1 Renewable Energy Options for the Indian Railways Amit Kumar TERI, New Delhi December 21, 2011.

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Renewable Energy Options for the Indian Railways

Amit KumarTERI, New Delhi

December 21, 2011

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Outline

India’s energy scenario Historical perspective Rationale for renewables Renewable energy scenario Type of applications Potential applications Enabling environment

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Electricity fuel mix

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Historical Perspective

1997/1998

1998/1999

1999/2000

2000/2001

2001/2002

2002/2003

2003/2004

2004/2005

2005/2006

0

2000

4000

6000

8000

10000

12000

Electricity usage

Non TractionTraction

Year

Million kWh

1997/1998

1998/1999

1999/2000

2000/2001

2001/2002

2002/2003

2003/2004

2004/2005

2005/2006

0

500

1000

1500

2000

2500

High Speed Diesel usage

Non TractionTraction

Year

Million Litres

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Indian Railways Vision 2020

“At least 10% of its total energy to come from renewable sources such as solar power, wind, and biomass etc.”

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Why renewable energy?

• The demand for energy in the country has been growing rapidly.– It has been estimated that by 2031, India’s

energy needs would be about seven times that of 2001 levels.

• The current trends indicate clearly that the country would be facing constraints in indigenous availability of conventional energy resources.

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…Why renewable energy?

• Environmental concerns– Climate change– Local environmental aspects

• Fuel diversity– In today’s environment, there is a need for a

broad variety of resource options: • Ranging from conventional fossil alternatives to

renewable (low-risk) energy ones• Renewables have minimal operating cost risk

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RET scenario worldwideIndicators 2008 2009 2010

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India on global scale

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…India on global scale

• 8th in total clean energy investment (SEFI-Bloomberg Report, 2009)

• 5th in total renewable power capacity and wind power

• 2nd in annual wind power addition in 2010• 3rd in annual solar hot water heating

systems

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Grid connected RETs in India

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Grid Electricity

RE for decentralized applications

Types of applications

• Traction– Locomotive fuels– Electricity

• Non-traction– Stations– Workshops– Manufacturing facilities– Centralized kitchens– Signals– Automated ticketing

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Renewable energy technologies

• Solar energy • Wind energy• Bio-energy

Traction

• Indian Railways uses approximately 2 million tonnes per annum of diesel.

• Indian Railways owns large area of land.• Bio-crops can be cultivated along the rail

tracks and other land available.• It is estimated that the railways can produce

enough bio-diesel to replace about 5 to 10% of its diesel requirement.

• IR can also deploy off-site RE power plants to supply its electricity needs for traction.

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Wind energy

• On-site power generation• Off-site power generation

Solar energy

• Roof-top solar PV plants• Solar PV plants along the tracks• Concentrating solar thermal power plants

(off-site)• Stand-alone systems

…Solar energy

• Electricity/lighting– Signaling– Automated ticketing machines– Station lighting– Communication and computing system– Un-manned crossings

• Thermal– Solar water heating– Solar steam cooking– Solar air-conditioning

Enabling environment

• Regulatory facilitation– Feed – in tariff– Renewable Energy Certificates– Access to grid– Wheeling of electricity– Banking of electricity

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… Enabling environment

• To encourage investment in the sector; the Government provides many different types of incentives:– 80% accelerated depreciation in 1st year– IT section 80 I A: 10 year IT holiday– Generation Based Incentive– Exemptions in duties and taxes– Exemption from payment of electricity duty– Exemption from demand cut

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Jawaharlal Nehru National Solar Mission

Sl

No

Application TargetsPhase 1 (2010 – 13) Phase 1 (2013 – 17) Phase 1 (2017 – 22)

1 Solar Thermal Collectors

7 million square meters

15 million square meters

20 million square meters

2 Off Grid Solar Applications

200 MW 4000-10000 MW 20000 MW

3. Grid Power including roof top and small plants

1100 MW 4000-10000MW 20000MW

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Provisions under JNNSM

• Policy and Regulatory Framework promoting solar power– Renewable Purchase Obligations of Solar

power for utilities in a state. REC mechanism to facilitate this.

– Feed in Tariffs fixed by CERC and revised yearly. CERC stipulates that PPAs must be for 25 years.

– Bundling of power by NVVN.

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…JNNSM

– Generation Based Incentive payable to project owner under Small solar and Rooftop program (by distribution utility).

– Capital Subsidy on benchmark cost for off-grid and decentralized solar applications.

– Soft loans at 5% interest rate from IREDA– Accelerated Depreciation and Tax holiday

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