Presentation on theme: "END TO END ENERGY SOLUTIONS WORKSHOP – TELECOM Tuesday , 25th Nov 2014"— Presentation transcript:
1 END TO END ENERGY SOLUTIONS WORKSHOP – TELECOM Tuesday , 25th Nov 2014 Ashok JunejaFounder AJ TELECONSULTING& Chief Advisor, Applied Solar Technologies
2 Applied Solar Technologies rolled out its first solar RE solution in February 2007 Since then AST has become India’s largest ESCO with over 3000 installations for the telecom sites, over 300 for ATM machines and over 80 petrol stationsPast six years have been full of learningDiesel is the most expensive solution both economically and environmentally and it is the solution used exclusively when there is no other solutionWe all strive to reduce diesel consumption to as little as possiblePower requirements for Telecom have a very high degree of uptime requirement (no more than 20 seconds of downtime in 24 hours) which makes the total cost of power very highFurthermore this uptime can only be achieved with multiple sources of power and delivery of power as a serviceAny solution to reduce diesel consumption is very capital intensive and so we must balance customer needs with the IRR needs of the investors and risk mitigation needs of the lenders – without this balance there is no business possibleLong term contracts become a necessity for capital intensive businesses
4 Types of Services Offered Solar Hybrid end-to-end energy as a service: ATC/BIL/Indus/IdeaEnergy Efficiency on a Cluster Basis: MTSPilot Project with Social Foundations: Rural MicrogridSolar without diesel end-to-end energy as a service: SBI/PNB/BOBAll services offered under opex model backed by full SLA needed by our customers
5 Telecom Customer Needs .. Our Experience Customers demand 99.95% uptime even in most difficult rural areas where the cost of this uptime is very high –But it is hard to justify the cost of this expensive uptime requirementCustomer demand heavy diesel reduction (the carbon footprint reduction)Customers want all the equipment O&M (SMPS/PIU/AC/battery/DG etc) so that there is one point of responsibility but lenders are apprehensive of such deliverablesCustomers want “cluster” model so that ESCO can take care of both RE and non-RE sites
6 ESCO Company on the other hand needs to satisfy its investors and lenders Investors and lenders participate only ifFund requirement is large (large orders year over year) of at least 1000 towers per customerMinimum 10 year take or pay contracts with no on-demand exit clausesCommercial terms which meet several cash flow criteria of lendersIRR at least as per industry normALL PARTIES (CUSTOMERS, ESCOS, and INVESTORS and LENDERS) will have a win-win only ifAll parties understand each other’s requirements and are willing to compromiseContract sanctity is maintained at all times
7 Support required at the Policy level Provide RESCO/ESCO industry Infrastructure status so that the cost of credit comes downRemove any entry tax on RE equipment and solutionsAccess to soft loansPermit blending of grid/DG/Solar/other Res power as an integrated source of energy as a service solution. Current regulations do not permit sale of grid powerRE in distributed, high uptime, cannot be sold in terms of KWH but it has to be offered as a service – this recognition is important to understand the total cost of doing business
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