1'Promoters

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WELCOME CDM Bazaar 2009 Presentation on
Renewable Energy for Power generation CDM
Benefits 28 April, 2009 Presented by A.Mohan
Reddy Zenith Energy, Hyderabad
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Status of power generation

• Present installed capacity is 147 965 of which RE
  component is mere 13 242 MWs or less than 9 of
  installed capacity (As on 31.3.2009).
• Out of RE component of 13242 MWs, wind
  composition alone is 9344 MWs. Therefore in terms
  of actual generation the contribution of RE may
  be even less than 4.
• Per capita electricity consumption now is
  estimated at 665 units and is likely to increase
  further.
• Demand for electricity continues to out strip
  supply resulting in energy and peaking shortages.
  
• There is a plan to add a lakh MWs in the 11th
  plan period to meet the power demand.

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RE sources for power generation

• More fossil fuel based thermal power plants are
  being proposed with capacities ranging up to
  4000 MWs.
• Establishment of these plants involve several
  issues.
• There is scope for meeting significant portion
  of the power demand from RE
• sources.
• Use of RE sources for power generation has many
  inherent benefits-
• Short gestation period, Creation of
  employment opportunities in rural
• areas, Environment protection, Improved
  social equity, Conserve the
• natural fossil fuels for more number of
  years, Energy supply security,
• Distributed power generation.
• Therefore RE should be energies of the future.
• Some States for example Maharashtra have taken
  proactive steps for development of renewables.

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RE Sources for power generation

• Biomass,
• Co-generation in sugar mills,
• Small Hydro,
• Wind,
• Solar etc.

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Potential for power generation from RE

• Thus there is a scope for power generation to an
  extent of over 66000 MWs besides solar.
• Exploring the Renewable energy potential will see
  flow of investments, employment opportunities in
  rural areas besides meeting power demand with an
  environment benign.

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RE - Solar

• India is potentially one of the largest markets
  for solar energy in the world with vast
  geographical area and average 300 days of
  sunshine a year.
• The estimated potential of power generation
  through solar photovoltaic system is 20 MW/Sq.Km
  in India.
• India had achieved only 2.12 MW of grid connected
  solar generation capacity last year.
• MNRE is aiming to boost annual PV production to
  at least 1000 MW per year by 2017.
• Generation Based Incentives (GBI) scheme
  announced by various state governments.

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Investment potential in RE Sector

• Assuming a capacity addition of power by
  exploring only 70 of present potential, will
  mean an investment of about 50 billion.
• This estimate is besides the investment potential
  in solar

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Investment potential in RE Sector

• The flow of such large investment would translate
  into creation of employment and other
  infrastructure facilities in the rural segment.
• Apart from employment during construction stage,
  there is scope for creation of 1.67 million
  direct and indirect employment opportunities.

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Scope of CDM for RE Sources

• Renewable Energy Projects have the capability to
  mitigate global GHG emissions, hence are prima
  facie candidates for CDM
• Apart from mitigating GHG emission, one of the
  objectives of the CDM is to promote sustainable
  development. Renewable energy projects offer new
  and additional opportunities for the sustainable
  development than any other technologies.
• India being blessed with huge resources of
  renewable energy, has high potential for CDM
  projects from renewable energy.

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Registered Projects under RE Sector

• Experience to date suggests that non-Annex I
  countries are primarily focusing on development
  of RE projects for CDM.
• Out of total 1114 projects which are accorded
  host country approval by Indian DNA, 56 are
  renewable energy projects.
• Out of 420 CDM registered projects from India,
  around 261 projects are from renewable energy
  sector.
• There is still large scope for CDM development in
  Indian Renewable Energy sector.

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Success Stories Hydro
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Success Stories Wind
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Success Stories Biomass
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Issues for CDM development in RE Sector

• The success stories indicate the existence of
  barriers not under the control of the developer
• DOEs recognize as a un-return rule financial
  analysis based additionality
• RE Projects face barriers that may not be
  quantifiable hydrology, geology, flash floods,
  cost escalation, price uncertainty etc.,
• These are real barriers that cannot be discounted
  
• Issue of benchmark
• Serious consideration of CDM
• Retrospective effect for changes in rules and
  procedures

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Conclusions

• RE for power generation is an ideal solution
• To meet energy demand with
  social/environmental integrity
• Ideal for distributed power
  generation
• Prevent depletion of fossil fuel
• Positive impact on GHG emissions
• Large potential for development and investment
  
• All CDM project shall aim to obtain CDM benefits
• With pragmatic approach from the regulator and
  careful planning from the developer many
  otherwise unviable RE projects could see the
  light of the day with CDM benefits

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Thank You
Zenith Energy Services (P) Limited 10-5-6/B, My
Home Plaza, Masabtank, Hyderabad-28 E-mail
zenith_at_zenithenergy.com www.zenithenergy.com