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Exploring Energy Opportunities In India. NABC Conference June 29, 2006. Indian Power Situation (April – May 2006). MW. MW. 10.7% Deficit. MW. MW. 13.1% Deficit. Energy. Demand. Power Generation in India. Met. 61% Increase. 124 GW. Current. Peak Energy. 200 GW. Goal by 2012.
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Exploring Energy Opportunities In India NABC Conference June 29, 2006
Indian Power Situation (April – May 2006) MW MW 10.7% Deficit MW MW 13.1% Deficit Energy Demand Power Generation in India Met 61% Increase 124 GW Current Peak Energy 200 GW Goal by 2012 Demand Met India’s Energy Sector - Present & Future Fuel Sources, 2006 Per Capita Consumption of Electricity • 2004 - 2005: 606 kWh / year • Currently 56% of households in rural areas are without electricity Renewable, 5% Nuclear, 3% Coal, 55% Hydro, 26% Oil, 1% Gas, 10% India needs more than $225 billion to finance energy projects from 2005 to 2012
India’s Power Sector - Major Challenges • Geo-political issues limiting access to energy supply • Power failures due to supply shortages • ~ 32.5% in transmission & distribution losses • International average is approximately 8% • Resource challenged State Electricity Boards • Inefficient and poorly maintained systems • Subsidized tariffs to residential / agricultural customers • Theft and uncollected bills • Lack of integration between power grids • Inadequate financing • Environmental concerns
Way Forward in Land of Opportunity • Address unrealized as well as unmet energy needs • Find innovative ways to diversify fuel dependency and generate power at reasonable marginal cost • Strengthen regional and national Transmission & Distribution grid to reliably move and meter supply where it is needed • Overcome geo-political and other issues to secure and transport fuel from nearby countries within South Asia or other regions • Meet the energy needs of the underserved markets in rural and urban areas to fuel GDP growth • Take a patient and realistic view of the time and effort required to solve challenges and implement long-term solutions
Potential Opportunity Rural Electrification Rationale for involvement • Underserved market • Creating and serving your own demand • Scalability and adaptability as a portfolio • Capitalization of a niche market Strategies to employ • Offer decentralized sources of energy supply using untapped, local, renewable sources including wind, solar and hydro • Potential to connect to grid in the future • Offer affordable energy efficiency and generation technologies and financing
50% of Population Domestic Product And Percentage Of Electrified Households
Regional Energy Needs *2003 Figures Total Consumption Emerging Asia: 2,914 GWh Total 2025 Demand In Emerging Asia: 7,552 GWh • Net increase in demand by 159%
The Night Sky In South Asia http://www.lightpollution.it/worldatlas/pages/fig7.htm
Potential Opportunities for Energy Imports & Exports • Gas pipelines • Transmission grids • LNG shipping • Rail transport
Typical Profile of Tara’s International Projects • Ability to leverage Tara’s extensive experience in energy and water project finance, energy trading or retail distribution • Allow Tara to be a first-mover in identifying and tapping smaller, fragmented opportunities in underserved, niche segments • Projects requiring patient capital with higher overall returns • A dynamic South Asian and American management team and investors/stakeholders that have cultural intimacy and experiences in India and the broader region • Greater tolerance for sovereign risk • Realistic expectations • Long-term commitment • Opportunity to form strong local partnerships at grass-roots level • In the U.S., Tara’s motto is “Supporting the Community” and “Supported by the Community” • Ability to create an eco-system of support and cooperation with the local stakeholders