indo-nordic sustainable innovation technology platform – introduction

INDO-NORDIC SUSTAINABLE INNOVATION PLATFORM

October, 2014

Connecting Companies with Partners and Project Opportunities in India

Supported by

• Part I

– Challenges and Opportunities in india, the Platform and IL&FS

• Part II

– Sectoral over view and related project profiles

2

Contents

Part I: Over view challenges and Opportunities, the Platform and IL&FS

• India faces significant challenges in Infrastructure, such as Water, Energy,

Environment, etc

• The Nordic countries have developed significant know-how and technologies in these

sectors

• No integrated, seamless, “end-to-end” delivery mechanism for Nordic companies to

work with India

• The aim of Indo-Nordic Sustainable Innovation Platform (IN-SIP): to provide a

delivery platform for Nordic companies to work with India in Technology, Innovation

and Investments for addressing Infrastructure Challenges

4

Introduction

Innovative solutions - to solve development challenges and enable growth

The Context

6

The Indian Context

• 4th largest economy in world when adjusted for

purchasing power parity

• Large Domestic Market:

– 560 million consumers in 20-49 age group

expected by 2015

• Human capital :

– Third largest pool of scientific & technical

manpower

– Large English speaking population

4 362

8 014 9 778

8,9%6,5%

5,7%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

-

2 000

4 000

6 000

8 000

10 000

12 000

10th Plan (2002-07) 11th Plan (2008-12) 12th Plan (2013-17)

GDP at current prices, US$ billion

Average annual growth rate, %

Planned Infrastructure investments are doubling

every five years

Lack of infrastructure as a key impediment to

growth of the economy

The government is encouraging private sector

participation through public private partnerships

(PPPs)

Private sector investment projected at 50% for the

12th plan period

227 514

1 025

5.2%

7.6%

9.9%

0%

2%

4%

6%

8%

10%

12%

-

200

400

600

800

1 000

1 200

10th Plan 11th Plan 12th Plan

Infrastructure Investments, US$ billion

Infra Investments as % GDP, %

Strong economy growth over past decade, increased infrastructure investments

• Home to about 416 million people living below poverty line1 (defined as less than $1.25/day)

• India faces a steep challenge in the years to come — to grow socially and economically.

7

Infrastructure Gaps Leads to Major Development Challenges

1 Source: UNDP Human Development Report 2013, 2 Source: Water Aid, Others: Intellecap Research

Energy

• Over 400 million have no connection to the national grid

• 33% of rural population lack access to electricity

Healthcare

• India has a shortage of 1.4 million doctors and 2.8 million nurses

• While over 70% of India’s population is rural, 70% of doctors are urban

Water and

Sanitation

• 300 million people lack access to safe drinking water

• Over 186,000 children under five die from diarrhoeal diseases every year2

• 780 million don’t have access to adequate sanitation

Roads • 40% of India’s villages not connected to a road

Agriculture

and rural

business

• Productivity per acre in India is around 25% of that in developed countries

• 30% of fresh farm produce gets spoilt due to lack of logistics support

8

Recent Government Initiatives

8 National Missions(solar, energy efficiency,

sustainable habitats, etc.)

- adapt to climate change,

enhance ecological sustainability

National Action Plan on Climate Change

(NAPCC)

India Inclusive Innovation Fund (IIIF)

Delhi-Mumbai Industrial Corridor

(DMIC)

~$833 million over next 2 years

- combine innovation and

dynamism of enterprise

US$ 85-90 billion,

highways, railways, ports,

airports, smart Cities, etc.

-Global investment + manufacture

destination

9

Recent Government Initiatives

USD 10 bn

river rejuvenation +activities

such as water and waste

management etc

National Mission on Clean Ganga (NMCG)

Smart Cities Initiatives National Solar Mission

~$1,250 million

initial corpus earmarked for smart

technologies, green

infrastructure etc

20,000 MW by 2022

Aimed to make India global

leader in Solar power

GOI : Government of India

Infrastructure an opportunity for both technology and investments

Trillion Dollar investments required over next 7- 10 years

~ 50% to be private funded (~ $ 500 bn)

1 Source : Planning Commission, Confederation of Indian Industry (CII)

Industrial energy efficiency

• Investment opportunity of $ 82.5Bn leading to annual savingpotential of $ 607 Mn

Green Buildings

• 10 Bn sq. ft. of green buildings to be set-up by 2022

Renewable Energy

• 20,000 MW solar energy capacity by2022

• By 2020 the wind industry will seeinvestments €7.2 billion per year

• Pipeline of other renewable energyprojects present huge investmentopportunity

Cleaner Conventional Energy Technologies

• Govt. target: 50% of new thermalpower generation capacity based onclean coal technologies

10

The Opportunity Landscape

• India aspires to reduce emission intensity of its economy by 20-25% by

2020. Numerous investment opportunities are likely to emerge in the key

sectors 1. For example,

10

Water Purification

• Water demand expected to rise by50% from 2010 to 2030

• Public spending on WaterProduction: USD 2 bn per annum

• Contamination a serious challenge

Waste to Energy

• Top 25 cities by populationin India generate over 500TPD of MSW

• Investment potential USD 2 bn

Lake Cleaning

• Govt of India has launched a National Lake Conservation Program with an annual budget of USD 200 Mn

Waste management

• Of 48 mn tonnes of MSW and 0.8 MT e-waste generated annually, hardly 19% and 3% respectively is processed

Urban infrastructure

• USD 784 Bn estimated investments in urban infrastructure over next 20 years

• 2.5 bn sqm of roads to be paved, 20 times the capacity added in the last 10 years

• 7400 kms of metros and subways will need to be constructed

11

The Opportunity Landscape…2

11

Creating a Platform for Channelizing

Innovation

Support & Value-

add to Nordic

Companies

An Example

Project : Fluoride mitigation in the State of Rajasthan

Opportunity : Cutting edge technology to eradicate fluoride from 6 villages

with expansion plan.

Swedish biological water purification technology

Specialize in development with 20-35 year O&M

life cycle savings for the State

IL&FS and Platform support:

• Coordination with State agencies

• Highlight the problem and solution- to Gov

• Finalizing 6 pilot sites with the State Gov.

• Advice on Commercial structure

• Assisting in permissions and approvals

Sample of How the platform has Supported Nordic Innovation

14

• There is an immense opportunity for Partnerships between Indian and

Nordic companies having innovative solutions

• In line with the national agenda of “Faster, More Inclusive and Sustainable

Growth”

Opportunity for both Innovators and Investors

`Transportation, Mobility and

LogisticsEnergy Water

Waste Management & Recycling

Health & SanitationSustainable Urban

Development & Regeneration

Cluster DevelopmentEnabling

Technologies

14

15

Sustainable Innovation Platform – A Holistic Approach

Technology and Innovation Platform

Advisory

Network of Academia

Partnerships Development

Implementation

State Government

Support

A US$ 1 bn Sustainable

Impact Investment

Development Fund

Projects

• Platform to structure appropriate frameworks for partnerships with Nordic Companies

• Possible Financing through proposed IL&FS Environment & Infrastructure Innovation Fund

USD 1 billion managed by IIML, the PE arm of the IL&FS Group

The Platform has the following objectives :

• Supporting cutting edge technologies and best global practises

• Connecting Nordic companies and institutions with their Indian counterparts

• Hand holding these initiatives through finance and linkages

• Reduce overall business challenges and risks of doing business in India

16

The Sustainable Innovation Platform

16

• The Nordic companies will receive support to execute projects in India

Sustainable

Innovation &

Technology Platform

Academia for Applied

ResearchAdvisory Group

IL&FS and Others

Projects

USD 1 bn

Sustainable-Impact

Development Fund

State Government Support Implementation

Collaboration with

Leading Nordic

Universities and

Institutions

Innovative

technologies /

Solutions/

Services

Agencies

Pension Funds

Sovereign

Wealth Funds

17

Proposed Innovative Platform

17

Indo-Nordic Sustainable Innovation Platform

18

IL&FS International Footprints

18


IL&FS Eco & Value System

Earliest Infrastructure

Developers

• Formed in 1988

• Initial participants were Indian Banks and Institutions - Central Bank of India,

Housing Development Finance Corporation, Unit Trust of India

• International and Domestic Institutional Investors inducted over the years - ORIX

Corporation (Japan), Abu Dhabi Investment Authority, LIC of India, State Bank of

India. Earlier stakeholders include : IFC, GIC Singapore, HSBC

Unique Positioning

• Multiplicity of roles : As sponsor, developer, advisor, and financier

• Promoted over 50 sector dedicated Special Purpose Vehicle companies

• Infrastructure projects under development in excess of US$25 billion

• In-house capabilities to take projects from ‘concept’ to ‘commissioning’

Pioneering

Development Role Play

• Promoted India’s first private sector toll road and water supply project

• Sponsored India’s first infrastructure focused PE fund with AIG

• Early entrants in niche growth areas like waste management, renewable energy,

education with a strong social orientation

Strong Partnerships• Robust initiatives with Government (RIDCOR, GIFT, JV with NSDC, etc)

• Strong partnerships with PSU and Corporates (Mangalore SEZ with ONGC, etc)

19

Infrastructure Business Broad Overview

A Diversified Infrastructure Platform

IL&FS caters to the complete life cycle from policy advisory, project conceptualization,

advisory, development and operation

Transportation

ITNL

Energy

IEDCL

Maritime

IMICL

Social

Infrastructure

IETS, IEISL,

IWL, IEL

Pioneer of BOT

Projects

Largest Road Network

Company (~12,000

kms)

Also forayed into

Metro Rail, Airport and

Bus Networks in

Europe

17,000 MW under

Development

1,000 MW Operational

2,100 MW under

construction

Strategic ownership of

Ports and Port

Infrastructure projects

Educational Services,

e-governance &

vocational training.

Waste Management.

Water Treatment,

Composite Financial Services Platform

IL&FS Group offers a Spectrum of Services across the Financial Services Landscape

IL&FS

Investment

Managers Ltd

Management

of Private

Equity Funds

IL&FS

Financial

Services Ltd

Corporate

Finance

Project

Finance

Investment

Banking

IL&FS Trust

Company

Limited

Trusteeship

& allied

activities for

Mutual

Funds, PE

Funds, Banks

IL&FS

Securities

Services

Limited

Clearing

Services

Security

Custodian

Services

Depository

Services


Sustainable Infrastructure

Energy

Waste

Housing

Clean Air

Transportation

Clean water

Water Purification,

Hazardous Effluent

Treatment etc.

Clean diesel,

Green

construction

materials

Small Hydro

Wind, Biomass

Solar, Energy

Efficiency

Solid & e-waste

Recycling,

Dumpsite Closure,

Waste to Energy

Green Buildings,

Related

Technologies

Green fuels

22

IL&FS in Sustainable Architecture

22

• Key Takeaways

23


To accomplish Sustainability Agenda, India needs inflow of both Innovative Ideas and long term Capital

A US$ 1 bn Environment & Infrastructure Innovative Fund will enable Long term Capital flows to support sustainable and environment projects in India

An ecosystem of academia-to-academia partnership, company-to-company technical collaborations supported with financial capital make a compelling logic for participation

The IL&FS network brings strong Government partnerships, potential project flows, given the nature of its existent businesses and its stellar reputation within the industry

Part II: Sectoral over view and related project profiles

IN-SIP Innovation Challenge: Focus Sectors / Themes

ENERGY

Water & Waste Water

Water Supply

Water Treatment

Ground Water Decontamination

River/Lake Rejuvenation

Waste Water Treatment

Waste & Recycling

Construction & Demolition Waste

Municipal Solid Waste

Bio-remediation of Landfills

Electronic Waste Recycling

Hazardous Waste

Waste to Energy

Air & Environment

Air Purification & Pollution prevention

Reclamation of Degraded Lands

Urban Habitats

Smart Cities

Retrofitting and Renewal

Green Energy

Solar Energy

Wind energy

Biomass Energy

Geothermal Energy

Hydro energy

Energy Infrastructure

Transmission Networks

Smart Grids

Energy Storage

Energy Efficiency

Energy Saving Technologies

Low Energy Buildings

ENVIRONMENT

25

Focus Sector:

Water and Liquid Waste Management

• Produced water increase from 56 billion m3 to 73 billion m3 by 2015

• 69% of ground water is contaminated by minerals such as arsenic, fluoride, lead,

iron, nitrates, etc

• Distribution losses per annum are 1000 Bn litres

• Key challenges

– Distribution losses raging from 15-60% , energy supply limited 4- 16hrs/day

– Most of the existing technologies have a short life-span of 2-3 years

– Govt evaluate technologies based on investment

– Significant portion of distribution networks are more than 20 years old.

– Market looking for end to end solutions – provided by very few players

– Non-functional metering devices and appurtenances

• Potential

– Market at a very nascent stage in India – huge potential for growth

– Public Spending on Water Production in India – USD 2 bn per annum

– For new technologies such as leak detection, lining / retro fitting of new networks

27

Water Purification and Distribution:

Annual healthcare spend of affected population is USD 2 Bn

Waste water Management

• Total waste water generated: 40,000 MLD

• Total waste water treated in Indian: 12,000 MLD

• Untreated waste water: 28,000 MLD

• Key challenges

– Reliance on conventional technologies with

chemical inputs

– High installation and operating costs

– Hazardous sludge waste generation and safe

disposal

• Potential

– Market at a very nascent stage in India – huge

potential for growth

– Public Spending on Liquid Sewage treatment in

India – USD 2 bn per annum

28

Lake Cleaning

• Total no. of major Lakes in India: 58

• Approx. investments in next 2-3 years USD 200 Mn

• Key challenges

– Inadequate sanitation and sewerage management

turning urban water bodies into cesspools

– Focus only on superficial aspects – removal of algae,

shoreline beautification

– Most water bodies under the charge of local

municipalities, who lack capacity to undertake

conservation activities

– Lack of receptiveness to new technologies

• Potential

– Govt of India has launched a National Lake

Conservation Program with an budget of USD 200 Mn

– Increasing awareness for the need to conserve such

water bodies, which acts as ground water recharges

29

Related Project Profiles

Project

Division

Tamil Nadu Water Investment Company (TWIC)

Project Waste Water Reuse, Chennai, Tamil Nadu

Project size 90 MLD plant with an estimated value of contract ~USD 110 Mn

Challenges • Varying qualities of secondary treated waste water

• Presence of inerts material

• Disposal of rejects

Requirement

of

Technologies

• Technology to remove nutrients from the secondary treated waste

water before putting into UF/RO

• Treating water for industrial use grade

• Advanced technology of Anerobic Digestion and associated

equipments such as Digesters, Gas-holders, Scrubbers and Gas

Engines

Structure • EPC/ PMA/ O&M

Future

potential

Across Indian towns/ cities and peripheral rural areas

Waste Water Reuse from STP

90 MLD STP

31

Project

Division


Project Treatment of domestic waste water with reuse

Project size 100 MLD plant -estimated value ~USD 15 Mn

Challenges • Varying quantity of silt / organic matter / nutrients

• High cost of treatment

• Disposal / reuse of sludge

Requirement of

Technologies

• Cost effective technology- Rs.5/- per KL (USD 0.1 per KL)

• Technology for decentralized system with improved primary

treatment

• Cost effective secondary treatment

• Direct reuse without tertiary treatment for urban landscaping

Structure EPC/PMA/O&M/Reuse management

Future potential Across Indian towns/ cities and peripheral rural areas

Waste Water Reuse

100 MLD Domestic Waste Water Treatment

32

Project

Division


Project Sea Water Desalination, Chennai, Tamil Nadu

Project size 6 plants aggregating 735 MLD - estimated total value

~USD 1,000 Mn

Challenges • Varying qualities of in-put seawater

• Disposal of rejects and effluents

• High power consumption

Requirement

of

Technologies

• Purify levels of above 35000 TDS

• Non- RO systems

• Lower Power consumptions (reduce the power cost by

25% - 30%)

• More efficient technologies for pre-treatment and cost

effective membranes

Structure • EPC/ PMA/ O&M

Future

potential

Scaling-up in coastal cities/ towns in India

Desalination of Sea Water

Drinking Water Augmentation 735 MLD

33

Project

Division


Project Distribution of treated water on 24x7 basis

Project size 800 MLD distributed over 16 zones spread over 170 sq km with an

estimated value of contract ~USD 25 Mn

Challenges • High level variations in supply pressures and quantities in the

distribution pipeline

• Intermittent system of supply

• Absence of volumetric measurement and electronic billing

Requirement

of

Technologies

• Improved technologies for equitable and reliable distribution of

water, to reduce distribution and billing cost

• Cost effective systems incl GIS, AMR and web based

applications for billing and revenue collection

• Remote monitoring mechanisms of water leakage or losses

Structure EPC/PMA/O&M / Revenue Collection

Future

potential

Across Indian towns/ cities and peripheral rural areas

Potable Water Distribution

800 MLD Water Distribution

34

Project

Division


Project Replacement of old/ dilapidated pipelines without open digging

Project size ~1,000 km of transmission mains -estimated value ~USD 15 Mn

Challenges • Difficulty in replacement of the service pipelines within the life cycle

and hence experiencing sudden collapse

• Restoration and rectification becoming very difficult and more

costly

• Reduce service levels and more consumer complaints

Requirement

of

Technologies

• Seeking advance technologies in trench less methods for

replacement and rehabilitation of pipes or lining

• Cost effective methods with minimum down time

Structure EPC/PMA/O&M

Future

potential

Very large network length across all Indian cities

Trenchless Rehabilitation of Pipes

1,000 km Transmissions Mains

35

Project

Division


Project Treatment of brackish or contaminated ground water

Project size Multiple decentralized plants of 10-15 MLD capacity

Challenges • No alternative sources available for augmentation of drinking

water supply

• Continuous replacement of media every 2-3 years

Requirement of

Technologies

• Cost effective technologies using ground water as source

• Low O&M costs incl. low power consumption

• Minimum back-wash and generation of sludge


Future

potential

70% of Indian water supply uses ground water as main source

Ground Water Management

Brackish/ Ground Water Treatment

36

Project

Division


Project There are no. of smaller capacity surface water sources namely

ponds and lakes are available all over Tamil Nadu which are either

not fit to be used as drinking water source or not bridging the

demand supply gap for want of better technological solutions. The

project envisages go in for an effective remediation procedure

adopted so as to ensure the water is made available for

consumption

Project size ~200 Lakes of up to 1,000 ha with an estimated value of contract

~USD 50 Mn

Challenges Spread over entire state and hence requires attention at micro level

which may not be possible by the local bodies concerned

Requirement

of

Technologies

Technology for treatment of influents and removal of vegetation,

algae, weed control, artificial aeration


Future

potential

Implementation through TWIC at all India level

Lake Remediation

Water Augmentation and Eco-Restoration

37

Focus Sector:

Solid Waste Management

Construction & Demolition Waste Management

• Total C&D Waste generated annually in India : 10-12 Mn tonnes

• C&D waste generation is about 20 % of Municipal Solid Waste (MSW) generation

• Key challenges

– Lack of scientific methods and technologies for disposal of C&D waste

– Environmental degradation of water channels, open spaces and urban lands

– Reduces life span of landfills used for municipal solid waste

– When mixed with MSW it hinders processing of the MSW

– Standards for products from processing waste to be developed

• Potential

– Each Local body mandated to set up its own C&D waste disposal facility, but progress very

tardy

– Restrictions on use of naturally occurring building materials leading to a shift to use of

recyclable components and materials

– Construction sector accounts for 11% of India’s GDP

39

Municipal Solid Waste (MSW) Management

• Municipal areas generate 133,000 tonnes of MSW

every day in India

• Only 70 % of MSW is collected, and only 19 % is

processed and treated

• Key challenges

– Lack of scientific methods and technologies for

disposal of MSW

– Environmental degradation of ground water and air

– Lack of adequate budgets with Municipal

Corporations for scientific processing and disposal

• Potential

– Huge potential to set up MSW processing plants

– Waste to Energy plants for large cities as they

minimize the post processing rejects which need to be

land filled

40

Electronic Waste Management

• Total Electronic Waste generated annually: 0.8 MT

• Hardly 3% of E-waste is processed and recycled

• Key challenges

– Lack of scientific methods and technologies for disposal

of E-waste

– E-waste processing largely confined to unorganised

sector

– Environmental degradation of soil, water channels and

water bodies

• Potential

– Electronic Manufacturing, one of the fastest growing

industry in the country, estimated at USD 150 Bn

– Higher rate of obsolescence leads to more e-waste

generation

– Law for extended producer responsibility under revision

41

Hazardous Waste Management

• Currently Hazardous waste is typically sent to a scientific landfill

• Some of such waste is incinerated in cement plants

• Key Challenges

– Appropriate technology

– Cost Effectiveness

• Potential

– Would depend on the treatment technology and their cost effectiveness

42

Waste to Energy Initiatives

• Severe shortage of land for creation of land fills

• Waste to Energy, reduces the MSW volume by 90 % and hence is to be preferred

method of processing waste water in large cities

• Key Challenges

– Technology, especially for pollution control and combustion

– Investment, tipping fees and/or preferential electricity tariff

• Potential

– The largest 25 cities generate > 500 TPD of MSW

– Investment potential USD 2 billion

– Government in favor of waste to energy projects

43

Upgrading Bio gas to Auto gas

• Sewage Treatment Plants (STPs) currently have methane generated from

processing

• Few STPs have tried to convert gas & power with limited success

• No trials for converting gas to Auto-gas.

• Key Challenges

– Conversion of STP gas in to Auto gas (compressed bio-gas) by removing CO2 and H2S

– Supply of technology

– Setting up a plant

• Potential

– Major STPs

– Biomethantion plants

44

Bio remediation of Dumpsites

• Bulk of the MSW has been dumped

outside cities

• Many of such dumpsites have reached

their capacity and new land is difficult

to procure

• Key Challenges

– There is a strong need to remedy such

dumpsites to reclaim land for making

scientific landfills which can accept

fresh waste as well

– Cost effective technology for

remediation

• Potential

– Remedying dumpsites in the 6 major

cites alone would result in a significant

business potential

45

Project

Division

IL&FS Environmental Infrastructure and Services Ltd.

(IESIL)

Project Collection and Transportation of MSW, New Delhi

Project size 1240 TPD with an estimated value of contract ~USD 14 Mn

Challenges • Manpower requirement in collection

• Lack of monitoring systems and access to technology

• Segregation at source not practiced

Requirement

of

Technologies

- Improved operation efficiency: reduced cycle time, fuel

efficiency and unit cost reduction

- Robust equipment with lower lifecycle cost

- Effective operations in high density areas

- Bin filled alerts

- Compaction technologies

- Bin washers

Structure PPP (BOT) or EPC with O&M

Future

potential

Approx. 53 cities with Million Plus population to undertake

such projects

Waste Management

Municipal Waste Collection and Transportation

47

Project

Division


(IESIL)

Project Reclamation of Dumpsites and Creation of New Landfills,

New Delhi

Project size ~4.5 Mn tonnes waste with an estimated value of contract

~USD 15 Mn

Challenges • Existing dumpsite is 26 ha, approx. 4.5 Mn tonnes,

• no additional land is available for waste disposal

• High Land prices

Requirement of

Technologies

• Technology for landfill mining, mineral extraction,

compaction etc.

• Cost effective technology to reclaim land and find use for

the products mined from the dumpsite


Future potential Approx. 53 cities with Million Plus population to undertake

such projects

Waste Management

Reclamation of Landfills

48

Project

Division


(IESIL)

Project Waste to Energy Plant, Gazipur, New Delhi

Project size 2,000 TPD with an estimated value of contract ~USD 10 Mn

Challenges • Segregation of waste

• Composting of organic waste

• Transportation of organic rejects uneconomical

Requirement

of

Technologies

• Technology for anaerobic digestion to produce methane

gas and fertilizer from organic rejects separated from

mixed waste

• Ability to treat organic material separated from mixed

waste (400 tons per day of organic material)


Future

potential

Approx. 53 cities with Million Plus population to undertake

such projects

Waste Management

2,000 TPD Waste to Energy Plant

49

Project

Division

IL&FS Environmental Infrastructure and Services Ltd. (IESIL)

Project Integrated Waste to Energy Plant (15 MW), Kanpur

Project size 1500 TPD with an estimated value of contract ~USD 10 Mn

Challenges • Existing technology unable to meet large capacity requirements

• Technology to enhance sealing of furnace and fuel feeding connections

to enhance operational stability

Requirement of

technologies

• RDF (Refuse Derived Fuel) feeding system with adequate sealing

mechanism

• Boiler with low steam parameters (WtE)

• Flue gas cleaning system meeting pollution control requirements

• Efficient Turbine Generator sets , improved boiler steam parameters

• Boiler technology based on CFBC boiler designs suiting Indian Waste

characteristics


Future potential Approx. 53 cities with Million Plus population to undertake such projects

Waste Management

15 MW Waste to Energy Plant

50

Project

Division


Project Dismantling Metal Extraction Technology, Alwar, Rajasthan

Project size 20,000 TPA - estimated value of contract ~USD 4 Mn

Challenges - Access to to Viable technology

Requirements of

technology

• Dismantling and Segregation

• Metal Extraction (3,000 PTA Metal Extraction process)

Structure PPP or EPC with O&M

Future potential 10 large cities in India, regulatory pressure to help

E-Waste Management

20k Tonnes/ Year Dismantling & Metal Extraction Plant

51

Focus Sector:

Renewal Energy and Smart Grids

Renewable Energy in India

• Installed Capacity : 32,270 MW (29% of overall energy capacity)

• Only 13% of the total potential has been tapped

• Most developed RE market in South Asia, with revenues of USD 185 bn

• Key challenges / Issues

– Pricing of RE higher than non-conventional energy sources

– Quality & consistency due to fluctuating nature (wind, solar & small hydropower)

– Need for low cost financing

– Slow progress of implementation & reforms of rural electrification

• Potential

– Huge untapped market potential for RE in India: 217,000 MW

– GoI targets RE capacity of 41,400 MW by 2017,

– A business opportunity of USD 10.5 Bn

53

Solar Energy

Estimated investment of USD 20 bn over a 30-year period

• Potential Capacity: 5000 trillion KwH per year

• Average Solar incidence: 4 – 7 Kwh/sqm/day with 300-330 sunny days

• Estimated Solar Energy Potential: 100,000 MWeq

• Grid connected capacity installed: 1035 MW


– Huge land requirement

– Assessment of solar resource, site selection and technology

– Storage and Amenability to Grid connectivity

• Potential

– National Solar Mission of GoI entails a capacity addition of 20,000 MW grid connected

Solar power by 2022 and 200,000 MW by 2050

– Plans to develop ultra-mega solar projects will help showcase the potential on large scale

54

Wind Energy

• Wind Potential: 45,000 MW

• Present installed capacity : 21,700 MW

• Wind energy comprises 8% of the total

power capacity


– Inadequate grid infrastructure

– Increased cost of equipments, spares and

consumables apart from increased O&M

cost affecting cost of generation

• Potential

– Estimated investments of €8.3 billion per

year by 2030

– Consultancy and Resource Assessment

Services related to Project development,

Logistics, O&M, HVDC transmission system

etc.

55

Biomass Energy

• Biomass Potential: 19,500 MW



– Assessment & availability of feedstock for biomass plants

– Non-uniform Costs or absence of policy on fuel pricing for biomass

– Standardization of technology for multi-fuel biomass boilers

– Lack of segregation leads to variation in input quality

56

Geo Thermal

• Geo Thermal Potential: 10,600 MW

• Present installed capacity: Nil

• Geothermal power requires no fuel; it is therefore

immune to fuel cost fluctuations


– Lack of existing policy and regulatory framework

– Significant risks and investment involved in the

research and exploration stage

– Risk of increased seismic activities , due to

fracturing of underground rocks

• Potential

– Geothermal provinces in India: Himalayas, Sohana,

West Coast, Cambay, Son-Narmada-Tapi, Godavari

and Mahanadi

57

Small Hydro Power

• Small Hydro Potential : 19,750 MW


• Potential to meet power requirements of remote &

isolated areas


– Factors related to Geology, Hydrology, Infrastructure,

Clearances and land acquisition

– longer gestation period due to seasonal conditions

• Potential

– Only 20% of the identified potential has been

exploited

– States of Arunachal Pradesh, Himachal Pradesh,

Jammu & Kashmir & Uttarakhand have highest

potential for development of SHP

58

• Ministry of Power has formed India Smart Grid Forum

(ISGF) for accelerated development of smart grid

technologies.

• 14 Smart Grid Pilot Projects shortlisted by MoP to be

implemented


– Unclear policy & regulations related to Smart Grid

applications

– Lack of awareness requiring knowledge creation, training

and capacity building of both the utility and consumers

• Potential

– Creating awareness and acceptance of Smart Grid

technologies

– Demonstration of commercially viable pilots and than

scaling

Smart Grid

59

Project Division IL&FS Energy Development Company Ltd. (IEDCL)

Project Automation of Power Transmission and Distribution

Project size 70 cities with an estimated value of contract ~USD 115 Mn

Challenges • Lack of funds for comprehensive automation

• T&D losses are significant

• Lack of scalability of existing SCADA systems

Requirement of

Technologies

• Demand responsive system to regulate excesses and shortages

automatically

• Making scalable model of SCADA system with respect to open

ended architecture, ODBC system for future integration

Structure Revenue models based on sharing of energy savings with the

Government

Future potential Scaling up to other 100 cities in sync with ‘Smart City Initiatives’

Power Transmission and Distribution

Automation in Power T&D in 70 cities

61

Project

Division

IL&FS Energy Development Company Ltd. (IEDCL)

Project Energy Efficiency in Municipal Street Lighting

Project size Jaipur Urban Area (USD 2 million)

Challenges • Lack of funds

• Non-metering of street light feeders

Requirement of

Technologies

• Cost effective technology with 30 percent energy saving

• Remote control for timings, lighting intensity based on

traffic density

• Scalable model of automation

• ROI within 4-5 years through energy savings

Structure PPP – Municipalities to give the operational right and will

get a share of the energy savings revenue

Future potential • 50 cities, estimated value of contract ~USD 40 Mn


Municipal Street Light - Jaipur City

62

Project

Division


Project Monitoring and Correction of Power Quality for Jaipur distribution

area

Project size ~2.2 Lakh circuit km, ~12,000 Million units p.a., estimated value of

contract ~USD 60 Mn

Challenges • Inadequate funds with State Power Utilities

• Wide fluctuations in power quality, leading to power failures and

losses

• Lack of scalability of existing SCADA architecture

Requirement of

Technologies

• Efficient technology; low O&M , built-in intelligence system –

targeted to reduce losses, improve voltage and reduce failure of

power apparatus

• Scalable model of automation

Structure • Revenue sharing through reduction in losses

Future potential • Scaling up to 150 cities across India


Power Quality Improvements

63

Project

Division

IL&FS Technology Ltd. (ITL)

Project Smart Grid for Jaipur Discom

Project size ~2.2 Lakh circuit km, ~12,000 Million units p.a., with an

estimated value of contract ~USD 50 Mn

Challenges • Lack of funds at the State distribution Company

• Lack of domain expertise and past experience

Requirement of

Technologies

• Flexible Transmission Systems

• Wide Area Monitoring Systems and Smart Meters

• SCADA systems (low cost and scalable)

• High efficiency distribution transformers, substations and

feeder automation

• Customer side hardware and software systems and others

Structure Fixed price model

Future potential Replicable in ~400 districts across India

Power Distribution

Smart Grid Project for Jaipur Discom

64

Project

Division

IL&FS Solar (subsidiary of IL&FS Energy Development

Company Limited, IEDCL)

Project Solar Power Project in Karnataka for Third Party Sale

Project size 100 MW (Modular)

Challenges - Customers discomfort with long term PPAs

- Lack of grid interactive technologies

Requirement

of

Technologies

- Solar PV Technology

- No requirement of collectors due to banking facility

Structure - Project Owned by SPV, O&M by Contractor

- PPA with Customers

- Wheeling and Banking Agreement with Transco and

Discoms

Future

potential

- Rise in power tariffs + incentives to Solar

- Annual Banking Facility with purchase of un-utilized energy

@ 85% of FITy

Renewable Energy Projects

Solar Power Project for Third Party Sale in Karnataka

65

Project

Division


Project Wind Farms spread across Rajasthan, Karnataka, Tamil Nadu,

Maharashtra, Gujarat, etc.

Project size Aggregating to ~1,000 MW with an estimated investment of

USD 25 Mn

Challenges • Lack of access to wind technology

• Inefficient grid planning and integration

Requirement of

Technologies

• Wind energy resource assessment

• Turbine design optimisation

• Composite structures

• Super conductor technology for efficient generators

Structure PPP or EPC

Future potential • Energy starved economy with more than 12% power deficit

• Wind energy the fastest growing form of renewable energy

• Total estimated wind power potential of more than 45 GW,

80% of which is yet to be developed

Power Generation

Wind Energy Project

66

Focus Sector:

Green Buildings and Climate

Green Buildings

Potential size of Green Building materials : USD 4 Bn per year

• Increased building stock from 25 Bn sq.ft to 100 Bn sq.ft by year 2030

• registered Green Buildings ; India among the top 5 countries in the world

• 1.8 Bn sq ft going Green currently

• Buildings in India consume 20% of the electricity produced

• Retrofit of Existing Buildings : USD 25 Bn opportunity by 2025


– Lack of technology

– High capital costs and perceptions

– Absence of direct incentives

– Energy performance not taken as part of investment decisions

– Shortage of experienced workforce

– Energy intensive, looking for 25-30% savings

68

Focus Sector:

Urban Development and Renewal

70

Urban Sector:

Poor State of Urban Service Delivery

• Water Supply

– 64% covered by individual connections;

– 1 to 6 hours of water supply

– Utilities recover only 30-35% of O&M costs

• Sewerage and sanitation

- 94% of towns have no sewerage network

- 18% of Urban areas have no access to latrine facility

- 21% of waste water is treated

• Solid Waste

- Waste collection coverage ranges from 50 - 90%

- Less than 30% of waste is segregated

• Urban Public Transport

- 22% of urban transport is public

- 1.1% of vehicle population is Public transport

- Road density ranges from 3 to 15 km per sq km

Urbanisation: Opportunity to 2030

Estimated investments in urban infrastructure: USD 784 Bn

• 68 cities will have million+

population

– 590 mn people will live in urban cities,

twice the US population

– 70% of new employment will be

generated in cities

– 270 mn people increase in urban

working population

• Leading to infrastructure

requirements:

– 700-900 mn sqm of commercial/

residential space

– 2.5 bn sqm of roads to be paved,

– 7400 kms of metros and subways

71

Project

Division

Gujarat International Finance Tec-City (GIFT)

Project District Cooling Systems, Gandhi Nagar, Gujarat

Project size 2,00,000 TR in phased manner, with an estimated value of

contract ~USD 350 Mn

Challenges • Non regulated market

• Lack of efficient technologies

Requirement of

Technologies

• Chillers, pumping & automated control systems

• Ice storage systems and heat exchangers

• Water treatment systems

• Modular and Scalable Plant capacities, 3 locations,

looped in for entire city. Each chillers of 2500 TR to 5000

TR are envisaged to be installed in series to meet

ultimate demand

Structure Revenue share or pay per use model

Future potential 100 Smart Cities to be developed across India

Urban Development

District Cooling System

73

Project

Division

IL&FS Technology Ltd. (ITL)

Project Vehicle Registration Plate Recognition System

Project size Estimated value of contract ~USD 10 Mn

Challenges • Lack of funds with State Distribution Companies

• Lack of Domain expertise

• No Past experience

Requirement

of

Technologies

• Comprehensive planning support, design, engineering,

manufacturing, installation, integration etc.)

• Capacity requirements to include CMMi Level 3, ISO

9001:2008 certified

• Surveillance specific components e.g. ANPR, RLVD,

EMS, NMS etc.

• Making scalable model of automation

Structure EPC: Fixed price model

Future

potential

Approx. 50 large cities in India

Transportation and Logistics

Automatic Number Plat Recognition Project

74

Thank You

www.innovationplatform.in

www.ilfsindia.com

indo-nordic sustainable innovation technology platform – introduction

Environment

billioninfra investments

bnestimated investments

project opportunities

rural population lack

strong economy growth

national grid33

green infrastructure

indias population