone develops a power plant for collective usage of many commercial consumers. The developer should have at least 26% of the equity and has to consume at least 51% of the power produced. The term “captive power scheme” was introduced in the Electricity Rule, 1995. For example. Imagine Company A along with company B and company C decide to bring down their electricity costs. Collectively they make a power plant with 26% equity and decide to use about 51% of energy produced. Then they decide to sell the remaining 49% power to Company X, Y and Z. This makes the whole group part of the group captive power scheme. Suppose the developer decides to make a Solar power plant for using the group captive scheme. Now, he not only gets the group captive scheme benefits but also gets to sell the REC (Renewable Energy Certificates) in open market or the IEX (Indian Energy Exchange).
  • 53. 53Insights into Renewable Energy Adoption in India. TERM DEFINTION GW Giga Watts HT High Tension Investor A body interested in investing in a project KWh Kilo Watt-hour Low Voltage Voltage at 415 Volts and below MNRE Ministry of New and Renewable Energy MSW Municipal Solid Waste MU Million Unit MW Mega Watt O&M Operation and Maintenance OA Open Access, which is Non-discriminatory provision for use of transmission lines/ distribution system / associated facilities with such lines or system by any licensee /consumer/ person engaged in generation in accordance with the regulations specified by the appropriate commission Power Banking It is the process under which a generating plant supply power to the grid not with the intention of selling it to either a third party or to a licensee but with the intention of exercising his eligibility to draw back this power from the grid. PPA/PSA Power Purchase Agreement/ Power Supply Agreement Project MeansaGeneratingStationortheEvacuationSystemuptoInter-ConnectionPoint.
  • 54. 54 Confederation of Indian Industry TERM DEFINTION RE Renewable Energy R&D Research & Development SERC State Electricity Regulation Commission Small Hydro Power Plant (Electricity Generating Station) Single Window System facilitated by Nodal Agency to expedite process of receiving clearances from multiple agencies and fulfil all inception-related requirements of a renewable energy project. Solar Plant/Solar Power Plant A power plant or system utilizing solar energy through solar photo-voltaic or con- centrated solar thermal devices including its integration into conventional fossil fuel for generating of electricity. Solar PV Power The solar photo voltaic (PV) power project that uses sunlight for direct conversion into electricity through photo voltaic technology. Solar PV Power Plant Solar Photo Voltaic (SPV) Power Plant that uses sunlight for direct conversion into electricity through Photo Voltaic technology. Solar Thermal Power The solar thermal power project that uses sunlight for direct conversion into electricity through concentrated solar power technology based on either line focus or pointy focus principle. The direct sun light is concentrated several times to reach higher energy densities and thus higher temperatures whereby the heat generated is used to operate a conventional cycle to generated electricity. SPO Solar Purchase Obligation A state/govt. mandated requirement for minimum amount of solar power in total power consumed. Substation Facility equipment that switches, changes, or regulates electric voltage. Tariff Schedule of charges for generation, transmission, wheeling and supply of Transmission Charges The charges payable by renewable energy sources for the use of transmission system Wind Farm Cluster of wind energy generators erected by a single developer and generating electricity from wind Merit order dispatch Way of ranking the dispatch of available electricity generally based on price. Must Run status Power generated are not subjected to competitive bidding and purchased by DIS- COMS as and when produced.
  • 55. 55Insights into Renewable Energy Adoption in India. Appendix 2: List of Tables Table 1 renewable energy installed capacity as of March 2015. Table 2 Description of Major Hurdles to renewable energy Adoption Table 3 State-wise Current Installed Capacity and Potential for Solar and Wind Energy Table 4 Enablers, hurdles, and plausible solutions for Western Region states Table 5 Enablers, hurdles, and potential solutions for other select states Table 6 List of Definitions of Terms and Abbreviations Table 7 Telangana renewable energy Policy Highlights Table 8 Maharashtra renewable energy Policy Highlights Table 9 Karnataka renewable energy Policy Highlights Table 10 Andhra Pradesh renewable energy Policy Highlights Table 11 Gujarat renewable energy Policy Highlights- Table 12 Rajasthan renewable energy Policy Highlights Table 13 Tamil Nadu renewable energy Policy Highlights Appendix 3: List Of Figures Figure 1: Cumulative Installed Capacity of Grid-connected Renewable Energy Systems in India, MW Figure 2 Timeline of the development of renewable energy in India. Figure 3 Gap Assessment of renewable energy current installed capacity and total potential Figure 4 Top Choices of renewable energy Technology for Adoption Figure 5 Reasons for renewable energy Adoption and Investment Figure 6 Tentative Breakdown of renewable energy Targets by Technology and Region, Figure 7 At Current CAGR of 6.85%, INDC goals will be reached in 2031 Figure 8 to achieve INDC goals by 2022, CAGR should increase to 31% or more Figure 9 Developments required to reach the renewable energy goals by 2022 Figure 10 At current CAGR (27.58%), 100 GW solar targets can be reached in 2028 Figure 11 To achieve the 100 GW solar goal by 2022, we need a 90% increase in CAGR Figure 12 At Current CAGR (9.61%), INDC goal for Wind power can be reached in 2025 Figure 13 To achieve INDC goals by 2022, CAGR should increase by 40% to 13.45% Figure 14 At current CAGR (9.6%), INDC goal for Bio power can be reached by 2025 Figure 15 To achieve INDC goal of 10 GW Bio power by 2022, CAGR needs to be 11.78%. Figure 16 Major Hurdles in renewable energy Adoption Figure 17 Main external reasons for inertia in renewable energy adoption Figure 18 Most important infrastructure development for renewable energy progress Figure 19 Most Interesting New renewable energy Technology Options Figure 20 Main improvements required to ecosystem surrounding RE Figure 21 Main constraints to renewable energy project implementation Figure 22 Main reasons for corporates to invest in RE Figure 23 Main Internal Obstacles to renewable energy Adoption Figure 24 Main external actions that can boost renewable energy Investments Figure 25 Lack of single window clearances is an obstacle
  • 56. 56 Confederation of Indian Industry Figure 26 Policy changes that can spur renewable energy adoption and investment Figure 27 External financial environment for renewable energy progress Figure 28 Global renewable energy usage by portion of total demand supplied by renewable energy sources. Appendix 4: State-Wise Policy Highlights Goa Minimum capacity of solar thermal project is 500 kW of installed capacity and 1 kW to less than 500 kW for rooftop solar power projects. Central incentives are eligible if the collective capacity of solar roof top installed capacity is a minimum of 100 kW. The allotted solar projects need to be implemented within the span of 12 months for projects of capacity below 500 kW and within 18 months for capacity of 500 KW or more. Policy highlights 30 : Madhya Pradesh MP has the wind and solar power policy. Net metering policy for solar rooftop is in draft phase and shall be applicable from the date of its notification in the Madhya Pradesh State Gazette. Policy highlights31 : Category Description of Provided Incentives Land availability and Land acquisition Land acquisition is to be performed by the developer. The land owner or rooftop owner are eligible to lease space for solar roof top installation. Development of solar parks is encouraged through private investment or through public-private partnership. Power evacuation Cost of power evacuation to the grid interconnection point shall be borne by the project developer. Open access and wheeling Open access is allowed within Goa or with other union territories. No wheeling charge is applicable for solar rooftop system. Power banking Rooftop solar system, with net metering, can bank a maximum of thirty (30) % of the annual generation capacity of electricity for a maximum of 12 months. Settlement will be performed every 6 months. Ground mounted solar systems, installed for sale of power, are not allowed for power banking Clearances Single window clearance policy is in draft stage and yet to be implemented. Other incentives Electricity duty is exempted for power generation from solar projects. Solar system, self-owned or third-party owned are exempted from wheeling charg- es, banking, cross subsidy and T&D losses charges. CSS is exempted for ground mounted solar system set-up for Sale of power. Power generation from solar rooftop can be accounted towards RPO. Rooftop solar system is not eligible for REC. Payment shall be made by the state distribution within 30 days from date of bill submission by the solar power generator. All grid connected solar power plants are considered as “Must Run” and thus are not subjected to merit order dispatch principle.
  • 57. 57Insights into Renewable Energy Adoption in India. Category Description of Provided Incentives Land availability and Land acquisition Solar power - No capacity limit for the solar projects in private land. The project in government land has the minimum capacity of 0.25 MW to a maximum of 100 MW. Govt. land if available shall be 3.0 Hectares per MW. Govt. land shall be allotted to bidder, if available, basis of maximum free energy per MW offered by eligible and qualified bidders and they would be eligible for incentives under this policy. Private land purchased by project develop shall have 50% exemption in stamp duty. Forest land and land owned by schedule tribes can be used with necessary permission from concern departments. Wind power – Govt. land shall allotted based on availability. Permission for use of Govt. Revenue land to be provided by New & Renewable Energy Department Developer is eligible for 50% exemption on stamp duty on purchase of Pvt. land for the project. A maximum of 100MW installed capacity is eligible in govt. land. Forest land and land owned by schedule tribes can be used with necessary permission from concern departments. Power evacuation Power evacuation facility from the project site to grid intersection shall be done by the project developer. Open access and wheeling Intra-state and inter-state open access is allowed as per the MPERC open access regulation, 2005. The revised open access regulation is in the draft phase. Wheeling charge is as per the rate prescribed by MPERC. Captive power generation are charged 2% of energy injected towards wheeling charge. Solar power - Government of MP shall provide grant of 4% in terms of energy injected and the balance, if any, to be borne by the project developer for the above wheeling charge. Wind power – For third party sale within state, Government of MP shall provide grant of 4% in terms of energy injected. Power banking Solar and wind power - Power banking is allowed for a financial year, with 2% of banked energy as banking charge Clearances No single window clearance facility is available. No licence is required for solar project, generating and distributing power in rural area. Other incentives Electricity duty is exempted for solar and wind for a period of 10 years. No cess is applicable for wind power. Energy cess is exempted for 10 years for solar power. No registration cost is applicable for installing small scale WTG or Wind Solar hybrid plant (up to 100kW) at a private rooftop or land. Projects implemented under the solar and wind policy shall receive status of industry and shall be eligible for all the incentives provided under “Industrial Promotion Policy of State Govt.” Contract demand can be reduced by the consumer buying wind and solar power, on permanent basis. Net metering Solar rooftop net metering policy is in the draft stage. The minimum capacity of installation is 0.5 kW and maximum capacity of 250 kW. Technical feasibility application shall be processed within 30 days of receiving the application. Power banking is allowed for a year time. Installation of SRPs under the policy shall be exempted from banking, wheeling, cross-subsidy surcharges and electricity duty. Solar rooftops are exempted from property tax and equipment are exempted from VAT and entry tax.
  • 58. 58 Confederation of Indian Industry Telangana Telangana, being a newly formed state, has intense energy demand and supply gap. To mitigate this problem, Telangana State Electricity Regulatory Commission has drafted the solar policy to encourage solar power development in the state through providing incentives and ease of doing business. The policy is applicable for all solar power projects and solar parks. The power generation needs to be within the time limit stipulated in the PPA or within a maximum period of 2 years from the date of application whichever is earlier, failing which the provisions under the policy will be cancelled. The highlights on ease of business and other incentives in the Telangana solar policy, 201532 are as: Incentive Category Description of Provided Incentives Land availability and Land acquisition Solar parks implementation is done by the state. The land acquired by the solar power project developer shall be deemed to be converted to non-agriculture land. No land ceiling, as per land ceiling act, is applicable for land acquisition for solar projects. Open access and wheeling Intra-state open access for the tenure of the project is granted. Intra-state transmission and wheeling charges are exempted for captive use of solar power. Power evacuation The project developer shall bear the infrastructure cost of power evacuation facility to the grid. The developers shall be supported by the transmission and distribution company for Supervision charges levied by the TSTRANSCO/DISCOMS shall be exempted; b) TSTRANSCO/DISCOMS shall process and close the proposals for technical feasibility within thirty (30) days of receipt of application from the developer. Power banking Banking of 100% of energy shall be permitted for all captive and Open Access/ Scheduled consumers during all 12 months, from April to March, of the year. Clearances The Solar Policy Cell (SPC) will undertake single window clearance for all solar power projects. PCB clearance for the solar projects shall be provided within 7 days from the date of application. Applications for grid connected solar projects shall be processed within 21 days from the date of application. Other incentives Electricity duty is exempted for all solar projects. Electricity duty is waived for new manufacturing facilities and ancillaries of the Solar Power Projects. 100% exemption of cross subsidy surcharge (CSS) for solar power generated and sold with Telangana for 5 years from the date of commissioning. Gram Panchayat will give permission within 14 working days from the date of making payment of INR 25,000 for development charges, failing which permission will be deemed to have been accorded. 100% refund of VAT/SGST for all the inputs required for solar power projects for a period of 5 years. 100% refund on stamp duty for the land purchased. Provision for grid connected solar power shall be made within a week time. Facility of gross and net metering, as chosen by the developer, shall be extended to SRPs for a period of 25 years All solar power plants are given the status of “Must Run”.
  • 59. 59Insights into Renewable Energy Adoption in India. Maharashtra Maharashtra has an overall target of 14.4 GW of energy generation from renewable energy. Of the total, 5 GW and 7.5 GW are to be generated from wind and solar respectively. Of the total of 5 GW of wind energy target, 1.5 GW will be used to fulfil RPO of distribution companies and the rest 3.5 GW capacity of wind project can be utilized open access for interstate/ intrastate open access/ captive consumption/REC etc. Similarly, for solar power, out to the total 7.5 GW, 2.5 GW will be used to fulfil RPO through public- private partnership in association with MahaGenco. 5 GW shall be developed by private investors. The minimum installed capacity of solar project applicable under renewable energy policy, 2015 is 1 MW. The highlights on renewable energy policy, 2015 are as follows: Incentive Category Description of Provided Incentives Power evacuation The project developer shall bear the infrastructure cost of power evacuation facility to the grid. The developers shall be supported by the transmission and distribution company for Supervision charges levied by the TSTRANSCO/DISCOMS shall be exempted; b) TSTRANSCO/DISCOMS shall process and close the proposals for technical feasibility within thirty (30) days of receipt of application from the developer. Power banking Banking of 100% of energy shall be permitted for all captive and Open Access/ Scheduled consumers during all 12 months, from April to March, of the year. Clearances The Solar Policy Cell (SPC) will undertake single window clearance for all solar power projects. PCB clearance for the solar projects shall be provided within 7 days from the date of application. Applications for grid connected solar projects shall be processed within 21 days from the date of application. Other incentives Electricity duty is exempted for all solar projects. Electricity duty is waived for new manufacturing facilities and ancillaries of the Solar Power Projects. 100% exemption of cross subsidy surcharge (CSS) for solar power generated and sold with Telangana for 5 years from the date of commissioning. Gram Panchayat will give permission within 14 working days from the date of making payment of INR 25,000 for development charges, failing which permission will be deemed to have been accorded. 100% refund of VAT/SGST for all the inputs required for solar power projects for a period of 5 years. 100% refund on stamp duty for the land purchased. Provision for grid connected solar power shall be made within a week time. Facility of gross and net metering, as chosen by the developer, shall be extended to SRPs for a period of 25 years All solar power plants are given the status of “Must Run”.
  • 60. 60 Confederation of Indian Industry Incentive Category Description of Provided Incentives Land availability and Land acquisition Wind energy: The land acquired by developers shall be deemed to be converted to non-agriculture land as per as per Maharashtra land acquisition act. Solar power: Land acquired by the developer for solar projects will be granted deemed status of Non-agricultural land. The solar project can be developed on the land available with the Water Department, area near water canal and above canal. Solar parks: Solar projects having capacity up to 2 MW can be given land 4 hectors as per availability and 50 % discount shall be given on rental/ lease charges. All such transactions will be governed as per Maharashtra land acquisition act. The project developer can lease or rent land for solar project from private land owner. Power evacuation In line with MERC, the power evacuation facility to the grid shall be developed by project developer. Supervision charges levied by the TRANSCO/DISCOMS shall be exempted. MSELDC/MSETDC shall provide grid connectivity for the solar project of minimum 1 MW in solar park. The policy does not provide any comment on the time of processing the application for evacuation. Open access and wheeling Open access is allowed for wind energy and solar power as per MERC regulation. Inter-stateandintra-stateopenaccessisallowed.Thereisnoexemptioninprovided for renewable energy for the wheeling and transmission and distribution losses. As per Distribution Open Access regulation, 2014, the minimum eligible installed capacity is 1 MW. Power banking In Distribution Open Access regulation, 2014, the banking of renewable energy power has not been specifically addressed. The excess power feed to the grid under open access shall be purchased by DISCOM in 15 minutes. This acts a serious set- back for the renewable energy generator and consumer under open access. Clearances Solar power and wind are exempted from NOC/PCB clearance. No single window application clearance facility for the ease of business. Other incentives • Government land if available requires for manufacturing of solar modules/ panels/etc. shall also be given 50 % discount on lease/rental charges. • Solar power has exemption from E-duty for captive power plants for 10 years from the date of commissioning. • Solar project developers can sell electricity generated from solar projects to distribution companies /captive use/third-party sale/ REC. • Existing wind electric generators are permitted for re-powering with appropriate micro-siting and use of updated technology. This will help in re- powering the old wind facilities or non-operable wind facilities. Solar rooftop – net metering34 MERC has approved the net metering policy for solar rooftop project, 2015. The capacity of the rooftop solar should not exceed 40% of the rated capacity of the distribution transformer. The maximum limit of solar rooftop PV system is 1000 kVA (~800kW), i.e., less than 1 MW. The power generated from solar rooftop PV system can be used for meeting RPO. The net meter for consumers within the scope of “Time of Day” tariff shall record the time of generation and consumption and compensated accordingly. Any unadjusted net credit of power injected to the grid shall be purchased by DISCOMS at the end of the financial year at the average cost, thus allowing a power banking of one year and ensured buying by the DISCOMS of the un-used power.
  • 61. 61Insights into Renewable Energy Adoption in India. Karnataka Karnatakahasseparatepoliciesforsolarandotherrenewableenergy.In2014,KarnatakaRenewable Energy Development Ltd. published solar policy for 2014-202135 and renewable energy policy for 2010-2021 is under progress. The total renewable energy target installation, by 2021, is 5.6 GW of which 2 GW is from solar power and remaining 3.6 GW is from other renewable energy sources. Karnataka has not defined on the RPO percentage from solar power. The major renewable energy sources are wind, with a target of 2.6 GW by 2021 followed by solar with 2 GW target by 2021. Key highlights of the policies37 38 are: Karnataka also approaches its energy situation by managing energy demand through energy efficiency programs. Karnataka has the energy conservation and efficiency policy 2015-19 with a vision to harness potential energy saving from energy efficiency. Incentive Category Description of Provided Incentives Land availability and Land acquisition The land acquired by the developer shall be deemed to be converted to non- agriculture land as per as per Karnataka land acquisition act. The wind energy project installation can start immediately upon submission of application and requisite fee. The renewable energy policy indicates that the land bank for respective renewable energy technology shall be generated by the concern government department. The government lands, such as barren land and forest land will be developed by Karnataka renewable energy Development Limited to facilitate setting up of various renewable energy projects. LandforwastetoenergyprojectsshallbeidentifiedandreservedbytheMunicipality Bodies. Change or shifting of location is not permitted under the policy. Power evacuation The power evacuation facility to the grid shall be developed by project developer. The policy does not provide any comment on the time of processing the application for evacuation. Open access and wheeling Open access and wheeling of power within state is allowed as per KERC norms at the rate of 5% as wheeling charge. All solar power generators in the State achieving commercial operation between 1st April 2013 and 31st March 2018 are exempted from payment of wheeling and banking charges and cross subsidy surcharge for a period of ten years from the date of commissioning. Captive solar power plants opting for Renewable Energy Certificates shall pay the normal wheeling, banking and other charges as specified in the Commission’s Order Power banking Power banking of for the renewable energy is allowed by KERC. Charge for power banking is exempted for solar power plants for 10 years. Clearances All solar PV projects are exempted from obtaining PCB clearances. Karnataka Renewable Energy Development Ltd acts as a single window for the clearances and shall be responsible for pursing the concern departments within 90 days and 120 days all departmental and forest clearances respectively. As per the draft renewable energy policy, response time for the departments is stipulated to be within 45 days from the date of application. Other incentives Existingwindelectricgeneratorsarepermittedforre-poweringwithuseofupdated technology. This will help in re-powering the old wind facilities or non-operable wind facilities. 10 % of “Green Energy Cess” fund shall be used as contribution to Energy Conservation Fund for Energy Conservation activities. The balance will be set apart for renewable energy project financing.
  • 62. 62 Confederation of Indian Industry Andhra Pradesh Andhra Pradesh has a large potential for Solar (58.8 GW) and Wind (14.5 GW) installations. The Andhra Pradesh Government has released its new policy for the development of solar power projects in the state in 2015. The main objective of the solar power policy39 now is to ensure installations of 5 GW of solar power within the next 5 years, through development of solar parks and promoting manufacture of solar equipment. The state also placed a Wind power policy40 and a Net metering policy41 . Incentive Category Description of Provided Incentives Other incentives Solar parks are promoted. A financial assistance of INR 1 Cr shall be provided by Government of Karnataka for solar park of area 100 acres or more. “Plug and play” solar park development by private parties are also encouraged. Farm land owners are encouraged to implement solar plant from 1MW to 3 MW capacities. Urban buildings are likely to be exempted from floor-area-ratio with respect to the floor area created for solar rooftop. “Surya Raitha System” has been launched to encourage famers to install solar panels for their irrigation pumps. Farmers can sell excess electricity produced back to the grid. Solar rooftop – net metering KERC has approved the net metering policy for solar rooftop project. The maximum limit of solar rooftop PV system is 1 MW. An attractive solar rooftop tariff of 9.56 INR/kWh for unsubsidised systems and 7.20 INR/kWh for systems availing a 30% central subsidy has been offered to boost solar rooftop PV system. Incentive Category Description of Provided Incentives Land availability and Land acquisition For Wind projects, based on the availability the allotment of revenue land shall be considered. For Solar projects, the project developer should acquire the land required for the project. The land owned by Revenue Department, the land allotment shall be done as per the prevailing government policy. Power evacuation For Wind Projects: The project developer shall bear the entire cost of power evacuation facilities for interconnecting the wind farm with the grid. For Solar projects, the Nodal Agency and/or designated offices by the Nodal Agency will facilitate in getting power evacuation. For solar parks, the state government will facilitate power evacuation. Supervision charges levied by the TRANSCO/DISCOMS shall be exempted for wind and solar power projects. Open access and wheeling Intra-state Open Access for wind and solar projects are allowed as per the APERC Regulations. In absence of any response to the application for open access or intimation from the Nodal Agency to the generator within 21 days, application shall be considered to be deemed open access. Transmission and Distribution charges are exempted for wheeling of power within the state, generated from Solar and wind power projects. No wheeling and transmission charges for wheeling to the desired location/s for captive use/third party sale within the state through 33KV system subject to industries maintaining their demand within its contracted demand.
  • 63. 63Insights into Renewable Energy Adoption in India. Gujarat Gujarat has significant potential of wind and solar power along with significant amount of barren and uncultivated land and long coastal area. Gujarat has the tentative renewable energy target of 17.133GW by 2022 of which 8.02GW is from solar power and 8.8 GW is from wind energy42 . Gujarat came up with its new solar power policy on 13th August 2015, which would be operative up to March 31, 202043 . As per the current solar policy, solar PV (under net metering) and solar power plants for captive consumptions are eligible to have the installed capacity not more than 50% of the contract demand or load. GERC has published its recent wind energy policy in July 201344 . The key highlights of the policies are as follows: Incentive Category Description of Provided Incentives Power banking 100% power banking is allowed during all 12 months of the year, from April to March. Clearances Wind energy projects: All approvals and clearances will be provided within 30 days from the date of registration. Solar Rooftop projects: All approvals and clearances will be provided within 14 days from the date of application” Technical feasibility for evacuation will be disposed within 14 days from the date of receipt of application. All wind and solar power projects are exempted from obtaining PCB clearance. Other incentives All wind power projects are exempted from paying Electricity Duty in case of sale of power to AP DISCOM. Electricity duty shall be exempted for captive consumption, sale to DISCOM(s) and third party sale provided the source of power is from Solar Power Projects setup within the State. Cross subsidy surcharges are exempted for third party sale for solar power projects setup within the State for a period of five (5) years from the date of commissioning. Incentive Category Description of Provided Incentives Land availability and Land acquisition The project developers are responsible for acquiring land. Based on the availability, revenue waste land or Gujarat Energy Development Agency (GEDA) land can be allotted for wind power plant installation. Power evacuation Wind power: The power evacuation facility from wind farm substation to GETCO substation, up to 100 km, needs to be erected by the project developer. Beyond 100 km, the evacuation line shall be erected by GETCO Solar power: The power evacuation facility from solar farm to GETCO substation shall be erected by project developer. The policy does not comment on the time line of the approval or erection of the power evacuation facility. Open access and wheeling Inter-state and intra-state open access is allowed in Gujarat. Wheeling of wind power for third party sale and captive consumption at 66kV voltage,normalopenaccessandwheelingchargeisapplied.Forcaptiveconsumption below 66kV, 10% and 7% of the energy fed by multiple WTGs and single WTG respectively are charged for wheeling. The wind power generator, wheeling power
  • 64. 64 Confederation of Indian Industry Rajasthan Rajasthan has the tentative total renewable energy target of 14.362GW of which 5.762GW is from solar power and 8.6GW is from wind energy45 . The Rajasthan Electricity Regulatory Commission (RERC) has even set a fixed RPO for the year 2016-17 at 2.5% solar power. RERC has come up with policies for wind46 and solar47 power generation. The key highlights of the policies are. Incentive Category Description of Provided Incentives Open access and wheeling to more than two sites, shall pay INR 0.05/unit of energy fed to the grid. Solar power: No wheeling charges are applicable for solar PV under net metering. Captive solar projects which are registered under REC, 50% of the normal wheeling charge and losses as applicable to normal open access consumers. For the REC solar projects, wheeling charges are as applicable to normal open access consumers. Power banking Wind power: No power banking facility is available for third party sale. Energy accounting is done on 15 minutes time block. WTGs which are used for captive consumption can bank power for one month time during the same calendar month. Solar power: The solar power projects under REC mechanism, selling power outside the state and solar projects which are selling power to DISCOMS are not allowed for power banking and the energy accounting for such projects are done on 15 minutes time block. The non-REC solar power, either captive usage or third party sale, are eligible for power banking for consumer’s one billing cycle wherein set-off can be done in any of the billing cycle. Clearances Solar power and wind are exempted from NOC/PCB clearance. The policies do not comment of single window clearance or timeline of the clearances. Other incentives Electricity duty shall be exempted for all types of solar power projects. For wind projects, except in case of third party sales, the electricity generated from the WTGs is exempted from electricity duty. Wind Turbine Generator (WTG) power: WTGs for captive use are exempted from demand cut to the extent of 30% of the installed capacity. Solar power: Rooftop solar PV for residential and government consumers, solar projects for selling power to DISCOMS and solar project under NSM are exempted from demand cut. For solar project for captive usage, third party sale, rooftop solar PV for industrial consumers under REC are exempted from demand cut up to 50% of the installed capacity. Cross subsidy surcharge in solar power projects are exempted for: Rooftop solar PV projects in residential, industrial, commercial and government consumers under net metering For captive consumption For sale of power to DISCOMs or the power is sold outside state. This surcharge is 100% for REC projects and 50% for non-REC projects for sale of power to third party under Open Access within the state for solar projects. Solar roof top- Net metering The installed capacity of roof-top solar PV is limited to 50% of the contract demand and load. TheexistingconsumertariffisappliedfornotmeteringrooftopsolarPVpower.Any unadjusted net credit of power injected to the grid shall be purchased by DISCOMS at the end of the consumer’s billing cycle at the average cost, thus ensured buying by the DISCOMS of the un-used power.
  • 65. 65Insights into Renewable Energy Adoption in India. Incentive Category Description of Provided Incentives Land availability and Land acquisition Wind power developers are allowed to procure private land. The conversion of private land to industrial land shall be done at the charge of 10% of the charge levied for industrial purpose. Rajasthan government land will provide land for wind farm at 10% of District Level Committee (DLC) rates on first cum first served basis, with a maximum land allotment of 5 hectare/MW. The sub-lease of land for wind farm development is also allowed under the policy. Government land is allotted for solar parks and solar Power Projects as per the provisions of Rajasthan Land Revenue (Allotment of land for setting up of Power Plant based on renewable energy Sources), Rules 2007. The maximum land allotment for different technologies of solar power plants are as, described: 1. Solar PV Crystalline Technology: 2.5 Ha/MW 2. Solar PV Crystalline Technology with tracker 3.5 Ha/MW 3. Solar PV on Thin film / Amorphous Technology 3.5 Ha/MW 4. Solar Thermal (CSP) Tower / Trough or other technology: Up to PLF of 21% 3.5 Ha/MW For every 1% increase in PLF 0.15 Ha/MW additional land will be allotted The land allotment for solar power projects shall be done only on the refundable payment of 5 lac INR/MW to RREC. The solar project developers are allowed to procure private land. No land conversion is required for setting up solar projects. Farmers are allowed to install or sub-let solar projects in their land without requirement of land conversion. Power evacuation The power evacuation facility shall be erected and maintained by the power producer. Open access and wheeling Inter-state and intra-state open access and wheeling of power is allowed for wind and solar power projects. Transmission & wheeling charges for third party sale or captive use within or outside the state the wheeling and transmission charges will be recovered in cash as per orders of the commission48 . Power banking As per “Terms and Conditions for Determination of Tariff for renewable energy Sources - Wind and Solar power Regulations, 2014” 49 by RERC, the power banking of solar and wind energy is allowed at consumer end for only captive consumption within the state. The period of banking will be monthly basis and banking charges at 2% of banked energy would be payable. Clearances Wind power projects are exempted from State Pollution Board clearance. Further, no N.O.C is required from Gram Panchayat for installation of wind farm in the government allotted land Solar power projects are notified under “Green Category” and a comprehensive consent to establish and consent to operate shall be issued for solar project by PCB within 15 days from the date of application submission. Other incentives Incentives available under Rajasthan Investment Promotion Scheme (RIPS) shall be available to the solar and wind power projects. The Cross-subsidy surcharge shall not be applicable in case of open access transactions based on wind and solar power50 . Wind energy used for captive consumption is exempted from electricity duty. The transmission charge for solar power projects, commissioned from April 2015 to march 2018 shall be charged 50% of the normal transmission charge51 . No energy scheduling is applicable for solar power generator for intra-state ABT. Based on the availability, Water Resource Department shall allocate water from IGNP canal or nearest source of water for solar thermal power plant. Solar rooftop – net metering52 The installed capacity of the solar rooftop PV system is limited to 1MW installed capacity and not be more than 80% of the consumer’s connected load or contracted demand. The total installed capacity of the solar-rooftop PV system is not be more than 30% of the distribution transformer capacity. Energy generated by solar rooftop is exempted from banking and wheeling charges and cross subsidy surcharge. The energy banking allowed for a month and credit will be carried forward to next period to the extent of 50 units. DISCOMS can use the energy generated by solar rooftop power plant for meeting its solar RPO through entire generation from a net-metering plant, when the consumer is not an obligated entity.
  • 66. 66 Confederation of Indian Industry Tamil Nadu Tamil Nadu is among the states with highest insolation of 5/5 – 6 kWh/sq. m./day has been proactive about encouraging wind and solar power installations. The renewable energy target for Tamil Nadu, by 2022, is 21.508 GW of which 8.88GW is from solar power and 11.9 GW is projected to be from wind energy53 . The state laid down a progressive solar policy in 201254 , with ambitious goals, such as to generate an additional 3,000 megawatts (MW) of solar power by end-2015. Thestatealsohadplanstolevya6%SolarPowerObligation(SPO)uponpowerconsumers.However, the state electricity tribunal has set aside these directives and the renewable energy sector had suffered due to this legal setback. Tamil Nadu is yet to have any formal wind energy policy for the state. Incentive Category Description of Provided Incentives Land availability and Land acquisition Land acquisition is the responsibility of the investor. Subjected to availability, industrial estates shall be allocated for erection of solar power plants. Power evacuation The power evacuation facility is to be erected and maintained by the project developer in line with requirement of TNERC. Open access and wheeling Intra-state and inter-state open access and wheeling of power is allowed. For wind power projects and solar power projects, wheeling, transmission and scheduling and system operation charges to be 40%55 and 30%56 respectively of the charges as applicable to conventional power plants. The projects which are opting for REC, 100% of the charges are applied. Power banking Wind power banking is allowed for one year, from 1 April to 31 March57 . Banking of solar power is allowed for the billing cycle58 . Clearances For solar power projects single window clearance will be provided through TEDA in 30 days from date of application. No specific time line is given for the clearance with respect to wind power projects. Other incentives 100% of electricity generated from solar power used for self- consumption/sale to utility, allowed for 5 years Tax concessions will be given as per Tamil Nadu Industrial Policy The cross subsidy charges for the third party open access consumers as proposed to be 50% for both wind and solar power. 100% exemption from demand cut for the solar power plants. Government shall identify the land for solar manufacturing parks. Solar rooftop – net metering52 Net metering has been allowed in the solar policy 2012 to promote solar rooftop PV system installation in commercial and individual buildings. The capacity of net metering installation is not to be more than 90% of the connected load. The energy accounting shall be done on 12 month basis from August – July with no further carry forward.59
  • 67. 67Insights into Renewable Energy Adoption in India. Appendix 5: Clearances & Permits for Solar and Wind Projects in Maharashtra Specific to renewable energy projects, the EIA rules are defined as: • Biomass Projects up to 15 MW are exempted from EIA. • Solar Photo Voltaic (SPV) all capacity is exempted up to a plant size of 50 hectares. • Small Hydro Projects (SHPs) are exempted up to a capacity of 25 MW - But the project proponents have to approach State Pollution Control Board (SPCB) for clearance under Air and Water Act. • No EIA for wind projects of any capacity is required. Wind and Solar and hydel <25 MW have been moved from Red category to Green as per the CPCB clarification of amendment in the categorisation of industries based on pollution potential. (http://mpcb.gov.in/consentmgt/pdf/Clarificatory%20amendment%20in%20thecategorisatio%20 industries%20RedOrangeGreen_grantconsent.pdf)
  • 68. 68 Confederation of Indian Industry For wind and solar projects need CTE and CTO from the state pollution control authority. For solar projects, keeping in view the extent of land required, the state pollution control board before providing the consent to establish, must ensure that the proposed area does not involve 1. Wet land, 2. Any agricultural land 3. Eco sensitive area 4. Large habitation 5. Areas rich in biodiversity. http://mnre.gov.in/file-manager/UserFiles/environmental_clearance_grid_connect_stp_jnnsm.pdf For forest land, clearance from forest department must be taken. Projects of national importance like wind and solar farms can be granted forest land on lease through a detailed two stage process by the MoEF. In Stage-I, the developer provides the necessary documents to the Divisional Forest Officer (DFO), who assesses the Net Present Value (NPV) of the current forested area to make recommendations for forest land diversion and determine areas for compensatory afforestation. In Stage-II, MoEF or its regional office reviews the document and gives a go ahead for the project. Forest areas are identified using forest atlas and GIS maps and alternatives have to be considered to minimize forest land use during this process. No renewable energy project may be undertaken in coastal region. Listed below are the clearance s and permits required for wind power projects in Maharashtra 1. Type test certificate 2. Grid connectivity permission 3. Land ownership documentation/ Forest land clearance 4. Wind assessment document from NIWE or verified by NIWE 5. No-objection certificate from local body 6. Notarised undertakings prescribed by MEDA Listed below are the clearance s and permits required for solar power projects in Maharashtra 1. Grid connectivity permission 2. Land ownership documentation 3. Solvency certificate of up to 30% of project cost from any nationalized/scheduled bank 4. Mandatory to inform SLDC about the electricity generation through real time visibility. 5. Permission required from MEDA for installations on government waste land 6. Notarised undertakings prescribed by MEDA
  • 69. 69Insights into Renewable Energy Adoption in India. List of Clearances and Permits for Renewable Energy Projects in India. Sr. No. Details Approvals to be obtained by the Developer Pre Bidding Approvals Pre bidding approvals 1 Registration under PAN, TAN, IEC, Service tax, Entry Tax, VAT law and Central Excise and Customs Acts. 2 Identification of nearby substation 3 Load flow analysis/connectivity letter from the Utility, with estimate for bay extension received from Transco 4 Identify the location, where the numbers of farmers are less preferably: At least 30-40 acres per farmer or an aggregator who as a GPA for his name Local intelligence on who is having how much land: PostAwardPrePPAapprovals Post Award Pre PPA process 1 Creation of SPV for the project 2 Project registration certificate and documents. 3 Power purchase agreement/approvals with the relevant distribution licensee in AP. 4 Power Evacuation Agreement with State Utility Private Land Acquisition 1 Collect all the documents 2 Verified by the advocate for the due diligence 3 Public notice for acquiring the land, needed for legal due diligence 4 If cleared legally, you can buy from the aggregator, see the land is contiguous, 5 There is an system if AP, Karnataka, Telangana, , you can buy a land only up to 54 acres then you can apply for NA conversion The entire land acquisition needs to be done stage wise. Deemed NA conversion. Solar policy document available on NREDCAP. After submitting fees deemed conversion is received takes about 45 days. After submission you can easily start construction. The land has to be purchased in blocks and applied for in stages with limit of 54 acres. Revenue Land 1 After identification of land. Apply NREDCAP, approval at CM, revenue minister office, the nodal agency will send it to energy secretary, from energy secretary it will go to district collector. Collector – Joint collector – Revenue divisional officer – Mandal/Tehsildar – Government surveyor.
  • 70. 70 Confederation of Indian Industry Sr. No. Details PostAwardPrePPAapprovals 2 Basedonthemarkettheysubmitprepareaproposalanditwillgotohigher authorities. RDO will give approval and submit his report. JC will inspect the land and submit the reports and recommend the price. Collector will send it to CCLA (Chief Commissioner land administrator at the rank of CS). 3 A committee called APLNA – meets one in a month which is attended by all secretaries and the proposal will be presented to the authority to review it. After getting cleared in APLNA it will be forwarded to state government. 4 Process: It has to be cleared to revenue, finance, Chief Secretary of state, revenue minister and then it goes to CM. Once it is cleared by CM it will be cleared by cabinet meeting. GO will be issued in the name of company, defining the land and purpose. (In wind the GO will be issued in the name of NEDCAP and developer, after commissioning NREDCAP will be go back from GO) 5 ALIENATION or lease. Based on GO 571 AP is not doing alienation, will give only for special cases, but by default by lease, 25-30 years based on plant life. Prepare the project feasibility/DPR for application to NEDCAP. 6 Process time required is 4-6 months: after expenditure Post PPA Pre Construction Post PPA - Pre Construction 1 Construction of Plant No required from gram panchayat, required for both government and private land: 2 Factory license is required before commencement. Submission of layout, Directory factory . Registration under the Factories Act, 1948, Approval of building plans under factories act 3 Commercial taxation/state tax with local authority once again at the local level for the plant Municipal registration: Business establishment certificate: Company registration document, Project NoC, in the name of the SPV. 4 Separate approval for control room buildings required director-town and country planning - 2 weeks 5 Pollution control board No-objection certificate (CTE) from pollution control board, if required.: Telangana state industry policy IPASS – Single window clearance system: Apply online, upload some documents viz. plant layout, building plan all these documents to the concerned department. Also single point contact for factory license and town and country planning: Consultant to Establish and Consultant to Operate 6 Approval from competent Authorities of AP state government for the procurementofgoodandmaterialwhileexecutionofWorkatconcessional custom duties and “nil excise duties” as currently for grid connected solar power plants. 7 Approval for ground water extraction from competent authorities (if required). 8 In case of bidding: evacuation related feasibility and approval is not required: The makes and models, the SLDs, submit it to the Transco, equipment layout and they approve. Submission of letters, and pay supervision charges. But for open access : Load flow analysis, from the nodal transmission authority, Identification of the substation as a spare capacity confirmation is the first requirement.
  • 71. 71Insights into Renewable Energy Adoption in India. Sr. No. Details PostAwardPrePPAapprovals 9 Right of access and permits for Transmission Lines and interconnection of the same from plant Battery Limits to the nearest TRANSCO/DISCOM receiving sub-station. Transmission Agreement, Section 68 approval, PTCC clearance. 10 EmployerobtainsregistrationasPrincipalEmployerfromtheDepartment of Labour. Registration and licenses under Contract Labour (Regulation and Abolition) Act, 1970 MNRE 1 Submission of any bond / undertaking / declaration to customs / central excise / any other tax authorities / MNRE / Designated government body required in connection with the procurement of material (both imported and indigenous). 2 Declaration of Project Site for the purposes of IHS code for the purposes of material procurement (both imported and indigenous) 3 Approval for MNRE for concessional customs and nil excise duty 4 Approval from Local Body / Panchayat / Tehsildar Pre Commissioning Approvals Pre Commissioning CTO from pollution control board ELECTRICAL Load flow approval Bay allotment approval Transco Approval Scheme approval All drawing approvals All inspections including stage , onsite and offsite and final inspection and getting NOC All required liasoning for the above works CEIG CEIG- drawing approval CEIG- site visit WCC-Discom( work completion certificate) WCC by TRANSCO WCC by OPS and maintenance WCC by MRT
  • 72. 72 Confederation of Indian Industry Sr. No. Details Pre Commissioning Approvals WCC by SLDC Synchronization Transmission utility Distribution utility Transmission utility TSSPDCL (TL & Metering) TSTRANSCO TSSPDCL NEDCAP (Nodal agency ) DPE (vigilance) Synchronisation Committee formation by discom Appendix 6: Renewable Energy Policy Brief, Brazil Brazil’s Renewable Energy Policy is exemplary. The policy can be accessed at http://www.irena.org/DocumentDownloads/Publications/IRENA_RE_Latin_America_ Policies_2015_Country_Brazil.pdf
  • 73. 73Insights into Renewable Energy Adoption in India. Name Energy Mix Specific Remarks What India can learn and watch out for Iceland Primarily Geothermal 85% and 15% hydropower Iceland is on volcano and this makes it possible to tap the earth’s warmth In talks with Britain to build an interconnector to the UK grid (tapping its geothermal capacity for neighbouring countries) Iceland switched to geothermal in a big way from fossil fuel in the 1990s. It has shown the world that given resources “what a nation can achieve when it sets it mind to it!” Lesotho Hydropower 100% Lesotho Highlands Water Project powers this tiny African nation. Project is riddled with controversies and serious corruption. Lesotho project was based on breaking the sanction which was then imposed on South Africa. Riddled by corruption at the highest level project was implemented with serious adverse impact on people and environment. Norway Hydropower, geothermal, wind 98% of power generated is Renewable, but only 24% is consumed in Norway – remaining from fossil fuel. Norway sells its Renewable power to neighbouring countries in form of Clean Energy Guarantees of origin. Norway has oil reserves and has prudently used the oil money to create a fund which is invested outside. It focussed on using funds to create and sustain traditional industries such as fishing and develop its renewable energy portfolio. Costa Rica Hydro, Geothermal, wind, biomass and solar 99% - 1% fossil fuel. Recently made headlines for operating on 100% renewable energy for 285 days. Small country with big ambitions in renewable energy – it understands that hydro power will suffer in course of drought, back-up plan is to invest in a large geothermal project. Bhutan Hydro 100% Exports 85% of its power gener- ated to India. Impact on stranded assets with withdrawal of glaciers is something to watch out for In dry season Bhutan needs to import power from India. Uruguay Biomass, Solar, hydro Uruguay is another country that is generating 95% of its electricity from renewable energy. Clear decision-making, A supportive regulatory environment Strong partnership between the public and private sector. Importance of cross party support which emerged after a rancorous debate on its energy policy in 2008. Appendix 7: Learnings from The World Countries across the world where renewable energy contributes to 100% of the energy demand.
  • 74. 74 Confederation of Indian Industry Countries that are amongst the top in Renewable Energy Consumption: Country Portion What India can learn from USA 22% of the global consumption of RE. USA is looking at renewable energy as a means to revive its economy though American Recovery and Reinvestment Act 2009 India must look at the energy policy as a means to revive green jobs in this sector USA has complained to the WTO about India’s minimum requirement for procuring locally produced solar panels. China RE as a means of energy security above fossil fuels. Technological innovator in solar and wind, leading to reduction in cost of installations India must learn from China and establish a way to encourage innovation and R&D in renewable energy technology. Germany 27% of its power is from renewable. Germany, the world’s fourth largest economy, has promised some of the most aggressive emission cuts—by 2020, a 40 percent cut from 1990 levels, and by 2050, at least 80 percent. Accelerated adoption after govt. shutting down nuclear after the Fukushima nuclear disaster Aggressive targets and rapid transition to renewable energy moving away from fossil fuel and nuclear at the same time Grass root level movement involving citizens - Individual citizens and local citizen associations have made half the investment and there are 1.5 million citizens selling power to the grid Utilities are resisting as they are still based on coal Fraunhofer Institute is a world leader in solar research – focus on research has helped Germany transition to Renewables Protection of its forests due to acid rain – death of forests made them think harder about fossil fuel emissions Spain The country is still the fifth largest producer in the world of wind power and the third biggest exporter Spain is committed to meeting 20 percent of its energy needs through renewables by 2020, compared to the current 15 % Government dishonouring of solar tariffs ruined lives of several individual citizen investors Spain was leading in renewable energy in 2008 till a changed government led to abandoning of its solar growth Spain wants to make up the ground it lost during the economic crisis when it reversed its policy slashing subsidies and decimating the sector Some strong companies survived the economic downturn by doing business outside of Spain Brazil Brazil entered a bilateral agreement with the US to obtain up to 20% of their electricity from renewable power by 2030. Clearly researched well-articulated policy Clarity in thought in evolution of a holistic energy policy Focus on biodiesel and a clearly working mechanism on the ground for reduction of transportation emissions. Italy 28.5% of the total energy is from renewable energy sources; Just Solar PV provides 7.8% of the nations’ demand. In Italy, grid operators are obliged to give priority access to renewable energy plants in the operation of their grids. In Italy, training programmes on renewable energy are developed at regional level. Certification of installed plants is obligatory. All new or refurbished buildings must integrate RES, with an additional 10 % to the obligation level for public buildings. A guarantee fund is in place for supporting district heating network development. In addition, a loan can also be used for supporting investment in district heating infrastructure. Further, Italy is subsidizing electric cars since transport accounts for their large emissions footprint. Italy is also giving Income Tax credits (50% deductions) for captive and residential solar PV plants less than 20kW.
  • 75. 75Insights into Renewable Energy Adoption in India. Appendix 8: Cdp Scores And Renewable Energy Initiatives Of Selected Enterprises CDP Scores and renewable energy Initiatives listed for a select cohort of companies. Name of Company CDP 2015 Disclosure Score Initiatives related to Renewable Energy listed in CDP Report AB Management Corp. No response Ambuja Cements 97 They have installed a330 KV Solar energy plant at Bhatapara, Chhattisgarh and a 7.5 MW Wind energy plant at Kutch, Gujarat. Bharti Infratel Not scored No response towards CDP Reporting Cairn India 65 Solar lights installed in 2014 generated 42,860 kWh of electricity Chambal Fertilisers Not scored No response towards CDP Reporting Coal India Not scored No response towards CDP Reporting DLF Not scored No response towards CDP Reporting Dr Reddy’s Laboratories 97 Signed PPAs of 15 MW with solar power producers (DRL will pay 26% equity of projects); established biomass based steam production plant in Pydibhimavaram. DSM India Not listed DSM has solarised their Pune office with a 1 MW plant, as a technological demonstration of anti-reflective coating for improving solar panel efficiency. Three more sites will be solarised in 12-18 months. Godrej Consumer Products Limited 94 Purchased 2764 MWh of renewable energy during the current reporting year. Investing roughly INR 200 million in renewable energy and low carbon technology HCC Not listed Not explored renewable energy due to the project based type of work in construction sector Hero Motorcorp Not listed Not listed in the CDP report Hindalco No response Hindustan Petroleum Corporation Limited Forthcoming Latest initiatives to be updated in the 2015 report Idea AB No response Indian Oil Corporation 94 Existing installations: 63 MW wind, 5 MW solar, and 4.4 MW off-grid solar Jubilant Life Sciences Not scored In FY 2014-15, 4.54 % of total energy consumed was sourced from renewables Kansai Nerolac Paints Not Available No response towards CDP Reporting Mahindra EPC Not listed Mahindra Sanyo Not scored Maruti Suzuki Forthcoming No previous response available for public viewing NTPC Declined Declined
  • 76. 76 Confederation of Indian Industry Name of Company CDP 2015 Disclosure Score Initiatives related to Renewable Energy listed in CDP Report Reliance ADA No response Reliance Industries No response No response towards CDP Reporting Shree Cements 90 Setting up 50 MW solar thermal; installed Waste Heat Recovery Systems of capacity 81 MW Suzlon Not scored Tata Group Not listed Tata Housing Not scored Tata Power 92 Installed capacity: 59 MW solar, 468 MW wind, 573 hydro, and 120 MW waste heat recovery Tata Power Solar Not listed TataRefractories Not listed Titan No response No response towards CDP Reporting UltraTech Cement ADB 95 Poised to invest INR 49 crore in purchasing RECs due to being mandated to meet RPO Welspun Renewables 77 NO initiatives mentioned clearly in CDP report. Yes Bank 98 NO initiatives for direct installation or purchase of RE, BUT, will be providing loans as "Green Energy Finance" to assist with renewable energy installations. Made commitments to fund 500 MW renewable energy in this FY.
  • 77. 77Insights into Renewable Energy Adoption in India. Appendix 9: References 1 India’s INDC http://www4.unfccc.int/submissions/INDC/Published%20Documents/India/1/INDIA%20 INDC%20TO%20UNFCCC.pdf 2 http://pinnacleengineeringsolutions.com/files/2016-01/1452152690_grant-open-access.pdf 3 Membersinclude:Adobe,Alstria,Autodesk,Aviva,Biogen,BMWGroup,BROADGroup,BTGroup, Coca-Cola Enterprises, Commerzbank, DSM, Elion Resources Group, Elopak, Formula E, Givaudan, Goldman Sachs, Google, H&M, IKEA Group, Infosys, ING, International Flavours & Fragrances Inc.(IFF), J. Safra Sarasin, Johnson & Johnson, Kingspan, KPN, La Poste, Land Securities, Marks & Spencer, Mars Incorporated, Microsoft, Nestlé, Nike, Inc., Nordea Bank AB, Novo Nordisk, Pearson PLC, Philips, Procter & Gamble, Proximus, RELX Group, Salesforce, SAP, SGS, Starbucks, Steelcase, Swiss Post, Swiss Re, UBS, Unilever, Vaisala, Voya Financial, Walmart and YOOX Group. 4 Low Carbon Technology Partnership Initiative, WBCSD, http://lctpi.wbcsdservers.org/portfolio- item/climate-smart-agriculture/, accessed 22nd March. 5 http://there100.org/re100 RE100 is brought to you by The Climate Group in partnership with CDP, as part of the We Mean Business coalition. 6 We Mean Business is a coalition of organizations working with thousands of the world’s most influential businesses and investors. These businesses recognize that the transition to a low carbon economy is the only way to secure sustainable economic growth and prosperity for all. To accelerate this transition, this common platform helps to amplify the business voice, catalyze bold climate action by all, and promote smart policy frameworks. 7 Members as listed in Reference 3. 8 Global Economic Forum Global Risks 2015: http://www3.weforum.org/docs/WEF_Global_Risks_2015_Report15.pdf 9 http://www.theguardian.com/environment/2013/nov/20/90-companies-man-made-global- warming-emissions-climate-change 10 International Energy Agency- World Energy Outlook Special Report, 2015: http://www.worldenergyoutlook.org/media/weowebsite/2015/IndiaEnergyOutlook_WEO2015. pdf 11 https://cprclimateinitiative.wordpress.com/2015/10/15/what-does-indias-indc-imply-for-the- future-of-indian-electricity/
  • 78. 78 Confederation of Indian Industry 12 MNRE Annual report -2014-15: http://mnre.gov.in/file-manager/annual-report/2014-2015/EN/Chapter%203/chapter_3.htm 13 https://www.cdp.net/CDPResults/CDP-India-climate-change-report-2015.pdf 14 Tentative breakdown of renewable energy power by 2022 for states and technologies, MNRE, Government of India. http://mnre.gov.in/file-manager/UserFiles/Tentative-State-wise-break-up-of-Renewable-Power- by-2022.pdf 15 Press Information Bureau- Cabinet approves amendments in Power Tariff Policy, 20 January 2016: http://pib.nic.in/newsite/PrintRelease.aspx?relid=134630 16 Asia Development Bank- Green energy corridor- Project overview, December 2015: http://www.adb.org/projects/44426-016/main#project-overview 17 State-wise Potential of Various renewable energy Technologies; https://data.gov.in/catalog/state-wise-potential-various-renewable-energy-technologies 18 State-wise Potential of Various RE Technologies; https://data.gov.in/catalog/state-wise-potential-various-renewable-energy-technologies 19 Solar rooftop installed capacity: Bridge to India- Solar rooftop Map, as of October 2015: www.bridgetoindia.com/reports/india-solar-rooftop-map-2015 20 MERC- (DISTRIBUTION OPEN ACCESS) REGULATIONS, 2015: http://www.mercindia.org.in/pdf/Order%2058%2042/DOA%20Regulations%202015%20 -16092015.pdf 21 https://www.cdp.net/CDPResults/CDP-India-climate-change-report-2015.pdf 22 https://www.cdp.net/CDPResults/CDP-India-climate-change-report-2015.pdf 23 http://www.theclimategroup.org/what-we-do/programs/ep100/ 24 Renewable energy 100 India Briefing Report, http://www.theclimategroup.org/_assets/files/Re100-India-briefing.pdf 25 https://www.infosys.com/newsroom/press-releases/Pages/join-renewable-energy-campaign. aspx 26 http://climateparl.net/cpcontent/pdfs/101204%20Climate%20Parliament%20strategy.pdf
  • 79. 79Insights into Renewable Energy Adoption in India. 27 World Atlas, Top 15 countries using renewable energy http://www.worldatlas.com/articles/top- 15-countries-using-renewable-energy.html (Published: November 2, 2015) 28 http://www.mnre.gov.in/schemes/r-d/solar-pv-3/rd-strategy/ 29 Niti Aayog, Export Report on 175 GW RE by 2022 http://niti.gov.in/writereaddata/files/writereaddata/files/document_publication/report-175-GW- RE.pdf 30 JERC solar policy for Goa and union territories: http://jercuts.gov.in/writereaddata/Files/SPGREGULATIONFINALJUNE.pdf 31 Solar rooftop net metering policy: http://mpnred.com/Images/pdf/Draft_net_metering_Solar_Roof_Top_Policy_Policy.pdf Wind power: http://www.mpnred.com/Images/pdf/Wind-Policy_ENGLISH.pdf Solar power: http://www.mpnred.com/Images/pdf/solar-power-policy-english.pdf 32 Telangana Solar Power Policy 2015: http://mnre.gov.in/file-manager/UserFiles/state-power- policies/Telangana-Solar-Power%20Policy.pdf 33 Maharashtra renewable energy policy http://www.mahaurja.com/PDF/Policy%202015_2.pdf 33 MERC- Net metering policy http://www.mercindia.org.in/pdf/Order%2058%2042/MERC%20(Net%20Metering%20for%20 Roof-top%20Solar%20PV%20Systems)%20Regulations,%202015.pdf 34 Karnataka Renewable Energy Development Ltd- Karnataka Solar policy 2014-2021: http://www.kredlinfo.in/solargrid/Solar%20Policy%202014-2021.pdf 35 Karnataka Renewable Energy Development Ltd- Draft Karnataka renewable energy policy 2014- 21 http://www.kredlinfo.in/scrollfiles/RE%20Policy%202014-20.pdf 36 Karnataka Renewable Energy Development Ltd- Karnataka Solar policy 2014-2021: http://www.kredlinfo.in/solargrid/Solar%20Policy%202014-2021.pdf 37 KarnatakaRenewable Energy DevelopmentLtd- Karnataka renewable energy policy 2009-2014: http://www.kredlinfo.in/general/Renewable%20Energy%20Policy%202009-14.pdf 38 Andhra Pradesh Solar Power Policy,2015 http://www.ireeed.gov.in/policydetails?id=436
  • 80. 80 Confederation of Indian Industry 39 Andhra Pradesh Wind Energy Policy, 2015 http://www.ireeed.gov.in/policydetails?id=437 40 Andhra Pradesh Net Metering Policy, http://www.ireeed.gov.in/policydetails?id=37 41 MNRE, Tentative State-wise break-up of Renewable Power target to be achieved by the year 2022 So that cumulative achievement is 1,75,000 MW: http://mnre.gov.in/file-manager/UserFiles/Tentative-State-wise-break-up-of-Renewable-Power- by-2022.pdf 42 Gujarat Solar Policy 2015: https://geda.gujarat.gov.in/policy_files/gujarat_solar_power_ policy_2015.pdf 43 Gujarat Wind energy policy, 2013: https://geda.gujarat.gov.in/policy_files/Wind_Power_ Policy-2013.pdf 44 MNRE, Tentative State-wise break-up of Renewable Power target to be achieved by the year 2022: http://mnre.gov.in/file-manager/UserFiles/Tentative-State-wise-break-up-of-Renewable- Power-by-2022.pdf 45 Government of Rajasthan- Energy Department- Policy for Promoting Generation of Electricity from Wind-2012: http://www.rrecl.com/PDF/Notification-Wind%20Policy,%202012.pdf 46 Government of Rajasthan- Energy Department – Solar Policy 2015: http://www.rrecl.com/PDF/Solar%20Policy%202014_08.10.2014.pdf 47 RERC: Term and conditions of tariff order- Solar and Wind, 2014 http://rerc.rajasthan.gov.in/Regulations/Reg79.pdf 48 RERC: Term and conditions of tariff order- Solar and Wind, 2014 http://rerc.rajasthan.gov.in/Regulations/Reg79.pdf 49 RERC: Term and conditions of tariff order- Solar and Wind, 2014 http://rerc.rajasthan.gov.in/Regulations/Reg79.pdf 50 RERC: Term and conditions of tariff order- Solar and Wind, 2014 http://rerc.rajasthan.gov.in/Regulations/Reg79.pdf 51 Government of Rajasthan, Energy Department- Policy directive to provide concessional transmission charges to solar power projects: http://www.rrecl.com/PDF/Policy%20Directive%20for%20Concessional%20Transmission%20 Charges%20to%20the%20Solar%20Power%20Plants.pdf
  • 81. 81Insights into Renewable Energy Adoption in India. 52 RERC Net Metering Regulations, 2015.: http://rerc.rajasthan.gov.in/Regulations/Order84.pdf 53 MNRE, Tentative State-wise break-up of Renewable Power target to be achieved by the year 2022: http://mnre.gov.in/file-manager/UserFiles/Tentative-State-wise-break-up-of-Renewable-Power- by-2022.pdf 54 Govt. of Tamil Nadu- Solar policy 2012: http://mnre.gov.in/file-manager/UserFiles/guidelines_sbd_tariff_gridconnected_res/ Tamilnadu%20Solar%20Energy%20Policy%202012.pdf 55 TNERC-Comprehensive Tariff Order on Wind Energy-2014: http://tnerc.tn.nic.in/Concept%20Paper/2014/Wind%20Consultative%20paper-25-09-2014.pdf 56 TNERC-Comprehensive Tariff Order on SOLAR POWER: http://tnerc.tn.nic.in/orders/Tariff%20Order%202009/2014/solar%20order/Order%20No%20 4%20of%202014%20dated%2012-09-2014.pdf 57 TNERC-Comprehensive Tariff Order on Wind Energy-2014: http://tnerc.tn.nic.in/Concept%20Paper/2014/Wind%20Consultative%20paper-25-09-2014.pdf 58 TNERC-Comprehensive Tariff Order on SOLAR POWER: http://tnerc.tn.nic.in/orders/Tariff%20Order%202009/2014/solar%20order/Order%20No%20 4%20of%202014%20dated%2012-09-2014.pdf 59 TNERC-Order on LT Connectivity and Net-metering, in regard to Tamil Nadu Solar Energy Policy 2012: http://teda.in/pdf/tnerc.pdf
  • 82. 82 Confederation of Indian Industry About Mahindra The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency. A USD 17.8 billion multinational group based in Mumbai, India, Mahindra provides employment opportunities to over 200,000 people in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheeler industries. In2015,Mahindra&MahindrawasrecognizedastheBestCompanyforCSRinIndiainastudybythe Economic Times. In 2014, Mahindra featured on the Forbes Global 2000, a comprehensive listing of the world’s largest, most powerful public companies, as measured by revenue, profit, assets and market value. The Mahindra Group also received the Financial Times ‘Boldness in Business’ Award in the ‘Emerging Markets’ category in 2013. Contacts Anirban Ghosh, Group - Chief Sustainability Office Naresh Patil, Head, Corporate Sustainability Cell Visit us at mahindra.com Our Social Media Channels twitter.com/MahindraRise facebook.com/MahindraRise
  • 83. 83Insights into Renewable Energy Adoption in India.
  • 84. 84 Confederation of Indian Industry About Treeni TreeniSustainabilitySolutionsPrivateLimitedisasustainabilityconsultingandtechnologysolutions companyfocusedondeliveringvaluethroughconsulting-led,low-cost,scalable,innovativesolutions to address organisational sustainability challenges. At Treeni’s core is the ReSustain platform that offerscomprehensiveperformancemanagementandanalyticsfocusedonenterprisesustainability. Founded in December 2015, and we are based out of Pune, Mumbai, Bangalore and Atlanta. Wespecializeinend-to-endsustainabilitystrategyanddatamanagementsolutions.Weunderstand the importance of collaboration and sound sustainability information in disclosures, performance and reporting. We believe technology will change the way sustainability is implemented on the ground, tracked and monitored and reported. Treeni, as an organisation, believes firmly in delivering high quality work with the goal of making our customers self-sufficient in the least amount of time possible. We have experience in transitioning organizations into a sustainability leadership position. Our consultants have over 30 years of collective experience in building sustainability strategy through a systematic approach focussed on stakeholder engagement. Our consultants are GRI trained and certified, GHG inventory quantifiers and have experience in systemising sustainability performance as per international frameworks for various sectors ranging from Renewables, Automobile, Telecom, ICT and Retail, to Manufacturing, Construction and the Food industry. Our expertise & services isn’t limited to client concerns & broad based sustainability issues but also extend to new age concepts like circularity, shared value, societal valuation etc. Contacts Dr. Sunita Purushottam, Head of Consulting Sharmistha Shome, Sr. Consultant Vinodh Valluri, Sr. Associate Consultant Visit us at treeni.com Our Social Media Channels linkedin.com/treeni
  • 85. 85Insights into Renewable Energy Adoption in India.
  • 86. 86 Confederation of Indian Industry About The Climate Group The Climate Group is an award-winning, international non-profit. We specialize in bold, catalytic and high-impact climate and energy initiatives with the world’s leading businesses and state and regional governments. Our work is at the forefront of ambitious climate action. Our vision is a world of prosperous ‘net-zero’ emission economies and thriving, sustainable societies. Our mission is to catalyse climate leadership in government and business to accelerate the shift to a prosperous and thriving ‘net-zero’ future for all. We do this by communicating to inform, convening to connect, and collaborating to scale and succeed. Founded in 2004, our offices are located in Beijing, Hong Kong, New Delhi, New York and London. The Climate Group is one of the founding members of We Mean Business – a coalition of organizations working with thousands of the world’s most influential businesses and investors. These businesses recognize that the transition to a low carbon economy is the only way to secure sustainable economic growth and prosperity for all. RE100 is an action of the We Mean Business coalition. Businesses must play their role, adopting climate plans such as going 100% renewable. The Climate Group is helping companies that want to achieve this with the RE100 program, which shows how it is possible to provide energy security, help manage fluctuating energy costs, improve reputation and deliver carbon emission reduction goals. Contacts Rashi Gupta, India Partnership Manager Shilpi Samantray, Project Officer
  • 87. 87Insights into Renewable Energy Adoption in India.
  • 88. The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the development of India, partnering industry, Government, and civil society, through advisory and consultative processes. CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a proactiveroleinIndia’sdevelopmentprocess.Foundedin1895,India’spremierbusinessassociation has over 8000 members, from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 200,000 enterprises from around 240 national and regional sectoral industry bodies. CII charts change by working closely with Government on policy issues, interfacing with thought leaders, and enhancing efficiency, competitiveness and business opportunities for industry through arangeofspecializedservicesandstrategicgloballinkages.Italsoprovidesaplatformforconsensus- building and networking on key issues. Extending its agenda beyond business, CII assists industry to identify and execute corporate citizenship programmes. Partnerships with civil society organizations carry forward corporate initiatives for integrated and inclusive development across diverse domains including affirmative action, healthcare, education, livelihood, diversity management, skill development, empowerment of women, and water, to name a few. The CII theme for 2016-17, Building National Competitiveness, emphasizes Industry’s role in partnering Government to accelerate competitiveness across sectors, with sustained global competitiveness as the goal. The focus is on six key enablers: Human Development; Corporate Integrity and Good Citizenship; Ease of Doing Business; Innovation and Technical Capability; Sustainability; and Integration with the World. With66offices,including9CentresofExcellence,inIndia,and9overseasofficesinAustralia,Bahrain, China, Egypt, France, Germany, Singapore, UK, and USA, as well as institutional partnerships with 320 counterpart organizations in 106 countries, CII serves as a reference point for Indian industry and the international business community. Confederation of Indian Industry (Western Region) 105, Kakad Chambers 132, Dr. Annie Besant Road, Worli, Mumbai – 400018 (India) • T: + 91 22 2493 1790 • F: 91 2224939463 / 24945831 E: ciiwr@cii.in | W: www.cii.in Follow us on : facebook.com/followcii twitter.com/followcii www.mycii.in Reach us via our Membership Helpline: 00-91-124-4592966 / 00-91-99104 46244 CII Helpline Toll free No: 1800-103-1244 Confederation of Indian Industry