1. SPV Power Technology in India
Satyendra Kumar
Lanco Solar, India
ASEAN-India
Workshop on Cooperation in New and Renewable Energy
05-06 Nov., 2012
Vigyan Bhawan, New Delhi

2. Agenda Power Sector in India – Role Solar Can Play
India’s Current Solar PV Installation Base
SPV Technologies
Lessons Learned
Conclusions

3. India – Electricity Opportunity
Source: World Bank, CEA
Source: EIA, CEA
India has a huge gap to fill in terms of capacity installations to cater to demand by 2020
India records very low levels of Energy per capita globally and this will change dramatically, very fast.
Disposable Income / GDP is a good indicator to rise in energy demand
Source: D&B Industrial Research Service
India per capita Electricity Consumption is lagging well behind World Average and this would catch up fast owing to rising levels of Disposable Income
An average of 16 GW of power generation capacity installations required each year till 2020 to meet fast growing demand for electricity power

4. India has huge potential for solar power deployment
Solar Power Density in India
Source
*Potential (MW)
Installed (MW)
as on Jan’12
Wind Power
45,000
16,179
Biomass
16,000
1142
Small Hydro
15,000
3300
Cogeneration-Bagasse
3,500
1952
Waste to Energy
2,700 74
Solar
Unlimited
481
Source: * MNRE - Development of Conceptual Framework for REC Mechanism
Solar installed capacity – India
India receives on an average 4-7kWh/m2 of solar energy daily with an average of sunny days in a year
Rajasthan and Gujarat receive maximum radiation in the range of 6–6.6 KWh per square meter
Cumulative grid connected Installed solar power capacity is quite low in India
Accounting for a negligible proportion of India’s power capacity
Capacity additions in Indian solar industry have been miniscule as compared to the additions globally
India yet to optimally utilize its solar potential
Grid connected Solar Power
(Cumulative Capacity)
1,035 MW
Additions during last year (FY12)
446 MW
Off-grid Solar PV plants
85 MW
Solar Water Heating – Collector Area
5.63 Mn Sq. m
Source: MNRE, Edelweiss Research (As at June30, 2012

5. India Poised to be a Major Global Contributor
Global Solar Market Outlook
India, USA rapidly advancing; EU slow and steady
USA :
Continues to grow rapidly with a 300 MW in Arizona receiving approvals. Expected to remain the largest solar market in world in near future
India :
Rapid growth seen in high potential solar states of Rajasthan and Gujarat. Gujarat launches Asia's largest solar park of 600 MW
China :
Many large-scale plants commissioned. Hit by oversupply in the international export market
Italy, Spain, Germany :
Affected by the sovereign debt crisis and a weak future economic outlook of the Euro
Rank
Country
Installed capacity (GW) in 2011
Solar Power Target
Clean Energy Target
Key incentives 1
USA
4.6
2020 :~ 16 GW
17%
Production / Investment tax credit 2
India
0.5
2022 : 22 GW
15.90%
FiTs, REC, Capital subsidy 3
China
3.0
2015 : 9 GW
2020 : 50 GW
15% of primary energy
Feed-in-Tariffs (FiTs), GBI for rooftop an biding installed PV, Tax incentive for PV 4
Italy
12.4 NA
FiTs, REC, Tax incentive 5
Spain
5.3
2020 : 8-9 GW
20%
REC, Tax incentive 6
Australia
1.3
20% of total consumption
Generation Based Incentive (RBI), Renewable Energy Certificate (REC) 7
Japan
5.0
2020 : 28 GW
22% 8
Germany
25.0
2020 : GW
35%
(50% by 2030, 65% by 2040, 80% by 2050)
Source : Industry Research, Ernst & Young Report on Renewable Energy Country Attractiveness indices
E&Y Solar energy attractiveness Index : India ranked 2nd in the world – only behind USA

6. Strong National Policy Initiatives at the Centre (JNNSM)
Jawaharlal Nehru National Solar Mission (JNNSM)
Comprehensive framework for development of solar power in India
Covers both solar power generation as well as manufacturing
Incorporates specific fiscal / monetary incentives
Objectives
Installed solar power generation capacity of 20 GW by 2020; 100 GW by 2030 and 200 GW by 2050
To achieve grid parity by 2020
To achieve parity with coal-based thermal power generation by 2030
4-5 GW of installed solar manufacturing capacity by 2017
20 mn solar lighting systems for rural areas by 2022
Institutional Arrangement to support bundling of Solar Power
State Government
(Land, Water, Other Sanctions)
Central Electricity Authority
(Technical Support)
CERC
Determines Tariff
Solar Power Developer
1 kWh Solar
NTPC Vidyut Vyapar Nigam (NVVN)
Buys → Bundles → Sells
State Electricity Boards
(Buyers of bundled power)
National Thermal Power Corporation (NTPC)
4 kWh Thermal
Bundled 5 kWh at INR 4.17/kWh
Note : Rates for SPV and ST based on average bidding tariff. The above rates expected to be achieved on commissioning of all power plants by May 2013 6

7. Asia’s largest solar park
Among the states, Gujarat – Leading the Way
Gujarat
First state to launch an independent solar policy in 2009.
Policy operative till 2014.
PPAs of 969 MW signed. The projects allocated through the MOU route with pre-qualification criteria
Projects of 690 MW commissioned till 30th June, 2012.
Asia’s largest Solar Park – The Charaanka Solar park in Patan district of Gujarat inaugurated in April, 2012
An energy surplus state. Does not need to allocate more projects to fulfill its RPO obligations
Gujarat Energy Development Authority (GEDA) provides assistance in identification of suitable locations, facilitation in arranging Right of Way & recommending the project
High investor confidence –
More than 1000MW of projects have pre-registered for future allocations
Applications worth 1715 MW received for allocation of 150MW
Banaskantha
Asia’s largest solar park
Patan
Surendra Nagar
Tariffs
PV project
(Rs. /kWh)
Thermal projects
Projects commissioned before
15 (for first 12 years)
10 (for first 12 years)
5 (from 13th to 25th year)
3 (from 13th to 25th year)
Projects commissioned after
12 (for first 12 years)
9 (for first 12 years)

8. …And other states following suit
Particulars
Karnataka
Rajasthan
Madhya Pradesh
Tamilnadu
Orissa
Policy instrument
Karnataka Solar Policy,
Rajasthan Solar Energy policy,
MP Solar Energy Policy
TN Solar Energy Policy 2012
Target Capacity
200 MW - DISCOMS upto (40 MW p.a.)
50 MW - Thermal
100 MW - REC mechanism
50 MW SPV; 50 MW ST
DISCOMS
Phase I (upto 2013) -200MW
Phase II ( ) - 400MW
10 MW : MNRE
200 MW SPV announced
3000 MW by 2015, including rooftop
1500 MW utility scale by 205
50 MW SPV in announced
Capacity Cap
SPV : Min 3 MW, Max 10 MW ST : Min 5 MW
SPV : Min 5 MW, Max 10 MW ST : Min 5 MW, Max - 50 MW
SPV : Min 5 MW
 NA
 25 MW
Sale of Energy under state policy
Reverse bidding
Ceiling tariff : SPV : INR / kWh ST : INR / kWh
Ceiling Tariff : SPV : INR / kWh
Ceiling Tariff : SPV : INR / kWh
Lowest bidder offered entire 25 MW
Operational :
State Policy
JNNSM, Phase I Batch I
Migration scheme
RPSSGP through IREDA
14 MW -
25 projects : 125 MW 8 projects : 37.5 MW 10 projects : 10 MW
1 project : 5 MW
7 projects : 7 MW
Bids awarded under state policy / other schemes
80MW under State Policy
30 MW - 30 months of PPA;
50 MW - 18 months of PPA
817 MW - REC mechanism
100 MW - NTPC – Bundled
Last date for submission of RfS for 200 MW postponed indefinitely
200 MW under State Policy
Expected allocation of 1000MW in 2013
25 MW
Source: MNRE, State Nodal Agencies, Research Reports

9. Electricity Consumption (Bn units)
Solar RPOs Pushing the Frontiers Further
The solar power purchase obligation for the States start with 0.25% in phase 1 (FY ) and go up to 3% by FY 2022
Installed solar capacity by FY 2022 estimated at 38 GW
State
Electricity Consumption (Bn units)
Equivalent Solar Installation capacity (MW) RPPO 3% (FY 22E)
FY13E
FY 22E
Andhra Pradesh
89.0
175.6
Chhattisgarh
21.8
45.1
Gujarat
85.4
156.8
Haryana
38.4
73.8
Jharkhand
23.4
51.7
Karnataka
53.5
107.5
Madhya Pradesh
49.3
99.0
Maharashtra
125.7
219.9
Orissa
27.2
63.1
Punjab
60.5
104.3
Rajasthan
48.9
96.4
Tamil Nadu
87.2
182.8
Uttar Pradesh
79.3
150.2
West Bengal
41.0
84.5
Total
968.7
1,914.5
38,290 MW

10. Total Grid Connected Installed Capacity Map – India
as on Oct 2012
*Source: MNRE and Bridge to India: Solar Compass: Oct 2012

11. Solar Photovoltaics (SPV)
Solar – Knowledge base and Technology
Solar Resource Assessment (GHI, DNI) :
Satellite Based Estimates & Ground Measurements
Solar Photovoltaics (SPV)
Technology PV production – whole value chain
Equipment PV production – whole value chain
Grid Connected Solar Farms – EPC, Inverters, Monitoring Systems
Engineering
Risk Assessment and Insurance
Financing
Grid Extension, Availability and Stability

12. What are various SPV technologies ?
c-Si
Thin Films
Mono /
Single-Crystal
Multi /
Poly Crystal
Amorphous Silicon
CdTe
CIGS
Organic
a-Si
(single Junction)
Tandem /
Micromorph/
Double Jn/
Triple Jn
18-23% %
~6-8%
~9-10%
~11%
~12%
~5% ?

13. Global Production: Technology Mix

14. GOVT OF INDIA – DOMESTIC SOLAR MFG ASPIRATIONS
Upstream
Mid Stream
Down Stream
Polysilicon
Ingot/
Wafer
Cells
Modules
System Integration
Decentralised Application
Sand
Indian Solar Market demand is growing to be 1GW/yr by next year; and is set to increase further thereafter, due to Grid Parity achievement
To cater to the Indian market demand following manufacturing capacities are required:
Indian Solar PV Manufacturing
NSM Goal : 2 GW / yr Domestic Mfg by 2020
Existing / Under Constr Indian Capacities
Remarks
Polysilicon
12,000 T/yr
1,800 T/yr (constr)
Lanco
Ingots & Wafers
2,300 MW/yr
300 MW/yr (constr)
Lanco, Birla Surya
Cells
2,200 MW/yr
1,010 MW/yr
Indosolar, Jupiter, BHEL, Websol, Tata, Moserbaer, EuroMultivision, BEL, CEL, SolarSemi
Modules
2,000 MW/yr
1,900 MW/yr
More than 40 companies

15. PV Technology wise status (JNSM)
c-Si cells and Module to be manufactured domestically
c-Si Module to be manufactured domestically
JNSM –Phase I (Batch-1): 150 MW
Phase I (Batch-2): 350 MW (Anticipated)
Cheaper Financing Options decide the technology options – Equipment comes with funding

16. Technology share in Gujarat & leading financiers
Cheaper Financing Options decide the technology options – Equipment comes with funding

17. Technology Vision for the PV Future
What technology is needed
What is needed to develop that technology
What challenges it would involve to get commercialized
Who needs the PV technology
For what?
Where/When does one need it

18. Who needs Solar ?

19. Who needs Solar ? For What?

20. A Systems Approach Top-down Approach – Grid Centric
Bottoms-up Approach – Off Grid, Needs Specific Solutions

21. Frugal Engineering – Tata Nano
Photovoltaic Systems
PV Panels: high efficiency at low cost !
Inverters: Long Life time ?, Higher efficiencies, Tropicalized, more intelligent
Variability of Solar Resource
- Storage solutions: Batteries, Ultracapacitors,….
Power electronics – Load Specific
Transport of power – Availability and Stability of Grid
Frugal Engineering – Tata Nano

22. Lessons Learned : Lack of reliable radiation data
Challenges Faced currently
Move towards building Solar Radiation Atlas
Project developers have to rely on satellite information from sources like NASA, NREL, etc
Uncertainty surrounding the generation potential at site. Different solar radiation database yield varying estimates.
The returns of a solar project are highly sensitive to radiation levels.
Lack of adequate ground-mounted monitoring stations to validate satellite based estimates
Radiation variability could significantly affect projected cash flows
MNRE has initiated a major project on Solar Radiation Resource Assessment (SRRA)
Centre for Wind Energy Technology (C‐WET) has installed a network of 51 Automatic Solar Radiation Monitoring Stations in different states
Solar Monitoring Stations 22

23. Lessons Learned : Scale of Projects
Challenges faced due to size of Projects
Steps taken to address the issue
Government realising these challenges has considerably increased the size of solar PV projects allotted in phase I batch II of JNNSM
From Batch I to Batch II , max capacity allotted to any developer has increased to 50 MW
States following the cue, are also encouraging large scale development which would further bring in economies of scale.
Solar projects are small compared to traditional power plants
Lenders are reluctant to finance small transactions
In cases where finance is available, transaction costs are higher
Higher MW range of projects had to be promoted for using better evacuation infrastructure
Maximum Cap allotted to a developer for Solar PV
Particulars
Max Cap
JNNSM Batch I Phase I
Max 5 MW
JNNSM Batch II Phase I
Max 50 MW for one developer; each project of max 20 MW
Karnataka
10 MW
Rajasthan MP
No upper Limit
Gujarat
25 MW
Orissa Phase I & II 23

24. SPV Challenge: The Grid Parity
SPV Challenge: The Grid Parity ? Or Grid Substitute / Support Socket Parity

25. Road to Grid Parity is Blocked by the High Cost of Financing in India
Source: World Bank
Mode of Solar Financing in India
Prohibitive cost of financing in India in terms of prevailing interest rates
Long-tenure loans not available (15 years and more) with Indian banks. Stretches cash-flows during debt service period * *
* Includes Hedging Cost
NCDs = Non-convertible Debentures
ECAs= External Commercial Borrowings
ECA=Export credit agency l 25

26. Roadmap to High Growth & Grid Parity
Interest Subsidy / VGF for Solar Farm; Rs 15 L/ year/MW (for 5-years)
Higher number of RECs for Older Plants
World Class R&D Centre - High efficiency Solar cells; Reduction in BOS & Tracking system costs
Capital Subsidy / Incentives for domestic PV Mfg projects – to offset interest & power costs
Domestic Content & ADD support for 2-3 years
Every MW of Solar Power Plant create direct / indirect jobs:
Solar Mfg : 20
Solar Farm Project : 65
O&M : 15
During : Potential 1,00,000 jobs
Grid Parity – Reliable & affordable power - Empowerment of rural population
Rs.5 / unit

27. THANK YOU!