1. RENEWABLE ENERGY INITIATIVESBy
M P Sharma
Varroc Group

2. QUESTION & ANSWER‘S- SESSION
Index:
ABOUT VARROC GROUP
ENERGY SCENARIO – INDIA
ENERGY SCENARIO – MAHARASHTRA
WHY RENEWABLE ENERGY
SOLAR PROJECT – A B C
QUESTION & ANSWER‘S- SESSION

3. About Varroc Group

4. Company Profile – Varroc Group
Headquartered in Aurangabad, India
Leading Indian supplier of Electrical, Metallic and Polymer components and sub assemblies for 2 wheeler and 4 wheeler industry
USD 1.2 Billion annual sales; growing at over 20% annually for the past decade
10,000+ direct employees, including engineers globally
31 manufacturing facilities and 6 engineering centers globally
Serves all major OE vehicle manufacturers in India and abroad.
Among top 3 automotive suppliers in India 4

5. Varroc Group – Global Footprint and Support
Varroc is well positioned to support Customer growth in all markets.
Germany
Unites States of America
Slovakia
Czech
United Kingdom
Italy
China
France
Mexico
India
Vietnam
Guatemala
Nigeria
Egypt
Globally
Angola
Divisions
Number of Plants
Polymer 9
Electrical 12
Metallic
Integrated Plant 1
Engineering Centers 6
Location
Plant
R&D
Center
India 21 3
Europe 8
South East Asia 1  - US -

6. Varroc Group- India Foot Print

7. Customer Base – Varroc Group
2 WHEELERS
PASSENGER
CARS
COMMERCIAL
VEHICLES
SYSTEM
SUPPLIERS
Trademark Shown are exclusive property of respective Companies

8. Varroc Core Values S H I P S

9. Varroc Renewable Energy Mission
Varroc Renewable Energy Mission targets to achieve 20% of its power requirement through Renewable Energy by 2016
Estimated Power requirement of Varroc Group by 2016 will be 100 MW
20 MW of this power shall be through renewable energy
Achievements of Mission till 2013
8 MW of power from Wind energy
5 MW of power from Solar energy (operational Dec 2013)
Other activities under green mission
Planting & distributing Sapling
Distribution of Seeds
We are focused toward the Eco-Green concept to create a pollution free environment for our young generation.
Need for Action against Climate change
8 MW Wind
5 MW Solar under Installation, & another 7 MW in pipeline

10. Energy Scenario- India

11. India’s Energy Challenge
In next 12 years India’s electricity requirement to grow 2.5 times
Electricity shortage estimated at GW
Shortage
Access
Security
Climate Change
Demand
400 Million people still without access to electricity
Climate Change is also an important issue
Energy Security is most important for any Industry
As electricity need increases in future, demand & Supply gap will increase further
India is dependent on oil imports for 80% of its demand

12. Indian Power Sector (30 June 2013)
India is still dependent mostly on Thermal power which uses Coal & Gas for Generation, this makes price factor dependence not only on internal but external factors as well. Like, Recent tension in Syria is pushing up Crude prices.
Thermal
1,53,848, MW
Hydro
39,623 MW
Nuclear
4,780 MW
Renewable
27,541 MW
(Source: CEA Annual Report)

13. Renewable Power Capacity (30 June 2013)
Past Focus Area
CurrentFocus Area
Renewable Installation is increasing every month. Increasing more than 15% every year, which proves that Power generation through Renewable forms is Sustainable.
Originally we invested in Wind, now we are investing on Solar, Initial study of Solar proves that in log term Solar is more beneficial over Wind, which will be followed in coming slides.
Wind
19,228 MW
Small Hydro
3,630 MW
Bio
3,000MW
Solar
1,686 MW
(Source: MNRE)

14. Energy Scenario-Maharashtra
Demand – Supply Scenario in MW at the Time of Peak Demand
Particular
Demand [MW]
16,792
17,266
17,879
18,168
19,105
Availability [MW]
12,460
12,578
13,504
14,353
15,634
Shortfall [MW]
4,332
4,688
4,375
3,815
3471
In Maharashtra region also, there has been consistent differential between Demand & Supply. Though it is very important to know that Maharashtra is amongst the leading states to invest in renewable energy. This is how you can see the gap between demand & supply is somewhat reducing.
(Source: CEA Monthly Report)

15. Why Renewable Energy?

16. Why Choose Renewable Energy
Corporate Social Responsibility (CSR) Initiative
Sustainable business model- Eliminate long term impact of energy cost on current business
Excellent Investment opportunity considering government Incentives (Project IRR 20-25%)
Improves Infrastructure & Groups visibility in rural areas & helps evaluating new locations to spread business
Renewable energy clean form of energy & it is sustainable as it
Increases energy security for us
Helps us reduce our Energy cost. Our Current energy cost is about 5% of over cost, with renewable energy we target to reduce it to 4%
Excellent Investment opportunity with a good IRR.

17. Wind Energy Vs Solar Energy
Parameter
Wind
Solar PV
Basic
Dependent on Wind
(Resource: 1,700 TW)
The Ultimate Energy Source
(Resource 6,500 TW)
Site
Sea shores or Land
On Land or Rooftop
Technology
Wind Turbines
Forecast
No Forecast on availability
Predictable & Reliable Output
Use
Considered as Intermittent Power
Optimized use possible
Operation and Maintenance
High
Almost Negligible
Set-up time
8-10 months
3-5 months
Warranty
5 Years Warranty
25 years warranty
Required Area (Acre / MW)
30-40
4 to 5
Generation cost over life of plant
INR 4-5 / unit
INR 5-6 / unit
Selling Price of Generated Power
INR 4.5 to 6.3 / unit
INR 12.3 to 16.4 / unit
Over all comparison between wind & Solar are shown here, Solar power looks more reliable, predictable, scalable & quick to install.
Considering the REC route the unit selling cost of Power generated by Solar is way higher than Wind. REC trading is applicable for both Wind & Solar.

18. Solar Project ABC!!!

19. Steps for entering into Solar power
Understanding the Scheme / policy under which plant will be set-up
Feasibility Study & Risk Management
Identification of site
Identification of Technology & EPC partner
Project Financing & Execution
Most important part of Solar Energy is to understand under which mechanism you want to set up your plant
Next important thing is Choosing the best technology. There are many alternatives available, with huge price variations, Solar Panel have to last minimum 25 years so the quality is very important, & the technology partner should have a solid track record with history of atleast 25 years.

20. Policies in India for Large Scale Solar Project
There are 3 Schemes available.
1. Under JNNSM by Signing Preferential Tariff PPA with NVVN
2. Under Preferential Tariff PPA with State Government
3. As Independent Power Producer (IPP) in REC Mechanism
Scheme 1 & 2 are time bound, & you can bid for them in a limited period. It brings you in competition with large organizations & hurt your Project returns.

21. Solar Feasibility in India
> 300 Sunny Days in India
> 5-6 KWH/ Sq Meter / Day - Irradiation
Govt Initiatives & Incentives
India is most suitable place for setting up Solar power plants. Compares to UK & Germany Plants installed in India can generate at least 25% more units per year.

22. Risk Management & SWOT Analysis
Strength
•Plenty of Sun Shine in Maharashtra
• REC Benefits
• No raw Material Cost
• India’s solar potential among highest in the World and barely a fraction
of it has been exploited
• There is no pollution or wastage resulting from its use
• Very low Operating and Maintenance costs
• There is no pollution or wastage resulting from its use.
Weakness
• Needs Greater support from Govt.
• Lack of technical supports for remote locations
Opportunity
• Increasing energy requirement of the country
• Reduction of cost expected in future
Threat
• Technological Challenges (Storage facility)
• Lack of cooperation from local DISCOM
These are results of our Risk Management for Solar Power Project, & encouraged us to move ahead with this project.
Though there are some risks, but a strong will & determination will help you sail through them.

23. Identification of Site
Key Parameters of a good site:
Good Solar Irradiance throughout the year (Data from NASA, Meteonorm, MNRE)
Average temperatures throughout the year
First year generation expectations
Proximity to grid
Water availability
Road Connectivity
Load bearing capacity of land
STFI Hazards (Storms, Tempests, Floods, Inundation)
Though Solar irradiance is almost similar all over India, Average temperatures, & proximity of plant to grid is most important as it will help in more generation & minimize the losses.

24. Site Evaluation Results of Sakri
S No.
Description
Sakri 1
Solar Irradiation
5.49 KW/ m2 2
Average Daily temperatures
25-40 deg C 3
Grid Availability
66 KV or above 4
Water Availability
Good 5
Road Connectivity
Excellent 6
1st Year Generation (units)
8,000,000
Just to add here that Sakri site had been rated best site in Maharashtra by Mahagenco & KFW Germany. Mahagenco is establishing a 125 MW solar plant in Sakri.

25. Technology Evaluation
S No.
Evaluation Criterion
Crystalline
Thin Film
Mono
Poly
A-si
CdTe
CIGS/CIS 1
Efficiency (%)
16-18%
14-16%
7-9%
8-10%
10-12% 2
Performance Under Heat (degradation)
5-6%
4-5%
9-10% 3
Required Area (m2 / KWp)
4-5
5-6
8-9
7-8
6-7 4
Output per Year per MW (Indian Climatic Conditions)
1.55
1.65
1.4
1.8
1.5 5
Cost (USD/Watt)
0.85
0.75
0.7
0.8 6
Technology Maturity (Years)
>40
~10-20
~8-10
O&M
Moderate
High 7
Weight(Kg/watt)
0.094
0.16 8
Market Share(%)
30%
60% 7% 9
Payback Period 10
Life
>25
>25 years
Under Evaluation
Thin Film technology is cheaper than Crystalline, but there is no history of its performance over a period of 25 years. Crystalline on the other hand is 40 years old & therefore more reliable. There has been reports from some thin film manufacturers that thin film cannot work well under high temperature countries like India. Thin film generates more power initially but in long term it degrades.

26. Identification of EPC Partner
- Functions throughout technology value chain
Diversified business for 25 year Warranty fulfilments
Has own Solar power plant
Experience & track record
Access to local execution team
It is very important that you know the source of actual ingredients being used in Solar Panels you choose. This will ensure that your module will generate well over a period of 25 years. Once your technology partner is active in whole vertical production chain, then only he will know the quality assurance policy at each stage. 2nd most important is local execution team, as they can speed up your installation process without damaging the equipments during Installation

27. Varroc EPC partner
Inetest Technologies India from Chennai along with Anukul Power Engineers from Aurangabad
Inetest has technology from AUO, a listed company in NYSE, with business in Flat panel displays & Solar.
AUO has Polysilicon & WaferTechnology from Japan while Cell & Modules made in Taiwan & Malaysia.
AUO has own 10 MW roof top project in Taiwan
Anukul Power Engineers has vast experience in Electrical Power Transmission & distribution Erectioning, commissioning in Maharashtra
Anukul has Installed many sub-stations, many
Kms of Transmission line in Maharashtra
Our EPC partner Inetest Technologies along with Anukul Power from Aurangabad is a very good combination for Solar Power Projects.
With Technology Know0how of Inetest & local work experience & contacts of Anukul they complement each other very well.
Pic from AUO Japan plant during Vendor Evaluation

28. Project Financing & Execution
Project Financing to be considered due to unstable INR
ROI & cashflow preparation
Finance available at low interest cost from government & international bodies, but not easy
Identification of Project team
Government Approvals
Approval for Project from concerned body (MEDA for Maharashtra)
Signing of Power Purchase Agreement with Discom (Mahagenco or MSEGCL)
Approval from substation for erection of Transmission line & grid connection
Approval from MNRE for concessional duties
Prepare project execution roadmap & progress monitoring
A proper team has to be established for the project to be successful. All stake holders play very important role in the successful execution of the project. In the project execution process, getting approvals form concerned government bodies is not easy, & can considerably delay the project.

29. Solar System Schematic

30. Other Green Initiatives
Audit for Energy optimization by third parties
Audit for Power Quality improvement by third parties
Installation of Solar Street lights in existing plants
Installation of ABT Meters with 0.2S Accuracy
Use of transparent sheds for day light utilization
Zonewise power utilization
Maintaining of Power factor

31. Way Forward…. Solar parks Solar pumps Solar Car parking
Solar Roof Top Systems
Survey of all plants already done for Roof Top Solar Power Plants
Potential identified of about 2 MW across all plant rooftops including sheds, car parking etc.
To be rolled out in a phase wise manner with 1st phase starting in 2014.
Increase footprint in Ground mounted projects
Double the capacity from current 5 MW to 10 MW by 2018.
Solar Street lights in all production plants
Solar Street light

32. Thank You! M P Sharma sharma.madhusudan@varrocgroup.com

33. Q & A