For the complete report, get in touch with us at : info@netscribes.com Biomass market in India is growing steadily as new initiatives are being taken and investments start flowing in. Additionally, the government is giving various incentives and subsidies to promote the usage of biomass power. These measures can go a long way if the gap in demand and supply needs to be bridged and India has to attain energy security. The report begins with an introduction section where the break-up of the energy mix has been highlighted and also the estimated capacity addition in the 12th five year plan in renewable energy sector. It also highlights the major technologies employed by the biomass sector. The overview section shows the potential of the biomass sector and estimated growth of biomass over the years. Furthermore, the market overview section explains the capacity additions which have taken place in last few years and the top 5 states in India in terms of installed capacity of biomass power. The market overview section also focuses on the investment pattern of private vs. state government in biomass sector. The various resources used to create biomass have been covered and include the biomass resources in India. The major driver identified is depleting coal reserves. Due to the depletion of the finite natural source of energy, coal, players are looking at an alternate source of energy. India remains power deficient in peak demand conditions so this gap can be filled by the rising capacity additions through biomass power. It has been found out that setting up a biomass plant needs less capital investment compared to other forms of renewable energy. Other important drivers identified include the major investments that have taken place in this sector in the recent past. Companies in the food processing sector have also ventured into biomass power generation business. Many PE investors have picked up stakes in biomass power generating companies. Shifting from technologies which are less efficient to technologies which are more efficient so that in the long run the cost of electricity/unit is likely to reduce is among the drivers identified. The challenges identified are that the cost of electricity generated through biomass power plants is still more than coal fired plants. Also non-availability of raw materials is a major hurdle for the manufacturers and increasing cost of raw materials are responsible for the margins getting squeezed. In the government initiatives section various fiscal incentives doled out by the government to the manufacturers in order to promote biomass power in India are highlighted. Government regulations and policies in this space are discussed. The competition section includes brief profiles of the major players in the market along with their financials towards providing an insight into the operations of players in the space.. Strategic recommendations for this market have also been provided in the report.

1. Biomass Market In India
Biomass Market In India
September 2011

2. Executive Summary
• India has a strong potential to grow in the biomass sector
Market • New initiatives are strengthening the biomass sector
Overview • Renewable energy contributes A % to the total demand for energy
Drivers Challenges
 Depleting coal reserves  Unavailability of raw material
 India remains energy deficient
India remains energy deficient  Commercially costly
Commercially costly
Drivers &
 Low capital investment
Challenges
 Technological progress
 Major investments
• Renewable Energy Policy
Government • Fiscal Incentives
Regulations • Biomass Power Program & National Biomass Gasification Program
• Mandatory Renewable power purchase & National Bio‐energy Mission
Major Players in the Market
Competition
p Player 1
aye Player 2
aye Player 3
aye 3 Player 4
aye
BIOMASS MARKET IN INDIA 2011.PPT 2

3. •Introduction
Introduction
•Market Overview
•Drivers & Challenges
Di & Ch ll
•Government Initiatives
•Competition
•Strategic Recommendations
Strategic Recommendations
•Appendix
BIOMASS MARKET IN INDIA 2011.PPT 3

4. In India, thermal power largely dominates the energy sector
due to its cost advantages
Introduction (1/2) Renewable Energy addition in 20‐‐‐‐‐
• Indian energy sector is largely dominated by the
thermal energy 15.000
• To meet the increase in the total peak power demand a6
and energy requirement, an additional K MW of 10.000
capacity is proposed to be added during 20‐‐‐‐‐ a5
5.000
• Private sector players contribute almost ~B % of total
p y a3 a4
a1 a2
generating capacity addition in G th Plan and are set 0
to go beyond K2 % during Hth Plan A B C D E F
• As per the ABC, India has a total potential of about R
MW for power generation from different renewable
p g
energy sources (excluding solar) Break up of Energy Mix (20‐‐)
B k fE Mi (20 )
 X MW through wind power M
N
 Y MW by small hydro power a
b
 Z MW of biomass co generation and waste to energy
biomass, co‐generation waste‐to‐energy O
power c
• Solar energy potential adds up to a minimum of ABC e Q
MW
d
P
BIOMASS MARKET IN INDIA 2011.PPT 4

5. Biomass market in India is still in its nascent stage and has
strong potential to grow
Market Overview – Biomass (1/3) Market Size and Potential (20‐‐)
• Although the potential of biomass sector in India is
huge, very little of it has been tapped so far J
20,000
b
• Biomass market is further likely to assume
importance as India imports the bulk requirements of 15,000 Capacity Potential
petrol and coal 10,000
a
• Bio‐energy is obtained from biomass primarily
through the techniques of direct combustion and
through the techniques of direct combustion and 5,000
5 000
gasification
0
• Biomass power is of strategic importance to India as
India produces about D mn tons of biomass per year
Estimated Growth in the Market
• Apart from biomass power being an important
Apart from biomass power being an important
source of energy, it can also provide job
opportunities especially in the rural areas 8,000 D
 In many cases the farmers with the help of local groups
6,000 D%
have developed wasteland for energy crop plantations
have developed wasteland for energy crop plantations
4,000 C
2,000 B
A
0
20-- 20-- 20-- 20--
BIOMASS MARKET IN INDIA 2011.PPT 5

6. Drivers & Challenges – Summary
Drivers
Depleting coal reserves
D l ti l Challenges
Ch ll
India remains energy deficient Unavailability of raw material
Low capital investment Commercially costly
Technological progress
Major investments
BIOMASS MARKET IN INDIA 2011.PPT 6

7. Major Players (1/12)
Company Snapshot: Player 1
Corporate Information Financial Performance
Headquarters Place 1
Place 1 Revenue
Net Income D
Founded 20‐‐ 15 1.0
Products/ 10 C
Product 1, Service 1 B
Services
Services 0.5
5
A
Key People ABC, XYZ 0 0.0
20-- 20-- 20-- 20--
Business Highlights
Business Highlights
• Player 1 operates as an engineering, procurement, and construction (EPC) company in India
• This company has recently launched an an IPO in 20‐‐
 The company plans to invest in three biomass‐ based plants of A MW each in Punjab and another B biomass plants of K MW each in
Rajasthan
Rajasthan
 The company will use refuse derived fuel from its municipal solid waste business as fuel for the plants
BIOMASS MARKET IN INDIA 2011.PPT 7

8. Thank you for the attention
The Biomass Market – India report is part of Netscribes’ Cleantech Industry Series.
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