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BESCOM Experience in promoting Effective Business Models for Solar Rooftop PV in India by S.A. Satish Kumar General Manager, DSM BESCOM at The Lalith,

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Presentation on theme: "BESCOM Experience in promoting Effective Business Models for Solar Rooftop PV in India by S.A. Satish Kumar General Manager, DSM BESCOM at The Lalith,"— Presentation transcript:

1 BESCOM Experience in promoting Effective Business Models for Solar Rooftop PV in India by S.A. Satish Kumar General Manager, DSM BESCOM at The Lalith, New Delhi on 08/04/2015

2  Launching 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  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 GWp State target - 3% of total energy consumption. PREAMBLE

3 SOLAR POLICY

4 Objectives:  Add solar generation of minimum 2000 MW by 2021  To Translate state into an investor friendly state  To encourage PPP in the sector  To promote SRTPV generation and technologies  To encourage decentralized generation and distribution  To promote R&D, Innovations and Skill development in sector.

5  Minimum 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: Segment Utility scale projects Solar RTPV, grid connectivity

6 Utility 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 consumption Capacity fir the period BESCOM48%144 MW MESCOM8%24 MW HESCOM20%60 MW GESCOM13%39 MW CESC11%33 MW

7 Category-2 Projects 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 program Mode of allotment TechnologyMinimum (MW) Through bidding process Solar PV3 Solar Thermal10

8 Category-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 allotment TechnologyMinimum (MW) Maximum (MW) Through ESCOM Solar PV1Based on transmission evacuation capacity Solar Thermal10

9 Category-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 allotment TechnologyMinimum (MW) Maximum (MW) Through ESCOM Solar PVNo limitBased on transmission evacuation capacity Solar Thermal

10 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. Mode of allotment TechnologyMinimum (MW) Maximum (MW) Through ESCOM Solar PV1Based on transmission evacuation capacity Solar Thermal10 Categ ory-5

11 Category-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 allotment TechnologyMinimum (MW)Maximum (MW) Through ESCOM/ HLPAC Solar PVBased on bundled tariff as agreed with power purchaser Solar Thermal

12 Segment - 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.

13 Site 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 LevelRemarks Upto 5kWp240 V/Single phaseAs per KERC guidelines 5 kWp to 50 kWp3 phase/415 V >50kWp11kV

14 Other Initiatives To 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.

15 Other Initiatives Solar 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.

16 Policy 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.

17 Implementation of Solar Rooftop Program in BESCOM Inauguration of SRTPV Program in the state by Energy minister of GoK on

18 GENERAL  Applications are invited form BESCOM consumers of all Residential, commercial, educational institutions, industries establishments others etc.  No limitation on installed solar capacity  Applications invited form minimum 1 kWp to maximum 1 MWp  Applicant can select any system integrator & PV modules.  To purchase BESCOM approved inverters & bi-directional meters only.

19 No. of application received online – 333, 17MW Registered at sub division office- 215, 12 MW

20 List of important SRTPV installations Serviced on Chinnaswamy Stadium400 kWp 2St. Jones college100 kWp 3BESCOM, Corporate Office50 kWp 4Ramana Marshi school of Blind34 kWp 5Smt. Usha Shivakumar (Energy Minister) 18 kWp 6NIAS100 kWp 7Others (Residential)72 kWp Total774 kWp

21 Return on Investment Calculation How good is the investment in Solar Rooftop PV System ? 1-KW2-KW3-KW4-KW5-KW6-KW10-KW 1 Plant CapacitykWp Energy GeneratedkWh/year Energy ConsumedkWh/year Energy ExportedkWh/year Savings in BESCOM BillRs./year Cost of energy exported/yearRs./year Cumulative Returns per AnnumRs./year PrincipalRs SIMPLE PAYBACK PERIOD Years

22 How Solar Rooftop PV System is a better investment than Fixed Deposit? 1-KW2-KW3-KW4-KW5-KW6-KW10-KW 1Plant CapacitykWp Cumulative Earnings from SRTPVS per YearRs./yr Interest for Fixed deposit% Principal, if deposited in BankRs Interest if Principal is deposited in 9 % interest per yearRs./yr Surplus income per yearRs./yr Additional Earnings in percentage%-17%21%34%40%44%63%69%

23 BASIC DATA 1 Basic capacity for Estimate in KWpKWp1 2 Est. Generation/ KWh/DayKWh/day5 3 No of Active Generation Days in a yearDays300 4 Annual generation per kWpKWh/Ann Av. Monthly Domestic energy consumptionKWh100 6 Annual ConsumptionKWh Cost of Energy saved in consumptionRs/ Year Tax%6 9 Total annual saving in electricity billRs./year Escalation of electricity cost/year%4 11 Cost of Energy Exported without subsidyRs./KWh Cost of SRTPV Plant per KWp (without subsidy) upto 5 KWRs./KWp Cost of SRTPV Plant per KWp (without subsidy) for more than 5 KWRs./KWp Plant LifeYears20 15 Expected Returns if deposited in Bank%9

24 Tariff Slab LT2 a(i) Full consm Cons>Gen Other 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

25 Promotion 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.

26 Major 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.

27 Major decision taken in Technical committee:  Empanelment of Grid tied inverter manufacturers  Possibility 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.

28 MOU 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.

29 BESCOM 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 capacity Sl. No. Location SRTPV capacity in kWp LOT 1 1Chitradurga, C, O & M Zonal office, Chitradurga20 2Davanagere, C, O & M Division office, Davengere22 3H.S.R. layout C, O & M Division office, Bengaluru25 4Chandapura C, O & M Division office, Chandapura22 5Chinthamani C, O & M Division office, Chintamani25 TOTAL of LOT-1114 LOT 2 1Jayanagar C, O & M Division office, Bengaluru37 2Banashankari C, O & M S-9 Sub-Division office, Bengaluru25 3Jalahalli C, O & M C-3 Sub-Division office, Bengaluru13 4Mathikere C, O & M C-6 Sub-Division office, Bengaluru30 TOTAL of LOT-2105

30  Surya Raitha Scheme o Govt. has announced “Surya Raitha” a novel scheme on for the welfare of farmers. o 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. o The scheme is proposed for IP sets on the dedicated agriculture feeders. o This is applicable for IP sets < 10 HP. o Promotion of solar pump under net metering concept. o KERC tariff for SRTPV will be adopted. o Net meter will register both import and export energy. o The billing will be settled as per meter readings. o Farmer can avail soft loan from banks and subsidy from MNRE.

31 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 t o 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.

32 Scope of pilot Replace existing 250 IP sets by efficient solar water pumps in the pilot feeder i.e.,:- 180 x 5HP by 180 x 7.2kWp SPV systems 70 x 7.5HP by 70 x 10.8 kWp SPV systems The 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.

33 Key players of the project Karnataka State Government and MNRE: Project sponsors Implementing Agency (BESCOM): Off-taker of feed-in energy and program implementer System Installer: Supplier of net metered solar pump solution Funding 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.

34 Farmers’ 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.

35 The breakup cost is as below: Particulars 5 HP capacity per IP set 7.5 HP capacity per IP set Weighted average cost per pump Total cost for 250 pump programme Pump PV Capacity Oversize factor 1.5x Total system size (kW) Per kW capital cost (Rs/Wp) 102 Total cost of System, Rs. 7,35,00011,03,000 Number of pumps installed GoK Contribution Rs. 58,0001,69,00089,000Rs.2.2 Cr MNRE contribution Rs. 1,62,000 Rs.4.1 Cr Interest free loan from BESCOM 4,64,0007,00,0005,30,00Rs.13.3 Cr Upfront payment by farmer, Rs. 50,00075,00057,000Rs.1.4 Cr TotalRs.21 Cr

36 ABSTRACT For 5 HP IP set – 7.35 x 180 = Rs.1323 lakhs For 7.5 HP IP set – x 70= Rs. 772 lakhs Metering cost – 25,000 x 250= Rs lakhs Miscellaneous = Rs. 2.5 lakhs The approximate project cost= Rs. 22 crores (for 250 IP sets)

37 LOAN REPAYMENT Loan is interest free and term is 15years. EMI for 5 HP is Rs.2,600/- 7.5 HP is Rs.3,900/-

38 BLOCK DIAGRAM

39 Challenges No 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.

40 Inter 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.

41 Major milestones The 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

42 Way 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.,

43 THANK YOU


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