Renewable & Conventional Energy

The Renewable Energy sector is expected to play a crucial role in promoting the country's Sustainable Development. Over the years, India has fared well in the development of its Renewables Portfolio from 3.5 GW in 2002 to nearly 41 GW in January, 2016. Energy and peak demand shortages focus on access to electricity for all and fuel supply constraints for thermal power plants - this combined with huge untapped potential and ambitious capacity addition targets has further shifted the focus of policymakers towards the development of the renewable energy sector in the last decade.

 

For India, the Renewable Energy is not just an important driver for low-carbon growth but also a sustainable solution for electrification in remote locations. Therefore, the Government of India has significantly increased its focus on the development of renewable energy sources to help the country achieve energy security and reduce the adverse environmental impact of fossil fuels.

 

Renewable Energy forms 13% of India's total installed power capacity, indicating that the country is progressively moving towards its National Action Plan for Climate Change (NAPCC) renewable energy target.

 

CRISIL Infrastructure Advisory team works extensively with various stakeholders:

  • Project Developers - both Indian and foreign
  • Private equity investors
  • Commercial banks and financial institutions
  • Policy makers
  • Governments - central and state
  • Nodal agencies
  • Regulators
  • Industry associations
  • Non-government organisations
     

Our services include
 

Market Evaluation and Transaction Advisory 

 

The recent policy has attracted both domestic and international investors towards the Indian renewable energy market. However, with policy/regulatory framework varying across the states and with the presence of various investmentopportunities, it is important to evaluate investment options based on targeted risk profile and return expectations of the investor. 

 

We  provide services to investors and dedicated funds interested in evaluating potential renewable energy markets or explore investment opportunities in renewable energy segment. CRISIL assists investors in identifying suitableinvestment opportunities, undertaking technical, commercial and legal due diligence, formulating suitable investment strategy and supporting in transaction advisory.

Project Structuring and Power Sale

 

The current electricity market structure in India offers several power sale models for commercialisation of the renewable energy projects. In order to maximize returns to potential investors various market models needs to be evaluated.Besides, the power sale model should also address varying requirements of clients. 

 

We provide services to RE developers in evaluating various power sale options and suitable project structuring requirements. We also assist clients in development and negotiation of various contracts PPA, SHA with the counterparty.

Policy Framework

 

The policy frameworks announced by the state and central governments are key drivers of development of renewable energy (including hydro power) in India, especially the recent policy push for development of 175 GW of renewable energy by 2022. Various states are also structuring their policy framework towards this target. 

 

We offer advisory services to both central and state governments to devise suitable policy framework for promotion of renewable energy as well as other clear energy sources like hydro power. It also advises the other non-government organisations to prepare the policy road map and roll out plan for the development of various renewable energy sources.
 

Regulatory Analysis

 

The Electricity Act 2003 is the pioneer legislative framework for development of renewable energy in India. The Act introduced provisions related to promotional measures for development of renewable energy including grid connectivity, specifying feed-in tariff and renewable purchase obligation, etc. The Act also directs Electricity Regulatory Commission (both state and central) to structure regulations taking into account the mandate to promote renewable energy. 

 

We offer services to Regulatory Commissions for formulating appropriate Regulations/Orders for promotion of renewable energy including grid connectivity, renewable energy certificates, feed-in tariff and renewable purchase obligations, etc. We also offer services to utilities and investors, to understand the implications of regulatory framework and support them in early adaption to those regulations.

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Questions?

  • For any infrastructure services related queries, please contact:
    +91 22 3342 1918
    infrastructureadvisory@crisil.com