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1、Global champions for advancing renewable energy innovation and manufacturing 4th International Conference&Exhibition on AatmaNirbhar Bharat for Clean Energy TransitionEnter Enter Somesh KumarPartner&Leader Power&UtilitiesGPSEY IndiaShuboday GantaDirector Power&UtilitiesStrategy and Transactions(SaT)

2、EY IndiaSaiteja JupudiSenior AssociateStrategy and Transactions(SaT)EY IndiaChandrajit BanerjeeDirector General Confederation of Indian IndustryWe acknowledge contributions fromVikram D ChoudhuryAssociate Director-Brand,Market&CommunicationsEY IndiaShweta SharmaAssociate-Brand,Market&CommunicationsE

3、Y IndiaWe acknowledge contributions on edit and design fromAshish George Kuttickal Associate Director-Brand,Market&CommunicationsEY IndiaJasmeet Joshi Manager-Brand,Marketing and CommunicationsEY IndiaGlobal champions for advancing renewable energy innovation and manufacturing 412345678ForewordCIIAa

4、tmaNirbharta in renewable energy technology supply chains is vital to advance the security,sustainability and affordability of Indias energy transition goals.The strategy for self-reliance must foster R&D in clean energy technologies to develop indigenous solutions,encourage collaborations between g

5、overnment,industry,and academic institutions to foster innovation,and cultivate a stable and predictable policy environment that encourages investments in clean energy.It must develop transportation and logistics infrastructure to support supply chains,promote export-oriented incentives for sustaine

6、d access to global markets,and strengthen critical minerals and raw material supply chains.Promoting recycling to ensure a circular economy for steady supply of necessary raw materials,building a skilled workforce in clean energy sectors and creating financial instruments to de-risk investments will

7、 be critical.This report includes valuable insights from Industry members in the context of Indias energy transition investment opportunities and evolving policy ecosystem to advance renewable energy innovation and manufacturing.The Energy Transition Investment Monitor is a collaborative platform fo

8、r investors to identify and track energy transition investments from concept to commissioning.We appreciate the support from EY,our knowledge partner for this conference,and the valuable insights from Government and Industry stakeholders in shaping this report.Chandrajit BanerjeeDirector GeneralConf

9、ederation of Indian IndustryMr.Somesh Kumar Partner&Leader(Power&Utility),EY IndiaEYIndias energy transition is gaining momentum with potential to emerge as a global champion for advancing renewable energy innovation and manufacturing.The ongoing transition to renewable energy sources like wind,sola

10、r,hydro,biofuels etc.requires a vast array of technologies and equipment to produce,store,transform and deliver energy for various end-use applications.These technologies are composed of innovative materials and components,some of which are currently sourced from specific regions subject to vulnerab

11、ilities.Building local manufacturing capacities can help reduce dependence on imports and build supply chain resilience for India and rest of the world.Most importantly,AatmaNirbhar innovation and manufacturing will help bridge the sustainability-affordability gap for mass adoption of renewable ener

12、gy technologies.This report sheds light on the demand and supply chain dynamics of renewable energy technologies,government initiatives and policy interventions for building further momentum.The Energy Transition Investment Monitor is a collaborative platform for global investors to identify and tra

13、ck energy transition investments from concept to commissioning.We appreciate the valuable insights and cooperation from CII,Government and Industry stakeholders in shaping this report.Somesh KumarPartner&Leader Power&UtilitiesGPSEY IndiaGlobal champions for advancing renewable energy innovation and

14、manufacturing 612345678CONTENTSExecutive summary Section 1Indias energy transition journey and supply chain dynamicsSection 2Building supply chain resilience for solar PV cells,modules and ancillaries Section 3Strengthening the wind turbine manufacturing ecosystem in India for exportsSection 4Domest

15、ic value addition in advanced chemistry cell(ACC)battery manufacturingSection 5Green hydrogen and electrolyser manufacturing ecosystem for domestic production and exportsSection 6Corporate renewable energy procurement market in IndiaSection 7Biofuels and circular economy pathways for energy security

16、Section 8ACCAdvanced Chemistry CellALMMApproved List of Module ManufacturersAPACAsia PacificBCDBasic Customs DutyBESSBattery Energy Storage SystemsBPLBelow Poverty LineBUBillion kWhC&ICommercial&IndustrialCAGRCompounded Annual Growth RateCEACentral Electricity AuthorityDISCOMDistribution CompanyEEZE

17、xclusive Economic ZoneEIAEnvironment Impact AssessmentEPSElectric Power SurveyESSEnergy Storage SystemEUEuropean UnionFCEVFuel Cell Electric VehicleFDIForeign Direct InvestmentFYFinancial YearGDPGross Domestic ProductGSTGoods&Services TaxGUVNLGujarat Urja Vikas Nigam LimitedGWGiga WattGWECGlobal Win

18、d Energy Council IEAInternational Energy AgencyIIFCLIndia Infrastructure Finance Corporation Limited INRIndian RupeeIPCCIntergovernmental Panel on Climate Change IRAInflation Reduction Act IREDAIndian Renewable Energy Development AgencyISTSInter State Transmission SystemITCInvestment Tax CreditKREDL

19、Karnataka Renewable Energy Development LimitedkWhKilo Watt HourLATAMLatin AmericaLCOELevelized Cost of Electricity LIBLithium Ion BatteryMEMiddle East MNREMinistry of New&Renewable EnergyMTMillion TonsMtoeMillion Ton Oil EquivalentMWMega WattMWhMega Watt hourNDCNationally Determined Contributions NI

20、WENational Institute of Wind Energy NTPCNational Thermal Power Corporation OEMOriginal Equipment ManufacturerPEMProton Exchange MembranePFCPower Finance CorporationPLIProduction Linked IncentivePSUPublic Sector UndertakingPTCProduction Tax Credit RECRural Electrification CorporationRPORenewable Powe

21、r Purchase ObligationSDSSustainable Development Scenario SECISolar Energy Corporation of IndiaSTEPSStated Policies ScenarioT&DTransmission&DistributionUNEPUnited Nations Environment ProgramVGFViability Gap FundingAcronymsExecutive summaryGlobal champions for advancing renewable energy innovation and

22、 manufacturing 912345678During the 26th session of the Conference of the Parties(COP26)to the United Nations Framework Convention on Climate Change(UNFCCC),India expressed its commitment to intensify climate action by presenting five key strategic elements,referred to as the Panchamrit,.Indias clima

23、te actions,despite having low GHG per capita,will be an example for the world to raise their climate ambitions.The principal driver and enabler for Indias net zero emissions goal is reducing dependence on imports and building supply chain resilience.The government has put policies in place to encour

24、age the demand and supply of energy transition technologies in various sectors.The ecosystem for government support to global investors in Indias energy transition markets and domestic supply chains include but not limited to demand side incentives,production linked incentives(PLI),purchase obligati

25、ons and bidding trajectory for competitive procurement,de-risking instruments,offtake guarantees and minimum pricing,demand aggregation and centralized procurement,domestic value addition and content regulations,green energy open access rules,tax waivers and exemptions,single window systems,land poo

26、ling and allocation for projects,infrastructure development,harmonization with international standards,CAPEX subsidies,concessional financing,public funding for skilling,R&D and technological advancements,labor market reforms,etc.The total pipeline for domestic energy transition investments includin

27、g supply chain innovation and manufacturing,is about US$240 billion in the present scenario.India has the potential to play a pivotal role in achieving global supply-chain resilience for renewable energy technologies and critical components.Over the past few years,India has increasingly positioned i

28、tself as an alternative global hub for renewable energy innovation,manufacturing,services and trade for the world.For India to realize its full potential in achieving global supply-chain resilience,it must address demand side challenges including affordability,strive for maximum domestic value addit

29、ion and improve competitiveness of supply chains for serving global markets,fix inconsistent policy and regulatory environments and accelerate infrastructure building.With appropriate measures,India can indeed serve as a cornerstone for a more resilient global supply chain.Indias energy transition h

30、olds potential to become a global champion for advancing renewable energy innovation and manufacturingPanchamrit of Indias climate action500 GW of non-fossil energy capacity by 203050%of energy requirement from renewable sources by 2030One billion tons of projected carbon emissions reduction by 2030

31、45%reduction in carbon intensity of the economy by 2030Net zero emissions by 2070Sources:EY analysisGlobal champions for advancing renewable energy innovation and manufacturing 1012345678198Projects16.0 GWof pipeline capacityINR 22,552crore equityINR 52,622crore debt625 MT avoided CO2emissions275pro

32、jects97 GWof pipeline capacityINR 1.61lakh crore equityINR 3.75lakh crore debt5,220 MT avoided CO2emissions51Projects10 GW/Yearof electrolyser manufacturing capacityINR 7.96 Lakhcrore investment10.17 MT Green H2/Ammonia production per year72projects243 GWhof pipeline capacityINR 87,785crore equityIN

33、R 2.04lakh crore debt2,106 MT avoided CO2emissionsEnergy transition investment pipeline and enablers for advancing supply chain resilienceUtility scale RE power generationProject pipeline and impactEnergy storage systemsProject pipeline and impactTheme:Distributed RE and corporate open access Enable

34、rs Harmonized adoption of green energy open access rules at state level Long-term predictability and consistency of open access charges Compliance and enforcement of RPO and ESO on obligated entities Demand aggregation services for RE RTC supply to OA consumers Predictable grid banking regulations f

35、or OA consumersProject pipeline and impactTheme:Green hydrogen and Electrolyser manufacturingEnablers National program to incentivize/compensate state utilities for implementing annual grid banking facility for captive open access RE power supply Blended innovative low-cost financing instruments Pro

36、mote export-oriented incentives Setting up shared common desalination facilities in emerging green hydrogen clusters Boost availability of skilled workers and professionalsProject pipeline and impactSources:EY analysisGlobal champions for advancing renewable energy innovation and manufacturing 11123

37、4567827Projects96,700 MWh/YearProduction CapacityINR 87,400crore investment 60Compressed Biogas projects 640+Tons/DayProduction CapacityINR 4,464crore investment 217Ethanol production projects28,500+Kilo Litres/DayProduction CapacityINR 36,081crore investment Sources:EY analysisTheme:ACC Battery man

38、ufacturingEnablers Gradually increase domestic content requirements for incentives in mobility and stationary grid applications with a time-bound mandate.Expedite mining and exploration activities of critical minerals used in ACC batteries Uniform GST 5%application on all ACC batteries used in mobil

39、ity and grid storage applications with renewable energy Production linked incentives for active material extraction from recycled ACC batteries Boost availability of skilled workers and professionalsProject pipeline and impactTheme:Bio-fuelsEnablers Promote biomass aggregation and storage Blending m

40、andates Creation of a market ecosystem for bio manure and promotion of FOM Production linked incentives Establish feedstock pricing mechanism Project pipeline and impactGlobal champions for advancing renewable energy innovation and manufacturing 121234567833Projects88 GW/YearSolar module pipeline ca

41、pacity68 GW/YearSolar cellpipeline capacity41 GW/yearWafer pipeline capacityINR 1.24lakh crore investmentTheme:Solar PV module and wind turbine manufacturingEnablers Production linked incentives for solar PV module and system ancillaries manufacturing Policy consistency and predictability for ALMM i

42、mplementation Blended innovative low-cost financing instruments Promote export-oriented incentives Boost availability of skilled professionals Uniform GST 5%applicable on all renewable energy manufacturing equipment,raw materials and ancillaries Access to round the clock affordable electricity Promo

43、te raw material supply chain industry Production linked incentives for wind turbine grade ancillary manufacturers and rare earth mineral processing Strengthening transportation and logistics for wind turbine installations Setting up shared testing facilities for wind turbine components in PPP modePr

44、oject pipeline and impactSources:EY analysisGlobal champions for advancing renewable energy innovation and manufacturing 1312345678EY is collaborating with the Confederation of Indian Industry(CII)to enable global investors to identify and track energy transition investments in the pipeline(announce

45、d,under bidding,permitting,construction,etc.)from concept to commissioning.The platform tracks over 930 energy transition investment opportunities in the pipeline with tremendous potential for economic development,jobs and ultimately contributing towards Indias longterm climate action goals and ener

46、gy security objectives.Project level information was gathered from a mix of primary and secondary research tools including a wide variety of sources in the public domain,consultations with project developers,OEMs,investors etc.(on a sample basis)with the support from a leading market research agency

47、.Proprietary databases were also leveraged to identify the long list of infrastructure projects in the pipeline.The project pipeline identified have the desired potential to create social,environmental and economic value in the immediate future.Energy Transition Investment MonitorThematic coverage o

48、f low-carbon investment opportunities in pipelineTracks about 930projects in the pipelineRenewable power generationEnergystorageGreenhydrogen and derivativesACC battery manufacturingSolar PV module manufacturingSources:EY analysisH2Bio-fuelsA collaborative platform for global investors to identify a

49、nd track energy transition investments from concept to commissioning The project pipeline identified in this platform and analyzed in the report represents just a fraction of the overall low carbon infrastructure investment under development in India.The project pipeline information was put together

50、 from our assessment of their status of development until March 2023.This is only a fraction of all low carbon infrastructure projects under development in India.It is important to note that the project pipeline identified in this report is illustrative and should not be read as a full policy/commer

51、cial endorsement.Energy Transition Investment MonitorLimitationsIndias energy transition journey and supply chain dynamicsGlobal champions for advancing renewable energy innovation and manufacturing 1512345678As per Energy Statistics India 2023,clean energy sources(Hydro,Nuclear and other RES)witnes

52、sed the highest growth(6.83%CAGR)in commercial energy production between 2012-13 and 2021-22.The total commercial energy production witnessed a 2.62%growth(CAGR)during this period.Coal energy production has witnessed only a 3.8%CAGR growth during the period and accounted for 73%of total commercial e

53、nergy production in 2021-22.Clean energy sources(Hydro,Nuclear and other RES)contributed to 8.24%of total commercial energy production in 2021-22.Renewable energy sources such as solar,wind and other sources(excluding Hydro and Nuclear)accounted for 11.51%of total commercial energy production in 202

54、1-22.Indias commercial energy production mix reflects a high reliance on coal and an increasing share of clean,sustainable,and renewable energy sources.Clean energy sources witnessed the highest growth(CAGR)of commercial energy production in the last decade-2,000 4,000 6,000 8,000 10,000 12,000 14,0

55、00 16,000 18,000201320142015201620172018201920202021 2022(p)All India commercial energy production in Peta Joules CoalLigniteCrude OilNatural GasElectricitySource:Energy Statistics India,MOSPI-202373%3%8%8%8%Share of commercial energy production in FY-22(P)CoalLigniteCrude OilNatural GasElectricityG

56、lobal champions for advancing renewable energy innovation and manufacturing 1612345678Source:IEA,2021,Energy Statistics India,MOSPI-20231.221.261.191.041.020.950.810.600.700.800.901.001.101.201.301990199520002005201020152020All India GHG Emission Intensity trends(CO2/USD)The declining energy and emi

57、ssions intensity signals a growing focus on shifting towards cleaner energy sources500 GW of non-fossil energy capacity by 203050%of energy requirement from renewable sources by 2030Reduce CO2e emissions by 1 billion tons till 2030Reduce carbon intensity of economy to less than 45%by 2030Achieve eco

58、nomy wide net zero emissions by 20700.2800.2680.2650.2520.2400.2370.2340.2250.2220.2250.2000.2200.2400.2600.280FY-13FY-14FY-15FY-16FY-17FY-18FY-19FY-20FY-21FY-22(P)All India Energy Intensity trends(Mega Joules/INR)As per the UN Emissions Gap Report 2022,Indias per capita emissions at 2.4 tCO2e are f

59、ar below the world average of 6.3 tCO2e.The decreasing trend of energy and emissions intensity is a testament to the growing emphasis on clean energy transition for commercial production and end-use in all sectors of the economy.The Intergovernmental Panel on Climate Change(IPCC)estimated that start

60、ing in 2020,the total carbon budget remaining,for a 50%chance of temperature rise to remain below 1.5 degrees Celsius,as 500 gigatons CO2(IPCC 2022).At the current annual average emissionsrate of 50 GT observed during 2010-19(IPCC 2022),this budget will be exhausted before 2030.Global emissions must

61、 be reduced by 45%by 2030 and decline drastically thereafter(UNEP 2022).Globally,88 parties,including the major emitters,have adopted net zero targets,covering approximately 79%of global GHG emissions(UNEP 2022).Emerging economies globally will witness rising energy demand,and 88%of the overall glob

62、al growth in electricity demand between 2019 and 2040 is expected to come from these economies as per CEEW.The challenge to meet Indias rising energy demand through clean energy transition pathways that ensure reliability,affordability,sustainability,and security of energy supply is unprecedented.Gi

63、ven that the clean energy transition is expected to be driven by multiple technology pathways including solar,wind,hydro,nuclear,energy storage,green hydrogen,biogas,and ethanol,self-reliance(AatmaNirbharta)in manufacturing and innovation of clean energy technologies,equipment,and raw materials supp

64、ly chain is critical for achieving the above four pillars of future energy ecosystem.Most importantly,the government of Indias commitment to reduce import reliance on fossil fuel commodities along with the five-fold(PANCHAMRIT)climate strategy(see below)committed in COP26 will ultimately hinge on Aa

65、tmaNirbharta of manufacturing and innovation for critical RE technologies and raw materials.Global champions for advancing renewable energy innovation and manufacturing 1712345678211.8524.826.7846.8125.15Coal+LigniteGasNuclearHydroRES73%1%3%10%13%Coal+LigniteGasNuclearHydroRESSource:CEA Power Sector

66、 Dashboard March 2023,Optimal Energy Mix Report,CEA 202322.70%8.50%0.40%8.70%3.80%1.40%54.50%SolarWindOther REHydroNuclearGasCoal54 5 19 293 100 15 15 252 25 HydroSmall HydroPSPSolar PVWindBiomassNuclearCoal+LigniteGasPower sector will continue to lead the energy transition through 2030,with 64%shar

67、e of non-fossil sources in all India installed capacity and 44%share in gross power generationGross generation in FY-23:1624 billion unitsInstalled capacity as of March-2023 in GW 415 GWProjected source wise generation in FY-30Projected installed capacity in GW in FY-30 777 GWGlobal champions for ad

68、vancing renewable energy innovation and manufacturing 181234567828,2963,6511331,1011111,2601,8813722,51146Indias ambitions and goals to expand renewable power generation,energy storage,electrification of hard-to-abate sectors,green hydrogen/ammonia,ethanol,biogas,etc.,will continue to be driven larg

69、ely by private sector investments in the foreseeable future.More importantly,private sector investments towards manufacturing and innovation of critical RE technologies,equipment,and raw materials supply chain will determine the speed and scale of Indias energy transition.Indias robust domestic dema

70、nd outlook for RE technologies,policy commitments,and targets along with growing consensus among G20 leaders for building resilient supply chains,serves the best interests of private sector companies,both domestic and international,to collaborate,innovate and make in India for the world.Source:CEA75

71、1,237260Source:EY Analysis64,612 40,682 33,503 26,323 19,144 55,040 -20,000 40,000 60,000 80,000KarnatakaGujaratRajasthanAndhra PradeshMaharashtraOthersPrivate sector investment towards innovation,manufacturing and supply chain of critical RE technologies and raw materials will further unlock energy

72、 transition potentialTop states in energy transition investment(US$million)Total pipeline of investments(US$million)Global champions for advancing renewable energy innovation and manufacturing 1912345678Demand for solar and wind energy generation through 2030Source:EY analysis from CEA optimal gener

73、ation mix 2023Demand for solar PV systems through 2030(MW)Demand for wind power generation through 2030(MW)Installed capacity(March 2023)Capacity under construction/bid outAdditional capacity required through 2030Optimum capacity by 2030Installed capacity(March 2023)Capacity under construction/bid o

74、utAdditional capacity required through 2030Optimum capacity by 2030Global champions for advancing renewable energy innovation and manufacturing 2012345678Source:EY analysis from CEA optimal generation mix 2023Demand for BESS technologies through 2030Announced/Under construction/Bid outAdditional cap

75、acity addition through 2030Optimum Capacity by 2030Demand for battery energy storage systems through 2030(MW)Demand for battery energy storage systems through 2030(MWh)Announced/Under construction/Bid outAdditional capacity addition through 2030Optimum Capacity by 2030Building supply chain resilienc

76、e for solar PV cells,modules and ancillariesGlobal champions for advancing renewable energy innovation and manufacturing 2212345678Source:EY Research,CEA Power Sector Dashboard,CEA Optimal Energy Mix 2030 reportCrystalline silicon PV system demand and value chain for domestic value additionDemand fo

77、r solar PV systems through 2030(MW)Wafer-based crystalline silicon(c-Si)currently contributes to over 95%of the market.According to CEEW,the production of polysilicon and wafers is a technically complex process that demands reliable and continuous electricity.Additionally,these manufacturing units a

78、re large and require substantial capital for set-up and operation.Hence,the cost of capital becomes an essential factor for competitiveness,resulting in significant concentration within the industry.The next step is solar cell manufacturing,which encompasses various types of solar cells with varying

79、 efficiencies.Solar grade Mg-SiQuartz,low ash coal,limestone,pre baked electrodes etc.Ingot pulling and wafer slicingDoping material,argon gas,diamond wire,etc.Cell manufacturingNitrogen,oxygen,ammonia and silane,silver and aluminum paste,etc.Module assemblingBacksheet,encapsulant,ribbons,solar glas

80、s,AL-frame,junction boxPV system installationInverter,string combiner box,cables,transformers,MMSSolar PV module value chain and main consumablesInstalled capacity(March 2023)Capacity under construction/bid outAdditional capacity required through 2030Optimum capacity by 2030Global champions for adva

81、ncing renewable energy innovation and manufacturing 2312345678Source:Developing Global Resilient Clean Energy Supply Chains,CEEW 2023Bill of materials in the production of crystalline silicon PV cells and modulesA typical crystalline silicon(c-Si)PV panel,which is currently the dominant technology,w

82、ith over 95%of the global market,comprises approximately 76%glass(panel surface),10%polymer(encapsulant and back-sheet foil),8%aluminum(frame),5%silicon(solar cells),1%copper(inter-connectors),and less than 0.1%silver(contact lines)and other metals(e.g.,tin and lead).Thin film technologies,such as c

83、opperindiumgallium(di)selenide(CIGS)and cadmium telluride(CdTe),constitute the remaining portion of the market.These technologies require less material overall compared to crystalline silicon.For CdTe panels,the composition is approximately 96%to 97%glass,3%to 4%polymer,and less than 1%semiconductor

84、 materials(CdTe)and other metals(e.g.,nickel,zinc,tin).CIGS contains about 88%to 89%glass,7%aluminum,4%polymer,and less than 1%semi-conductor material(indium,gallium,selenium)and other metals(e.g.,copper).72%13%3%8%4%0.07%0.05%0.10%0.0022GlassAluminiumCopperPolymerSiliconSilverTinZincComposition of

85、materials in crystalline silicon PV modulesGlobal champions for advancing renewable energy innovation and manufacturing 2412345678Solar PV supply chainSilverCopperIndiumGalliumSeleniumSilicaCadmiumTelluriumAluminiumCopperSilver PasteCIGS PowderGlassCdS PowderCdTe PowderC-Si cell manufacturingCIGS pa

86、nel ManufacturingCdTe panel manufacturingFramePV Module(c-Si,CIGS or CdTe)BOSPV system assemblyRooftop installationUtility scale installationRecycling or disposalSource:Achieving the paris climate agreement goals,Springer publication,2019Global champions for advancing renewable energy innovation and

87、 manufacturing 2512345678Source:Developing Global Resilient Clean Energy Supply Chains,CEEW 2023Global capacity for solar PV manufacturing and supply chainAccording to CEEW,the global manufacturing capacity of solar PV modules and other raw materials has significantly increased over the last decade.

88、At the same time,growth is concentrated.Many countries have taken initiatives to scale up domestic solar manufacturing,and shares of other regions may increase in the coming decade.Global polysilicon,wafer,cell,and module manufacturing capacities were 294 GW,414 GW,441 GW,and 482 GW,respectively.Pro

89、duction share of various PV module technologies0%10%20%30%40%50%60%70%80%90%100%20212023202520282031Mono-p type PERCMono n type TopconMono n type HJTMono p type TopconTandemOthersAccording to CEEW,in 2021,mono p-type PERC accounted for over 80%of the market share of solar PV modules.However,emerging

90、 technologies,such as hetero junction technology(HJT),TOPCon,and interdigitated back contact(IBC),are expected to become more cost-competitive by the end of the decade.These emerging cell types offer higher efficiencies but come with greater cost and complexity.By 2030,the share of mono p-type PERC

91、is expected to decrease,with new technologies like TOPCon and HJT occupying more than 50%of the market share.Regional Share of Global Solar PV production0%20%40%60%80%100%PolysiliconWaferCellModuleChinaEuropeNorth AmericaSouth KoreaJapanIndiaSouth East AsiaRest of the WorldGlobal champions for advan

92、cing renewable energy innovation and manufacturing 2612345678India trade scenario in solar PV cells and ModulesSolar Cells(Imports-INR crore)HS Code:85414011Solar cells(Exports-INR crore.)HS Code:85414011-5,000 10,000 15,000 20,000 25,000 30,000FY18FY19FY20FY21FY22ChinaMalaysiaThailandVietnam-200 40

93、0 600 800 1,000 1,200 1,400 1,600FY18FY19FY20FY21FY22AfghanistanCanadaDenmarkEcuadorHaitiSolar Modules(Imports in FY22-INR crore)HS Code:85414012Solar modules(Exports-INR crore)HS Code:85414012-5,000 10,000 15,000 20,000 25,000FY22ChinaMalaysiaSingaporeHong KongOthers02004006008001000120014001600180

94、0FY-22FY-21Source:www.dgft.gov.inGlobal champions for advancing renewable energy innovation and manufacturing 2712345678Source:IEEFA&JMK Research,2023Indias PV module manufacturing capacity surpassed 38 GW in 2023 and poised to exceed 110 GW by 2026As of March 2022,Indias cumulative PV module manufa

95、cturing(nameplate)capacity was approximately 18 GW.However,by March 2023,this capacity had surged to around 38 GW,representing a remarkable addition of over 100%.Furthermore,there is a pipeline of approximately 90 GW of PV cell and module capacity announced,in permitting and construction stages.In t

96、erms of PV cell manufacturing,the cumulative capacity increased from about 4.3 GW in March 2022 to around 6.6 GW by March 2023.Additionally,there is a pipeline of approximately 68 GW of cell capacity under various stages of implementation.There are currently few players in ingot-wafer manufacturing,

97、and no presence of polysilicon manufacturing in India,due to its complexity,lack of technology/IPR,raw materials,and high capital expenditure.Over the past decade,India has heavily relied on China for its solar PV modules,leading to an increased risk in the supply chain.In FY-22 alone,India imported

98、 solar modules valued at INR 22,931 crores,along with solar cells worth INR 8,013 crore,primarily from China.To address this dependency,the Indian government took significant measures.A Basic Custom Duty(BCD)was introduced to make domestically manufactured products more competitive.Additionally,the

99、Ministry of New and Renewable Energy mandated manufacturers to empanel their models and manufacturing units under the Approved List of Models and Manufacturers(ALMM)for availing policy incentives.This initiative aimed to streamline and regulate the quality and performance standards of solar modules

100、in the market,further encouraging domestic production.These initiatives helped boost domestic production of solar PV cells and modules and reduce dependency on imports.India Solar PV manufacturing capacity,GWBy 2026,Indias capacity for critical upstream components in the solar PV value chain,such as

101、 polysilicon and ingot/wafer,is expected to reach 38 GW and 56 GW,respectively.PV cell and module capacity is likely to exceed 59 GW and 110 GW,respectively.This expansion is driven by factors such as the Production Linked Incentive(PLI)scheme for integrated solar PV module manufacturing and the sig

102、nificant market potential both within India and globally.However,the availability of critical raw materials,technology development/acquisition,infrastructure and skilling for complex production processes plays a crucial role in this expansion.For instance,in the manufacturing of metallurgical silica

103、,which is an essential component in the production of solar modules,India relies on the import of raw materials such as low ash coal and charcoal.By strengthening the upstream supply chain,India seeks to build a robust and integrated solar PV manufacturing ecosystem sector to meet both the growing d

104、omestic and international demand.As India strives for self-reliance,it should prioritize building competitive products for the global markets,expanding its presence,positioning itself as a credible alternative for markets looking to diversify supply chains and build resilience towards global disrupt

105、ions.The government should ensure a stable and predictable policy outlook for sustained investor confidence and growth.0204060801001202020202220232026(P)ModuleCellIngotPolysiliconGlobal champions for advancing renewable energy innovation and manufacturing 2812345678In April 2021,the Government of In

106、dia launched its first Production Linked Incentive(PLI)scheme aimed at promoting the manufacturing of solar modules across the entire value chain.The Indian Renewable Energy Development Agency(IREDA)was designated as the nodal agency responsible for implementing the scheme.Under this initiative,gran

107、ted a cumulative capacity of 6 GW for fully integrated(Polysilicon-Module)manufacturing to three companies,with an approximate investment of INR 4,455 crore.Furthermore,the Solar Energy Corporation of India(SECI)assumed the role of the nodal agency for the second phase of the PLI scheme.Under tranch

108、e-II,SECI awarded a total capacity of 19,800 MW to 11 different players,distributing the capacity across three distinct value chain categories.The estimated investment for this allocation amounted to INR 13,940 crore.These PLI schemes were designed to incentivize and boost domestic manufacturing in

109、the solar module sector,ultimately reducing reliance on imports and strengthening Indias self-reliance in renewable energy production.This initiative holds the potential to significantly enhance the manufacturing capabilities and competitiveness of the solar PV industry in India.Source:PLI Tranche-1

110、 Results,IREDAGovernment awards INR 18,395 crore for 25,800 MW solar PV manufacturing capacity under PLI incentives across the value chain of polysilicon,ingot,wafer,cells and modulesCapacity awarded in PLI-1(MW)(Polysilicon-Module)2,000 2,000 2,000 Shiridi Sai ElectricalsReliance New Energy SolarAd

111、ani InfrastructureCapacity awarded in PLI-2(MW)Source:PLI Tranche-2 Results,SECIGlobal champions for advancing renewable energy innovation and manufacturing 2912345678Investment mobilization A total of INR 1.23 lakh crores(US$15.28 billion)of capital investment will be mobilized to operationalize th

112、ese projects in the pipeline.32.41327.716.3Polysilicon-ModuleIngot-ModuleCell-ModuleModuleSource:EY analysisThe pipeline of solar PV manufacturing projects(announced,under permitting and under construction)will need US$15.2 billion in investmentsCapacity by Value Chain(GW)Location of the FacilityMod

113、ule Manufacturing capacity under pipeline(GW/year)Cell Manufacturing capacity under pipeline(GW/year)Ingot/Wafer Manufacturing capacity under pipeline(GW/year)Gujarat35.652118Himachal Pradesh00.50Karnataka31.50Maharashtra100Rajasthan440Tamil Nadu9.49.43.4Telangana1312.2511Uttarakhand0.2500West Benga

114、l330Facility Location not reported202013Total89.471.645.46.82.23.22.8Polysilicon-ModuleWafer-ModuleCell-ModuleModuleInvestment across Value chain(US$billion)Global champions for advancing renewable energy innovation and manufacturing 3012345678Production-linked incentives for solar PV module and sys

115、tem ancillaries manufacturingPolicy enablersThe intricate interplay of demand volatility and policy uncertainty has led Indian financial institutions to adopt a cautious approach when it comes to supporting domestic solar module manufacturers.The uncertainties surrounding the demand for solar module

116、s,influenced by factors such as regulatory changes and market dynamics have instilled a sense of risk aversion among financial entities.Even when financial institutions are willing to provide funding,the terms of financing often come at a cost.Notably,the interest rates associated with the debt offe

117、red to solar module manufacturers are significantly higher.This financial burden,stemming from increased interest costs,directly impacts the cost structure of domestic solar modules.As solar PV technology continues to dominate global electricity mix,the ancillary industry will play a crucial role in

118、 ensuring reliability,efficiency,and integration of solar energy systems.Indias Solar PV industry,primarily focused on the manufacturing and installation of solar panels,is supported by a vast network of ancillary components and services essential for the efficient functioning,integration,monitoring

119、,and maintenance of a solar power system.Indias solar energy landscape is characterized by a significant disparity between the countrys solar glass production capacity(approximately 6 GW)and the overall module production capacity(approximately 38 GW).This glaring gap necessitates the import of the r

120、emaining 34 GW equivalent of solar glass for modules,hindering the nations journey towards self-sufficiency in solar PV value chain.Beyond solar glass,other indispensable components such as ethylene-vinyl acetate(EVA),various encapsulants,backsheets,junction boxes,semiconductor components for Invert

121、ers(including IGBT,MOSFET etc.)rely on imports.These components collectively constitute the backbone of solar module fabrication.While India succeeds in manufacturing solar cells and modules domestically,the comprehensive objective of Atmanirbhar Bharat“cannot be fully realized if the country contin

122、ues to rely extensively on imported ancillary components for module and systems assembly.In this context,AatmaNirbhar policy must focus on establishing a robust ecosystem for the manufacture Solar PV module and system ancillaries,such as solar glass,MOSFET and IGBT components for inverters,etc.Polic

123、y consistency and predictability for ALMM implementationA critical factor in promoting the growth of domestic PV cell and module manufacturing industry is ensuring domestic demand certainty.The implementation of Approved List of Models and Manufacturers(ALMM)as a mandatory rule for procuring solar P

124、V modules for domestic projects emerges as a pivotal catalyst in this regard.By establishing a clear framework for permissible models and manufacturers,the ALMM mandate effectively provides domestic module manufacturers with a reliable demand estimate.This is particularly valuable when considered al

125、ongside Indias ambitious capacity addition plans within the renewable energy sector.The ALMM mandate effectively restricts the unregulated import of solar modules.This influence on imports creates a conducive ecosystem wherein domestic manufacturers can recalibrate their production strategies to mee

126、t the anticipated demand.Crucially,the implementation of ALMM,by constraining imports,fosters an environment where the domestic module manufacturing sector can thrive.Blended innovative low-cost financing instrumentsGlobal champions for advancing renewable energy innovation and manufacturing 3112345

127、678The establishment of the solar module manufacturing facility is inherently capital intensive,demanding substantial investments in infrastructure,technology,and skilled manpower.Recognizing the significance of domestic module manufacturing in realizing Indias renewable energy goals and fostering s

128、elf-reliance,the government is poised to explore strategic measures to facilitate the growth of this critical sector.One such approach involves enabling access to low-cost blended instruments for domestic module and ancillary equipment manufacturers.Robust risk-mitigation instruments at scale deploy

129、ed by IFI,MDBs,institutional capacity and reforms in the development finance and banking sector by involving private sector stakeholders can help create investment platforms for access to low-cost capital.At the core of this initiative is the acknowledgment that the cost of capital significantly inf

130、luences the viability of manufacturing endeavors,particularly in an infrastructure-intensive sector like solar modules.The financial burden imposed by high-interest debt can amplify the overall cost of production,making domestically manufactured modules less competitive against their imported counte

131、rparts.To address this,the government may consider mechanisms to provide domestic manufacturers with access to low-cost debt.Boost the availability of skilled professionalsQuartz mining and module assembling are the simplest processes in terms of requirements.They require low labor costs,low-to-medi

132、um skills,reliable and developed infrastructure,and,in the case of quartz mining,raw-material availability.Cell manufacturing requires slightly more capital than module manufacturing,its infrastructure requirement is similar to solar modules.The success of cell manufacturing requires a skilled workf

133、orce and the presence of research and development(R&D)centers if innovative technologies,like n-type monocrystalline,are being targeted by the facility.Access to patents and intellectual property rights(IPRs)is also crucial for this step.Upstream manufacturing steps,such as metallurgical-grade silic

134、on,solar-grade silicon,and ingot and wafer manufacturing,are very complex.They are the most capital-intensive and require highly skilled workers.The industry requires trained technicians,engineers,and operators who are familiar with the latest manufacturing technologies and quality standards.The ava

135、ilability of skilled manpower needs to be improved through training programs and collaborations with industry professionals and academic institutions.Addressing the shortage of skilled workforce is essential for efficient manufacturing operations.Establish skill development programs in collaboration

136、 with educational institutions and industry experts from EU and US.Provide training on advanced manufacturing technologies,quality control processes,and safety standards.Offer incentives to attract skilled professionals to the solar module manufacturing sector.Promote export-oriented incentivesGiven

137、 the current surplus of solar module manufacturing capacity in India,domestic module utilization within the country is facing challenges due to factors such as the dynamics of reverse auctions.Additionally,in the global market,Indian modules encounter fierce competition from their Chinese counterpar

138、ts,which often have cost advantages.To address this situation and bolster the global competitiveness of Indian solar module manufacturers,the government could contemplate implementing export-oriented incentives.By offering incentives tailored toward exports,the government would provide Indian solar

139、and solar module component manufacturers with a competitive edge in international markets.These incentives could encompass various forms,such as financial support,tax benefits,streamlined export procedures,or even research and development grants,incentivizing manufacturers to enhance the quality,eff

140、iciency,and affordability of Indian modules for the global market.Global champions for advancing renewable energy innovation and manufacturing 3212345678Uniform GST 5%application on all renewable energy manufacturing equipment,raw materials and ancillaries Access to reliable and affordable electrici

141、ty around the clock is essential for upstream components in the value chain.Electricity constitutes a significant portion,approximately 30%to 40%of the operational expenses in solar PV manufacturing.India has comparatively high industrial tariffs compared to domestic tariffs.These elevated industria

142、l tariffs contribute to increased production costs for modules,thereby making Indian products less competitive in the global market.The financial health of state power utilities and electoral promises of free power supply does not leave fiscal room for accommodating affordable industrial tariffs.Exp

143、loring a National scheme to incentivize/compensate state utilities for reducing industrial tariffs or promoting green energy open access transactions for round-the-clock supply can be considered.Implementing policies that enable longer duration of banking would allow manufacturers to store excess en

144、ergy and utilize it when needed,ensuring a continuous and uninterrupted power supply from DISCOMs.The crucial raw material polysilicon attracts a GST rate of 18%and a custom duty of 5.5%,resulting in an overall tax burden of 23%for the PV manufacturing industry.These taxes contribute to bottlenecks

145、in the solar industry,hampering domestic manufacturing and hindering the achievement of Indias renewable energy goals.Implementing a reduction or waiver of custom duty on polysilicon would have far-reaching benefits for the solar upstream manufacturing sector in India.By reducing the cost burden ass

146、ociated with importing polysilicon,domestic manufacturers would be encouraged to invest in local production facilities.This would not only enhance the self-reliance of the industry but also ensure a stable supply chain,reducing vulnerability to international market fluctuations and supply disruption

147、s.Moreover,a favorable duty structure would make solar upstream manufacturing in India more cost-effective and competitive,attracting both domestic and foreign investments.Similarly,establishing a uniform GST rate of 5%on all renewable energy manufacturing equipment,raw materials and ancillaries wou

148、ld bring in the required clarity and simplicity to the tax regime.The current variation in GST rates for different components and equipment adds complexity and hampers the growth of the sector.A uniform GST rate would level the playing field for manufacturers,facilitating their decision-making proce

149、sses and encouraging long-term investments.It would also streamline tax compliance,reducing administrative burdens and promoting a more conducive business environment.By providing certainty in the duration and applicability of these taxes and duties,the government can offer stability to manufacturer

150、s operating in the renewable energy sector.This stability allows manufacturers to accurately assess costs,plan their operations,and make informed investment decisions.It also enables them to develop strategies to navigate changing market dynamics and to remain resilient in the face of uncertainties.

151、Ultimately,these policy measures would not only bolster the growth of the renewable energy sector but also contribute to Indias self-sufficiency in clean energy production and enhance its competitiveness in the global market.Access to round-the-clock affordable electricity Promote raw material suppl

152、y chain industryThe second phase of government supported PLI,approximately 7.7 GW of capacity has been allocated for polysilicon to module facilities.For other less integrated facilities,the availability of raw materials is a critical factor and poses challenges in terms of supply chain disruptions

153、and price volatility.Even for polysilicon manufacturing,the availability of key raw materials such as PV grade quartz,charcoal,limestone,and low-ash coal is limited.The import of raw materials poses risks,including delays in shipments,customs and logistics issues,and fluctuations in international ma

154、rket prices.These uncertainties can significantly impact the manufacturing process,leading to production delays and increased costs.To ensure the growth and stability of the fully integrated solar module manufacturing industry,it is crucial to establish a stable and secure supply of raw materials.En

155、couraging investments in domestic raw material mining,extraction and processing capabilities can help create a more self-reliant supply chain and reduce vulnerabilities associated with international sourcing.Strengthening wind turbine manufacturing ecosystem in India for exportsGlobal champions for

156、advancing renewable energy innovation and manufacturing 3412345678According to CEEW analysis,the wind supply comprises various assembly lines,.The global supply chain involves participation by(i)original equipment manufacturers(OEMs)that set up assembly lines or turbine-manufacturing facilities to s

157、upply finished products(wind turbines)for installation at project sites,(ii)suppliers of individual components and sub-components,and(iii)manufacturers of equipment and machinery used for producing key components and installation of turbines on project sites.The logistics of installation,constructio

158、n,operation,and maintenance are also crucial steps in the wind supply chain.As per GWEC analysis,manufacturers must strike the right balance between the in-house production of components and outsourcing to third parties to deliver on their turbine designs.In 2020,the total nacelle manufacturing capa

159、city was 120 GW,with major countries or regions including China(58%),Europe(18.5%),the US(10%)and India(8.5%).Since blade manufacturing is labor intensive,countries with low labor costs,primarily developing economies provide competitive grounds for meeting global demand.A concentrated ecosystem for

160、manufacturing critical components implies a higher risk of interruptions in the availability of these components if the manufacturing locations get affected due to geopolitical developments,price volatility of materials,and climate risks.Therefore,new manufacturing capacities must be developed in a

161、relatively more distributed fashion to ease trade and reduce the impact of supply disruptions.Wind turbine and component manufacturing ecosystem:A snapshot 0%20%40%60%80%100%SourcingManufacturing CapacitySourcingManufacturing CapacitySourcingManufacturing CapacityUSAEUChinaRest of the WorldIn house

162、production3rd partyGearboxBladeGeneratorWind TurbineBladeTowerNacelleFoundationHubGeneratorGearboxBearingsSemi ConductorsConsumables:REE,ferrite,cobalt used in permanent magnet,copper,Specialized steelConsumables:Copper,Bronze and Specialized steelConsumables:Specialized steel and BrassConsumables:P

163、latinum group metalsConsumables:Cast ironConsumables:Concrete&steelConsumables:SteelConsumables:Fiber glass,resin,plastic,silicone fiber,Balsa wood,Aluminum alloy,Carbon fiber,Ceramics,Teflon(PTFE),Glass-fiber-reinforced plastic,carbon-fiber-reinforced plasticSource:Developing Global Resilient Clean

164、 Energy Supply Chains,CEEW 2023Region wise production share and Sourcing of ComponentsGlobal champions for advancing renewable energy innovation and manufacturing 3512345678Innovations are essential for making supply chains more cost-effective and resilient.For example,according to DOE analysis,inno

165、vations in material science and engineering could make rotor blades lighter reducing transportation and manufacturing costs,using locally available raw materials,or enabling hybrid and cost-effective tower designs that can be assembled on-site can also contribute to reducing transportation costs.The

166、 CEEW analysis indicated that continuous changes in technology and turbine sizes necessitate additional investments in upgrading manufacturing facilities for key components and assembly lines.While these upgrades are beneficial for the growth of the wind sector,they also require significant financin

167、g capabilities and workforces with civil and electrical engineering skills.As per GWEC,a larger number of science,technology,engineering,and mathematics(STEM)professionals are required in the workforce,particularly for onshore projects when compared to other mature RE technologies,such as solar PV.T

168、his implies that extended lead times and additional efforts are needed to generate a workforce suitable for the wind industry.There is a significant skill overlap between the offshore oil and gas industry and the offshore wind industry,suggesting that the offshore oil and gas sector could help meet

169、the skill needs for an accelerated deployment of offshore wind systems in India.The IEA analysis highlights that while training systems for the onshore wind sector are already established,the growth of offshore wind will require newer and more diverse skill sets.This includes training to adhere to s

170、afety guidelines relevant to professionals working at heights and sea survival.As per GWEC,the construction of wind farms requires several materials such as concrete and steel,along with key minerals like copper,zinc,and manganese.Concrete and steel constitute 90%of the material requirement for onsh

171、ore wind farms,whereas steel accounts for 90%of the material required for offshore wind farms.As per IEA analysis,within the overall requirement of key minerals,copper and zinc account for 83%and 88%of the mineral requirement in onshore and offshore wind turbines,respectively.Critical minerals,infra

172、structure and skilled resource requirements for world class wind turbine manufacturing ecosystem29%4%8%0%5%1%54%0%0%Onshore52%2%5%0%3%1%36%2%0%OffshoreCopperNickelManganeseCobaltChromiumMolybdenumZincRare EarthsOthersWind turbine material compositionSource:Developing Global Resilient Clean Energy Su

173、pply Chains,CEEW 2023Global champions for advancing renewable energy innovation and manufacturing 361234567860%14%7%11%7%1%Global Wind Turbine Blade Manufacturing Share-2022 ChinaEuropeUSIndiaLATAMOther APAC130 GW65%7%22%3%3%Global WTG Generator Manufacturing Capacity-2022ChinaIndiaEuropeLATAMOther

174、APAC125 GW75%12%12%1%Global Wind Gearbox Manufacturing Capacity-2022ChinaEuropeIndiaOther APAC160 GWSource:Global Wind Report,GWEC 2023Global wind turbine blade,generator and gearbox manufacturing ecosystemGlobal champions for advancing renewable energy innovation and manufacturing 37123456788200011

175、50013650216006150 350Global Onshore Nacelle Manufacturing Capacity-2023ChinaIndiaNorth AmericaEuropeLATAMRest of World135 GW1600095001900Global Offshore Nacelle Manufacturing Capacity-2023ChinaEuropeAPAC excl.China27 GWSource:Global Wind Report,GWEC 2023Global wind turbine nacelle manufacturing ecos

176、ystem60%19%9%7%4%1%Global Wind Turbine Manufacturing Share-2023 ChinaEuropeUSIndiaLATAMOther163 GWGlobal champions for advancing renewable energy innovation and manufacturing 3812345678By 2030,an estimated 5 million tons of green hydrogen production capacity is expected to be created,resulting in ap

177、proximately 125 GW of renewable energy(RE)capacity.Out of which,wind power is likely to be a major contributor.Round-the-clock RE power generation systems typically required for electrolytic production of green hydrogen is best achieved with a high share of wind power generation as compared to solar

178、 PV and energy storage systems.Moreover,a substantial wind power generation potential of approximately 696 GW exists at a hub height of 120 meters.Given Indias abundant wind power potential and its commitment to expand renewable energy,the production of green hydrogen presents a significant market o

179、pportunity for the wind turbine manufacturing industry in the near future.Source:Power Sector Dashboard CEA March 2023Source:Power Sector Dashboard CEA March 2023,EY Research,CEA Optimal Energy Mix report 2023Indias wind power generation capacity is likely to double through 2030 and may even surpass

180、 150 GW for achieving the green hydrogen production targetsInstalled wind power capacity(March 2023)Wind power capacity under construction/bidAdditional wind power capacity addition through 2030Optimum wind generation capacity by 2030Demand for wind power generation through 2030(MW)State-wise wind p

181、ower Installed Capacity as of March 2023(GW)KeralaTelanganaMadhya PradeshAndhra PradeshMaharashtraRajasthanKarnatakaGujaratTamil NaduTotalGlobal champions for advancing renewable energy innovation and manufacturing 3912345678On 9 January 2023,MNRE released an office memorandum that revised the compe

182、titive bidding mechanism for procurement of power from Wind Power Projects(WPPs).This transitioned from reverse auction bidding to a single-stage two-envelope approach,involving technical and financial aspects,with several other changes.The bidders meeting the technical requirements will be consider

183、ed for the financial bid and subsequently,the lowest bidder will be awarded the project.It was also proposed that the cumulative bid capacity would be 8 GW each year until 2030,with a cap of 2 GW for each state.In cases where there was only one bidder,the remaining capacity would be rolled over to t

184、he next tender.This would be facilitated through composite state-specific bids for all eight windy states(comprising eight sub-bids),with independent selection of bidders for each state.There are also provisions to penalize the qualified bidders in case of delay in project execution.Finally,the tari

185、ffs from all the bids will be pooled as per the notified Electricity(Amendments)Rules,2022,and will be offered to DISCOMs.This move aims to increase the pace of deployment of wind power capacity and achieve the wind potential estimated by NIWE.The annual target was set at 8 GW for onshore wind tende

186、rs every year between 2023 and 2030,using a single-stage two-envelope bid system.MNRE published a strategy paper outlining a tender trajectory of 37 GW of offshore wind by 2030.Indian wind turbine production contributes only 7%of global productionIndia has established itself as a major player in win

187、d turbine manufacturing with a total capacity of around 12 GW.As of June 2023,the Ministry of New and Renewable Energy(MNRE)has approved 33 wind turbine models from 14 OEMs,featuring advanced specifications such as rotor diameters up to 156 meters and hub heights up to 160 meters.Additionally,there

188、is a growing emphasis on indigenization,with multiple OEMs achieving 70-80%localization and turbine units rated at 3.6 MW.These efforts not only create opportunities for investment,technology development,job creation but also contribute to fostering a green and sustainable energy sector in India.Ind

189、ia holds the distinction of being the second-largest market for gearboxes worldwide and the second-largest manufacturer of blades in the Asia-Pacific(APAC)region.According to the Global Wind Energy Council Report 2023,India accounts for approximately 11%of the global blade manufacturing capacity,equ

190、ivalent to 14.3 GW.Similarly,India contributes around 7%to the global wind generator manufacturing capacity,amounting to 8.75 GW,and holds a significant 12%share in global gearbox manufacturing,equivalent to 19.2 GW.As per the Global Wind Energy Council(GWEC)global wind report 2023,India contributes

191、 only 7%of the global wind turbine manufacturing capacity,translating to approximately 12 GW.The combination of favorable pricing and the shifting dynamics in supply chains in Europe presents a significant opportunity for India in the global wind energy supply chain.With a domestic manufacturing cap

192、acity of 10-12 GW for wind turbine generators and a strong presence in gearbox manufacturing,blades,and generators in the APAC region,India is well-positioned in the wind manufacturing sector.To strengthen its position as a leading exporter,India needs to establish a resilient supply chain for raw m

193、aterials,including rare earth metals and non-standard steel,and focus on specific value chain components such as casting and forging.It is imperative to continue providing import duty relief on certain equipment and components that cannot be produced locally,such as balsa wood and pultruded carbon f

194、iber.020406080No.of OnshoreNacelle FacilitiesNo.of OffshoreNacelle FacilitiesNo.of OnshoreNacelle FacilitiesAnnouncedNo.of OffshoreNacelle FacilitiesAnnouncedGlobal Nacelle Manufacturing Facilities-2023ChinaEuropeIndiaUSALATAMAPACAfrica&MESource:Global Wind Report,GWEC 2023Global champions for advan

195、cing renewable energy innovation and manufacturing 4012345678020406080100120140160180200FY-18FY-19FY-20FY-21FY-22FY-23Wind turbine HS Code:84128004Imports(INR Crs.)Exports(INR Crs.)050010001500200025003000FY-18FY-19FY-20FY-21FY-22FY-23Wind generator HS Code:850231Imports(INR Crs.)Exports(INR Crs.)So

196、urce:www.dgft.gov.inIndias trade scenario in wind turbines and generators Global champions for advancing renewable energy innovation and manufacturing 4112345678The Ministry of New and Renewable Energy(MNRE)in India has announced a strategy roadmap to install 37 GW of offshore wind power by 2030.Thi

197、s signifies a significant focus on harnessing wind resources from the seas and oceans surrounding the country.Offshore wind farms have the potential to generate large amounts of clean energy and contribute to meeting Indias renewable energy goals.The roadmap set by the MNRE emphasizes the government

198、s dedication to exploring and utilizing offshore wind resources to further enhance the countrys renewable energy capacity.By setting these targets and implementing strategic plans for onshore and offshore wind power development,India aims to strengthen its position as a global leader in renewable en

199、ergy.The governments focus on wind energy expansion aligns with its commitment to combat climate change,reduce greenhouse gas emissions,and achieve sustainable development.Keeping in view the requirement of the holistic development of offshore wind farms in the country and to fast-track the process,

200、the MNRE proposed three models:Model-AProposed for B3 zone(365 sq.km)off the coast of Gujarat.Lease agreement for 35 years.A two-stage-single bid process would be followed e-RA by SECI and PPA will be signed with SECI as the off-taker.Viability Gap Funding may be considered by Govt.OWPD shall commis

201、sion the project within four yearsMNRE conducted following studies that would enable the bidders to bid for the projectsLidar-based offshore wind resource assessment for two years and data published on the NIWE website.Geophysical investigation and Geotechnical investigation for 3nos of representati

202、ve boreholes up to 60m soil depth.Rapid EIA studyOceanographic(Wave,Tide¤t)for one monthModel BExclusivity for seabed during the study period of two years.No studies have been carried out by MNRE/NIWEProjects under EEZ of IndiaNIWE will act as a single window for clearancesDeveloper to conduct

203、 studiesAfter studies and clearances,SECI will invite tenders for offshore wind energyOWPD need to submit DPR and enter into concession agreement and lease agreement(for a period of 35 years)for project development and sale of power under open access/captive/third party sale regime.Government may al

204、so call for bids for procurement of power for DISCOMs on the basis of tariff after two years.OWPD shall commission the project within three yearsModel-CSea bed will be allocated to bidders through a competitive bidding process.The Government will come up with a bid for project development/allocation

205、 of the seabed.The bidding may include any of the following methods;Bidding on lease/allocation fee or revenue sharing in case of projects for captive consumption/third party sale/sale through exchange under an open access mechanism.Tariff-based competitive bidding in case of power procurement by DI

206、SCOMs or Central Govt.or State Govts.Any other transparent bidding mechanism identified by the Government.MNRE or its designated agency will enter into the concession agreement and Lease Agreement for 35 years with the successful bidders.OWPD to shall commission the project within four yearsSource:S

207、trategy Paper for Offshore Wind Energy In India,MNRE August,2023MNRE has announced a strategy roadmap to install 37 GW of offshore wind power by 2030Global champions for advancing renewable energy innovation and manufacturing 42123456780123456FY24FY25FY26FY27FY28FY29FY30MNRE indicative offshore wind

208、 auction trajectory(GW)Model-AModel-BModel-CSource:Strategy Paper for Offshore Wind Energy In India,MNRE August,2023MNRE indicative auction trajectory for offshore windGlobal champions for advancing renewable energy innovation and manufacturing 4312345678Policy enablersProduction-linked incentives f

209、or wind turbine grade ancillary manufacturers and rare earth mineral processingCasting and forging is a critical process in wind turbine manufacturing,especially for components such as turbine hubs,rotor blades,and gearboxes.Challenges related to casting can include quality control issues,casting de

210、fects,and delays in production.Ensuring the availability of skilled personnel and modern casting facilities is essential for maintaining the desired quality and efficiency in the manufacturing process.Any shortcomings in the casting process can lead to rework,production delays,and increased costs fo

211、r wind turbine manufacturers.Considering the continuous upgradation in the unit size of wind turbine,it is worth investing in advanced casting and forging facilities that can accommodate rapid upgrades in unit size,design and technology of multiple OEMs and cater to the demand for multiple OEMs toge

212、ther.Implement rigorous quality control measures to minimize casting defects and ensure consistent production.Collaborate with casting/forging experts or seek partnerships with specialized casting/forging companies to optimize these operations.Providing necessary financial incentives to these indust

213、ries could ramp up the production and reduce the bottlenecks in overall manufacturing process of wind turbines.Additionally,fluctuations in raw material prices can pose challenges for wind turbine manufacturers.The cost of materials such as steel,aluminum,zinc,copper,and composites can significantly

214、 impact the overall manufacturing cost of wind turbines.Sudden increases in raw material prices can squeeze profit margins,making it difficult for manufacturers to maintain cost competitiveness.Various raw materials to manufacture wind turbine are creating a stress on wind turbine manufacturing capa

215、city in India.Several critical raw materials are imported such as Balsa-as essential material used as reinforcement in blades.Strengthening transportation and logistics for wind turbine installationsEssential infrastructure such as approach roads,robust cranes,and efficient power evacuation systems,

216、needs to be put in place.By collectively establishing shared facilities,spearheaded by Special Economic Zones(SEZs)and government entities,there is potential to lower power generation costs and alleviate financial strain on Original Equipment Manufacturers(OEMs)and Independent Power Producers(IPPs).

217、Enhancing the efficiency of transportation routes and schedules is imperative to mitigate delays and ensure punctual delivery of wind turbine components.Strategic investments in appropriate handling equipment and infrastructure at both manufacturing plants and project sites are essential to streamli

218、ne transportation and facilitate seamless installation processes.Rare earths to manufacture permanent magnets for generator,fiberglass/resin,etc.Domestic value addition in wind turbine manufacturing is currently only 25%.Price volatility can also affect procurement planning and inventory management

219、requiring manufacturers to closely monitor market trends and engage in strategic sourcing to mitigate these challenges.Rare earth elements(REEs)are critical to produce permanent magnets used in wind turbine generators.The prices of REEs,such as neodymium and dysprosium have experienced wide fluctuat

220、ions due to factors like global supply and demand dynamics,export restrictions,and geopolitical factors.Wind turbine OEMs closely monitor the prices of REEs as they impact the cost and availability of magnets.Global champions for advancing renewable energy innovation and manufacturing 4412345678In t

221、he global market,Indian wind turbines encounter fierce competition from their Chinese counterparts,which often have cost advantages.To address this situation and bolster the global competitiveness of Indian wind turbine manufacturers,the government could contemplate implementing export-oriented ince

222、ntives.By offering incentives tailored toward exports,the government would provide Indian wind turbine manufacturers with a competitive edge in international markets.These incentives could encompass various forms,such as financial support,tax benefits,streamlined export procedures,or even research a

223、nd development grants,incentivizing manufacturers to enhance the quality,efficiency,and affordability of Indian modules for the global market.Promote export-oriented incentivesTesting wind turbines in India is a complex endeavor hampered by multiple challenges.The limited availability of advanced te

224、sting infrastructure and specialized technical expertise for intricate components like gearboxes,blades,and control systems contributes to delays and increased costs in wind energy projects.Additionally,the inadequacy of standardized testing protocols and regulatory frameworks specific to wind turbi

225、nes complicates the validation process.As a result,the lack of comprehensive testing mechanisms extend project timelines.In India,most of the turbines/components are shipped to Denmark,the Netherlands,China etc.for testing.In partnership with academic and research institutions,the government could e

226、xplore the establishment of an advanced shared testing facility for wind turbines within the country.This initiative would serve to assess turbine performance domestically,leading to a reduction in both lead time and associated expenses.Setting up shared testing facilities for wind turbine component

227、s on PPP modeManufacturing wind turbines involves various energy-intensive processes,such as casting,machining,welding,and assembly.These processes require a significant amount of electricity to power the machinery and equipment used in the production line.The power requirements can put a strain on

228、the electrical infrastructure,especially if the manufacturing facility is located with limited or unreliable power supply.Power outages or interruptions can disrupt the manufacturing process and lead to production delays,lower productivity,and increased costs.Inconsistent power supply can result in

229、equipment downtime,material waste,and reduced efficiency.Wind turbine OEMs rely on a continuous and stable electricity supply to maintain seamless operations throughout the manufacturing process.The cost of electricity is an important factor for wind turbine OEMs,as it directly impacts their operati

230、onal expenses and overall cost competitiveness.If the electricity rates are high,it can increase the manufacturing cost of wind turbines,which may affect the OEMs ability to offer competitive pricing to customers.The cost of electricity can also influence investment decisions related to expanding ma

231、nufacturing facilities or setting up new production units.Access to round-the-clock reliable and affordable electricity is essential for upstream components in the value chain.The financial health of state power utilities and electoral promises of free power supply do not leave fiscal room for accom

232、modating affordable industrial tariffs.A National scheme to incentivize/compensate state utilities for reducing industrial tariffs or promoting green energy open access transactions for round-the-clock supply can be explored.Implementing policies that enable longer duration of banking would allow ma

233、nufacturers to store excess energy and utilize it when needed,ensuring a continuous and uninterrupted power supply from DISCOMs.Access to round-the-clock affordable electricity Domestic value addition in advanced chemistry cell(ACC)battery manufacturing Global champions for advancing renewable energ

234、y innovation and manufacturing 4612345678Source:Need for ACC energy storage in India,NITI Aayog,2022Indias ACC battery market has potential to exceed US$15 billion/annum by 2030 Indian battery demand outlook(conservative scenario)Indian battery demand outlook(accelerated scenario)1360246805010015020

235、2220262030Market Size($Billion)Annual Demand(Gwh/Year)Passenger EvsCommercial EvsE 2-wheeler/3-wheelerE-busesFreightStationary Storage(Grid-scale)Behind-the meter(Res+Comm)Consumer ElectronicsRail+DefenseMarket Size2615-41611160100200300400202220262030Market Size($Billion)Annual Demand(Gwh/Year)Pass

236、enger EvsCommercial EvsE 2-wheeler/3-wheelerE-busesFreightStationary Storage(Grid-scale)Behind-the meter(Res+Comm)Consumer ElectronicsRail+DefenseMarket SizeGlobal champions for advancing renewable energy innovation and manufacturing 4712345678Stationary BESS market alone is 208 GWh by 2030,a massiv

237、e opportunity forthe domestic manufacturing industryVoltage support:maintain grid voltage within specified limits,to help manage reactive power.Frequency regulation:correcting frequency deviations and maintaining frequency within limits.Spinning reserves:Standby generation stations utilized during u

238、nexpected power shortages.ESS with longer discharge durations can be used as spinning reserves.Black start:energizing part of the grid during unplanned blackouts.Balancing:fast-response time creates a balance between load and generation when the load changes rapidly.This helps to maintain the stabil

239、ity of the grid.Stationary BESS applications for gridEnergy arbitrage:This stores energy when the price is low and sells energy during peak demand when the price is high.Round-trip efficiency and operating cost play a key role when ESS is involved in arbitrage.RE integration:ESS should be able to ab

240、sorb fluctuations to make the power system more flexible when a large share of intermittent renewables integrates into the grid.Seasonal storage:ESS with the capability to discharge for days,weeks,or months can supply the seasonal mismatches in the power system.T&D infrastructure servicesT&D upgrade

241、 deferral:This involves using ESS to either defer or avoid the need of a T&D equipment upgrade to meet demand growth.T&D congestion relief:ESS charging during off-peak hours and discharging during peak load helps in reducing the congestion in the transmission network.Customer energy management servi

242、cesPower quality:ESS will help in protecting consumers from high variations in voltage.Power reliability:The ESS installed close to consumer load aids customer during an unplanned interruption from the utility.Demand shifting and peak reduction:ESS supports by reducing peak demand and shifting the d

243、emand to non-peak hours.According to the Central Electricity Authoritys Optimal Energy Mix report for 2030,the region-wise estimated battery energy storage system(BESS)during 2029-30 is 30.5 GW/152.5 GWh for Northern region and 11.1 GW/55.5 GWh for Southern region.The energy storage capacity require

244、d for 2029-30 is likely to be 60.63 GW(18.98 GW PSP and 41.65 GW BESS)with storage of 336.4 GWh(128.15 GWh from PSP and 208.25 GWh from BESS).As on 31.03.2023,PSP based capacity of 4746 MW exists in the country.PSP projects totalling 2780 MW are under construction.In addition,PSP capacity of 11,460

245、MW is required till 2030 to meet the electricity storage requirements of the country.Many PSP plants are likely to yield benefits by 2030 in the southern region,thereby making it a cost-effective storage alternative and thus reducing the need of additional BESS requirement in that region.In the case

246、 of BESS resource,the investment is preferably in a northern region as compared to other regions due to steeper evening peaks.Therefore,BESS resource is found to be most cost effective and optimally utilized if installed locally in the northern region.Ancillary services(short duration)Bulk energy se

247、rvices(long duration)Global champions for advancing renewable energy innovation and manufacturing 4812345678Advanced chemistry cell battery technologies and key performance metrics for market transformationSource:MIT Study on the Future of Energy Storage,June 2022Source:EY analysisHigh energy densit

248、y batteries 350 wh/kg,1000 wh/LExtended battery life 10,000 cycles C-rating for fast charging(=5C)Cost of active materials 50MW:202360%,202455%202545%,202635%202720%,202800%100%reimbursement for 5 yearsGreen hydrogen blending in gas INR 50/kg subsidy for 5 yearsOther monetary IncentivesTechnology ac

249、quisition30%of CAPEX or INR 5 CrEPF Reimbursement50%of employers contribution to EPF and ESIGreen urea productionINR 3500/ton of urea with 10%blending shareGreen hydrogen refueling stations30%CAPEX subsidy,max.INR 4.50 Cr for the first 20 stationsGreen hydrogen-based passenger vehicle30%CAPEX subsid

250、y,max.INR 60 lakhs for the first 500 vehiclesUP Policy https:/upneda.org.in/MediaGallery/UPGH2_policy_II.pdfAP Policy https:/www.nredcap.in/PDFs/2023/GO_Ms_No_14_Dt_20_06_2023.pdf.Maharashtra Policy Maharashtra introduces Hydrogen policy,a first in the country|Mumbai News-The Indian ExpressRajasthan

251、 Policy https:/www.invest.rajasthan.gov.in/policies/rajasthan-investment-promotion-scheme-rips-2022.pdfReview of state wise green hydrogen policies giving capex and production linked subsidies Global champions for advancing renewable energy innovation and manufacturing 7212345678In India,the existin

252、g capacity of alkaline electrolysers is estimated to be less than 1GW,which is mainly used for chlor-alkali process.Choice of technology and access to technology partnersAlkaline electrolysers dominate the market today and are expected to continue being the most preferred technology.Of the other tec

253、hnologies,PEM is emerging to be a promising electrolysis technology.Today,alkaline technology is cheaper,with an average cost of US$700 to US$1,100 per kW and has an efficiency of 70%(producing 0.021kg H2 per kWh).PEM technology costs between US$1,200 and US$2,000 per kW,having an efficiency of 60%(

254、producing 0.018kg H2 per kWh).As the PEM technology advances,it is expected to achieve parity with alkaline(US$500 per kW)by FY2030.Players look forward to technology diversification.For instance,NEL has exposure to both alkaline and PEM technologies,which offers an edge in case one of the technolog

255、ies prevails in the future.Solid oxide and AEM technologies are at a nascent stage today with some players like Bloom Energy(US)and H2e Power(IN),developing electrolysers based on solid oxide,while Enapter(IT)and Hydrolit(IL)are a few players that are developing AEM.Opportunity for Indian OEMs to cr

256、eate world-class manufacturing facilitiesManufacturerHeadquartersTechnologyCapacity(MW)GrowthCurrentExpansion plansITM PowerUKPEM1,0005000 by 20245xMcPhyFrancePEM,Alkaline1001300 by 202413xNelNorwayPEM,Alkaline50010000 by 202520 xJohn CockerillBelgiumAlkaline3508000 by 202523xPlug PowerUSPEM753000 b

257、y 202540 xThyssenkruppGermanyAlkaline1,0005000 by 20305xSunfireGermanyAlkaline,Solid Oxide40500 by 202413xSiemens EnergyGermanyPEM1251000 by 20308xCumminsUSPEM,Alkaline,Solid Oxide383500 by 202592xTopsoeDenmarkSolid Oxide755000 by 203067xOhmiumUSPEM5002000 by 20244xEnapterItalyAEM30300 by 202410 xBl

258、oomenergyUSSolid Oxide5001000 by 20242xGreen Hydrogen SystemsDenmarkAlkaline75400 by 20245xHydrogen ProNorwayAlkaline1001000 by 203010 xElogenFrancePEM1601000 by 20256xOthersPEM,Alkaline,Solid Oxide1,00012000 by 203012xTotal5,66837,000 by 202560,000 by 20306x10 xElectrolyser manufacturers are gearin

259、g up to increase the green hydrogen production capacitySource:EY analysis,company press releases,secondary research Source:EY Report on shortage of electrolyzers for green Hydrogen,2023Global champions for advancing renewable energy innovation and manufacturing 7312345678As the demand for electrolys

260、ers increases in the next few years,the players look forward to strategic tie-ups with key hydrogen producers across different industry segments.These partnerships are expected to support the development of a green hydrogen ecosystem.Many electrolyser manufacturers are forming partnerships with ener

261、gy and utility players as renewable power hubs are inferred to be better suited for green hydrogen production due to access to renewable electricity.Policy push in the US and Europe is expected to fast-track green hydrogen adoption and thereby accelerate the energy transition.This will translate to

262、multibillion-dollar opportunity for electrolyser manufacturers,and India should target to become a global hub for manufacturing.Efficiency and competitiveness for Indian manufacturers require securing raw materials and planning large scale investments0%10%20%30%40%50%60%70%80%90%100%YLaZrNiPdIrPtCoK

263、ey Suppliers of critical minerals for ElectrolysersChinaRussiaSouth AfricaCongoKey minerals and metals for electrolysersSolid OxideAlkalinePEMZirconiumNickelYttriumLanthanumNickelZirconiumPalladiumIridiumPlatinumPalladiumMany minerals and metals required for electrolysers are highly concentrated in

264、specific geographies,presenting a supply chain risk to manufacturers.Critical raw material supply for PEM is highly concentrated,with South Africa supplying over 70%of platinum and over 85%of iridium required globally.Solid oxide electrolysers are produced at a lab scale today;however,they show futu

265、re potential.They face a larger concentration of supply as more than 90%of the critical materials come from China.There will be a need for electrolyser manufacturers globally to work with key stakeholders on raw material dependency issues,such as strategic sourcing and forming strong partnerships.So

266、urce:European Commission,USGSSource:EY Report on shortage of electrolyzers for green Hydrogen,2023Global champions for advancing renewable energy innovation and manufacturing 74123456780200400600800100012001400101001000101001000System Cost US$/KWAnnual Productions(Units/Year)StackBalance of Plant200

267、 kw1 MWKey factors driving cost competitivenessElectrolyser cost Electrolyser efficiencyRenewable electricity costLifetime of electrolysersFull load hoursWeighted average cost of capital IncreaseReductionEconomies of scale can be achieved by increasing the size of electrolyserfacilities.Source:NREL,

268、IRENA,EY AnalysisPlan for large-scale investments and boost efficiency with economies of scaleEconomies of scale impact:potential cost reductions in PEM electrolysersIn stack manufacturing,as more units of electrolysers are produced,the shared cost of assembly lines,buildings,and staff comes down,ac

269、hieving economies of scale.Manufacturing more units of stack assembly is expected to result in cost reduction of 90%by shifting from a manual to a semi-automated process at a volume of about 1GW per year.Global champions for advancing renewable energy innovation and manufacturing 7512345678050100150

270、200250300350400FY-18FY-19FY-20FY-21FY-22FY-23Machines and apparatus for electro-plating,electrolysis and electrophoresisHS Code:854330Imports(INR crore)Exports(INR crore)Source:www.dgft.gov.inIndias trade scenario in electrolysis and electrophoresis equipment Global champions for advancing renewable

271、 energy innovation and manufacturing 7612345678Green Hydrogen production investment pipeline(INR.Thousand crore)Location of the facilityElectrolyser manufacturing(MW/Year)Green hydrogen/Ammonia production(Tons/year)Madhya Pradesh5,767 Andhra Pradesh10,00,388 Haryana2,075 Ladakh30 Uttar Pradesh1005,0

272、5,052 Karnataka1,50059,00,025 Himachal Pradesh1,09,516 Maharashtra1,500906Rajasthan10,00,000 Odisha1,20,000 Kerala338Tamil Nadu11,03,000 Gujarat42,493Facility location not reported7,2502,26,738 Total10,3501,00,16,328 Source:EY AnalysisSource:EY AnalysisIndias pipeline of green hydrogen and ammonia p

273、rojects exceeds 10 million tons/annum,with over 10 GW of electrolyser manufacturing projectsGlobal champions for advancing renewable energy innovation and manufacturing 7712345678Policy enablersNational program to incentivize and compensate state utilities for implementing annual grid banking facili

274、ty for captive open access RE power supplyRE power input contributes 40%to 50%of green hydrogen production costs.To manage RE intermittency during a time when storage is relatively expensive,industry will need annual grid banking facility for round-the-clock RE power supply to achieve global cost co

275、mpetitiveness.Government policy and budgetary outlay should focus on incentivizing and compensating states to implement annual grid banking facilities for green energy open access captive transactions.Blended innovative low-cost financing instrumentsRobust risk-mitigation instruments,deployed at sca

276、le by IFIs(International Financial Institutions)and MDBs(Multilateral Development Banks),along with institutional capacity and reforms in the development finance and banking sector,involving private sector stakeholders,can help create investment platforms for accessing low-cost capital.At the crux o

277、f this initiative lies the acknowledgment that the cost of capital significantly influences the viability of manufacturing endeavours,particularly in an infrastructure-intensive sector like green hydrogen production.The financial burden imposed by high-interest debt can amplify the overall cost of p

278、roduction,rendering domestically manufactured products less competitive against their imported counterparts.To rectify this,the government may consider mechanisms to provide domestic manufacturers with access to low-cost debt.Promote export-oriented incentivesThe US IRA led incentives for their gree

279、n hydrogen production renders exports to that market less competitive.EU is another major export market for Indian companies,which often face cost disadvantages because of the geographical distance.To address this situation and bolster the global competitiveness of Indian green hydrogen industry,the

280、 government could consider implementing export-oriented incentives.By offering incentives tailored toward exports,the government would provide Indian RE players and green hydrogen producers a competitive edge in international markets.These incentives could present itself in various forms,such as fin

281、ancial support,tax benefits,streamlined export procedures,or even research and development grants,incentivizing manufacturers to enhance the quality,efficiency,and affordability of Indian green hydrogen and its derivatives for the global market.Setting up shared desalination facilities in emerging g

282、reen hydrogen clustersEstablish shared/common sea water and groundwater desalination plants powered by renewable energy to produce demineralized(DM)water for green hydrogen production.Green hydrogen production requires approximately 9 to10 liters of demineralized water per kg of H2 production meanin

283、g 20 to 25 liters of raw water per kg of H2 depending on the source of raw water.Public private partnerships can be envisaged to set up these facilities.India faces water scarcity in many regions because of exacerbated climate change and the demand for DM water requires advanced treatment processes,

284、which further strain water resources.The establishment of such desalination plants requires significant investments and careful water resource and waste management to balance the needs of various sectors.Encouraging the development of renewable energy-powered desalination plants can enhance water av

285、ailability for green hydrogen projects and support water resource management.Global champions for advancing renewable energy innovation and manufacturing 7812345678Boost the availability of skilled workers and professionalsBuilding a skilled workforce capable of designing,operating,and maintaining g

286、reen hydrogen infrastructure is crucial.Adequate training programs and educational initiatives need to be implemented to develop a skilled workforce for the growing green hydrogen sector.Encouraging knowledge sharing,collaboration,and partnerships among industry players,research institutions,and aca

287、demia can accelerate technological advancements and knowledge dissemination.Addressing the shortage of skilled workforce is essential for maintaining efficient manufacturing operations.The manufacturing and assembly processes of electrolysers require specialized skills and knowledge.The availability

288、 of a skilled workforce with expertise in electrochemistry,materials science,and manufacturing processes is limited in India.Bridging this skill gap through training programs and educational initiatives is essential.To address the skilled labor needs in the green hydrogen value chain,it is recommend

289、ed to establish skill development programs in collaboration with vocational training institutes,universities,and industry stakeholders.This should be complemented by fostering industry-academia collaboration,government support,continuous learning opportunities,and the introduction of industry recogn

290、ized certifications.These measures will help bridge the skills gap,provide practical training,encourage ongoing professional development,and ensure a qualified workforce capable of driving innovation and meeting industry demands.Corporate renewable energy procurement market in IndiaGlobal champions

291、for advancing renewable energy innovation and manufacturing 8012345678The Commercial and industrial(C&I)renewable energy open access market is growing in almost all key renewables-rich states.Nearly two-thirds of the current renewable energy OA capacity came online in the last five years.Increasing

292、awareness and demand from Commercial and industrial(C&I)customers was a key driver of growth.The central governments Green OA Policy in 2022 was a significant positive regulatory development for the renewable energy OA market.Timely implementation of the green energy OA Policy by the states will hel

293、p further growth in the years to come.C&I consumers account for 51%of total power consumption in the country.Grid tariffs for these consumers are inflated due to cross-subsidization of other consumer categories.Direct renewable power procurement accounts for less than 10%of total C&I power consumpti

294、on.Many consumers are keen to procure renewable power to reduce costs and meet renewable purchase obligations or decarbonization targets.Increased focus on net zero emissions are key drivers for growth in renewable power procurement among corporate consumers.The introduction of a single window appli

295、cation process for open access with increased oversight from central government is expected to improve capacity additions.Interstate transmission charge waiver is expected to spur the market significantly over the next few years driven by demand from large industrial consumers.Despite increasing res

296、trictions on net metering,many states now offer multiple grid connectivity options for rooftop systems in line with central government guidelines.Group captive and behind the meter are the preferred models for adoption by the C&I market.The group captive model remains the most preferred model for la

297、rge-scale procurement as it offers the highest savings and faces relatively low regulatory barriers.Behind-the-meter systems have gained market share as consumers look to maximize installation size despite net metering policy constraints.Wind and Solar remain the dominant renewable technologies,but

298、the market is increasingly adopting wind-solar hybrid route to increase renewable penetration.Green hydrogen and storage technologies are yet to take off due to low commercial viability.However,some large consumers are procuring pumped storage power to consume round-the-clock(RTC)renewable power.OA

299、project development business has become increasingly fragmented due to increasing investment interest.Utility scale IPPs are bullish on the OA market,primarily to diversify offtake risk away from state DISCOMs.The rooftop solar CAPEX market is also highly fragmented,whereas the OPEX market is more c

300、oncentrated.Bridge to India analysis expects a total capacity addition of 47 GW over the next five years,entailing a CAGR of 23%.Capacity addition is expected to remain geographically concentrated in RE rich states such as Maharashtra,Tamil Nadu and Karnataka,which remain the most attractive markets

301、.Under-penetrated markets in Uttar Pradesh,Gujarat,Odisha,and Chhattisgarh are also expected to see more growth.Source:IEA,202102004006008001000120014001990199520002005201020152020India Electricity consumption by sector in BUIndustryTransportResidentialCommercial and public servicesAgriculture/fores

302、tryOthersSource:Corporate RE brief,Q2-2023,Bridge to India research Source:Corporate RE brief,Q2-2023,Bridge to India research,EY Analysis Improved policy outlook and net zero transition goals are driving corporate RE demandGlobal champions for advancing renewable energy innovation and manufacturing

303、 8112345678Source:JMK Research&Analytics1.Gujarat has the Fuel surcharge recovery being done separately and currently levies INR 2.60 p.u over and above the grid tariff for all consumers excluding agriculture.6.97.96.66.44.27.26.87.47.06.05.85.55.45.35.45.25.15.0012345678Rs./kwhGujaratRajasthanMahar

304、ashtraMadhya PradeshTelanganaTamil NaduUttar PradeshChhattisgarhKarnatakaGrid TariffLanded Cost(2022)As per Bridge to India analysis,India added a record 2,205 MW corporate renewable capacity in Q2 2023,up 35%QOQ.Total corporate renewable capacity is estimated to have reached 32,303 MW.The jump in c

305、apacity addition was driven by ALMM waiver,rush to complete projects before expiry of Gujarats wind-solar hybrid(WSH)policy incentives and falling solar equipment prices.The competitiveness of open access captive RE transactions for C&I consumers is likely to sustain through 2030 and witness high le

306、vels of growthGlobal champions for advancing renewable energy innovation and manufacturing 8212345678Policy enablersHarmonized adoption of green energy open access rules at state levelIt is crucial for all states in India to either adopt the Green Energy Open Access rules mandated by the Government

307、of India or formulate their own state-specific open access rules that address the challenges faced by open access consumers.By doing so,states can establish a standardized framework that ensures consistency and clarity for businesses seeking to transition to open-access arrangements.These rules shou

308、ld clearly outline the timelines and guidelines for granting approvals,providing businesses with a transparent process and enabling them to plan their renewable energy procurement effectively.Moreover,the open-access rules should incorporate comprehensive provisions regarding the reasons for rejecti

309、on of open access applications.By explicitly mentioning the grounds for rejections,businesses can have a better understanding of the requirements and take necessary measures to meet them.Additionally,it is essential for these rules to include all relevant technical information related to grid stabil

310、ity.This information should cover aspects such as grid capacity,load forecasting,and other grid parameters that impact the feasibility of open access arrangements.By providing detailed technical information,the rules can ensure that businesses have a clear understanding of the grid stability require

311、ments and can make informed decisions regarding their renewable energy procurement strategies.Long-term predictability and consistency of open access chargesForum of Regulators(FoR)plays a crucial role in developing a transparent methodology to calculate the open access charges to be imposed by Dist

312、ribution Companies(DISCOMs)in accordance with the Green Energy Open Access rules.This methodology is of utmost importance as it determines the financial implications for businesses opting for open access and procuring renewable energy directly.By establishing a standardized and fair approach,the FoR

313、 can contribute to creating an enabling environment for the decarbonization of industrial growth in India.Rationalizing the charges associated with open access is essential for fostering the transition towards a low-carbon economy.The current charges levied by DISCOMs can often be prohibitive,acting

314、 as a disincentive for commercial and industrial consumers to adopt renewable energy and reduce their carbon footprint.The FoRsmethodology should take into account various factors such as grid infrastructure investments,balancing and settlement costs,and system losses to arrive at charges that are r

315、easonable and reflective of the actual costs incurred.Global champions for advancing renewable energy innovation and manufacturing 8312345678Policy enablersCompliance and enforcement of RPO and ESO on obligated entitiesThe Government of India,along with state governments,has a critical responsibilit

316、y to ensure the effective implementation of Renewable Purchase Obligation(RPO)targets and establish clear consequences for non-compliance.RPO targets are essential mechanisms that drive the adoption of renewable energy sources and facilitate the transition to a cleaner and more sustainable energy la

317、ndscape.To ensure the success of RPO targets,it is crucial for the government at both the central and state levels to provide a robust framework for enforcement.Additionally,there should be a well-defined mechanism to monitor and assess compliance with these targets,ensuring transparency and account

318、ability.Equally important is the need to clearly define the consequences of non-compliance with RPO targets.These consequences should be proportionate and designed to incentivize compliance while also addressing any potential challenges or limitations faced by obligated entities.It is essential that

319、 the consequences are adequately communicated to all stakeholders,emphasizing the importance of meeting RPO targets and the benefits of transitioning to renewable energy sources.Demand aggregation services for RE RTC supply to OA consumersA more cost-effective approach to reduce the overall energy s

320、torage cost could involve government bodies like the Solar Energy Corporation of India(SECI)soliciting bids and establishing grid-level storage facilities.By providing a steady stream of renewable energy to energy-intensive industries,this strategy not only mitigates storage-related expenses but als

321、o supports these industries in attaining their decarbonization objectives.Predictable grid banking regulations for OA consumersTo facilitate the transition to clean energy,the government should consider introducing more lenient banking guidelines,particularly tailored to the requirements of energy-i

322、ntensive industries.Biofuels and circular economy pathways for energy securityGlobal champions for advancing renewable energy innovation and manufacturing 8512345678By 2018,ethanol blending rates reached around 4%,followed by a faster uptake in the subsequent years.As of 2021,the Government of India

323、 reported a blending rate of 8.1%.From Aug 2021 to Jan 2022,Expression of Interest(EOI)for signing Long Term Offtake Agreements(LTOA)with Dedicated Ethanol Plants for ethanol supply saw oil marketing companies(OMCs)sign 131 LTOAs.India achieved the targeted 10%ethanol blending in May 2022,much ahead

324、 of the target date of Nov 2022,and has gone on to prepone the timeline by five years to 2025 for an ambitious blending target of 20%.Indias present approach to biofuel production is dominated by 1G feedstocks(e.g.,sugarcane,rice,and maize)and has to overcome challenges from a lifecycle perspective.

325、The low yield for sugarcane and maize will require land use change,which necessitates the exploration of new production pathways.Bioethanol demand supply scenario in IndiaFeedstockCost/MT of the feedstock(Rs.)Quantity of ethanol per MT of feedstockEx-mill Ethanol Price(Rs./liter)Sugarcane juice/Suga

326、r/Sugarsyrup285070 litres62.65B Molasses13,500300 liters57.61C Molasses7,123225 liters45.69Damaged Food Grains(Broken Rice)16,000400 liters51.55Rice available with FCI 20,000450 liters56.87Maize15,000380 liters51.55The advancements in 2G bioethanol produced from lignocellulosic biomass,such as crop

327、residues,woody crops or energy grasses,are gaining momentum.Though they still represent less than 3%of total bioethanol production globally,the GHG reduction potential is higher than for 1G bioethanol.The environmental impacts of bioethanol production are dependent on feedstock availability and conv

328、ersion technology.The biochemical conversion route must overcome technological and economic challenges such as pre-treatment,fermentation,hydrolysis and separation.India has four operational advanced biofuel plants,including a pilot and a demonstration plant,with a cumulative annual production capac

329、ity of 1.75 million Liters of cellulosic ethanol.Consistent availability of feedstock from crop residues,and the establishment of a necessary infrastructure for aggregation,logistics,and handling of large amounts of biomass,all with the least carbon footprint,will be a step toward 2G ethanol product

330、ion.Source:NITI Aayog Roadmap for Ethanol Blending 2020-25Source:Final Report:Energy Transition Advisory Committee,MoP&NG,20230.00%2.00%4.00%6.00%8.00%10.00%12.00%01002003004005002013 2014 2015 2016 2017 2018 2019 2020 2021 2022Ethanol supply trend Qty.supplied(Crore Litres)Blending percentage for P

331、SUsGlobal champions for advancing renewable energy innovation and manufacturing 8612345678Waste and bio-mass sources like agricultural residue,cattle dung,sugarcane press mud,distillery spent wash,municipal solid waste,sewage treatment plant waste,etc.,produce biogas through the process of anaerobic

332、 decomposition.The biogas is purified to remove hydrogen sulphide(H2S),carbon dioxide(CO2),and water vapor,and compressed to form Compressed Biogas(CBG)or Bio-methane,which has methane(CH4)content of more than 90%.Biogas can serve as a suitable replacement for imported fossil natural gas with close

333、to net zero emissions while boosting energy security supported by competitive economics.The Ministry of Road Transport and Highways,Government of India,vide the Gazette Notification no.395 dated 16.6.2015,has permitted the usage of CBG for motor vehicles as an alternative to CNG.CBG can be used in vehicles using CNG fuel without making any modifications to the vehicle.CBG has a high potential to r