SOLAR POWER DEVELOPMENT – VGF OPTION UNDER JNNSM 1 Dr. Ashvini Kumar Director (Solar) Solar Energy Corporation of India

SOLAR ENERGY CORPORATION OF INDIA  A Government of India Enterprise under the administrative control of MNRE.  Incorporated on 20th September  Under Section-25 of the Companies Act,  “Not for profit” company.  Authorised capital of Rs 2,000 Cores 2

SECI Activities Apart from the mission activities SECI is doing the following projects.  Solar PV power plants.  Solar Mini/Micro Grids  Solar Thermal Power Plants  Solar Water Heaters  Solar Roof-Top Systems  Solar Home lighting and Solar Street lights  Hybrid projects 1. Solar + Gas 2. Solar + Biomass 3. Solar + Hydro/Pump Storage  R&D activities. 3 Broad mandate: Implementing & Monitoring agency of JNNSM from “Concept to Commissioning”

JNNSM Road Map Application SegmentTarget for Phase I ( ) Cumulative Target for Phase 2 ( ) Cumulative Target for Phase 3 ( ) Grid solar power (large plants, roof top & distribution grid plants) 1,100 MW10,000 MW20,000 MW Off-grid solar applications 200 MW1,000 MW2,000 MW Solar Thermal Collectors (SWHs, solar cooking/ cooling, Industrial process heat applications etc.) 7 million sq. meters 15 million sq. meters 20 million sq meters Solar Lighting System5 million10 million20 million 4

 Regulatory measures- RPO/REC  Supporting grid connected projects to bring volumes and reduce prices  Financial support for off-grid  Support R&D in India  Encourage manufacturing  HR development Policy and Regulatory Support 5

Ground Measurement of Solar Radiation Andhra Pradesh6 Gujarat11 Haryana1 Madhya Pradesh3 Karnataka5 Rajasthan12 Chhattisgarh1 Ladakh1 Maharashtra3 Pudducherry1 Tamil Nadu6 C-WET is implementing the project for setting up 51 ground monitoring stations Centralized data collection, analysis and calibration of measuring sensors 6

State Initiatives S. No StateSolar Specific Programme 1.GujaratAnnounced – MW Commissioned – 857 MW 2.MaharashtraCommissioned – 100 MW (includes 40 MW setup in Rajasthan under RPO). Under installation: 150 MW at Sakri/ Dhule 3.KarnatakaCommissioned – 8 MW, Approved plan for 200 MW Bids invited/allotted– 70 MW, Min. tariff – Rs. 7.94/unit Bids to be invited-130 MW 4.RajasthanTendered – 200 MW, 75 MW at Rs. 6.45/Unit awarded 5.OdishaAnnounced -50 MW Awarded – 25 MW, Minimum tariff – Rs. 7/unit

State Initiatives (2) S. No StateSolar Specific Programme 6.Uttar Pradesh Announced – 500 MW till March 2017 (10 yr PPA) First Phase – 200 MW 7.Andhra Pd.Policy announced in November 2012 for 1000 MW (1 – 5 MW, Rs.6.49/Unit) 8.Tamil NaduAnnounced – 3000 MW Tendered-1000 MW Bids received MW (60 MW bids Rs Madhya Pradesh Awarded– 200 MW Minimum tariff – Rs. 7.90/unit (Alpha-20 MW), Rs 8.05/Unit (Welspun – 125MW)

Growth of Solar Capacity (MW) StateMWp % Gujarat Rajasthan Maharashtra Madhya Pradesh Andhra Pradesh Uttar Pradesh Tamil Nadu Jharkhand Karnataka Orissa Punjab Haryana A & N Island Uttarakhand Chhattisgarh Delhi West Bengal Lakshadweep

MNRE Strategy for Phase II 10  Award of capacity to be spread out over Initial two years of plan period as:  It facilitates planning for manufacturers as well as developers  Learning from prior development would be available for subsequent bids  Benefits of cost reduction could be achieved  More states could come up the curve to participate in the process  Maximize chances of achieving targets within desired timelines  Preferably bidding process for allocation of target capacity to end before  Lower dependence on Bundling

Domestic Content – Key for Phase II 11  Development of 4-5 GW of manufacturing capacity is one of the objectives of JNNSM  Current manufacturing capacity (SPV): ~2000 MW (Module)  Cheaper international loans available with imported components  DCR conditions under schemes entailing direct funding support by Central Government could facilitate development of domestic manufacturing capacity base.

Policy Initiatives for Further Growth in Solar Power Capacities Policy hallmark during Phase 1 was bundling of solar power with cheap thermal power Phase 2 envisages to reach 10 GW utility scale solar power capacity by March GW under central scheme and 6 GW under various State specific schemes. Other Schemes are Grid Connected Roof Top Solar PV Power systems CSP Pilot Projects Provision of Viability Gap Funding (VGF) Bundling is subject to availability of unallocated thermal power 12

Draft Features of VGF Scheme  Tariff to be paid to the developer :  Rs.5.45/kWh, fixed for 25 years  10% less viz., Rs. 4.95/kWh for projects availing benefit of Accelerated Depreciation  Payment of VGF  up to 30% of project cost limited to Rs. 2.5 cr./ MW, through competitive bidding.  Developer’s equity  Minimum Rs.1.5 cr./MW  Balance can be raised as Loan. 13

Release of VGF amount  VGF to be released in three tranches- – 25% at the time of delivery of at least 50% of major equipment at site; Weightage:Modules -40% PCUs-20% Switchgear & Transformer-20% Mounting Structures-20% 14

Release of VGF amount  50% on successful commissioning;  Balance 25% after 1 year of commissioning meeting requirements of generation  If during PPA duration of 25 years: – the project fails to function at any time, or – its assets are sold, or – the project is dismantled, SECI will have right to claim assets equal to VGF paid. Legal documentation to be prepared by SECI. 15

Min. & Max. Capacity  Min. Capacity of each project – 10 MW  Max. capacity – 50 MW  Max. 3 projects at different locations by one developer, subject to a max. of 100 MW. Capacity will be the AC output at the project bus bar located within project premises. 16

Grid connectivity  Inter-connection with Transmission network of STU/CTU/any other Utility at level of 33 KV or above.  Developer to submit along with Bid a letter from STU / CTU/ Transmission Utility confirming technical feasibility of connectivity of plant to substation.  Transmission of power up to interconnection point where metering is done for energy accounting, to be responsibility of Developer at own cost. 17

Grid connectivity (contd.)  Option of Pooling Point where more than one SPV projects may connect  Common Transmission Line (CTL) to further connect Pooling Point to the Interconnection/Metering point. CTL to be built and operated by the developer/any third party/by STU on behalf of developer.  Metering to be done at the Interconnection Point along with subsidiary meters at the Pooling Point to determine the generation by each project. 18

Tentative Schedule No.EventDate 1 Request for Selection (RfS) noticeMay Receipt of applications against RfS 1 st Week June Short-listing of projects based on applications received and evaluation of bids Mid August Issue of Letter of Intent (LOI)1 st Week Sept Signing of PPA1 st Week Oct Financial ClosureBy April Commissioning of projectsBy December

Pilot Solar Thermal Power Projects JNNSM document envisages setting up pilot projects to address issues related to optimization and use of improved/advanced technology options - Advanced technology configurations which could lead to cost reduction through higher efficiency and CUF, and scale effect - Reduction in water consumption and footprint land area in solar thermal projects - Potential for replication in commercial projects soon after success of demonstration projects - Potential for indigenous manufacturing MNRE constituted a multi-stakeholders Group in January 2011 to discuss and suggest technology configurations

Project Configurations and Sites Based on recommendations of the stakeholders group and site visits by experts, identified pilot projects to have the following configurations: Project ConfigurationIdentified sites and Broad Specifications With hybrid cooling Reduced (<= 30%) consumption of water Bhadla (Rajasthan) Available Land Area: 150 ha Capacity: 40 MW est. CUF: 29% est. High operating temperature (>=500ºC) Higher efficiency Charanka (Gujarat) Available Land Area: 140 ha Capacity: 35 MW est. CUF : 30% est. Large thermal storage (about 8 hours) Terkuveerapandiyapuram (Tamil Nadu) Available Land Area: 160 ha Capacity: 25 MW est. CUF : 45% est. Large thermal storage Base load Nennala (Andhra Pradesh) Available Land Area: 160 ha Capacity: 20 MW est. CUF : 65% est.

Project Details  Solar Energy Corporation of India to implement the project  Target tariff of solar power – Rs 5.83/ Unit for 25 Years  Project selection through ICB for viability gap funding  Framework of Support  At least 20% of the project cost to come as equity from the project developer.  Debt portion could comprise of at the most 50% of the project cost from CTF / ADB;  The maximum amount of VGF would be upto 40% of the project cost.  Estimated project cost = Rs. 2,555 Crore  NCEF Committee Chaired by Expenditure Secretary approved the project with Rs crore of support

Roof Top Solar PV Power Projects  Grid connected Rooftop Projects to be supported by grant as capital subsidy for self consumption of Solar Electricity and feeding extra power to grid whenever available.  Basic aim is to mitigate consumption of diesel.  The scheme is implemented in two modes, viz., Capital 30% of project cost, and RESCO mode with some grant and a provision of tariff from the consumer.  Scheme is implemented by SECI through competitive bidding in select cities.  Project size to be 100 kW to 500 kW, however, aggregation of capacity from smaller projects is allowed.  Balance cost is to be met by the consumer.  Grid connectivity and metering is to be in accordance with CEA guidelines or SERC’s regulations.

Status of Implementation Phase-I already started with the following allocations:  Chennai – 2 MW  Bangalore – 2 MW  Delhi – 1 MW  Gurgaon – 0.5 MW Phase-II: Bids invited for a capacity of 11.1 MW:  Jaipur – 3.1 MW  Bhubaneswar – 1 MW  Hyderabad – 2 MW  Gurgaon – 1.5 MW  NOIDA/ Gr. NOIDA – 1.5 MW  Raipur – 2 MW

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