Whats wrong with the Solar Developers in India !! & New Guidelines for Bidding Process for Upcoming Solar PV Power Projects across India !

Hujambo & Mambo Friends  !!

Have addressed you all like this as I am writing this article from the beautiful & endless Masaai Land of Tanzania – The Serengeti National Park – where we are acting as a solar project consultant to what is to become Tanzania’s largest hybrid captive solar power project for one of the prestigious resort !!!

Also friends posting this article after a long time and also have been getting repeated requests from readers to posts regularly but lately have been busy to execute some of the very unique upcoming solar projects of the developers & am glad to inform you all that as a part of aggressive scale-up & business expansion this year we have now marked our presence and introduced our services across  the countries like Mauritius, Tanzania, Ghana, DRC, Kenya, Uganda, Nepal besides extensively working across India. So we will now be acting as a solar project consultant in all the above geographies across Africa in addition to India too 🙂

While it’s raining all over India, the renewable energy sector is also experiencing severe solar raining in terms of totally installed solar projects across the country.  India’s cumulative utility scale solar capacity is now 14 GW and rooftop solar capacity is 1.6 GW totalling – 15.6 GW !! 

Also the slight relief for the developers is that the Ministry of New & Renewable Energy (MNRE) has issued  the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Solar PV Power Projects which tries to cover the payment security for the developers and tries to stress upon the must run status for solar projects.

These Guidelines have been issued under the provisions of Section 63 of the Electricity Act, 2003 for long term procurement of electricity by the ‘Procurers’ [the distribution licensees, or the Authorized Representative(s), or an Intermediary Procurer] from grid-connected Solar PV Power Projects (‘Projects’), having size of 5 MW and above, through competitive bidding.

To summarize, the new guidelines for tariff based competitive bidding process for procurement of solar power will help :

  • enhance transparency and fairness in the procurement process, while
  • protecting consumer interests through affordable power.
  • These guidelines will also provide standardization and uniformity in processes &
  • Risk-sharing framework between various stakeholders involved in the solar PV power procurement.
  • Help in reducing off-taker risk and thereby encourage investments,
  • Enhance bankability of the Projects &
  • Most importantly improve profitability for the investors   😉

Some of the Key Reform Initiatives as per these Guidelines are as follows:

  • Generation Compensation for offtake constraints thereby reducing offtake risks: The “Must-run” status for solar projects has been stressed upon. Generation Compensation provided for following off-take constraints:
    1. Back-down – Min.  Compensation 50% of PPA Tariff
    2. Grid unavailability – Compensation by way of Procurement of  Excess Generation / Outright Compensation
  • PPA: To ensure lower tariffs :  Minimum PPA tenure has been kept at 25 years. Unilateral termination or amendment of PPA is not allowed.
  • Event of Default and the consequences thereof clearly defined to ensure optimal risk sharing between Developer and Procurer. This has been done by clearly defining the generator and procurer events of default, and describing the consequences thereof.
  • Project preparedness to expedite and facilitate setting up of projects: Issues related to land, connectivity, clearances etc. and the extension in case of delay, have been streamlined.
  • Payment Security Mechanism: Risk of generator’s revenue getting blocked due to delayed payment / non- payment by the procurers has been addressed through provision of Payment Security Mechanism through instruments like Letter of Credit (LC), Payment Security Fund, State Guarantee, etc.
  • Termination Compensation to increase bankability of projects by securing the investment by the Generator and the lenders against any arbitrary termination of PPA. Quantum and modality for termination compensation in case of both generator default and procurer default has been clearly defined.
  • Change in Law provision to provide clarity and certainty to generators, procurers, and investors/lenders – Change in Law provision, effective from the date of bid submission and covering any change in law/Tax rate which has a direct effect on the Project (and not just taxes made applicable for supply of power) has been provided.
  • Rationalisation of Penalties: The penalties have been rationalised, so as to reduce the overall cost to the Generator, while at the same time, ensuring compliance with the Commissioning Schedule/Scheme Guidelines.
  • Early Commissioning & Part-Commissioning for expeditious completion of projects –  Early commissioning and part commissioning have not only been allowed, but incentivised, by way of allowing the PPA for a minimum 25 years from the Scheduled Commissioning Date.
  • Repowering: Generators are free to repower their power plants. However, the procurer will be obliged to buy power only within the CUF range in PPA.
  • Bid structure and process: Bids have been allowed in both Power (MW) and Energy (kWh) terms. Also, e-bidding has been emphasized to improve transparency.

Click Here for New Solar Guidelines 

What’s wrong with the Solar Developers in India !!

While all these new proposed guidelines are in a way going to provide huge benefits for the developers but many Indian solar project developers are in our opinion one of the worst across the world in terms of evaluating Financial Projections & Risk Assessment for their upcoming solar project.

Many of the Indian solar project developers are purely into the “RAT RACE” whereby blindly following each other and not knowing where they are taking their projects towards and thereby severely damaging the entire solar sector.



The solar developers routinely ignore risks and bid aggressively for major infrastructure projects making preposterous financial projections and assumptions in a bid to win at any costs. Then when the projects go down as mostly they do, they go crying to the government for a bailout. This has been the trend ever since the mid-2000s when the government opened the infrastructure sector to private investments.

The Indian solar developers have bid aggressively at every stage without taking cognizance of multi fold risks such as forex, interest rates, equipment supply etc. They have been blessed by Lady Luck in the last few years as falling solar panel prices have made their foolish bids seem like a stroke of genius. The solar panel and inverter prices have fallen faster than expected leading to good gains for these developers, as their forecasts of the panel and inverter prices, turn out to be higher leading to good profits as project costs turn out to be lower.

However, this trend following will now lead to a major blowback as the last aggressive solar bids of INR 2.44/kWh was made on the assumption that solar panel prices will keep falling by 10-20% every year. However, that has not been the case with solar panel prices going up by 20% in the last few months. This has been due to some geopolitical issues such as the looming USA ruling on import duties on solar panel imports and China deferring the lowering of its feed in tariffs to September from June. This will mean that Acem and Softbank face some serious financial viability issues for their Bhadla solar plant projects which were seemingly bid of prices of panels as low as 25 cents/watt. Currently, the prices are near 35 cents/watt throwing their financial model totally out of whack.

Indian solar industry has seen tons of financial investors and developers entering the market lured by the massive size of the solar opportunity in India. However, most of these developers have employed some really dumb people who are just following the trend like the financial traders during the 2008 global financial crisis. When the tide turns, the naked will be exposed. Unless the solar panel prices fall back drastically again, I think some people will get badly exposed.

ref.: greenworldinvestor



The current solar bids are projected as a new ‘Trend’ in the solar industry. However, there is Difference between TREND” & “TRENDY” in Solar : A TREND is established overtime & tends to lead to lasting change. TRENDY is an attention catching phase – similar to what India witnessed during the latest lowest solar bids !! Current low(below cost) pricing is unfortunately a margin crushing long term trend in the solar PV industry.  Instead of grid-parity satisfaction , there is much skepticism about financial  sustainability of the recent low Rs 2.44/unit solar bids !! Only time will tell, whether it’s just another another poster boy headlines like India witnessed a couple of years back or not !!

And please make no mistake people the current solar project prices are below costs. If this continues quality will suffer & there will be a significant consolidation. There are lots of false information making waves across solar arena. And if you only get your news from PR driven media, dedicated news feeds & a pay for play media you risk being misinformed – which is the current case of Indian solar industry. What is the logical justification of the developers past project costs based on IRRs viz a vis new pricing based on tariffs. Have they embraced the changing realities?

Well guess this is going to be a part and parcel of Industry now !

And in case you are thinking of going green and powering your premises via solar or are thinking of setting up solar power plants across India, as a solar consultant in India we can always help you 🙂

Also will keep you guys posted on the unique installation of our solar project here in Tanzania, Africa which we are currently executing here in Tanzania.

Till we meet next time …

Kwaheri from Tanzania  !  🙂

Cheers !!

Timeline_Cover_doNotRename71asd

www.urvishdave.com

Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

 

 

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Our column on “Rooftop Solar PV sector in India” in a Magazine Publication

Friends our column on “Rooftop Solar PV sector in India” has been published in March issue of ‘Power Insight’ Magazine.

Here is the link of the original article : Click Here

Page 1 – Rooftop Solar in India

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 2 & 3 – Rooftop Solar in India

Page 4 – Rooftop Solar in India

Link of the original article : Click Here

In case you are thinking of going green and powering your premises via solar or are thinking of setting up solar power plants across India, as a solar consultant in India we can always help you 🙂

Till we meet next time …

Cheers !

Timeline_Cover_doNotRename71asd

www.urvishdave.com

Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

 

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Are the Recent Low Solar Bids across India a “TREND” now?! OR Simply “TRENDY” !!

Congratulations to the winners and am sure that comparatively they possess all right rationale and better knowhow / cost economics sense on desired returns to equity investors. While I believe every tariff is viable when you invest in a project. But the term ‘viability’ in Solar arena has assumed a new definition recently. It is time come to a consensus what should be the viable IRR for Solar projects in India?

The current solar bids are projected as a new ‘Trend’ in the solar industry. However, there is Difference between “TREND” & “TRENDY” in Solar : A TREND is established overtime & tends to lead to lasting change. TRENDY is an attention catching phase – similar to what India witnessed during the latest lowest solar bids !! Current low(below cost) pricing is unfortunately a margin crushing long term trend in the solar PV industry.  Instead of grid-parity satisfaction , there is much skepticism about financial  sustainability of Rewa Rs 2.97/unit solar bids !! Only time will tell, whether it’s just another another poster boy headlines like India witnessed a couple of years back or not !!

Unintended consequences of low Rewa solar bids :

(1) States postponing almost-ready bids

(2) States backing down from PPAs at higher rates

(3) At the same time Wind power producers feeling a little orphaned for reasons : continuously falling solar tariffs & high attention to solar vis a vis wind

Average Solar Bids in Reverse Auctions in India from 2010 -2017

And please make no mistake people the current solar project prices are below costs. If this continues quality will suffer & there will be a significant consolidation. There are lots of false information making waves across solar arena. And if you only get your news from PR driven media, dedicated news feeds & a pay for play media you risk being misinformed – which is the current case of Indian solar industry. What is the logical justification of the developers past project costs based on IRRs viz a vis new pricing based on tariffs. Have they embraced the changing realities?

When only lowest project costs is the most important factor !

Anyways this is seriously going to affect solar projects undertaken by SMEs and MSMEs, which are supposed to be backbone.  Let us wait & watch for this blockbuster thriller solar bids to perform at the box office 😀

What do you guys think 🤔 !? do post your views & opinion on the same….

 

And in case you are thinking of going green and powering your premises via solar or are thinking of setting up solar power plants across India, as a solar consultant in India we can always help you 🙂

Till we meet next time …

Cheers !

Timeline_Cover_doNotRename71asd

www.urvishdave.com

Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

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Rooftop Solar in India !

New Year Greetings to everyone ! as you are going through the first post for the Year 2017 🙂 Moreover while there is continuous ‘Boom-ma-Boom’ across the utility scale solar segment in India & another very interesting solar arena is not far behind in making news – the “Rooftop solar” power segment in India !

Few days ago I came across an interesting question on ‘Quora’ i.e. “Will the need for utility scale solar energy decrease significantly as rooftop solar energy production increases?” & as a Solar Consultant in India, very often I encounter this question on different forums & platforms that “What do you think is the future of rooftop solar plants in India ?” OR “Does rooftop solar plants in India makes any economic sense?” & many more queries on rooftop solar arena across India….

Well Commenting specifically taking into consideration the Indian scenario :

India recently witnessed crossing of more than 9 GW ! of Solar capacity across the country and is about to see this figure changing into multiplication of many times from current capacity on year to year basis. This is mix of both the utility scale and the rooftop / distributed solar generations combining both grid and off-grid.

Though utility scale solar power plant contribution in total solar mix is more and is bound to remain more in future also because it makes a sensible business sense & revenue model, still the real strength of solar lies in the distributed solar energy generations or the rooftop solar power plants.

state wise and year wise target of rooftop solar projects in India

state wise and year wise target of rooftop solar projects in India

The real beauty & advantages of solar lies in distributed market i.e. individuals opting for rooftop solar installations as energy is consumed at the same point where it is generated and no additional requirements of land coupling with benefits of no transmission & distribution losses benefiting both generators and utilities.

Distributed / rooftop solar generation is “For the people” and more importantly “By the people” and not unlike utility scale solar which would be setup only by the big business houses to make an ROI sense and beautify balance sheets. Moreover it would also benefit a vast majority of more then 30%+ of Indian population deprived of even the electricity grid.

Does Rooftop Solar makes any Financial Sense ? 🤔 😉

Hmm… So On Viability :

  • If you are paying more than Rs. 6 per Unit on your utility bill currently then what are you waiting for – Just go for solar rooftop power plant for your roof ! It definitely
    Rooftop Solar makes Financial Sense 🤔 ;) !

    Rooftop Solar makes Financial Sense !

    makes sense compared to any investment tool you come across !

  • On Subsidy :
    • Don’t depend on the subsidy to establish the viability of your solar system. Yes it helps a bit but your focus should be more on electricity savings, annual rise of your utility bills, regular power cuts & generating clean energy ! Very sooner the subsidies are going to stop as it happened in the solar water heaters arena.
  • For commercial & Industrial users : Already getting a solar system on your roof is very much viable even now and the benefits of accelerated depreciation (even though reduced to 40% now) still establishes much more viability of the same. All you big shots out there, you guys know very well what I mean 😉
You know it has crossed your head a few times & why wouldn't it ?1? Going Solar makes good financial sense !!

You know it has crossed your head a few times & why wouldn’t it ?!? Going Solar undoubtedly makes good financial sense !! 🙂

Moreover electricity is now the basic elementary need for people and so as Mahatma Gandhi believed “That the all the means of production of the elementary necessaries of life should remain in the control of the masses” – Electricity is one of them and should be in peoples control 🤔 !!

Hence my personal favorite is rooftop solar arena but as long as & till the masses are made aware and they adopt rooftop / distributed means of production for their electricity needs – the need for utility scale solar energy will not decrease significantly as distributed energy production increases?

At the same time even though the government is positively pushing the development of rooftop solar segment across India, still we are hugely missing the targets set by the them.

Solar Rooftop Targets across India - Approved Vs Commissioned

Solar Rooftop Targets across India – Approved Vs Commissioned

 Challenges faced in Rooftop Solar arena across India :

Well the biggest challenge is mainly in terms of lack of awareness among consumers along with…

  • Lack of consistent policy support from the states – Almost all the solar companies operating in rooftop segment have faced this & knows this better 🙂
  • Currently with over 20+ states have some or other form of solar net-metering policy,  yet very few states have demonstrated implementing hurdle fee net-metering rooftop solar systems.
  • Many states which are extremely suitable for implementing solar net-metering schemes are not approving or supporting solar rooftop deployment under the Opex / RESCO / BOO / BOOT model.
  • While government (both central & state) are announcing ambitious policies & targets for rooftop solar, yet very little attention is given to successfully implementing & enforcing the targets.

Well despite all odds the rooftop solar sector is showing signs of growth though not as projected & if some of these hurdles prevails in coming times then India will undoubtedly fail to meet the rooftop solar targets of approximately 40 GW by 2022..Lets see !

But as of now looking at the present Indian scenario & at the end of the day what we should think of is that Solar is contributing in the overall energy mix be it utility scale or distributed !

confused“Utility Scale Solar” OR “Rooftop / Distributed Solar” in India”!!?? well, we need both of them presently & what we should understand is –

“Chaman mein italaa-te rangaboo se baat banti hai,

Hum hi hum hai toh kya hum hai, tum hi tum ho toh kya tum ho”

What do you guys think 🤔 !? do post your views & opinion on the same….

And in case you are thinking of going green and powering your premises via solar, as a solar consultant in India we can always help you 🙂

Till we meet next time …

Cheers !

Timeline_Cover_doNotRename71asd

www.urvishdave.com

Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

 

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2016 – Year in Review for Renewable Energy Sector across India – a new dawn in Renewable Energy !

A new dawn in Renewable Energy- India attains 4th position in global wind power installed capacity;  46.33 GW grid-interactive power; 7,518 MW of grid-connected power; 1502 MW Wind power capacity added; Small hydro power capacity reaches 4323 MW, 92305 Solar Pumps installed, 38,000 crore Green Energy Corridor is being set up; Surya Mitra” mobile App launched , Solar Tariff as low as Rs 3/unit !

renewable-energy-india

A capacity addition of 14.30 GW of renewable energy has been reported during the last two and half years under Grid Connected Renewable Power, which include 5.8 GW from Solar Power, 7.04 GW from Wind Power, 0.53 from Small Hydro Power and 0.93 from Bio-power.   Confident by the growth rate in clean energy sector, the Government of India in its submission to the United Nations Frame Work Convention on Climate Change on Intended Nationally Determined Contribution (INDC) has stated that India will achieve 40% cumulative Electric power capacity from non-fossil fuel based energy resources by 2030 with the help of transfer of technology and low cost International Finance including from Green Climate Fund. As on 31st October, 2016, Solar Energy Projects with an aggregate capacity of over 8727.62 MW has been installed in the country.

The government is playing an active role in promoting the adoption of renewable energy resources by offering various incentives, such as generation-based incentives (GBIs), capital and interest subsidies, viability gap funding, concessional finance, fiscal incentives etc. The National Solar Mission aims to promote the development and use of solar energy for power generation and other uses, with the ultimate objective of making solar energy compete with fossil-based energy options. The objective of the National Solar Mission is to reduce the cost of solar power generation in the country through long-term policy, large scale deployment goals, aggressive R&D and the domestic production of critical raw materials, components and products. Renewable energy is becoming increasingly cost-competitive as compared to fossil fuel-based generation.

In order to achieve the renewable energy target of 175 GW by the year 2022, the major programmes/ schemes on implementation of Solar Park, Solar Defence Scheme, Solar scheme for CPUs Solar PV power plants on Canal Bank and Canal Tops, Solar Pump, Solar Rooftop etc have been launched during the last two years.

Various policy measures have been initiated and special steps taken in addition to providing financial support to various schemes being implemented by the Ministry of New and Renewable Energy (MNRE) for achieving the target of  renewable energy capacity to 175 GW by the year 2022. These include, inter alia,  suitable amendments to the Electricity Act and Tariff Policy for strong enforcement of Renewable Purchase Obligation (RPO) and for providing Renewable Generation Obligation (RGO); setting up of exclusive solar parks; development of power transmission network through Green Energy Corridor project; identification of large government complexes/ buildings for rooftop projects; provision of roof top solar and 10 percent renewable energy as mandatory under Mission Statement and Guidelines for development of smart cities; amendments in building bye-laws for mandatory provision of roof top solar for new construction or higher Floor Area Ratio; infrastructure status for solar projects; raising tax free solar bonds; providing long tenor loans; making roof top solar as a part of housing loan by banks/ NHB; incorporating measures in Integrated Power Development Scheme (IPDS) for encouraging distribution companies and making net-metering compulsory and raising funds from bilateral and international donors as also the Green Climate Fund to achieve the target.

ESTIMATED POTENTIAL OF RENEWABLE ENERGY

The increased use of indigenous renewable resources is expected to reduce India’s dependence on expensive imported fossil fuels. India has an estimated renewable energy potential of about 900 GW from commercially exploitable sources viz. Wind – 102 GW (at 80 meter mast height); Small Hydro – 20 GW; Bio-energy – 25 GW; and 750 GW solar power, assuming 3% wasteland

TARGETS (in MW)

The Government of India has set a target of 175 GW renewable power installed capacity by the end of 2022. This includes 60 GW from wind power, 100 GW from solar power, 10 GW from biomass power and 5 GW from small hydro power.

A target of 16660 MW grid renewable power (wind 4000 MW, solar 12000 MW, small hydro power 250 MW, bio-power 400 MW and waste to power 10 MW),  has been set for 2016-17. Besides, under off-grid renewable system, targets of 15 MW eq. waste to energy, 60 MW eq. biomass non-bagasse cogeneration, 10 MW eq. biomass gasifiers, 1.0 MW eq. small wind/hybrid systems, 100 MW eq. solar photovoltaic systems, 1.0 MW eq. micro hydel and 100,000 nos. family size biogas plants have been set for 2016-17.

The target (MW) set for the various renewable energy sources for the next three years are:

            Source 2016-17 2017-18 2018-19
Solar Power 12,000 15,000 16,000
Wind 4000 4600 5200
Biomass 500 750 850
SHP 225 100 100
Grand Total 16725* 20450* 22150*

SHARE OF RENEWABLE POWER IN TOTAL INSTALLED CAPACITY

Economic growth, increasing prosperity, a growing rate of urbanisation and rising per capita energy consumption has increases the energy demand of the country. In order to meet the energy demand, India has total installed power generation capacity of 307.27 GW as on 31.10.2016 from all resources. With 46.33 GW installed renewable power capacity, the renewable power has a share of about 15% to the total installed capacity.

ACHIEVEMENTS

The details of year round initiatives and achievements of the Ministry of New and Renewable Energy are as follows:

Green Power Capacity Addition

A total of 7,518 MW of grid-connected power generation capacity from renewable energy sources has been added so far this year (January 2016 to October 2016) in the country.

A total of 7060 MW of grid-connected power generation capacity from renewable energy sources like solar (3019 MW) and wind (3423 MW), Small Hydro Power (218 MW), Bio-Power (400 MW) has been added during 2015-16 in the country against target of 4,460 MW.  During 2016-17, a total 3575 MW capacity has been added till 31.10.2016, making cumulative achievement 46,327 MW.

total-installed-renewable-energy-in-india

Sector-wise highlights of achievements 

  • Largest ever wind power capacity addition of 3423 MW in 2015-16 exceeding target by 43%. During 2016-17, a total 1502 MW capacity has been added till 31.10.2016, making cumulative achievement 28,279 MW. Now, in terms of wind power installed capacity India is globally placed at 4th position after China, USA and Germany.
  • Biggest ever solar power capacity addition of 3,019 MW in 2015-16 exceeding target by 116%. During 2016-17, a total 1750 MW capacity has been added till 31.10.2016, making cumulative achievement 8728 MW.
  • 31,472 Solar Pumps installed in 2015-16, higher than total number of pumps installed during last 24 years i.e. since beginning of the programme in 1991. So far, 92305 Solar Pump have been installed in the Country as on 31.10.2016.
  • Solar projects of capacity 20,904 MW were tendered in 2015-16. Of these, 11,209 MW  capacity already awarded.
  • A capacity addition of 0.53 GW has been added under Grid Connected Renewable Power since last two and half years from Small Hydro Power plants.
  • Biomass power includes installations from biomass combustion, biomass gasification and bagasse co-generation. During 2016-17, against a target of 400 MW, 51 MW installations of biomass power plants has been achieved making a cumulative achievement to 4882 MW.
  • Family Type Biogas Plants mainly for rural and semi-urban households are set up under the National Biogas and Manure Management Programme (NBMMP). During 2016-17, against a target of 1.00 lakh biogas plants, 0.26 lakh biogas plants installations has been achieved making a cumulative achievement to 49.35 lakh biogas plants as on 31.10.2016.
The sector wise achievements from January 2016 to October are as follows:

Programme/ Scheme wise Achievements in Year 2016 (January- October 2016)

Sector  Achievement (January- October 2016) Cumulative Achievements as on 31.10.2016
I.   GRID-INTERACTIVE POWER (CAPACITIES IN MW)
Wind Power 3191.21 28279.40
Solar Power 3848.77 8727.64
Small Hydro Power 146.47 4323.37
BioPower (Biomass & Gasification and Bagasse Cogeneration) 331.78 4882.33
Waste to Power 7.50 114.08
Total 7525.73 46326.82
II.  OFF-GRID/ CAPTIVE POWER (CAPACITIES IN MWEQ)
Waste to Energy                    14.61 161.12
Biomass(non-bagasse) Cogeneration           49.54 651.91
Biomass Gasifiers
-Rural
-Industrial                                    
0.19 18.34
15.58 176.30
Aero-Genrators/Hybrid systems 0.26 2.93
SPV Systems 84.98 373.99
Water mills/micro hydel 1.60 18.81
Total 166.80 1403.40
III.  OTHER RENEWABLE ENERGY SYSTEMS
Family Biogas Plants (in Lakhs) 1.014 49.354

Major Initiatives taken by Ministry

Solar Power

  • Under National Solar Mission, the target for setting up solar capacity increased from
    20 GW to 100 GW by 2021-22. Target of 10,500 MW, set for 2016-17 which will take the cumulative capacity to 17 GW till 31st March 2017.
  • As on date, 19,276 MW has been tendered out, of which LOI issued for
    13,910 MW/PPA signed for 10,824 MW.
  • 34 Solar Parks of capacity 20,000 MW in 21 states have been sanctioned which are under various stages of execution.
  • As on 31.10.2016, a total of 90,710 solar pumps have been installed throughout the country.
  • Also, A total amount of Rs. 67.01 crore has been sanctioned for preparation of master plans, solar city cells, promotional activities and installation of renewable energy projects and an amount of Rs. 24.16 crore has been released, so far, under Solar City Programme.
  • Various departments and ministries under central government have collectively committed to deploying 5,938 MW of rooftop solar capacity for their internal power consumption. SECI is aggregating demand for a part of this requirement and helping in procuring rooftop solar systems. SECI has issued a tender for development of 1,000 MW rooftop solar capacity on pre-identified central government/ department owned buildings. It is the largest such tender in India’s fledgling rooftop solar market.
  • Several schemes namely (i) Defence scheme (ii)  Central Public Sector Undertakings (CPSUs) scheme (iii)  Bundling scheme (iv) Canal Bank/ Canal Top scheme  (v) VGF Scheme (vi) Solar Park scheme (vii) Solar rooftops, have been initiated/launched by the Ministry under National Solar Mission which are under implementation.
  • Under Defence scheme against a target of 300 MW, 347 MW sanctioned, under Central Public Sector Undertakings (CPSUs) scheme against a target of 1000 MW, all capacity sanctioned, under 3000 MW Bundling scheme, Tranch-I: 3000 MW has been tendered, under 100 MW Canal Bank/ Canal Top scheme, all capacity sanctioned, under 2000 MW & 5000 MW VGF Scheme, tenders issued for 4785 MW, and under 20,000 MW Solar Park scheme, 34 Solar parks have been approved in 21 States with aggregate capacity of 20,000 MW.

Solar Rooftop

  • A target of 40 GW grid connected solar rooftops to be achieved by 2022 has been set. So far, about 500 MW have been installed and about 3,000 MW has been sanctioned which is under installation. All major sectors i.e. Railways, Airports, Hospitals, Educational Institutions, Government Buildings of Central/State/PSUs are being targeted besides, the private sector.
  • A massive Grid Connected Solar Rooftop Programme launched with 40 GW target.
    Rooftop Solar makes Financial Sense !

    Rooftop Solar makes Financial Sense !

    State Electricity Regulatory Commissions of 30 States/UTs notified regulations for net-metering/feed-in-tariff mechanism. Rs.5000 crore approved for solar rooftops. About 500 MW solar rooftop capacity installed till 30.09.2016.

  • A total sanction of 1300 million dollars has been received from World Bank, KFW, ADB and NDB through which the SBI, PNB, Canara Bank and IREDA will be in the position to fund at the rate of less than 10%.
  • Ministry has tied up with ISRO for Geo tagging of all the Rooftop plants using ISRO’s VEDAS Portal.

Wind Power

  • During the year 2015-16, wind power capacity addition of 3.42 GW was made, which is highest ever wind power capacity addition in the country during a single year.   The present wind power installed capacity in the country is around 28.28 GW. Now, in terms of wind power installed capacity India is globally placed at
    4th position after China, USA and Germany.
  • India has a strong manufacturing base of wind power equipment in the country. Presently, there are 20 approved manufacturers with 53 models of wind turbines in the country up to a capacity of 3.00 MW single turbines. Wind turbines being manufactured in India are of international quality standards and cost-wise amongst the lowest in the world being exported to Europe, USA and other countries.
  • The wind power potential of the country has been reassessed by the National Institute for Wind Energy (NIWE), it has been estimated to be 302 GW at 100 meter hub-height. Online wind atlas is available on NIWE website. This will create new dimension to the wind power development in the country.
  • India has long coastline where there is a good possibility for developing offshore wind power projects. The cabinet has cleared the National Offshore Wind Energy Policy and the same has been notified on 6th October 2015. Certain blocks near Gujarat and Tamil Nadu coast line have been identified. NIWE is in process of doing the wind resource assessment in these coastal areas.
  • Comprehensive Guidelines for Development of On-shore Wind Power Projects in the country have been formulated and issued on 22nd October 2016.
  • Guidelines for implementation of “Scheme for Setting up of 1000 MW Inter-State Transmission System (ISTS) – connected Wind Power Projects” issued on 22nd October 2016.
  • The Policy for Repowering of the Wind Power Projects has been released on
    5th August, 2016 to promote optimum utilization of wind energy resources by creating facilitative framework for repowering.

Small Hydro Power

A capacity addition of 14.30 GW of renewable energy has been reported during the last two and half years under Grid Connected Renewable Power, 0.53 GW from Small Hydro Power.

Biomass Power

Biomass power includes installations from biomass combustion, biomass gasification and bagasse co-generation. During 2016-17, against a target of 400 MW, 51 MW installations of biomass power plants has been achieved making a cumulative achievement to 4882.33 MW.

Family Size Biogas Plants

Family Size Biogas Plants mainly for rural and semi-urban households are set up under the National Biogas and Manure Management Programme (NBMMP). During 2016-17, against a target of 1.00 lakh biogas plants, 0.26 lakh biogas plants installations has been achieved making a cumulative achievement to 49.35 lakh biogas plants.

Off-Grid Solar Applications

A special programme for 1,00,000 solar pumps launched of which 31,472 Solar Pumps installed in 2015-16, higher than total number of pumps installed during last 24 years i.e. since beginning of the programme in 1991.

Amendments in Tariff Policy to promote Renewable Energy

  • Enhancement in Solar RPO to 8% by March 2022.
  • Introduction of RGO for New coal/lignite based thermal plants after specified date.
  • Ensuring affordable renewable power through bundling of renewable power.
  • No inter-state transmission charges and losses to be levied for solar and wind power.
  • Further, pursuant to the revised tariff policy, the Ministry of Power on 22nd July 2016 has notified the long term growth trajectory of RPO for solar and non-solar energy for next 3 years 2016-17, 2017-18 and 2018-19 as under:-
Long term trajectory 2016-17 2017-18 2018-19
Non-solar 8.75% 9.50% 10.25%
Solar 2.75% 4.75% 6.75%
Total 11.50% 14.25% 17.00%

Green Energy Corridor

Rs.38,000 crore Green Energy Corridor is being set up to ensure evacuation of Renewable Energy. Power Grid Corporation of India Limited (PGCIL) has sought a Loan assistance of US$ 1,000 million from the Asian Development Bank (ADB) comprising of Sovereign guaranteed loan of US$ 500 million and Non-Sovereign loan of US$ 500 million. the Loan would be utilized for funding of the following transmission projects including a project under Green Energy Corridor projects in next 3-4 years:

(i)        HVDC Bipole link between Western Region (Raigarh, Chhattisgarh) and Southern Region (Pugalur, Tamil Nadu) – North Trichur (Kerala)- Scheme 1: Raigarh-Pugalur 6000 MW HVDC System.

(ii)      HVDC Bipole link between Western Region (Raigarh, Chhattisgarh) and Southern Region (Pugalur, Tamil Nadu) – North Trichur (Kerala)- Scheme 3: Pugalur- Trichur 2000 MW VSC based HVDC System.

(iii)    Real Time Measurement/ monitoring scheme.

(iv)    Inter State Transmission System (ISTS) associated with Green Energy Corridor as under:

  1.  Ajmer(New) – Bikaner (New) 765 kV D/c
  2.  Bikaner(New) – Moga (PG) 765 kV D/c
  3.  LILO of one circuit of 400kV Bhadla- Bikaner (RVPN) line at Bikaner(New)
  4.  Establishment of 2×1500 MVA, 765/400 kV S/s at Bikaner (New)

LOWEST SOLAR TARIFFS

Solar tariffs have fallen to an unprecedented low of Rs. 4.34 / kWh through reverse auction for one of six projects of 70 MW each to be put up in Rajasthan under the National Solar Mission. NTPC on 18.01.2016 conducted the reverse bidding for 420 MW solar power projects  However, the  tariff had further fallen to Rs 3 per unit, which was quoted by Amplus Energy Solutions in an auction for rooftop solar power conducted by Solar Energy Corporation of India (SECI).

"It's your choice...but everyone's consequences ...."

“It’s your choice…but everyone’s consequences ….”

Other Initiatives

  • International Solar Alliance was launched as a special platform for mutual cooperation among 121 solar resource rich countries lying fully or partially between Tropic of Cancer and Tropic of Capricorn at COP21 in Paris on 30th November, 2015 to develop and promote solar energy, with its headquarter in India.  On 25th January, 2016, the Foundation Stone for the proposed Headquarters of the ISA was laid at Gurgaon, Haryana (India) and its interim Secretariat was inaugurated. The International Steering Committee (ISC) of the ISA has held four meetings so far. The Framework Agreement of ISA has been finalized after discussions with various stakeholders. It was presented in the fourth meeting of the ISC of ISA. The Framework Agreement of ISA has been signed by 20 member countries including India, France, Brazil and others on 15th November, 2016 at Marrakech, Morocco on the side-lines of COP-22.
  • Bank loans up to a limit of Rs.15 crores will be given to borrowers for purposes like solar based power generators, biomass based power generators, wind power systems, micro-hydel plants and for renewable energy based public utilities viz. Street lighting systems, and remote village electrification. For individual households, the loan limit will be Rs.10 lakh per borrower.
  • Coal cess has been increased 8 times from Rs.50 to Rs.400/ton in last two years
    (2014-15) which will make available around Rs.40,000 crore/year for supporting and incentivizing development of Clean Energy projects in the country.
  • Foreign Direct Investment (FDI) up to 100% is permitted under the automatic route for renewable energy generation and distribution projects subject to provisions of The Electricity Act, 2003.

In order to achieve the targets, various initiatives have been taken by the Government which interalia include:

  • amendments in the Tariff Policy for strong enforcement of Renewable Purchase Obligation (RPO) and for providing Renewable Generation Obligation (RGO);
  • setting up of exclusive solar parks;
  • development of power transmission network through Green Energy Corridor project;
  • identification of large government complexes/ buildings for rooftop projects;
  • provision of roof top solar and 10 percent renewable energy as mandatory under Mission Statement and Guidelines for development of smart cities;
  • amendments in building bye-laws for mandatory provision of roof top solar for new construction or higher FAR;
  • infrastructure status for solar projects;
  • raising tax free solar bonds;
  • making roof top solar a part of housing loan by banks/NHB;
  • incorporating measures in Integrated Power Development Scheme (IPDS) for encouraging distribution companies and making net-metering compulsory
  • raising funds from bilateral and international donors as also from the Green Climate Fund to achieve the target. and
  • creation of Surya Mitras for installation and maintenance of the Solar Projects.
source : Click Here

And in case you are thinking of going green and powering your premises via solar, as a solar consultant in India we can always help you 🙂

Till we meet next time …

                   …. Enjoy this Winter season to its fullest also “Think & Grow Solar !”😀

Cheers !

Timeline_Cover_doNotRename71asd

www.urvishdave.com

Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

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Sun really rises in the East – for Solar Cooking Movement ….!!!

We all have heard and learnt Sun rises in the EAST… but these time it will do so literally in sense that Solar Cookers Movement is going to get major boost (badly needed) as Solar Cooker International a NGO in / of USA is hosting 6th Solar Cooker International World Conference in India at Muni Seva Ashram a NGO in Goraj, Vadodara, Gujarat India.

It will be perhaps one of the worlds largest Solar Cooking event where more than 300-400 people are expected to participate. Already 115 people have registered and more than 60 + foreign delegates have already registered and booked to fly to India.

India has been on forefront of Solar Cooking and is one of the few countries in world that has Ministry for New and Renewable Energy – a special designated Ministry to promote Renewable Energy and India has also set a very ambitious target of having 160 GW (160,000 MW) Solar Power by 2022 but what has been observed and feared is that major of the same will come from Solar Photo-Voltaic. It is good that so much clean and green power will come from Renewable Energy Source but it still does not and will not address/ solve the major problem of rural population and contributor to deforestation and global warming.

Even in 21st Century when Man has landed on Moon and marching to reach Mars… nearly 50 % of the worlds population cooks on open fire with bio-mass mainly fire-wood that comes from deforestation.

Nearly 3.2 Million Women and Children die every year due to smoke in the Kitchen !!

Thus Solar Cooking can contribute a lot to address these problem and offer Solutions.

India has one of the largest and most successful Solar Cooking Program and India can boast of having highest number of Solar Cookers in the world. Having started nearly 50 years before India has more than 650,000 solar box cookers. But spread of it remained limited due to it not being able to cook fast, fry and cook all items.

It was the Eco Center ICNEER ( International Center for Networking, Ecology, Education and re-integration) a NGO founded by Dr Mrs. Shirin Gadhia and and Mr. Deepak Gadhia after their return from Germany that changed the scenario.

They brought to India technology of Domestic Parabolic Solar Cooker (Sk 10/14) from developer Dr Dieter Seifert of Germany and Scheffler Concentrator from Physicist Mr. Wolfgang Scheffler and successfully indiginised and commercialized the same through their Social Enterprise “Gadhia Solar”.

With help of M/s HTT GmbH of Germany the World leading German company in Thermal Engineering- the company with whom Mr. Deepak Gadhia worked they developed worlds first Solar Steam Cooking System for and with team of Brahma Kumari’s at Mt. Abu and its successful working and demonstration led to 100’s of Solar Steam Cooking System coming up all over India and Indian can rightfully boast of having most of the worlds largest Solar Steam Cooking Systems and to name a few

  • Solar Steam Cooking System at Brahma Kumari’s that cooks 20,000 meals per day

    World's Largest Solar Cooking System !

    World’s Largest Solar Cooking System at Shirdi !

  • Solar Steam Cooking System at Tirupati Tirumala Devasthanam (TTD) that cooks 30,000 meals per day
  • Present Worlds largest Solar Steam Cooking System at Shirdi Saibaba Sansthan that cooks 50,000 meals per day.
  • Worlds highest Solar Steam Cooking System in Leh, Ladakh that cooks food with solar energy for Indian Army.
World's highest altitude Solar Steam Cooking system in Ladakh, producing 500 meals per day for the Indian Army in -40°C temperature conditions !!!!

World’s highest altitude Solar Steam Cooking system in Ladakh, producing 500 meals per day for the Indian Army in -40°C temperature conditions !!!!

There are now nearly 100 such large Institutional Solar Steam Cooking Systems that cooks not only for Ashrams and Temples but also Indian Army, Jails, Schools, Hospitals, Industrial Canteens/ Messes, Mid-day Meal Programs, Hostels of Schools and Universities etc.

WORLD's LARGEST SOLAR COOKING PROJECT ! for Bhutanese Refugee Camp in Nepal where around 7000 Sk 14 Parabolic Solar Cookers are supplied that have served more than 85,000 people by 2013 !!!!

WORLD’s LARGEST SOLAR COOKING PROJECT!  for Bhutanese Refugee Camp in Nepal where around 7000 Sk 14 Parabolic Solar Cookers are supplied that have served more than 85,000 people by 2013 !!!!

Choosing India as the place to hold the 6th SCI World Conference is recognition of these fact and an attempt to connect the Global Community of Promoters, Manufacturers, Scientists, Academicians, Policy Makers, students, NGOs promoting Solar and Sustainability, Users so that “ Learning and Sharing” take place and the success spreads to all over the world.

The Green Ashram is a perfect place to host such a conference as it is often refered as “Mecca of Solar / Renewable Technologies” as it extensively uses Solar and Renewable Energy Systems for cooking, air-conditioning, heating hot water, solar drying of agricultural products, food processing and is also working on Solar-Biogas Hybrid Crematorium. It is proud owner of India’s first Solar Thermic Fluid based Cooking System that cooks food for 500 students not only during day but also at night with stored solar energy in thermic fluid. Using thermic fluid also enables it to fry and make chappati’s which was not possible with solar steam cooking.

It is proud moment for India to show-case and share its success and great opportunity for all those interested in getting to know more about Solar Cooking and promoting the same to help protect Mother Earth from Climate Change and also Health of Women and Children badly effected to in door pollution to participate in the conference where they can connect with Experts from different walks of life from Scientists to Manufacturers to Policy makers to promoters to inventors and innovators and students.

For registration please visit webpage of Solar Cooker International (SCI) www.solarcookers.org or link http://www.solarcookers.org/our-work/events.

The conference will be held from 16-18th January 2017 at Muni Seva Ashram in Goraj near Vadodara a center worth visiting. (www.greenashram.org) .

To enable participation for people of all walks of Life it has been kept very reasonable and there are also discounts for NGO’s and Students. Ashram is great venue as had world class infrastructure too with a newly built hall to accommodate sitting of 538 people with state of the art Audio-visual and Sound system.

It also has accommodation facilities for 300+ people and so all those wanting to stay in Ashram can stay there too and it has different catagories of accommodation from dormitories, to non ac and ac double rooms to hostel rooms shared between 4 to fully furnished apartments.

More Reads on Solar Cooking :

And in case you are thinking of going green and powering your home /factory via solar, as a solar consultant in India we can always help you 🙂

Meanwhile till we meet next time …  Enjoy this Winter season to its fullest   😀

Cheers !

Timeline_Cover_doNotRename71asd

www.urvishdave.com

Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

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Process for Setting Up Rooftop Solar Plant in Gujarat under Net-Metering !

India recently witnessed crossing of more than 8000 MW of Solar capacity across the country and is about to see this figure changing into multiplication of many times from current capacity on year to year basis.

Total Installed Power Capacity across India_2016

Total Installed Power Capacity across India_2016

Total Installed Renewable Capacity across India_2016

Total Installed Renewable Capacity across India_2016

 

 

 

 

 

 

One thing that is rapidly evolving at an ultimate pace is the upcoming rooftop solar projects sector across India and particularly across Gujarat. In our previous article on Rooftop Solar Projects in Gujarat we mentioned that the solar state of India – Gujarat announced the rooftop solar subsidy at the time when other states are closing their doors to any kind of state financial assistance for opting solar. Now many states are under process of finalization of similar kind of state financial assistance to rooftop solar projects taking reference of rooftop solar policy of Gujarat.

As of people looking forward to installing rooftop solar plants on their premises, below is the process to set up rooftop solar plant in Gujarat under Net-Metering :

Process To Set-up Solar Rooftop Plant in Gujarat :

Rooftop Solar Plant Process in Gujarat

Rooftop Solar Plant Process in Gujarat

                        DESCRIPTION AUTHORITY   DURATION

Registration of Rooftop Plant (form)

The Registration Form can be obtained from GEDA

charges-for-solar-rooftop-application

Customer/ Installer, GEDA (Submitted at xth day)

5 days from receipt of duly completed application form (x+5 days)

Approval from the Chief Electrical Inspector (CEI)

The  approved SLD, earthing diagrams and details of modules and inverters

CEI

10 days from receipt of duly completed application form (x+15 days)

Application form for connectivity  DGVCL / PGVCL / Torrent.

To be submitted to the respective DISCOM’s.

Following documents are to be submitted:

a. Capacity of Rooftop plant

b. Copy of registration at GEDA

c. Documents related to legal possession of rooftop / NOC of co-owner, in case of joint ownership

d. Approval of CEI

DISCOM (Submitted at yth day)
Technical Feasibility Report (TFR)

TFR on field will be confirmed by the DISCOM

connectivity-level-for-various-sizes-of-the-rooftop-solar-power-system-in-gujarat

DISCOM 15 days from receipt of duly completed application form (y+15 days)
In principle consent

The Discom will provide in principle consent for connectivity,  estimated connectivity charges which are to be paid within 15 days, issuing estimate for system strengthening (if required) to be paid within 30 days

DISCOM 5 days from receipt of TFR from the field office (y+20 days)
Signing of connectivity agreement (form)

Should be done within 15 days (30 days, if system strengthening is required)

Customer 15 days (y+35 days)
Issuance of letter to applicant for completion of project work DISCOM 5 days from execution of agreement (y+40 days)
System strengthening by DISCOM (if required) DISCOM 45 days parallel to project installation
Construction of plant

The duration to construct the rooftop solar power plant is 6 months which should be followed by commissioning of the plant within 2 months. Otherwise the registration would stand cancelled.

Customer / Installer 6 months for construction (y+160 days), 2 months for commissioning (y+220 days)
Intimation by customer (document) (page 6)

On completion of work, Intimation to field office, GEDA with the details mentioned in the document

Customer/ DISCOM As mentioned in the document for various activities (y+242 days)
Issuance of commissioning certificate

GEDA officials shall visit the site along with the Discom to inspect the plant after which the commissioning certificate would be issued

GEDA 5 days from the receipt of intimation letter from applicant (y+247 days)
Disbursement of subsidy by GEDA (order)

Subsidy of 10,000 INR/kW and max. of 20,000 INR/kW to grid connected private consumer after commissioning of plant

GEDA After commissioning of the plant
Disbursement of subsidy by MNRE (order(page 14)

30% of benchmark tariff determined by MNRE is given as Central Financial assistance

MNRE

As per the order

Overall the process seems lengthy but its very well defined,  lot more organized and with straightforward framework. And mostly all the approval & regulatory portions will be taken care by the Solar Installer’s so making the process even more simpler for customers.

And in case you are thinking of going green and powering your home /factory via solar, as a solar consultant in India we can always help you 🙂

Meanwhile till we meet next time …  Enjoy this Dandya & Garba season to the fullest  – Wishing all the readers a very Happy Navratri   😀

Cheers !

Timeline_Cover_doNotRename71asd

www.urvishdave.com

Solar Project Consultant – India

Also Follow us on :

Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia

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