Renewable Energy Options for the Indian Railways

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

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

3. Electricity fuel mix

4. Historical Perspective

5. Indian Railways Vision 2020 “At least 10% of its total energy to come from renewable sources such as solar power, wind, and biomass etc.”

6. 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.

7. …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

8. RET scenario worldwide

9. India on global scale

10. …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

11. Grid connected RETs in India

12. Grid Electricity

13. RE for decentralized applications

14. Types of applications • Traction • Locomotive fuels • Electricity • Non-traction • Stations • Workshops • Manufacturing facilities • Centralized kitchens • Signals • Automated ticketing

15. Renewable energy technologies • Solar energy • Wind energy • Bio-energy

16. 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.

17. Wind energy • On-site power generation • Off-site power generation

18. Solar energy • Roof-top solar PV plants • Solar PV plants along the tracks • Concentrating solar thermal power plants (off-site) • Stand-alone systems

19. …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

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

21. … 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

22. Jawaharlal Nehru National Solar Mission

23. 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.

24. …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

25. Thank you! www.teriin.org akumar@teri.res.in