NimeshPatel Gvunl

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Solar Energy Gujarat Perspective

Nimesh A Patel Chief Finance Manager Gujarat Urja Vikas Nigam Ltd

Renewable Energy
Potential of Renewable Energy Sources in the State Wind 10,000 MW Solar 5.6 kWh/square meter / day ( 10,000 MW) Biomass 900 MW Geothermal 200 MW ( Tentative) Tidal 900 MW Installed Wind Power Capacity in the State : 1912 MW Sale 1033 MW, Wheeling 879 MW Plans for WTG capacity addition of 4000 MW in next 5 years Conducive Solar Power Policy & Wind Power Policy to attract private sector participation Solar Capacity Allotted: 1291MW (Phase I 34 no 716 MW, Phase-II 59 no 575 MW) PPA signed with Solar Power Project Developers ( Phase I 28 no 396 MW, Phase II 55 no 562 MW) Total 83 no 958 MW Renewable Energy generation to contribute 10 % of the Conventional Power in the next five years

GERC Regulations for procurement of power from Renewable Sources 2010


GERC stipulated Renewable Power Purchase Obligations for FY 2010-11 to 2012-13 vide Notification No: 3 of 2010 dated 17.4.2010 as under: Year Wind Solar Others Total 2010-11 2011-12 4.5% 5% 0.25% 0.5% 0.25% 0.5% 5% 6%

2012-13

5.5%

1%

0.5%

7%

Tariff for Solar Power Projects as per GERC Order 29.01.2010 for the control period 31.12.2011 Photo Voltaic Rs. 15 per KWh for initial 12 years Rs. 5 per KWh for 13 to 25 years Rs. 12.54/unit levelised Thermal Rs. 11 per KWh for initial 12 years Rs. 4 per KWh for 13 to 25 years Rs. 9.29/unit levelised

Solar Power Policy - 2009


Gujarat has very high solar insolation/ radiation levels with more than 300 clear sunny days in North Gujarat & Saurashtra regionIdeal for Solar based generation In order to encourage and harness Clean and Green Solar based generation, Government of Gujarat notified Solar Power Policy 2009 Solar Power Policy 2009-Operative Period up to 31-3-2014 Target for setting up 500 MW Solar Power Projects during operative period of policy. Minimum capacity of Solar Power Project - 5 MW each

State Foray in Solar Power


To kick start on idea of promotion of nascent technology and to ensure large scale development of Solar Power, State has executed PPA of nearly 1000 MW capacity GETCO will develop evacuation infrastructure for evacuation of power from bus bar of Solar Power Project

Generation from above power projects expected to get commenced from 2011-12.
As against RPPO requirement of 200 MW power for FY 2011-12 & 400 MW power for FY 2012-13, State has tied up considerable Solar Power Idea is to bring development in manufacturing of Solar Power Project Equipment, to support nascent technology, to give scope for R&D, to bring economy of scale & utilmately to bring Solar Power at par with conventional source

State initiative - Solar Park


Concentrated zone for development of Solar Power & manufacturing of Solar components Located at Charanka, Patan on a stretch of approx 2000 hectre land 500 MW of Minimum Solar Capacity Targeted which may go up by another 20% on economic land utilization Till now, 15 Developers booked 176 MW Solar Capacity Solar Park developed by Gujarat Power Corporation Ltd (GPCL) GPCL provides Single Window Clearances to all Project Developers putting Power Projects in Solar Park Power evacuation from Solar Park through Smart Grid Transmission System to be set up by GETCO

Options Available for Solar Power


I Long Term PPA with DISCOMs
Preferential tariff determined by GERC a) PV Rs 15 /unit for 1st 12 yrs & Rs 5/unit 12-25 years b) Thermal Rs 11/unit for 1st 12 yrs & Rs 4/unit 12-25 years

II

Renewable Energy Certificates (REC) Route


Floor Price Forbearance Price Solar (REC) Avg Cost of Power Energy Injection Environment 12.00 2.60 9.40 15.00 2.60 12.40

Risk to Developer

83%

Other (REC) Avg Cost of Power Energy Injection Environment Risk to Developer

1.50 2.60

3.90 2.60 1.30 33%

Risk in REC Route


CERC Regulation - DISCOMs not entitled for REC For procuring Solar Power more than RPO
Solar Power Project Developers to chose REC Route

High Risk for Solar Power Project Developer REC Route


Nascent technology/ difficult to get funding for the Project Recovery in two part (a) energy value (b) environmental value (REC) REC value realization dependent on MCP of Power Exchange Forbearance REC price capped at Rs 15 85% of tariff is to be recovered through REC as compared to Other RE Source where only 30% of tariff is to be recovered through REC

State Utilites can be encouraged to Shoulder the risk To procure Solar power even above RPPO at Preferential tariff Provided, DISCOMs are made entitled for Solar RE Certificates Mitigate Risk of Project Developer & same time lessen burden to consumers of DISCOMs Other States meet their RPPO by purchasing the REC from DISCOMs

Policy & Regulatory issues- Renewable Sources


Need to introduce minimum RPO at National Level for promoting RE sources. Need to create Direct interstate/ intra state transmission evacuation (High way corridors) for RE sources from high potential to low potential states/regions to avoid grid disturbance. CERC Regulation not entitled DISCOMs procuring RE more than RPO for RE Certificates.

Thank You

GERC Tariff Orders


For Wind Project - GERC Order dated 30.1.2010 - Rs. 3.56 /Unit Earlier tariff was Rs. 3.37 / Unit from 11.8.2006. For Biomass based Project - Order dated 17.5.2010 & For Bagasee based Co-generation Project Order dated 01.6.2010
Biomass Proj Life With Accelerated depreciation 4.40 4.75 4.49 3.91 Without Accelerated Depreciation 4.45 4.80 4.54 4.10 Bagasee With Accelerated depreciation 4.55 4.90 4.65 4.11 Without Accelerated Depreciation 4.61 4.96 4.71 4.38

10 yrs 11-20 yr Levelised CERC

PPA of 10 MW with Amreli Power Project Ltd - (COD - 31.01.2011)

Solar Power Projects under Phase I


On 1st Aug 2009, GoG allocated 716 MW Capacity to 34 National & International Project Developers under Phase- I Solar Power PPA signed
Solar Photovoltaic Thermal Total No of PPAs 27 1 28 (In MW) 371.5 25 396.5

Solar Power Projects under Phase II


Under Phase II, in Oct 2010, GoG made allocation of 575 MW of Capacity to 59 Nos of Projects Developers to sign PPA with Developers Total 55 Nos of Developers have signed PPA for capacity of 562 MW
Location of Projects In Solar Park Other than Solar Park Total Nos 25 30 55 MW 276 286 562

Total Phase I & II PPA signed with 83 Nos of Developers for capacity of 958.5 MW

High Way Corridors direct inter state/regional transmission evacuation Wind Projects at Coastal States like Gujarat Wind Energy (RE) creates problem like uncertain generation, grid congestion, grid security etc Other land locked States like UP, MP, Bihar, Punjab, Chattisgarh etc lack of Wind potential and no facility of power procurement from RE Projects Inter State/Regional direct transmission lines for power evacuation from high potential RE Source State/Region to low potential

Renewable Sources - Transmission issues


Huge capacity addition in Wind generation results into instability in grid and create load management problem due to uncertainty in generation

Need direct connectivity with regional grid to enhance RE power injection opportunity and grid stability due to uncertainty in generation Requirement of Proper system for reliable forecast of availability of RE power especially wind and solar power

Details of Solar Power Project Developers who have signed PPA (Phase -I) Sr No 1 2 3 4 Name ACME Tele power Ltd. Adani Power Ltd AES Solar Energy Gujarat Private Limited Astonfield Solar (Gujarat) Pvt Ltd MW 15 40 15 11.5 Date of signing of PPA 31.5.2010 18.5.2010 29.5.2010 30.4.2010 Scheduled CoD 29.5.2011 31.12.2011

30.6.2011 (3 MW) 31.12.2011 (12 MW)


31.12.2011 31.12.2010 (1MW) 31.5.2011 (2MW) 30.11.2011 (2MW) 31.12.2010 (2.5MW) 31.3.2011 (2.5MW) 31.7.2011 (2.5MW) 30.11.2011 (2.5MW) 31.12.2011

Azure Power (Gujarat) Pvt Ltd

30.4.2010

6 7

Azure Power (Haryan) Pvt Ltd Cargo Mototrs

10 25

30.4.2010 30.4.2010

8
9 10 11 12 13 14 15

Dreisatz MySolar24 (P) Ltd


ESP Urja Pvt Ltd Euro Solar Private Ltd Inspira Solar Energy Limited Lanco Infratech Ltd Lanco Infratech Ltd Lanco Infratech Ltd MI MySolar24 (P) Ltd

15
5 5 15 5 15 15 15

25.10.2010
31.5.2010 30.4.2010 31.5.2010 29.4.2010 29.4.2010 29.4.2010 25.10.2010

31.12.2010
30.9.2011 31.12.2011 31.12.2011 30.9.2010 31.12.2011 31.12.2011 31.12.2010

Renewable sources - Transmission charges


Huge investment requirement in transmission/distribution sector for evacuation of power from renewable sources projects GERC proposed 1/3rd of charges applicable to normal Open Access customer for wheeling of renewable source power which is not sufficient to service capital investment Renewable power wheeled by industrial/ commercial consumers as cheaper source, 1/3rd Concessional charges and losses not sufficient to recover investment on creation of transmission System 2/3rd Charges are to be subsidized by other consumers including weaker sections of society Financial closure can not be achieved for Transmission projects till 100% transmission charges paid by users or Government commit upfront subsidy

Details of Solar Power Project Developers who have signed PPA (Phase -I) Sr No 16 17 Name Millenium Synergy (Gujarat) Private Ltd Moser Baer Energy & Development Ltd MW 10 15 Date of signing of PPA 29.5.2010 26.3.2010 Scheduled CoD 30.9.2011 30.6.2011 31.1.2011 31.3.2011 31.5.2011 30.6.2011 30.6.2011 (10MW) (10MW) (10MW) (10MW)

18
19

PLG Power Ltd


Precious Energy Services Pvt Ltd

40
15

7.5.2010
26.3.2010

20 21 22 23 24 25 26 27 28

Solar Semiconductor Pvt Ltd Solitaire Energies Pvt Ltd Sunborne Energy Gujarat One Pvt Ltd Sunkon Energy Pvt Ltd Tatith Energies Gujarat Pvt Ltd Unity Power Pvt Ltd WAA Solar Private Limted** Welspun Urja India Limited Zeba Solar Gujarat Pvt Ltd

20 15 15 10 5 5 10 15 10

30.4.2010 26.3.2010 31.5.2010 29.4.2010 22.6.2010 28.4.2010 21.5.2010 6.5.2010 30.4.2010

31.3.2011 (5MW) 30.6.2011 (5MW) 30.9.2011 (5MW) 31.12.2011 (5MW)


30.6.2011 31.12.2011 31.12.2011 30.11.2011 31.12.2011 31.12.2011 31.12.2011 31.12.2010

Total

396.5

Details of Solar Power Project Developers who have signed PPA under Phase - II
Sr No 1 2 3 Name Aatash Power Pvt. Limited Abellon Cleanenrgy Limited Alex Astral Power Private Limited MW 5 3 25 Date of signing of PPA 09/12/2010 07/12/2010 06/12/2010 Scheduled CoD 31/12/2011 31/12/2011 31/12/2011

4
5 6 7 8 9 10 11 12

Ambit Advisory services Private Limited


APCA Power Private Limited Aravali Infrapower Limit Avatar Solar Backbone Enterprises Limited Claris LifeScience Ltd Corner Stone Energy Private Limited EI Technologies Pvt. Ltd Emami Cement Limited

5
5 5 5 5 2 5 1 10

07/12/2010
04/12/2010 10/12/2010 18/12/2010 30/11/2010 08/12/2010 06/12/2010 29/11/2010 07/12/2010

31/12/2011
31/12/2011 31/12/2011 31/12/2011 31/12/2011 31/12/2011 31/12/2011 31/12/2011 31/12/2011

13
14 15 16 17 18 19 20

EMCO Limited
Essar Power Limited Ganeshvani Merchandise Private Limited Ganges Green Energy Private Limited GHI Energy Private Limited GMR Gujarat Solar Power Pvt. Ltd Green Infra Solar Energy Limited GSPC Pipavav Power Company Limited

5
1 5 25 10 25 10 5

09/12/2010
04/12/2010 16/12/2010 09/12/2010 09/12/2010 08/12/2010 06/12/2010 18/12/2010

31/12/2011
30/06/2011 31/12/2011 31/12/2011 31/12/2011 31/12/2011 31/12/2011 31/12/2011

Details of Solar Power Project Developers who have signed PPA under Phase - II
Sr No
21 22 23 Name Gujarat Industries Power Company Limited Gujarat Mineral Development Corporation Limited Gujarat Power Corporation Limited MW 5 5 5 PPA signed 18/12/2010 01/12/2010 18/12/2010 Scheduled CoD 31/12/2011 31/12/2011 31/12/2011

24
25 26 27 28 29 30 31 32

Harsha Engineers Limited


Hiraco renewable Energy Pvt Ltd India Solar Ray Power Private Limited Industrial Power Infrastructure Limited Integrated Coal Mining Limited Jaihind Projects Limited Kemrock Industries and Exports Limited Kiran Energy Solar Power Private Limited Konark Gujarat PV Pvt. Limited

1
20 10 25 9 5 10 20 5

04/12/2010
04/12/2010 06/12/2010 18/12/2010 07/12/2010 09/12/2010 09/12/2010 09/12/2010 09/12/2010

01/09/2011
31/12/2011 31/12/2011 31/12/2010 31/12/2011 31/12/2011 31/12/2011 31/12/2011 31/12/2011

33
34 35 36 37 38 39 40

Louroux Bio Energies Limited


MBH Power Private Limited Monnet Ispat & Energy Limited Mono Steel (India) Ltd. NKG Infrastructure Limited Rajesh Power Services Private Limited Rasna Marketing Services LLP Responsive Sutip Limited

25
1 25 10 10 1 1 25

06/01/2011
09/12/2010 10/12/2010 13/12/2010 29/11/2010 09/12/2010 08/12/2010 29/11/2010

31/12/2011
31/12/2011 31/12/2011 31/12/2011 31/12/2011 31/12/2011 31/12/2011 31/12/2011

Details of Solar Power Project Developers who have signed PPA under Phase - II
Sr No
41 42 43 Name Roha Energy Private Limited S J Green Park Energy Private Limited Sand Land Real Estates Pvt Ltd MW 25 5 25 PPA signed 09/12/2010 09/12/2010 29/11/2010 Scheduled CoD 31/12/2011 31/12/2011 31/12/2011

44
45 46 47 48 49 50 51 52

Saumya Construction Pvt. Limited


Som shiva Impex Limited Sun Edison Energy India Private Limited SunClean Renewable Power Pvt. Ltd. Surana Telecom & Power Limited Taxus infrastructure & Power project Pvt. Ltd Toss Financial Services Pvt. Limited Ujjawala Power Private Limited Universal Solar System

2
1 25 25 5 5 2 25 2

07/12/2010
06/12/2010 09/12/2010 08/12/2010 01/12/2010 08/12/2010 10/12/2010 10/12/2010 22/11/2010

31/12/2011
31/12/2011 31/12/2011 31/12/2011 15/12/2011 31/12/2011 31/12/2011 31/12/2011 31/12/2011

53
54 55

Visual Percept Solar Projects Private Limited


Yantra eSolarIndia Private Limited ZF Steering Gear (India) Limited Total

25
5 5 562

15/12/2010
09/12/2010 06/12/2010

31/12/2011
31/12/2011 31/12/2011

Important provisions of Solar PPA


Term of the Agreement: 25 years

Tariff: As determined by GERC through Order dated 29.1.2010


Applicability of Tariff : Projects commissioning on or before 31.12.11. Solar Project operates as Base load-generating station. Project Developers are allowed to migrate to Jawaharlal Nehru National Solar Mission (JNNSM) of Government of India Evacuation Facility: 5MW & above: Undertaken by GETCO Below 5MW: by DISCOM, when evacuation is planned below 66KV

Important provisions of Solar PPA


PPA provides for ABT provisions as amended from time to time by Regulators and made applicable to Solar Projects in addition to metering. As per existing Regulations, energy injected by Solar projects will be considered as post-facto scheduled. Letter of Credit may be provided to Developers for above 5 MW capacity Sharing of CDM benefit on gross basis between Power Project Developers and GUVNL starting with 100% to Developer in 1st year and thereafter reducing by 10% every year till sharing becomes 50-50%

Important provisions of Solar PPA


Change in Share holding pattern: Not allowed up to 5 yrs (except listed Company) Technical Partner (s) with equity contribution up to 49% is allowed with prior approval of GoG Liquidated Damage for delay in commissioning of project : Rs. 10000/day/MW for first 60 days Rs 15000/day/MW thereafter

Liquidated Damages not applicable for delay in Commissioning of Project on account of delay in evacuation facilities

Important provisions of Solar PPA


Due date for payment is 30 days from receipt of invoice
Late Payment Charges applicable for delay in payment beyond due date @ 7% plus SBI base rate per annum, on a week or part thereof Rebate applicable for early payment before due date @ 7% plus SBI base rate per annum, on a week or part thereof In case of Force Majeure, neither party is responsible or liable for delay or failure in performance of its obligation

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