Wednesday, November 27, 2013

NREDCAP popularising small roof-top solar power systems in domestic sector

The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) is trying to popularise small roof-top solar power systems in the domestic sector by emphasising on the importance of energy savings and recovery of investments.

Through rooftop solar systems, people can tap the solar energy which is available in abundance (for 11 months in a year) and contribute any excess power to the State’s electricity grid.

Awareness is being spread about that and it is yet to catch the fancy of consumers, said NREDCAP District Manager K. Srinivas.

A 3-KW roof-top solar system costs about Rs.1.5 lakh (excluding costs recoverable in the form of Central and State subsidies of Rs 30,000 and Rs 20,000 respectively) and the intangible benefit it entails in the form of electricity (coal-based) saved is immense.

For instance, a household consuming 500 units of electricity drawn from the grid in a month will be charged Rs.4,500 at the rate of Rs.9 per unit.

High emissions
In this case, CO2 emissions at the macro-level are very high and there are many other costs incurred by the government on coal-fired power.

Consumption of 15 units of solar energy per day (450 units per month) costs approximately Rs.4,500.

Benefits
The benefits are excess energy can be sent to the grid for cash credits given by AP-Transco once in six months.

The value of energy saved is nearly Rs 55,000 per year at which rate the investment made in the solar system can be fully recovered in three years.

The life of a good quality solar panel is 25 years during which the cost of maintenance is almost zero, and there is no question of environmental pollution it being ‘green power’.

Besides, a roof-top solar system can be set up in just about 300 square feet.

According to official sources, the daily demand of electricity in Krishna district is over 10 million units and assuming that even if 20,000 households (10 per cent of the 2,00,000 households in Vijayawada city) consuming more than 15 units of electricity per day switch over to solar energy, 3 lakh units of power can be saved.

It is a substantial amount of energy saving given the exorbitant costs at which thermal energy is being generated in the State on the back of a steep increase of 10 per cent in coal imports in the last two to three years.

“The benefits of solar energy are thereby pretty clear and one need not have any apprehension. In fact, exploiting solar energy is a very good social responsibility activity”, Mr. Srinivas said.

Tuesday, November 19, 2013

How much does a rooftop solar PV system cost?


Within this section you will find
  • Types of rooftop solar PV systems
  • Component cost of rooftop PV systems
  • Incentives/Subsidies
    • Accelerated Depreciation (AD)
    • MNRE Subsidy
  • Final cost of Rooftop PV system factoring in AD and Subsidies
  • Prospects for further cost reduction
  • Variations in pricing
The cost of a rooftop solar PV system depends on the function it serves (to feed power into the grid, to support the load during a power failure, etc.) and incentives/subsidies available. It should be noted that all solar PV systems function by matching the voltage from some other source. Therefore the system has to be integrated with the grid, a battery backup, or a diesel generator.

Types of rooftop solar PV systems

Rooftop solar PV systems are of 3 types:
  1. Grid-tied – These rooftop systems are primarily designed to supply the generated power to the grid and also power the load. These systems will NOT generate power during a power failure as the inverter shuts down the system to stop sending power into the grid and avoids the risk of electrocuting utility personnel who are working to repair the grid
  2. Grid-interactive – This system works in conjunction with either a battery backup or diesel generator to support the load even during a power failure.
  3. Off-grid – This system does not work with the grid and is designed to work only with a battery backup or diesel generator in off-grid applications
The difference between the systems lies in the kind of inverter used, and the inclusion of batteries. As various vendors use different terminology for these systems we urge you to verify the functions of the offered system rather than going by the name alone.

Component cost of rooftop PV systems

A rooftop solar PV system costs approximately Rs. 1,00,000 per kWp (kilowatt peak) including installation charges but without batteries and without considering incentives (which are discussed further down). The cost breakup for a 1 kWp system is given below:
ComponentRs.% of total cost
PV modules (Crystalline)52,00052%
Inverters23,00023%
Balance of System (cables, etc.)17,00017%
Installation8,0008%
Total1,00,000
Note 1: The above prices are for components from Tier 1 manufacturers with 5-year manufacturer’s warranty. In addition the PV modules have output warranty of 90% of rated capacity for the first 10 years and 80% of rated capacity for the next 15 years.
Note 2: We have not considered battery backup as that can alter the economics significantly depending on the extent of battery backup (autonomy) required. Not only do batteries add to the initial cost, recurring maintenance, and replacement expenditure, the energy loss on charging and drawing from the battery also adds to the cost of power. A battery backup would add about Rs. 25,000 to the cost of the above system.
Note 3: We have not considered Thin-Film modules as they require more installation area for the same capacity as Crystalline modules and are therefore not preferred for rooftop installations where space is usually a constraint.

Incentives/Subsidies

Several incentives are available for rooftop solar PV plants through the Jawaharlal Nehru National Solar Mission.
Accelerated Depreciation (AD)
Accelerated depreciation of 80% is available under the Income Tax act for rooftop solar PV systems. This can provide significant savings to a solar plant developer who is a taxable assesse and has sufficient profits against which the depreciation can be charged. This is illustrated in this table:
Tax savings from accelerated depreciation
Item
Rs.
Cost of a 100 kW rooftop solar plant (A)
1,00,000.00
Accelerated depreciation @80%
80, 000.00
Corporate tax rate*
35%
Tax saved through depreciation (B)
28, 000.00
Net cost of rooftop solar plant (A)-(B)
72, 000.00
MNRE Subsidy
The Ministry of New and Renewable Energy (MNRE) provides Central Financial Assistance through capital and/or interest subsidy (depending on the nature of the applicant). The summary of the subsidy scheme is provided in the table:
S. No.Category
Maximum capacity
GOI Support
System with battery backup
System without battery backup
Interest Subsidy
1
Individuals for all applications1 kWpRs.51/watt or 30% of project cost whichever is lessRs.30/watt or 30% of project cost whichever is lessSoft loans @5% p.a.
2
Individuals for Irrigation, & community drinking water applications5 kWpRs.51/watt or 30% of project cost whichever is lessRs.30/watt or 30% of project cost whichever is lessSoft loans @5% p.a.
3
Non-commercial/
commercial/industrial applications
100 kWpRs.51/watt or 30% of project cost whichever is lessRs.30/watt or 30% of project cost whichever is lessSoft loans @5% p.a.*
4
Non-commercial/
commercial/industrial mini-grids
250 kWpRs.90/watt or 30% of project cost whichever is lessSoft loans @5% p.a.*
*for commercial/ industrial entities either of capital or interest subsidy will be available
Note: 1 The benchmark cost for setting up a solar PV plant is Rs. 170/Wp (With battery providing 6 hours of autonomy) and Rs. 100 per Wp (without battery) i.e. if the actual project cost exceeds this amount then project cost will be deemed to be the benchmark cost for calculating the subsidy.
Note 2: Benchmark costs are for systems with 5-year warranty for all components (inverters, batteries, switchgear, etc.) other than PV modules which are warranted for 90% of output at end of year 10 and 80% at end of year 25. PV modules have to be made in India to avail subsidy.
Note 3: Capital subsidy is increased to 90% of benchmark cost for special category states (North Eastern states, Sikkim, Jammu & Kashmir, Himachal Pradesh, and Uttarakhand).
The subsidy calculation is illustrated in this table:
Savings from capital subsidy
Item
Rs.
Cost of a 1 kW rooftop solar plant with battery backup
1,60,000.00
Benchmark cost
1,70,000.00
Subsidy @30% of actual cost
48,000.00
Net cost after subsidy benefit
1,12,000.00

Final cost of Rooftop PV system factoring in AD and Subsidies

Rooftop PV system cost after factoring in AD and Subsidy benefit
The final cost to setup the PV plant, after factoring in Accelerated Depreciation and Subsidy benefit will be:
Final cost of 1 kW rooftop PV plant
Item
Rs.
Cost of a 1 kW rooftop solar plant
100,000.00
Subsidy @ 30%
30,000.00
Net cost after subsidy
70,000.00
Accelerated depreciation @80%
56,000.00
Tax rate
35%
Tax saved through depreciation
19,600.00
Net cost after both AD and Subsidy
50,400.00

Prospects for further cost reduction

One of the questions we are regularly asked is if project cost is likely to reduce significantly in future, as the price of solar PV modules has seen a substantial decrease in recent years. This chart shows the proportion of the prices of each component (from the table above) to the total project cost:
Though PV modules have decreased in price they form only half the cost of the total project; further decrease, if any, will only affect that portion and therefore impact on total project cost will be limited. The prices of the other components have not decreased the way the price of PV modules has decreased. Therefore we do not expect to see much reduction in project cost in the near future.
Prices of solar PV systems offered by various vendors can differ significantly. There can be several reasons for the variations in price, such as
  • Overstatement of capacity – Some vendors advertise a rooftop system with 1 KW modules (solar panels) and a 5 kW inverter as a 5 KW system. As the electricity is generated by the modules this system only has a 1 kW capacity and the price offered by the vendor should be compared with other 1 KW systems and not 5 kW plants
  • Brands – Products from Tier I manufacturers are typically more expensive but offer much better performance and reliability
  • Certifications/Standards – Products that are certified and meet quality standards are more expensive
  • Warranties – The price of the system can depend on the warranties offered.
    • PV Panels – Industry standard warranty is
      • 5-year manufacturer warranty
      • 0-10 years for 90% of the rated output power
      • 10-25 years for 80% of the rated output power
    • Other systems – Inverters, mounting structures, cables, junction boxes, etc. typically come with a 1 year manufacturer warranty which can be extended to 5 years
Takeaways
  • A 1 KW rooftop plant costs about Rs. 1,00,000
  • A battery backup would add R.s 25,000 to this cost but is not recommended unless absolutely necessary due to losses when charging or drawing power
  • Any further decrease in PV module prices are not likely to significantly reduce project cost as modules comprise only half the total cost of the project
  • Customers should check that the PV plant capacity quoted by vendor is for the module capacity and not the inverter capacity

Saturday, November 16, 2013

Replacing Diesel with Solar - Chennai India, EAI

Updated - September 2013

Replacing Diesel with Solar

A Comprehensive Guide for Indian Businesses

This e-book provides representative sample content to assist a reader in evaluating the 
Replacing Diesel with Solar Report


Replacing Diesel with Solar –
A Complete Guide to Installing Solar PV for Backup Power

Preface

With its economy growing at a fast clip, the Indian industry is in a time of unprecedented opportunities for growth. Along with this growth comes the need for higher energy consumption, as energy demand / consumption are highly correlated to economic growth.

Until recently, India’s energy demand has been met to a large extent by non-renewable resources, mainly coal and oil. Recently, natural gas has started playing an important role as well. But with the global concerns over climate change and the depleting nature of fossil fuels, not to mention the geopolitical risks attached with depending on foreign countries for these fuels, have made it imperative for the Indian industry to look at renewable sources of energy.
As a result of the nature of fossil fuels, their costs have been on the increase. Use of diesel in this regard should merit special mention, especially as a fuel for backup power for diesel gensets. While large factories and industrial set ups have their own captive power plants (usually powered by coal), tens of thousands of small and medium plants use diesel for a significant portion of their power needs. With the consequent increase in the cost of both grid power and that of diesel used as a fuel for backup power, businesses are looking for alternative and more sustainable sources for power production. It is well known that India has abundant sunlight that could support robust solar-based power production. Solar photovoltaic (PV) based power production could thus be an effective alternative.

The Replacing Diesel with Solar PV report has been developed for those companies and institutions keen on installing a solar PV based captive power production facility, especially as a replacement for their diesel use. The focus of the report is to facilitate a much deeper and more comprehensive understanding of the captive solar PV segment, specifically in the context of costs and technology aspects.

The report is developed by Energy Alternatives India (EAI), leading business intelligence and market research firm from India focused on the renewable energy and cleantech industries. This report was last updated in the first week of September 2013.

What Will You Know after Reading This Report?
Why should I go for solar based captive power?
How much solar PV capacity do I need?
How much will it cost to install a solar PV captive system?
How much maintenance does a solar PV system require?
What are the key things I should look out for before installing a solar PV system?
What are the mistakes I should avoid?
How much space will I need for the captive PV installation?
Should I use solar as a backup power or as a mainstream power source?
Will I be able to depend completely on solar energy for my day time operations?
If I operate night shifts, will I need a storage system (battery) for my energy needs?
Can I sell my excess energy to the grid?
What are the components of the solar PV system?
What is the lifetime of the system?
Am I eligible for availing government incentives?
Can I install a hybrid captive system (mix of solar and wind OR solar and diesel)?
When should I consider using a generator with my solar PV system?


List of Contents
1 CAPTIVE POWER IN INDIA
1.1 Introduction
1.2 Captive Power Plants in India
1.3 Diesel in India
1.4 Why Solar for Captive Power
1.4.1 The Business Case for Captive Power Plant (CPP) Using Solar PV (SPV)
1.5 Attractive Market Segments
1.5.1 Large Industrial Facilities
1.5.2 Large Commercial Buildings/Facilities
1.5.3 Communication Sector
1.5.4 Water Pumping
1.5.5 On-shore and Off-shore Oil & Gas
1.5.6 Desalination
1.5.7 Remote Monitoring Stations
1.5.8 Warning Signals
1.5.9 Lighting
1.5.10 Refrigeration
1.6 Solar Power vs. Diesel Generator
1.7 Key Bottlenecks

2 TECHNOLOGY OPTIONS FOR CAPTIVE SOLAR PV

2.1 Introduction
2.2 Stand Alone PV Systems
2.3 Grid-tied Captive Power Plant
2.3.1 Grid-tied Systems With No Battery Backup
2.3.2 Grid-Interactive With Battery Backup
2.4 Hybrid Systems
2.4.1 Solar Photovoltaic-Diesel Generator Hybrid System
2.4.2 Solar Photovoltaic-Wind Hybrid System
2.5 Summary of Solar PV Technology Options

3 SETTING UP SOLAR CAPTIVE POWER PLANT IN INDIA

3.1 Steps Involved in Setting Up a Captive PV Power Plant
3.2 Steps Involved in Setting up a Hybrid System
3.3 Key Requirements to Set Up a Captive Power Plant (CPP)
3.3.1 Essential Components
3.3.2 Optional Components
3.4 Setting up PV Captive Power Plants - Key Factors to Consider
3.5 Indian Companies and Entities Involved in Setting up of a Captive Power Plant
3.5.1 Moser Baer
3.5.2 Sharp
3.5.3 Reliance Solar
3.5.4 Tata Power Solar Systems Limited
3.5.5 Photon Energy Systems Limited
3.5.6 Vimal Electronics
3.5.7 BHEL
3.5.8 Conergy
3.5.9 Vikram solar
3.5.10 Titan Energy Systems (TITAN)
3.5.11 Solar Semiconductor
3.5.12 Topsun Energy Limited
3.5.13 L&T Solar Limited
3.5.14 Wipro EcoEnergy
3.5.15 Solarsis
3.5.16 Refex Energy
3.5.17 Chemtrols Solar Pvt. Ltd
3.5.18 Aspiration Energy
3.5.19 Headway Solar
3.5.20 Solar - Apps
3.5.21 Eco-Save India Pvt. Ltd
3.5.22 Swelect Energy Systems Limited
3.5.23 SunEdison
3.5.24 Zynergy
3.5.25 Su-Kam
3.5.26 Mahindra Solar
3.5.27 Juwi
3.5.28 Lanco solar
3.5.29 EverSun Energy Private Limited
3.5.30 Ravano Green Power
3.5.31 ILIOS Power Pvt Ltd
3.5.32 Sterling and Wilson Ltd.
3.5.33 Enfinity Solar Solutions Pvt Ltd - India
3.5.34 Gensol Solar
3.5.35 Enerparc Energy Pvt Limited
3.5.36 Solid Solar

4 POLICIES, REGULATIONS & INCENTIVES

4.1 Introduction
4.2 Government Incentives and Policies
4.2.1 Captive SPV and the NSM
4.2.2 Electricity Act
4.3 Frequently Asked Questions

5 ECONOMICS OF CAPTIVE POWER PLANTS

5.1 Introduction
5.2 Capital Costs and Breakups
5.2.1 Inputs Used in the Financial Model
5.2.2 Performance of Solar PV System
5.3 Results of the Financial Model
5.4 The BOO(T) Model

6 FINANCING OF CPPs

6.1 Introduction
6.2 Project Finance Characteristics
6.3 Asset Finance Characteristics
6.4 Corporate Finance
6.5 Most Likely Routes for Financing of Solar PV CPP
6.6 Nodal Agencies that Support Renewable Energy Financing in India
6.6.1 IREDA
6.6.2 Power Finance Corporation Ltd
6.7 Financial Institutions that Fund RE Projects in India

7 NEXT STEPS TO BE TAKEN BY A SOLAR PV CAPTIVE POWER DEVELOPER

7.1 Introduction
7.2 Preparing Prefeasibility and Detailed Project Reports
7.3 Meeting Government Departments
7.3.1 List and Contact Details of State Nodal Agencies (SNA) in Various States
7.3.2 Central Government Relevant Department Details and Contacts
7.4 List of System Integrators of Solar PV Captive Power System

8 Solar PV in India – Industry Status and Trends

8.1 Introduction
8.1.1 Introduction to Alternative Energy Sources
8.2 Solar PV Technology
8.2.1 Solar PV – Crystalline Solar Cells
8.2.2 Solar PV – Thin Film Solar Cells
8.2.3 Solar PV - Concentrating Photovoltaic
8.2.4 Photo-electrochemical, Polymer, Nano-crystal and Hybrid cells
8.3 Solar PV Market Status and Trends
8.3.1 Market Share of Thin Film Photovoltaics
8.3.2 Solar Photovoltaic in India – A Snapshot
8.4 Solar Energy Potential in India
8.4.1 Regional Potential for Solar Power
8.4.2 Current Solar PV Scenario in India
8.4.3 Future Solar PV Scenario
8.4.4 Solar PV Future Contribution in Indian Electricity Supply
8.5 Status of Solar PV Technology in India
8.5.1 Solar Cells and Solar PV Production
8.5.2 Foreign Trade of Solar PV
8.6 Prominent Solar PV Power Projects & Companies in India
8.6.1 Solar PV Power Projects Installed
8.6.2 Solar PV Power Projects Approved by the Central Government under Phase I of JNNSM Scheme
8.6.3 Solar PV State Projects
8.7 Key Challenges to Growth of Solar PV in India

9 Case Studies of Indian Use of Captive Solar PV

9.1 Captive Solar PV Systems – Experience of L&T, Chennai
9.2 Captive Solar PV Systems – Experience of SSN Research Center, Chennai
9.3 1 MW Hybrid Energy Supply for a Cotton Mill, Tirupur, TN, India
9.4 Captive Solar PV Systems – Experience of Omax Auto Ltd, Gurgaon, Haryana
9.5 Captive Solar PV Systems at Daimler India, Chennai
9.6 Solar PV Captive Power Installations in India

10 Highlights and Key Takeaways from this Report

11 Useful Resources
11.1 Useful Government Links

11.1.1 MNRE Accredited Manufacturers, Suppliers and Channel Partners
11.1.2 Subsidies and Incentives
11.1.3 Policies and Regulations
11.1.4 FAQ Links
11.2 Other Useful Links
11.3 Free PV Books!

12 Annexure
12.1 Details of Solar PV Power Projects Commissioned in India
12.2 SECI – Grid Connected Rooftop Solar PV Phase II
12.3 Procedure for the issuance of Renewable Energy Certificates

Key Sections

1.1 Introduction
1.2 Captive Power Plants in India
1.3 Diesel in India
1.4 Why Solar for Captive Power
1.4.1 The Business Case for Captive Power Plant (CPP) Using Solar PV (SPV)
1.5 Attractive Market Segments
1.5.1 Large Industrial Facilities
1.5.2 Large Commercial Buildings/Facilities
1.5.3 Communication Sector
1.5.4 Water Pumping
1.5.5 On-shore and Off-shore Oil & Gas
1.5.6 Desalination
1.5.7 Remote Monitoring Stations
1.5.8 Warning Signals
1.5.9 Lighting
1.5.10 Refrigeration
1.6 Solar Power vs. Diesel Generator
1.7 Key Bottlenecks

Captive Power in India

Compared to the hectic growth in electricity demand, India has seen only a modest pace of growth in the supply of electricity. Power shortages have had a significant impact on companies and industries, especially manufacturing industries. As a result, quite a few businesses have started generating their own power, using conventional sources (usually diesel for small backup power and relatively larger coal based power plants) and in later periods wind based captive power plants were also set up. For these companies, in recent times, solar is emerging to be an attractive option. This chapter gives an overview of conventional captive power plant status and explains the advantages of using solar for captive power generation.

CHAPTER-1

Solar Power vs. Diesel Generator

Uncertainty in Weather: The design of a solar power generation system involves either the use of historical weather data or weather forecast methods to predict the future temporal evolution of the solar energy system. Despite the use of such methods, the behaviour of weather conditions always involves high uncertainty. Unless such uncertainty is accounted for during the system design, the performance of the solar-based system will only be optimum within the range of the considered weather conditions. Potentially unpredictable weather fluctuations will result in suboptimal system operation.

Solar Irradiance: Solar irradiance is one of the most important factors in the operation of the PV systems and it can have a significant impact on the efficiency and power quality response of the whole system. The variable power flow due to the fluctuation of solar irradiance and temperature are some of the parameters that affect the power quality of photovoltaic systems. With high connection densities of photovoltaics in the distribution grid, low irradiance can lead to undesirable variations of power and supply quality (voltage and current) at the connection point which might even exceed acceptable limits. The system injects a highly distorted current (with respect to the fundamental frequency current) to the distribution network during low solar irradiance conditions. It has been found that low solar irradiance has a significant impact on the power quality of the output of the PV system.

Initial Cost: The high initial cost of solar PV systems is one of the most significant barriers to PV adoption. However, the recent results of MNRE’s bidding under JNNSM phase 1 batch 2 process show that the cost of solar system have fallen significantly. As the initial cost of PV system decreases and the cost of diesel fuel increases, these systems will become more economically competitive. It is important to note that solar has already achieved grid parity when compared with diesel based power generation.

Sample Topic

Captive Power Plants in India

Key Sections

2.1 Introduction
2.2 Stand Alone PV Systems
2.3 Grid-tied Captive Power Plant
2.3.1 Grid-tied Systems With No Battery Backup
2.3.2 Grid-Interactive With Battery Backup
2.4 Hybrid Systems
2.4.1 Solar Photovoltaic-Diesel Generator Hybrid System
2.4.2 Solar Photovoltaic-Wind Hybrid System
2.5 Summary of Solar PV Technology Options

Technology Options

Selecting the best system design for a particular application is more important. Often a combination of techniques can dramatically reduce costs and improve the reliability of a system, or provide the design flexibility to cover a wide range of applications. This chapter explains three different types of solar PV systems

Stand-alone PV System
Grid-tied PV System
oGrid-Interactive Without Battery Backup
oGrid-Interactive With Battery Backup
Hybrid Solar PV System
Designing and implementation of each of these categories is different, and would need to be treated accordingly.

CHAPTER-2

Beneficial in terms of improved reliability, energy services, operational life and energy efficiency, the hybrid system has brought forth the highest form of perfection in electricity generation. This system combines two energy sources; the sun and a diesel generator (genset), where the genset supplies excess load and recharge the battery during overcasts.
The hybrid system is meant for backup power in case of a power shortage, say during the peak demands. It also reduces downtime during maintenance or repairs since the system on its own, ensures that all the components are used efficiently at an optimum rate. For example, during the day, the solar modules will generate energy in the form of Direct Current (DC) and is stored in the battery or straight away put to use by converting it into AC through the inverter. So, when night time falls and the solar modules do not generate energy, the DC stored in the battery is put into use.

However, the DC stored in the battery is not necessarily enough to support the energy demand throughout the night since during day time, it may rain or the sunlight might be blocked by thick clouds, reducing the energy production. This will maximize the discharge level of the battery, causing its operational life to decrease, in other words, exhausting the battery. Here is where the genset comes in. The genset produces AC and can be immediately used and simultaneously rectified to produce DC to recharge the battery. The mechanism can also happen during peak loads or when a prolonged period of overcast occurs.

In addition, due to this alternate operation, the overall system has prolonged life proven by the discharge level of the battery is being kept optimum. The hybrid system adopts an environment-friendly technology whereby the diesel generator is used discontinuously and the whole operation itself is much quieter. All this is governed by a micro-processor-based controller unit.
The first installation may take up a high cost, but the maintenance cost afterwards is very low. In addition, we can save fuel consumption of the genset because the solar photovoltaic (PV) modules support the base electricity load while the genset provides additional energy should there be a sudden peak in the energy demand.

Sample Topic

Solar Photovoltaic-Diesel Generator Hybrid System

Key Sections
3.1 Steps Involved in Setting Up a Captive PV Power Plant
3.2 Steps Involved in Setting up a Hybrid System
3.3 Key Requirements to Set Up a Captive Power Plant (CPP)
3.3.1 Essential Components
3.3.2 Optional Components
3.4 Setting up PV Captive Power Plants - Key Factors to Consider
3.5 Indian Companies and Entities Involved in Setting up of a Captive Power Plant
Setting up Solar CPP in India

Once an entrepreneur has decided to set up a solar based captive power plant, there are seven steps involved in designing a successful captive solar PV installation. Whether the solar electric system is going to be small or large, and whether it is going to be off the shelf lighting kit or designing something from scratch, it is worth following these steps to ensure one gets the best from the system.

CHAPTER-3

Sizing for a Diesel-Solar Hybrid System with Batteries

Integrating solar power with diesel generator sets without affecting the daily operations has proved to be more challenging than originally thought. A whole host of issues related to frequency synchronisation, reverse current flows, and efficiency losses have contributed to solar system sizing limitations which have a direct bearing on the savings possible and consequently, the economics of the investment.

Frequency & Power Quality: As the loading factor of the diesel generator varies (as a result of introducing an intermittent solar power source into the mix), the frequency of the output AC power can vary beyond acceptable levels reducing the quality of power. Some modern day devices require high quality power to operate.

Reverse Current Flow: When the output of the solar power exceeds that of the load demand, some reverse current will flow in the diesel generator. Normally, there are acceptable levels to which this can happen beyond which the diesel generator trips cutting off the reference voltage for the solar and the system breaks down.

Efficiency and Minimum Loading: Diesel generators operate in various modes. Running a generator at loads below the minimum load factor1 for prolonged periods affects the efficiency of operations which in turn has a bearing on fuel consumption, maintenance costs and useful life. Operating below the minimum load is possible if a sizeable solar system is integrated into the supply and results in decreased lifecycle savings of the solar-diesel generator system.
Sample Topic

Steps Involved in Setting a Captive PV Power Plant

Key Sections

4.1 Introduction
4.2 Government Incentives and Policies
4.2.1 Captive SPV and the NSM
 Guidelines for Off-grid and Decentralized Solar Applications
 Central Financial Assistance & Eligibility
 How to Apply
 Commissioning of the Projects
4.2.2 Electricity Act
4.3 Frequently Asked Questions

Policies, Regulations & Incentives

For setting up an enabling environment for solar technology penetration in the country both at a centralized and decentralized level, in June 2010, government of India announced the guidelines for solar off-grid and decentralized power, under the National Solar Mission. Under this scheme, the Ministry of New and Renewable Energy (MNRE) provided central financial assistance for setting up of solar power projects for captive use. This chapter gives details on the financial assistance, eligibility criteria, and process involved in obtaining this assistance.

CHAPTER-4

Wind-Solar Hybrid Systems

a)The MNRE support for wind solar hybrid/ aerogenerator systems will be provided on per kW basis. The support will be provided on the basis of type of users. Following two slabs of CFA will be available:
Government/ public/charitable, R&D, academic and other non-profit making institutions.
Rs. 1.50 lakh per kW
Other beneficiaries not covered in the above given category (individuals and private/corporate sector will come under this category)
Rs. 1.00 lakh per kW
For 25 demo projects in North-Eastern states including Sikkim & J&K including Leh-Laddakh
Rs. 2.25 lakh per kW
b)The remaining cost of the system and all other expenditure related to packing & forwarding, transportation, installation and commissioning of the system will be a part of the system and will be met by the beneficiary of the system.
c)In case of installation of systems to be done through SNAs, an administrative charge @ 2% of CFA will be provided to SNAs at the time of final release.

Sample Topic

Captive SPV and the NSM

Key Sections

5.1 Introduction

 Solar PV and Grid Parity
 Solar PV’s Diesel Parity
5.2 Capital Costs and Breakups
5.2.1 Inputs Used in the Financial Model
5.2.2 Performance of Solar PV System
5.3 Results of the Financial Model
 Pessimistic Scenario
 Likely Scenario
 Optimistic Scenario
5.4 The BOO(T) Model

Economics of Captive Power Plants

The costs involved in setting up and running solar PV power plants are significantly different from those for coal based or natural gas power plants. Solar power systems are much higher in capital costs and much lower in operating costs. This chapter explains in detail the capital and operating expenses of captive PV systems and provides a comprehensive comparison of a captive solar system with a diesel genset system.

CHAPTER-5

Cost break up of a 100 kW solar captive system – without batteries Items

Cost range
PV modules
31.5 - 33.8 Lakhs
Inverters (grid tie)
7.7 - 8.3 Lakhs
Balance of System (transformers, cables and wires, tracking devices, etc.)
23.8 - 25.5 Lakhs
Installation (civil & general works)
6.3 - 6.8 Lakhs
Total
70.0 – 75.0
As can be seen from the above table, the capex of a 100 kW system without batteries (i.e. a grid tie system) will be approximately 70.0-75.0 lakhs
Note: The cost range is given here because different manufacturers price their products differently.
Sample Topic
Capital Costs and Breakups

Key Sections

6.1 Introduction
6.2 Project Finance Characteristics
6.3 Asset Finance Characteristics
6.4 Corporate Finance
6.5 Most Likely Routes for Financing of Solar PV CPP
6.6 Nodal Agencies that Support Renewable Energy Financing in India
6.6.1 IREDA
6.6.2 Power Finance Corporation Ltd
6.7 Financial Institutions that Fund RE Projects in India
Financing of Solar CPPs
One of the key challenges in installing a Solar CPP is the financing aspect. This being a nascent industry, project developers would be keen to know how to finance the projects, especially when banks and other financial industries do not have much exposure in this area. This chapter describes various financing options available in the country for setting up captive power plants.

CHAPTER-6

Project Debt Financing for Renewable Energy – Highlights
Parameter
Value
Debt: Equity
70:30
Loan Tenure
6-8 years (including 1 year moratorium)
Interest
11-11.5%

Note: All details provided are only indicative in nature;
The table above provides the highlights of renewable energy financing in India. A similar pattern is expected for solar PV captive financing as well.
Financial Institutions that Fund RE Projects in India:
The primary debt providers in renewable energy project financing are commercial banks. Prominent domestic banks that currently fund renewable projects are: Industrial Development Bank of India (IDBI), Export-Import Bank of India, ICICI Bank, the Industrial Finance Corporation of India (IFCI), State Bank of India, Yes Bank, and PNB.
Sample Topic
Project Finance

Key Sections

7.1 Introduction
7.2 Preparing Prefeasibility and Detailed Project Reports
7.3 Meeting Government Departments
7.3.1 List and Contact Details of State Nodal Agencies (SNA) in Various States
7.3.2 Central Government Relevant Department Details and Contacts
7.4 List of System Integrators of Solar PV Captive Power System
Next Steps to be taken by a Solar PV Captive Power Developer
Solar PV captive power developers need to undertake a series of steps before they can start the implementation of the solar PV power system. These steps include efforts for both analyses (technical and economic feasibility) as well as interactions with government departments and prospective suppliers. This chapter provides detailed inputs on how institutions and entrepreneurs can undertake each of these activities.

CHAPTER-7

Next Steps to be taken by a Solar PV Captive Power Developer
Sample Topic
Next Steps to be taken by a Solar PV Captive Power Developer
Replacing Diesel with Solar –
A Complete Guide to Installing Solar PV for Backup Power
www.eai.in
Key Sections
8.1 Introduction
8.1.1 Introduction to Alternative Energy Sources
8.2 Solar PV Technology
8.2.1 Solar PV – Crystalline Solar Cells
8.2.2 Solar PV – Thin Film Solar Cells
8.2.3 Solar PV - Concentrating Photovoltaic
8.2.4 Photo-electrochemical, Polymer, Nano-crystal and Hybrid cells
8.3 Solar PV Market Status and Trends
8.3.1 Market Share of Thin Film Photovoltaics
8.3.2 Solar Photovoltaic in India – A Snapshot
8.4 Solar Energy Potential in India
8.4.1 Regional Potential for Solar Power
8.4.2 Current Solar PV Scenario in India
8.4.3 Future Solar PV Scenario
8.4.4 Solar PV Future Contribution in Indian Electricity Supply
8.5 Status of Solar PV Technology in India
8.5.1 Solar Cells and Solar PV Production
8.5.2 Foreign Trade of Solar PV
8.6 Prominent Solar PV Power Projects & Companies in India
8.6.1 Solar PV Power Projects Installed
8.6.2 Solar PV Power Projects Approved by the Central Government under Phase I of JNNSM Scheme
8.6.3 Solar PV State Projects
8.7 Key challenges to growth of Solar PV in India
Solar PV in India – Industry Status and Trends
India presents an attractive opportunity for captive solar PV developers and investors. Apart from PV (especially polycrystalline technology) based captive solar, standalone solar power plants can also be set up using other technologies. The objective of this chapter is to provide an introduction to alternative energy sources and discuss in detail about the status and trends of the Solar PV technology in India.

CHAPTER-8

Total available potential
India lies in a sunny tropical belt (High insolation) Total theoretical potential – annually over 5,000 trillion kWh
Exploited potential (production/installed capacity)
Exploited potential (production/installed capacity) is very little; total installed capacity (grid and off grid) is approximately about 1,892 MW, and of that about 1,760 MW is grid-connected (as of June 2013)
Future expected production/installed capacity
For solar CSP and PV together, National Solar Mission attempts to reach an installed capacity of
By 2013: 1-2 GW
By 2017: 4-10 GW
By 2020: 20 GW
Moreover, large areas of the Thar Desert has been set aside for solar power projects, sufficient to generate 700 to 2,100 GW
Specific government incentives
National Solar Mission and other Generation Based Incentives (GBI) are available through Ministry of New and Renewable Energy
Amount of investments happening in this now, expected in future
Government is expected to spend $19 billion until 2022.
Key bottlenecks and barriers

Cost of solar PV
High population density (land scarcity)
Technology obsolescence
Cost of power generation - and trends in the same over years
Current cost of production (after bidding) – Rs. 7/kWh (weighted average). This includes O&M, amortized/depreciated capital costs, loan repayment costs, and other expenses such as insurance.

Costs of production expected of Solar PV power plants in the near future - Rs/kWh:
By 2015 – 6
By 2020 – 5
Sample Topic
Solar Photovoltaic in India – A Snapshot

Key Sections

9.1 Captive Solar PV Systems – Experience of L&T, Chennai
9.2 Captive Solar PV Systems – Experience of SSN Research Center, Chennai
9.3 1 MW Hybrid Energy Supply for a Cotton Mill, Tirupur, TN, India
9.4 Captive Solar PV Systems – Experience of Omax Auto Ltd, Gurgaon, Haryana
9.5 Captive Solar PV Systems at Daimler India, Chennai
9.6 Solar PV Captive Power Installations in India

Case studies of Indian Use of Captive Solar PV

This section of the report presents the performance, impacts and lessons learnt from planning, implementing and monitoring of solar based captive power plants. Case studies of companies and organizations in India are provided here. The chapter also provides a comprehensive list of system integrators.

CHAPTER-9

Provided below is the sample list of SPV captive Power Installations in India.
Name of Customer,  Location, Project capacity, System Type, Impact
Tata BP Solar, Karnataka Public Works Department, VikasaSoudha - Bangalore
100 kWp

Roof-top Grid Connect Solar Power Plant
The 100 kW Peak Solar Array provides power to satisfy the energy requirements of the building and the housing facilities of the government offices.
Oil & Natural Gas Corporation Limited
Mumbai High Field
Standalone solar PV mounted on helideck of 9WPP
The solar power generation system used on the ONGC wellhead offshore platforms powers telemetry, gas detection, lighting and navigational aid systems.
Executive Ship ManagementPte Ltd
Samudra Institute of Maritime Studies, Mumbai.
90kWp
BIPV Systems
BIPV installation in India, SIMS successfully satisfies most of the institute’s power requirements internally
West Bengal Renewable Energy Development Agency (WBREDA)
Indrapur, West Bengal

110 kWp
Standalone Solar Power Plant

The solar power generated, is utilized to provide power to every household for basic lighting, commercial utilization and for water pumping system

Sample Topic
Stand-alone Solar PV Installation in India


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