Beruflich Dokumente
Kultur Dokumente
On
Submitted By:
Anish Kumar Deb
NPTI, MBA Power Management
DECLARATION
I, Anish Kumar Deb, Roll no. 14 / Semester 3rd / Class of 2012-14 of the MBA (Power
Management) of the National Power Training Institute, Faridabad hereby declare that the
Summer Training Report entitled:
Presentation In charge
(Faculty)
Signature of Candidate
Countersigned
Director/Principal of the Institute
ACKNOWLEDGEMENT
Learning experience is like no other, but to learn one seeks a teacher, a guide,
and I found all of these in MR. Vijay L. Sonavane (MEMBER MERC) who were
my project guide during my stay at MAHARASHTRA ELECTRICITY REGULATORY
COMMISION.
I would also like to thank MR. Anant Sant (DY DIRECTOR, TECHNICAL, MERC)
for the valuable teachings, Sir the inputs given by you will always be with me.
I also express gratitude towards MRS. Sarita Thakur (DY DIRECTOR,
ADINISTRATION AND FINANCE, MERC)for coordinating administrative
activities and other efforts.
I would like to thank MR. Amit Chilwe (REGULATORY OFFICER, MERC) who
helped me throughout my learning of each and every aspect. His guidance and
support made the learning easy and enjoyable.
I take this opportunity to express my sincere thanks to MRS. Megha Singhal
(REGULATORY OFFICER(FINANCE), MERC)who helped me and supported me
an guided me.
I would like to each and every person in MERC who helped me and
contributed in my project.
I also extend my thanks to all the faculty members and my batch
mates in CAMPS (NPTI), for their support throughout the course of
internship.
EXCECUTIVE SUMMARY
It is a known fact that Sun is the ultimate source of energy and mankind has been
harnessing Suns energy ever since the dawn of civilization. In modern era electricity has
become fundamental need of every human-being and the demand of it is rising by the day.
The world has awakened towards the need of alternate sources of electricity; hence almost
all major countries are coming up with policies to attract investors and industrialists. A study
of federal policies, regulations and incentives given in countries namely GERMANY, ITALY,
CHINA, UNITED STATES, JAPAN, FRANCE, AUSTRALIA and UNITED KINGDOM was done
during the training period.
To unite the effort towards reducing environmental pollution, nations united and formed
Kyoto protocol in which inter-country methods were designed to fulfil the binding target
set.
This report contains the provisions and important statements in the Indian federal
legislative documents relating to solar/renewable energy.
Comparative study of rules, regulations, policies and tariff components related to solar
technologies has been done of the states of India namely GUJARAT, RAJASTHAN,
KARNATAKA, MADHYA PRADESH, ANDHRA PRADESH, TAMIL NADU and CHATTISGARH.
Pros and Cons of state policies and regulations are mentioned from a developers point of
view after comparing them on the basis of parameters namely eligible producer, land
allotment, operative period, sale of power and tariff, wheeling, banking of electricity,
power, evacuation & grid interfacing and incentives & general.
The project proceeds with MERC initiative to develop solar power in Maharashtra. A model
solar policy is been prepared during the training period which may be helpful to encourage
more and more solar power generators across the state of Maharashtra.
Last but not the least a financial modelling of a Solar PV plant has been prepared for a
capacity of 1MW to determine various financial indicators i.e. IRR, NPV, DSCR and various
other parameters has been taken in to account for the project viability of a Solar PV plant.
Contents
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
CONCLUSION ............................................................................................................................. 44
13.
14.
15.
17.
COUNTRY
2010(MW)
2011(MW)
2012(MW)
GERMANY
17320
24875
32509
ITALY
CHINA
UNITED STATES
JAPAN
3502
893
2519
3617
12764
3093
4383
4914
16987
8043
7665
6704
FRANCE
AUSTRALIA
UNITED KINGDOM
INDIA
REST OF WORLD
1025
504
72
189
10137
2831
1298
1014
461
14051
3843
2291
1831
1686
20465
TOTAL
39778
69684
102024
2010(MW)
2011(MW)
2012(MW)
The 370 MW Ivanpah Solar Power Facility, located in California's Mojave Desert, is the
worlds largest solar thermal power plant (SINGLE TOWER TYPE) project currently under
construction.
The Solana Generating Station is a 280 MW solar power plant which is under construction
about 70 miles (110 km) southwest of Phoenix, Arizona.
35000
30000
25000
20000
15000
10000
5000
0
25039
17554
INSTALLED CAPACITY
10566
4170
2007
6120
2008
2009
2010
2011
2012
In the electricity sector, as of July 2010, feed-in tariffs for solar PV have been lowered
substantially while the incentive for auto-consumption (captive) was increased.
Agricultural
land
Sealed or
Conversion
land
Certain
other land
30 kW
0.0
22.07
21.11
28.74
>30 kW
and 100
kW
>100 kW
and 1,000
kW
>1,000
27.33
25.68
21.56
Kw
In addition, the degression rates where increased for 2011 and a flexible breathing cap
was introduced in order to adapt the degression rates to PV market development.
Different additional benefits are granted for certain characteristics, such as innovative
technology, the fulfilment of sustainability criteria, auto-consumption or high efficiency.
New installations are supported at different rates to modernized or retrofitted installations.
Investment costs for commercial systems (incl. Planning and installation) can be depreciated
over a 20 year period and other costs can be considered as operations cost
4.2 ITALY
12783
10000
INSTALLED CAPACITY
3470
5000
87
432
1144
2007
2008
2009
0
2010
2011
2012
Feed-in tariffs (15 years) for electricity produced by renewable energy plants with a
maximum power output of 1 MW (0.2 MW for wind energy), as an alternative to the green
certificates;
An incentive scheme (Conto Energia) for photovoltaic and solar thermodynamic plants
through the feed-in premium mechanism.This defines a premium for PV production
differentiated by size and level of architectural integration. The premium is constant for 20
years. The electricity produced can be used for own consumption, sale, or exchange with
the network (net metering up to 200 kW installed capacity). The initial premiums of 2007
have been reduced by 2% per year, and will be reduced by a further 2% for plants beginning
production in 2010.
An obligation has been introduced to install PV on new buildings: A minimum of 1 kW for
each residential unit has to be covered by RES and 5 kW in industrial buildings larger than
100 m2.
Electricity suppliers can fulfil their obligation using tradable Green Certificates, issued by
GSE, the body in charge of collecting resources from electricity suppliers and giving them to
the producers.The quota had an annual increase of 0.35%, from 2004 to 2006, and of 0.75%
from 2007 to 2012, though a change in the support system is expected in 2011.
Italys Conto Energia V solar incentive programme will expire on 6 July 2013 having reached
its cap of 6.7 billion and therefore cease any further investment into solar power.
4.3 CHINA
3300
4000
2000
100
140
300
2007
2008
2009
800
0
2010
2011
2012
Chinese government has employed most internationally recognized policies to stimulate the
development of renewable energies, e.g., mandatory renewable portfolio standards,
subsidies, special development funds, feed-in tariff, tax credits and etc.
Renewable Energy Law of Peoples Republic of China was first launched in 2006, followed
by Medium and long term development plan for renewable energy development and then
The eleventh five-year plan for renewable energy development in 2008. According to
these programs andregulations, the proportion of renewable energy in Chinas primary
energy consumption will be increased to 10% by 2010, and 15% by 2020.
The subsidys upper limit was set at 20 Yuan/Wp for the year of 2009, which can cover 3050% the production cost of the manufactures. This can be interpreted as a strong policy
driver for solar energy utilization, especially PV utilization.
Golden Sun Project aiming at accelerating the PV industries was launched in July, 2009.
The subsidies can go as high as 50% of the initial investments for the on-grid electricity and
its dispersion systems, 70% for the independent electricity generating system for the
remote areas.
If a national FIT policy for utility scale-solar plants is adopted, it is predicted that this new
type of solar policy will drive much faster growth in the Chinese solar market as compared
to Chinas existing roof-top subsidy and Golden Sun program, which focuses on remote
off-grid installations. It is expected that the tariff will fall between US $0.16 and US $0.22
per kilowatt hour of electricity produced at large-scale photovoltaic arrays.
4342
4000
3000
1000
INSTALLED CAPACITY
1818
2000
612
864
891
2008
2009
1212
0
2007
2010
2011
2012
4.5 JAPAN
INSTALLED CAPACITY IN MW
8000
7000
7000
6000
4914
5000
3618
4000
3000
2000
1919
2144
2007
2008
INSTALLED CAPACITY
2627
1000
0
2009
2010
2011
2012
In December 2008, the Ministry of Economy, Trade and Industry announced a goal of 70% of
new homes having solar power installed, and would be spending $145 million in the first
quarter of 2009 to encourage home solar power.
The government enacted a feed-in tariff on November, 2009 that requires utilities to
purchase excess solar power sent to the grid by homes and businesses and pay twice the
standard electricity rate for that power.
On June 18, 2012, a new feed-in tariff was approved, of 42 Yen/kWh, about 0.406 Euro/kWh
or USD 0.534/kWh. The tariff covers the first ten years of excess generation for systems less
than 10 kW, and generation for twenty years for systems over 10 kW. It became effective
July 1, 2012. In 2013, Japan is expected to install 5-9 GW of solar power.
In July, 2012, Japan's Ministry of Economy, Trade and Industry (METI) introduced a
restructured feed-in tariff in order to spike investments in large-scale renewable energy and
photovoltaic. Market segmentation and development in Japan are anticipated to change
significantly in the near future, with residential market share projected to fall sharply by
2013 and shift towards commercial, industrial, and small and large utility markets. These
sectors are expected to grow quickly through 2016, creating more room for foreign
manufacturers.
4.6 FRANCE
INSTALLED CAPACITY IN MW
4500
4027.6
4000
3500
2948.6
3000
2500
INSTALLED CAPACITY
2000
1197.3
1500
1000
500
98.2
103.9
289.3
0
3
The support scheme for PV projects was largely modified in December 2010. A clear
distinction between projects under 100kWp and projects above 100kWp has been made.
The impact is particularly important for large installation above 100kWp.
The government justifies this change by the fact that France is well on track on the
development of its solar portfolio, and that the industry has reached a satisfying inertia. The
government therefore now aims at stabilizing the yearly installation rate at 500MW (against
expected yearly installation rates of 1000MW to 1500MW between 2011 and 2012).
Large installations, above 100kWp, are not eligible for the feed-in tariff anymore. For
smaller installations, the tariff has been reduced progressively from December 2009, and
three categories have been created: integrated PV, partially integrated PV and ground based
installations.
As of January 1, 2011, larger projects (above 100kWp), or ground based projects will benefit
from a reduced feed-in tariff (120/MWh against a previously existing tariff of 328 /MWh).
Full integration of PV panels requires the panels to take a vital role in the structure of the
building (e.g.watertightness). A partially integrated installation requires panels to be fixed
on an existing building. For these installations tariffs range from 460 /MWh to
288.5/MWh. The table below details the different feed-in-tariffs.
4.7 AUSTRALIA
2291
2000
1500
1298
INSTALLED CAPACITY
1000
500
100
170
2007
2008
330
504
0
2009
2010
2011
2012
1655
1600
1400
1200
1014
1000
INSTALLED CAPACITY
800
600
400
200
18.1
22.5
26.5
71.5
2007
2008
2009
2010
0
2011
2012
The primary support mechanism for Renewable energy development in the UK is the
Renewables Obligation (RO), a quota system with tradable green certificates known as
Renewables Obligation Certificates (ROCs).
The RO is periodically revised. The RO was introduced in England, Wales and Scotland in
April 2002 and in April 2005 in Northern Ireland. The scheme was originally set to run until
March 2027. In 2010, the previous Government administration extended the scheme until
2037 However in December 2010 the new Coalition Government proposed in the Electricity
Market Reform (EMR).
From April 2010, plants under 50kW will no longer qualify for support under the RO, but are
instead eligible for support under the recently introduced FIT scheme. Maximum size limits
are in place for specific technologies.
Innovative funding programme has budget of 200 million pounds, of which 160 million have
been allocated to various schemes. Funding help is provided to innovators / Entrepreneurs
who develop and demonstrate low carbon technologies.They will be able to apply for 1
million pounds funding from government and can use that funding to leverage additional
funds from private sector investors. They will also be able to get support from experts on
how to bring their products to market. Of the 35 million, 20 million will initially support
energy efficiency technologies and 15 million will expand the call into power generation at
later stage.
SNO
STATE
INSTALLED CAPACITY(MW)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
ANDHRA PRADESH
CHATTISGARH
DELHI
GUJARAT
HARYANA
JHARKHAND
KARNATAKA
MADHYA PRADESH
MAHARASHTRA
ORISSA
PUNJAB
RAJASTHAN
TAMIL NADU
UTTAR PRADESH
UTTARAKHAND
WEST BENGAL
TOTAL
21.8
4.0
2.5
654.8
7.8
4.0
9.0
2.0
20.0
13.0
9.0
510.25
15.0
12.0
5.0
2.0
1686.44
1
2
3
TARGET
FOR CUMULATIVE
PHASE I
TARGET
FOR
(2010-2013)
PHASE II
(2013-2017)
Utility Grid Power including 1100MW
10000MW
rooftop
Off grid solar application
200MW
1000MW
Solar collectors
7 million sqmt
15 million sqmt
CUMULATIVE
TARGET
FOR
PHASE III
(2017-2022)
20000MW
2000MW
20 million sqmt
c. PHASE I OF JNNSM
Phase I of National Solar Mission was divided into two Batches i.e. batch I & II. In Batch I,
capacity addition of 150 MW of grid connected solar PV plants and 500 MW of grid
connected solar thermal plants was envisaged. Whereas in Batch II, the remaining targeted
capacity for Solar PV i.e. 350 MW was awarded.
Apart from these grid connected large scale plants, small rooftop plants of capacity less than
2MW each were also allotted under GBI scheme in Rooftop PV and small Solar Power
Generation Programme (RPSSGP).
SOLAR THERMAL
for Solar PV (Normal CERC Approved tariff for Solar Thermal
(Normal Depreciation)
1531 Paise/kWh
Minimum discount Maximum discount Minimum discount
offered(paise)
offered(paise)
offered(paise)
595
482
307
Total 30 SPV projects were selected after bidding process and subsequently 28 project
developers signed PPAs for 140 MW capacity with NVVN. Similarly seven solar thermal
projects were selected after bidding process and signed PPA with NVVN. Average tariff for
selected SPV projects was 1216 Paise/kWh which was 32% lower than the CERC approved
benchmark tariff of 1791 Paise/kWh. For solar thermal projects, average tariff for selected
projects was 1141 Paise/kWh which was 25% lower than the CERC approved benchmark
tariff of 1531 Paise/kWh for solar thermal plants.
In batch-I, a total of 704 MW capacity grid connected solar power projects have been
selected, which comprise of 500 MW capacity of solar thermal power projects and 204
MW of PV power projects.
JNNSM Batch II BIDDING RESULT SUMMARY
BATCH II SOLAR PV
CERC APPROVED TARIFF FOR SOLAR PV (NORMAL DEPRICIATION)
1539 Paise/kWh
Maximum discount offered(Paise/kWh)
Minimum discount offered(Paise/kWh)
790
595
FINAL TARIFF AFTER DISCOUNT FOR SOLAR PV
749
944
STATE
1
2
3
4
5
6
7
8
9
10
11
12
Andhra Pradesh
Chhattisgarh
Haryana
Maharashtra
Odisha
Punjab
Rajasthan
Tamil Nadu
Uttarakhand
Uttar Pradesh
Jharkhand
Madhya Pradesh
TOTAL
Balance
capacityto be
commissioned
(MW)
0.75
0
1
0
1
1.5
1
2
0
1
0
0
9.25
1
2
3
MAHARASHTRA
PUNJAB
RAJASTHAN
TOTAL
Balance capacity
to
be
commissioned
(MW)
0
0
6
6
RAJASTHAN
Solar
PV Solar
PV
capacity
capacity actually
allocated as per commissioned
PPA (MW)
(MW)
30
2.5
Balance capacity
to
be
commissioned
(MW)
27.5
Solar
PV
capacity to be
commissioned
as per PPA
(MW)
295
25
20
340
Balance
capacity to be
commissioned
(MW)
(ii)BATCH-1, PHASE-2
S. NO
STATE
1
2
3
Rajasthan
Maharashtra
Andhra Pradesh
TOTAL
Solar
PV
capacity
actually
commissioned
(MW)
285
5
0
290
10
20
20
50
14290
35
500
150
4.25
3.54
32.1
107
As can be seen from the figure above, the easiest route of selling RE to the obligated entities
is through the grid, as established by the connection (1).The accounting of the RE produced
by the generators is carried out by the SLDCs (1) the information of which is forwarded to
the national registry (3). If the generator chooses to sell their RE electricity through the REC
route, he makes an application to the national registry (2), after which a RECs is issued to
the generators (4) as per the amount of power generated, which they can trade in the
power exchanges. If these obligated entities cannot achieve their RPOs, they buy RECs in the
exchange to make up for whatever is the deficit in their supply mix (5), which are
redeemable at the national registry itself (6). The compliance reporting is done to the
monitoring committee of each state (7), which submits a quarterly report to each states
SERC.
10.
In order to give thrust for solar development, states also come up with Solar Policy to
attract the investor in this sector.
S.
NO
1
STATE
ANDHRA
PRADESH
ASSAM
BIHAR
CHATTISGARH
GUJARAT
HARYANA
HIMACHAL
PRADESH
JHARKHAND
10
KARNATAKA
KERELA
11
MADHYA
PRADESH
12
MAHARASHTRA
13
MEGHALAYA
ORDER
DATE
06 JULY
2010
TYPE
NON
SOLAR
SOLAR
21 JUNE NON
2010
SOLAR
SOLAR
16 NOV NON
2010
SOLAR
SOLAR
9 NOV
NON
2010
SOLAR
SOLAR
17APRIL NON
2010
SOLAR
SOLAR
NOV
NON
2010
SOLAR
SOLAR
12
NON
MARCH SOLAR
2010
SOLAR
31
NON
MARCH SOLAR
2010
SOLAR
16
NON
MARCH SOLAR
2011
SOLAR
23 NOV NON
2010
SOLAR
SOLAR
19 NOV NON
2010
SOLAR
SOLAR
7 JUNE NON
2010
SOLAR
SOLAR
21 DEC NON
2010
SOLAR
SOLAR
20102011
4.75%
20112012
4.75%
20122013
4.75%
20132014
4.75%
20142015
4.75%
0.25%
1.35%
0.25%
2.70%
0.25%
4.05%
0.25%
5.40%
0.25%
6.75%
0.05%
1.25%
0.10%
2.0%
0.15%
3.25%
0.20%
3.50%
0.25%
3.75%
0.25%
4.75%
0.50%
5%
0.75%
5.25%
1.0%
5.50%
1.25%
5.75%
0.25%
4.75%
0.25%
5.50%
0.25%
6%
0.25%
6.5%
0.25%
7%
0.25%
1.25%
0.5%
1.25%
1%
1.25%
1%
1.50%
1%
1.50%
0.25%
10%
0.50%
11%
0.75%
12%
1.0%
13%
1.25%
14%
0.10%
1.75%
0.10%
2.0%
0.10%
3.0%
0.10%
4.0%
0.10%
5.0%
0.25%
7%
0.50%
7%
1.0%
7%
1.0%
7%
1.0%
7%
0.25%
3.0%
0.25%
3.30%
0.25%
3.63%
0.25%
3.99%
0.25%
4.29%
0.25%
0.80%
0.25%
2.10%
0.25%
3.40%
0.25%
4.70%
0.25%
6.0%
0.40%
5.75%
0.60%
6.75%
0.80%
7.75%
1.05
8.5%
1.20%
8.5%
0.25%
0.60%
0.25%
0.80%
0.25%
1.20%
0.5%
1.40%
0.5%
1.60%
0.20%
0.30%
0.40%
0.40%
0.40%
15
16
17
18
19
20
NAGALAND
ORRISA
RAJASTHAN
TAMIL NADU
TRIPURA
UTTARAKHAND
UTTAR PRADESH
21
WEST BENGAL
22
24
JERC FOR
MANIPUR
25
JERC FOR
MIZORAM
20 OCT
2010
NON
SOLAR
SOLAR
16 MAR NON
2010
SOLAR
SOLAR
23 DEC NON
2010
SOLAR
SOLAR
19 MAY NON
2011
SOLAR
SOLAR
9 NOV
NON
2009
SOLAR
SOLAR
6 JULY
NON
2010
SOLAR
SOLAR
17 AUG NON
2010
SOLAR
SOLAR
10 AUG NON
2010
SOLAR
5 MAY
NON
2010
SOLAR
SOLAR
5 MAY
NON
2010
SOLAR
SOLAR
5 MAY NON
2010
SOLAR
SOLAR
0.25%
4.75%
0.25%
5.0%
0.25%
5.25%
0.25%
5.50%
0.50%
7.75%
0.75%
8.5%
1.0%
6.35%
1.25%
7.20%
1.50%
8.5%
0.50%
10%
0.75%
10%
1.0%
10%
1.25%
10%
1.50%
10%
0.15%
0.90%
0.25%
0.90%
0.25%
1.90%
0.50%
1.90%
0.50%
1.90%
0.10%
4.0%
0.10%
4.50
0.10%
5.0%
0.10%
5.5%
0.10%
6.0%
0.0%
3.75%
0.03%
4.50%
0.05%
5.00%
0.07%
5.25%
0.09%
5.50%
0.25%
2.0%
0.50%
3.0%
1.0%
4.0%
1.5%
5.0%
1.5%
6.0%
0.75%
1.70%
2.60%
2.60%
2.60%
0.25%
1.7%
0.30%
2.75%
0.40%
4.75%
0.45%
4.75%
0.50%
4.75%
0.25%
4.75%
0.25%
5.75%
0.25%
6.75%
0.25%
6.75%
0.25%
6.75%
0.25%
0.25%
0.25%
0.25%
0.25%
11.
BANK GUARANTEE
Developer to furnish a BG @Rs 50Lakhs/MW at the time of PPA signing with
Distribution Licensee.BG to be refunded if the developer commissions the
project in time as per PPA.
METERING OF ELECTRICITY
CONs
MW for SPG.
requirements of SPG.
states.
SALIENT FEATURES
The Policy will come into operation with effect from 19.4.2011 and will remain in force until
superseded or modified by another Policy.
To achieve the objectives of this Policy, the targets under the policy are mentioned below:
1. The State Government has sanctioned two Solar Power Projects of 5 MW capacity under
the GOI guidelines for Generation Based Incentive scheme for Grid Interactive Solar Power
Generation Projects issued by MNRE. The power evacuation transmission line from
generating plant sub-station to the receiving RVPN/Discoms of Rajasthan sub-station will be
laid by STU/Home Discom as per the prevailing orders of RERC.
2. The Rajasthan State has sanctioned 66 MW solar power projects in compliance of the
RERCs orders. These sanctioned projects were migrated to National Solar Mission by the
State Government. The power produced from these solar power plants shall be procured by
NVVN as per mechanism provided under National Solar Mission Phase-1. The Discoms of
Rajasthan shall purchase this solar power from NVVN along with the equivalent amount of
MW capacity from the unallocated quota of NTPC stations allotted to NVVN by Ministry of
Power, GoI. The power evacuation transmission line from generating plant sub-station to
the receiving RVPN/Discoms of Rajasthan sub-station will be laid by STU/Home Discom as
per the prevailing orders of RERC.
3. The Rajasthan State will develop 50 MW SPV and 50 MW Solar Thermal Power Plants
through selection of developer(s) by the tariff based competitive bidding process on
concept of bundling of Solar Power with equivalent amount of MW capacity of conventional
power. The successful bidder will set up Solar Power Plant in Rajasthan and supply
equivalent amount of MW capacity of conventional power from Conventional Power Plants
located anywhere in India. The power evacuation transmission line from generating plant
sub-station to the receiving RVPN/Discoms of Rajasthan sub-station will be laid by
STU/Home Discom as per the prevailing orders of RERC.
4. The Rajasthan State will promote setting up of Solar Power Plants connected at 33 kV &
above level under the guidelines of National Solar Mission (NSM). The minimum/maximum
capacity allocation to each Solar Power Producer will be as per MNRE guidelines. The power
evacuation transmission line from the Generating plant sub-station to the RVPN/Discom
receiving Sub-station will be laid as per provisions of the orders of appropriate Commission.
DEVELOPMENTAL CHARGES
For Solar power projects established for sale of solar power to parties other
than Discoms of Rajasthan, the Solar Power Producer shall deposit nonrefundable development charge of Rs. 10 Lacs per MW to Rajasthan
Renewable Energy Corporation Ltd. within one month from the date of issue
of in-principle clearance for availing benefits, facilities and concessions under
the provisions of this policy. For solar power projects established for sale of
solar power to Discoms of Rajasthan State, no development charges will be
leviable from the Solar Power Producers.
PROs
CONs
concessional rates.
MW.
state.
Banking is allowed.
PROs
CONs
available.
PROs
CONs
Subsidy on wheeling.
500000)
charge.
No open-access charges.
Refund of VAT ,paid in AP only, by Commercial Dept for all the good used for
Solar developers
Refund of Stamp duty and registration charges paid for land purchase.
EVACUATION INFRASTRUCTURE
The evacuation line from interconnection point to the grid substation shall be
laid by the APTRANSCO or DISCOM at the cost of the developer.
REACTIVE ENERGY CHARGES
Reactive charges applicable to the project developer as per APERC regulation.
ELECTRICITY DUTY
State government shall exempt all soar power projects from paying Electricity
Duty on auxiliary consumption and captive consumption within the state.
Following incentives will be extended to those solar power developers who
commission their solar plant by March 2017. These incentives will be in force
for a period of 7 years from the date of implementation of the project.
VAT
for
all
PROs
anytime.
evacuation system.
CONs
12.
CONCLUSION
India has a vast solar potential and almost every region is endowed with more than 320 days
of sunlight in the year. States have come up with renewable energy policies but there is a
need to issue separate solar policy by each state to tap the solar potential with main focus
of bringing solar at par with conventional sources. The existing policies provide many
incentives but there is need to nurture entrepreneurship so that more projects can come
up. The policies should also address the delay in statutory clearances.
VERY GOOD
GOOD
1. GUJARAT
As per many analysts Gujarat has the best
policy for Solar, the potential is very good
and both tariff and tariff-period are very
encouraging. Industrialization is widely
supported and large incentives are being
provided.
2.TAMIL NADU
One good initiative taken in this policy is
extending Net metering solar power
systems
installed
in
commercial
establishments and individual homes
connected to the electrical grid. It has also
announced exemption from electricity tax,
tax concessions, exemption from demand
cut to those who produce solar power from
their rooftop
2.ANDHRA PRADESH
Andhra Pradesh had removed all wheeling
and transmission charges and allowed
banking within the time frame of a year
(except between February and June or
within a single day).The policy also includes
exemption from Cross Subsidy Surcharges
(CSS) and Electricity Duty, and a refund on
Value Added Taxes (VAT) on all components
of the plant and on stamp duty and
registration charges on the purchase of
land. RECs can be availed under the policy
over and above the other incentives.
3. CHATTISGARH
The main requirement of a solar project is
land, and a lot of barren land is available
and govt. provides assistance in land
acquisition. Also its Discoms are relatively in
good financial condition but there are
problems of villager agitation and political
interferences. Power Surplus state also.
2. KARNATAKA
Govt. Provides land and KREDL helps in
availing incentives and also the tariff given
is attractive. The solar potential is also very
good.
3. MADHYA-PRADESH
The solar potential is very good. The
transportation facilities and connectivity are
very good. The government provides
training assistance also.
4. RAJASTHAN
The potential is the best in the country,
large amount of barren land available. The
incentive and tariff given is good.
13.
MERC has set out RPO target of 9% including 0.5% solar RPO by FY 2015-16 to be met by
distribution utilities, captive and open access consumers. Considering the existing and
growth in demand MSEDCL would need to procure more than 540 MW of solar power by
FY2015-16 to meet the RPO.
MERC through its Suo Moto tariff order has notified generic levelised tariff of Rs. 8.98/unit
for projects which have signed the PPA after March 31, 2013 and are commissioned during
FY 2012-13.
MSPGCL is presently executing a 125 MW solar PV facility in Sakri, Dhule. The scope of work
of the project player includes design, engineering, manufacture, supply, erection, testing
and commissioning of 75 MW of Crystalline Solar PV technology and/or 50 MW of Thin film
solar PV technology including 10 years of operation & maintenance of the same on turnkey
basis. The project developer will get 85% of the contract value up to the successful issue of
Final Acceptance Test" certificate and remaining 15% of contract value spread over next 10
years after successful completion of O&M period of the contract (with 2% paid every year).
ADB is considering funding of approximately USD 500 Million towards cost of developing
renewable power projects of MSPGCL over the 12th five year plan along with the
development of associated evacuation and system strengthening infrastructure of MSETCL.
MSPGCL is exploring different public private partnership models for implementing the solar
projects.
For the future solar projects, MSPGCL is evaluating the Performance Linked Revenue Sharing
Model. For all these projects MSPGCL has signed or will sign PPAs with MSEDCL for off-take
of Power at MERC determined tariff. In this model the project developer receives a portion
(50%) of his EPC cost after the work is awarded. The bid parameter could be the share in
revenue that the project developer is asking for. The developer will receive this share of the
revenue from this project over its operating life. This pay-out will be a natural incentive and
penalty mechanism linked to actual generation from the plant. In this model the project
developer will have greater commitment as recovery will happen over the life of the project.
14.
LEGAL EVOLVEMENT TO PROMOTE RENEWABLE ENERGY
INCLUDING SOLAR POWER
MERC notified two Regulations on 7 June, 2010. Based on RE Tariff Regulations, 2010, the
Commission determines RE Tariff for different RE technologies including solar technology, at
the beginning of each financial year.
Regulation 8.1 of the RE Tariff Regulations specifies as follows:8.1 The Commission shall notify the generic preferential tariff on suo-motu basis pursuant
to issuance of revised norms by Central Electricity Regulatory Commission at the beginning
of each year of the Control Period for renewable energy technologies for which norms have
been specified under the Regulations. Provided that for the first year of Control Period, (i.e.
FY 2010-11), the generic tariff on suo-motu basis may be determined within a period not
exceeding three months from the date of notification of these Regulations.
15.
Distribution Licensee(s)
Captive User(s) with installed capacity of 1 MW and above
Open Access Consumer(s) with contract demand of 1 MVA and above
In order to promote solar energy in the state, MERC has specified separate RPO for solar
energy. The RPO specified by MERC is as shown below:
YEAR
SOLAR
MINI HYDRO
OTHER
TECHNOLOGY
TOTAL
FY 12
0.25%
0.1%
5.65%
FY 13
0.25%
0.1%
6.65%
FY 14
0.25%
0.1%
7.65%
FY 15
0.50%
0.2%
8.30%
FY 16
0.50%
0.2%
8.30%
6%
7%
8%
9%
9%
FY 13
151,024
FY 14
161,430
FY 15
172,681
FY 16
184,890
SOLAR RPO
0.25%
0.50%
0.50%
0.50%
254
542
580
621
SOLAR
REQUIRED
CUF(MW)
0.25%
CAPACITY
AT 17%
Tariff
for
commissioned
in FY13
projects
Tariff if Accelerated
Depreciation not
availed (Rs. /kWh)
Tariff if Accelerated
Depreciation availed (Rs.
/kWh)
11.16
9.51
15.61
13.10
16.
a. PREAMBLE
Conventional energy sources like coal, oil, natural gas, etc. are limited in quantity, and if
these continue to be depleted at the present rate, it will exhaust in coming decades.
Solar energy offers a clean, climate friendly, abundant an inexhaustible energy resource to
mankind. Due to Government intervention and development of competitive market
amongst the solar manufacturers, the costs of solar energy have been falling rapidly every
year and are entering new areas of competitiveness. Solar thermal electricity (STE) and solar
photo voltaic electricity (SPV) are becoming competitive against conventional electricity
generation in tropical countries.
Maharashtra has reasonably high solar insolation (4-6 kWh/sq. m) with around 280-300
clear sunny days in a year.
Eastern Maharashtra is considered to be one of the most suitable regions for solar projects.
As on 31.03.2013 Maharashtra has a total installed capacity of 205340.26 MW out of which
50.15 MW is solar installed capacity.
Knowing the importance of promoting solar power, the government of India has launched
Jawaharlal Nehru National Solar Mission (JNNSM) under the National Action Plan for Climate
Change (NAPCC). The goal of the mission is to provide tariff subsidies to increase scale and
drive down costs to grid parity for achieving target of 22,000 mw by 2022 in a phased
manner.
c. OBJECTIVES
To generate 1000 mw of solar energy by 2015.
To achieve grid parity by 2015.
To put in place an appropriate investment climate, that could leverage the Clean
Development Mechanism (CDM).
d. OPERATIVE PERIOD
Solar power generators (SPGs) installed and commissioned during the operative
period shall become eligible for the incentives declared under this policy, for a
period of twenty five years from date of commissioning or for life span of the SPGs,
whichever is earlier.
e. INSTALLED CAPACITY
A maximum of 1000 MW SPG shall be allowed for installation during operative
period of the policy.
f. CAPACITY CAP
The minimum project capacity of a SPG, in case of Solar Photovoltaic (SPV) and
Solar thermal (ST) shall be 3MW.
g. ELIGIBLE UNIT
Any company or body corporate or association or body of individuals, whether
incorporated or not, or artificial juridical person will be eligible for setting up of
SPGs either for the purpose of captive use and/ or for selling of electricity in
accordance with the Electricity Act-2003, as amended from time to time.
The entity to set up solar power project, either for sale of power and/ or for captive
use of power within the state, shall submit a proposal, with requisite details, as
may be specified to the nodal agency, for qualifying for setting up of the project.
SPV
170
170
170
170
170
850
SOLAR
THERMAL
25
25
25
25
25
125
ROOF
TOP
5
5
5
5
5
25
TOTAL
200
200
200
200
200
1000
j. METERING OF ELECTRICITY
The electricity generated from SPGs, shall be metered on a monthly basis jointly by
MEDA/MSETCL at a sending substation or located at site. Solar based generation
projects will have to provide ABT compliant meters at the interface points.
Interface metering shall confirm to the CENTRAL ELECTRICITY AUTHORITY
(Installation and Operation of meters) regulations, 2006.
n. PENALTY FOR
OBLIGATION
NON
FULFILLING
POWER
PURCHASE
If the Obligated Entity fails to comply with the RPO target as provided in these
Regulations during any year and fails to purchase the required quantum of RECs,
the State Commission may direct the Obligated Entity to deposit into a separate
fund, to be created and maintained by such Obligated Entity, such amount as the
Commission may determine on the basis of the shortfall in units of RPO, RPO
Regulatory Charges and the Forbearance Price decided by the Central Commission;
separately in respect of solar and non-solar RPO.
(ii)SOLAR THERMAL
For a single project a minimum capacity of 3 MW and a maximum capacity of 50
MW should be installed to avail the benefits.
A subsidy of Rs 1 crore per megawatt up to 5 crore (whichever is less) for a project
shall be provided by the State government.
SPV
(Rs Cr)
SOLAR
ROOF TOP
TOTAL
THERMAL
(Rs Cr)
(Rs Cr)
(Rs Cr)
2010-11
170
125
2.5
302.5
2011-12
170
125
2.5
302.5
2012-13
170
125
2.5
302.5
2013-14
170
125
2.5
302.5
2014-15
170
125
2.5
302.5
TOTAL
850
625
12.5
1512.5
SUBSIDY UNDER EACH PROJECT WILL BE DISTRIBUTED IN THREE INSTALLMENTS
BY THE STATE GOVERNMENT
INSTALLMENTS
1ST INSTALLMENT
DURATION
SPECIFICATIONS
After commissioning of 30% of the total amount
the
project
&
on of the subsidy.
submission of report on
the the functioning of the
plant for first six months
after commissioning
2ND INSTALLMENT
After
2
years
commissioning
3RD INSTALLMENT
After
5
years
commissioning
from
central government.
r. POLICY INITIATIVES
(i)
NET METERING
Net metering will be allowed (at multiple voltage levels) to promote roof top
penetration.
Net metering facility will be extended to solar power systems installed in
commercial establishments and individual homes connected to the electrical grid to
feed excess power back to the grid with power credits accruing to the
Photovoltaic energy producer.
SOLAR PV SYSTEM SIZE
GRID CONNECTED
10kWp to 1MWp
415v
>1MWp
11kv
(ii)
17.
INTRODUCTION
Renewable power generation capacity in India has been set up largely through private
sector investments. New investment is the most potent indicator of growth of the sector. As
per an estimate, in 2009 the total financial investment in clean energy in India was at INR
135 billion. India ranked the fourth most attractive country for renewable energy
investment in the world, only behind the United States, China, and Germany. But highly
aggressive bidding by developers in increasing fierce competitive environment and
uncertainty regarding the various costs incurred; increases the risk associated with making
an investment in setting up solar power plant.
A financial model helps the developer to explore in detail the financial benefits and costs
associated with the investment. This facilitates the identification of key variables affecting
the project value and enables financing decisions. The following section describe the key
items and assumptions that are included in the financial modeling of a typical Indian solar
PV project, and discusses the conclusions based on the calculation of various financial
parameters.
ASSUMPTIONS
(i)
CAPITAL COST
The normative capital cost for setting up Solar Photovoltaic Power Project shall be Rs 800
Lakh/MW for FY 2013-14 as per MERC (Terms and Conditions for Tariff determination from
Renewable Energy Sources) Regulations, 2013. But the recent drop in module cost
accompanied by increase in level of competition has dragged down the overall project cost
quite substantially.
(ii)
There are a number of factors (e.g. Air pollution, shading, soiling, ambient temperature,
module quality, downtime etc.) which affect the annual energy yield of a solar PV project.
The energy yield prediction provides the basis for calculating project revenue. In the
financial model energy yield prediction for 25 years is made taking into account annual
deration.
(iii)
Energy Price
Solar PV plant under REC mechanism can earn its revenue from selling grey.
In the financial model it is assumed that the grey component of energy is sold to state
discom at MSEDCL. Model is made flexible to vary starting, time period after MERC will
revise and escalation factor subjected to price revision.
(v)
One of the major benefits of Solar PV power plants is less O&M costs as compared to
other renewable energy technologies. In the financial model O&M has been taken as per
MERC Tarff Regulation, 2013.
(vi)
Financing Assumptions
PLANT DETAILS
UNITS
VALUE
Installed Capacity
CUF
Useful Life
MW
%
Years
1 MW
19%
25
CAPITAL STRUCTURE
UNITS
VALUE
Debt
Equity
Total Debt Amount
Total Equity Amount
%
%
Rs LACS
Rs LACS
70%
30%
560
240
CDM BENIFIITS
UNITS
VALUE
Million CERs
Euro/ton
Rs/Euro
Rupees
Years
.0150
.30
79.22
23.77
10
Rs lacs
3.56
Rs lacs
1.75
TAXES
UNITS
VALUE
BASIC TAX
ADD: SURCHARGES
ADD: CESS
NET CORPORATE TAX
MIN. ALTERNATE TAX
ADD: SURCHARGE
ADD: CESS
NET MAT
%
%
%
%
%
%
%
%
30%
5.00%
3%
32.45%
18.50%
5.00%
3.00%
20.01%
DEBT SCHEDULE
UNITS
VALUE
LOAN AMOUNT
MORATORIUM PERIOD
REPAYMENT PERIOD
REPAYMENT STYLE
INTEREST ON TERM LOAN
INTEREST ON WORKING
CAPITAL
Rs LACS
YEARS
YEARS
%
%
240
0
10
MONTHLY
12.87%
13.37%
WORKING CAPITAL
UNITS
VALUE
O&M ECHARGES
RECEIVABLES
MAINTENANCE SPARES
WC LOAN
MONTHS
MOTHS
% OF O&M EXPENSE
1
2
15%
100%
O&M
O&M FY(2013-14)
ESCALATION FACTOR
UNITS
Rs LACS
%
VALUE
11.23
5.27%
DEPRICIATION
UNITS
VALUE
7.0%
50%
90%
1.33%
UNITS
VALUE
REVENUE
PBDIT
PBDT
PBT
PAT
Rs LACS
Rs LACS
Rs LACS
Rs LACS
Rs LACS
149.72
138.49
65.23
22.99
18.39
18.
BIBLIOGRAPHY
1. www.bp.com
2. www.unfccc.int
3. www.cdmindia
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29.www.energyselfreliantstates.org
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7. www.moneycontrol.com
8. www.nldc.in
9. www.iexindia.com
10. State Load dispatch centre websites
11. State electricity regulatory commission websites
12. www.mnre.gov.in
13. State energy development agency websites
14. www.nvvn.co.in
15. www.powermin.nic.in
16. www.cdmrulebook.org
17. www.solarserver.com
18. www.dsireusa.org
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