Clean Technology Opportunities in India Chintan Shah Suzlon Energy Ltd 30 th March, 2016

1. Clean Technology Opportunities in India • Chintan Shah • Suzlon Energy Ltd • 30th March, 2016

2. Structure of the Presentation • Overview • Clean Technology Opportunities in India • Market Drivers of Clean Technology • Clean Technology opportunities • Prospects an d Potential • India as investment destination • Renewable Energy targets and enablers

3. Overview • Global commitment to Renewable Energy in 2015 stood at $285 billion – A new record • India saw its commitment rise 22% to $10.2 billion in 2015 • COP21 produced an unprecedented agreement among 195 countries to act for zero net emissions in the second half of the century • Share of Global investment in Renewable Energy accounted for by the Developing countries rose to 55% in 2015 with investments of $155.9 billion • India ranked 4th in new investments in Renewable Energy • India saw 75% jump is utility-scale solar financing @ $4.6 billion • Capital costs for PV projects in India have fallen to among the cheapest in the world @ $ 1.1 million per MW • In Wind Energy, the $ 4.1 billion of asset finance in 2015 was 17% higher than the previous year

4. Structure of the Presentation • Overview • Clean Technology Opportunities in India • Market Drivers of Clean Technology • Clean Technology opportunities • Prospects an d Potential • India as investment destination • Renewable Energy targets and enablers

5. Market Drivers of Clean Technology Accelerated population urbanization Increasing consumption by a fast growing Middle-class Scarcity of Natural Resources – Fossil Furls, Water and Minerals Rising and volatile energy and commodity prices Increasing energy security related concerns Increasing adoption of renewables • Corporate response • Pursuing cleantech revenue opportunities by leveraging core competencies or developing new ones • Investing in renewables as part of energy optimization strategies to manage risk • Sustainability initiatives that enhance the efficiency of resources • Government Response • Incentives in Renewable Energy Markets • Carbon Regulations • Ambitious Renewable Energy targets

6. Clean Technology Opportunities in India • Wind Power Generation Potential in India is 300,000 MW • Solarpowercapacity targets at 100,000 MW by 2022, entailing an investment of INR 600,000 crore, to make India one of the largest green energy producers

7. Clean Technology Opportunities in India • Energy Efficiency • Smart Grids • Green Buildings • Environment Technologies • Waste management, development of urban areas, water & sanitation • Clean Coal Technologies • Coal beneficiation, Coal combustion, Coal conversion • Water Management • Industrial waste water management , Drinking water purification

8. Structure of the Presentation • Overview • Clean Technology Opportunities in India • Market Drivers of Clean Technology • Clean Technology opportunities • Prospects an d Potential • India as investment destination • Renewable Energy targets and enablers

9. The Indian Economy • The largest democracy | Population ~1.30 billion • GDP USD 2.384 trillion (nominal), GDP Rank: 7 (nominal) • GDP Growth: 7.6% (2015-16 est.) • A liberal foreign investment regime • FDI Inflows into India (equity + re-invested earnings + other capital) • Cumulative FDI Inflow 2000 - 2015: USD 365 bn (Equity inflow: 264 bn) • Total FDI Inflow 2014 - 15: USD 41.2 bn (Equity inflow: USD 28.8 bn) • Abundant natural resources, a rich mineral base, self-sufficiency in agriculture • Fifth highest investment in energy infrastructure projects to reach financial closure and serve the public • Energy growth is critical for meeting GDP targets • Renewables to contribute in major way India Sector wise GDP

10. India as an Investment Destination $ 30.9 billion FDI in FY 2015 - 16 Growing middle class No 1 FDI Destination FDI inflows rise by 40% Market Potential Industrial sector on a growth trajectory Liberalization of various sectors – Defense, Insurance Decline in Inflation Policies Stable Government (Both Central & State) Encouraging Policies – Financial Inclusion, Digital India, GST

11. India’s commitment to Renewable Energy 175,000 MW of Green Power by 2022 India’s INDCs • Reduction emission intensity to GDP target of about 35% by 2030 from 2005 levels • Achieve 40% commutative electricity installed capacity from non-fossil fuel based energy sources by 2030 • Create carbon sinks of 2.5 to 3 billion tonnes of CO2 equivalent through additional forest and tree cover by 2030 • Better adaptation with climate resilient agriculture and water conservation Emission Reduction Renewable Energy Green Cover Adaptation

12. Govt. of India’s support and initiative for RE • Re-introduction of Generation based Incentive (GBI) • INR 0.50 per unit of electricity fed into the grid for a period not less than 4 years and a maximum period of 10 years with a cap of INR. 100 Lakhs per MW • Re instatement of Accelerated Depreciation (AD) • Been proven a key instrument for growth on wind sector in India • Creation of Green Energy Transmission Corridor for Renewable Energy • Will evacuate renewable power from RE rich states to load centres • Will make RE generation grid interactive, reduce evacuation losses, allow grid-scale energy storage & management

13. Thank you