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Detailed Project Report

436.74 kWp SOLAR PV PLANT FOR


KESARI ROLLER FLOUR MILLS
SAE/Q/03707

DETAILED PROJECT REPORT FOR DEBT FINANCING FOR


SOLAR PV PROJECT AT
HOSKOTE MALUR RD, MADIVALA, KARNATAKA 563130

KARNATAKA

PROJECT DEVELOPED BY:


SUNALPHA ENERGY PVT. LTD.
A SUNALPHA ENERGY GROUP COMPANY

JUNE 2020

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Detailed Project Report

1 EXECUTIVE SUMMARY

1.1 KESARI ROLLER FLOUR MILLS

KESARI ROLLER FLOUR MILLS, located at Hoskote Malur Rd, Madivala, Karnataka 563130
has a requirement for a solar photovoltaic power plant (SPP) in order to cater to its Sites’ power requirements.

Site: Hoskote Malur Rd, Madivala, Karnataka 563130

1.2 SOLAR PROJECT SUMMARY

Sr. No . Description Considerations Units


1 Project Cost 15,932,930.31 INR
2 Annual solar generation 633,273.00 Units
3 O&M Cost 218,370.00 INR
4 O&M escalation 4% %
5 Debt to Capital Ratio 70% %
6 Equity 4,779,879.09 INR
7 Debt 11,153,051.22 - INR

TABLE 1.1: Project Summary

Sr. No . Location SPP Capacity


1 HOSKOTE MALUR RD, MADIVALA, KARNATAKA 563130 436.74 kWp

TABLE 1.2: Sites

2 TECHNICAL CONSULTANTS

SunAlpha Energy Pvt. Ltd. (“SAEPL”) is a part of SunAlpha Energy Group which along with its subsidiaries, is a fully
integrated solar PV specialist with offices in Jaipur, Chennai and Singapore, and projects spread across India, and is
engaged in the business of implementing and undertaking the business of installation, fitting out, commissioning and
maintenance of solar photovoltaic power plants (hereinafter “SPP”) on SITC (Supply, Installation, Testing &
Commissioning) basis. Founded by IIT and Georgia Tech graduates, SunAlpha is a premium solar PV designer and
constructor of high-quality systems for commercial, industrial & residential consumers.

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3 MARKET OVERVIEW
3.1
INDIA’S POWER SECTOR: BACKGROUND STUDY

India is the world’s fifth largest producer and consumer of electricity with c. 5.2% of world production and 3.8% of world
consumption (Source: IEA – Key World Energy Statistics – 2012). The demand for electricity has been growing at a CAGR of
6.25% p.a. over the last 5 years. However the sector has been characterized by high supply deficits and low per capita
electricity consumption. The sector faces further issues due to transmission constraints between power stations and load
centres and fuel costs and supply issues. All of the aforementioned sectorial issues have resulted in making localized power
generation profitable.

3.2 INSTALLED CAPACITY

India's generation capacity has grown from 85.8GW as of March 1997 to 272 GW as of March’ 2015, thermal capacity
accounts for approximately 69.5% of the total installed power generation capacity in India and renewable energy based
projects account for approximately 13.17% of installed capacity.

Fig 3.1: Base load deficits to continue despite expected capacity additions

Fig 3.2: Per capita consumption to catch up with rest of the world

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The Indian power market is characterized by shortfall in achievement as compared to targets. The 11th Five Year Plan (2007-
12) set a target of 78.7GW of new generation capacity, but the actual capacity addition was less than 50GW. This has been
primarily on account of challenges in setting up conventional fuels based capacity, including fuel supply shortfalls, land
acquisition challenges, delays in state and environmental clearances, equipment shortages in the market and difficulties with
passing on higher costs of fuel to off-takers. At the same time, renewable energy capacity additions have exceeded planned
targets.

Fig 3.3: India's renewable energy split as of March’2015

Type/Sector (MW)
Thermal - 188,897.8-
Nuclear - 5,780.0-
Hydro - 41,267.4-
Renewables - 35,777.0-
TOTAL - 271,722.2-
Table 3.1: Installed capacity in India as on 31 March’2015
(Source: Central Electricity Authority, Ministry of New and Renewable Energy)

3.3 KARNATAKA POWER SITUATION

Karnataka is a state in the south western region of India. It was formed on 1 November 1956, with the passage of the State
Reorganisation Act. Originally known as the State of Mysore, it was renamed Karnataka in 1973. The capital and largest city is
Bengaluru.

Karnataka Power Corporation Limited (or KPCL) is a company owned by the government of Karnataka, and is engaged in the
Service of generating electrical power in the state of Karnataka in India. It was started on 20.07.1970. In 1999, Karnataka
embarked on a major reform of the power sector. As a first step, Karnataka Electricity Board (KEB) was dissolved and in its
place, the Karnataka Power Transmission Corporation Limited (KPTCL) was incorporated.

Distribution companies BESCOM (Bangalore Electricity Supply Company Limited), MESCOM (Mangalore Electricity Supply
Company Limited), HESCOM (Hubli Electricity Supply Company Limited), GESCOM (Gulbarga Electricity Supply Company
Limited), CESC (Chamundeshwari Electricity Supply Corporation).

KPCL has 34 dams (including the main, pickup and saddle dams) and 24 power stations across the state with power
production capabilities ranging from 0.35 MW to 1035 MW. It has the installed capacity of 746 MW (1970), it has expanded its
capacity to 8738.305 MW (2019).

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3.4 REGULATORY FRAMEWORK

The Indian regulatory framework started undergoing reforms in 1991 to promote private investments in the power sector.
2003 saw the big bang change with the introduction of the Electricity Act, which set in motion a slew of reforms attracting
significant private sector investment in the sector. Since the introduction of the Electricity Act, 2003, India’s installed capacity
has more than doubled from 110GW to 272GW. Some provisions of this Act have been amended recently.

The salient features of the Indian Electricity Act 2003 are summarized in Table 3.2
Category Key Highlights
Objectives Encouraging autonomous regulation with the separation of policy regulation and operational matters Rationalising
tariffs and lowering the cross-subsidisation levels
Creating competition in the industry
Ensuring supply of electricity to all areas
Protecting consumer interests

Policy A National Electricity Plan shall be prepared in accordance with National Electricity Policy every 5 years
National policy on standalone systems for rural areas and non-conventional energy systems National
policy on electrification and local distribution in rural areas

Restructuring Vertical integration instead of horizontal unbundling of SEBs to make them financially strong
State Governments will have the freedom to decide the sequence and phases of restructuring, and also retain the
integrated structure of the SEB for a limited period
Introduction of the concept of power trading as a distinct activity, and the introduction of a spot market for bulk
electricity

Generation Removal of captive power plants from the ambit of licensing and other permissions
Generators can contract directly with distribution companies
Distribution companies can have embedded generation
Captive generation can supply to associates
Elimination of licensing requirement and techno-economic clearances for generation projects except hydro projects

Transmission Provision for private participation in distribution


and Surcharge for open access to meet current cross-subsidy burden (except for captive and Group Captive projects)
Distribution Dedicated transmission lines allowed (not regulated)
Central and State Transmission Utilities (CTU and STUs) not permitted to trade
Transmission licensees allowed
Multi Year Tariff (MYT) recommended

Table 3.2: The salient features of the Indian Electricity Act 2003

The Electricity Act led to a boom in the Indian power sector with the period between 2003 and 2009 attracting significant
investments and public listing of various energy companies. However from 2009 onwards, the sector faced a number of
issues:
- Political compulsions prevented States from raising tariffs. Free / cheap electricity is a key campaign promise in India
and as a result tariffs are kept artificially low for the agricultural and residential tariffs.

- Fuel supply: Shortfall in supply from Coal India and Reliance D6 and no pass through of higher imported coal costs into
the PPAs for revenue recovery.

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This has resulted in heavy losses for both SEBs and private sector players. The losses of state distribution utilities affected
their debt servicing and necessitated the Central and State Governments to introduce a fresh set of reforms in 2012 and 2013,
with focus on the following:
- SEB restructuring with introduction of the Financial Restructuring Plan (“FRP”): under this plan, the respective State
Governments will take over 50% of the unfunded liabilities of their distribution companies, and the balance of 50%
will be restructured and guaranteed by the State Government. Under the FRP, distribution companies are obliged to
increase tariffs annually;

- Adoption of model tariff regulation which provides a formula for an automatic fuel price adjustment charge.
Additionally, the state regulator has to revise tariffs unilaterally if the state electricity boards fail to do so.

3.5 RENEWABLE ENERGY IN INDIA

The increase in fuel costs, supply risks and Rupee depreciation has resulted in an increase in costs of conventional power
generation. This combined with a significant decrease in the capital costs for renewable power generation has resulted in an
inflow of investments in the renewable energy sector in India.

As per the Ministry of New and Renewable Energy (“MNRE”), the installed renewables capacity in India has increased from
3.9GW in 2003 to 35.8 GW in March2015. Wind energy is the predominant contributor to this growth accounting for over
65.5% (23.4 GW) of the growth. The balance has been contributed by mini-hydro (4 GW), Solar (3.7GWp) Waste to Energy
(0.115 GW) and biomass (4.4GW). The share of renewable power in India’s installed capacity matrix has been increasing;
jumping from 9.8% to 12.2% between 2009 and 2013.

Under the National Action Plan on Climate Change (“NAPCC”), the Government of India had set a target of having 15%
renewable energy in the electricity generation mix by 2020, implying a total installed base of approximately 100GW of
renewable power generation capacity. Further, the present government has put renewed focus, targeting 100 GW
installations of Solar, 40 GW of wind and totalling to 170 GW, including other sources, by 2022.

Fig 3.4: Targeted installed capacity within India at March 2017

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4 SOLAR POWER GENERATION


With the Government of India announcing the Jawaharlal Nehru National Solar Mission and setting up nodal agencies for
implementing grid connected solar power projects in the country, the company also saw a huge opportunity to enter and
explore the potential of harnessing solar power which is sustainable for a longer period and contributes to the country’s
long term energy security. The recent announcement by government of India to develop 100 GW has added to the
momentum.

The Company is now entering into solar power generation portfolio and is developing a 436.74 kWp grid connected solar
photovoltaic power plant at an estimated cost (including GST) of INR 15,932,930 /-.

The cost of implementation of the project estimated above is proposed to be funded by way of equity being brought in by the
Company to an extent of 20% of the cost while the balance 80% is being proposed to be funded by way of term debt from
banks / financial institutions with a repayment period of up to10 years (post moratorium of 1 year of operations).

4.1 GOVERNMENT INITIATIVES

Harnessing of non-polluting renewable energy resources to control greenhouse gases is receiving impetus from the
government of India. The National Solar Mission, which is part of the National Action Plan on Climate Change has been set up
to promote the development and use of solar energy in for power generation and other uses with the ultimate objective of
making solar energy competitive with fossil-based energy options. The solar photovoltaic device systems for power
generation had been deployed in the various parts in the country for electrification where the grid connectivity is either not
feasible or not cost effective as also some times in conjunction with diesel based generating stations in isolated places and
communication transmitters at remote locations. With the downward trend in the cost of solar energy and appreciation for
the need for development of solar power, solar power projects have recently been implemented. A significant part of the
large potential of solar energy in the country could be developed by promoting grid connected solar photovoltaic power
systems of varying sizes as per the need and affordability coupled with ensuring adequate return on investment.

4.2 OBJECTIVES & MISSION TARGETS OF SOLAR INDIA

The objective of the National Solar Mission is to establish India as a global leader in solar energy, by creating the policy
conditions for its diffusion across the country as quickly as possible.

The Mission adopted a 3-phase approach, spanning the remaining period of the 11th Plan and first year of the 12th Plan (up
to 2012-13) as Phase 1, 5 years of the 12th Plan (2013-17) as Phase 2, and phase 3 ending in March’2022. Subsequently with
New government led Modi in place the target has been revised to 100 GW by 2022. At the end of each plan, and mid, there
will be an evaluation of progress, review of capacity and targets for subsequent phases, based on emerging cost and
technology trends, both domestic and global. The aim would be to protect Government from subsidy exposure in case
expected cost reduction does not materialize or is more rapid than expected. The immediate aim of the Mission is to focus on
setting up an enabling environment for solar technology penetration in the country both at a centralized and decentralized
level.

The first phase (up to 2013) had focussed on capturing of construction know-how, man-power development and aiming the
low hanging options, also promoting off-grid systems to serve populations without access to commercial energy and modest
capacity addition in grid-based systems. In the second phase, after taking into account the experience of the initial years,
capacity will be aggressively ramped up to create conditions for up scaled and competitive solar energy penetration in the
country.

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To achieve this, the Mission targets are:

1 To create an enabling policy framework for the deployment of 100,000 MW of solar power by 2022. A number of
Solar parks have been identified in various states. The Viability Gap Funding, bundling of solar energy with
conventional energy, compliance to Renewable Power Obligations including SPOs etc are the measures been evolved.
The tariff based bidding has been resorted to achieve most competitive rates.

2 To ramp up capacity of grid-connected solar power generation to 3000 MW within two years – by 2015; an additional
3000 MW by 2017 through the mandatory use of the renewable purchase obligation by utilities backed with a
preferential tariff. This capacity can be– reaching 100,000MW installed power by 2022 or more, based on the
enhanced and enabled international finance and technology transfer. The ambitious target for 2022 of 100,000 MW
or more, will be dependent on the ‘learning’ of the first two phases, which if successful, could lead to conditions of
grid-competitive solar power. The transition could be appropriately up scaled, based on availability of international
finance and technology.

3 To create favourable conditions for solar manufacturing capability, particularly solar thermal for indigenous
production and market leadership.

4 To promote programmes for off-grid and roof-top applications, reaching 40 GW by 2022.

5 To achieve 15 million sq. meters solar thermal collector area by 2017 and 20 million by 2022.

6 To deploy 20 million solar lighting systems for rural areas by 2022.

4.3 SCHEME OF NATIONAL SOLAR MISSION

The announcement of Generation based incentive (GBI) scheme for grid connected Solar Power Projects by Ministry of
New and Renewable Energy and emphasis of National Action Plan on Climate Change (NAPCC) for increasing share of
Solar Energy have provided impetus to the Solar Power market in India. National Solar Mission forming part of National
Action Plan on Climate Change (NAPCC) has envisaged significant increase in share of Solar Energy in total energy mix. The
NAPCC aims to promote the development and use of Solar Energy for power generation and other uses with the ultimate
objective of making solar competitive with fossil-based energy options. The plan includes:

1 Specific goals for increasing use of solar energy in all urban areas, industries, and commercial establishments;

2 A goal of increasing production of photovoltaic to 1000 MW/year; and

3 A goal of deploying at least 1000 MW of solar thermal power generation.

In addition to the announcement of GBI scheme for new grid connected solar power plants, the JNNSM and its schemes also
allow for migration of existing, under-development grid connected solar power projects from their existing arrangements to
the JNNSM scheme by entering into a Memorandum of Understanding with NVVN, the nodal agency identified for bundling &
sale of power to the utilities for development & inclusion of the project under the JNNSM.

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The Ministry of Power has proposed several changes to the National Tariff Policy, providing thrust to the rapid growth of RE
segment. Some changes are significant, like the proposal to substantially increase solar RPO (from 3% by 2022 to 8% by 2019),
to remove inter-state transmission charges on RE power and curtailing cross-subsidy to 15% of applicable tariff.

Key points in the amendments to the National Tariff Policy:

- The SERCs and CERC shall necessarily be guided by the National Tariff Policy

- Promotion of renewable energy has been added as an objective of the policy

- In the tariff policy, the word ‘Non-conventional’ is sought to be replaced with Renewable energy

- For RPO, long term trajectory to be provided by Ministry of Power (MoP), in consultation with MNRE and keeping in
view the objectives of NAPCC

- Solar RPO targets to be ramped up more aggressively – the existing policy provides for reaching 3% by 2022, the
proposals to increase this to 8% by 2022.

- The policy envisages a REC multiplier to differentiate between technologies, and to accommodate changes in price
(through a ‘vintage multiplier’)

- The tariff policy envisages that procurement of renewable energy, as far as possible, will be done on a competitive
bidding basis. Further, “an appropriate bid-based tariff framework for renewable energy, allowing the tariff to be
increased progressively in a back-loaded manner over the life cycle of such a generating plant” is planned. The back-
loaded manner could imply costs are kept low at present so as to minimize cost burden on the Discom’s, to be
increased over the life of the project.

- For a new coal/ lignite based plant, RE capacity to the extent of 10% of thermal generation capacity will have to build.
This will be allowed to be bundled with the conventional power.No inter-state transmission charges for RE power

- Time differentiated tariff to be implemented for large consumers (>1MW) within one year, and for all consumers
within 5 years

4.4. GLOBAL SOLAR POWER SCENARIO

In recent times, there has been a fast changing scenario in the Solar Power Generation Globally. As for taking into
consideration the Climate Change Conditions and fast depleting Fossil Fuel resources Governments of various countries
especially Europe has moved fast in to Solar Power Generation in an attempt to reduce their Carbon Footprint and decrease
their dependence on Fossil Fuel. With Governments in Spain, Italy, Germany encouraging Solar Power Developers to set up
plants by way of commercially viable Feed-in tariff the Solar Power Business is beginning grow exponentially. USA being
among the late entrants in the field of Solar Power Generation is now committed to use and encourage the vast and abundant
source of energy. There has been great emphasis in various international conferences on the need to promote Renewable
Energy. While India, specially the Southern states of India and State , which have among the highest Solar irradiance in India
has not been tapped so far. However, with the recent push from the Central and State Governments a lot of Interest has been
shown in the Solar Business.

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4.5 IMPORTANCE AND RELEVANCE OF SOLAR ENERGY:

1. Cost

Solar is currently high on absolute costs compared to other sources of power such as coal, but the costs have come down
sharply to one third over last 5 years (2011-15). The objective of the Solar Mission is to create conditions, through rapid scale-up
of capacity and technological innovation to drive down costs towards grid parity. The Mission anticipates achieving grid parity by
2022 and parity with coal-based thermal power by 2030, but recognizes that this cost trajectory will depend upon the scale of
global deployment and technology development and transfer. The cost projections vary – from 22% for every doubling of
capacity to a reduction of only 60% with global deployment increasing 16 times the current level. The Mission recognizes that
there are a number of off-grid solar applications particularly for meeting rural energy needs, which are already cost-effective and
provides for their rapid expansion.

2. Scalability

India is endowed with vast solar energy potential. About 5,000trillion kWh per year energy is incident over India’ s land area
with most parts receiving 4-7 kWh per sq. m per day. Hence both technology routes for conversion of solar radiation into heat
and electricity, namely, solar thermal and solar photo voltaic, can effectively be harnessed providing huge scalability for solar in
India. Solar also provides the ability to generate power on a distributed basis and enables rapid capacity addition with short lead
times. Off-grid decentralized and low temperature applications will be advantageous from a rural electrification perspective and
meeting other energy needs for power and heating and cooling in both rural and urban areas. The constraint on scalability will
be the availability of space, since in all current applications, solar power is space intensive. In addition, without effective storage,
solar power is characterized by a high degree of variability. In India, this would be particularly true in the monsoon season.

3. Environmental impact

Solar energy is environmentally friendly as it has zero emissions while generating electricity or heat.

4. Security of source:

From an energy security perspective, solar is the most secure of all sources, since it is abundantly available. Theoretically, a
small fraction of the total incident solar energy (if captured effectively) can meet the entire country’s power requirements. It is
also clear that given the large proportion of poor and energy un-served population in the country, every effort needs to be made
to exploit the relatively abundant sources of energy available to the country. While, today, domestic coal based power
generation is the cheapest electricity source, future scenarios suggest that this could well change. Already, faced with crippling
electricity shortages, price of electricity traded internally, touched Rs.7 per unit for base loads and around Rs8.50 per unit during
peak periods. The situation will also change, as the country moves towards imported coal to meet its energy demand. The price
of power will have to factor in the availability of coal in international markets and the cost of developing import infrastructure. It
is also evident that as the cost of environmental degradation is factored into the mining of coal, as it must, the price of this raw
material will increase. In the situation of energy shortages, the country is increasing the use of diesel-based electricity, which is
both expensive – costs as high as Rs.15 per unit - and polluting. It is in this situation the solar imperative is both urgent and
feasible to enable the country to meet long-term energy needs

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5 SOLAR RADIATION & ASSESSMENT IN INDIA

India, due to its geo-physical location, receives solar energy equivalent to nearly 5,000 trillion kWh/year which is equivalent
to 600 GW. This is far more than the total energy consumption of the country today. But India produces a very negligible
amount of solar energy - a mere 0.2 percent compared to other energy resources. Further, entire electricity generation is
using Solar Photovoltaic (SPV) technology as power generation using solar thermal technology is still in the experimental
stages. Currently, India has little more than 4 GW of grid connected solar PV capacity.

The following map depicts solar energy potential in the country. While India receives solar radiation of 5 to 7 kWh/m2 for
300 to 330 days in a year, power generation potential using solar PV technology is estimated to be around 20MW/sq. km
and using solar thermal generation is estimated to be around 35MW/sq. km.

Fig 5.1: Radiation level in India.

According to the Solar Radiation Handbook (2008), published by Solar Energy Centre, MNRE the daily average global radiation
incident over India is in the range of 4.3 kWh/Sq m to 5.8 kWh/Sq m. The mean monthly solar radiant exposure per kWh/sq
m/day has been worked out based on the research conducted by MNRE in its Solar Radiation Study given in the handbook.
Also, it is noted that around 290 to 320 clear sunny days are prevalent across most parts of India throughout the year. Hence,
average clear sunny days around 300 and daily average global solar radiation to be around 5.8 kWh/Sq m/day are being
considered as normative standards.

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The key role of renewable energy Sources, including cogeneration, cannot be over emphasized. In view of the above
discussion, Non-Conventional Energy Sources (NES) such as wind, solar, mini-hydel, biomass, urban- municipal/industrial
waste or other such sources as approved by Ministry of Non-Conventional Energy Sources (MNES), Government of India (GoI)
or Government of State (GoTN) need to be encouraged, as these offer advantages of lesser emission of GHG and other
emissions causing health hazards.

The Ministry of New and Renewable Energy (MNRE) at the central Government level and various agencies at the state level
promote the development of NES in the country, as they are renewable in nature and are less polluting than conventional
sources.

5.1. NON-CONVENTIONAL (RENEWABLE) ENERGY SCENARIO IN RAJASTHAN

Rajasthan, by virtue of its geography, enjoys the highest number of cloud-free days and high insolation ideal for generation of
solar power. In times when being responsible towards the requirements of climate and environment is the way forward,
solar power as a source of electricity is a vital development input.

Rajasthan aims to create an enabling environment for installation of 25,000 MW of solar power through State or private
Enterprises or through PPP or through individual efforts. Rajasthan Solar Policy, 2014, came into operation with effect from
8.10.2014., with RRECL (Rajasthan Renewable Energy Corporation Limited) acting as Nodal Agency for clearance of projects,
while the rooftop solar projects are governed under the Regulations for Net Metering and grid connectivity of grid connected
rooftop & small solar photovoltaic systems issued by Rajasthan Electricity Regulatory Commission.

India is located in the equatorial sun belt of the earth, thereby receiving abundant radiant energy from the sun. The India
Meteorological Department maintains a nationwide network of radiation stations which measure solar radiation and also the
daily duration of sunshine. In most parts of India, clear sunny weather is experienced 250 to 300 days a year. The annual
global radiation varies from 1600 to 2210 KWh/sq.m., which is comparable with radiation received in the tropical and sub-
tropical regions. The equivalent energy potential is about 6,000 million GWh of energy per year.

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6 PROJECT SITE & LOCATION

6.1 PROJECT

Company Name KESARI ROLLER FLOUR MILLS


Project Site HOSKOTE MALUR RD, MADIVALA, KARNATAKA 563130

Global Solar Irradiance Average of 5.36 kwh/m2/day is considered taking Data from National
Institute of Solar Energy, India
PV Modules Crystalline Silicon cells/modules
Grid Availability Net metering
Inverter Delta/ABB/Schneider/SMA/SunGrow etc.
Mounting Structures Fixed Tilt Steel Mounting Structures
Power Generation 633,273 kWh / Annum
Total Cost of Project (Incl. GST) INR 15,932,930 /-
Scope EPC Cost, Preliminary, Pre-operative, IDC, Financing Charges, Margin
Money for Working Capital
Debt Equity Ratio 80:20
Equity INR 4,779,879 /-
Debt INR 11,153,051 /-
Debt Tenure 3.0 years
Moratorium 2 months
Life of Plant 25 year
Proposed COD 10 October 2020

Table 6.1: Project Details

6.2 SOLAR RESOURCE & OUTPUT ESTIMATE

The energy output for the project was estimated by using the industry standard “PVsyst” statistical model. The energy
output simulation was based on the primary radiation data collated by NASA. The data consists of monthly average
radiation data recorded over 22 years. This was transformed into hourly granularity using industry standard statistical
models.

6.3 INTERCONNECTION AND INFRASTRUCTURE HIGHLIGHTS

The power generated is fed into the LT panel at site.

6.4 TECHNOLOGY AND CONSTRUCTION

Based on the extensive studies of sunlight and heat availability in AP, Project SPV has selected silicon based
polycrystalline modules for the project as they have shown to produce the best results in conditions prevailing at the
site.

6.5 EPC & PROJECT COSTS

The EPC scope, specifications, terms & conditions have been broadly settled. The key terms of the EPC contract are
given below:

6.5.1 Scope of supply and works:

Design, engineering, procurement, supply, packing and forwarding, insurance, transportation, Security at site,
unloading, storage, installation and commissioning of Solar PV based power project and interconnection to

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switchyard. SAE shall provide comprehensive operation & maintenance of the plant for a period of five years from the
date of successful completion of trial run and would post adequate number of trained operators for O & M activity at
site.

6.5.2 Performance Guarantee:

Liquidated damages against shortfall in performance


The Contractor shall guarantee the performance ratio (PR). Any deficiency in performance shall be rectified forthwith.
If the targeted generation level is not achieved even after the efforts made, the Contractor shall compensate to the
Employer for shortfall in solar generation, as liquidated damages, a sum computed at the tariff rate including any
penalty, for total lifetime of the project of 25 years.

6.5.3 Delivery performance:

Delivery Schedule: The total period for design, procurement, supply, construction, erection, testing and
commissioning of the Solar PV Power Plant shall not exceed 6 months from the date of Letter of Award (LOA).
However, it shall not be less than 4 (four) months from the handing over of space required for setting up the plant.
The offer shall include a detailed schedule in the form of a bar chart showing details of design, supply, construction,
erection, testing, trial run and commissioning of all equipment and systems.

Liquidated Damages against delay: Timely completion of the power plant including CoD is essence of the Contract. In
the event of any delay in achieving the scheduled CoD, due to reasons attributed to the Contractor, will attract the
LDs @ 0.5% of contract price per week of delay, subject to maximum of 10% of the contract price. In addition, the
Contractor shall also be liable to fully compensate the LDs/penalties imposed by the Offtaker of power, as a result of
such delay in achieving the timely CoD.

6.5.4 Limitation of the Liability:

The maximum liability of the Contractor to the Employer under the Contract shall in no case exceed the Contract
Price plus the maximum liquidated damages for delay and performance, except in the case of

i any liability arising out of a) infringement of III party IPR, b) legal suits against Employer as a result of contractor’s
default.

ii fraud, wilful negligence and mismanagement on the part of the Contractor.

6.5.5 Plant’s availability:

The Operational Availability of the plant shall be maintained at minimum 97.5% during the 12 month period of O&M
services. Energy loss due to OA below 97.5% shall be recovered from the contractor at the rate of applicable tariff
including any penalty imposed by the Off-taker. Maximum liability of the contractor shall be limited to 10% of the
annual O&M charges. Any outage on a/c of force majeure conditions shall be adjusted.

6.5.6 Assignment:

Employer may assign the contract or part thereof, including the BGs, to third party. The rights and obligations of the
Contractor, under the contract shall remain unaltered. The Contractor may not assign the contract or part thereof

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without prior approval of the Employer. The sub-contracts for the part of works shall be got approved form the
Employer.

6.5.7 Insurance:

Contractor shall obtain necessary insurance for the Plant and Material, including Transit/Marine insurance, third party
liability insurance, vehicle (Lorry carrying Material) insurance during the execution of the contract up to CoD. All
insurances shall be placed with reputable insurers. In case of any delays in delivery of Material, then the insurance
charges for the extended period would be to Contractor’s account.

All policies must be capable of being able to be assigned to the financiers of the Project. The employer will be the
beneficiary. The entities financing the Project shall be made co-insured in all insurances that shall be obtained by the
Contractor, in the form acceptable to the Purchaser.

The proceeds of insurance shall be used to reinstate the Material to the extent of damage caused or in the event the
Material has been reinstated then the Contractor shall have the right to set-off the proceeds of insurance to the
extent of cost incurred for such reinstatement of the Material.

Contractor shall ensure that the Insurer is an entity licensed by Insurance Regulatory Development Authority (IRDA).

6.5.8 Confidentiality:

Each Party acknowledges that it may have access to the other Party’s technical or business information, data, designs,
concepts, ideas, products, processes, methods, techniques, specifications, formulas, compositions, samples, know-
how, trade secrets, and improvements of a confidential or proprietary nature, whether in tangible form or not, which
relate to the Products, or the development or commercialization thereof, and which were disclosed by one Party to
the other Party. All Confidential Information shall remain the exclusive property of the disclosing Party.

6.5.9 Contract formulation:

Prices, Terms of Payment shall be mutually agreed. Contract(s) including other terms and conditions – definitions,
variation, change order, Change in Laws, Indemnity, IPR, Force Majeure, Dispute resolution, Default of Parties,
Suspension of work, Termination etc. shall be finalised within 30 days of the placement of the LOI/LOA.

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6.8 CLEANING OF MODULES

Solar PV plants suffer from the following two main operational issues both resulting from the interaction of the PV panels with
the sand and dried clay particles in the atmosphere:
1 Pitting and scratches on the glass panel
2 Clay particulate matter which tends to stick to the glass, especially during the night time, when there is condensation
Given the above, water is required for regular cleaning of the modules. Underground water extracted by way of a bore well
will be used.

6.9. SOURCES OF FUNDS

The equity will be infused by the promoters of the Company. The debt portion shall be arranged from Indian Banks and
Financial Institutions at competitive terms and conditions as enumerated above.

6.10. FINANCIAL IMPACT


Sr. Description Considerations Units
No.COSTING

1 Basic Project Cost 14,630,790 INR


2 GST 1,302,140 INR
3 Net Project Cost 15,932,930 INR
4 O&M Cost 218,370 INR
5 O&M escalation 4.00% %
6 Insurance Cost 0.25% %
GENERATION

7 Annual solar generation 633,273 kWh


8 Avg. monthly generation 52,773 kWh
9 First year degradation 0.70% %
10 Post 1st yr yearly degradation 0.70% %
DISCOM TARIFF

11 Grid tariff 7.50 INR/kWh


12 Grid tariff yearly escalation 3.00% %
CAPITAL STRUCTURE

13 Debt to Capital Ratio 70.00% %


14 Equity 4,779,879 INR
15 Debt 11,153,051 INR
16 Loan rate 8.00% %
17 Loan tenure 2.00 Years
KEY OUTPUT PARAMETERS

21 Landed per unit cost of Solar 1.70 INR/kWh


22 Savings to DISCOM tariff 77.29% %
23 Equity Payback Period <3 years Years
24 Avg. Yearly EB bill saving 4,749,547.50 INR
25 Avg. Monthly EB bill saving 395,795.63 INR
26 Loan EMI ₹ 504,422.30 INR
27 CO2 saved 15,285.90 Metric Ton
TABLE 6.3: Financial Impact

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Yea Gri Solar Generation (Units) O&M and Insurance (INR) Loan Net project savings
r d EMI payment (INR)
Tari (INR)
ff
1 7.50 633,27 254,94 6,053,06 -
3 7 8 1,558,467
2 7.73 628,84 261,85 6,053,06 -
0 3 8 1,457,131
3 7.96 624,43 269,20 -   4,699,29
8 0 9
4 8.20 620,06 276,99 -   4,804,73
7 7 4
5 8.44 615,72 285,25 -   4,912,28
7 4 9
6 8.69 611,41 293,98 -  5,022,01
7 3 2
7 8.96 607,13 303,19 -   5,133,95
7 5 2
8 9.22 602,88 312,90 -   5,248,15
7 3 6
9 9.50 598,66 323,12 -   5,364,67
7 0 6
10 9.79 594,47 333,86 -   5,483,56
6 1 0
11 10.0 590,31 345,14 -   5,604,85
8 5 1 9
12 10.3 586,18 356,97 -   5,728,62
8 2 6 5
13 10.6 582,07 369,38 -   5,854,90
9 9 2 9
14 11.0 578,00 382,37 -   5,983,76
1 4 9 4
15 11.3 573,95 395,98 -   6,115,24
4 8 4 3
16 11.6 569,94 410,21 -   6,249,40
8 1 8 0
17 12.0 565,95 425,10 -   6,386,29
4 1 1 0
18 12.4 561,98 440,65 -   6,525,96
0 9 7 6
19 12.7 558,05 456,90 -   6,668,48
7 6 6 5
20 13.1 554,14 473,87 -   6,813,90
5 9 5 4
21 13.5 550,27 491,58 -   6,962,28
5 0 8 0
22 13.9 546,41 510,07 -   7,113,67
5 8 1 0
23 14.3 542,59 529,35 -   7,268,13
7 3 3 4
24 14.8 538,79 549,46 -   7,425,72
0 5 2 9

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25 15.2 535,02 570,42 -   7,586,51


5 4 9 7
TABLE 6.4: Yearly Generation Analysis

7 SELECTION OF TECHNOLOGY

KESARI ROLLER FLOUR MILLS would utilize Mono-crystalline, high-eff. modules for the project based on review of
performance of these panels over a period of time.

7.1 SELECTION OF TECHNOLOGY: THIN FILMS VS CRYSTALLINE SILICON TECHNOLOGY

7.1.1 TECHNOLOGY

The technology selected will be based on the ground situation in the state. The climate and average temperature
along with the cleanliness of the ambience are important parameters in the technology selection process. A detailed
analysis is provided below:

Photovoltaic Technology: Photovoltaic is a technology that converts sunlight directly into electricity. It was first
observed in 1839 by the French scientist Becquerel who detected that when light was directed onto one side of a
simple battery cell, the current generated could be increased. In the late 1950s, the US space program provided the
impetus for the development of crystalline silicon solar cells. The first commercial production of Today, PV systems
have important uses in areas remote from an electricity grid where they provide power for pumping water, lighting,
vaccine refrigeration, electrified livestock fencing, telecommunications and many other applications. Moreover, with
the global demand to reduce carbon dioxide emissions, PV technology is also gaining popularity as a mainstream
form of electricity.
When light falls on the active surface of a photovoltaic solar cell, the electrons of the cell become energized in
proportion to the intensity and spectral/wavelength distribution of the light. When the energy levels of the electrons
exceed a certain value, a potential difference is established across the cell. This is then capable of driving a current
through an external load.
Most commercially available PV devices use silicon (Si) as the base material, mainly as mono- or multicrystalline cells,
but more recently also in amorphous form. Other materials such as micro-morph, copper indium-gallium diselenide
and cadmium telluride among other semiconducting systems are being developed with the aim of reducing costs and
improving efficiencies. A mono-crystalline silicon cell is made from a thin The modules in a PV array are usually first
connected in series to obtain the desired voltage; the individual strings are then connected in parallel to allow the
system to produce more current. They are then protected by encapsulation between glass and a tough metal, plastic
or fiberglass back. This is held together by aluminium frame to form a module. These modules usually are made up of
up to 72 PV cells, forming the basic building

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7.1.2 COMMERCIALLY AVAILABLE MODULES:

Commercially available modules fall into two types based on the solar cells used:

a Mono-crystalline (c-Si) cell modules: The highest cell efficiencies of around 15%-18% are obtained with these
modules. The cells are cut from a mono-crystalline silicon crystal. The field efficiency of modules will be 15.5% -
16.5%.

b Multi-crystalline cell (mc-Si) modules: The cell manufacturing process is lower in cost but cell efficiencies of only
around 15% are achieved. A multi-crystalline cell is cut from a cast ingot of multi-crystalline silicon and is generally
square in shape. The field efficiency of modules will be 15% - 16.5%.

KESARI ROLLER FLOUR MILLS is evaluating all of the above technologies and would like use either singularly or in
combination, of any of the above technologies.

A typical datasheet of Crystalline Silicon module with 72 cell configuration is placed below along with comparison of
products offered by the leading cell/module manufacturers.

Electrical Data / STC*


Electrical Data (CS6X) 315P 320P 325P
Nominal Max. Power (Pmax) 315 W 320 W 325 W Opt. Operating Voltage (Vmp) 36.3 V
36.4 V 36.6 V Opt. Operating Current (Imp) 8.41 A 8.52 A 8.61 A Open Circuit Voltage
(Voc) 44.8 V 44.9 V 45.1 V Short Circuit Current (Isc) 8.97 A 9.08 A 9.18 A
Module Efficiency 15.90% 16.16% 16.42%
Operating Temperature ----------------------40°C ~ +85°C--------------------
Max. System Voltage 1000 V (IEC) or 1000 V (UL)
Module Fire Performance TYPE 1 (UL 1703) or CLASS C (IEC 61730)
Max. Series Fuse Rating 15 A
Application Classification Class A
Power Tolerance 0~+5W

* Under Standard Test Conditions (STC) of irradiance of 1000 W/m2, spectrum AM 1.5
and cell temperature of 25°C.

Electrical Data / Noct* Electrical Data CS6X 305P 310P 315P


Nominal Max. Power (Pmax) 221 W 225 W 228 W Opt. Operating Voltage (Vmp) 33.1 V
33.2 V 33.4 V Opt. Operating Current (Imp) 6.68 A 6.77 A 6.84 A Open Circuit Voltage
(Voc) 41.2 V 41.3 V 41.5 V Short Circuit Current (Isc) 7.27 A 7.36 A 7.44 A

* Under Nominal Operating Cell Temperature (NOCT), irradiance of 800 W/m2, spectrum
AM 1.5, ambient temperature 20°C, wind speed 1 m/s.

PERFORMANCE AT LOW IRRADIANCE


Industry leading performance at low irradiation, +96.0 % module efficiency from an irradiance of 1000 W/m2
to200 W/m2 (AM 1.5, 25°C). Module / mechanical Data
Specification Data
Cell Type Poly-crystalline, 6 inch
Cell Arrangement 72 (6 ˣ 12)
Dimensions 1954 ˣ 982 ˣ 40 mm (76.93 ˣ 38.7 ˣ 1.57 in)
Weight 22 kg (48.5 lbs)
Front Cover 3.2 mm tempered glass

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Frame Material Anodized aluminium alloy


J-BOX IP67, 3 diodes
Cable 4 mm2 (IEC) or 4 mm2 & 12 AWG
1000VU (L), 1150 mm (45.3 in)
Connectors MC4 or MC4 comparable
Standard Packaging 24 pcs, 608 kg (quantity& weight per
pallet)
Module Pieces per Container 528 pcs (40‘ HQ)

Temperature characteristics
Specification Data
Temperature Coefficient (Pmax) -0.43 % / °C
Temperature Coefficient (Voc) -0.34 % / °C
Temperature Coefficient (Isc) 0.065 % / °C
Nominal Operating Cell Temperature 45±2°C
Comparison of CSI modules (72 cells) offered by leading manufacturers (Source:
Producers’ Datasheet of manufacturers):
Sl Description Canadian Solar Axitec Trina
no.
1 Annual mfg capacity, MW 3000 MW 3200 MW 4000 MW
2 Module capacity, Wp 305-330 Wp 270-330 Wp 290-330
Wp
3 Efficiency for highest size, % 16.80% 16.80% 16.80%
4 Temperature Coefficient -0.43% -0.40% -0.41%
5 Tempered top glass thickness 3.2mm 4mm 3.2mm
6 Power Tolerance, Wp +5Wp +/-3% +5Wp
7 Product warranty 10 yrs 12 yrs 10 yrs
8 Output guarantee over 25 yrs Linear Linear Linear

7.2. POWER POTENTIAL STUDIES AND SIMULATION RESULTS

7.2.1 OUTPUT ESTIMATION

Process for Arriving at the Energy Output: Statistical Model: The simulation done for the Solar PV power plant is based on the
radiation data supplied by Meteo-norm / NASA on their website. The data consists of monthly average radiation data
recorded for 22 years. However, to generate a simulation we need synthetic hourly data. This is done by using statistical
models based on research work published in highly reputed international journals. The generated model has been shown to
give very good correlation between the actual and the predicted data. Nevertheless it is not possible to give an exact
prediction of the hourly radiation that will be received at a given time of the year. In this light, it is to be understood that the
predicted data and thus, the predicted power output, can be guaranteed only when predicted radiation is received under
expected climatic conditions. We have tried to predict the data as closely and accurately as feasible.

7.2.2 ENERGY MONITORING SYSTEMS

The online web based system is an innovative monitoring and analysis system for large PV plants. The system supports the
diagnostic and monitoring functions for the PV system components. For detecting faults and measuring performance at a
finer level, special string monitoring units are installed that can monitor individual strings and detect
any deviation from expected performance. By measuring and comparing the individual string currents, power deviations in
the solar generator are detected reliably and are analyzed directly. If failures occur in individual modules, or in the string
cabling, they can be detected very easily. The string monitoring reliably detects failures, and thus prevents power losses and
yield losses. This saves precious time detecting faults in the system. Additional equipment to measure current and voltage at
string level is not needed as the data is logged directly from each string inverter.

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7.2.3 ENERGY AND YIELD MONITORING

Online web based system enables end user to detect malfunctions at the string level (modules connected in series). Each
string of modules is monitored at the string inverter. Measurement of the temperature, irradiation, string level current
values, etc. is recorded and the data is transmitted for monitoring. A constant target/actual analysis enables malfunctions to
be detected in their initial stages and an immediate notification is sent to a definable group of people.

7.2.4 RELIABILITY

The long-life electronic safety feature will optimize system availability.

7.2.5 COMMUNICATION

The system uses Data modem (analogue/Ethernet), Rs-485 MODBUS or any other suitable data acquisition system. The
system also enables diagnostic and monitoring at string level with sensor data from irradiance, temperature and wind
sensors.

7.2.6 OUTPUT MONITORING MECHANISM

a Number of units will be monitored on the last day of each month in the energy meter.
b Conditions – Wind speed, irradiance figures, temperature to be monitored along with output, and the above outcome is
subject to conditions mentioned in energy output certificate.

7.2.7 AGREEMENT EXECUTION

a. Monthly Data to be taken and variation on a monthly level to be checked for manual intervention.
b. Excess and deficit contract to be revised based on frequency of deviation occurrences.
c. The insolation according to NASA is 1840 kWh/m2 at 10 degrees tilt (True south) at the site. The Energy Output details
according to the insolation from NASA on the monthly basis for the year are as follows.

1 Annual Panel Degradation Factor (leading to loss of CUF/PLF) – 0.7% per annum;
2 Escalation of Operation & Maintenance Cost per annum –5% per annum;
3 Normal Economic Life of Solar PV Power Plant – 25 years;
4 Salvage Value at the end of 20 years – 3% of original cost;

7.3 PLANT LAYOUT & OTHER TECHNICAL DETAILS

7.3.1 Grid Inter-tied with no storage

Net-metered simple solar-grid sharing without backup Panel(s), Rack(s), Line Tie Inverter(s), Over Current Protection,
Grounding, Disconnects, Enclosures, Lightning Arrestor, Wiring, and Conduit.

7.3.2 Grid Inter-tied Business with no storage

Net-metered simple solar-grid sharing without backup Panel(s), Rack(s), Line Tie Inverter(s), Over Current Protection,
Grounding, Disconnects, Enclosures, Lightning Arrestor, Wiring, and Conduit.

7.3.3 Grid Inter-tied with storage

Net-metered with backup power in the event of grid failure Panel(s), Rack(s), Multi Mode Inverter/Charger(s), Charge
Controller(s), Batteries and/or Flywheel(s), Over Current Protection, Grounding, Transfer Switch, Disconnects, Enclosures,
Lightning Arrestor, Wiring, and Conduit.

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7.3.4 Grid Inter-tied Business with storage

Net-metered with backup power in the event of grid failure Panel(s), Rack(s), Multi Mode Inverter/Charger(s), Charge
Controller(s), Batteries and/or Flywheel(s), Over Current Protection, Grounding, Transfer Switch, Disconnects, Enclosures,
Lightning Arrestor, Wiring, and Conduit.

7.3.5 Grid Inter-tied with Uninterrupted Power Source

Seamless power for sensitive loads Panel(s), Rack(s), Multimode Inverter/Charger(s), Charge Controller(s), Batteries and/or
Flywheel(s), Over Current Protection, Grounding, Critical Load Panel, Disconnects, Enclosures, Lightning Arrestor, Wiring, and
Conduit.

8 SOLAR CELLS TECHNOLOGY

The Company has decided to use c-Si photovoltaic, which is a technology that converts sunlight directly into electricity. It was
first observed in 1839 by the French scientist Becquerel who detected that when light was directed onto one side of a simple
battery cell, the current generated could be increased. The first commercial production of PV modules for terrestrial
applications began in 1953 with the introduction of automated PV production plants. Today, PV systems have important uses
in areas remote from an electricity grid where they provide power for pumping water, lighting, vaccine refrigeration,
electrified livestock fencing, telecommunications and many other applications. Moreover, with the global demand to reduce
carbon dioxide emissions, PV technology is also gaining popularity as a mainstream form of electricity.

When light falls on the active surface of a photovoltaic solar cell the electrons of the cell become energized in proportion to
the intensity and spectral/wavelength distribution of the light. When the energy levels of the electrons exceed a certain value,
a potential difference is established across the cell. This is then capable of driving a current through an external load.

The modules in a PV array are usually first connected in series to obtain the desired voltage; the individual strings are then
connected in parallel to allow the system to produce more current. They are then protected by encapsulation between glass
and a tough metal, plastic or fiberglass back. This is held together by a stainless steel or aluminium frame to form a module.
These modules usually are made up of 30 PV cells, forming the basic building block of a solar array. Modules may be
connected in series or parallel to increase the voltage and current, and thus achieve the required solar array characteristics
that will match the load. Typical module size in 72 cell configuration is 300Wp (three hundred Watt peak power).

Most commercially available PV devices use silicon (Si) as the base material, mainly as mono- or multi-crystalline cells, but
more recently also in amorphous form. A mono-crystalline silicon cell is made from a thin wafer of a high purity silicon crystal,
doped with a minute quantity of boron. Phosphorus is diffused into the active surface of the wafer. At the front electrical
contact is made by a metallic grid; at the back contact usually covers the whole surface. An anti-reflective coating is applied to
the front surface. Typical cell size is about 15cms in diameter. The process of producing efficient solar cells is costly due to the
use of expensive pure silicon and the energy consumed. Currently, there is a global oversupply of Si and Si-based solar panels
in the global market.

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Commercially available modules fall into four types based on the solar cells used:

a Mono-crystalline (c-Si) cell modules: The highest cell efficiencies of around 15%-18% are obtained with these
modules. The cells are cut from a mono-crystalline silicon crystal.

b Multi-crystalline cell (mc-Si) modules: The cell manufacturing process is lower in cost but cell efficiencies of only
around 15% are achieved. A multi-crystalline cell is cut from a cast ingot of multi-crystalline silicon and is generally
square in shape.

c Thin film - Amorphous silicon modules: These are made from thin films of amorphous silicon where efficiency is much
lower (10%-12%) but the process uses less material. The potential for cost reduction is greatest for this type and much
work has been carried out in recent years to develop amorphous silicon technology.

d Thin film - Other semiconductor materials such as copper indium-gallium di-selenide (CIGS) and cadmium telluride
(CdTe) among other semiconducting systems are being developed with the aim of reducing costs and improving
efficiencies.

It should be noted that high efficiency of a certain type of cell does not necessarily convert into higher power generation
because efficiency is measured under certain standard conditions, which are not available in practice. Based on extensive
studies of sunlight & heat availability, a-Si, polycrystalline modules have been shown to produce more power in conditions
prevailing in State . However, long-term performance of thin film technologies in the field, especially under Indian conditions,
remains to be proven in terms of degradation and energy output.

8.1 BALANCE-OF-SYSTEM (BOS)

In a renewable energy system, a quantity called “balance-of-system” refers to all components other than the mechanism used
to harvest the resource, in this case (solar panels) and the application or load. It includes support structures, power
conditioning equipment, batteries, and indirect storage. In addition, the balance-of-system may also be taken to include
design costs, land, site preparation, system installation, operation and maintenance costs, and related costs.

Detailed requirements of grid-connected systems:

1 Solar modules and mounting hardware, disconnect switches or circuit breakers and a grid interactive inverter.

2 The solar array produces DC current that passes through inverter, which converts to AC current and voltage. Power is
sent to the utility meter and is either consumed immediately by home or business loads, or is sent out to the general
utility grid network. The utility meter spins backwards, or two meters are used to record incoming and outgoing
power. At night, loads operate from utility power since the solar power system does not produce power. The inverter
shuts down automatically in case of utility power failure for safety, and reconnects automatically when utility power
resumes.

3 Above components with the addition of a battery bank, charge regulator and bi-directional inverter – for internal use.
The battery bank is not intended to store the entire power produced. The size of the battery bank will be flexible and
may be expanded as the actual requirement is established.

4 The solar array charges the battery bank through a charge regulator. DC power from the battery passes through the
inverter and is converted to AC current. The majority of the DC power, in the present case will be routed to the utility
meter through inverters to be sent out to the general utility grid network.

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5 At night, loads operate and the battery bank is kept trickle charged from utility power since the solar power system
does not produce power. In case of utility power failure, the direct connection to the utility meter is shut down for
safety. The solar array recharges the battery each day during sunlit hour.

Fig: 8.1: An inverter (Left), a charge controller (Right) and a grid-tie inverter (Bottom)

Aside from the major small renewable energy system components, some additional equipment, called balance-ofsystem, are
also required to safely transmit electricity and comply with the grid-connection requirements. Such items are:
1 Power conditioning equipment

2 Safety equipment

3 Meters and instrumentation.

8.2 POWER CONDITIONING EQUIPMENT

Power conditioning equipment is an important component of the balance-of-system. Electrical equipment, or power
electronics, used to convert power from a solar array, or other renewable energy system, into a form suitable for subsequent
use. Power conditioners process the electricity produced by a photovoltaic system so it will meet the specific demands of the
load. Although most equipment is standard, it is very important to select equipment that matches the characteristics of the
load. Power conditioners may have these functions:

1 Limit current and voltage to maximize power output

2 Convert DC power to AC

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3 Match the converted AC electricity to a utility's electrical network


4 Have safeguards that protect utility personnel and the network from harm during repairs

8.3 SELECTION OF INVERTERS

An inverter is a device which changes DC power to AC at standard voltage. All solar power systems generate DC, so it takes an
inverter to make the switch from DC to AV at standard Voltage and frequency. In an inverter, direct current (DC) is switched
back and forth to produce alternating current (AC). Then it is transformed, filtered, stepped, etc. to get it to an acceptable
output waveform. The more processing, the cleaner and quieter the output, but the lower the efficiency of the conversion.
The goal becomes to produce a waveform that is acceptable to all loads without sacrificing too much power into the
conversion process.

Inverters come in two basic output designs - sine wave and modified sine wave. Most AC devices can use the modified sine
wave, but there are some notable exceptions. Devices such as laser printers which use triacs and/or silicon controlled
rectifiers are damaged when provided mod-sine wave power. Motors and power supplies usually run warmer and less
efficiently on mod-sine wave power. Some other devices, like fans, amplifiers, and cheap fluorescent lights, give off an audible
buzz on modified sine wave power. However, modified sine wave inverters make the conversion from DC to AC very
efficiently. A sine wave inverter can "clean up" utility or generator supplied power because of its internal processing.

Inverters are made with various internal features and many permit external equipment interface. Common internal features
are internal battery chargers which can rapidly charge batteries when an AC source such as a generator or utility power is
connected to the inverter's INPUT terminals. Most inverters can be equipped with a step-up transformer to produce a
required AC Voltage level.

Specific requirements of power conditioners depend on the type of PV system they are used with and the applications of that
system. For DC applications, power conditioning is often done with regulators, which control output at some constant level of
voltage and current to maximize output. For AC loads, power conditioning must include an inverter that converts the direct
current generated by the PV array into alternating current. Many simple devices – for example, ones that run on batteries –
use DC electricity. However, AC electricity, which is what is generated by utilities, is needed to run most modern appliances
and electronic devices.

There are many different solar inverters on the market today; all with different features, power ranges, options and prices.
Some of the examples are: ABB, SMA, Siemens, Fronius, Delta & Sharp. These are all foreign made and have to be imported.
To minimize the power losses during the conversion process, the inverter switching technology uses insulated gate bi-polar
transistors. Multiple inverters can be paralleled for large power installations.

8.4 SPECIFICATIONS OF JUNCTION BOXES 8.4.1

Array Junction Boxes

(a) The array junction boxes will be dust, vermin and waterproof and made of thermo plastic with IP65 protection standards.

(b) MOV’s are used at the terminals of array junction boxes for external over voltage protection

(c) The junction boxes will be fitted with cable glands of appropriate sizes for both incoming and outgoing cables.

(d) Suitable marketing are provided on the bus bar for easy identification and cable ferrules shall be fitted at the cable
termination points for identification.

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8.4.2 Main Junction Boxes

Main junction boxes used to connect the output of array junction boxes to the grid-tie inverter. The output of 4/5 AJB is fed
in to one main junction box. The single output of main junction box works as an input for inverter.

Fig 8.2: Types of Junction Boxes

8.5 SPECIFICATION OF THE PVC CABLES

The bright annealed 99.97% pure bare copper conductors as per IS of electricity rules and regulation that offer low conductor
resistance, they result in lower heating thereby increase in life and savings in power consumption. These wires are insulated
with a special grade PVC Compound formulated and manufactured in-house. The skin coloration offers high insulation
resistance and long life.

Table 8.1: Technical Specification of Cable:

Fig 8.3: Photograph of a typical cable

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8.6 SAFETY

Utility-Interactive or Grid-Tie Solar Photovoltaic (PV) Systems are very demanding and cost intensive projects. They often
require the Solar PV System to be operational for several decades before it can yield the desired return on investment. Many
manufacturers will guarantee a system life of greater than 20 years while the inverter is generally guaranteed for only 0 years.
All costs and return on investments are calculated based on these time periods. However, many PV systems are not reaching
maturity due to the exposed nature of these applications and its interconnection back to the AC utility grid.

The solar PV arrays, with its metallic frame and mounted in the open or on roof tops, act as a very good lightning rod. For this
reason, it is prudent to invest in surge protection to eliminate these potential threats and thus maximize the systems life
expectancy. The cost for a comprehensive surge protection system is less than 1% of the total system expenditure. To analyze
the full threat level of the installation, we must make a risk assessment:

- Geographic Risk
- Application Surface Area Risk
- Power Interconnection Risk
- Operational Downtime Risk

8.7 BEST PTACTICES

8.7.1 Earthing System

Surge Protectors shunt transients to the earth grounding system. A low impedance ground path, at the same potential, is
critical for the surge protectors to function properly. All power systems, communication lines, grounded and ungrounded
metallic objects need to be equipotentially bonded for the protection scheme to work efficiently.

8.7.2 Underground Connection from External PV Array to Electrical Control Equipment:

If possible, the connection between the external Solar PV Array and the internal power control equipment should be
underground or electrically shielded to limit the risk of direct lightning strikes and/or coupling.

8.7.3 Coordinated Protection Scheme:

All available power and communication networks should be address with surge protection to eliminate PV system
vulnerabilities. This would include the primary AC utility power supply, Inverter AC output, Inverter DC input, PV string
combiner and other related data/signal lines such as RS-485, 4-20mA current loop, PT-100, RTD, and telephone modems.
Consequences of system downtime are not only limited to equipment replacement. Additional losses can result from lost
orders, idle workers, overtime, customer/management dissatisfaction, expedited freight charges and expedited shipping
costs. The greater the surface area of the solar PV array, the more exposure to direct and/or induced lightning surges. The AC
utility grid is a likely source of switching transients and/or induced lightning surges. Areas with severe lightning and unstable
utility power are more vulnerable

The following illustration details the application points for the surge protectors and the primary protection goal of each
device.

(a) AC Distribution Panel: - Protects all loads connected to the facility’s main distribution panel against transients
Originating from the AC utility grid or internal switching equipment, i.e. CNC machines, elevators, inductive motors.

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(b) Inverter AC Output: - Local protection in front of the inverter to protect against threats from the AC utility and generated
internally within the facility.

(c) Data/Signal Lines: - Protects inverter, communication equipment and PC workstations against lightning induced transients
entering the system via exposed sensor and communications lines.
(d) Inverter DC Input: - Local protection in front of the inverter to protect against lightning induced transients originating from
the solar PV array.

(e) PV Array Combiner: - Protects solar modules and blocking diodes from physical damage resulting from lightning induced
transients.

(f) Equipotential Earthing System: - The grounding network of the PV system and all ungrounded metallic objects need to be
equalized to the same potential during lighting events.

8.8. CUT OFF VOLTAGE

The voltage levels (activation) at which the charge controller disconnects the photovoltaic array from the battery or the load
from the battery.

8.9. MODULE MOUNTING STRUCTURES

There are four basic types of mount structures: roof/ground, top-of-pole, side-of-pole and tracking mounts, each having their
own pros and cons. For example, roof mount structures typically keep the run distances between the solar array and battery
bank or grid-tie to a minimum. But they may also require roof penetrations in multiple locations, requiring expensive ground
fault protection devices to satisfy electrical codes. Ground mounted arrays (Fig. 18) require fairly precise foundation setup,
are more susceptible to theft/vandalism and excessive dirt accumulation at the bottom of the array. Top-of-pole mounts are
relatively easy to install and reduce the risk of theft. They are also a better choice for windy areas because the dirt slides off
easily. Side-of-pole mounts are easy to install, but are typically used for small numbers of solar modules (1-4) for remote
lighting systems where there is already a pole to attach them to.

8.9.1. ORIENTATION OF MODULES

If a site is in the southern hemisphere, solar modules should point to north (the reverse is true for locations in the northern
hemisphere) to maximize daily energy output. For many locations there is quite a difference between magnetic south and
true south, so consultation of a declination map is prudent before setting up a mount structure. The solar modules should be
tilted up from horizontal to get a better angle at the sun and help keep the modules clean by shedding rain or dirt.

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Detailed Project Report

8.9.2. CIVIL/ MECHANICAL CONSTRUCTION

Civil construction will be carried out by local contractors under the guidance of contractor's detailed engineering drawing for
the civil work and mechanical structures will be provided by the latter. The execution of the construction will be conducted by
local contractors who will provide the manpower.

Most mount structures are available with a seasonal adjustment of the tilt angle from horizontal to 65°. To determine if the
proposed array site will be shaded at any time of the day or year a Solar Pathfinder should be used. Fig. 13 depicts one of the
many positions the module arrays might be set up. Trackers increase the daily number of full sun hours and will be utilized in
the project. For the proposed site, trackers will be extremely effective round the year and may increase the total power
output by over 25%. Tracking arrangement will be provided such that the PV arrays will follow the path of the sun to
maximize the solar radiation incident on the PV surface. The two most common orientations are (1) one axis where the array
tracks the sun east to west and (2) two-axis tracking where the array points directly at the sun at all times. Tracking arrays use
both the direct and diffuse sunlight. Two-axis tracking arrays capture the maximum possible daily energy. Typically, a single
axis tracker will provide 10% to 25% more power per day and dual axis tracking will add about 5% to that. However, tracking
will NOT be necessary since we shall use a-Si modules which have very high absorption properties at most angles of incidence
of solar photons.

Fig 8.4: Proposed Module Mounting

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SYSTEM DESIGNING

Fig 9.1. Line Diagram of the grid-interactive solar power generation unit

Legend:

1 The PV Array: a group of PV Modules wired in series or parallel or some combination thereof to obtain the desired
output.
2 The Ground Fault Protection Unit protects the equipment from a short circuit.
3 The PV Array Breaker allows power from the array to be shut off so that work on other parts of the system can be
performed in safety.
4 The Charge Controller monitors the battery bank to keep it fully charged while protecting against overcharging. The
present proposal will contain a limited battery bank just to be able to provide its own power during night time.
5 The Battery Bank Breaker allows power from the battery to be shut off so that work on other parts of the system
can be performed in safety.
6 Battery Bank: a certain number of batteries, wired in series or parallel or some combination thereof, to obtain the
desired output. As described earlier, the batter bank is only for internal consumption during off-hours. The purpose
is to provide power for lighting up the entire facility for providing security to personnel and property.

7 Inverter: a device that changes electricity from direct current (DC), generated by PV panels and batteries, to
alternating current (AC).

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8 UPS/Bypass Breaker Sub-panel: a device used to switch to battery power if the grid goes down.

9 The UPS Sub-panel: holds circuit breakers for those circuits supplied by the UPS system.

10 UPS Circuits: selected AC circuits that will receive power if the grid goes down. The number of circuits served
depends on the size of the battery bank.

11 PV/Grid Disconnect: a switch that turns off the power from the PV array and battery bank so that work on the AC
part of the system can be performed in safety, either on the generation side or on the utility grid.

12 Main Service Entrance: the circuit breaker where the grid meets the generation side. Has a meter to measure the
amount of electricity provided to the grid. Time-of-Use meters will be used to keep track of the precise time when a
certain quantum of electricity is provided to the grid.

13 Standard Sub-panel: the standard AC circuit breaker box.

9.1. EFFICIENCY LOSSES

In all systems there are losses due to such things as voltage losses as the electricity is carried across the wires and inverters
not being 100 percent efficient. These efficiency losses vary from component to component and from system to system and
can be as high as 25 percent. Properly configuring the right equipment is essential for minimizing losses. The direct current
(DC) electricity that will be generated will be flown through electronic inverters to give grid-quality alternating current (AC).
Transformers will then step up the voltage to meet the requirements of the transmission network. A control system will be
used to monitor performance and adjust current and voltage to maximize electricity production.

The final energy yield of a PV system Yf is usually given for a certain period of time, and normalized on installed peak power in
kilowatt peak (kWp):

The so-called "reference yield Yr" is defined by

Final yield normalized to reference yield gives a measure for the system performance, independent of weather and climate
conditions of a particular site. This ratio serves for comparing PV systems under different climate conditions and is called
"performance ratio PR."

Deration of module efficiency: In consideration of Fig. 4 of page 16, module efficiency does not demonstrate any appreciable
decrease. However, the data covers only four years and efficiency degradation may take place from the 5th or 6th year
onwards. Even though, such degradation is likely after the initial period, we have not considered the 0.20.5% annual decrease
in efficiency in the light of the fact that our calculation of projected power generation has been based on 8-hr days, whereas
sunlight in these parts of State remains around 10 hrs a day on the average.

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Fig 9.3: Composite Layout of Solar


Modules
GENERATING STATION ARRANGEMENT DESIGN
CONSIDERATIONS
i Safety and
reliability
Simplicity of
Good technical
operation
performance

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Detailed Project Report

Fig 9.2: Block Diagram of Plant

9.2

ii
iii
iv Readily maintainable (e.g., critical components can be removed from service without shutting down the balance of
plant).
v Flexibility to deal with contingencies.
vi Ability to accommodate system changes

9.3 SURGE PROTECTION

Protection for grid operation and islanding will be provided as per IEEE std. 1020/C37.95. In any case reverse power relay,
under frequency and df/dt relay will be provided for grid separation to prevent damage to SPV plant due to asynchronisation.

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Detailed Project Report

Special synchronizing arrangements from grid breaker are required for islanding operations. Provision of synchronizing check
relay for feeder breaker closing at the power house and no load charging at the receiving end grid substation breaker should
be provided.

9.4. ENERGY MONITORING SYSTEMS

The online web based system is an innovative monitoring and analysis system for large PV plants. The system supports the
diagnostic and monitoring functions for the PV system components. For detecting faults and measuring performance at a
finer level, special string monitoring units are installed that can monitor individual strings and detect
any deviation from expected performance. By measuring and comparing the individual string currents, power deviations in
the solar generator are detected reliably and are analyzed directly. If failures occur in individual modules, or in the string
cabling, they can be detected very easily. The string monitoring reliably detects failures, and thus prevents power losses and
yield losses. This saves precious time detecting faults in the system. Additional equipment to measure current and voltage at
string level is not needed as the data is logged directly from each string inverter.

9.5. ENERGY AND YIELD MONITORING

Online web based system enables end user to detect malfunctions at the string level (modules connected in series). Each
string of modules is monitored at the string inverter. Measurement of the temperature, irradiation, string level current
values, etc. is recorded and the data is transmitted for monitoring. A constant target/actual analysis enables malfunctions to
be detected in their initial stages and an immediate notification is sent to a definable group of people.

9.6. RELIABILITY

The long-life electronic safety feature will optimize system availability.

9.7. COMMUNICATION

The system uses Data modem (analogue/Ethernet), Rs-485 MODBUS or any other suitable data acquisition system. The
system also enables diagnostic and monitoring at string level with sensor data from irradiance, temperature and wind
sensors.

9.8. OUTPUT MONITORING MECHANISM:

i Number of units will be monitored on the last day of each month in the energy meter.
ii Conditions – Wind speed, irradiance figures, temperature to be monitored along with output, and the above outcome
is subject to conditions mentioned in energy output certificate.

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10 OPERATIONS AND MAINTENANCE OF SOLAR POWER PLANT

10.1 MANPOWER
In order to operate and maintain the solar power plant facilities, including its technical and administrative needs, the
manpower requirement for the proposed 466 kW plant has been estimated to be 2 operative staff in 1 shift. Additionally,
security personnel and the module cleaning will be outsourced. The project would provide direct employment to about 3
personnel. The personnel for key positions would be selected in consultation with the technology supplier. Additionally
training by the technical collaborator at various stages of the project is envisaged.

During the installation, company's engineers would have theoretical and hands‐on experience of operating the facility and
also the know-how to do trouble-shooting. During the installation and commissioning phase, the entire work is proposed to
be carried out by company-appointed staff and personnel under the direct supervision of the technology and turn-key plant
supplier's representatives. This will be followed up with a comprehensive training for the entire staff of the unit. The training
from technology supplier would be supplemented by additional training to be provided and arranged by company at regular
intervals.

10.2 CLEANING OF MODULES

In desert locations, sand and dried clay particles are found in larger proportions in the atmosphere especially in windy
conditions. Such particulate collisions with the front glass panel of solar modules cause two primary problems:

i Pitting and scratches on the glass panel and


ii Clayey particulate matter tends to stick to the glass, especially during the night time, when minimal condensation
aggravates this problem.

Pitting or scratches scatter incident solar radiation and clays sticking to the glass surface tend to make such areas opaque to
sunlight. While, the former is a permanent defect and difficult to repair, the latter must be removed every day. Absorption
of sunlight by clay particles or scattering of the same by scratches on the glass surface will undoubtedly restrict the quantum
of solar radiation interacting with the solar cells, reducing the efficiency of power generation. To get around these recurring
problems in these conditions, the following measures will be undertaken:

i Every module will have a perforated tube (made from a relatively cheap material – rubber or plastic) fastened
to the top of its frame. A network of these tubes will be connected to an overhead water reservoir such that these
may be used to sprinkle water on the glass cover of the modules with a view to cleaning them periodically. A
network of such water sprinklers has the potentiality of increasing the efficiency of traditional solar PVs by 10-15 %.
An incremental degradation of the glass surface may be caused by the alkali components of the clay. To mitigate this
problem, the water sprayed will have a mild acidic nature (pH~6.9).

ii There are certain treatments that can be undertaken to repair pitting and scratches of glasses. Such treatments
comprise application of optical quality gels on the damaged portions of glass surfaces. These procedures will be
implemented only during bi-monthly maintenance routines or if the damages prove to be a serious detriment.

10.3 WATER FOR CLEANING

In view of the above, clean water would be required for regular cleaning of module, since, the need for water shall not be
much underground water by way of bore well should suffice the required water requirements. Water storage tanks shall be
built to ensure enough supply of water as and when required for cleaning. Rainwater harvesting is all considered.

11 PROJECT COST

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11.1 BREAKUP OF PROJECT COST

The complete Engineering, Procurement & Construction cost of developing the 436.74 kWp grid connected solar
photovoltaic power plant on is at an estimated cost (including GST) of INR 15,932,930 /-.

11.2 COST OF PV MODULES

In Solar PV power project, the two major sub‐systems are Solar PV modules and balance of Systems (BoS). Solar PV modules
constitute approx. 50% of the cost while BoS comprises the rest. The preferred Solar PV modules are crystalline Silicon based.
The capacity utilization factor (CUF) has the most significant impact on the levelized tariff and consequent cost recovery for
the developers. With presently negligible domestic manufacturing capacity for Polysilicon and Silicon Wafer in our country,
most of the project developers need to resort to purchase these modules either from China/Taiwan. Tier-1 manufacturers
from these countries includes Trina Solar, Risen, Canadian Solar, Yingli. We are in in discussion with these vendors , EPC
Contractor, to finalize the module supply contract.

It is important that the PV modules that are being procured are able to sustain their efficiency for the entire life of the project
for 25 years and hence quality modules need to be considered. Accordingly, the company, in its negotiations with various
suppliers, has been offered, by few of the manufacturers that PV modules backed with 25 years warranty and with 80%
power availability at the end of 25th year.

11.3 PRELIMINARY, PREOPERATIVE & CONTINGENCIES

The preliminary/pre‐operating expenses include transportation of equipment, storage of equipment at site, insurance,
contingency, taxes and duties, approvals and permits, and financing costs with finance charges etc.

11.4 MEANS OF FINANCE

The project is proposed to be funded by way of a combination of debt & equity mix as under,

S.N. Particulars INR Percentage 1 Equity - 4,779,879.09- 30%


2 Term Debt from banks/financial institutions - 11,153,051.22- 70% Total means of finance - 15,932,930.31-

Table 11.1: Means of Finance

12 CONCLUSION, PROJECT RISKS & MITIGATES

The key risks associated with the proposed project and for the company considering the industry and business activity are
enumerated along with the mitigating factors in respect of each risk envisaged –

Risk Factors Mitigating Factors

Business Risk Opinion


Solar Power is capital intensive and is Strong demand and support from the Government and HT Consumers at a
nascent stage in India to meet solar Renewable Purchase Obligation.

Viability Risk Opinion

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Detailed Project Report

The power purchase rate are With the price of PV modules gradually reducing, the same is offset by
progressively reducing impacting the the lower investment required and the resultant interest costs. viability of the
project

Economic Risk Opinion


The project having a long tenor of 25 With the government focusing on power generation through the years and
subsequent policy changes National Solar Mission, it is expected that the sector will see further or future economic
factors can positive growth and contribution and hence no adverse policy changes impact the project are
expected.

TABLE 12.1: Risk & Mitigates

The key drivers for the renewable energy sector in India include: (i) the demand-supply gap, especially as population
increases; (ii) regulatory incentives and the availability of CDM benefits and/or Indian RECs, when fully-implemented by the
Indian government; (iii) a large untapped potential; (iv) environmental concerns regarding the use of fossil fuels; (v) the desire
to strengthen India’s energy security; and (vi) a viable solution for rural electrification.

Currently the overall power generation segment is largely dominated by Central and state utilities, however after the
Electricity Act of 2003 private sector players have increasingly entered the industry because of fiscal incentives and its
provisions that opened up the market to private players.

With an ever increasing demand for power in the country, renewable energy plants with a longer techno economic life have a
better scope for taking up a larger share in addressing the industrial & consumer demand for electricity without further
affecting the eco system and without compromising or depleting the non-renewable sources.

Thus there is ample scope for private players in the renewable energy space to be the preferred but alternate route of power
supply to cater to the industrial and economic growth.

END OF DPR

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