Energy Needs of India and Opportunities for Solar, Alternate Energy and ICT Sector

Presentation at CMAI CES Press Conference By

NK Goyal, President CMAIChairman Emeritus, TEMA

Vice Chairman ITU APTChairman, ITPS Dubai

Member, Governing Board Telecom Equipment and Services Export Promotion Council

(Gov. of India)

Las Vegas, January 9th 2013 www.cmai.asia, www.cmaievents.com

CES, 2009 being inaugurated and ribbon cutting at Las Vegas on 8th January, 2009 by NK Goyal with Sir Howard Stringer, Chairman & CEO of Sony Corporation, Mr. Tom Hanks, the American movie star, Mr.Gary Yacoubian, Chairman CEA & President of Myer-Emco AudioVideo, Mr. Gary Saprio, Vice President of CEA, Ms. Qu., Presixdent, CECC China, Mr. Patrick Lavelle, President and CEO of Audiovox, Mr. Peter Lesser, President and CEO of X-10 (USA) Inc, Mr. Loyd Ivey, Chairman and CEO of MiTek Electronics and Communications, Mr. Jay McLellan, President and CEO of Home Automation, Inc. (HAI), Mr. Mike Mohr, President of Celluphone, Mr.Grant Russell, President of Kleen Concepts 

Advantage India GDP Crossed USD 1 Trillion Mark since 2007-08 4th largest Economy in world on Purchasing Power Parity basis Growing well in excess of 8% per annum for last three years. Current GDP Growth: 8.5% USD 380 Bn. Projected infrastructure investment in next 5 years Large Domestic Market:

560 Mn. consumers in 20-49 age group expected by 2015 5th largest consumer market by 2025 Increased disposable incomes & changing lifestyles

Human capital: Third largest pool of scientific & technical manpower

(2,00,000 Engineering Gradates Annually) Over 500 universities (20,000 colleges) Large English speaking population

India Story- Leaders Speak

Energy and environment are essential for sustainable development

From 1980 to 2008 total world primary energy demand grew by 66% and by 2030 projected to grow by 40%, average 1.5% per annum. Demand in Asia, projected to average 4.7% per year

Over 70% of the increased energy demand is from Developing Countries, led by China and India.

Maximum energy use grew in China and India as 146% and 91 % from 1990 to 2008: the Africa by 70%, Latin America by 66%, the USA by 20% and world overall grew by 39%

UN predicting world population growth from 6.6 billion in 2007 to 8.2 billion by 2030, demand for energy to increase substantially

About 20% of world’s energy is generated from coal and about 60% from oil and natural gas

Because of extensive use of fossil fuel such as coal, oil and natural gas, the harmful emissions of Green House Gasses such as Carbon Dioxide increases the GHG level and causes the Greenhouse Effect and eventually global warming

Energy Needs of World

CMAI Dedicated Initiatives for Energy Needs

CMAI has set up a Energy Fund of 500 Mn. USD with help from angel ventures, investors to promote energy development projects in India

This fund can be used for technology development, Research and Development, Innovations in energy sector and seed capital

CMAI is looking for partnerships, joint ventures, technology providers to empower renewable sector.

CMAI will provide one window service to investors and entrepreneurs in this behalf for project identification, studies, evaluation, financing follow up, Government approvals and marketing strategies,

India & CMAI lookingfor Technologies and Projects Technology has driven mankind in its progress since

ages in its growth path With the depleting fossil fuels and skyrocketing prices of

available natural resources, technologists worldwide have turned to innovative ideas to uninterruptedly power this growth

CMAI is looking for new innovative technologies for developing alternative energy, solar, wind, biomass, hydrogen cells, geothermal heat etc.

Also looking for energy efficient technologies. The current 15% capacity utilization factor for a solar unit needs improvement. This equates to around 6.2 MW of solar needed to cater to a 1 MW load

CMAI also looking for investors And manufacturing

India…the 1.2 Bn. People Country India is a Country with more than 1.2 Bn. people

accounting for more than 17% of world’s population.

Seventh largest Country in the world with total land area of 3,287,263 sq kilometers. It has a land frontier of 15,200 km and coastline of 7,517 km

India has 28 States and 7 Union Territories. It faces a formidable challenge in providing

adequate energy supplies to users at a reasonable cost

India Energy Gaps India needs an investment of at least $135 Bn. to provide universal

access of electricity to its population(International Energy Agency) India is world's fourth largest energy consumer after United States,

China and Russia. Perfect storm is brewing in the energy space as India will continue to experience insatiable energy demand growth over the next several years.

The total electricity demand of the Country during the year is 1,40,090 MW of which 1,25,234 MW is expected to be met, leaving a gap of 14,856 MW, (Central Electricity Authority)

The anticipated peak shortage in the Country would be 10.6 per cent

From current installed base of 170 GW, India will build up to 316 GW by 2020. In the same time-frame, the demand gap will grow from 19GW to 103GW, an increase of 5x!

Cont….India Energy Gaps Per capita average annual domestic electricity consumption

in India in 2009 was 96 kWh in rural areas and 288 kWh in urban areas, in contrast to the worldwide per capita annual average of 2600 kWh and 6200 kWh in the European Union

It is expected that with growth rate of 9% TPES (Total Primary Energy Supply) requirement for India in 2021- 22 will be around 1192 Mtoe ( Million Tonn Oil Equivalent) which will further increase to around 2043 Mtoe by the year 2031-32.

India will add between 600 GW to 1200 GW of additional new power generation capacity before 2050. This added new capacity is equivalent to the 740 GW of total power generation capacity of European Union (EU-27) in 2005 (International Energy Agency)

Electricity Sector in India An installed capacity of 210.936 GW (Nov 2012), the

world's fifth largest. Captive power plants generate an additional 31.5 GW.

Non Renewable Power Plants constitute 88.55% of the installed capacity and 11.45% of Renewable Capacity.

India generated 855 BU (855 000 MU i.e. 855 TWh) electricity during 2011-12 fiscal.

Coal-fired plants account for 56% of India's installed electricity capacity, compared to South Africa's 92%; China's 77%; and Australia's 76%. After coal, renewal hydropower accounts for 19%, renewable energy for 12% and natural gas for about 9%.

Over 300 Mn. Indian citizens had no access to electricity. Over one third of India's rural population lacked electricity, as did 6% of the urban population( December, 2011)

India’s Energy from Coal India ranks third amongst the coal producing

Countries in the world. Still India faces coal shortage of 23.96 MT or so, which is met through imports mainly by steel, power and cement sectors 

Coal reserves (84 Bn. tones) may last for about 200 years but cash content & environmental reasons are the major concerns. The exploitable coal concern may not last for more than 100 years

Despite its low per capita CO 2 emission of less than 1 ton, India contributed over 4% of world total CO 2 emission in 2000

Energy Gaps for Petroleum India lacks in petroleum resources which needs

precious foreign reserve. India hardly has around 0.4% of the world’s

proven reserves of crude oil. The known reserves of oil and natural gas may

last hardly for 18 and 26 years respectively at the current reserves to production ratio (2004).

In this scenario, all types of energy are welcome conventional, nuclear, and renewable.

Alternative Energy Paths The sunlight which reaches the earth’s surface can

provide 7,900 times more energy than we currently use. Each square meter of land is exposed to enough sunlight to produce 1,700 kWh of power every year.

Renewable Energy comes from natural resources such as Sunlight, Wind, Ocean, Rain, Tides, and Geothermal Heat, hydro power, hydrogen derived from renewable resources . These are naturally replenished

As of 2010, about 16% of global final energy consumption comes from renewable, with 10% coming from traditional biomass

New renewable (small hydro, modern biomass, wind, solar, geothermal, and biofuels) accounted for another 2.8% and are growing very rapidly

India Largest Potential for Alternate Energy India has one of the highest potentials for the effective

use of renewable energy India is the world’s fifth largest producer of wind power

after Denmark, Germany, Spain, and the USA India is world's most active players in renewable energy

utilization especially wind energy. As on December, 2011 India had an installed capacity of about 22.4 GW of renewal technologies-based electricity, exceeding the total installed electricity capacity in Austria by all technologies.

In spite of having low greenhouse gas emissions per capita, India has already become the 3th largest emitter in the world, according to the International Energy Association. That means immense international pressure to respond and develop Green Technologies

India’s Hunt for Alternate Energy India strategically located in South Asia, which

peninsula is a natural paradise ranging from Himalayas from North to the Seas of South

India has many perineal rivers from North to South, their energy is immense and it is non exhaustible

There is a significant potential in India for generation of power from renewable energy sources- small hydro, biomass, and solar energy

Ample opportunities for Alternate energy, Solar energy, Bio Mass energy and Innovative Smart Grid applications

Indian TelecomSector - the show stealer

Indian Telecom requires 14 Bn. units of energy and it ends up consuming around 2 Bn. liters of diesel. Energy requirement projected to reach 26 billion units by 2012 

Because of limited & uncertain grid power, Telecom Tower Companies are meeting 60% of their needs from diesel and only 40% from grid

TRAI, Indian Telecom Regulator proposed 50 per cent of all towers in the rural areas be powered by hybrid renewable sources by the year 2015. Total towers estimated 4,00,000.

Indian Tower Infrastructure Industry Carbon Footprint now stands at 5.3 Mn. Tones exclusively from the burning of Diesel.

 

India - the resurgence National Action Plan on Climate Change

announced on 30th June 2008 outlines Indian strategy to enable the Country to adapt climate change and enhance the ecological sustainability of India’s development path.

It provides for: Deployment of appropriate technologies for extensive

and accelerated adaptation, and mitigation of green house gases

Innovative market, regulatory and voluntary mechanisms to promote Sustainable Development

National Solar Mission, National Mission for a Green India

India Incentivizes Alternate Energy The Ministry of New and Renewable Energy

[MNRE] currently provides capital subsidy of 30 per cent at INR 81 per W and soft loans at 5 % interest across the Country.

Additionally, a capital subsidy of 90 % is provided for installation of off-grid solar systems for special category states of North Eastern India, Sikkim, J&K, Himachal Pradesh and Uttarakhand

Separate provision for innovative applications of solar systems whereby the pilot and demonstration projects can avail a Central Finance Assistance up to 100 per cent.

Cont.. India Incentivizes Alternate Energy Government Committed to support the Solar

Energy scale-up while also reducing solar costs. Over 1,600 MW of Power Purchase Agreements(PPAs) have already been signed

Renewable Purchase Obligation (RPO) is being implemented across the Country. Under this Distribution companies and captive consumers will have to source 5% to 15% over ten years of their energy from renewable sources. Within this, solar-specific RPO of 0.25%, slated to grow to 3% over the same time frame.

India Solar Energy Potential Globally investment in clean technology in 2011 was USD 260

Bn. India’s investment was $10.3 Bn. India gets 300 sunny days a year that can help generate about 5

trillion MW of energy Solar energy potential in India is estimated about 70GW by 2022

with Over $42 Bn. Investment. Ministry of New and Renewable Energy (MNRE) target to add 20

GW grid-tied Solar Power by 2022 and also addition of 2000 MW decentralized solar systems [off-grid] and an additional aspiration target of 2000 MW

India’s total solar installations is expected to grow from 54 MW in 2010 to more than 9,000 MW in 2016

Installed Solar Photovoltaic (PV) technology capacity 300 MW(2011 end). Increased by 170% to 800 MW by May 2012 clocking a growth rate of 170 per cent

Government Procurement of Electronics• Multi-Billion dollar investment plans in mega programs offer tremendous

opportunities for electronics manufacturing:

- Roll out of Broadband to over 600,000 villages – National Optical Fibre Network (NOFN) Plan approved

- National Knowledge Network with 100GB connectivity for over 20,000 colleges and research institutions

- National eGovernance Program spanning Central Ministries and all State Governments

- National Mission to provide Computers to over 100,000 schools

- Digitization of Television Broadcast Network by 2015 - significant opportunity for Set Top Box consumption and manufacturing

- Indian Unique Identification Project (UID) offers tremendous opportunities for technology and products (Biometrics, ID Cards, etc.). 

- Roll out of 3G, Wimax and 4G

Favorable Policy Framework

• A Triad of Policies to drive a National Agenda for ICTE - National Policy on Electronics - National Policy on Information Technology - National Telecom Policy

• Vision

To create a globally competitive electronics design and manufacturing (ESDM) industry to meet the Country's needs and serve the international market.

• Key Objectives

Turnover in ESDM sector of USD 400 Bn. by 2020 involving: - Investment of USD 100 Bn. - Employment to 28 Mn. people at various levels • Achieve global leadership in VLSI, chip design and other frontier

technical areas and achieve turnover of USD 55 Bn. by 2020. • Increase export in ESDM sector from USD 5.5 Bn. to USD 80 Bn. by

2020

India Telecom Opportunities• Second largest telecom penetration, world’s highest monthly additions

• 980 Mn. Subscribers: . Wireless: 950 Mn.

• Indian Telecom sector to witness huge investments to the tune of USD110 Bn. during 2012-2017

• Telecom Subscribers to cross 1.5 Bn. by 2015 and 5 Bn. by 2020.

• About 25 per cent (Approx. 300 Mn.) would be 3G/4G subscribers, requiring scaling up the infrastructure

• About USD 70 Bn. estimated investment in rolling out green field 2G, 3G/4G and WiMax networks, while USD 25 Bn. required to set up an extra 200,000 - odd telecom towers across the Country

• The total investment in the pan-India Broadband rollout expected to be USD 20 Bn. while another USD 20 Bn. will be invested in augmenting the

transmission network

National Optical Fiber Network & Broadband Eco-system• Project approved on 25.10.2011 to connect 2,50,000 Gram Panchayats (GPs) through OFC

• Project to be implemented by NOFN-SPV Bharat Broadband Network Ltd • Envisaged as a Centre-State joint effort.

• Govt. of India to fund the project through the Universal Service Obligation Fund (USOF) Rs. 20,000 Cr.($4Bn.)

• State Govts. are expected to contribute by way of not levying any RoW charges (including reinstatement charges)

• At least 100Mbps is available at each GP

• E-health, e-education, e-governance & e-commerce applications & Video conferencing facilities can be provided

• NOFN Project implementation time - 24 months (by 31.10.2013)

About CMAI CMAI prime Integrated Association of India representing all

verticals of ICE, telecom sector of India in India having more than 48,500 members and 54 MOUs with International organizations with branch offices in Japan, Korea, Singapore, Taiwan, China

It offers one window service for information dissemination, guidance on setting up businesses in India

It connects to Industries, Government, Trade and Business It is involved in policy formulations with Government and

other stake holders for Technology Innovations, Indigenous manufacturing

It is developing scientific knowledge and practical means for protecting human ecology and environment from the harmful effects of environmental hazards like e waste, radiation etc.

It assists manufacturers to maximize competitiveness in the domestic and international markets.

It also offers consultancy services on turn key basis through its member companies

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Thanks get Connected nkgoyals@yahoo.co.in Ph No. - +91 98111 29879 www.cmai.asia