Renewable Energy

1 For updated information, please visit 2021 Renewable Energy2 Executive Summary3 Advantage India 4 Market Overview and Trends6 Strategies Adopted13 Growth Drivers16 Opportunities 22 Key Industry Contacts26 Appendix28 Table of Contents3 Executive summaryIncreasing investment TherenewableenergyspaceinIndiahasbecomeh ighlyattractiveforinvestorsandreceivedFD IinflowofUS$ MorethanUS$42billionhasbeeninvestedinInd ia srenewableenergysectorsince2014. growth potential AsofJuly2021, , ,providingagreatopportunityfortheexpansi onofgreendatacentres. Indiaistheonlycountry,amongtheG20countri es,whichisontracktoachieveitstargetsunde rtheParisAgreement. targets In2018, ,67 GWofwindpowerand31 GWoffloatingsolarandoffshorewindcapacity by2022. Thegovernmentplanstoestablishrenewableen ergycapacityof523GW(including73 GWfromHydro) :EY Recai (November 2018) , Central Electricity Authority, MNRE, DPIIT, Livemint, IWTMA4 Advantage India5 Advantage India InJune2021, Astheeconomygrows,theelectricityconsumpt ionisprojectedtoreach15,280 TWhin2040fromthe4, Robust Demand Indiawasrankedfourthinwindpower,fifthins olarpowerandfourthinrenewablepowerinstal ledcapacity,asof2020.

2 IndiarankedthirdontheEYRenewableEnergyCo untryAttractiveIndexduetoanexceptionalpe rformanceonthesolarphotovoltaic(PV). Powergenerationfromsolarandwindprojectsa relikelytobecost-competitiverelativetoth ermalpowergenerationinIndiain2025-2030. AspertheBritishBusinessEnergy, Competitive Advantage TheIndianGovernmentaimstoachieve227 GWofrenewableenergyby2022. Thegovernmentplanstoestablishrenewableen ergycapacityof523GW(including73 GWfromHydro)by2030. InJuly2021,toencouragerooftopsolar(RTS)t hroughoutthecountry,notablyinruralregion s,theMinistryofNewandRenewableEnergyplan stoundertakeRooftopSolarProgrammePhaseII ,whichaimstoinstallRTScapacityof4, Policy Support Non-conventional Energy sector received FDI inflow of US$ billion between April 2000 and March 2021. In March 2021, Actis announced to invest US$ 850 million in India to develop two Renewable Energy platforms, one for grid-connected solar and wind power parks and the other for commercial and industrial (C&I) market.

3 By 2028, India can see investment worth US$ 500 billion in Renewable Increasing InvestmentADVANTAGE INDIA1432 Source: Central Electricity Authority, Ministry of New and Renewable Energy , Mercom India, EY, News sources, BloombergNEFNote: TWh -Terawatt Hour, PLI -Production-Linked Incentive6 Market Overview and Trends7 Renewable Energy SourcesRenewable Energy Sources (RES)Other forms of Renewable energyHydro EnergySolar PowerSmall Hydro Power (Projects 25 MW) Wind PowerBio-PowerUrban & Industrial Waste PowerBiomass PowerSource:Central Electricity Authority (CEA) *Generation capacity has increased at a healthy (1/2)Source: Central Electricity Authority (CEA), International Renewable Energy Agency (IRENA), MNREN otes: GW-Gigawatt,1 Large Hydro power projects not included as they are not included in Renewable Energy targets of GOI, 2grid interactive capacity, *-Until August 2021 TheInternationalEnergyAgency sWorldEnergyOutlookprojectsagrowthofrene wableenergysupplyto4,550 GWin2040onaglobalbasis.

4 Installedrenewablepower-generationcapaci tyhasincreasedatafastpaceoverthepastfewy ears, AsofAugust2021,India ~450 Gigawatt(GW)ofinstalledrenewableenergyca pacityby2030,with~280GW(over60%)expected fromsolarpower. Accordingtotheyear-endreview(2020)bytheM inistryofNewandRenewableEnergy, (alreadycommissionedorinthepipeline)at~ Renewable Energy1 Capacity2(GW)Installed Renewable1 Capacity2 Breakup August PowerWind PowerBio-PowerSmall Hydro9 Generation capacity has increased at a healthy (2/2) *Source:CEA, Make in India, MNRE, Mercom India, News ArticlesNote:RES - Renewable Energy Source, *Large Hydro power projects not included, SPV -Solar Photovoltaic System, MWeq -Megawatt Equivalent, FY21* -until December 2021 Powergenerationfromrenewableenergysource s(excludinglargehydro) Thecountryranksfifthworldwideintermsofth etotalinstalledwindpowercapacity. TheGovernmentofIndiaisaimingtoachieve227 GWofrenewableenergycapacityby2022,muchah eadofitstarget175 GWaspertheParisAgreement.

5 Governmentplanstoestablishrenewableenerg ycapacityof523GW(including73 GWfromHydro)by2030. SolarinstallationinIndiaisexpectedtoincr ease360%by2020. Off-gridrenewablepowercapacityhasalsoinc reased. FromApril2015tillFebruary2021, InJuly2021,theMinistryofNewandRenewableE nergy(MNRE)gavethegoaheadtoNTPCR enewableEnergyLtd.,a100%subsidiaryofNTPC ,tobuilda4,750 MWrenewableenergyparkattheRannofKutchinK havada, 'slargestsolarparktobedevelopedbythecoun try' Generation from RES* (billion units)10 Solar power generation growth likely to outweigh other sources by (1/2) Duetoitsfavourablelocationinthesolarbelt (400 Sto400N),Indiaisoneofthebestrecipientsof solarenergywithabundantavailability. Growthinsolarpowerinstalledcapacityisexp ectedtosurpasstheinstalledcapacityofwind power, ,with>25 GWofcombinedcapacity,wereapprovedinIndia untilSeptember2020. ,Maharashtra, ,asofJanuary2021. ThebiggestsolarprojectfinancedinIndiaist he709 MWNLCT angedcoPVplant-whichiscomingupatacostofa boutUS$500million.

6 AdaniGroupaimstobecometheworld slargestsolarpowercompanyby2025andthebig gestrenewableenergyfirmby2030. InJune2020, ,000crore(US$ ). InJune2021, ,00crore(US$ ) :CEA, Make in India, India Solar Handbook 2017, MNRE, Mercom India, Bloomberg NEF, Solar Energy Corporation of India, News ArticlesTop 20 state-wise solar installations in India (May 2021)RankStateCapacity (MW)1 Karnataka7, , , Nadu4, Pradesh4, , Pradesh 2, , Pradesh1, power generation growth likely to outweigh other sources by (2/2) InNovember2020,Ladakhgotthelargestsolarp owerprojectset-upunderthecentralgovernme nt s'MakeInIndia' InDecember2020, (GUVNL). Theworld' , TheNTPC isexpectedtocommissionIndia slargestfloatingsolarpowerplantinRamagun dam, InMarch2021,EdelweissInfrastructureYield Plus(EIYP),analternativeinvestmentfundma nagedbyEdelweissAlternativeAssetAdvisors ,acquireda74%stakeinthesolarportfolioofE ngieGroupinIndia.

7 InMay2021,Indiaadded2,105megawatt(MW)ofg rid-connectedsolarpowergenerationcapacit yinthefirstquarter(Q1)of2021. InJune2021, (US$ )fromtheNTPC tobuild210 MWprojectsinGujarat. InJuly2021, 's(RUMSL)solarproject(450MW)inShajapurSo larParkinMadhyaPradeshSource:CEA, Make in India, India Solar Handbook 2017, MNRE, Mercom India, Bloomberg NEF, Solar Energy Corporation of India, News ArticlesTop 20 state-wise solar installations in India (May 2021)RankStateCapacity (MW) Bengal in hydro power IndiahasovertakenJapan,becomingthenation withthefifth-largesthydropowerproduction capacityintheworldwithatotalinstalledbas eatover50GW,andisonlybehindCanada,US,Bra zilandChinaaccordingtoInternationalHydro powerAssociation(IHA). Indiahasthehydropowerpotentialofaround14 5GW,ofwhich45 GWisalreadybeenutilised. srenewableenergysources(RES)targets. , ,inthesameperiod. Anewhydropowerpolicyfor2018-28hasbeendra ftedforthegrowthofhydroprojectsinthecoun try.

8 InNovember2020, , (US$ )forthe210 MWLuhriStage-Ihydroelectricprojectlocate dontheSutlejriverinShimlaandKulludistric tsofHimachalPradesh. InJanuary2021,thegovernmentapprovedeight hydropowerprojectsof144 MWovertheIndusRiveranditstributariesinLa dakh. TheNathpaJhakriHydroElectricityStationof SatlujJalVidyutNigam(SJVN)setanewmonthly powergenerationrecord,increasingfrom1, , , :CEA, Ministry of Power, News *HydroSmall Hydro ProjectsInstalled Hydro Capacity (GW)13 Strategies Adopted14 Strategies adopted (1/2)2 DEVELOPINGRENEWABLEENERGYHYBRIDPROJECTS Hybridenergyprojectscombinetwoormorerene wablepowersources,suchassolarandwindpowe r,toreduceinconsistenciesandprovidestabl epowersupply. ,withAdaniandReNewpowerbeingkeyplayers. ,Greenko,TataPower,VenaEnergy,JSWG roup,ABCR enewables,AMPE nergyandACME. Wind-solarhybridprojectswithcapacitiesof 1, CITIES InDecember2020,thePrimeMinisterunveileda plantocreateatleastone green cityineachstatethatwillbepoweredbyrenewa bleenergysources,primarilysolarenergy.

9 Thehousesinthese green , ROUND-THE-CLOCK POWER (RTC) SUPPLY Renewableresourcessuchassolarandwindaret ime-boundandcanonlyproducepowerwhenthere issufficientsunshineandwind. Round-the-clock(RTC)supplymechanismcanov ercomethesenaturallimitationsbybundlingp owerfromothersources, ,conventionalandnon-conventionalresource scancomplementeachothertoprovideasustain ableandstablepowergrid. Suchbundledpowerissuppliedtodistribution companies(DISCOMs), :CEA, Company website, Livemint, Mercom, GOGLA, News Articles, KPMG15 Strategies adopted (2/2)5 DECENTRALISED SOLAR POWER SelcoSolarPvtLtdstartedinstallingsolarpa nelsinslumswhichwerenotconnectedtothegri dasapilotprojectin2008,andhassince, Off-gridsolarpowerisgrowingatafastpacein India,withsalesof781, ,2021 InAugust2021,theIndiangovernmentproposed newrulesforthepurchaseandconsumptionofgr eenenergy. Thelatestrulesarepartofthegovernment smeasurestoencouragelarge-scaleenergycon sumers,includingindustries,toleverageren ewableenergysourcesforregularoperations.

10 UniformRenewablePurchaseObligations(RPO) havebeenintroduced,requiringallelectrici tydistributionlicenseestopurchaseorprodu ceaspecifiedminimumquantityoftheirtotalr equirementsfromrenewableenergysources. Therulesmandatethattheelectricitygenerat edistobeusedfortheplant TOWARDS NON-CONVENTIONAL Energy India sleadingconventionalenergyproducersaresh iftingtowardsnon-conventionalenergyresou rcestoachievetheirsustainabilitygoalsand contributetowardsgeneratingcleanenergy. AspertheCentralElectricityAuthority(CEA) estimates,by2029-30,theshareofrenewablee nergygenerationwouldincreasefrom18%to44% ,whilethatofthermalisexpectedtoreducefro m78%to52%.Source:CEA, Company website, Livemint, Mercom, GOGLA, News Articles, KPMG16 Growth Drivers17 Renewable Energy growth drivers PrimeMinister, ,initiallysetthetargetofinstalling175 GWofrenewableenergycapacityby2030buthasn owincreaseditto450GW. InApril2021,theCentralElectricityAuthori ty(CEA)andCEEW sCentreforEnergyFinance(CEEW-CEF)jointly launchedtheIndiaRenewablesDashboardthatp rovidesdetailedoperationalinformationonr enewableenergy(RE)projectsinIndia.