2010

Detailed Project Report 5 MW Solar Power Plant

MGM Minerals Ltd

CTRAN Consulting Pvt. Ltd. 3/25/2010

Detailed Project Report

Contents
1 2 Executive Summary ............................................................................................................................... 4 Introduction ........................................................................................................................................ 6 2.1 Overview of Indian Power Sector ............................................................................................ 8 2.2 Initiatives of the Central Government in Renewable Energy Sector .................................. 8 2.3 Initiatives of Orissa Government in Renewable Energy Sector:.......................................... 9 3 Brief Profile of the Company .......................................................................................................... 10 3.1 Introduction .............................................................................................................................. 10 3.2 Promoters Background............................................................................................................ 10 4 Project Background .......................................................................................................................... 12 5 Meteorological information ............................................................................................................ 14 5.1 Radiation Climatology of India.............................................................................................. 14 5.2 Radiation Climatology Of Orissa ........................................................................................... 21 5.3 Meteorological Data................................................................................................................. 21 5.4 Climate Data ............................................................................................................................. 22 6 Site Selection ..................................................................................................................................... 24 5.1 Profile of the District ................................................................................................................ 24 5.2 District Map .............................................................................................................................. 25 5.3 Profile of the Land.................................................................................................................... 25 6 Technical Features............................................................................................................................ 26 6.1 Proposed technology ............................................................................................................... 26 6.2 Plant Layout .............................................................................................................................. 27 6.3 Plant Specification .................................................................................................................... 27 6.4 Civil Infrastructure .................................................................................................................. 31 7 Power Evacuation ............................................................................................................................ 33 8 Project Execution Plan ..................................................................................................................... 34 9 Operational Features ....................................................................................................................... 36 9.1 Factors Effecting Generation .................................................................................................. 36 9.2 Organization of power plant O &M ...................................................................................... 37 9.3 Protection of People and Equipment .................................................................................... 38 10 Financial Analysis ........................................................................................................................ 39 10.1 Key Assumption ....................................................................................................................... 39 10.2 Project Cost ............................................................................................................................... 40 10.3 Means of Finance...................................................................................................................... 40 10.4 Profitability Statement ............................................................................................................. 41 10.4.1 Projections of Performance, Profitability and Repayment ......................................... 41 10.4.2 10.4.3 10.4.4 Projected Cash Flow ........................................................................................................ 43 Projected Balance Sheet ................................................................................................... 44 Interest and Repayment Schedule ................................................................................. 46

10.5 Financial Analysis .................................................................................................................... 47 10.5.1 Debt Service Coverage Ratio: ......................................................................................... 47 10.5.2 11 Internal Rate of Return: ................................................................................................... 48

Project Contribution to the sustainable development ............................................................ 50 2

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Detailed Project Report

1 Executive Summary
The techno - commercial feasibility report will highlight the technical and financial aspects of the proposed project activity of 5 MW Grid Connected Solar Power generation project at Khurda district of Orissa State under Built Own Operate (BOO) mode. With a strategy to contribute towards sustainable development priorities of the host country government by investing in renewable energy technology, MGM Minerals Limited is developing a solar energy project in the state of Orissa. Technical Aspects: 1 2 Proposed Capacity Project Site 5 MW Village: Patrapada Tehasil: Tangi P.S.: Tangi District: Khurda State: Orissa Country: India Latitude-1958'31"N to 1958'44"N Longitude-8527'43"E to 8528'7"E Fixed Structure A poly crystalline silicon cell is a combination of more than one silicon cell in the form of wafer. This system can operate at an efficiency of 14.6% and is significantly cheaper than single crystalline cells. 25 Acres

3 4

Type of system Type of PV Modules

5 6 7 8 9 10 11 12

Projected Land Required

Power Conversion Efficiency 13% of PV Module Total Modules required 17856 Module capacity Inverter Capacity Projected Annual Energy Production Capacity Utilization factor Grid Evacuation 280 Wp 500 kW Inverters (10) 8.322 MU with Degradation factor of 0% per annum 19% The Power Generated at 415 V in the plant will be stepped up to 33/132 kV and connected to the 33/132 kV substation of GRIDCO which is available nearby the project site. 20 Years

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Life Time 4

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14 Power Plant Composition Solar array, solar modules, power conditioning system, control room, data logging system, monitoring system, junction boxes, cables and other accessories.

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Expected Annual Green House 6990 tCO2e Gas Emission Reduction Expected Commissioning September 2010 Project Promoter MGM Minerals limited

Financial Aspects:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Capital Cost Debt Equity Ratio Rate of Interest Term Loan Loan Tenure Moratorium Equity Contribution Power Sale Price Pay Back Period With CDM Pay Back Period Without CDM DSCR with CDM DSCR without CDM IRR with CDM IRR without CDM NPV @10% discount with CDM NPV @10% discount without CDM 4995 Lakhs INR 01:01 15% 2500 Lakhs INR 10 Years 3 Years 2500 Lakhs INR Rs 15/Unit 8 Year 9 Year 1.85 1.78 12.79% 11.74% 480.85 303.25

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Introduction

Energy usage has a dichotomous relationship with the development of the civilization. With rapid growth in urbanization and industrialization, the pressure is now on the energy sector to meet up the growing demand so as to sustain the human energy requirement for day to day activity and support growth. Over use of fossil fuel on the other hand is result in depletion of the finite fossil fuel reserve and bringing about environmental degradation. Concern over the sustainability of the energy supply and the environmental issues due to over use of the finite resources is forcing the human race to think of a judicious solution of meeting up the energy requirement without disturbing the ecological balance and raising concern over the energy security. In the wake of rising fossil fuel price, bleak projection of the fossil fuel reserve and increasing concerns over countrys energy security; the government is strategized towards a radical shift in the power sector plan and favoring the enhancement of the renewable energy in the power generation mix. With an objective to deepen institutional reform concerted effort has been made in Indian power sector by the government with specific focus over the renewable energy sector. JNSSM Scheme: With an objective to harness the huge untapped solar energy potential in the country and promote self energy sufficiency and independency, the Government of India has launched promotional scheme and incentives to enhance private sector participation in the field. The project is being conceptualized considering benefits as mentioned in Jawaharlal Nehru National Solar Mission (JNNSM) for setting up Grid connected Solar Power Plants. Jawaharlal Nehru National Solar Mission (JNNSM) aims at development and deployment of solar energy technologies in the country to achieve parity with grid power tariff by 2022. In the first phase i.e. till 2013 the mission targets 1100 MW of solar power both thermal and photovoltaic. The mission has also set up a national level entity i.e. the NTPC Vidyut Vyapar Nigam Limited (NVVN) who would purchase all the power generated from such solar power plants at tariff determined by the Central Electricity Regulatory Commission (CERC). At present the CERC has announced a tariff of Rs 17.91 per unit. Orissa has been at the forefront in the use of renewable energy and demonstrates its effective utilization to the nation. Benefits of Grid Connected Solar Power Systems: a. The project activity will act as a corner stone towards diversification of national energy supply and lower dependency on fossil fuel. Such initiative will also contribute towards

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bridging up of the demand supply gap which is well reflected in peak shortage ranges around 14% whereas energy shortage is about 8.8% at national level. b. To meet the huge energy requirement in order to sustain the current economic and industrial growth with diversity and 5% spinning reserve a capacity addition of 72,000 MW is required during the Eleventh Plan period which accounts for a considerable amount of capital investment; so such initiative by the project proponent will obviously promote private sector participation in harmonizing the growth requirement of the country and will assist in stimulating and accelerating the commercialization of renewable energy technologies and markets at the grid level under private ownership. c. The deployment of project activity would also support governments mission of achieving of 10% of total planned power generation capacity addition through renewable. d. Successful implementation of the project will address the environmental concern and global warming. Generating power using solar energy will reduce green house gas emission associated with generation of electrical energy from combustion of fossil fuel in grid connected power plant that would have generated otherwise. The project will also result in reducing the pollution load due to emission of SOx, NOx and TSP which would have emitted otherwise for generating equivalent quantum of power in the fossil fuel based power plant. Energy is the backbone of human development and progress. The growing industrialization, changes in life style is paving towards sharp rise in the energy demand with an projected rise of more than half of the current demand over the next twenty five years while the condition of energy supply becoming increasingly uncertain due to finite availability fossil fuel, enhancing the concern over the energy security. The increasing demand of energy is slowly depleting and exhausting the natural resources. If not dealt in sensible and sustainable way will result towards complete exhaustion of the existing natural resources. Utilizing renewable energy resources can be considered as an identical solution towards judicious use of the existing natural resources before it is too late. Power generation through use of conventional energy sources has always been a stress full activity in terms of its impact over the environment. These effects are wide ranging and include perturbation of global climate, threat to endangered species and towards the biodiversity. Even such impacts also entails towards human health, destruction of land and production of radioactive and toxic waste. Using of renewable energy sources and thereby reducing the consumption of fossil fuel can offer our planet a chance to reduce carbon emissions, clean the air, and put our civilization on a more sustainable footing. It also offers countries around the world the chance to improve their energy security and spur economic development.

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2.1

Overview of Indian Power Sector

Energy is the sine qua non of development. India with over a billion people, today only produces 728962 MU against the annual energy requirement of 799578 MU of electricity leaving over 600 million Indians, a population equal to the combined population of USA and EU, without access to electricity. This constrained energy access is reflected, in the relatively low Human Development Index of India. With an economic growth slightly above 8% and projected growth rate of over the same the country is proceeding towards serious dearth of power. The Central Electricity Authority (CEA) has projected concern over serious power shortage in the coming fiscal. Indian Power sector is highly fossil fuel dominated one owing to the comparatively lower cost of power generation from the same. Fossil fuel comprises of 63.3% of the total installed capacity rest being catered by large hydro power project 24.87%, nuclear 2.81% leaving 9.02% from renewable. However, with the improvement in technology and declaration of the incentives from the government in terms of tariff support and tax break on renewable products is expected to be commercialized the sector in the near future. The sector is expected to grow outward from the vibrant domestic capital market, increased activities in the area of project financing, and private equity investment. With an installed capacity of 146752.81 MW, which is highly fossil fuel dominated the country is facing the serious problem of energy shortage in the range of 10.5% and peak deficit in the range of 13.5%. The power shortage is prevailing and steadily dominating in spite of consistent sectoral growth in terms of enhancement of installed capacity. Such demand supply viability gap has occurred in the back drop of high economic growth, rapid industrialization and abrupt change in life style leading enhancement of per capita energy consumption. In order the match the pace of growth and fulfilling the deficit the sector is expanding its capacity leading towards depletion of the fossil fuel reserve, concern of enhanced environmental pollution and energy security. The high capital cost of installation, lack of commercialized technology, lower Capacity Utilization Factor and inconsistency in supplying of power owing to its high dependency on the nature has hindered the prioritization and development of the renewable energy sector.

2.2

Initiatives of the Central Government in Renewable Energy Sector

The ever growing concern over the energy security of the nation had initiated the thought process of attaining energy self sufficiency for the nation. The very idea of Energy Self sufficiency was identified as a major driver for promoting renewable energy technology. The prior experience of oil shock in 70s, increasing crude price in the global market and uncertainties associated with its supply had paved way towards formulation of strategy under Commission for Additional Sources of Energy in the Department of Science & Technology in March 1981. The Commission was charged with the responsibility of formulating policies and 8

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their implementation, programmes for development of new and renewable energy apart from coordinating and intensifying R&D in the sector. In 1982, a new department, i.e., Department of Non-conventional Energy Sources (DNES), that incorporated CASE, was created in the then Ministry of Energy. In 1992, DNES became the Ministry of Non-conventional Energy Sources which was re-christened as the Ministry of New and Renewable Energy in October 2006. Meanwhile the main course power sector has undergone a massive transition and reform from monopolistic SEB era to a separate generation, transmission and distribution utilities, regulatory bodies and participation from private and foreign players promoting a competitive approach to bridge up the future challenge of the increasing demand, energy security and global environmental concern. Initiatives of the government to promote participation in Renewable Energy Sector are as follows: 1. Out of the overall target of 70,000 MW power generation installed capacity addition during the 11th Plan period, 14,500 MW (about 20%) capacity additions is proposed from renewable. 2. A provision of Rs. 3925 crore is proposed as subsidy for grid-interactive and distributed renewable power, including captive power which would save conventional power. 3. Provision of Rs. 200 crore has been kept for subsidy for solar power (grid-interactive and distributed/ decentralized). 4. Proposal for Rs. 220 crore of financial outlay on research, design and development of solar photovoltaic under 11th Plan. 5. Planned capacity addition of 30,000 MW is envisaged for the 12th and 13th Plan Period. 6. Accelerated depreciation benefit for tax purpose in the first year of installation. 7. Relieve of exercise duty on manufacture of most of the finished product. 8. Low import tariff for capital equipment and most of the material and component. 9. Soft loan to manufacturers and user of renewable energy technologies. 10. Five year tax holiday for tax generation project. 11. Remunerative price under alternative power purchase policy by the state government for the power generated through renewable energy technology fed to the grid by private party. 12. Facility for banking and wheeling of power.

2.3 Initiatives of Orissa Government in Renewable Energy Sector:

The state of Orissa has been at the forefront of adopting renewable energy technologies. The State Government under the aegis of Dept. of Science and Technology, constituted Orissa Renewable Energy Development Agency (OREDA) as a nodal agency in 1984 with a view to popularize the exploitation and use of renewable energy resources in the state. Since, its inception, OREDA has provided renewable energy solutions to more than 2.00 Lakhs households in the state by providing solar photovoltaic power plants, solar home light systems, solar street light systems, biomass gasifier and biogas plants. The National Biogas & Manure 9

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Management Program (NBMMP) has been one of the major programs of OREDA right from its inception. Orissa is one of the leading states in the country as far as the biogas programme is concerned. OREDA has bagged two gold shields during 1995 - 96 & 1999 - 2000 for best overall performance at the national level. OREDAs vision is to make 10% of all new power capacity addition for the period up to 2012 from renewable energy. Orissa is the first State in the Country to take up Power Sector Reform to ensure stable and quality power at a reasonable cost. The Energy Department has three public Sector Undertakings viz. Grid Corporation of Orissa Limited (GRIDCO), Orissa Hydro Power Corporation Limited (OHPC) and Orissa Power Generation Corporation Limited (OPGC) under its Administrative control. The Orissa Electricity Regulatory Commission (OERC), which is a quasi judicial independent body, ensures a transparent regulatory regime in the power sector of the state.

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3.1 Introduction

Brief Profile of the Company

MGM Minerals Limited is a part of 100 Crore MGM Group and is into mining and exporting iron ore, having its own mines in Sundargarh district of Orissa. The Group is setting up an integrated steel plant of 0.25 MT per annum capacity including power plant of 16 MW Capacity through WHRB process. The first phase of the above plant will be commissioned in 4-5 months time. The plant is being set up in Dhenkanal district of Orissa. The plant includes sponge iron plant, waste heat recovery power plant and steel billets manufacturing facilities. The Group is also diversifying into Horticulture for which land has already been acquired in different districts in Orissa.

3.2 Promoters Background

The promoters of MGM Minerals Limited are Mr. Rajib Lochan Mohanty and Mr. Pankaj Lochan Mohanty and Mrs. Meenoti Mohanty.

Rajib Lochan Mohanty

Mr. Rajib Lochan Mohanty is the son of Late Mana Govinda Mohanty, aged about 59 years (D.O.B 05-09-1950), Marine Engineer, is a resident of 2A, Forest Park, Bhubaneswar. He has 10

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years experience in shipping and 25 years experience in mining business. He is a Director Sun Alloys & Minerals Ltd. & MGM Minerals Ltd. His net worth is about Rs. 17.46 Crores.

Pankaj Lochan Mohanty

Mr. Pankaj Lochan Mohanty is son of Late Mana Govinda Mohanty, aged about 49 years (D.O.B 13-02-1961), is a resident of 2A, Forest Park, Bhubaneswar. He is a Director of Sun Alloys & Minerals Ltd., MGM Minerals Ltd., and Blue Lagoon Farms Pvt. Ltd. He has 25 years experience in mining business. His net worth is about 17.38 Crores.

Meenoti Mohanty
Mrs. Meenoti Mohanty is wife of Mr. Rajib Lochan Mohanty aged about 55 years (D.O.B. 15-0655) is a resident of 2A, Forest Park, Bhubaneswar. She has 15 years experience in mining business. He is a Director in Aeon Minerals (P) Ltd & MGM Minerals Ltd. Her net worth is about 0.50 Crore.

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Project Background

MGM Minerals Limited proposes to set up a 5 MW grid connected Solar Power plant at Khurda District in the state of Orissa with the objective of renewable power generation and supplying clean electricity to grid on BOO (Build, Own & Operate) basis. The main objective of the project promoter is to be in tune with the sustainable development priorities of the country and contribute towards climate change mitigation initiative envisaged by the host country government. Successful operation of the project activity will act as a cornerstone towards promotion of the technology. With an age long relationship in the domain the promoter is intended to set the project activity and demonstrates feasibility of grid interactive solar power in supplying of reliable clean energy to the grid and support electrical demand in the country, which is blessed with more than 320 days of sunshine. The solar power plant shall operate on the principle of direct conversion of sunlight to electrical energy by employing photovoltaic technology and supply it directly to the grid. The plant location is chosen as MGM Minerals Limited is having 15 acres of open land available in that region, which is well suited for solar PV installations and hence will reduce the leveling cost, shadow losses and cost for cabling as well due to its proximity to grid. MGM Minerals Limited is also in the process of acquiring 10 acres of land adjacent to the current 15 acres of land. 33 KV line of adequate capacity is available nearby at Jankia, Khurda district about 5 Km from the proposed site and connectivity to the proposed plant can be nade by drawing 5 Km of 33 KV line for power synchronization with state grid through CESUs 33 KV system. The promoter will ensure installation of the proposed solar plant and related infrastructure will meet international standards for the industry. The power plant will be scheduled for commissioning within one year from the date of possession of land through the Orissa Government. The power plant shall consist of: Solar Array capacity (5 MW - rated high efficiency modules) Solar Modules Mounting Structure (may be with a combination of stationary and tracking systems) Power Conditioning Unit 10 nos. of 500 kVA main inverters. Data Logging System Monitoring Equipments 12

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Junction Boxes Cables & Earthling materials Distribution Panels Control Room

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5
5.1

Meteorological information

Radiation Climatology of India

The solar radiant energy, in its passage through the atmosphere undergoes depletion due to absorption and scattering by the various constituents of the atmosphere at different levels. While most of absorptions are due to radiatively active gases, chief of which are carbon dioxide, ozone and water vapour, the scattering takes place due to all constituents of the atmosphere including suspended particulate matter. The singlemost modifier of the radiation field is the cloud, both due to absorption and scattering processes. Both the absorption and scattering processes take place selectively, i.e. specific gases absorb or scatter at specific wavelengths/wavelength bands. The absorption can be weak or strong and partial or total. The scattering occurs both in the forward and backward directions. The back scattering process can be termed as reflected radiant energy at the appropriate levels. Ultimately, the radiant energy that reaches the earths surface is made of the direct beam solar irradiation, the scattered (diffuse) solar irradiation and the downward terrestriant radiant energy from the atmosphere. This heats up the earths surface and causes evaporation of moisture in the soil and over water surfaces. The earths surface and the constituents of the atmosphere including clouds and particulate matter emit radiant energy in the infra-red region at their own temperatures. This energy is absorbed by different atmospheric layers at different wavelengths, resulting in higher energy level content. But these absorbing layers also emit their heat resulting in the lowering of the heat energy content. However, since the temperatures of the different layers decrease as the height increases in the tropospheric region, the downward radiant energy from the higher layers is generally lower than those emitted upward by the lower layers. This results in a net loss of the radiant energy in the infra-red wavelengths (terrestrial radiant energy). It is in this terrestrial radiant energy regime that all living organisms including humans are immersed fully and thrive. It is also this energy field which causes the changes in the temperature of the air layer close to it and hence the density of air, leading a chain of interactions to affect the atmospheric temperature and humidity and then the atmospheric pressure and the wind field. This ultimately causes the weather patterns and the changes in them. The amount of radiant energy from the sun over a place is not the same on each day. The varying distance between the sun and the earth contributes to a small percentage in the radiation field. Because of the tilt of the axis of rotation of the earth about itself, the length of the day and night over a place changes everyday. Also because of the tilt and the rotational movement of the earth, various parts of the earth are irradiated differently leading to differential heating of any part on the earths surface. Superposed over this is the varying topography of the earths terrain, the relative distances from the oceans and the latitudinal 14

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distance from the equator. Thus the amount of solar radiant energy at a place varies depending on the time of the day and the season. The amount is quite low at the time of sunrise or sunset as the radiant energy has to traverse a longer pathlength than what it will be when the sun is at its zenith position. Besides, the radiant energy is vastly affected by the different types and amounts of clouds. Naturally occurring events like volcanoes, storms and forest fires and the pollutants released into the atmosphere by the human and animal activities do reduce the amount of radiant energy reaching the earths surface due to increased absorption and scattering effects. Thus the radiation regimes are quite likely to be different even between two adjoining regions and hence their monitoring is highly desirable and beneficial. Global Solar Radiation January

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February

March

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April

May

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July

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August

September

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October

November

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December

5.2 Radiation Climatology of Orissa

Orissa is blessed with ample solar radiation throughout the year and is ideal for solar power project. Based on the average insolation data the proposed Solar Plant is estimated to generate 8.322 million units of electrical energy annually. Month Jan 4.65 day) Feb 5.35 Mar 6.02 Apr 6.51 May 6.44 Jun 4.70 Jul 3.91 Aug 3.93 Sep 4.30 Oct 4.83 Nov 4.55 Dec 4.34

Insolation
(kWh /m2/

Source: NASA

5.3

Meteorological Data
19 0 28 N 20 0 17 N

Southern Latitude: Northern Latitude

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Western Longitude Eastern Longitude Mid Latitude Mid Longitude Insolation Incident On A Horizontal Surface [kWh/m2/day]: Insolation Clearness Index 84 0 29 N 86 0 25 N 190 53 N 85 0 56 N 4.96 0.53

Month

Monthly Average Insolation [kWh/m2/day

Monthly Average Clearness Index K

Monthly Average Daylight Hours

Monthly Average Daylight Cloud Amount (%) 26.8 28.3 32.5 41.5 51.9 76.1 82.5 82.9 71.1 51.2 38.5 24.5

Monthly Average Relative Humidity at 10 m (%) 56.6 63.4 65.6 71.6 77.1 80.8 82.1 82.1 81.5 75.3 60.9 52.3

Monthly Average clear sky days

Monthly average day time cloud amount (%) 26.8 28.3 32.5 41.5 51.9 79.5 82.5 82.9 71.1 51.2 38.5 24.5

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

4.71 5.46 6.12 6.49 6.30 4.51 4.00 4.01 4.34 4.63 4.48 4.51

0.61 0.63 0.62 0.61 0.57 0.41 0.36 0.37 0.43 0.51 0.57 0.62

11.0 11.5 12.0 12.6 13.0 13.3 13.2 12.8 12.2 11.7 11.2 10.9

13 12 8 4 2 0 0 0 1 5 10 17

5.4

Climate Data
Temperature (0C) Maximum Minimum 29 36 36 39 38 22 14 16 21 27 27 Average Day Temperature (0C) 21.5 26.0 28.5 33.0 32.5 Normal Rainfall (in mm.) 12.6 27.1 24.3 27.2 52.9

Month

January February March April May

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June July August September October November December 36 34 31 33 33 31 30 23 22 20 22 20 18 17 29.5 28.0 25.5 27.5 26.5 24.5 23.5 225.1 347.7 357.5 217.5 86.3 20.4 3.3

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6
5.1 Profile of the District
State District

Site Selection

Orissa District Background: The District KHURDA came into being on 1 st April, 1993 by dividing it off its erstwhile Puri District which after division became Puri, Khurda and Nayagarh. Later on in the year 2000 the District name is changed as KHORDHA. Basic Information of the District : Sub-division - 02 Tehasil - 10 Blocks - 10 Notified Area Council (NAC) - 02 Municipality - 02 Municipal Corporation - 01 Parliamentary Constituency - 2 Assembly Constituency - 08 The district is bounded by Cuttack, Nayagarh, Puri and Ganjam districts. Location: Latitude - 1940' N to 2027 N Longitude - 8456' E to 8605 E

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5.2 District Map

Proposed Site

5.3 Profile of the Land

The proposed project is in: Village Tehasil Police Station Area of the land Patrapada Tangi Tangi Police Station 25 acres

Satellite view of the proposed land:

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6
6.1 Proposed technology

Technical Features

Poly crystalline technology based modules will be used in the proposed power plant. These modules are made with high efficiency multi crystalline solar cells (i.e. 13% to 17%). Polycrystalline solar cells are made by a casting process in which molten silicon is poured into a mould and allowed to cool, then sliced into wafers. This process results in cells that are significantly cheaper to produce than single crystal cells, but whose efficiency is limited to less than 20% due to internal resistance at the boundaries of the silicon crystals. These polycrystalline solar cells are best candidates for large-scale application of photovoltaic energy conversion because they have shown efficiencies in excess of 15%. These cells are encapsulated between a low iron content high transitivity tempered glass and premium quality back sheet to provide efficient protection from the environmental conditions. The laminates are framed with strong, robust and anodized aluminum profile with multiple holes for ease of installation. The modules are fitted with 4 terminal Tyco junction box with 16A, 40V schottky bypass diodes (3 diodes) and plug in connectors.

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6.2

Plant Layout

The Photovoltaic (PV) Grid connected power plant comprises of mainly of 3 components: The PV array, Module Mounting Structure and the Inverters. The PV array converts the light energy to direct current (DC) power. The Module mounting structure is used to hold the module in position. The DC power is converted to alternating current (AC) power by the PCU, which is connected to the utility power grid.

As part of the land requirement for the 5 MWp Solar plant, MGM Minerals has estimated 25 acres for the project activity based on the panel size. Based on the system design developed for this potential project, a 5 MWp PV array would require approximately 25 acres of land.

6.3

Plant Specification
Standard Test Conditions (STC) Unit ELDORA 40 Pmax (W) Vmp (V) Imp (A) Voc (V) Isc (A) Vsys (V) IEC/UL Tk (Pmax) 37 17.0 2.25 21.8 2.40 1000 V 2.5 W 40 17.1 2.35 21.9 4.45

Electrical Specification Specification Module Name Rated Power Voltage at Maximum Power Current at Maximum Power Open Circuit Voltage Short Circuit Current Maximum system Voltage Temp. coefficient of Pmax

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Electrical Specification Specification Normal Operating Cell Temp. Standard (STC) Test Conditions Unit 45 C 2 C Normal Temperature 2 1000 W / m , 25 C, AM 1.5 Operating Cell Standard Test Conditions (STC)

Mechanical Specification Length Width Weight Thickness (including J-box) Module Area Module type Frame material Glass Type Encapsulation Output Cable/Connectors cm cm kg cm cm2 Poly - crystalline solar cells High torsion & anodized aluminum frame provides structural strength and protection from corrosion. Tempered low iron content 3.2 mm front glass for efficient sunlight absorption. Low iron content high transitivity tempered glass and premium quality back sheet 4-terminal Tyco junction box with 16A, 40V schottky by pass diodes (3 diodes). Modules are designed to meet IEC 61215, IEC 61730 & UL 1703 certification standard. 55.2 66.6 4 3.4 15.6 * 5.2

Inverter: An inverter is an electrical or electro-mechanical device that converts direct current (DC) to alternating current (AC); the resulting AC can be at any required voltage and frequency with the use of appropriate transformers, switching, and control circuits. Inverters are commonly used to supply AC power. In present case of solar electricity generation, this is the device that takes the dc power from the PV array and converts it into standard ac power evacuated to the Grid. The power conditioning unit will be chosen from either of the following types:

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Option I: 10 numbers of 500 kVA current-controlled grid-connect inverters will be used for interface with grid. The system will have full protection as per international standard, such as IEEE 929-2000 & UL 1741, for protection against grid over voltage / frequency, islanding and all other fault conditions. Suitable lighting protection and earthling system will be installed for safety of personnel and protection of the equipment. An integrated data logging system for performance measurement and visual display of the important parameters, such as daily/ monthly and cumulative energy generated w. r. t. solar intensity, wind velocity, ambient temp, module temperature etc. will also be installed.

Option- II: High efficient inverter modules will be ground mounted in series and parallel strings. 834 numbers of 6 kW or 625 numbers of 8 kW string inverters will be used for interface with grid. The system will have full protection as per international standard, such as IEEE 929-2000 & UL 1741, for protection against grid over voltage /frequency, islanding and all other fault conditions. Suitable lighting protection and earthling system will be installed for safety of personnel and protection of the equipment. An integrated data logging system for performance measurement and visual display of the important parameters, such as daily / monthly and cumulatively energy generated w. r. t solar intensity, wind velocity, ambient temp, module temperature etc. also be installed.

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The above mentioned details are for probable system planned to be installed at the proposed Solar Park. Option III: Sunny Boy Grid-Connect inverters (SB- 1100 Sunny Boy 1100 W String Inverter) will be used with one series string of between 40 photovoltaic modules per inverter. 333 Inverter Units can be linked in parallel allowing extreme system design flexibility with the possibility of low cost system expansion and maximum system efficiency. This makes the inverter ideal for use alone or as part of a large PV plant. This make installation is safer and easier, special polarized plug in Multi Contact cable connectors are used for DC input and an AC connector for the grid connection. The inverters can be located as close to the PV string as desired (even on the roof, IP65 protection), eliminating long DC wire runs and allowing low DC currents. Inverters automatically shut down in the event of: High/Low grid AC-voltage; High/Low grid frequency; Grid failure; or Inverter Malfunction. These inverters automatically adjust PV array loading to provide maximum efficiency of solar panels by means of a maximal power point tracker (MPPT). Technical Specification (SB - 1100 Sunny Boy 1100 W String Inverter) Number of panels required Output Voltage Range Output Frequency Range Power consumption in operation Power consumption at night (standby) Max. efficiency Certification Solar module mounting structure: Ground mounted solar arrays require fairly precise foundation setup, are more susceptible to theft/vandalism. 30 333 207 -264Vac 47.0 - 50.5 Hz ~ 4W 0.1W. >93% G83

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Control Room: A control room facility that will house the centre's communications and control systems will be there at the plant site. The control room building will house all the electronic equipment like MCB, Central Inverters, Low Voltage Panels, Transformer and high voltage panel. Junction Boxes: An electrical junction box is a container for electrical junctions, usually intended to conceal them from sight and to some extent to eliminate tampering. Junction boxes form an integral part of a circuit protection system. Monitoring equipments: Monitoring equipment enables a system owner to track system production and to benchmark power generation against installer projections to ensure that systems are operating properly. Monitoring systems can also be used to automate the recording of kilowatt-hour generation. Cables and connectors: Solar cables are extremely robust and resist high mechanical load and abrasion. High temperature resistance and excellent water proofing characteristics provide a long service life to the cables used in large scale projects. The connectors with high current capacity and easy mode of assembly are to be used for the connections of the power plant cables.

6.4 Civil Infrastructure

Leveling: Preliminary leveling shall be required for the land to have the PV filed in the same plane. However, in this case, it is not entirely possible. Hence the structures are designed to maintain the horizontal plane. Trenches: All the conduits between the various connection points will be subterranean and routed in trenches. Construction Roads: A network of interconnected tracks provides accessibility to the different places in the plant. There are two different types of tracks: Main track: This runs and along the perimeter Secondary tracks: These connect the main tracks along the rows of structures.

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Detailed Project Report

Final Roads: Main roads inside the plant as well as the access tracks to the plant will be conditioned to permit the traffic of all kind of vehicles during normal operation including visiting. Fencing: A fence shall be installed along the perimeter of the plant. Building: There will be a building to house the inverters and the switchgears. An option to have outdoor inverters is also considered and in this case they could be placed outside of the building.

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Detailed Project Report

7 Power Evacuation
The electricity generated from Solar Park can be fed to either 33 kV line by putting a sub-station. Alternatively the electricity can be fed to the nearest sub-station by laying a HT transmission line.

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Project Execution Plan

The project is planned to be implemented at the earliest. The most essential aspect regarding the implementation of the project is to ensure that the project is completed within the scheduled. The project zero date starts once the clearance is being obtained. It is envisaged that the project will have the following phases of activity. Phase I Project Development Phase II- Finalization of equipment and contracts Phase III- Procure & Construction Phase IV- Plant Commissioning

Project Development: In a power project development of the project plays an important role. Almost 50% of the work is done if one achieves the power purchase agreement from the respective state utilities. The project development start with visits to the region, understanding about the regional conditions, socio economic conditions, transportation facilities and infrastructure facilities available in the region. Apart from the above the tasks listed below will be under project development; Preparation of Detailed Project Report (DPR) Submission of DPR Power Purchase Agreement Clearance from State Level Technical Committee and Land acquisition (Govt. land preferred)

During this phase, a project team will be formed for the execution of the project. The engineers from this group will be involved from early stages of execution of project. These personnel should evolved critical team of installation of commissioning. After the plant is commissioned these engineers and technicians should occupy key position in the organization structure for the operation and maintenance of the plant. The responsibilities of the project team shall be Planning & Programming of all resources required for project completion Inspection of major fabrication items Organize the construction and commissioning of the plant 34

Detailed Project Report

Monitoring and controlling the project process Execute the project within the planned budget

Finalization of equipment and contracts: In the power plant modules and junction boxes are lead items and the planning schedule for the project implementation should provide adequate time period for the acquisition and installation of these equipments. The specification for major equipment shall be drawn up at an early stage of the project. Programme of design information, from the equipment suppliers, that satisfied the overall project schedule shall be drawn up. Since the project execution calls for closer coordination among the contractors, consultants, and the company, proper contract coordination and monitoring procedures shall be made to plan and monitor the project progress. Procurement & Construction: The procurement is an important function of the implementation of the project. Once the purchase order is place, the project team follows up regularly to ensure smooth and timely execution of the contract and for obtaining technical information for the inter packing engineering. When the contracts for the equipment are awarded, detailed programme in the form of network are tied up with the supplier to clearly indicate the owners obligations and the suppliers responsibilities. Upon placement of the purchase order, the project team shall follow up regularly to ensure smooth and timely execution of the contract and or obtaining technically information for the inter package engineering. The procurement activity includes review of review of drawings, expediting, stage and final pre delivery inspection, supervision of installation and commissioning. During construction the erection and commissioning phase of the contract should proceed simultaneously. Adequate power and water shall be made available at site for the construction. Construction manager takes the overall responsibility of the site. Plant Commissioning: The commissioning phase in a project is one were design, manufacturing, erection and quality assurance expertise are put to test. The commissioning team will be from manufacturer of the equipment, consultant and the company as discussed in the earlier section, staff identified to operate the plant will be involved in the commissioning phase is completed, a checklist shall designed to ensure that the plant has been properly installed with appropriate safety measures. The commissioning team will follow the internal operating instructions. The plant shall be subjected to a performance test. 35

Detailed Project Report

9 Operational Features
9.1 Factors Effecting Generation
Standard Test Conditions: Solar modules produce dc electricity. The dc output of solar modules is rated by manufacturers under Standard Test Conditions (STC). These conditions are easily recreated in a factory, and allow for consistent comparisons of products, but need to be modified to estimate output under common outdoor operating conditions. STC conditions are: solar cell temperature = 25 0C; solar irradiance (intensity) = 1000 W/m2 (often referred to as peak sunlight intensity, comparable to clear summer noon time intensity); and solar spectrum as filtered by passing through 1.5 thickness of atmosphere (ASTM Standard Spectrum). A manufacturer may rate a particular solar module output at 100 Watts of power under STC, and call the product a 40-watt solar module. This module will often have a production tolerance of +/-5% of the rating, which means that the module can produce 37 Watts and still be called a 40-watt module. To be conservative, it is best to use the low end of the power output spectrum as a starting point (37 Watts for a 40-watt module). Temperature: This is defined by percentage drop in power output for every degree of temperature increase. It is the effect of temperature variation.

Dirt and dust: Dirt and dust can accumulate on the solar module surface, blocking some of the sunlight and reducing output. A typical annual dust reduction factor to use is 93% or 0.93. So the 40- watt

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Detailed Project Report

module, operating with some accumulated dust may operate on average at about 79 Watts (37 Watts x 0.93 = 34 Watts). Mismatch and wiring losses: The maximum power output of the total PV array is always less than the sum of the maximum output of the individual modules. This difference is a result of slight inconsistencies in performance from one module to the next and is called module mismatch and amounts to at least a 2% loss in system power. Power is also lost to resistance in the system wiring. These losses should be kept to a minimum but it is difficult to keep these losses below 3% for the system. A reasonable reduction factor for these losses is 95% or 0.95. DC to AC conversion losses: The dc power generated by the solar module must be converted into common household ac power using an inverter. Some power is lost in the conversion process, and there are additional losses in the wires from the rooftop array down to the inverter and out to the house panel. Modern inverters commonly used in residential PV power systems have peak efficiencies of 92 94% indicated by their manufacturers, but these again are measured under well-controlled factory conditions. Actual field conditions usually result in overall dc-to-ac conversion efficiencies of about 88-92%, with 90% or 0.90 a reasonable compromise. So, the 40-watt module output, reduced by production tolerance, heat, dust, wiring, ac conversion, and other losses will translate into about 68 Watts of AC power delivered to the house panel during the middle of a clear day (40 Watts x 0.95 x 0.89 x 0.93 x 0.95 x 0.90 = 28 Watts).

9.2 Organization of power plant O &M

The organization proposed ensures that the power plant will be headed by a plant engineer holding the full charge of the power plant operations. The plant engineer should have experience in solar power technology. Two more technicians will be required for regular monitoring and a few casuals can be engaged for regular cleaning of the solar modules. During commissioning of the plant training will be imparted to the engineers and supervisors. The operational training shall cover the following: The nature, purpose and limitations of all plant and equipments. The detailed operating instructions of each sanctions and equipment of the plant. The emergency procedures and all related HAC issues according the standard. The basis for the training shall be the plants operations and maintenance manual, contract documents and drawing provided by the manufacturer

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Detailed Project Report

Sl. No. 1 2 3 4 5 6 7 Particulars Plant Manager Degree Engineer Diploma Engineer ITI - Technician ITI - Supervisor Accounts & Administration Security & Service (Outsource) Total Number 1 1 2 3 3 1 1 12

9.3 Protection of People and Equipment

The plant will work autonomously with a small amount of preventive maintenance. A monitoring system will advise if any corrective maintenance is needed. Residues produced during construction will be disposed of in recycling centres. No toxic waste is produced. Sanitary container cabinets are foreseen. During plant operation, no residues will be produced, except occasional breakdown of equipment, which will be recycled by the manufacturer or disposed of as during construction phase. During the construction phase noise sources in all cases will be far from residential areas. In exploitation phase, the PV modules work completely noiseless. Each inverter will produce a noise level below 72dB. Personnel protection is guaranteed by electrical separation between the grid and the PV generator via a grid transformer along with insulation monitoring of PV generator.

Further personnel protection is ensured with the overloading, over voltage and Reverse current protections in built in the central inverter.

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Detailed Project Report

10 Financial Analysis
10.1 Key Assumption
Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Particulars Project Size Project Life Debt : Equity Project Cost Term Loan Rate of Interest on Term Loan Rate of Interest on Working Capital Loan Tenure Moratorium Tax Rate Tax Holidays (Sec 80IA Deduction) MAT Tax Rate Operation & Maintenance Cost Escalation in O & M cost Insurance on WDV of Assets Inflation rate Power Sale Price Capacity Utilization Factor Number of Working days Working Hours 1 MW Hour Degradation Factor Grid Emission factor CER Price in EURO 1 EURO Expenditure on CDM Annual Admin Expenses Data 5 25 2.33 7,705.44 5,368.37 13.39% 12.89% 10 0 33.99% 0 16.995% 8.50 5.72% 0.00% 5.72% 17.91 19% 365 24 1000 0.00% 0.84 12 65 10% 4 Days per annum Per day kWh Per annum tCO2 / MWh Per CER INR of revenue Rs. in Lakhs Rs. In Lakhs /MW Per annum Per annum Per annum Rs. per kWh Years Rs. in Lakhs Rs. in Lakhs Per annum Per annum Years Years Unit MW Years

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Detailed Project Report

10.2 Project Cost

Rs. in Lakhs Sl. No. 1 a) b) 2 a) 3 a)
4 a) b) 5 a) b) 6 7 a)

Description
Land & Land Development Land Land Development Office Building Building and Civil Construction Plant & Machinery Solar Modules (with junction box; w/o brackets) Other Fixed Assets Furniture & Fixture Other Office Equipment Preliminary & Pre-Operative Expenses Company Incorporation Pre-Operative Expenses Contingency Working Capital (3 Months Operating Expenses) Total Project Cost

Amount

Total Amount
60.00

45.00 15.00 40.00 40.00 7,500.00 7,500.00 40.00 20.00 20.00 40.00 15.00 25.00 750.00 25.44 25.44 7,705.44

10.3 Means of Finance

Sl. No. 1 2 3 4 a) b) Particulars Total Cost of Project Debt : Equity Ratio Promoters Contribution Total Loan Fund Working Capital Term Loan Total Rs. In Lakhs 7,705.44 2.33 2,311.63 5,393.80 25.44 5,368.37 7,705.44

40

10.4 Profitability Statement

10.4.1 Projections of Performance, Profitability and Repayment
Rs. In Lakhs Construction Period Y0 Power Revenue Units Generated (MWh) Selling price per unit (Rs.) Sales Income without CDM CDM Revenue CER Generated (tCO2) CER Price in EURO CDM Revenue Total Revenue with CDM Without CDM Annual Cost Operation and Maintenance Administrative Expenses Salary Interest on Loan Depreciation Total Expenditure (without CDM) Profit Before Tax Without CDM Taxable Profit without CDM Income Tax Profit After Tax without CDM With CDM Expenditure on CDM Total Expenditure (with CDM) Profit Before Tax With CDM Add : Depreciation Less : Depreciation Income Tax Taxable Profit with CDM Income Tax Profit After Tax with CDM 0 0.00 0 0 Operational Period Y1 8322 18 1490 6990 12 55 1545 Y2 8322 18 1490 6990 12 55 1545 Y3 8322 18 1490 6990 12 55 1545 Y4 8322 18 1490 6990 12 55 1545 Y5 8322 18 1490 6990 12 55 1545 Y6 8322 18 1490 6990 12 55 1545 Y7 8322 18 1490 6990 12 55 1545 Y8 8322 18 1490 6990 12 55 1545 Y9 8322 18 1490 6990 12 55 1545 Y10 8322 18 1490 6990 12 55 1545

43 4 52 706 530 1,335 156 -5,321 156 5 1,340 205 530 6,007 -5,272 205

45 4 55 667 530 1,301 190 -486 190 5 1,306 239 530 1,206 -437 239

48 4 58 622 530 1,262 229 513 229 5 1,267 278 530 246 562 278

50 4 62 571 530 1,217 274 750 274 5 1,222 323 530 53 799 323

53 4 65 513 530 1,165 326 841 326 5 1,170 375 530 14 890 375

56 4 69 446 530 1,105 386 909 386 5 1,110 435 530 6 958 435

59 4 73 370 530 1,036 455 980 455 5 1,041 504 530 5 1,029 504

63 4 77 283 530 957 534 1,060 534 5 962 583 530 4 1,109 583

66 4 81 184 529 865 625 1,151 625 5 871 674 529 4 1,200 674

70 4 86 71 529 760 730 1,256 730 5 766 779 529 3 1,305 779

Detailed Project Report

Operational Period Y11 Power Revenue Units Generated (MWh) Selling price per unit (Rs.) Sales Income without CDM CDM Revenue CER Generated (tCO2) CER Price in EURO CDM Revenue Total Revenue with CDM Without CDM Annual Cost Operation and Maintenance Administrative Expenses Salary Interest on Loan Depreciation Total Expenditure (without CDM) Profit Before Tax Without CDM Taxable Profit without CDM Income Tax Profit After Tax without CDM With CDM Expenditure on CDM Total Expenditure (with CDM) Profit Before Tax With CDM Add : Depreciation Less : Depreciation Income Tax Taxable Profit with CDM Income Tax Profit After Tax with CDM 8322 18 1490 Y12 8322 18 1490 Y13 8322 18 1490 Y14 8322 18 1490 Y15 8322 18 1490 Y16 8322 18 1490 Y17 8322 18 1490 Y18 8322 18 1490 Y19 8322 18 1490 Y20 8322 18 1490 Y21 8322 18 1490 Y22 8322 18 1490 Y23 8322 18 1490 Rs. In Lakhs Y24 Y25 8322 18 1490 8322 18 1490

1490

1490

1490

1490

1490

1490

1490

1490

1490

1490

1490

1490

1490

1490

1490

74 4 91 3 102 275 1,216 1,315 447 769 275 1,216 102 3 1,315 447 769

78 4 96 3 102 284 1,207 1,306 444 763 284 1,207 102 3 1,306 444 763

83 4 102 3 102 294 1,197 1,296 441 756 294 1,197 102 3 1,296 441 756

88 4 108 3 102 304 1,186 1,286 437 749 304 1,186 102 2 1,286 437 749

93 4 114 3 102 315 1,175 1,275 433 742 315 1,175 102 2 1,275 433 742

98 4 120 3 102 327 1,163 1,263 429 734 327 1,163 102 2 1,263 429 734

103 4 127 3 102 340 1,151 1,251 425 726 340 1,151 102 2 1,251 425 726

109 4 134 3 102 353 1,138 1,238 421 717 353 1,138 102 2 1,238 421 717

116 4 142 3 102 367 1,124 1,224 416 708 367 1,124 102 2 1,224 416 708

122 4 150 3 102 382 1,109 1,209 411 698

129 4 159 3 101 396 1,094 1,194 406 689

137 4 168 3 101 413 1,078 1,177 400 678

144 4 177 3 101 430 1,061 1,160 394 666

153 4 188 3 101 448 1,042 1,142 388 654

161 4 198 3 101 468 1,023 1,122 381 641

382 1,109 102 2 1,209 411 698

396 1,094 101 1 1,194 406 689

413 1,078 101 1 1,177 400 678

430 1,061 101 1 1,160 394 666

448 1,042 101 1 1,142 388 654

468 1,023 101 1 1,122 381 641

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Detailed Project Report

10.4.2 Projected Cash Flow
Inflow Equity Capital Loan Fund Operational Income Total Cash Inflow Outflow Purchase of Assets Preoperative Expenses Repayment of Term Loan Total Cash Outflow Net Inflow/(Outflow) Cumulative Balance 7,640 40 7,680 25 25 274 274 461 486 313 313 455 942 358 358 450 1,391 409 409 444 1,835 467 467 437 2,272 534 534 430 2,703 610 610 423 3,126 697 697 416 3,542 796 796 408 3,949 909 909 399 4,349 Y0 2,312 5,394 7,705 735 735 769 769 808 808 853 853 905 905 964 964 1,033 1,033 1,113 1,113 1,204 1,204 1,309 1,309 Y1 Y2 Y3 Y4 Y5 Rs. In Lakhs Y6 Y7 Y8 Y9 Y10

Inflow Equity Capital Loan Fund Operational Income Total Cash Inflow Outflow Purchase of Assets Preoperative Expenses Repayment of Term Loan Total Cash Outflow Net Inflow/(Outflow) Cumulative Balance

Y11

Y12

Y13

Y14

Y15

Y16

Y17

Y18

Y19

Y20

Y21

Y22

Y23

Rs. In Lakhs Y24 Y25

871 871

865 865

858 858

851 851

844 844

836 836

827 827

819 819

809 809

800 800

789 789

778 778

767 767

755 755

742 742

871 5,220

865 6,085

858 6,943

851 7,794

844 8,637

836 9,473

827 10,301

819 11,119

809 11,929

800 12,729

789 13,518

778 14,296

767 15,063

755 15,818

742 16,560

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10.4.3 Projected Balance Sheet

Y0 Liabilities Capital Equity Capital Reserve & Surplus Loan Fund Term Loan WC Loan Other Liability Total Assets Fixed Assets Gross Block Depreciation Net Block Investment Current Assets Cash & Bank Balance Other Current Assets Total Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

2,312 5,368 25 7,705

2,312 205 5,094 25 7,636

2,312 444 4,781 25 7,561

2,312 721 4,423 25 7,481

2,312 1,044 4,013 25 7,395

2,312 1,419 3,546 25 7,302

2,312 1,854 3,012 25 7,203

2,312 2,357 2,402 25 7,097

2,312 2,940 1,705 25 6,983

2,312 3,615 909 25 6,861

2,312 4,394 0 25 6,731

7,640 7,640 25 40 7,705

7,640 530 7,110 486 40 7,636

7,640 1,060 6,580 942 40 7,561

7,640 1,590 6,050 1,391 40 7,481

7,640 2,120 5,520 1,835 40 7,395

7,640 2,650 4,990 2,272 40 7,302

7,640 3,180 4,460 2,703 40 7,203

7,640 3,709 3,931 3,126 40 7,097

7,640 4,239 3,401 3,542 40 6,983

7,640 4,768 2,872 3,949 40 6,861

7,640 5,298 2,342 4,349 40 6,731

Rs. In Lakhs Y11 Liabilities Capital Equity Capital Reserve & Surplus 2,312 2,312 5,163 5,926 2,312 6,682 2,312 7,431 2,312 8,173 2,312 8,907 2,312 9,632 2,312 10,349 2,312 11,057 2,312 11,755 2,312 12,443 2,312 13,121 2,312 13,788 2,312 14,442 2,312 15,083 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y21 Y22 Y23 Y24 Y25

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Loan Fund Term Loan WC Loan Other Liability Total Assets Fixed Assets Gross Block Depreciation Net Block Investment Current Assets Cash & Bank Balance Other Current Assets Total 5,220 6,085 40 40 7,500 8,263 6,943 40 9,019 7,794 40 9,768 8,637 40 10,510 9,473 40 11,244 10,301 40 11,969 11,119 40 12,686 11,929 40 13,394 12,729 40 14,092 13,518 40 14,781 14,296 40 15,458 15,063 40 16,125 15,818 40 16,779 16,560 40 17,420 7,640 7,640 5,400 5,502 2,240 2,138 7,640 5,604 2,036 7,640 5,706 1,934 7,640 5,808 1,832 7,640 5,910 1,730 7,640 6,011 1,629 7,640 6,113 1,527 7,640 6,215 1,425 7,640 6,317 1,323 7,640 6,417 1,223 7,640 6,518 1,122 7,640 6,619 1,021 7,640 6,720 920 7,640 6,820 820 25 25 25 9,019 25 9,768 25 10,510 25 11,244 25 11,969 25 12,686 25 13,394 25 14,092 25 14,781 25 15,458 25 16,125 25 16,779 25 17,420

7,500 8,263

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10.4.4 Interest and Repayment Schedule Term Loan
Int. rate Opening Balance Loan Obtained Repayment Closing Balance Amount of Interest 13.39% 5368 5368 0 274 5094 702 Y1 5094 0 313 4781 663 Y2 4781 0 358 4423 619 Y3 4423 0 409 4013 568 Y4 4013 0 467 3546 509 Y5 3546 0 534 3012 443 Y6 3012 0 610 2402 367 Y7 2402 0 697 1705 280 Y8 1705 0 796 909 181 Rs. In Lakhs Y9 Y10 909 0 909 0 67

Rs. In Lakhs Y1 Interest on Loan 706 Y2 667 Y3 622 Y4 571 Y5 513 Y6 446 Y7 370 Y8 283 Y9 184 Y10 71 Y11 3 Y12 3 Y13 3 Y14 3 Y15 3 Y16 3 Y17 3 Y18 3 Y19 3 Y20 3 Y21 3 Y22 3 Y23 3 Y24 3 Y25 3

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10.5 Financial Analysis

10.5.1 Debt Service Coverage Ratio:
Rs. In Lakhs With CDM Revenue Net Profit after Tax Add : Interest Add : Depreciation Cash Accrual Total Int & Repayment DSCR Average DSCR with CDM Without CDM Revenue Net Profit after Tax Add : Interest Add : Depreciation Cash Accrual Total Int & Repayment DSCR Average DSCR without CDM 1.39 1.44 Y0 Y0 Y1 156 706 530 1,392 980 1.42 Y2 190 667 530 1,386 980 1.41 Y3 229 622 530 1,381 980 1.41 Y4 274 571 530 1,375 980 1.40 Y5 326 513 530 1,368 980 1.40 Y6 386 446 530 1,361 980 1.39 Y7 455 370 530 1,354 980 1.38 Y8 534 283 530 1,347 980 1.37 Y9 625 184 529 1,339 980 1.37 Y10 730 71 529 1,330 980 1.36 Y0 Y1 205 706 530 1,441 980 1.47 Y2 239 667 530 1,435 980 1.46 Y3 278 622 530 1,430 980 1.46 Y4 323 571 530 1,424 980 1.45 Y5 375 513 530 1,417 980 1.45 Y6 435 446 530 1,410 980 1.44 Y7 504 370 530 1,403 980 1.43 Y8 583 283 530 1,396 980 1.42 Y9 674 184 529 1,388 980 1.42 Y10 779 71 529 1,379 980 1.41

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10.5.2 Internal Rate of Return:
With CDM Revenue Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Cash Inflow Cash Outflow Net Cash Flow Cumulative Cash Flow

0 461 2,312 2,312 2,312

Y11 Y12

455 455 1,395

Y14

450 450 946

Y15

444 444 502

Y16

437 437 65
Y17

430 430 366

Y18

423 423 789

Y19

416 416 1,205

Y20

408 408 1,612

Y21

399 399 2,012

Y22 Y23 Y24 Y25

461 1,851
Y13

With CDM Revenue

Cash Inflow 871 Cash Outflow Net Cash Flow 871 Cumulative Cash Flow 2,883
PAY BACK PERIOD with CDM IRR with CDM Revenue NPV @ 10% with CDM Y6 21.35% 2,052

865 865 3,747

858 858 4,606

851 851 5,457

844 844 6,300

836 836 7,136

827 827 7,964

819 819 8,782

809 809 9,592

800 -

789 -

778 -

767 -

755 -

742 -

800 10,392

789 11,181

778 11,959

767 12,726

755 13,481

742 14,223

Without CDM Revenue

Y0

Y1

Y2

Y3

Y4

Y5

Y6

Y7

Y8

Y9

Y10

Cash Inflow Cash Outflow Net Cash Flow

0 412 2,312 2,312 406 401 395 388 381 374 367 359 350 -

412

406

401

395

388

381

374

367

359

350

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Cumulative Cash Flow -2,312 -1,900 -1,494 -1,093 -698 -310 71 445 812 1,171 1,521

Without CDM Revenue Cash Inflow

Y11 871

Y12 865

Y13 858 858 4,115

Y14 851 851 4,966

Y15 844 844 5,810

Y16 836 836 6,645

Y17 827 827 7,473

Y18 819 819 8,292

Y19 809 809 9,101

Y20 800 800 9,901

Y21 789 -

Y22 778 -

Y23 767

Y24 755 755 12,990

Y25 742 742 13,732

Cash Outflow Net Cash Flow 871 Cumulative Cash Flow

865 3,257

789 10,690

778 11,469

767 12,236

2,392
PAY BACK PERIOD w/o CDM IRR without CDM Revenue NPV @ 10% w/o CDM Y6 19.78% 1,778

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11 Project Contribution to the sustainable development

Direct Benefits: Experience & training with Grid Connected PV systems Grid connected PV systems are becoming increasingly popular worldwide. As the cost of PV systems are approaching competitiveness with other conventional power, large scale use of solar PV power plants is envisaged in future. The first hand experience of engineers would help them to promote large scale use of solar projects in India. The power generated from the Solar Power Plant will help in meeting the demand due to expected growth of industry, utilizing existing transmission and distribution network and saving losses. Benefits to electricity Department: Voltage Support- the PV system will boost the voltage of grid electricity and prevent the voltage drop when large power is consumed by induction loads. The system will also supply power close to unity power factor thereby improving the grid quality and increasing its capacity. There will be savings in cost of voltage stabilization equipment such as shunt capacitors with controlled switches. In rural remote locations, at the end of the distribution systems where the voltages are known to be very low due to over loading and under sized grids, the solar power generating system would provide voltage support to the grid by feeding power during the day when peak day time loads cause the grid to overload. Social Benefits: This project can produce substantial reductions in green house gas emissions, particularly carbon dioxide. The countrys majority generation capacity is largely coal based and produces high quantity of carbon dioxide and other harmful gasses. If the untapped solar energy potential is realized, carbon dioxide and other toxic gas emissions can be lowered by significant quantity. Therefore, every kilowatt of solar energy produced has to be seen from this perspective and as a small but major step towards mitigation of carbon dioxide emission and subsequently combat climate change. For a 5 MWp Solar PV power plant in the region of Orissa, it is estimated that there will be reduction in the emission of green house gases by approx. 6990 tonnes of CO2 per year. There will also be reduction in NOx, SOx, suspended particles and other volatile organic compounds. The use of solar energy can prevent damage to lungs and other serious health problems, reducing SMOG and acid rain. The evil effects of climate change are briefly examined below to understand the long term social benefits: a. Rising levels of green house gases (GHGs predominantly carbon dioxide) are expected to cause climate change. By absorbing infrared radiation, these gasescontrol the flow of natural energy through the climate system. The climate has to adjust to the thickening blanket of GHGs climate models predict that the global temperature will rise by about 13.5 deg. C by the year 2100. It may be noted that this projected change is larger than any climate change experienced in the past.

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b. The mean sea level is expected to rise 15- 95 cm by the year 2100, causing flooding of low lying areas and causing other damages. Forests, deserts and other unmanaged ecosystems would face new climatic stresses. Human society will face new risks and pressures. Food security is likely to be affected and some regions are likely to experience food shortages and hunger. Water resources will be affected as precipitation and evaporation pattern change around the world. Sea level rise and extreme weather events could damage physical infrastructure. Sulphur emissions from coal and oil fired power stations produce clouds of microscopic particles that reflect sunlight back into space. This could cause acid rain.

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