Presentation on theme: "by S.A. Satish Kumar General Manager , DSM BESCOM"— Presentation transcript:
1BESCOM Experience in promoting Effective Business Models for Solar Rooftop PV in India byS.A. Satish KumarGeneral Manager , DSMBESCOMat The Lalith, New Delhion 08/04/2015
2PREAMBLELaunching of JNNSM in January 2010 by GOI has opened the flood gate for Solar sector in India.Karnataka was the first southern state to introduce solar policy - I in 2011.First state to commission utility scale solar project in India. The state revised its solar policy on in order to add on capacity, and to have energy security and sustainability.State is blessed with 240 to 300 sunny days with good solar radiation of 5.4 to 6.2 kWh / mts /day.Assessment of solar potential - 20 GWp.Moderated potential - 10 GWpState target - 3% of total energy consumption.
4Objectives: Add solar generation of minimum 2000 MW by 2021 To Translate state into an investor friendly stateTo encourage PPP in the sectorTo promote SRTPV generation and technologiesTo encourage decentralized generation and distributionTo promote R&D , Innovations and Skill development in sector.
5Minimum targets proposed The Govt. proposes to achieve minimum of 3% of solar energy out of total energy consumed by installing solar plants in a phased manner as below:SegmentUtility scale projects350150Solar RTPV, grid connectivity100-
6Utility scale grid connected SPV/CSP projects KREDL is the nodal agency for implementing the following projects.Category-1: Projects to promote distributed generation by land owning farmers throughout the state (1 to 3 MW).The capacity allocation for ESCOM is as below:ESCOMs% of total annual energy consumptionCapacity fir the periodBESCOM48%144 MWMESCOM8%24 MWHESCOM20%60 MWGESCOM13%39 MWCESC11%33 MW
7Category-2Projects selected based on competitive bidding process for capacities more than 3 MW.The minimum project capacity allocation to each solar power product for the grid connected solar power plants will be as follows:The capacity plant under this category exclude capacity under JNNSM programMode of allotmentTechnologyMinimum (MW)Through bidding processSolar PV3Solar Thermal10
8Category-3 Project under REC Mechanism. Under this mechanism solar energy generators can sell electricity to ESCOMs at APPPC (Average Pooled Power Purchase Cost) as determined by KERC.The minimum and maximum project capacity allocation to teach solar power producer for the grid connected solar power plants will be as follows:There is no limit for cumulative capacity under this category.Mode of allotmentTechnologyMinimum (MW)Maximum (MW)Through ESCOMSolar PV1Based on transmission evacuation capacitySolar Thermal10
9Category-4 Projects under Captive/Group captive generation. The project developer is allowed to avail RECs in compliance with KERC regulations.The wheeling and banking charges and cross subsidy are as per KERC guidelines.The minimum and maximum project capacity allocation to teach solar power producer for the grid connected solar power plants will be as follows:There is no limit for cumulative capacity under this category.Mode of allotmentTechnologyMinimum (MW)Maximum (MW)Through ESCOMSolar PVNo limitBased on transmission evacuation capacitySolar Thermal
10Category-5 Category - 5 Projects under Independent Power Producers. Power plants put up for sale of power to third party constitute this category.Projects under this category are not eligible for availing RECs.The minimum and maximum project capacity allocation to teach solar power producer for the grid connected solar power plants will be as follows:There is no limit for cumulative capacity under this category.Category-5Mode of allotmentTechnologyMinimum (MW)Maximum (MW)Through ESCOMSolar PV1Based on transmission evacuation capacitySolar Thermal10
11Category-6 Projects under Bundled power. State encourages providing solar power bundled with thermal power.The minimum and maximum project capacity allocation to teach solar power producer for the grid connected solar power plants will be as follows:Mode of allotmentTechnologyMinimum (MW)Maximum (MW)Through ESCOM/HLPACSolar PVBased on bundled tariff as agreed with power purchaserSolar Thermal
12Segment - 2:Grid connected solar rooftop projects and metering The Gok shall promote grid connected solar rooftop projects on public building, domestic, commercial and industrial establishments though net metring and gross metering methods based on tariff orders issued by KERC from time to time.Net metering: Net metering arrangements are proposed (at multiple voltage levels) to focus on self-consumption of energy generated from rooftop PV. The concept is a combination of captive consumption and exchange of power with the utility.For SRTPV system gird tied on a net basis, the surplus energy shall be paid as per tariff determined by KERC.Metering shall be compliance with the CEA.ESCOMS shall define specific guidelines on the standards for connectivity to network.MNRE subsidies shall be through the nodal agency.The Meter reading taken by ESCOMs shall form the basis for commercial settlement.
13Site requirement & Inter connection voltage The project site/installation location decided based on roof space and usable area for installation of SRTPV.Approved export/import meter shall be installed for net metering purpose.Interconnection voltage:System CapacityVoltage LevelRemarksUpto 5kWp240 V/Single phaseAs per KERC guidelines5 kWp to 50 kWp3 phase/415 V>50kWp11kV
14Other InitiativesTo amend building by laws in respect of FAR (Floor Area Ration) in co-ordination with BBMP/local bodies and urban development department to exempt FAR in respect of additional floor area created under solar PV panels with light roofing.Solar Off-grid and Decentralized Distributed Generation (DDG):To provide access to electricity where transmission and distribution systems are difficult to establish, solar powered off-grid solutions are encouraged.To encourage options like solar street lights (through local bodies), rooftop SPV systems with battery storage (through ESCOMs and NGO’s) and others in both rural and urban areas for the purpose of reducing dependency on grid.Focus on Solar powered IP sets: To provide energy security to farmers during day time use of solar power pumps is encouraged, as the energy consume by IP sets is 33% of total energy.
15Other InitiativesSolar Park: Utilize waste land for development of solar park and for power generation.Promotion of distributed generation through small solar parks:Govt. to promote solar park with area less than 100 acres through PPT model with financial assistance of Rs.1 Cr. in the backward districts.Promotion of integrated solar parks:Private participation by providing “plug and play” options for developers.To create private land banks owned by farmers/group of farmers/ associations for development of solar projects and long terms lease upto 30 years.Grid tied canal corridor projects:Deployment of grid connected projects on canal corridor by water resources department on pilot basis subject to purchase of energy by ESCOMs.Grid connected “solar with other renewable hybrid projects”:To encourages such projects with minimum 25% of overall generation coming from respective generation sources shall be promoted through this policy.
16Policy initiatives:To bring in all HT consumers with connected load of < 50 kVA under SPO (Solar Purchase Obligation).To amend section 95 of Land Reforms Act for deemed conversion of land for solar projects.To empower DCs to approve purchase of agricultural lands U/S 109 of Land Reforms Act for development of solar projects.
17Implementation of Solar Rooftop Program in BESCOMInauguration of SRTPV Program in the state by Energy minister of GoK on
18GENERALApplications are invited form BESCOM consumers of all Residential, commercial, educational institutions, industries establishments others etc.No limitation on installed solar capacityApplications invited form minimum 1 kWp to maximum 1 MWpApplicant can select any system integrator & PV modules.To purchase BESCOM approved inverters & bi-directional meters only.
19No. of application received online – 333 , 17MW Registered at sub division office- 215, 12 MW
20List of important SRTPV installations Serviced on 06.04.2015 Chinnaswamy Stadium400 kWp2St. Jones college100 kWp3BESCOM, Corporate Office50 kWp4Ramana Marshi school of Blind34 kWp5Smt. Usha Shivakumar(Energy Minister)18 kWp6NIAS7Others (Residential)72 kWpTotal774 kWp
21Return on Investment Calculation How good is the investment in Solar Rooftop PV System ?1-KW2-KW3-KW4-KW5-KW6-KW10-KW1Plant CapacitykWp2345610Energy GeneratedkWh/year15003000450060007500900015000Energy Consumed1200Energy Exported3001800330048006300780013800Savings in BESCOM BillRs./year4592Cost of energy exported/year286817208315484588860228745681319287Cumulative Returns per Annum746021800361405048064820791601365208PrincipalRs.1000002000003000004000005000005400009000009SIMPLE PAYBACK PERIODYears22.214.171.124.126.96.36.199
22How Solar Rooftop PV System is a better investment than Fixed Deposit?1-KW2-KW3-KW4-KW5-KW6-KW10-KW1Plant CapacitykWp2345610Cumulative Earnings from SRTPVS per YearRs./yr74602180036140504806482079160136520Interest for Fixed deposit%9Principal, if deposited in BankRs.100000200000300000400000500000540000900000Interest if Principal is deposited in 9 % interest per year9000180002700036000450004860081000Surplus income per year-154038009140144801982030560555207Additional Earnings in percentage-17%21%34%40%44%63%69%
23BASIC DATA1Basic capacity for Estimate in KWpKWp2Est. Generation/ KWh/DayKWh/day53No of Active Generation Days in a yearDays3004Annual generation per kWpKWh/Ann1500Av. Monthly Domestic energy consumptionKWh1006Annual Consumption12007Cost of Energy saved in consumptionRs/ Year43328Tax%9Total annual saving in electricity billRs./year4591.910Escalation of electricity cost/year11Cost of Energy Exported without subsidyRs./KWh9.5612Cost of SRTPV Plant per KWp (without subsidy) upto 5 KWRs./KWp10000013Cost of SRTPV Plant per KWp (without subsidy) for more than 5 KW9000014Plant LifeYears2015Expected Returns if deposited in Bank
24Tariff SlabLT2 a(i)Full consmCons>Gen2.7030814.00702801005.252006.25Other Benefits:1. The plant continues to generate after Payback Period also which leads to substantial financial gain.2.Generation of renewable energy reduces Greenhouse Gas emission and protects environment
25Promotion of SRPTV : BESCOM has formed following committee of members drawn from various field who have expertise domain knowledge in the field of solar.PROCESS COMMITTEE: To finalize the process right from registration of applications online and up to last mile of grid connectivity.TECHNICAL COMMITTEE: To finalize standards, specification, safety etc., challenges if any.
26Major decision taken in process committee: Facilitating payment gateway for On-line applicants.Simplifying SRTPV procedure to speedup approval for SRTPV applicants.Creation of Solar help desk at corporate office level with dedicated landline and -id.Deletion of On-line applications with 15 days from the date of submission, for those applicants who has not paid application fee at sub-division office.Arrangement of National level workshop cum seminar in Bangalore to capture large no. of system integrators/ PV module / inverter manufacturers etc.
27Major decision taken in Technical committee: Empanelment of Grid tied inverter manufacturersPossibility of using one time standard approved drawing by CEIG instead of insisting on approved drawings for every SRTPV installations.Upto 10 kWp, AEE sub-division office is the inspecting authority, above 10 kWp, CEI of Gok is the inspecting authority.Formulating the general procedure for grid connectivity issues.
28MOU with GERMI:Entered in to MOU with GERMI on 12/1/15 for training of technicians in the field of SRTPV.BESCOM training of its field staff:BESCOM is conducting 2 days workshop to impact training on SRTPV for all the field engineers of entire state by inviting experts in the field of solar.
29BESCOM projects under pipeline: A Tender floated for installation of SRTPV plants on 9 numbers of various BESCOM offices.Amount put to tender is 2.19 crore for 210 KWp.AMOUNT PUT TO TENDER IS Rs Crore of 210 kWp capacitySl. No.LocationSRTPV capacity in kWpLOT 11Chitradurga, C, O & M Zonal office, Chitradurga202Davanagere, C, O & M Division office, Davengere223H.S.R. layout C, O & M Division office, Bengaluru254Chandapura C, O & M Division office, Chandapura5Chinthamani C, O & M Division office, ChintamaniTOTAL of LOT-1114LOT 2Jayanagar C, O & M Division office, Bengaluru37Banashankari C, O & M S-9 Sub-Division office, BengaluruJalahalli C, O & M C-3 Sub-Division office, Bengaluru13Mathikere C, O & M C-6 Sub-Division office, Bengaluru30TOTAL of LOT-2105
30Surya Raitha SchemeGovt. has announced “Surya Raitha” a novel scheme on for the welfare of farmers.The scheme promotes for harnessing solar power by installing SPV panels in the farmers land to run IP sets and feed-in excess energy to grid.The scheme is proposed for IP sets on the dedicated agriculture feeders.This is applicable for IP sets < 10 HP.Promotion of solar pump under net metering concept.KERC tariff for SRTPV will be adopted.Net meter will register both import and export energy.The billing will be settled as per meter readings.Farmer can avail soft loan from banks and subsidy from MNRE.
31Pilot: Benefits of the scheme Reduction in realizing of subsidies by Govt. to ESCOMs.Reduction in peak load and energy consumption.Assured quality of power supply to farmers during day time.Improvement in water table.Reduction in green gas emissions and global warm issues.Assured income to the farmers apart from income earned through crops.Pilot:To implement “Surya Raitha” scheme a pilot project is proposed.F-2 feeder from Harobele station (Kanakapura taluk in Ramanagara district) is identified and selected.
32Scope of pilotReplace existing 250 IP sets by efficient solar water pumps in the pilot feeder i.e.,:-180 x 5HP by 180 x 7.2kWp SPV systems70 x 7.5HP by 70 x 10.8 kWp SPV systemsThe PV capacity over size is done by 50% to enable a self sufficient systems that can pay for itself.To install bi-directional meters for measurement of import and export energy.To keep feeder on from 6am to 6pm during day time for injecting excess energy to the grid.Normally 66% of energy is fed to the pump and 33% to the grid.
33Key players of the project Karnataka State Government and MNRE:Project sponsorsImplementing Agency (BESCOM):Off-taker of feed-in energy and program implementerSystem Installer:Supplier of net metered solar pump solutionFunding Agency:In the pilot program, the implementing agency (BESCOM) will directly lend to a farmer’s co-operative to enable them in funding the capital cost of the program.
34Farmers’ Co-operative Farmers’ co-operative consisting of all beneficiaries on the Harobele F2 feeder will be created.The role of the co-operative will be:To work with BESCOM in order to educate and enroll farmers into the program.To facilitate collection of the initial contribution from farmers in conjunction with the implementing agency (BESCOM).To receive a loan from BESCOM and fund the program.To monitor farmer compliance with the program and check illegal use/activity.To administer enrollment of new pumps into the program.To receive on behalf of member farmers, monthly payments from BESCOM for exported energy.To disburse the same to BESCOM against the loan amount raised to fund the program.To disburse to individual farmers on generation based incentive.This function will be automated through the use of an ESCROW structure and the co-operative will only perform a figurative role.
35The breakup cost is as below: Particulars5 HP capacity per IP set7.5 HP capacity per IP setWeighted average cost per pumpTotal cost for 250 pump programmePump PV Capacity4.87.2Oversize factor1.5xTotal system size (kW)10.8Per kW capital cost (Rs/Wp)102Total cost of System, Rs.7,35,00011,03,000Number of pumps installed18070GoK Contribution Rs.58,0001,69,00089,000Rs.2.2 CrMNRE contribution Rs.1,62,000Rs.4.1 CrInterest free loan from BESCOM4,64,0007,00,0005,30,00Rs.13.3 CrUpfront payment by farmer, Rs.50,00075,00057,000Rs.1.4 CrTotalRs.21 Cr
36ABSTRACT For 5 HP IP set – 7.35 x 180 = Rs.1323 lakhs Metering cost – 25,000 x 250= Rs lakhsMiscellaneous = Rs. 2.5 lakhsThe approximate project cost = Rs. 22 crores(for 250 IP sets)
37LOAN REPAYMENT Loan is interest free and term is 15years. EMI for 5 HP is Rs.2,600/-7.5 HP is Rs.3,900/-
39ChallengesNo cap on SRTPV generation compared to sanctioned load as per KERC tariff.When the ratio of solar generation power wrt sanctioned load exceeds a certain load, net meter concept is defeated.In a complex/building of more than 10 installations, consumer may connect to a meter which is recording minimum units or make it dummy.Enjoy feed-in tariff instead of net meter tariff of Rs When the ratio of Export v/s Import energy excess more than 90%.For SRTPV > 50kWp consumer needs to install isolating step up transformer as interconnection point is on 11kV, which increases transformer loss.
40Inter connection issues when generation is more than 50 KW (For LT consumers). Space constraints for installation of DTC.Up gradation of distribution net work.Power quality concerns of the utilities.Measurement of harmonics generated and injected in to the grid.Billing procedure for SRTPV generators.Settlement of bills and refund issues in case of export.
41Major milestonesThe Hon’ble CM of State will inaugurate state’s first 1 MW solar power project on Almatti right bank canal.Country’s first Cricket Stadium to go for SRTPV of 400 kWp.Surya Raitha scheme is the first pilot project of nature to be launched in the state.State in the first to go for net metering with attractive tariff of Rs.9.56
42Way Forward Empanelment of facilitators: Create awareness among consumers.Assist in project planning.Facilitation in installation.Post installation support.Web based application and helpline to assist prospective consumers.Other promotion:Working with World Bank to promote SRTPV.Examining ESCROW models for developers to install on rooftop of owners.Working with financial institutions.Promotion through Media, Radio, TV etc.,