9 MW Solar-Energy PDF

CORPORATE KNOWLEDGE PARTNERS
DETAILED PROJECT REPORT

5.00 MW
Prepared for
FED SOLAR PRIVATE LIMITED
Prepared by
CORPORATE KNOWLEDGE PARTNERS PVT.LTD.

209, Kirti Sikhar Building, Janak puri Dist. Centre
New Delhi- 110058, INDIA
October 2010
Detailed Project Report – 5.00 MW Solar Power
TABLE OF CONTENTS
Chapter No. Particulars Page No.

Salient Features 6
1 Introduction 9
1.1 Global Energy Scenario 10
1.2 Indian Energy Scenario 13
1.3 Renewable Energy in India 14
1.4 Jawaharlal Nehru National Solar Mission 16
2 Project Summary 18
2.1 Project Information 19
2.2 Solar Power Project 19
3 Economic Scene of Project Location – Growth and 21
Construction
3.1 About GURDASPUR 22
3.2 Economy of PANJAB 22
4 Power Scenario in PANJAB 24
4.1 Installed Capacity in PANJAB 25
4.2 Utilities in PANJAB 26
5 Need of the Project 28
5.1 Power Supply Arrangements 29
5.2 Need of Solar Project 29
5.3 Power Generation Scheme 30
5.4 Typical System Components of Grid Connect SPV
System 31
6 Survey and Investigation 36
6.1 Project Location 37
7 Power Potential Studies 38
7.1 Solar Radiation - India 39
7.2 Solar PV Modules Types 40
7.3 Comparison Between Crystalline & Thin Film Technology 44
7.4 Technology Selected for Project 45
7.5 Solar Radiation at Project Site 45
7.6 Solar Power Generation 46
8 Design of Power Plant Electrical & Mechanical Works 48
8.1 Project Design 49
8.2 Suitability of SPV Power plant unit to operate in parallel
with grid 50
8.3 Safety Regulations 51
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Chapter No. Particulars Page No.

9 Design Criteria 52
9.1 Solar Photovoltaic (SPV) Module 53
9.2 Module Mounting Structure 53
9.3 Balance of Systems 53
9.4 LT Power Interfacing Panel 55
9.5 Computer aided Data Acquisition System 55
9.6 Lightning & Over Voltage Protection 56
9.7 Earthling system 56
9.8 Energy Meter 57
9.9 Protective Relays 57
9.10 Power Evacuation Arrangement 57
10 Construction Material – Requirement, Availability and
Suitability 58
10.1 Materials 59
10.2 Procurement Process 59
10.3 Bills of Materials 59
10.4 List of Spares 60
11 Construction Methodology and Equipment Planning 61
11.1 Overview 62
11.2 System Design Philosophy 62
11.3 Operation Requirements 63
11.4 Maintenance Requirements 64
11.5 Preventive Maintenance (Specific Guidelines) 65
12 Construction Programme and Schedule 67
12.1 Project Implementation Strategy 68
12.2 Project Execution 68
12.3 Progress Reporting 68
13 Project Organization 69
13.1 Staff 70
13.2 Training 70
14 Environmental and Ecological Aspects 71
14.1 Environmental Impact 72
14.2 Impact During Construction 72
14.3 Impact During Operation 73
15 Cost Estimates 74
15.1 Project Costing 75
16 Financial and Economic Evaluation 76
16.1 Financial Analysis Assumptions 77
16.2 Project Financials 78
16.3 Sensitivity Analysis 79
17 Recommendations 80

ANNEXURES
Annexure No. Particulars

I Jawaharlal Nehru National solar mission
II Mission Resolution by Ministry of New and Renewable Energy
III Single Line Diagram of Power Supply System
IV Location map of GURDASPUR
V Seismic Zone – Map of India
VI Photographs of the project site
VII RET Screen Simulation Model
VIII Array Layout
IX Technical Specification of the Module
X Specification sheet Power Conditioning Unit (PCU)
XI Single Line Diagram of Project
XII Provisional Timeline of the project
XIII CERC guidelines for tariff calculation of SPV projects
XIV Project Financials
XV

ABBREVATIONS
AC Alternating Current
a-Si Amorphous Silicon
CdTe Cadmium Telluride

CEA Central Electricity Authority
c-Si Crystalline Silicon
CIGS Cadmium Indium Gallium Selenide
DC Direct Current
DPR Detailed Project Report
GW Giga Watt
HSE Health, Safety and Environment
IREDA Indian Renewable Energy Development Authority
KW Kilo Watt
kWp Kilo Watt peak
kV Kilo Volt
MkWh Million Kilo Watt hour

MWp Mega Watt peak
MNRE Ministry of New and Renewable Energy
MPPT Maximum Power Point Tracking
O&M Operation & Maintenance

PCU Power Conditioning Unit
PLF Plant Load Factor
PPA Power Purchase Agreement
PV Photovoltaic
PWD Public Works Department
RE Renewable Energy
RES Renewable energy Sources : includes Small Hydro Project (SHP),
Biomass Gas(BG), Biomass Power (BP), Urban & Industrial waste
Power(U&I), and Wind Energy.
RPS Renewable Purchase Specification

SEB State Electricity Board
SERC State Electricity Regulatory Commissions
SPV Solar Photovoltaic
Wp Watt Peak

SALIENT FEATURES
1. Location
State Punjab
District : Gurdaspur
TownName of Building : Batala
o
Latitude : 28 34’40”
Longitude : o
77 13’01”
2. Climate and Site Conditions
Elevation above MSL : 242 Meter Delhi

Ambient Temperature : Max. 46ºC
o Average Ambient : 40ºC
o Minimum Ambient : 2ºC

Relative Humidity
o Average Humidity : 65%
o Peak Humidity : 90%
Wind Load : As per IS 875
Seismic data : As per IS 1893 (Zone IV)
3. Area available
Area available : 30 Acres
4. SPV Power Plant
Output : 5.00 MWp

No. of modules : 18200
No. of modules in series : 100
No. of parallel combination : 910
No of AJBs : 200
No of MJBs : 40
No of PCUs : 20

5. Technical details of a SPV Module
PV Module type : Mono Crystalline

Make : WEBSOL,KOLKATA
Model :
Physical Dimensions W 2300
o Length with frame :
1980 mm
o Width with frame : 997 mm
o Thickness : 43 mm
Electrical Parameter
o Maximum Power Rating : 230-240 Wp
o Current at peak power : 7.84 A
o Voltage at peak power : 35.8 V
o Short Circuit Current : 8.4 A
o Open Circuit Voltage : 45.0 V
Module Efficiency : 19.3 %
6. Mounting Arrangement
Mounting : Fixed Type

Surface azimuth angle of
o
PV Module : 180
o
Tilt angle(slope) of PV Module : 28.0
7. Inverter/ Power Conditioning Unit (PCU)
Number of units : 20
Rated Capacity : 250 kWp
Input Voltage range : 880 V (Max.)
Output Voltage : 400 V +/- 10 %
Frequency : 50 Hz
Efficiency : 96.10 %
8. Grid Connection Details
Electrical parameters for interconnection

o Voltage : 11 kV
o Phase : 3 Ph
o Frequency : 50 Hz
9. Annual Energy Generation

Annual Energy : 8.33MU(Million KWH
Plant Load factor : 19 %

10. CDM Benifits
Estimated CER’s per annum : 7689 CER per Annum

CER Rate Considered : 12 Euro per CER
Exchange Rate : Rs 60.00 per Euro
Grid Emission factor : 0.923 tonnes of CO 2 per MWh
CER Income per annum : Rs. 55.36 Lacs per annum
11. Financials
Estimated Cost (Rs. Crore) : 84.5

Levelised Tariff (Rs/kWh) : 17.9
IRR : 22%
Payback Period : 10Years
DSCR : 1.62
12. Power Purchase Agreement

PSEB is willing to purchase the power generated subject to approval of tariff,
scheduling of power and conditions regarding transmission wheeling, metering
and allied issues from PERC. The exportable surplus power from these units will
be thus transmitted and wheeled via the grid to P S E B account and
distributed to its consumers. The quantum of power is marginal and will be
easily absorbed into the grid.

Chapter - 1
INTRODUCTION

1.1 GLOBAL ENERGY SCENARIO

Power is a vital input for economic development and sustenance of modern
economy. Power is also important for eradication of poverty. However, providing
adequate and clean power to face the ever-growing environmental degradation has
been a great challenge of the current century. Basically the objective of sustainable
development is also the same.
The inevitable increase in the use of fossil fuels to be in step with the economic growth
has associated side effects of threat to energy security of the country and environmental
degradation through climate change. World population is expected to double by the
middle of the 21st century (Global Energy, 1998) and economic development needs to
continue. It is expected that this will result in a 3–5 fold increase in world economic
output by year 2050 and a 10–15 fold increase by year 2100. Some studies predict
that despite rapid economic development adequate energy services may not be
available to one and all. A 1.5 to 3 fold increase in primary energy requirements by
2050 and a 2 to 5 fold increase by 2100 is expected.
As early as 1896, the Swedish scientist Svante Arrhenius had predicted that human
activities would interface with the way the sun’s interaction with the earth, resulting in
global warming and climate change. The prediction is becoming more or less true
mostly due to the indiscriminate use of fossil fuel. The following issues are
considered to be of global significance.
 Ozone layer depletion
 Land degradation
 Air and water pollution
 Sea level rise
 Loss of bio–diversity
A very important aspect of the global environment degradation is that it affects all on a
global scale irrespective of country, race or region.
Fossil fuel combustion is a major contributor to harmful emissions which
aggravate the Ozone layer depletion. Sulphur, nitrogen oxides, carbon monoxide, and
suspended particulate matter are the main pollutants. Acid deposition from fuel
combustion is causing significant damage to natural systems, crops etc., affecting
entire eco–systems and crossing national boundaries. In many regions, acidification
has diminished the productivity of forests, fisheries and farm lands. Carbon dioxide
(CO 2) produced by fossil fuel combustion, is the biggest source of the anthropogenic
greenhouse gas emissions that are changing the global climate system. To achieve a
stable atmospheric CO2 concentration at any level would require that CO2 emissions be
cut by more than half from current levels, maybe within the next few decades.
However, if the present trend is allowed to continue, current CO2 emissions will lead to
more than a doubling of atmospheric concentration before 2070.

1.1.1 Sustainable Development

The World Commission on Environment and Development (the Brundtland
Commission) defines sustainable development as “development that meets the needs
of the present without compromising the ability of future generations to meet their
own needs”. While the development needs are recognized, it emphasizes that it
must be based on the efficient and environmentally responsible use of all of
society’s scarce resources – natural, human and economic. The Multiple Objectives
of Sustainability is indicated in Figure 1
Figure 1
Sustainable Development
Promoting Improving Sustaining Promoting Meeting

Equity Quality of natural Health of International
Life and well resources people and obligations
being Ecos ystem
1.1.2 Oil Depletion

It is generally accepted that the world runs on oil. As the oil is termed as ‘fossil fuel’,
the consensus is that it was formed in the past which means that the depletion has
started the day the first barrel was consumed.
The debate between the economists and natural scientists withstanding, the economist
maintaining that the reserves are constantly renewed as they are extracted as
Minerals are inexhaustible and will never be depleted and the natural scientists
maintaining that an oilfield contains what it contains, because it was filled in the
geological past. But the general pragmatic thinking is that the reserve will not last long.
According to Mr. Colin J. Campbell, Founder and Honorary Chairman of the Association
for the Study of Peak Oil and Gas (ASPO) , the watershed for oil comes around 2010,
followed five years later by the peak of oil and natural gas combined. The base case
scenario projected by him (please refer Figure 2 below) points to 2010 but could come
sooner, ac co rd ing to him, if economic recovery should drive up the demand for oil.

Figure 2: All Hydrocarbons Base Case Scenario 2002
Oil, which provides about 40% of global energy needs and about 90% of
transport fuel, is set to start to decline within about ten years. Mr. Campbell warns
that world will have to learn to use less of oil.
World demand drives the rate of depletion. The scenarios projected earlier
assumes that demand will be on average about flat, giving a plateau of
production until the five swing countries of the Persian Gulf are no longer able to offset
the decline of the rest of the world. According to Campbell, this time should be
expected to be reached around 2010 when the demand is placed on these swing
countries to produce over 20 Mb/d (million barrels a day) or about 36% of world
demand. The world production would then have to commence its long term decline
(World Hubbert Peak) he predicts.
1.1.3 Role of Renewable Energy

Renewable energy sources have the potential to provide energy services with zero or
almost zero emissions of both air pollutants and green house gases. It is estimated that
renewable energy sources supply 18% of total world energy demand. New
renewable energy sources (other than traditional biomass) contributed to 8.4% of
the world’s energy consumption in 2006 as shown in Figure 3. Solar photovoltaic are
growing at a rapid pace and is expected that it would reach about 10,000 MW of world
production by year 2010.
It is worth mentioning here that each gigawatt – hour of electricity generated by Solar
Photovoltaic, rather than burning coal, prevents up to 820 tons of CO 2 emission.

SE LE CT ED IN DI CA TO RS AN D TO P FI VE CO U NT RI ES
SELECTED INDICATORS 2007 © 2008 © 2009
Investment in new renewable capacity (annual) 104 © 130 © 150 billion USD
1
Renewables power capacity (including only small hydro) 210 © 250 © 305 GW
Renewables power capacity (including all hydro) 1,085© 1,150 © 1,230 GW
Hydropower capacity (existing, all sizes) 920 © 950 © 980 GW
Wind power capacity (existing) 94 © 121 © 159 GW
Solar PV capacity, grid-connected (existing) 7.6 © 13.5 © 21 GW
Solar PV production (annual) 3.7 © 6.9 © 10.7 GW
Solar hot water capacity (existing) 125 © 149 © 180 GWth
Ethanol production (annual) 53 © 69 © 76 billion liters
Biodiesel production (annual) 10 © 15© 17 billion liters
Countries with policy targets 68 © 75 © 85
States/provinces/countries with feed-in policies 2 51 © 64 © 75
States/provinces/countries with RPS policies 50 © 55 © 56
States/provinces/countries with biofuels mandates 53 © 55 © 65
TOP FIVE COUNTRIES #1 #2 #3 #4 #5
Annual amounts for 200 9
New capacity investment Germany China United States Italy Spain

Wind power added China United States Spain Germany India
Solar PV added (grid-connected) Germany Italy Japan United States Czech Republic
Solar hot water/heat added3 China Germany Turkey Brazil India
Ethanol production United States Brazil China Canada France
Biodiesel production France/Germany United States Brazil Argentina
Exi sting capaci ty as of end -2009
Renewables power capacity China United States Germany Spain India
(including only small hydro)

Renewables power capacity China United States Canada Brazil Japan
(including
Wind powerall hydro) United States China Germany Spain India
Biomass power United States Brazil Germany China Sweden
Geothermal power United States Philippines Indonesia Mexico Italy
Solar PV (grid-connected) Germany Spain Japan United States Italy
3
Solar hot water/heat China Turkey Germany Japan Greece

Figure 3: Renewable Energy Share of Global Final Energy Consumption 2008
1.2 INDIAN ENERGY SCENARIO

st
The total installed capacity of electricity in India as on 31 December 2009 was
1,56,092.23 MW; the Peak Demand was 1,16,281 MW and the Demand met was 95,783 MW.
This results in a Peak Deficit of 13,938 MW (12.6%).
According to the 16th Electric Power Survey, over 1,00,000 MW additional generation
capacity needs to be added by 2012 to bridge the gap between demand and supply of
st
power. Out of the total installed capacity of 1,56,092 MW as on 31 December 2009,
63.97% was thermal power, 2.65% was of nuclear power, 23.63% was hydro, and
about 9.75% was renewable energy based.
Figure 4 : All India Generating Installed Capacity ( Mw )

(As On 31-12-09 )
Source: Central Electricity Authority
The Electricity Act, 2003, is intended to consolidate the laws relating to the generation,

transmission, distribution, trading and use of electricity and generally for taking
measures conducive to the development of electricity industry promoting
competition therein, protecting interest of consumers and supply of electricity to all
areas. Under paragraph 3 (1) of part 2 – ‘National Electricity Policy and Plan’ of The
Electricity Act, 2003, it is provided that, “the Central Government shall from time to time,
prepare the national electricity policy of tariff policy, in consultation with the state
Governments and the Authority for development of the power system based on optimal
utilisation of resources such as coal, natural gas, nuclear substances or materials,
hydro and renewable sources of energy”.
Under paragraph 6.4 “Non-Conventional sources of energy generation including co-
generation, of the Tariff Policy, it is provided that, “Pursuant to provisions of section
86 (i) (e) of the Act, the Appropriate Commission shall fix a minimum percentage for
purchase of energy from such sources taking into account availability of such
resources in the region and its impact on retail tariffs. Such percentage for purchase
of energy should be made applicable for the tariffs to be determined by the SERCs latest
by April 1, 2006.
1.3 RENEWABLE ENERGY IN INDIA

India has a vast supply of renewable energy resources, and it has one of the largest
programs in the world for deploying renewable energy products and systems.
Indeed, it is the only country in the world w i t h an exclusive Ministry for

Renewable Energy development, the Ministry of New and Renewable Energy (MNRE).
Since its formation, the Ministry has launched one of the world’s largest and most
ambitious programs on renewable energy. Based on various promotional efforts put in
place by MNRE, significant progress is made in power generation from renewable
energy sources.
Renewable energy technologies based on the inexhaustible resources of sunlight,
wind, water and biomass are considered to offer sustainable energy alternatives to a
world beset by serious environmental problems and volatile fossil fuel politics. An
increasing share of global energy needs is expected to be met by renewable in the years
ahead. India is abundantly endowed with renewable energy resources i. e. , solar energy,
wind energy, biomass and small hydro, widely distributed across the country, and can be
utilized through commercially viable technologies to generate power.
Around 15,225 MW (around 9.75 % of total installed capacity in the country) capacity of
Renewable Energy projects has been installed in the country. India is planning to add
about 14,500 MW power generating capacity from renewable in the 11th plan (2007-2012).
The environment has become the main driving force behind efforts in use of
renewable energy projects and energy efficiency & conservation. Evidence is
accumulating that the burning of fossil fuels contributes to global warming and climate
change.

The demand for power supply has been increasing considerably due to more & more
industrialization, development of various industries etc. and the need to bring
irrigation facilities to the farms in the dry zones, increased dependency on power in
domestic sector, to meet minimum needs program of electrifying the villages, etc.
The need for harnessing renewable source of energy has, therefore, gained
increased importance not only to meet the growing demand for energy but also for the
fact that sources like coal, oil, petroleum products and other hydro carbons are
fast getting depleted in the world and particularly in India.
The total power generation capacity addition planned for the Tenth and Eleventh Five Year
Plan (2002-2012) is around 1,00,000 MW of which 10% (i.e. 10,000 MW) was aimed as the
share of renewables such as Wind, Solar, Biomass and Small Hydro. India is a tropical
country and has abundant solar insolation throughout the country for most part of the
year. As the seasonal variation is marginal, solar energy can be harnessed economically
throughout the year.
Taking the above factors into consideration, Government of India had formulated a
policy frame work for enhancing the share of renewable energy in the total energy mix
of the country known as National Action Plan on Climate Change (NAPCC).
On June 30, 2008, Prime Minister Manmohan Singh released India’s first NAPCC
outlining existing and future policies and programs addressing climate mitigation and
adaptation. The plan identifies eight core “National Missions” running through
2017 and directs ministries to submit detailed implementation plans to the Prime
Minister’s Council on Climate Change.
Emphasizing the overriding priority of maintaining high economic growth rates to raise
living standards, the plan “identifies measures that promote our development
objectives while also yielding co-benefits for addressing climate change effectively.”
It says these national measures would be more successful with assistance from
developed countries, and pledges that India’s per capita greenhouse gas emissions
“will at no point exceed that of developed countries even as we pursue our
development objectives.”
ALL INDIA REGI ON WISE GENER ATING INSTALLED CAPAC ITY (MW) OF 6. POW ER UTIL ITIES
INCLU DING ALLOC ATED SHARE S IN JOINT AND CENTRAL SECTOR UTILI TIES
(As on 30 -09-10 )
SL. REGION THERMAL Nuclear HYD RO R.E.S.@ TOTAL

(Renewable)
COA L GAS DSL TOTAL
NO.
(MNRE)
1 Northern 22520.00 3563.26 12.99 26096.25 1620.00 13622.75 2690.62 44029.62
2 Western 29155.50 8143.81 17.48 37316.79 1840.00 7447.50 4849.93 51454.22
3 Southern 19172.50 4690.78 939.32 24802.60 1100.00 11260.03 8329.67 45492.30
4 Eastern 17035.38 190.00 17.20 17242.58 0.00 3882.12 334.91 21459.61
5 N. East ern 60.00 787.00 142.74 989.74 0.00 1116.00 218.19 2323.93
6 Islands 0.00 0.00 70.02 70.02 0.00 0.00 6.10 76.12
7 All India 87943.38 17374.85 1199.75 106517.98 4560.00 37328.40 16429.42 164835.80

1.4 JAWAHARLAL NEHRU NATIONAL SOLAR MISSION

On January 11, 2010, Prime Minister Manmohan Singh has launched the
Jawaharlal Nehru National Solar Mission (JNNSM) on under the brand name “Solar
India”.
The mission is one of the eight National Missions of NAPCC. The mission targets are as
follows:
 To create an enabling policy framework for the deployment of 20,000 MW of
solar power by 2022.
 To ramp up capacity of grid-connected solar power generation to 1000 MW

within three years – by 2013; an additional 3000 MW by 2017 through the
mandatory use of the renewable purchase obligation by utilities backed with a
preferential tariff. This capacity can be more than doubled – reaching 10,000MW
installed power by 2017 or more, based on the enhanced and enabled
international finance and technology transfer. The ambitious target for 2022 of
20,000 MW or more, will be dependent on the
‘learning’ of the first two phases, which if successful, could lead to conditions of
grid-competitive solar power. The transition could be appropriately up scaled,
based on availability of international finance and technology.
 To create favorable conditions for solar manufacturing capability, particularly

solar thermal for indigenous production and market leadership.
 To promote programmes for off grid applications, reaching 100 MW by 2017 and
2000 MW by 2022.
 To achieve 15 million sq. meters solar thermal collector area by 2017 and 20
million by 2022
 To deploy 20 million solar lighting systems for rural areas by 2022.
Sr. Application Target for Target for Target for

No segment Phase I Phase 2 Phase 3
(2010-13) (2013-17) (2017-22)
1 Solar collectors 7 million sq. m 15 million sq. m 20 million sq. m
2 Off grid solar 200 MW 1000 MW 2000 MW
applications

3 Utility grid power, 1,000 – 2000 4000 – 10,000 20000 MW

including roof top MW MW
Proposed Road Map for the National Solar Mission
The mission document is attached as Annexure I.

Government has also decided to approve the implementation of the first phase of the
JNNSM during 2009-2013 and the target to set up 1,000 MW grid connected (33 KV and
above) solar plants, 100 MW of roof top and small solar plants connected to LT/11
KV grid and 200 MW capacity equivalent off-grid solar applications in the first
phase of the Mission, till March, 2013 and an amount of Rs. 4337 crore has been
approved for these activities.
Implementation of the target of 1,000 MW of grid connected (33 KV and above) solar
power plants will be through NTPC Vidyut Vyapar Nigam (NVVN), a trading subsidiary of
NTPC Limited. NVVN will directly purchase the solar power from the project developers
as per the norms and guidelines fixed in this regard.
100 MW capacity of solar roof top and small grid connected solar power plants will be
connected to LT/11 KV grid of the distribution utility and the solar power will be
directly purchased by the distribution utilities as per the norms and guidelines
fixed in this regard.
Copy of Mission Resolution by Ministry of New and Renewable Energy is
attached as Annexure II

Chapter - 2
PROJECT SUMMARY

2.1 PROJECT INFORMATION

 5.00 MWp capacity Solar PV Power plant at Village Ladhupur, Teshil - Gurdaspur,
Distt – Gurdaspur , PANJAB STATE. The available Land area is 30 Acres
 Available nearest grid substation for power evacuation is of 66 KV at a distance of

around 2 KM located in the Village, Kahnuwan, Teshil & Distt, Gurdaspur.
2.2 SOLAR POWER PROJECT

 One no. Grid Connect Solar Power Plant having Generation capacity of 5 .00
MWp at 33 KV, 50 Hz A.C. supply system will be installed.
 These specifications specifically cover requirements for Grid Connected Solar

Power Plant along with their accessories only. The Grid Connect Solar Power
Plant will generate power through solar energy and supply clean and green
electricity to the grid without any damage to the existing ceiling/roof and the
structure.
 The minimum array capacity at STC will be of 5.00 MWp at the time of
installation and after 1 year of operation.
 The total capacity of the 5.00 MWp solar power plant is divided into sub arrays of
230kWp solar power capacity to feed into the 250KW rating power conditioning
units. 24V, 230Wp mono crystalline solar modules 18200 nos. used for this project,
connecting 100 nos in series and such 910 strings in parallel using Array Junction
boxes and Main Junction boxes.
 The Junction boxes shall be dust, vermin and water proof and each array
junction boxes shall have suitable reverse blocking diodes and MCB’s for surge
protection.
 These solar modules are mounted on single module mounting structures

specially designed for fixing over Kalzip railings. The outputs of the Main
Junction Boxes connected to the Power Conditioning Units (PCU) for converting
the DC power into AC power and then export the solar energy into the grid
through LT panel, Transformer and HT Panel.
 The project is estimated to generate about 8.33 MUs per annum for 25 years.
 The p r o j e c t also plans to avail carbon credits under clean development

mechanism.

Chapter - 3
ECONOMIC SCENE OF PROJECT LOCATION –

GROWTH AND CONSTRUCTION

3.1 ABOUT PUNJAB

 Punjab, the richest state in India that throbs with the vibrant culture of equally
vibrant people, has always moved on the path of prosperity despite all odds. With its
inimitable style of transforming every potential opportunity into a success story
through enterprise and endeavor Punjab has always been at the forefront in the
development story of India. Punjab – The Food basket and Granary of India", has
been awarded National Productivity Award for agriculture extension services for
consecutively ten years from 1991-92 to 1998-99 and 2001 to 2003-04.
 The geographical area of Punjab is 50,362 sq. km (1.5% of India's total IT lies in
North-west of India. Its average elevation is 300 m from the sea level.
 Punjab extends from the latitudes 29.30° North to 32.32° North and longitudes 73.55°
East to 76.50° East. It is bounded on the west by Pakistan, on the north by Jammu
and Kashmir, on the northeast by Himachal Pradesh and on the south by Haryana
and Rajasthan.
 Due to the presence of a large number of rivers, most of the Punjab is a fertile plain.
The southeast region of the state is semi-arid and gradually presents a desert
landscape. A belt of undulating hills extends along the northeastern part of the state
at the foot of the Himalayas.
 Punjab is situated in the North-Western part of India. The Punjab climate is
determined by the extreme hot and extreme cold conditions. The region lying near
the foot hills of Himalayas receive heavy rainfall whereas the region lying at a distant
from the hills, the rainfall is scanty and the temperature is high. Punjab’s climate
comprises of three seasons. They are the summer months that spans from mid April
to the end of June. The rainy season in Punjab is from the months of early July to
end of September. The winter season in Punjab is experienced during the months of
early December to the end of February. The transitional seasons in Punjab are the
post monsoon season and the post winter season.
 The climate of the plains is excessively hot and dry between April and August, with
temperatures as high as 49° C. Winters are cool with some frosts. The average
temperature in January is 13° C, although at night the temperature sometimes lowers to
freezing. In June the average temperature is 34° C occasionally climbing as high as 45°
C.
 The rains of the monsoon season begin at the end of June and continue till August.
Annual rainfall ranges from about 915 mm (about 36 in) in the north to 102 mm (4 in) in
the south. Annual average rainfall ranges from 1250 mm in the north to 350 mm in the
southwest. More than 70 percent of the annual rainfall occurs during the monsoon
season from July to September.
 Much of Punjab lies in the Punjab Shelf, bounded on the east by the Delhi-Haridwar
Ridge and on the south by the Delhi-Lahore Ridge. Most earthquakes in this region are
shallow though a few earthquake of intermediate depth have been recorded in Punjab.

However, it must be stated that proximity to faults does not necessarily translate into a
higher hazard as compared to areas located further away, as damage from earthquakes
depends on numeros factors such as subsurface geology as well as adherence to the
building codes.
 The districts of Firozpur, Faridkot, Patiala, Mansa, Sangrur and Bhatinda lie in
Zone III. The districts of Amritsar, Gurdaspur, Hoshiarpur, Jalandhar, Kapurthala,
Ludhiana, and Rupnagar lie in zone IV.
 The per capita income at current prices has been estimated at Rs.30,701 in 2004-05
as against Rs.28,607 in 2003-04 showing an increase of 7.32 percent. The Gross State
Domestic Product (GSDP) at Constant (1993-94) prices during 2004-05 was Rs.48532
crores (Q) and the provisional estimates of GSDP for the year 2003-04 was Rs. 46049
crores.
 Punjab which has done remarkably well in the field of agriculture is now well on its
way to rapid industrialization through coordinated development of Small, Medium
and Large scale industries. Punjab has predominance of small-scale industry; thanks
to the indomitable spirit and entrepreneurial skills of the Punjabis (people of Punjab).
0.2 million small scale industries and 600 large and medium scale industries
functioning in the state involve fixed capital investment of Rs.54000 Million and
Rs.20400 Million respectively.
3.2 GURDASPUR DISTRICT

 The Gurdaspur district is the northern most district of Punjab state. It falls in the
Jalandhar division and is sandwitched between river Ravi and Beas. It shares
common boundaries with Kathua district of Jammu and Kashmir state in the north,
Chamba and Kangra districts of Himachal Pradesh in the north-east, Hoshiarpur
district in the south-east, Kapurthala district in the south, Amritsar district in the
south west and Pakistan in the north west.
 The district lies between north-latitude 310-36' and 320-34' and east longitude 740-56'
and 750-24'
 Total area of the district is 3562 Sq.Km.
 Three Tehsils of the district namely Gurdaspur, Batala and Dera Baba Nanak are
plain and similar to the rest of the Punjab plains in structure, genesis lithology and
surface configuration out the northern most part of the district, i.e. Dhar and
Pathankot tehsils are in the foot of Shivalik hills.
 The landscape of the Gurdaspur district has varied topography comprising the hilly
tract, undulating plan, the flood plains of the Ravi and the Beas and the up land plain.
The hilly tract covering the north-eastern parts of Pathankot and Dhar tehsils are
typically land topography, ranging in elevation from about 381 to 930 metre above
sea level. From north to south the tract consists of three small ranges running in

north-west to south east direction – The Siali Dhar-Dangahri Dhar range the Dhaula
Dhar-Nag Dhar range and the Rata Dhar range. The Siali Dhar-Dangahri Dhar range
lies to the extreme north. In its western part Siali Dhar is about 931 metres above sea
level at its highest point and in the eastern part about 959 metres. This range is
highly dissected by numerous streams. South of this is situated the Dhaul Dhar-Nag
Dhar which is about 13 km long and at places about 2.5 km. wide and has an
elevation varying from about 610 to 844 metres above sea level.
 There are mainly two seasons i.e. summer and winter. The summer season falls
between the months of April to July and the winter November to March. In summer
season the temperature touches 44 0C or even sometimes crosses it. June is the
hottest month and January is the coldest one. Mostly the rain falls in the month of
July. The winter rains are experienced during January and February. The dust storm
occurs in the month of May and June.
 The south-west monsoon generally arrives in the first week of July and continues till
end of August. 70% of the rainfall occurs during this period. The average rainfall of
the district is 875.4 millimeters (average of 5 years). The rainfall in the district is
greater in the sub mountain parts of the district and decreases rapidly towards the
southwest.

Chapter - 4
POWER SCENARIO IN PUNJAB

4.1 INSTALLED CAPACITY IN PUNJAB

 The total installed capacity of Punjab is 4942MW (as on 30.03.2010) of which Thermal
Power constitutes of 3942 MW and Hydro constitutes of 10 00 MW.
 The detail mode wise & sector wise breakup of the installed capacity is given
below:
Source: Central Electricity Authority
4.2.2 PPA with PSEB for Solar Power

 The power from this Solar plant is proposed to be supplied to PS EB network.
The same has also to be approved by PERC.

Chapter - 5
NEED OF THE PROJECT

5.1 POWER SUPPLY ARRANGEMENTS

 Power will be supplied to PSEB at 66 KV substation.
5.2 NEED OF SOLAR PROJECT.
5.2.1 Utilization of Renewable Source Available

 In the light of the ever growing importance of renewable energy, specially solar
photovoltaic energy and in the context of climate change and energy security,
PEDA as per JNNSM has decided to utilize in solar photovoltaic electricity for
their energy need during day time and toward this objective department decided
to implement a 5.00 MWp grid interactive solar photovoltaic power project at the
Gurdaspur district.
 This also shall create a revenue stream for renewable energy based power
generating units through trading of carbon credits, green certificates etc.
5.3 POWER GENERATION SCHEME
5.3.1 Electrical System Types

 As it is intermittent, the electricity produced by solar PV array needs to be properly
controlled, stored and distributed. The two major possibilities currently prevalent
are (i) Stand–alone system and (ii) Grid connect system.
 It may be noted that many devices are needed between the array and the load to
provide electrical power.
 A typical stand–alone photovoltaic system is composed of an array converting

sunlight into electricity. Electrical current flows into a bank of batteries through a
charge controller (regulator) that protect the batteries from overcharge or over
discharge. By using a DC–DC converter required levels of DC voltage can be
obtained if the loads to be connected are of DC types and if the loads are of AC
type a DC–AC inverter may be needed.

 A schematic diagram of a Stand–alone PV system is shown in Figure below:
Figure 5: Schematic Diagram of Stand – alone PV system

A schematic diagram of a Grid connect system is shown in Figure below:
Figure 6: Schematic Diagram of Grid connect system
 The project is of the grid connect system type. The system operates only when the
utility is available. The system consists mainly of the following:
 Solar PV array – which produces DC electricity when solar rays are incident on it.
o Power Conditioning Units (PCU) – which convert DC (Direct Current)
electricity into AC (Alternating Current) electricity and facilitate
synchronization with the grid power
o Transformers – which transform the AC output of the Power Conditioning
Units to the level required at the grid
5.3.2 Operating Principle of Grid Connect Solar PV Systems

 The system automatically ‘wakes-up’ in the morning and feeds-in power to the grid,
provided the grid power is within the window (voltage and frequency limit) of
synchronization.
 The Maximum Power Point Tracking (MPPT) circuit within the PCU extracts the
Maximum available power from the solar array and feeds it to the grid. If the grid
voltage and / or frequency go out of the window, the PCU immediately isolates
from the grid.
 The PCU will reconnect after a pre-determined time when the grid is back within the
window. When the feed-in power is below a predetermined level or when the solar
insolation is below a selected value for a pre-determined period of time the PCU is
isolated from the grid and is operated in sleep mode. This minimizes the stand by
losses.
5.4 TYPICAL SYSTEM COMPONENTS OF GRID CONNECT SPV SYSTEM
5.4.1 Solar PV Modules / Array
 As the solar cells have limited linear dimensions, a number of cells are to be
interconnected to provide required voltage and current. These are encapsulated
using a material such as Ethylene Vinyl Acetate (EVA) between a transparent
window and moisture – proof backing to insulate and protect them.

 As the PV cells are less efficient at higher temperatures, modules are

mechanically designed as not to retain the ‘solar heat’ and mounted so as to
permit natural cooling. The Figure below depicts the structure of a commercial
module.
Figure 7: Structure of a Commercial Module
 The electrical performance of a module is more or less identical to a solar cell. It is

shown in the Figure below:
Figure 8: Characteristic Curve

 The following parameters need to be considered while selecting a module for
use:
o Open–circuit Voltage – Voc
o Short–circuit Current – Isc
o Voltage Corresponding to MPP – Vmp
o Current Corresponding to MPP – Imp
o Maximum power – Pm

 Generally, the aforementioned values are compared to a solar irradiation of 1000

W/m2 with a spectrum of AM 1.5 and solar cell temperature of 25oC.
 Another very important feature connected with solar PV module performance is

the Normal Operating Cell Temperature (NOCT).
 NOCT is that value of cell temperature which is reached when the incident solar
radiation is 800 W/m2, ambient temperature is 47 + 2oC and wind velocity is 1
meter/second.
5.4.2 Solar PV Array

 Depending on the load power requirements, modules are interconnected in
series or parallel to constitute a PV array. The Figure below is a representation of
cell to module and module to array.
Figure 9: From Solar Cell to Solar PV Array

ƒ
 Diagram of an array of modules and the resulting I–V characteristics is shown in
Figure below:
Figure 10: I – V Characteristics

 Diodes are used in two ways in a photovoltaic array. Brief details are given below:
5.4.2.1. Blocking Diodes
 These are placed in series with a module to prevent current from flowing
‘backwards’ through to modules.
5.4.2.2. By–Pass Diodes

 When a cell gets shaded from the sun, an open–circuit can exist in which there is no
current flow. By–pass (or shunt) Diodes are used to shunt–current, so that the other
cells and modules continue to produce power in the PV array.
5.4.3 Balance of Systems (BOS)
5.4.3.1 Power Conditioning Units / Inverters

 The Power Conditioning Units used in grid connect SPV systems consist of an
Inverter and other electronics for MPPT, Synchronization and remote monitoring.
 The inverter is the most complicated part of the PV system. It has to act as the
interface between the PV array and the Grid. As the PV array output varies with the
solar radiation the inverter has to cope with the same.
 The main functions carried out by the PCU are as follows:

o Change the incoming DC received from PV modules into AC with suitable
power quality. The inverter produces sinusoidal AC wave forms with low
harmonic distortion.
o The inverter also has to act as a protective device of the system. It needs to
trip
out if the voltage, current or frequency goes outside acceptable ranges.
 Pulse width modulation is used to generate a wave form as near as possible to a
sine wave. High speed switching device are used to generate pulses of the
devices mainly used for Inverter circuitry. Inverter efficiencies are now reaching
about 95% commercially, mainly by deploying new switching topologies.
5.4.3.2 Other BOS Items

 Solar PV module mounting structures, interconnection systems and protection
system which are used to integrate the solar PV modules into the structural and
electrical systems are known as other BOS items.

5.4.3.3 Schematic Diagram of Solar PV Grid Connect System
Figure 11: Solar PV Grid Connect System
 The Figure above represents the concept of grid connects solar PV system with
feed-in at 33 kV level.
 The SPV array (constituting solar PV modules of selected rating connected in

series to build up the required voltage and in parallel to build up the required
current) of the designed DC power produces DC electricity when Solar insolation is
incident on it. The DC power thus produced is taken through various junction
boxes and isolators and connected to the PCU.
 The PCU houses the inverter circuitry which converts DC power supply into AC
power supply, the synchronization circuitry which actualizes the tie-up of solar PV
source to the grid source and the remote monitoring and control circuitry. A
number of PCUs are connected in parallel to buildup the required AC power, and
combiners permit AC output power at 3 Ph, 415 V, 50 Hz to be fed into
transformers.
 Depending on the grid voltage level to which the solar PV power is being
synchronized, different levels of step-up transformers may have to be deployed. In
the project under consideration, as the grid voltage is at 66 kV level, there will be
two step-up from 415 V to 11 KV and 11 KV to 66 KV.
 The protection and metering circuits are not shown in the schematic diagram but in
the actual scheme of things these play a very significant role. Appropriate
current transformers and potential transformers are used to tap required
feedback signals to initiate action on metering and protection.

Chapter - 6
SURVEY AND INVESTIGATION

6.1 TYPICAL SYSTEM COMPONENTS OF GRID CONNECT SPV SYSTEM

6.1
 Location Map of Gurdaspur attached as Annexure IV
 The exact location of the project site has the following orientation:
o Latitude : 28.56 o N
o
o Longitude : 77.13 E
 Climate and site condition of the project location are as follows:
o Elevation above MSL : 242 Meter .
o Ambient Temperature : Max. 46ºC
o Average Ambient : 40ºC
o Minimum Ambient : 2ºC
 Relative Humidity
o Average Humidity : 65%
o Peak Humidity : 90%
 Wind Load : As per IS 875
 Seismic data : As per IS 1893 (Zone IV)
 Seismic zone map of India is attached as Annexure V
 Details of area available for the project are as follows:

o Total Land area of 30 Acres is available at the proposed project site.
 Some photographs of the project site during execution are given in Annexure VI.

Chapter - 7
POWER POTENTIAL STUDIES

7.1 SOLAR RADIATION - INDIA

 The highest annual radiation energy is received in western Rajasthan while the north
eastern region of the country receives the lowest annual radiation.
2
 The annual mean daily solar radiation in India varies from 4.5 – 6.5 KWh/m /day.
 Figure below shows the annual mean daily solar radiation pattern in different
parts of India.
kWh/m 2/day
Source: MNRE
Figure 12: Annual Mean Daily Solar Radiation in India in kWh/m2/day

7.2 SOLAR PV MODULE TYPES

 Over the past three decades SPV technology has shown impressive growth towards
technological and economic maturity. The major SPV technologies based on
materials used are (i) Crystalline Technology (ii) Thin Film Technology.
7.2.1 Crystalline Technology

 Crystalline Silicon (mono & multi) cell technology continues to dominate and
forms about 90% of market share. It is the current industry leader and almost all
applications use crystalline silicon based PV technology. It is ideally suited for
locations with space constraints due to high efficiency than thin-films.
7.2.1.1 Overview
 Crystalline Silicon (c-Si) was chosen as the first choice for solar cells, since this
material formed the foundation for all advances in semiconductor technology.
The technology led to development of stable solar cells with up to 16% efficiency.
Two types of crystalline silicon cells are used in the industry. The first is
Monocrystalline Si, produced by growing high purity, single crystal Si rods and
slicing them into thin wafers. The second is Multicrystalline Si, made by sawing a
cast block of silicon first into bars and then wafers. Major trend in PV industry is
toward multicrystalline technology. In both mono- and multicrystalline Si, a
semiconductor junction is formed by diffusing phosphorus (an n-type dopant) into
the top surface of an already boron doped (p-type) Si wafer. Screen-printed
contacts are formed on the top and bottom of the cell, with the top contact pattern
specially designed to allow maximum light to enter the Si material and minimize
electrical (resistive) losses in the cell.
 Most efficient Solar cells are produced cells using Monocrystalline Si with laser
grooved, buried grid contacts for maximum light absorption and current
collection. Some variants of c-Si technologies are also being tried by the industry.
One of them is to grow ribbons of silicon from a silicon melt, either as a plain two-
dimensional strip or as a hollow octagonal structure and laser cutting into strips.
Another is to melt silicon powder on a cheap conducting substrate. Main
advantage of these is the elimination of kerf loss that prevails in other crystalline
technologies they have limitations by way of lower growth/pulling rates and
poorer uniformity of surface evenness and scalability.
 Each c-Si cell generates typically generates about 0.5V. Usually 36 cells are
soldered together in series to generate voltage levels that can charge a standard
12V battery. The cells are hermetically sealed with glass on the front side and
plastic materials at the back to produce highly reliable, weather resistant c-Si
Modules with performance guarantees in excess of 25 years. Typical c-Si cell is
shown in Figure below:

Figure 13: Crystalline silicon solar cell
7.2.1.2 Advantages:
 Highest efficiency levels (14.5% to16%)
 Commercially most viable among PV technologies
 Sustained dominance in PV industry for over 25 years
 Higher current / lower voltage features enable easier system design
 Project implementation can be done in stages starting with Module assembly and
backward integration to wafer fabrication stage or the other way from Wafer to Cell
to Module
 Performance guarantee for c-Si Modules is generally in excess of 25 years
7.2.1.3 Disadvantages:
 In c-Si technology consumption of material (Silicon) is far more than what is
actually needed for converting light into electricity.
 High dependence on Polysilicon availability and pricing.
o
 Melting point of Silicon being high (1415 C) power consumption is high in
Polysilicon production and Wafer fab processes.
7.2.1.4 Merits of Multicrystalline Technology
 From the historic trends on crystalline production, it can be observed that in the last
decade, the share of multi-crystalline modules has gradually increased from 42.1% to
45.2%.
 This has been driven by primarily two reasons:

o Aim to reduce energy consumption in the whole process

o Shortage of silicon feedstock.

 Solar Photovoltaic industry commenced using scrap silicon and off-grade silicon
from semiconductor industry in the initial stages and solar photovoltaic industry
also followed the highly energy intensive and delicate CZ process for growing
crystals to sliced wafers. However, as the size of the industry increased and as the
scarcity of silicon feedstock started impacting the industry, in addition to the
significant cost increases on account of electrical energy costs, the multi-
crystalline silicon commenced carving out more share. This was basically due to
the fact that for multi-crystalline process, the two initial steps, which are high
energy consuming of silicon purification and crystal growing, are eliminated.
Multi-crystalline process uses only off-grade and scarp silicon as feedstock.
 Over the years, due to continuous research, the efficiency levels of multi-
crystalline have also almost got up with single crystalline cells at 14-15%.
 In the years to come, multi-crystalline is expected to grow at a much faster pace

than single crystalline, due to the aforementioned reasons.
7.2.2 Thin Film Technology
7.2.2.1. Overview of the technology

 The high cost of crystalline silicon wafers (they make up 40-50% of the cost of a
finished module) has led the industry to look at cheaper materials to make solar
cells. The selected materials are all strong light absorbers and only need to be
about 1micron thick, so materials costs are significantly reduced. Amorphous
Silicon thin film Solar Cell is the earliest device developed in this area. Other
types of thin film Cells that followed are Cadmium Telluride (CdTe) and Copper
Indium Gallium Diselenide (CIGS) Solar Cells. New developments in this field
include ‘Micromorph’ Cells (a combination of amorphous and microcrystalline
Silicon materials) that has yielded higher efficiencies and has better stability
features.
 In Thin Film Solar Cell / Module technology, very thin layers and a chosen
semiconductor material (ranging from nanometer level to several micrometers in
thickness) are deposited on to either coated glass or stainless steel or a polymer.
The semiconductor junctions are formed in a different way, either as a p-i-n
device structure in amorphous silicon, or as a hetero-junction. A transparent
conducting oxide layer (such as tin oxide) forms the front electrical contact of the
cell, and a metal layer forms the rear contact. Thin film technologies are all
complex. They have taken at least twenty years, supported in some cases by
major corporations, to get from the stage of promising research to the first
manufacturing plants producing early product. Typical Thin Film Silicon solar cell is
shown in Figure below:

Figure 14. Thin film silicon solar cell
7.2.2.2. Advantages
 Significant lower material cost per Wp
 Faster manufacturing processes with less number of steps
 Comparatively lower energy consumption processes
 Higher energy performance (Thin Film modules generate more electricity per unit of
installed capacity than crystalline silicon modules)
 Lightweight and flexible substrate
7.2.2.3. Disadvantages
 Suffers from Less than adequate conversion efficiency
 Poor long term stability
 High capital costs
 Scalability and control of uniformity over large area designs
 Lower environmental compatibility in respect of CdTe and CIGS technologies

7.3 COMPARISION BETWEEN CRYSTALLINE & THIN FILM TECHNOLOGY
Sr. No. Parameter Crystalline Thin Film

1) Types of Materials Mono Crystalline & Amorphous Silicon,
Polycrystalline CdS, CdTe, CIGS etc.
2) Handling Better protection against Not Guaranteed
breakage
3) Power Efficiency 12-16% 6-8%
4) Technology Well Developed Under development
5) Module Weight Light weight modules Heavier modules
6) Area utilization Higher power generated Less power per unit
per unit area due to high area
efficiency
7) Temperature Temperature variations Lesser impact of
Effects affect output Temperature variations
8) Irradiance Used particularly for Better performance
Normal radiations with Diffuse radiations
9) Module quantity Lesser nos required due More modules required
to high efficiency
10) Output per MW High Varies as per sunlight
installed condtion and various
locations
11) Transportation Cost Lower Transportation cost Higher cost
12) Mounting Structure Fewer Mounting structure More Mounting
required per KW power structures required
13) Land Requirement Lesser space required per Largest space
MW requirement
14) Inverter High inverter flexibility Limited inverter
flexibility
15) Cost High cost per Watt Lower cost per Watt
16) Environment Less Sensitive Sensitive
Effects
17) Stabilization Stable power output from Stability achieved after
at initial stages 4-6 months
18) Availability Easily available Limited supply
19) Health hazards Made from non toxic Toxic materials used
material (Si) (CdS, CdTe)
20) Power Degradation Less degradation Highest degradation
for initial 5-7 years
21) Plant Maintenance Less maintenance Highest maintenance
required after installation required, so highest
so lower cost maintenance cost

Sr. No. Parameter Crystalline Thin Film

22) Repair Relatively easy Difficult due to complex
structure
23) Cooling Not required Not required
Requirement
24) Cabling Well known, and lower Well Understood but yet
cabling losses difficult due to higher
number of arrays, along
with high cabling losses
25) Suitability for Grid Good Good
Technology
7.4 TECHNOLOGY SELECTED FOR PROJECT

 the technology which should be selected should have the higher efficiency so that
maximum capacity can be installed.
 Monocrystalline technology is the w el l p r o ve n technology in the field of Solar

energy and hence selected for the project.
7.5 SOLAR RADIATION – AT PROJECT SITE
Tilted Flat Plate Collectors: Latitude Tilt Irradiance (TILT)

Annual Average: 5.88 kWh/m sq Monthly Average in kWh/m sq
Jan 4.75
Feb 5.50
Mar 5.97
Apr 6.54
May 6.65
Jun 6.37
Jul 5.26
Aug 5.25
Sep 6.24
Oct 6.93
Nov 6.12
Dec 4.96

 For fixed modules generation will be maximum at the tilt of the angle of latitude.i.e.
o
28 .
 Generation can be increased by providing manual tilting (or seasonally

adjusted) twice a year. Solar panels should always face true south tilted from the
horizontal at a degree equal to your latitude plus 15 degrees in winter or minus 15
degrees in summer.
7.6 SOLAR POWER GENERATION

 A solar photovoltaic module is constructed from individual solar cells. The solar
cells are hermetically sealed between glass and Tedlar and EVA sheets at the
rear.
 To carry the same power a higher system voltage is advantageous since the
system then needs to carry relatively lower current. This reduces the cross
sectional area of the conductors. The lower current reduces the cable losses. A
higher system voltage is created by connecting the solar PV modules in series.
 The modules connected in series are known as strings. The strings are
connected to the String Junction Boxes (SJBs) and the SJBs are connected into
the Panel Junction Boxes (PJBs) and PJBs are connected to the Array Junction
Boxes (AJBs). The AJBs are connected to the Main Combiner Box which acts as the
Main DC Collecting Unit which feeds the DC power to the PCUs to be
converted to AC power supply.
 The 5.00 MWp circuit will consist of 20 numbers of 250 KW PCUs. Each PCU is
likely to have about 900 modules (230 Wp Crystalline module of Websol make).
Advantage of using a central inverter (instead of string inverters) is that the
module fields are less sensitive towards partial shading which is generally the
case with String Inverters. Due to higher system voltage the central inverters also
reach very high efficiency level.
 The AC power from the PCUs are fed into lower voltage panel and then to the
transformers through isolators and circuit breakers. The secondary side of the
final transformer is routed through a high voltage panel, fitted with necessary
measuring and protection devices, before connecting to the grid.

Chapter - 8
DESIGN OF POWER PLANT ELECTRICAL

& MECHANICAL

8.1 PROJECT DESIGN
 The major equipments and materials associated with 5.00 MWp grid connected
solar power plant are;
o Solar module of composite 5MWp capacity including mounting frames,
structure and interconnection cables.
o Array Junction Boxes and Main Junction Boxes.
o Power Conditioning Units (PCU).
o LT Switch gear interface Panel.
o 415V/11KV Generation Transformer and associated switch gear.
o HT Switch Gear Panel with protection, indication and measuring instruments.
o Earthing system for DC and AC systems.
o Data Acquisition system with remote monitoring facilities.
 The total capacity of the 5 MWp solar power plant is divided into sub arrays of
230kWp solar power capacity to feed into the 250KW rating power conditioning units.
24V, 280Wp monocrystalline solar modules 182 00 nos used for this project,
connecting 100 nos in series and such 910 strings in parallel using Array Junction
boxes and Main Junction boxes. Array Layout is attached as annexure VIII.
 The data sheet of PV module is attached as annexure IX
 The Junction boxes shall be dust, vermin and water proof; each array junction
boxes shall have suitable reverse blocking diodes and MCB’s for surge
protection. These solar modules are mounted on single module mounting
structures specially designed for fixing over Kalzip railings. The outputs of the
Main Junction Boxes connected to the Power Conditioning Units (PCU) for
converting the DC power into AC power and then export the solar energy into the
grid through LT panel, Transformer and HT Panel.
 The PCU’s automatically turn on and off successively sensing the availability of
grid power and the solar irradiation varies over the day. PCUs convert the DC
output of the photovoltaic arrays into the three phase AC power using reliable,
high efficiency IGBT as the primary switching devices. The PCU’s having all the
necessary automatic synchronization equipments built inside to sync with grid
and export the solar energy. The PCU’s has the built in Isolation transformer to
provide the galvanic isolation when solar array is grounded and it allow the
inverter to match the voltage of utility grid. The specification sheet of the PCU
considered is attached as annexure X
 The output of the PCU’s connected to the LT panel trough suitable incoming
breaker, measuring instruments, selector switches and mimic diagram. The
output of LT interface panel connected by bus duct to the 0.415/11KV step up
Transformer. The generation transformer shall be having all the required
monitoring and protection equipments. The output of transformer connected to the
fully draw out type HT panel and HT vacuum circuit breaker. HT panel is built with
protective relays, auxiliary relays, control switches, indicating lamps,
enunciators and mimic diagram. The output of the HT panel shall be connected to

the utility grid point with required metering panel for grid export.
 All the equipments like solar array, Junction boxes, PCU, LT Panel, Transformer
and HT panels are suitably earthed using copper earth pits. Earthing in general
shall cover equipment earthing, system neutral earthing and static lightning-
protection
 The computer aided data acquisition system provided to continuously monitor
and record the various parameters of solar power plant both on DC and AC side.
This data shall be saved in the local PC and same can be controlled from
remotely through the telephone line.
 The data acquisition system shall measure and continuously recording of the
following parameters –
o Control room temperature

o Ambient air temperature near Array field
o Module back surface temperature
o Wind speed at the level of Array Plane (V) Solar irradiation incidental to Array Plane
o Inverter Output
o System Frequency
o DC Bus Output
o Energy Delivered to the GRID in KWh
o Generated Output in KWhrs.
 All data shall be recorded chronologically date wise. The data file shall be MS
excel compatible. The data logger shall have internal reliable battery backup to
record all sorts of data simultaneously round the clock. All data shall be stored in a
common work sheet chronologically. All the data shall be represented in
graphics mode or in tabulation mode in the computer screen.
8.2 SUITABILITY OF SPV POWER PLANT UNIT TO OPERATE IN PARALLEL WITH

GRID
 It is important that the SPV power plant is designed to operate satisfactorily in

parallel with the grid under extremely high voltage and frequency fluctuation
conditions, so as to export the maximum possible units to the grid.
 It is also extremely important to safeguard the system during major disturbances,

like tripping/pulling-out of big generating stations and sudden overloading during
falling of portion of the grid loads on the power plant unit in island mode, under
fault/feeder tripping conditions.
 The exportable power from the plant shall be evacuated by stepping-up the
power from 415 V to 11 kV through a 415 V/ 11 kV, 1.25 MVA transformers.
 Trivector meter that will be provided in the plant’s control building or as per
BRPL’s requirement and will have main & checking arrangement, and these shall be

agreed upon with the BRPL. The tariff meters shall register import as well as export
parameters.
8.3 SAFETY REGULATIONS

 Statutory regulations on safety measures shall be strictly followed. Safety
appliances, viz. fire extinguishers, sand buckets, earth rods, gloves, rubber mats,
danger sign boards, safety regulation charts, etc. shall be procured and installed as
per safety norms.
 Oil collection pits and soak pits for the transformers shall also be constructed. All
cables in switchyard shall be neatly laid/ dressed and shall be barricaded inside
trenches along the length with fire proof bricks.
 Suitable provisions shall be made for installing a fire hydrant system at the SPV
Power Plant premises. The arrangement shall also include supply
of uninterrupted water supply from the nearest fire hydrant point to the power
plant area.

Chapter - 9
DESIGN CRITERIA

9.1 SOLAR PV MODULES

 PV modules considered are with minimum declared output of 230 Wp. Number of
modules to be supplied shall be worked out accordingly. Stabilized output of the
Solar PV Array for the Power Plant should not be less than 5.00 MWp under
Standard Test Condition after one year of operation. Modules for Power Plant
shall be made of mono crystalline silicon. The SPV Modules must be tested &
certified by an independent international testing laboratory.
 The module frames shall be made of corrosion resistant material, which shall be
electrically compatible with the structural material used for mounting the
modules.
 The module shall be provided with a junction box with provision of external screw
terminal connection and with arrangement for provision of by-pass diode. The
box should have hinged, weatherproof lid with captive screws and cable gland
entry points.
9.2 MODULE MOUNTING STRUCTURE

 The structure shall be designed to allow easy replacement of any module. The
structure shall be designed for simple mechanical and electrical installation. It
shall support SPV modules at a given orientation, absorb and transfer the
mechanical loads to the ground properly.
 The array structure shall be so designed that it will occupy minimum space
without sacrificing the output from SPV panels; at the same time it will withstand
severe cyclonic storm with wind speed up to maximum 200 km per hour. Nut and
bolts and supporting structures including Module Mounting Structures shall have to
be adequately protected with atmosphere and weather prevailing in the area.
 The legs of the structures with appropriate strength will be fixed on the rooftop,
while designs due consideration will be given to weight of module assembly,
maximum wind speed of 200 km per hour, without providing any harm to the
rooftop
9.3 BALANCE OF SYSTEMS
9.3.1 Junction Box

 The junction boxes shall be dust, vermin, and water-proof. The terminals will be
connected to copper bus-bar arrangement of proper sizes to be provided. The
junction boxes will have suitable cable entry points fitted with cable glands of
appropriate sizes for both incoming and outgoing cables. Suitable markings shall be
provided on the bus-bars for easy identification and cable ferrules will be fitted at
the cable termination points for identification.
 Each Array Junction Box will have Suitable Reverse Blocking Diodes of

maximum DC blocking voltage of 600 V with suitable arrangement for its

connecting. The Array Junction Box will also have suitable surge protection.
 The Junction Boxes shall have suitable arrangement for the following:
o Combine groups of modules into independent charging sub-arrays
o Provide arrangement for disconnection for each of the groups
o Provide a test point for each sub-group for quick fault location
o To provide group array isolation
o The current carrying rating of the Junction Boxes shall be suitable with
adequate safety factor to inter connect the Solar PV array.
9.3.2 Power Cond iti oning Unit (PCU) wit h Sync hron iza tion Cir cuitry
 PCU should be having efficiency levels of 95% and above. Each inverter shall be
with minimum capacity of 250kW. The output power factor of the PCU should be of
suitable range to supply or sink reactive power. The PCU shall have internal
protection arrangement against any sustained fault in feeder line and lightning in
feeder circuit. The PCU should be three phase static solid state type power
conditioning unit. Both AC & DC lines shall have suitable fuses and contactors to
allow safe start up and shut down of the system. Fuses used in the DC circuit
should be DC rated. The PCU shall have provision for input & output isolation.
 PCU shall have arrangement for adjusting DC input current and should trip
against sustainable fault downstream and shall not start until the fault is rectified.
 PCU front panel shall be provided with display (LCD or equivalent) to monitor the
following:
o DC power input
o DC input voltage
o DC current
o AC power output
o AC voltage (all the 3 phases and line)
o AC current (all the 3 phases and line)
o Power factor
 Provision should be available in the PCU for Remote Monitoring of all the
parameters mentioned under paragraph above and other important data.
9.4 LT POWER INTERFACING PANEL

 The Panel shall have adequate inputs to take in from individual PCUs and
adequate outputs to individual transformers.
 The Panel shall be floor mounted type. All the measuring instruments such as
voltmeter, ammeter, frequency meter, Electronic Energy Meter (for measuring the
deliverable units for sale), selector switches, Mimic front panel will be

present.
9.5 COMPUTER AIDED DATA ACQUISITION SYSTEM

 Computer Aided Data Acquisition Unit shall have features for simultaneous
monitoring and recording of various parameters of different sub-systems, power
supply of the Power Plant at the DC side and AC side.
 The unit shall be a separate & individual system comprising of different
transducers to read the different variable parameters, A/D converter, Multiplexer,
Demultiplexer, Interfacing Hardware and Software. Reliable sensors for Solar
Radiation, Temperature and other Electrical Parameters are to be supplied with the
data logger unit.
 The data acquisition system shall perform the following operations, which include
the measurement and continuous recording of:
o Ambient Air Temperature near Array Field
o Control Room Temperature
o Module Back Surface Temperature
o Wind Speed at the level of Array Plane
o Solar Radiation incidental to Array Plane
o Inverter Output
o System Frequency
o DC Bus output
o Energy delivered to the GRID in kWh
 All data shall be recorded chronologically date wise. The data file should be MS
Excel compatible. The data logger shall have internal reliable battery backup to
record all sorts of data simultaneously round the clock. All data shall be stored in a
common work sheet chronologically.
 Representation of monitored data in graphics mode or in tabulation form. All
instantaneous data can be shown in the Computer Screen Provision should be
available for Remote Monitoring through GPS system.
9.6 LIGHTNING & OVER VOLTAGE PROTECTION

 The SPV Power plant should be provided with Lightning and over voltage
protection. The main aim of over voltage protection is to reduce the over voltage to
a tolerable level before it reaches the PV or other sub-system components.
 The source of over voltage can be lightning or other atmospheric disturbance. The
Lightning Conductors shall be made as per applicable Indian Standards in order
to protect the entire Array Yard from Lightning stroke.
 Necessary concrete foundation for holding the lightning conductor in position will

be made after giving due consideration to maximum wind

speed and maintenance requirement at site in future.
 Each Lightning Conductor shall be fitted with individual earth pit as per required
Standards including accessories, and providing masonry enclosure with cast iron
cover plate having locking arrangement, watering pipe using charcoal or coke and
salt as
per required provisions of IS. Shall ensure adequate lightning protection to

provide an acceptable degree of protection as per IS for the array yard. If
necessary more numbers of Lightning conductors may be provided.
9.7 EARTHING SYSTEM
9.7.1 LT Side
 The earthing for array and LT power system shall be as required as per
provisions of IS. Necessary provision shall be made for bolted isolating joints of
each earthing pit for periodic checking of earth resistance. Each Array structure of
the SPV Yard shall be grounded properly.
 The array structures are to be connected to earth pits as per IS standards. The
earthing for the power plant equipment shall be made as per provisions of IS.
Necessary provision shall be made for bolted isolating joints of each earthing pit
for periodic checking of earth resistance.
 The complete earthing system shall be mechanically and electrically connected to
provide independent return to earth. All three phase equipment shall have two
distinct earth connections. An Earth Bus shall be provided inside the control
room. For each earth pit, necessary Test Point shall have to be provided.
 In compliance to Rule 33 and 61 of Indian Electricity Rules, 1956 (as amended up
to date), all non-current carrying metal parts shall be earthed with two
separate and distinct earth continuity conductors to an efficient earth electrode.
9.7.2 HT Side
The 11 KV side equipments and parts shall be earthed as required as per
provisions of IS.
9.8 ENERGY METER

An Energy Meter shall be provided as approved by the Utility company to
measure the delivered quantum of energy to the GRID for sale. Meter must be
provided with the necessary data cables.
9.9 PROTECTIVE RELAYS

The SPV system and the associated power evacuation system shall be protected as per
Indian Standards. Over Current Relays, Reverse Power Relays and Earth fault Relays are

the minimum requirements.
9.10 POWER EVACUATION ARRANGEMENT
9.10.1 415 Volts / 11 kV and 11 KV / 66 KV Transformers

 Adequate capacity Transformer/s shall be provided to step up the Voltage from 3 ph,
415 Volts, 50 Hz output of the PCUs to 11 kV level to be evacuated at PSE B grid.
 Transformers shall be of reputed make and should have relevant IS or

international certifications. Transformers shall have all relevant monitoring and
protection devices as per the relevant Indian Standards.
 The Transformer manufacturer shall provide Test Certificates carried out on the
Transformers as per relevant IS standards.
9.10.2 Circuit Breakers and Other Isolators and Protective and Metering
Arrangements
 Appropriate Circuit breakers and Isolators shall be provided as per the relevant
Indian Standards and IE rules.
 The system shall be designed with appropriate CTs & PTs to have all relevant
protection arrangements like Reverse Power, Over Current, Earth fault relays etc. In
addition CTs and PTs shall also be provided for metering purposes as elsewhere
specified.

Chapter - 10
CONSTRUCTION MATERIAL –
REQUIREMENT, AVAILABILITY AND
SUITABILITY

10.1 MATERIALS
 The major items involved are:
o Solar PV Power Plant
o Power Evacuation System at Power Plant
10.1.1 Solar PV Power Plant

 The Power Plant consists of mainly SPV modules, PCUs and other balance of
systems (BOS). One of the key decisions to be made here is on the technology of
the SPV modules. Brief description of the technologies available and the
respective merits and de-merits is given under Chapter 5.
 Monocrystalline module has been selected for the project.
10.1.2 Power Evacuation System at Power Plant

 The materials required here are of standard power evacuation hardware to be
deployed for 1.00 MWp power evacuation.
 The main equipments under consideration are transformers (415 V / 11 kV),

VCBs and Isolators in addition to instrument transformer (CTs and PTs) and
metering arrangements.
10.2 PROCUREMENT PROCESS

FED SOLAR w i l l float tender for selection of EPC contractor.
10.3 BILL OF MATERIALS

The following bill of materials is proposed for the SPV 5 MW Plant.
Sr. No. Particulars Unit Quantity

1 24 V, 280 Wp Mono Crystalline SPV Module EA 18200
2 250 Module Mounting Structures Lot 5
3 250 KW Inverter EA 2
4 Array Junction Box 5 in 1 out EA 200
6 Main Junction Box 5 in 1 out EA 40

7 1C 4sqmm PVC sheathed Cable Lot 5

11KV ,400A outdoor Type GO switch, along with
10
structure, DO fuse,11KV LA Nos. 5
11/0.433 kV, 1250 KVA Dry, Dyn 11, With Off
11 Circuit Tap Changer (+/-5% in steps of 2.5%)
Transformer tag No. TRF –1, 2) Nos. 5
12 UPS System for charging battery Nos. 5
11 KV combined CT-PT unit with class 0.2,CTR
13
150/1A,PTR:11KV/11 0V,10VA Nos. 5
11 KV ,600A,50Hz,26.5KA for 1sec,Vacuum / SF6
14
type HV C.B. Nos. 5
Switchgear floor mounting ,indoor type comprising
15 protection as per SLD. Incoming switchgear panel
with Line PT Nos. 5
16 Outgoing Transformer feeder Nos. 5
17 Bus PT Nos. 5
415V, 2000A, 3ph, TPN, 50Hz,50 KA for 1 sec,
18
single front, drawout LT Panel Nos. 5
19 DC SYSTEM
Installation of 110 V DC supply system for
Switchgear control complete with battery charger,
Lead Acid Batteries, DCDB, and other accessories.
The complete system will be located in Substation Lot 5
20 HT & Switchgear Cabling Lot 5
21 Cable trays, trench and accessories Lot 5
22 Lighting distribution board Nos. 5
23 Array LA EA 100
24 Earthing Kit Set 150
25 GIStrip M 5000
26 6 spmm GI Wire M 12500
27 SCADA system for monitoring Nos. 1
10.4 LIST OF SPARES

List of spares Reliance is providing along with above materials are as follows:
Sr. No. Particulars Unit Quantity

1 24 V, 280 Wp Mono Crystalline SPV Module Nos 50
2 4 sqmm terminal blocks Nos 100
3 PCB boards for PCU Nos 10
4 Control Fuses Nos 25
6 Pilot Lights Nos 25
7 MCBs Nos 10

Chapter - 11
CONSTRUCTION METHODOLOGY AND

EQUIPMENT PLANNING

11.1 OVERVIEW
This section of the report outlines the operation and maintenance philosophy to be
adopted for the proposed grid connected SPV power plant. These broad outlines,
given here, will provide useful guidelines for the basic and detailed engineering of
the plant, so that all the requirements of the operation and maintenance of the
plant are met and provided for in the engineering stage itself.
The production of power from SPV plant is generally a static affair with no moving
parts. The SPV array produces electricity by deploying SPV modules which are
warrantied for 10 years on product workmanship, for 12 years on performance of
power not less than 90 % of the nominal power and for 25 years on performance of
power not less than 80 % of the nominal power. Once properly selected and
installed these require no major maintenance. The DC power produced by the array
is converted into AC power by a battery of PCUs which need some attention because
of electronics involved.
The AC output at 415 V level is stepped up 11 kV by a set of transformers. These
transformers and associated switch gear need proper preventive maintenance. The
most important aspect of the system which needs proper monitoring is the
synchronizations which ensure the availability of power to the grid. Single Line
Diagram of the project is attached as annexure XI
11.2 SYSTEM DESIGN PHILOSOPHY

The main O&M objective is the high availability and reliability of the plant. In order to
achieve the main objective, the following principles would be adopted.
o Building up adequate capacity to ensure generation of power as per design
estimates. This is done by applying liberal de-rating factors for the array and
recognizing the efficiency parameters of PCUs, Transformers, Transmission
lines, etc.
o Providing redundancy to ensure at least 50% availability in case of major break
downs of transformers.
o Use of equipment and systems with proven design and performance that have a
high availability track record under similar service conditions.
o Selection of the equipment and adoption of a plant layout to ensure ease of
maintenance.
o Strict compliance with the approved and proven quality assurance norms and
procedures during the different phases of the project.
The basic and detailed engineering of the plant will aim at achieving high
standards of operational performance especially with respect to the following key
parameters:
o Optimum availability of modules during the day time

o Ensuring module layout to prevent shading
o High DC system voltage and low current handling requirements
o Selection of PCUs with high track record

o Selection of transformers with low maintenance requirements

The plant instrumentation and control system should be designed to ensure high
availability and reliability of the plant to assist the operators in the safe and
efficient operation of the plant. It should also provide for the analysis of the
historical data and help in the plant maintenance people to take up the plant and
equipment on preventive maintenance.
11.3 OPERATION REQUIREMENTS

The operation of the plant starts with the commissioning. In broad terms
commissioning can be defined as setting up of the plant to work safely and on
program. It is necessary to ensure that all equipment is completely erected before
operations begin. Although this may be considered difficult, the other extreme of
operating a plant with insufficient instrumentation, controls, and alarms is very
dangerous. Although some compromise can be made with regard to plant completion,
the commissioning procedures should never compromise personnel and the system
safety.
A proper checklist procedure must be drawn up, which would include all the
sections of the plant and shall take into account the contractual responsibilities, the
technological relationship between the various sections, pre-commissioning, cleaning
requirements, etc.
The checklists procedure helps in the following:
o To ensure that the necessary checks are carried out on each item of the plant
before it is put into commercial service
o To ensure that energy is supplied to grid when it is safe to do so
o To facilitate the recording of the progress on the various commissioning activities
o To provide a basis for the plant history
The operation of the power plant unit interconnected to the grid is an activity that must
be properly coordinated, within the plant as well as with the grid to which the plant
feeds power. Operation in parallel with the grid eventually makes the SPV power plant
a part of the PS EB s utility system and hence the power plant must assume some of
the same responsibilities of PS EB . With this, the PS EB ’s local dispatch center will
need to monitor the incoming power from the SPV power plant on a continuous basis.
An important feature of the modern power generating plant is the automatic

safety lock-out devices. While sufficient thought goes into it at the design stage, it
remains the responsibility of the operating staff to ensure that the safety devices are set
correctly and kept in operation.
While safety of the plant and personnel is the foremost importance in the
operation, the efficient operation of the plant cannot be ignored. While operating, it is
important to check the essential parameters of the plant and equipment to ensure that
the plant performance is at the optimum level. Any variations in the operating
parameters or any deviations from normal performance of the equipment or
plant shall have to be analyzed immediately to diagnose the problem and to take

remedial measures to bring back the plant and equipment to its original parameters.
The plant operator should follow the guidelines given below:

o Frequent checking and calibration of instruments;
o Developing a habit of cross checking instrument indications with each other to
determine whether the instrument is faulty or there is an abnormal operating
condition;
And developing a habit of analyzing indicated data to determine accurately what
could be wrong.
11.3.1 Evacuation of power generated by the SPV power plant

It is important to recognize that:
o Generation voltage of 415 V has to be stepped up to 11 kV at the high voltage
side of the transformer to match the grid voltage at the point of interconnection.
o The power plant has to operate in parallel with the grid system which is a vast
power carrier. The power plant has to protect its equipment against possible
faults or other disturbances from the grid.
11.4 MAINTENANCE REQUIREMENTS

Regular maintenance of the SPV Power Plants (5.00 MWp grid connected with
associated power evacuation system) for a period ten years after commissioning as and
when necessary and submission of daily performance data of the power plant. The
contractor shall keep a Record Book in this respect clearly indicating date of checking
& comments for action etc.
Normal and preventive maintenance of the Power Plant such as cleaning of module
surface, tightening of all electrical connections, Line accessories, Transformers
and associated switch gear on the HT side. Cleaning of the Power Plant including array
Yard/Shed on regular basis and as and when required.
Keeping & recording daily log sheet as per approved format for the Power Plant as per
format to be supplied after commissioning of the Power Plant.
Operation of the Power Plant is in accordance with the availability of Solar Energy
and feeding to the grid. Under no circumstances, the operator shall run the power
plant damaging the substation grid.
Contractor's employees shall use no part of the power plant building for
residential or any other purpose except for running the plant.
The supplier shall submit monthly Performance report of SPV Power Plant
indicating cumulative energy generation data as per approved format within 15 days
of the following month.
The supplier shall preserve all recorded data in either manually or through
computer and shall submit to PSEB quarterly.

11.5 PREVENTIVE MAINTENANCE (SPECIFIC GUIDELINES)

This shall be done by the Supplier regularly and shall include activities such as
cleaning and checking the health of the SPV system, cleaning of module surface,
tightening of all electrical connections, and any other activity that may be
required for proper functioning of the SPV system as a whole. Necessary
maintenance activities, Preventive and Routine for Transformers and associated switch
gears also shall be included.
Performing routine and non-routine maintenance on the solar facility during and after
the EPC warranty period;
Operating the solar facility:

o Providing all materials and services necessary for solar facility
maintenance;
o Monitoring the operations of the Project via the computer monitoring
system;
o Performing all duties to the standard mandated by the PPA;
o Complying with all regulatory obligations;
o Developing operating and safety plans;
o Maintaining all Project information and facility data, including providing
reports to the Company.
Solar photovoltaic systems are highly reliable and require minimal maintenance. Several
maintenance activities need to be completed at regular intervals during the lifetime of
the system

Table 8 shown below is a list of key activities planned for preventive maintenance in this
project.
Table 8: Key activities planned for preventive maintenance
Every
Semi 10
Activity Cont inuou s Annually Annually Years Maintenance Action
Check solar Display as Remote monitoring System with
compared with solar critical alarms based on compari ng
insolation sets of data
Cleaning of Module b y water Visual inspection regularl y. Cleaning
spraying for removal of dust on monthl y basis or as and when
deposited required
Review array output, current More Substantial, on-site check in a
and voltage to verify power random pattern to verify computer
operation output
Particularly for gr ound-mounted
Watch for Shadin g by trees, system, vegetation growth can vary
weeds, other obstructions from year to year
If rainfall is not expected to remo ve
Inspect the PV array surface any accumulation, the surface will be
for excessive dirt or debris cleaned wi th a gentle rinse with
(bird dro pping, leaves, etc.) plain water or mild deterg ent
Inspect the PV modules for

crack/damage Preventive maintenance check
Inspect the PV modules for

discoloration/clo udiness Preventive maintenance check
Inspect the entire system for Preventive maintenance check, easy to

loose of damaged wiring repair on site
Inspect inverter and clean
any filters or vents to ensure Preventive maintenance check, easy to
unrestricted airflow repair on site
Budgeted to have more overhauls

Repair Inverter once every 10 years

Chapter - 12
CONSTRUCTION PROGRAMME AND

SCHEDULE

.
12.1 PROJECT IMPLEMENTATION STRATEGY
 The most essential aspect regarding the implementation of this SPV power
project is to ensure the project completion within the schedule, spanning for
seven months from the commencement date.
 A good planning and monitoring methodology is essential to complete the project

on time. It is expected that the project execution will take at least 4 months from
commencement to commissioning of SPV power plant.
12.1.1 Essential Functions of the Project

 The overall project activities for the SPV power plant divided into sub packages as
given below. The split of supplies is as follows:
o Supply, erection, installation and commissioning of lightning arrestors.
o Supply, erection, installation of SPV modules on structures. Supply, erection,
installation and testing of PCUs. Interconnection of
equipments and commissioning of the power plant (deliver 3 Ph, 415 V AC
supply and combining the outputs of 20 nos. of PCUs). Completion of
earthing system before commissioning. Supply, installation and
commissioning of data monitoring system.
o Supply, erection, installation, interconnection and commissioning of
power evacuation system consisting of isolators, circuit breakers,
transformers and transmission line along with commissioning of metering and
protection system.
o Actualize grid feed-in by synchronizing SPV power supply with 11 kV PS EB
grid supply.
o Acceptance test of metering system and energy sale.
12.2 PROJECT EXECUTION

 The execution will be planned, monitored and controlled through project
management techniques employing MS-Project (PERT – CPM Charts). A
provisional time line of the project is given in annexure XII.
12.3 PROGRESS REPORTING

 Progress reviewing and monitoring will be done by the Project Manager and
periodic reports highlighting the activities completed, areas of concern, and
corrective actions taken, etc., will be sent to PWD on regular basis.

Chapter - 13
PROJECT ORGANIZATION

13.1 STAFF
 Depending on the O&M requirements the firm will make necessary arrangements for
proper implementation of O&M.
 This will be through direct presence of the firms staff or through their local
technology partners.
 Typically, the power plant will be under the charge of an engineer supported by
adequate staff for security and O&M.
 Exact origination structure and the number of staff will depend on the site
conditions which will be assessed during the implementation of the project.
13.2 TRAINING
 During the commissioning of the plant, training will be imparted to the Engineer,
Supervisor and Operators.
 This operational training shall cover the following:

o The nature, purpose and limitations of all plant and equipment
o The detailed operating instructions on each section and equipment of the plant
o Normal startup and shutdown program for the plant
o The emergency procedures and all related HSE issues according to the
standards
 The basis for the training shall be the plant’s O&M manual.

Chapter - 14
ENVIRONMENTAL AND ECOLOGICAL ASPECTS

14.1 ENVIRONMENTAL IMPACT

 It is well recognized that, for sustainable development and optimal use of natural
resources, environmental considerations are required to be integrated in
planning, designing and implementation of development projects.
 The envisaged benefits from development projects can be fully realized only if
they are environmentally sustainable and socially sound.
 The environmental impacts can be categorized as either primary or secondary.

Primary impacts are those that are attributed directly by the project, secondary
impacts are those which are indirectly induced and typically include the
associated investment and changed patterns of social and economic activities by
the proposed action.
 The proposed solar power project would create an impact on the environment in
two distinct phases:
o During the construction phase and
o During the operation phase which would have long term effects.
14.2 IMPACTS DURING CONSTRUCTION
The impacts envisaged during the construction of the proposed plant are:
Impact on Soil
o There is no negative effect of the proposed project on the soil, since the
project is installed at rooftop.
Impact on Terrestrial Ecology
o There is no negative effect of the proposed project on the terrestrial
ecology of the area.
Impact on Aquatic Ecology
o There is no tank, lake, river or surface water body very close to the project
site.
Hence no impact is envisaged in the construction phase on the aquatic
ecology of the area.
Demography and Socio –Economics

o The establishment of the project will prove beneficial to the
population neighboring the site. There will be a marginal increase in
the employment of some persons living nearby both at the time of
construction as well as during operation.

Traffic and Traffic Hazards for Access Roads

o During construction phase, the construction material, equipment &
machinery and labour will be transported to the site and this will
increase the volume of traffic on access roads. However this effect
will not be very significant in view of the fact that the construction
activities is already in progress for the development of Stadium and
will be spread over a period of 4 months.
o The impacts during the construction phase are regarded as
temporary or short term and hence do not have an everlasting affect
on the soil, air, noise or water quality of the area.
o The impact from the construction phase is not envisaged to be
serious.
14.3 IMPACTS DURING OPERATION

 The operational phase will involve power generation using solar energy. The
following activities in relation to the operational phase will have varying impact on
the environment and are considered for impact prediction.
Impact on Air Quality
o The existing status of the ambient air quality of the area will not be
affected by the project. As all Renewable Energy projects are
environment friendly.
Noise
o Solar Power projects are noise free during operation.

Chapter - 15
COST ESTIMATE

15.1 PROJECT COSTING

 The costing details for the project includes the cost of the following major
elements
o Civil, Electrical & Mechanical Work
o Solar PV Power Plant
o Power Evacuation System
o Consultancy fees
o Contingencies
o Interest during Construction
 The actual cost for the system as quoted by M/s S U N E n e r g y E u r o p e has
been considered for the financial analysis. Cost break up of the project is given
below in Table 9.
Capital Cost Norm for
S No Parti culars
Solar PV project
1 Land Cost 0.75
2 Civil and Gener al Works 4.50
3 PV Modules 50.95
4 Mount ing Structures 5.00
5 Power Condi tioning Unit 10.00
6 Evacuation Cost upto Inter -connection Point 40.25
7 Preliminar y and Pre -Opera tive Expenses 9.05

8 Total Capit al Cost 84.50

Chapter - 16
FINANCIAL AND ECONOMIC EVALUATION

16.1 FINANCIAL ANALYSIS ASSUMPTIONS

 The project under study envisages installation of 5 .00 MWp Grid Interactive
Solar Photovoltaic power plant at G u r d a s p u r , P A N J A B .
 The viability of the project is based on the generation of the energy, which has
been obtained from RET screen International – Clean Energy Project Analysis
Software results which on back end consider past twenty two years of average
solar radiation data available at NASA website for the project site location.
 Average annual generation is estimated as 8 . 3 3 M U considering mono

crystalline modules for first year and every next year with the degradation of
0.5%.
 Levellised tariff for the project is calculated at discounting factor of 16.6%

as provided by CERC for solar PV power projects.
 The debt equity ratio considered is 70:30 for the funding of the project.
th
 Return on equity is considered as 19 % for first 10 years and 24 % for next 11 to
th
25 years.
 The fund required from the government for the project is expected to be repaid
within a period of 10 years after construction period of 1 2 months. Term loan is
st
proposed to be repaid in 36 equal quarterly installments, considering 1 year as
moratorium period.
 Interest rate for term loan is considered as 1 2 .5 % per annum and sensitivity
analysis has been done for the interest rate of 10 % and 14 %.
 The total life of the project is considered as 25 years.
 Depreciation has been worked out as per CERC guidelines after having 10 %
salvage value.
 The CDM benefits available would certainly improve the financials of the project.
It is a clear benefit of the project, which is strengthening the repayment capacity as
well other financial parameters. It is estimated that about 768 9 tonnes of CO 2
emission is reduced (i.e. 7689 CER is generated). Grid Emission factor for
Northern Grid is 0.923.
 CER revenue is being considered as per the existing KYOTO Protocol. CERs
selling rate considered as 12 Euro per CER and foreign exchange rate as Rs 65 per
Euro as per the current scenario. Estimated Revenue generation is Rs 55. 36 Lacs
per annum.
16.2 PROJECT FINANCIALS

 Levelized tariff is worked out as Rs 17.41 / kWh. This tariff is considered for 25
years in financial analysis.
ANNEXURES
Annexure - I
JAWAHARLAL NEHRU
NATIONAL SOLAR MISSION
Jawaharlal Nehru National Solar Mission
Towards Building SOLAR INDIA
1. Introduction
The National Solar Mission is a major initiative of the Government of India and State
Governments to promote ecologically sustainable growth while addressing India’s
energy security challenge. It will also constitute a major contribution by India to the
global effort to meet the challenges of climate change.
In launching India’s National Action Plan on Climate Change on June 30, 2008, the
Prime Minister of India, Dr. Manmohan Singh stated:
“Our vision is to make India’s economic development energy-efficient. Over a period

of time, we must pioneer a graduated shift from economic activity based on fossil
fuels to one based on non-fossil fuels and from reliance on non-renewable and
depleting sources of energy to renewable sources of energy. In this strategy, the sun
occupies centre-stage, as it should, being literally the original source of all energy.
We will pool our scientific, technical and managerial talents, with sufficient financial
resources, to develop solar energy as a source of abundant energy to power our
economy and to transform the lives of our people. Our success in this endeavour will
change the face of India. It would also enable India to help change the destinies of
people around the world.”
The National Action Plan on Climate Change also points out: “India is a tropical
country, where sunshine is available for longer hours per day and in great intensity.
Solar energy, therefore, has great potential as future energy source. It also has the
advantage of permitting the decentralized distribution of energy, thereby empowering
people at the grassroots level”.
Based on this vision a National Solar Mission is being launched under the brand
name “Solar India”.
2. Importance and relevance of solar energy for India
1. Cost: Solar is currently high on absolute costs compared to other sources of

power such as coal. The objective of the Solar Mission is to create
conditions, through rapid scale-up of capacity and technological innovation to
drive down costs towards grid parity. The Mission anticipates achieving grid
parity by 2022 and parity with coal-based thermal power by 2030, but
recognizes that this cost trajectory will depend upon the scale of global
deployment and technology development and transfer. The cost projections
vary – from 22% for every doubling of capacity to a reduction of only 60% with
global deployment increasing 16 times the current level. The Mission
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recognizes that there are a number of off-grid solar applications particularly
for meeting rural energy needs, which are already cost-effective and provides
for their rapid expansion.
2. Scalability: India is endowed with vast solar energy potential. About 5,000
trillion kWh per year energy is incident over India’s land area with most parts
receiving 4-7 kWh per sq. m per day. Hence both technology routes for
conversion of solar radiation into heat and electricity, namely, solar thermal
and solar photovoltaics, can effectively be harnessed providing huge
scalability for solar in India. Solar also provides the ability to generate power
on a distributed basis and enables rapid capacity addition with short lead
times. Off-grid decentralized and low-temperature applications will be
advantageous from a rural electrification perspective and meeting other
energy needs for power and heating and cooling in both rural and urban
areas. The constraint on scalability will be the availability of space, since in all
current applications, solar power is space intensive. In addition, without
effective storage, solar power is characterized by a high degree of variability.
In India, this would be particularly true in the monsoon season.
3. Environmental impact: Solar energy is environmentally friendly as it has

zero emissions while generating electricity or heat.
4. Security of source: From an energy security perspective, solar is the most

secure of all sources, since it is abundantly available. Theoretically, a small
fraction of the total incident solar energy (if captured effectively) can meet the
entire country’s power requirements. It is also clear that given the large
proportion of poor and energy un-served population in the country, every
effort needs to be made to exploit the relatively abundant sources of energy
available to the country. While, today, domestic coal based power generation
is the cheapest electricity source, future scenarios suggest that this could well
change. Already, faced with crippling electricity shortages, price of electricity
traded internally, touched Rs 7 per unit for base loads and around Rs 8.50 per
unit during peak periods. The situation will also change, as the country moves
towards imported coal to meet its energy demand. The price of power will
have to factor in the availability of coal in international markets and the cost of
developing import infrastructure. It is also evident that as the cost of
environmental degradation is factored into the mining of coal, as it must, the
price of this raw material will increase. In the situation of energy shortages,
the country is increasing the use of diesel-based electricity, which is both
expensive – costs as high as Rs 15 per unit - and polluting. It is in this
situation the solar imperative is both urgent and feasible to enable the country
to meet long-term energy needs.
3. Objectives and Targets
The objective of the National Solar Mission is to establish India as a global leader in
solar energy, by creating the policy conditions for its diffusion across the country as
quickly as possible.
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The Mission will adopt a 3-phase approach, spanning the remaining period of the
th th
11 Plan and first year of the 12 Plan (up to 2012-13) as Phase 1, the remaining 4
th th
years of the 12 Plan (2013-17) as Phase 2 and the 13 Plan (2017-22) as Phase 3. At
the end of each plan, and mid-term during the 12th and 13 th Plans, there will be an
evaluation of progress, review of capacity and targets for subsequent phases, based
on emerging cost and technology trends, both domestic and global. The aim would
be to protect Government from subsidy exposure in case expected cost reduction
does not materialize or is more rapid than expected.
The immediate aim of the Mission is to focus on setting up an enabling environment

for solar technology penetration in the country both at a centralized and
decentralized level. The first phase (up to 2013) will focus on capturing of the low-
hanging options in solar thermal; on promoting off-grid systems to serve populations
without access to commercial energy and modest capacity addition in grid-based
systems. In the second phase, after taking into account the experience of the initial
years, capacity will be aggressively ramped up to create conditions for up scaled and
competitive solar energy penetration in the country.
To achieve this, the Mission targets are:
• To create an enabling policy framework for the deployment of 20,000 MW of

• To ramp up capacity of grid-connected solar power generation to 1000 MW
preferential tariff. This capacity can be more than doubled – reaching
10,000MW installed power by 2017 or more, based on the enhanced and
enabled international finance and technology transfer. The ambitious target
for 2022 of 20,000 MW or more, will be dependent on the ‘learning’ of the first
two phases, which if successful, could lead to conditions of grid-competitive
solar power. The transition could be appropriately up scaled, based on
availability of international finance and technology.
• To create favourable conditions for solar manufacturing capability, particularly
• To promote programmes for off grid applications, reaching 1000 MW by 2017
and 2000 MW by 2022 .
• To achieve 15 million sq. meters solar thermal collector area by 2017 and 20
million by 2022.
• To deploy 20 million solar lighting systems for rural areas by 2022.
4. Mission strategy (phase 1 and 2)
The first phase will announce the broad policy frame work to achieve the objectives
of the National Solar Mission by 2022. The policy announcement will create the
necessary environment to attract industry and project developers to invest in
research, domestic manufacturing and development of solar power generation and
thus create the critical mass for a domestic solar industry. The Mission will work
closely with State Governments, Regulators, Power utilities and Local Self
Government bodies to ensure that the activities and policy framework being laid out
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can be implemented effectively. Since some State Governments have already
announced initiatives on solar, the Mission will draw up a suitable transition
framework to enable an early and aggressive start-up.
A. Utility connected applications: constructing the solar grid
The key driver for promoting solar power would be through a Renewable Purchase
Obligation (RPO) mandated for power utilities, with a specific solar component. This
will drive utility scale power generation, whether solar PV or solar thermal. The Solar
Purchase Obligation will be gradually increased while the tariff fixed for Solar power
purchase will decline over time.
B. The below 80°C challenge – solar collectors
The Mission in its first two phases will promote solar heating systems, which are
already using proven technology and are commercially viable. The Mission is
setting an ambitious target for ensuring that applications, domestic and industrial,
below 80 °C are solarised. The key strategy of the Mission will be to make necessary
policy changes to meet this objective:
• Firstly, make solar heaters mandatory, through building byelaws and

incorporation in the National Building Code,
• Secondly, ensure the introduction of effective mechanisms for certification and
rating of manufacturers of solar thermal applications,
• Thirdly, facilitate measurement and promotion of these individual devices
through local agencies and power utilities, and
• Fourthly, support the upgrading of technologies and manufacturing capacities
through soft loans, to achieve higher efficiencies and further cost reduction.
C. The off-grid opportunity - lighting homes of the power- deprived poor:
A key opportunity for solar power lies in decentralized and off-grid applications. In
remote and far-flung areas where grid penetration is neither feasible nor cost
effective, solar energy applications are cost-effective. They ensure that people with
no access, currently, to light and power, move directly to solar, leap-frogging the
fossil fuel trajectory of growth. The key problem is to find the optimum financial
strategy to pay for the high-end initial costs in these applications through appropriate
Government support .
Currently, market based and even micro-credit based schemes have achieved only
limited penetration in this segment. The Government has promoted the use of
decentralized applications through financial incentives and promotional schemes.
While the Solar Mission has set a target of 1000 MW by 2017, which may appear
small, but its reach will add up to bringing changes in millions of households . The
strategy will be learn from and innovate on existing schemes to improve
effectiveness. The Mission plans to:
• Provide solar lighting systems under the ongoing remote village electrification
programme of MNRE to cover about 10,000 villages and hamlets. The use of
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solar lights for lighting purposes would be promoted in settlements without
access to grid electricity and since most of these settlements are remote tribal
settlements, 90% subsidy is provided. The subsidy and the demand so
generated would be leveraged to achieve indigenization as well as lowering of
prices through the scale effect. For other villages which are connected to grid ,
solar lights would be promoted through market mode by enabling banks to
offer low cost credit.
• Set up stand alone rural solar power plants in special category States and
remote and difficult areas such as Lakshadweep, Andaman & Nicobar Islands,
Ladakh region of J&K. Border areas would also be included.
Promotion of other off grid solar applications would also be encouraged. This
would include hybrid systems to meet power, heating and cooling energy
requirements currently being met by use of diesel and other fossil fuels. These
devices would still require interventions to bring down costs but the key challenge
would be to provide an enabling framework and support for entrepreneurs to develop
markets.
Solar energy to power computers to assist learning in schools and hostels,

Management Information System (MIS) to assist better management of forests in
MP, powering milk chilling plants in Gujarat, empowering women Self Help Groups
(SHGs) involved in tussar reeling in Jharkhand, cold chain management for Primary
Health Centres (PHCs) are some examples of new areas, being tried successfully in
the country. The Mission would consider up to 30 per cent capital subsidy (which
would progressively decline over time) for promoting such innovative applications of
solar energy and would structure a non-distorting framework to support
entrepreneurship, up-scaling and innovation.
In order to create a sustained interest within the banking community, it is proposed to

provide a soft re-finance facility through Indian Renewable Energy Development
Agency (IREDA) for which Government will provide budgetary support. IREDA would
in turn provide refinance to NBFCs & banks with the condition that it is on-lend to the
consumer at rates of interest not more than 5 per cent. The Mission would provide
an annual tranche for the purpose which would be used for refinance operations for
a period of ten years at the end of which the funds shall stand transferred to IREDA
as capital and revenue grants for on-lending to future renewable energy projects.
D. Manufacturing capabilities: innovate, expand and disseminate
Currently, the bulk of India’s Solar PV industry is dependent on imports of critical raw
materials and components – including silicon wafers. Transforming India into a solar
energy hub would include a leadership role in low-cost, high quality solar
manufacturing, including balance of system components. Proactive implementation
of Special Incentive Package (SIPs) policy, to promote PV manufacturing plants,
including domestic manufacture of silicon material, would be necessary.
Indigenous manufacturing of low temperature solar collectors is already available;

however, manufacturing capacities for advanced solar collectors for low temperature
and concentrating solar collectors and their components for medium and high
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temperature applications need to be built. An incentive package, similar to SIPS,
could be considered for setting up manufacturing plants for solar thermal systems/
devices and components.
The SME sector forms the backbone for manufacture of various components and
systems for solar systems. It would be supported through soft loans for expansion of
facilities, technology upgradation and working capital. IREDA would provide this
support through refinance operations.
It should be ensured that transfer of technology is built into Government and private
procurement from foreign sources.
E. R&D for Solar India: creating conditions for research and application
A major R&D initiative to focus: firstly, on improvement of efficiencies in existing

materials, devices and applications and on reducing costs of balance of systems,
establishing new applications by addressing issues related to integration and
optimization; secondly, on developing cost-effective storage technologies which
would address both variability and storage constraints, and on targeting space-
intensity through the use of better concentrators, application of nano-technology and
use of better and improved materials. The Mission will be technology neutral,
allowing technological innovation and market conditions to determine technology
winners.
A Solar Research Council will be set up to oversee the strategy, taking into account
ongoing projects, availability of research capabilities and resources and possibilities
of international collaboration.
An ambitious human resource development programme, across the skill-chain, will

be established to support an expanding and large-scale solar energy programme,
both for applied and R&D sectors. In Phase I, at least 1000 young scientists and
engineers would be incentivized to get trained on different solar energy technologies
as a part of the Mission’s long-term R&D and HRD plan.
Pilot demonstration projects would be closely aligned with the Mission’s R & D
priorities and designed to promote technology development and cost reduction. The
Mission, therefore, envisages the setting up of the following demonstration projects
in Phase I, in addition to those already initiated by MNRE and those, which may be
set up by corporate investors:
1. 50-100 MW Solar thermal plant with 4-6 hours’ storage (which can
meet both morning and evening peak loads and double plant load
factor up to 40%).
2. A 100-MW capacity parabolic trough technology based solar thermal

plant.
3. A 100-150 MW Solar hybrid plant with coal, gas or bio-mass to address

variability and space-constraints.
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4. 20-50 MW solar plants with/without storage, based on central receiver
technology with molten salt/steam as the working fluid and other
emerging technologies.
5. Grid-connected rooftops PV systems on selected government buildings

and installations, with net metering.
6. Solar-based space-cooling and refrigeration systems to meet daytime

and summer season peak load. These could be installed on selected
government buildings and installations.
The configurations and capacities as mentioned above are indicative and would be
firmed up after consultations with various stakeholders. Bidding process will be
adopted to set up solar power demonstration plants which would help in better price
discovery for determining tariff for solar power. It will be ensured that indigenous
content is maximized. The bid documents will also include a technology transfer
th
clause. It is expected that these plants will be commissioned in the 12 plan period.
5. Proposed Roadmap
The aspiration is to ensure large-scale deployment of solar generated power for grid-
connected as well as distributed and decentralized off-grid provision of commercial
energy services. The deployment across the application segments is envisaged as
follows:
S. Application segment Target for Target for Target for

No. Phase I (2010- Phase 2 Phase 3
13) (2013-17) (2017-22)
1. Solar collectors 7 million sq 15 million sq 20 million sq
meters meters meters
2. Off grid solar 200 MW 1000 MW 2000 MW
applications
3. Utility grid power, 1,000-2000 4000-10,000 20000 MW
including roof top MW MW
6. Policy and regulatory framework
The objective of the Mission is to create a policy and regulatory environment which
provides a predictable incentive structure that enables rapid and large-scale capital
investment in solar energy applications and encourages technical innovation and
lowering of costs.
Although in the long run, the Mission would seek to establish a sector-specific legal
and regulatory framework for the development of solar power, in the shorter time
frame, it would be necessary to embed the activities of the Mission within the existing
framework of the Electricity Act 2003. The Electricity Act already provides a role for
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renewables but given the magnitude and importance of the activities under the
Mission, it would be necessary to make specific amendments. The National Tariff
Policy 2006 mandates the State Electricity Regulatory Commissions (SERC) to fix a
minimum percentage of energy purchase from renewable sources of energy taking
into account availability of such resources in the region and its impact on retail tariff.
National Tariff Policy, 2006 would be modified to mandate that the State electricity
regulators fix a percentage for purchase of solar power. The solar power purchase
obligation for States may start with 0.25% in the phase I and to go up to 3% by 2022.
This could be complemented with a solar specific Renewable Energy Certificate
(REC) mechanism to allow utilities and solar power generation companies to buy
and sell certificates to meet their solar power purchase obligations.
The Central Electricity Regulatory Commission has recently issued guidelines for
fixing feed-in-tariff for purchase of Solar power taking into account current cost and
technology trends. These will be revised on an annual basis. The CERC has also
stipulated that Power Purchase Agreement that utilities will conclude with Solar
power promoters, should be for a period of 25 years.
In order to enable the early launch of “Solar India” and encourage rapid scale up, a
scheme is being introduced in cooperation with the Ministry of Power, the NTPC and
the Central Electricity Authority, which would simplify the off-take of solar power and
minimize the financial burden on Government.
Many investors are willing to set up solar based power plants. However, sale of
power by the IPPs may be an issue due to the high cost of power and realization of
tariff for the same from the distribution companies.
In order to incentivise setting up of a large number of Solar Power Projects, while

minimizing the impact on tariff various alternatives were explored. One of the
options is to bundle solar power along with power out of the cheaper unallocated
quota of Central stations and selling this bundled power to state distribution
utilities at the CERC regulated price. This will bring down the gap between average
cost of power and sale price of power. For the
purpose of bundling, power has to be purchased by an entity and re-sold to the
state power distribution utilities. Such function can be done only by a trading
company/Discoms, as per the existing statutory provisions.
NTPC has a wholly owned subsidiary company engaged in the business of trading of
power – NTPC Vidyut Vyapar Nigam Ltd. (NVVN). NVVN will be designated as
nodal agency by the Ministry of Power (MoP) for entering into a Power Purchase
Agreement (PPA) with Solar Power Developers. The PPAs shall be signed with the
developers who will be setting up Solar Projects within next three years (i.e. upto
March 2013) and are connected to the grid at 33 KV level and above. The PPAs will
be valid for a period of 25 years. For each MW of solar power installed capacity for
which PPA is signed by NVVN, MOP shall allocate to NVVN an equivalent amount of
MW capacity from the unallocated quota of NTPC stations.
NVVN will bundle this power and sell this bundled power at a rate fixed as per CERC
regulations. In case of significant price movement in the market rate, the
Government will review the situation.
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When NVVN supplies the bundled power to distribution utilities, those distribution
utilities will be entitled to use part of the bundled power to meet their RPO, as
determined by the regulatory authorities. The CERC may issue appropriate
guidelines in this regard. At the end of the first phase, well-performing utilities with
proven financial credentials and demonstrated willingness to absorb solar power,
shall be included in the Scheme, in case it is decided to extend it into Phase II.
The requirement of phased indigenization would be specified while seeking

development of solar power projects under this scheme. The size of each project
would to determined so as to make phased indigenization feasible. The tariff and tax
regime for key components and segments would be suitably fine tuned so as to
promote the process of indigenization.
The Mission will encourage rooftop solar PV and other small solar power plants,
connected to LT/11 KV grid, to replace conventional power and diesel-based
generators. Operators of solar PV rooftop devices will also be eligible to receive the
feed-in tariff fixed by the CERC, both on the solar power consumed by the operator
and the solar power fed into the grid. Utilities will debit/credit the operator for the net
saving on conventional power consumed and the solar power fed into the grid, as
applicable. A Generation Based Incentive will be payable to the utility to cover the
difference between the solar tariff determined by CERC, less the base price of Rs.
5.50/kWh with 3% p.a. escalation. The metering and billing arrangements between
the utility and the rooftop PV operator, will be as per guidelines/regulations of the
appropriate commission.
State Governments would also be encouraged to promote and establish solar

generation Parks with dedicated infrastructure for setting up utility scale plants to
ensure ease of capacity creation.
Fiscal incentives
It is also recommended that custom duties and excise duties concessions/

exemptions be made available on specific capital equipment, critical materials ,
components and project imports.
Solar Manufacturing in India
One of the Mission objectives is to take a global leadership role in solar

manufacturing (across the value chain) of leading edge solar technologies and target
a 4-5 GW equivalent of installed capacity by 2020, including setting up of dedicated
manufacturing capacities for poly silicon material to annually make about 2 GW
capacity of solar cells. India already has PV module manufacturing capacity of about
700 MW, which is expected to increase in the next few years. The present
indigenous capacity to manufacture silicon material is very low, however, some
plants are likely to be set up soon in public and private sector. Currently, there is no
indigenous capacity/capability for solar thermal power projects; therefore new
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facilities will be required to manufacture concentrator collectors, receivers and other
components to meet the demand for solar thermal power plants.
To achieve the installed capacity target, the Mission recommends the following:
• Local demand creation: The 20 GW plan supported with right level of

incentives for solar generation coupled with large government
pilot/demonstration programs will make the Indian market attractive for solar
manufacturers
• Financing & Incentives: SEZ like incentives to be provided to the
manufacturing parks which may include:
o Zero import duty on capital equipment, raw materials and excise duty
exemption
o Low interest rate loans, priority sector lending
o Incentives under Special Incentive Package (SIPs) policy to set up
integrated manufacturing plants; (i) from poly silicon material to solar
modules; and (ii) thin film based module manufacturing plants. . Under
the SIP scheme of the Department of Information Technology, there
are 15 applications in the domain of solar photovoltaic, which includes
cell manufacturing, (both crystalline and thin film) and poly-silicon
manufacturing among others. The combined capacity projected by
these 15 companies could result in the production of 8-10 GW solar
power by the year 2022 which would be sufficient for meeting the
Mission targets even after accounting for exports.
o It is also recommended that solar components be covered under the
Bureau of Energy Efficiency’s star rating programme to ensure high
standards.
Similar incentives will be required for manufacture of CSP systems and their
components. A Committee may be set up to formulate a policy for promotion of solar
thermal manufacture in the country.
• Ease of doing business: In consultation with States, create a single window

clearance mechanism for all related permissions.
• Infrastructure & ecosystem enablers: Create 2-3 large solar manufacturing

tech parks consisting of manufacturing units (across the solar value chain),
housing, offices, and research institutes. These will have 24x7 power and
water supply and will likely need to be located near large urban centres with
good linkages to ports and airports to ensure rapid access to imported raw
materials and high quality engineering talent.
7. Research and Development
This Mission will launch a major R&D programme in Solar Energy, which will focus
on improving efficiency in existing applications, reducing costs of Balance of
Systems, testing hybrid co-generation and addressing constraints of variability,
space-intensity and lack of convenient and cost-effective storage.
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The R&D strategy would comprise dealing with five categories viz. i) Basic research
having long term perspective for the development of innovative and new materials,
processes and applications, ii) Applied research aimed at improvement of the
existing processes, materials and the technology for enhanced performance,
durability and cost competitiveness of the systems/ devices, iii) Technology
validation and demonstration projects aimed at field evaluation of different
configurations including hybrids with conventional power systems for
obtaining feedback on the performance, operability and costs, iv) development
of R&D infrastructure in PPP mode, and v) support for incubation and start ups.
To support the R&D Strategy, the Mission may include the following:
- Setting up a high level Research Council comprising eminent scientists,

technical experts and representatives from academic and research
institutions, industry, Government and Civil Society to guide the overall
technology development strategy. TheCouncil may invite eminent
international experts in the field to support its work. The Council will review
and update the technology roadmap to achieve more rapid technological
innovation and cost reduction.
- A National Centre of Excellence (NCE) shall be established to implement the

technology development plan formulated by the Research Council and serve
as its Secretariat. It will coordinate the work of various R&D centres, validate
research outcomes and serve as an apex centre for testing and certification
and for developing standards and specifications for the Solar industry. It is
envisaged that the Solar Energy Centre of the MNRE will become part of the
National Centre of Excellence.
- The Research Council, in coordination with the National Centre of Excellence,

inventorize existing institutional capabilities for Solar R&D and encourage the
setting up of a network of Centres of Excellence, each focusing on an R&D
area of its proven competence and capability. These Centres may be located
in research institutes, academic institutions or even private sector companies.
They will be encouraged to bid for various components of the Solar
Technology Development Plan, and may do so adopting a consortium
approach, collaborating with other institutions, including foreign
collaboration, with proven capabilities.
- The NCE will provide a national platform for networking among different
centers of excellence and research institutions, including foreign R&D
institutions and high-tech companies.
- The NCE will serve as the funding agency to support performance-linked solar
R&D programmes. This will include funding, or co-funding of pilot
demonstration projects in areas relevant to Mission objectives. Funding will
need to be adequate, predictable and should typically cover a time frame
extending from 5-10 years.
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- The NCE will be the main interface with international research institutions,
research groups from foreign countries, high-tech start-up companies and
multilateral programmes (such as those which may emerge from current
negotiations under the UNFCCC). It will encourage joint projects between
international partners and Indian centres of excellence, with sharing of IPR, as
also encourage the setting up of R&D bases in India by advanced high-tech
companies from abroad.
- The NCE will coordinate with the IMD, ISRO and other concerned agencies,
the detailed mapping of ground insulation, particularly in high potential solar
regions of the country. Accurate and reliable data is a critical requirement for
all solar applications, in particular, concentrated solar power (CSP).
- In drawing up the Solar Technology Development Plan, the Research Council

will review ongoing and proposed R&D initiatives of MNRE, the Department of
Science and Technology, the Ministry of Earth Sciences and other agencies
and institutions and incorporate them, as appropriate, in its Plan.
In order to provide support for incubation and start ups, the Mission could tie up with
institutions like Centre for Innovation, Incubation and Entrepreneurship (CIIE) based
in IIM Ahmedabad to incubate solar energy start-ups and SMEs in India through
mentoring, networking and financial support. A fund could be established to aim at
supporting at least 50 start-ups developing and deploying solar related technologies
across India over the next 5 years and would be managed by a professional entity.
The Fund shall be structured as a Venture Fund and would be operated as a hub
and spoke model with the professional entity coordinating the fund activities and also
identifying like minded institutions for administering the fund. The Fund would
provide financial (equity/debt) support to start-ups, entrepreneurs and innovators for
R&D and pilot of new solar related technologies and for creating new and unique
business models which have a potential of increasing the deployment of solar related
technologies in India – for all segments including consumer, SME and commercial
usage. The initiative shall be structured ideally in a private-public partnership model,
to be able to provide risky capital to the aspiring entrepreneurs. It would also attract
contributions from private stakeholders, amounting to, at least 10% of that of the
Government. The returns generated on the Government support to the Fund shall be
ploughed back for further promoting incubation activities in this space.
The Mission would also explore the possibility of collaborating with CSIR to launch
an Open Source Solar Development initiative on similar lines as the Open Source
Drug Discovery platform of CSIR
8. Human Resource Development
The rapid and large-scale diffusion of Solar Energy will require a concomitant
increase in technically qualified manpower of international standard. Some capacity
already exists in the country, though precise numbers need to be established.
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However, it is envisaged that at the end of Mission period, Solar industry will employ
at least 100,000 trained and specialized personnel across the skill spectrum. These
will include engineering management and R&D functions.
The following steps may be required for Human Resource Development:
o IITs and premier Engineering Colleges will be involved to design and develop
specialized courses in Solar Energy,with financial assistance from
Government. These courses will be at B. Tech, M. Tech and Ph. D level.
Some of the IITs, Engineering Colleges and Universities are teaching solar
energy at graduation and post graduation level. Centres for Energy studies
have been set up by some of the IITs and engineering colleges. These
initiatives will be further strengthened. In addition, a countrywide training
programme and specialized courses for technicians will be taken up to meet
the requirement of skilled manpower for field installations and after sales
service network. The Directorate General of Education and Training under
the Ministry of Labour has agreed to introduce training modules for course
materials for technicians in order to create a skilled workforce which could
service and maintain solar applications. MNRE has already initiated this
activity with the Ministry of Labour and a short term training module is to be
introduced during the current academic session. In addition, industry is also
working with some of the ITIs to create a skilled work force.
o A Government Fellowship programme to train 100 selected engineers /

technologies and scientists in Solar Energy in world class institutions abroad
will be taken up. This may need to be sustained at progressively declining
levels for 10 years. This could be covered under the ongoing bilateral
programmes. Institution to institution arrangements will also be developed.
Fellowships will be at two levels (i) research and (ii) higher degree (M. Tech)
in solar energy. MNRE is already implementing a fellowship programme in
this regard, which will be expanded to include students from a larger number
of academic institutions. This may be done in consultation with industry to
offer employment opportunities.
o Setting up of a National Centre for Photovoltaic Research and Education at

IIT, Mumbai drawing upon its Department of Energy Science and Engineering
and its Centre for Excellence in Nano-Electronics.
9. Institutional Arrangements for implementing the Mission
This Mission will be implemented by an autonomous Solar Energy Authority and or

an autonomous and enabled Solar Mission, embedded within the existing structure
of the Ministry of New and Renewable Energy. The Authority/Mission secretariat will
be responsible for monitoring technology developments, review and adjust
incentives, manage funding requirements and execute pilot projects. The Mission will
report to the Prime Minister’s Council on Climate Change on the status of its
programme.
MNRE Page 13 of 15
The broad contours of an autonomous and enabled Mission would comprise of:
i) A Mission Steering Group, chaired by the Minister for New and Renewable
Energy and composed of representatives from all relevant Ministries and
other stakeholders, will be set up to over see the over all implementation of
the National Solar Mission. The Mission Steering Group will be fully
empowered to approve various schemes/ projects/ policies and the related
financial norms for all schemes covered under the National Solar Mission
(NSM). The Mission Steering group will also authorize any
modifications/deviations in the norms on ongoing schemes.
ii) A Mission Executive Committee, chaired by Secretary, Ministry of New and
Renewable Energy, will periodically review the progress of implementation of
the projects approved by the Mission Steering Group.
iii) An empowered Solar Research Council headed by an eminent scientist will
advise the Mission on all R&D, technology and capacity building related
matters. In addition, Industry Advisory Council will advise the Mission on all
matters relating to industrial development, technology
transfer/absorption/joint ventures, incentives and investment related matters.
iv) A Mission Director, with the rank of an Additional Secretary, would head the
Mission secretariat and be responsible for day to day functioning and also
achieving the goals laid out in a time bound manner. The Mission Secretariat
would have Joint secretary/ Scientist G level officers including other
scientists, experts and consultants.
10. International Collaboration
There is considerable work going on in several countries to develop Solar Energy as

a clean and alternative source of energy. Strategic international collaborations and
partnerships aimed at meeting the priorities set out under the Mission would be
developed, along with effective technology transfer mechanisms and strong IPR
protection.
Cooperation will be encouraged at the level of research organizations along with

industry partners and at individual level also to generate new ideas. Wherever
feasible, cooperation through bilateral and multilateral arrangements would be
facilitated. DST has been supporting joint research with several countries under
bilateral programmes. More recently a research programme is to be taken up by
DST, in consultation with MNRE, with the European Union. MNRE is also
implementing some bilateral projects under the Asia Pacific Partnership Programme
with Japan and Australia. A project on solar radiation data collection is under
implementation with USA.
11. Financing the Mission activities
The fund requirements for the Mission would be met from the following sources or
combinations:
MNRE Page 14 of 15
i) Budgetary support for the activities under the National Solar Mission
established under the MNRE;
ii) International Funds under the UNFCCC framework, which would enable
upscaling of Mission targets.
The Mission strategy has kept in mind the two-fold objectives, to scale-up
deployment of solar energy and to do this keeping in mind the financial constraints
and affordability challenge in a country where large numbers of people still have no
access to basic power and are poor and unable to pay for high cost solutions.
The funding requirements and arrangements for Phase II will be determined after a
review of progress achieved at the end of the 11 th Plan and an analysis of the
efficacy of the model adopted for capacity building of utility scale solar power.
MNRE Page 15 of 15
Annexure - II
MISSION RESOLUTION BY
MINISTRY OF NEW AND RENEWABLE ENERGY
84
No.5/14/2008-P&C
Government of India
Ministry of New and Renewable Energy
Block No. 14, C.G.O. Complex,

Lodi Road, New Delhi -110 003
th
Dated: 11 January, 2010
RESOLUTION
Subject: Jawaharlal Nehru National Solar Mission
Consequent to the announcement of the National Action Plan on Climate

Change in June 2008, which identified development of solar energy technologies in the
country as a National Mission, the Government of India has approved “Jawaharlal
Nehru National Solar Mission” (JNNSM) which aims at development and deployment of
solar energy technologies in the country to achieve parity with grid power tariff by
2022.
2. The objective of the National Solar Mission is to establish India as a global

leader in solar energy, by creating the policy conditions for its diffusion across the
country as quickly as possible.
3. The Mission will adopt a 3-phase approach, spanning the remaining period of the
th th
11 Plan and first year of the 12 Plan (up to 2012-13) as Phase 1, the remaining 4 years of
th th
the 12 Plan (2013-17) as Phase 2 and the 13 Plan (2017-22) as Phase 3. At the end of
th th
each plan, and mid-term during the 12 and 13 Plans, there will be an evaluation of
progress, review of capacity and targets for subsequent phases, based on emerging cost
and technology trends, both domestic and global. The aim would be to protect
Government from subsidy exposure in case expected cost reduction does not materialize
or is more rapid than expected.
4. The immediate aim of the Mission is to focus on setting up an enabling

environment for solar technology penetration in the country both at a centraliz ed and
decentralized level. The first phase (up to 2012- 2013) will focus on capturing of the low-
hanging options in solar thermal; on promoting off-grid systems to serve
populations without access to commercial energy and modest capacity addition in grid-
based systems. In the second phase, after taking into account the experience of the
initial years, capacity will be aggressively ramped up to create conditions for up scaled
and competitive solar energy penetration in the country.
5. To achieve this, the Mission targets are:
To create an enabling policy framework for the deployment of 20,000 MW of

To ramp up capacity of grid-connected solar power generation to 1000 MW

preferential tariff. This capacity can be more than doubled – reaching 10,000MW
installed power by 2017 or more, based on the enhanced and enabled
international finance and technology transfer. The ambitious target for 2022 of
1
7
20,000 MW or more, will be dependent on the ‘learning’ of the first two phases,
which if successful, could lead to conditions of grid-competitive solar power. The
transition could be appropriately up scaled, based on availability of international
finance and technology.
To create favourable conditions for solar manufacturing capability, particularly

To promote programmes for off grid applications, reaching 2000 MW by 2022
including 20 million solar lighting systems.
To achieve 20 million sq. solar thermal collector area by 2022.
6. The Government has given In Principle approval to the over all targets
proposed for the various activities covered under the Jawaharlal Nehru National Solar
Mission.
7. The Government has also decided to approve the implementation of the first
phase of the Jawaharlal Nehru National Solar Mission during 2009-2013 and the
target to set up 1,000 MW grid connected ( 33 KV and above) solar plants,100 MW of roof
top and small solar plants connected to LT/11 KV grid and 200 MW capacity
equivalent off-grid solar applications in the first phase of the Mission, till March, 2013. An
amount of Rs.4337 crore has been approved for the activities proposed under the first
phase of the Mission till March 2013.
8. The implementation of the target of 1,000 MW of grid connected (33 KV and

above) solar power plants will be through NTPC Vidyut Vyapar Nigam (NVVN), a
trading subsidiary of NTPC Limited. NVVN will directly purchase the solar power from the
project developers as per the norms and guidelines fixed in this regard.
9. 100 MW capacity of solar roof top and small grid connected solar power plants will be
connected to LT/11 KV grid of the distribution utility and the solar power will be
directly purchased by the distribution utilities as per the norms and guidelines fixed in
this regard.
10. 200 MW equivalent capacity of off-grid solar applications, both solar thermal and
photovoltaic will be implemented through a combination of low interest bearing loans
and /or central financial assistance. as per the norms and guidelines fixed in this
regard.
11. In addition, the Mission will support various activities, as considered necessary, on
R&D, Human Resource Development, Technical Assistance, training, publicity and
awareness etc. for successful implementation of the Mission
12. The detailed guidelines for implementation of each of the above components of the
Jawaharlal Nehru National Solar Mission will be issued separately.
(Gauri Singh)
Joint Secretary to the Government of India
Order
Ordered that this resolution be published in the Gazette of India Extraordinary.
Ordered that a copy of the resolution be communicated to the

Ministries/Departments of the Government of India, State Governments, Administration of
Union Territories, Central Electricity Regulatory Commission, State Electricity
Regulatory Commissions and to all other concerned
(Gauri Singh)
Joint Secretary to the Government of India
Annexure - III
SINGLE LINE DIAGRAM OF

POWER SUPPLY SYSTEM
Single Line Diagram for Power supply arrangement
PT for BUS PT FOR

Out 1 BSES – I GTG SOLAR BSES – II OUT 2
SYNCH COUPLER SYNCH
To To To
Transformer Transformer Transformer
Incomer 1 TO AC Plant Incomer 2
1 2 3
Annexure - IV
LOCATION MAP OF GURDASPUR DIST, PANJAB

Annexure - V
SEISMIC ZONE – MAP OF INDIA

Seismic Zone – Map of India
Project Site
Prepared for Power Works Department (GNCTD), New Delhi

Annexure - VI
PHOTOGRAPHS OF PROJECT SITE

Annexure - VII
CERC GUIDELINES FOR TARIFF

CALCULATION OF SPV PROJECTS
CENTRAL ELECTRICITY REGULATORY COMMISSION
NEW DELHI
Coram
1. Dr. Pramod Deo, Chairperson
2. Shri R. Krishnamoorthy, Member
3. Shri S.Jayaraman, Member
4. Shri V.S.Verma, Member
Petition No.284/2009 (Suo Motu) IN
THE MATTER OF
Determination of generic levellised generation tariff under Regulation 8 of the

Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination
from Renewable Energy Sources) Regulations, 2009
ORDER
The Central Electricity Regulatory Commission (hereinafter referred to as “the
Central Commission”) has been vested with the following functions under clauses (a) and
(b) of Section 79 of the Electricity Act, 2003 (hereinafter referred to as “the Act”):
(a) To regulate the tariff of the generating companies owned or controlled by the
Central Government;
(b) To regulate the tariff of generating companies other than those owned or
controlled by the Central Government, if such generating companies enter into or
otherwise have a composite scheme for generation and sale of electricity in more
than one State.
2. Section 61 of the Act empowers the Central Commission to specify, by
regulations, the terms and conditions for the determination of tariff in accordance with the
provisions of the said section and the National Electricity Policy and Tariff Policy. Sub-
section (h) of Section 61 of the Act stipulates that while determining tariff, the
Commission shall be guided by the aspect of promotion of co-generation and generation
from renewable sources of energy. Clause 6.4 of the Tariff Policy entrusts the
responsibility on the Commission to frame guidelines for pricing of non-firm power
especially from non-conventional sources when procurement is not through the
competitive bidding process.
3. In exercise of the powers vested under Section 61 read with Section 178 of the Act
and after previous publication, the Commission has notified the Central Electricity
Regulatory Commission (Terms and Conditions for Tariff determination from Renewable
Energy Sources) Regulations, 2009, (hereinafter referred to as “the RE Regulations”).
The RE Regulations provide for terms and conditions and the procedure for
determination of tariff of the following categories of renewable energy generating stations:
(a) Wind Power Project;
(b) Small Hydro Projects;
(c) Biomass Power Projects;
(d) Non-fossil fuel-based co-generation Plants;
(e) Solar Photo voltaic (PV) and Solar Thermal Power Projects.
4. The Renewable Energy (RE) Regulations require the Commission to determine
the generic tariff on the basis of the suo motu petition, for the RE technologies for which
norms have been provided in the regulations. Generic Tariff is different from the project
specific tariff for which a project developer has to file petition before the commission as
per the format provided in the RE regulations. Pertinently, project specific tariff has been
envisaged for the new RE technologies and the technologies which are still at the
nascent stage of development, and the Commission shall determine the project specific
tariff for such technologies on a case to case basis.
5. Clause (1) of Regulation 8 of the RE Regulations provides that “the Commission
shall determine the generic tariff on the basis of suo motu petition at least six months in
advance at the beginning of each year of the Control period for renewable energy
technologies for which norms have been specified under the Regulations.” As the first
year of the control period has already commenced with the notification of the regulations
with effect from 16.9.2009, the Commission in due discharge of the mandate under
Regulation 8(1) of RE Regulations proceeds to determine the generic tariff of the RE
projects for the first year of control period (i.e. FY 2009-10) through this order based on
the financial principles and technology specific parameters.
USEFUL LIFE
6. Sub-clause (y) of clause(1) of Regulation 2 of the RE Regulations defines ‘useful
life’ in relation to a unit of a generating station (including evacuation system) to mean the
following duration from the date of commercial operation of such generation facility:
Renewable Energy projects Years

Wind Energy 25
Small Hydro 35
Biomass 20
Non-fossil fuel co-generation 20
Solar PV 25
Solar Thermal 25
CONROL PERIOD
7. Regulation 5 of the RE Regulations provides that the control period for
determination of tariff for renewable energy projects (RE projects) shall be of three years
of which the first year is to be considered from the date of notification of these regulations
till 31.3.2010. Proviso to the said regulation stipulates that the tariff determined for the RE
projects commissioned during the control period shall continue to be applicable for the
entire duration of the tariff period as specified in Regulation 6 of the RE Regulations.
However, the benchmark cost for Solar PV and Solar thermal may be reviewed by the
Commission annually.
TARIFF PERIOD
8. In terms of Regulation 6 of the RE Regulations, the tariff period in respect of the
RE projects is as under:
Renewable Energy projects Years

Wind Energy 13
Small Hydro (less than 5MW) 35
Small Hydro (between 5MW to 25 MW) 13
Biomass 13
Non-fossil fuel co-generation 13
Solar PV and Solar Thermal 25
In terms of clauses (4) and (5) of the said regulation, the tariff period specified
above shall be reckoned from the date of commercial operation of the RE projects and
the tariff determined under the regulations shall be applicable for the duration of the tariff
period.
TARIFF STRUCTURE
9. Clause (1) of Regulation 9 of the RE Regulations stipulates that the tariff for RE
projects shall be single part tariff consisting of the following fixed cost
components: (a) Return on equity;

(b) Interest on loan capital;
(c) Depreciation;
(d) Interest on working capital;
(e) Operation and maintenance expenses;
For renewable energy technologies having fuel cost component, like biomass
power projects and non-fossil fuel based cogeneration, single part tariff with two
components, fixed cost component and fuel cost component, is to be determined.
TARIFF DESIGN
10. In terms of Regulation 10 of the RE Regulations, the tariff design for renewable
energy generating stations is as under:
“(1) The generic tariff shall be determined on levellised basis for the Tariff Period.
Provided that for renewable energy technologies having single part tariff with two
components, tariff shall be determined on levellised basis considering the year of
commissioning of the project for fixed cost component while the fuel cost
component shall be specified on year of operation basis.
(2) For the purpose of levellised tariff computation, the discount factor equivalent to
weighted average cost of capital shall be considered.
(3) Levellisation shall be carried out for the ‘useful life’ of the Renewable Energy while
tariff shall be specified for the period equivalent to ‘Tariff Period.”
LEVELLISED TARIFF
11. Levellised Tariff is calculated by carrying out levellisation for ‘useful life’ of each
technology considering the discount factor for time value of money.

Discount Factor:
The discount factor considered for this purpose is equal to the weighted average cost of
the capital on the basis of normative debt: equity ratio (70:30) specified in the
Regulations. Considering the normative debt equity ratio and weighted average of the
rates for interest and equity component, the discount factor is calculated.
Interest Rate considered for the loan component (i.e. 70% ) of Capital Cost is
14.29% (as explained later ). For equity component (i.e. 30%) rate of Return on Equity
(ROE) for the first ten (10) years is 19% and for 11th year onward till useful life of the RE
project the rate is 24%. Based on these rates, the weighted average of rate of ROE has
been calculated which is 22%. .
The discount factor derived by this method for each technology is as shown in the
following table:
Details Wind Small Hydro Biomass Non- Solar Solar

Energy fossil PV Thermal
fuel co-
generati
on
Less than Between 5 Other Other
5 MW MW to 25 States states
(Himachal MW (below (5 MW
Pradesh, (Himachal 5 MW to 25
Uttarakha Pradesh, MW)
nd and Uttarakha
North nd and
Eastern North
States) Eastern
States
Discount
Rate (%) 16.60 16.8 16.8 16.8 16.8 16.45 16.45 16.60 16.60
CAPITAL COST
12. Regulation 12 of the RE Regulations stipulates that the norms for the capital cost
as specified in the technology specific chapter shall be inclusive of all capital works like
plant and machinery, civil works, erection and commissioning, financing and interest
during construction, and evacuation infrastructure up to inter-connection point.
Technology specific capital cost of RE projects is discussed hereinunder:
(A) Capital Cost of Wind Energy
13. Wind Power projects located at the wind sites having minimum annual Wind Power
Density(WPD) of 200 Watt/m2 measured at hub height of 50 meters and using new wind
turbine generators are eligible for tariff determination under the RE Regulations.
Regulation 24 provides that the capital cost for wind energy project shall include wind
turbine generator including its auxiliaries, land cost, site development charges and other
civil works, transportation charges, evacuation cost up to inter-connection point, financing
charges and IDC. The normative capital cost of the wind energy projects shall be Rs.515
lakh/MW for the year 2009-10 being the first year of the control period and shall be
subject to the adjustment over the control period on account of changes in the wholesale
price index for steel and electrical machinery as per the indexation mechanism specified
in Regulation 25 of the RE Regulations.
(B) Capital cost of Small Hydro Projects
14. Small Hydro Projects for the purpose of the RE Regulations cover those projects
which are located at the sites approved by the State Nodal Agencies/State Governments
using new plant and machinery and with installed power plant capacity lower than or
equal to 25 MW. Regulation 28 of the RE Regulations specifies the following normative
capital cost for small hydro projects during the first year of the control period i.e. FY 2009-
2010:
Region Project Size Capital Cost
(Rs in lakh/ MW)
Himachal Pradesh, Below 5 MW 700
Uttarakhand and North 5 MW to 25 MW 630
Eastern States
Other States Below 5 MW 550
5 MW to 25 MW 500
The capital cost for subsequent years of the control period shall be determined on
the basis of indexation formula under Regulation 29 to cater for the changes in the
wholesale price index for steel and electrical machinery.
(C) Capital Cost of Biomass based Power Projects
15. Biomass power project for the purpose of these regulations covers the projects using
new plant and machinery based on Rankine cycle technology application using water
cooled condenser, and biomass fuel sources where use of fossil fuel is limited to 15% of
total fuel consumption on annual basis. Regulation 34 of RE Regulations provides that
the normative capital cost for the biomass power projects based on Rankine cycle
technology application using water cooled condenser shall be Rs.450 lakh/MW for the
first year of the control period i.e. 2009-10 for tariff determination.
(D) Capital Cost of Non-fossil fuel based Cogeneration Projects
16. Non-fossil based cogeneration has been defined as the process in which more than
one form of energy is produced in a sequential manner by using biomass. As per
Regulation 4(4) of the RE Regulations, a project to qualify as the non-fossil based co-
generation project must be using new plant and machinery with topping cycle mode of
operation which uses the non-fossil fuel input for power generation and utilizes the
thermal energy generated for useful heat applications in other industrial activities
simultaneously, and where the sum of useful power output and half of useful thermal
output is greater than 45% of the plant’s energy consumption during the season. The
normative capital cost of the non-fossil based co-generation project shall be Rs.445
lakh/MW for 2009-10 i.e. the first year of the control period.
(E) Capital Cost of Solar PV Projects
17. Solar Photo Voltaic (PV) power projects which directly convert solar energy into
electricity using the crystalline silicon or thin film technology or any other technology
as approved by the Ministry of New and Renewable Energy and are connected to the
grid qualify for the purpose of tariff determination under the RE Regulations. As
per Regulation 57, the normative capital cost for Solar PV Power Project shall be
Rs.1700 lakh/MW for the first year of the control period.
(F) Solar Thermal Power Project
18. In order to qualify for tariff determination under the RE Regulations, Solar Thermal
Power Project shall be based on concentrated solar power technologies with line
focusing or point focusing as may be approved by the Ministry of New and Renewable
Energy and which uses direct sunlight to generate sufficient heat to operate a
conventional power cycle to generate electricity. As per Regulation 61 of the RE
Regulations, the normative capital cost for Solar Thermal Power Project shall be Rs.1300
lakh/MW for 2009-10.

19. The capital cost for the first year (2009-10) of the control period in respect of the
renewable energy power generating stations is summarized as under:
(Rs in lakh/MW )
Renew able Energy Projects Capital cost

(1) Wind Energy 515
(2) Small Hydro
(a) Himachal Pradesh, Uttarakhand and North Eastern 700
States (less than 5 MW)
(b) Himachal Pradesh, Uttarakhand and North Eastern 630
States (5MW to 25 MW)
(c) Other States (below 5 MW) 550
(d) Other States ( 5MW to 25 MW) 500
(3) Biomass power projec ts 450
(4) Non-fossil fuel based co-generation projects 445
(5) Solar Photovoltaic power projects 1700
(6) Solar Thermal power projects 1300
DEBT-EQUITY RATIO
20. Clause (1) of Regulation 13 of the RE Regulations provides that the debt-equity
ratio of 70:30 is to be considered for determination of generic tariff based on suo motu
petition.
21. Based on the debt equity ratio of 70:30, the debt and equity components of the
normative capital cost for determination of tariff for the RE projects have been worked out
as under:
(Rs in lakh)
Renewable Energy Projects Debt Equit y

(1) Wind Energy (for all zones) 360.5 154.5
(2) Small Hydro
Himachal Pradesh, Uttara khand and North Eastern
490 210
States (below 5 MW)
Himachal Pradesh, Uttara khand and North Eastern
441 189
States (5 MW to 25 MW)
Other States (below 5 MW) 385 165
Other States ( 5MW to 25 MW) 350 150
(3) Biomass
315 135
(4) Non-fossil fuel co-generation

311.5 133.5
(5) Solar PV 1190 510

(6) Solar Thermal 910 390
RETURN ON EQUITY
22. Clause (1) of Regulation 16 of the RE Regulations provides that the value base for
the equity shall be 30% of the capital cost for generic tariff determination. Clause (2) of
the said regulation stipulates the normative return on equity as under:
(a) Pre-tax 19% per annum for the first 10 years, and
th
(b) Pre-tax 24% per annum from the 11 year.
23. In accordance with the above regulations, return on equity has been worked out in
respect of the RE generating technologies taking the value base of equity as 30% of the
capital cost as under:

(Rs in lakh)
Details Wind Small Hydro Biomas Non- Solar Solar
Energy s fossil fuel PV Thermal
co-
generatio
n
Less than Between 5 Other Other
5 MW MW to 25 States state
(Himachal MW (below s (5
Pradesh, (Himachal 5 MW MW
Uttarakhan Pradesh, to 25
d and Uttarakha MW)
North nd and
Eastern North
States) Eastern
States
Equity
opening 154.5 210 189 165 150 135 133.5 510 390
(Rs in
lakh)
Return on
Equity for
19 19 19 19 19 19 19 19 19
the first 10
years (%)
Return on
Equity
after first 24 24 24 24 24 24 24 24 24
10 years
(%)
Weighted
average
22 22.57 22.57 22.57 22.57 21.50 21.50 22 22
rate on
ROE (%)
INTEREST ON LOAN
24. Clause (1) of Regulation 14 of the RE Regulations provides that the loan tenure of
10 years is to be considered for the purpose of determination of tariff for RE projects.
Clause (2) of the said regulation provides for computation of the rate of interest on loan
as under:
“(a) The loans arrived at in the manner indicated above shall be considered as gross
normative loan for calculation for interest on loan. The normative loan outstanding as on
April 1st of every year shall be worked out by deducting the cumulative repayment up to
March 31st of previous year from the gross normative loan.
(b) For the purpose of computation of tariff, the normative interest rate shall be considered
as average long term prime lending rate (LTPLR) of State Bank of India (SBI) prevalent
during the previous year plus 150 basis points.
(c) Notwithstanding any moratorium period availed by the generating company, the
repayment of loan shall be considered from the first year of commercial operation of the
project and shall be equal to the annual depreciation allowed.”
25. In terms of the above, the computations of interest on loan for determination of
tariff in respect of the RE projects treating the value base of loan as 70% of the capital
cost and the weighted average of SBI prime lending rate for the financial year 2008-09
plus 150 basis points, are as under:
(Rs in lakh)
Details Wind Small Hydro Biomass Non-fossil Solar Solar
Energy fuel co- PV Thermal
generation
Less than 5 Between 5 Other Other
MW MW to 25MW States states
(Himachal (Himachal (below (5 MW
Pradesh, Pradesh, 5 MW to 25
Uttarakhand Uttarakhand MW)
and North and North
Eastern Eastern
States) States
Gross loan
opening (Rs 360.5 490 441 385 350 315 311.5 1190 910
in lakh)
Period of
repayment 10 10 10 10 10 10 10 10 10
Rate of
interest (%) 14.29 14.29 14.29 14.29 14.29 14.29 14.29 14.29 14.29
DEPRECIATION
26. Regulation 15 of the RE Regulations provides for computation of depreciation in
the following manner:
“(1) The value base for the purpose of depreciation shall be the Capital Cost of the asset
admitted by the Commission. The Salvage value of the asset shall be considered as 10%
and depreciation shall be allowed up to maximum of 90% of the Capital Cost of the asset.
(2) Depreciation per annum shall be based on ‘Differential Depreciation Approach’ over
loan tenure and period beyond loan tenure over useful life computed on ‘Straight Line
Method’. The depreciation rate for the first 10 years of the Tariff Period shall be 7% per
annum and the remaining depreciation shall be spread over the remaining useful life of
the project from 11th year onwards.
(3) Depreciation shall be chargeable from the first year of commercial operation.
Provided that in case of commercial operation of the asset for part of the year,
depreciation shall be charged on pro rata basis.”
27. In accordance with the above, the rate of depreciation for the first 10 years has
been considered as 7% and the rate of depreciation from the 11th year onwards has been
spread over the balance useful life of the RE project as under:
Details Wind Small Biomass Non-fossil Solar Solar

Energy Hydro fuel co- PV Thermal
generation
Useful Life (in years)
25 35 20 20 25 25
Rate of depreciation for

10 years (%) 7.00 7.00 7.00 7.00 7.00 7.00
Rate of depreciation
after first 10 years (%) 1.33 0.80 2.00 2.00 1.33 1.33
INTEREST ON WORKING CAPITAL
28. Regulation 18 of the RE Regulations provides for the working capital requirements of
the RE projects as under:
“(1) The Working Capital requirement in respect of wind energy projects, small hydro
power, solar PV and Solar thermal power projects shall be computed in accordance with
the following :
Wind Energy / Small Hydro Power /Solar PV / Solar thermal
(a) Operation & Maintenance expenses for one month;

(b) Receivables equivalent to 2 (Two) months of energy charges for sale of electricity
calculated on the normative CUF;
(c) Maintenance @ 15% of operation and maintenance expenses
(2) The Working Capital requirement in respect of biomass power projects and non-fossil
fuel based co-generation projects shall be computed in accordance with the following
clause:
Biomass Power and Non-fossil fuel Co-generation
(a) Fuel costs for four months equivalent to normative PLF;
(b) Operation & Maintenance expense for one month;
(c) Receivables equivalent to 2 (Two) months of fixed and variable charges for sale of
electricity calculated on the target PLF;
(d) Maintenance spare @ 15% of operation and maintenance expenses
(3) Interest on Working Capital shall be at interest rate equivalent to average State Bank of
India short term PLR during the previous year plus 100 basis points”
29. Receivables equivalent to two months of actual fixed cost have been considered.
The interest on working capital has been worked out as specified below for determination
of tariff of the RE projects:
(Rs in lakh)
Details Wind Small Biomass Non-fossil Solar Solar
Energy Hydro fuel co- PV Thermal
generation
(A) For Fixed charges
(i) O&M expenses (month) 1 1 1 1 1 1

(ii) Maintenance spares (%)
15 15 15 15 15 15
of O&M expenses
(iii) Receivables (months) 2 2 2 2 2 2
(B) For Variable Charges
Biomass/Bagasse stock - - 4 4 - -
(months)
(C ) Rate of Interest on
13.79 13.79 13.79 13.79 13.79 13.79
working capital (%)
OPERATION AND MAINTENANCE EXPENSES
30. Regulation 18 of the RE Regulations provides for Operation and Maintenance
Expenses (O&M expenses) in respect of RE projects as under:

“Operation and Maintenance Expenses
(1) Operation and Maintenance or O&M expenses’ shall comprise repair and
maintenance (R&M), establishment including employee expenses, and administrative
and general expenses.
(2) Operation and maintenance expenses shall be determined for the Tariff Period based on
normative O&M expenses specified by the Commission subsequently in these
Regulations for the first Year of Control Period.
(3) Normative O&M expenses allowed during first year of the Control Period (i.e.FY 2009-
10) under these Regulations shall be escalated at the rate of 5.72% per annum over the
Tariff Period.”
31. The normative O&M expenses for various RE technologies specified under the
relevant provisions of the RE Regulations are as under:
(a) Wind Energy: Regulation 27 of RE Regulations provides that the normative O&M
expenses for the first year of the control period (i.e. 2009-10) is Rs 6.50 lakh per MW and
shall be escalated at the rate of 5.72% per annum over the tariff period for determination
of the levellised tariff.
(b) Small Hydro: Regulation 32 of RE Regulations provides that the normative O& M
expenses for small hydro projects for the year 2009-10 shall be as given in the table
below and shall be escalated at the rate of 5.72% per annum over the tariff period for
determination of the levellised tariff:
Region Project Size O&M expenses

(Rs in lakh/MW)
Himachal Pra desh, Uttarakhand Below 5 MW 21
and North Eastern States 5 MW to 25 MW 15
Other States Below 5 MW 17

5 MW to 25 MW 12
(c) Biomass: Regulation 39 of RE Regulations provides that the normative O& M
expenses for biomass based projects for the year 2009-10 shall be Rs 20.25 lakh/MW
and shall be escalated at the rate of 5.72% per annum over the tariff period for
determination of the levellised tariff.
(d) Non-fossil fuel co-generation: As per Regulation 55 of RE Regulations, the
normative O&M Expenses for non-fossil fuel co-generation projects for the year 2009-10
is Rs 13.35 lakh per MW which shall be escalated at the rate of 5.72% per annum over
the tariff period for determination of the levellised tariff.
(e) Solar PV: In terms of Regulation 59 of RE Regulations, the normative O&M expenses for
solar PV projects for the year 2009-10 is Rs 9.00 lakh/MW which shall be escalated at the
rate of 5.72% per annum over the tariff period for determination of the levellised tariff.
(f) Solar Thermal: Regulation 63 specifies the normative O&M expenses for solar
thermal power projects during the first year of operation as Rs 13.0 lakh/MW which shall
be escalated at the rate of 5.72% per annum over the tariff period for determination of the
levellised tariff.
32. The normative O&M expenses have been worked out as specified above for
determination of tariff for the renewable energy generating stations.
CAPACITY UTILISATION FACTOR
33. Regulations 26, 30, 58 and 62 of the RE Regulations specify the norms for
Capacity Utilization Factor (CUF) in respect of the renewable energy generating stations
except biomass and non- fossil fuel based cogeneration as per the details given in the
table below which has been considered for determination of tariff.
Renewable Energy Projects CUF

(A) Wind Energy
Annual Mean Wind Power Density (W/m2) Wind
zone-1 (200-250) Wind 20%
zone-2 (250-300) Wind 23%
zone-3 (300-400) Wind 27%
zone-4 (above 400) 30%
(B) Small Hydro

(i) Himachal Pradesh, Uttarakhand and North Eastern 45%
States 30%
(ii) Other States
(C) Solar PV 19%
(D) Solar Thermal 23%
34. In terms of clause (2) of Regulation 26 of the RE Regulations, the annual mean
wind power density specified above is to be measured at 50 meter hub-height and as per
clause (3), for the purpose of classification of wind energy project into particular wind
zone class, the State-wise wind power density map prepared by Centre for Wind Energy
Technology (C-WET) annexed as schedule to the said regulations, is to be considered.
PLANT LOAD FACTOR (PLF)
35. Regulation 36 of the RE Regulations specifies the plant load factor for biomass
based renewable energy generating stations as given in the table below which has been
considered for determination of fixed charges component of tariff.
Renewable Energy Projects PLF (%)

Biomass
(a) During stabilization (6 months) 60%
(b) During first year after stabilization 70%
(c) Second year onwards 80%
36. Regulation 49 of the RE Regulations stipulates the plant load factor for non-fossil
fuel based co-generation projects as under, computed on the basis of plant availability for
number of operating days considering the operations during crushing season and off-
season and load factor of 92%. The number of operating days for different States as
specified in the regulations is as under:
States Operating days PLF (%)
Uttar Pradesh
120 days (crushing)+ 60 days (off-season) = 180 days 45%
and Andhra Pradesh
Tamil Na du and
Maharashtra 180 days (crushing)+ 60 days (off-season) = 240 days 60%
Other States 150 days (crushing) + 60 days (off-season) = 210 days 53%
AUXILIARY POWER CONSUMPTION
37. Regulations 31, 37, 50 and 64 of the RE Regulations stipulate the auxiliary power
consumption factor as under which has been considered for determination of tariff of the
RE projects :
Renew able Energy Projects Auxiliary Consumption factor
Small Hydro 1.0%
Biomass 10.0%
Non-fossil fuel co-generation 8.5%
Solar Thermal 10.0%
STATION HEAT RATE
38. The Station Heat Rates (SHR) specified under Regulations 38 and 51 of the RE
Regulations for biomass and non-fossil fuel based co-generation projects are as under:
SHR
Renew able Energy Projects (kCal / kWh)
Biomass 3800
Non-fossil fuel co-generation (for power component) 3600
FUEL
(a) Fuel Mix
39. Clause (1) of Regulation 40 of the RE Regulations stipulates that the biomass
based power generating stations are to be designed in a way that it uses different types
of non-fossil fuels available within the vicinity of biomass power project such as crop
residues, agro-industrial residues, forest residues etc. and other biomass fuels as may be
approved by the Ministry of Non-Renewable Energy (MNRE). Clause (2) of the said
regulations stipulates that the biomass power generating companies are to ensure fuel
management plan to ensure adequate availability of fuel to meet the respective project
requirements.
(b) Use of fossil fuel

40. In terms of Regulation 41 of the RE Regulations, the use of fossil fuel is to be
limited to the extent of 15% of total fuel consumption on annual basis and in terms of
Regulation 42 of the said regulations the mechanism for monitoring the use of fossil fuel
is as under:
“(1) The Project developer shall furnish a monthly fuel usage statement and
monthly fuel procurement statement duly certified by Chartered Accountant to
the beneficiary (with a copy to appropriate agency appointed by the Commission
for the purpose of monitoring the fossil and non-fossil fuel consumption) for each
month, along with the monthly energy bill. The statement shall cover details such
as;
(a) Quantity of fuel (in tonnes) for each fuel type (biomass fuels and fossil fuels)
consumed and procured during the month for power generation purposes;
(b) Cumulative quantity (in tonnes) of each fuel type consumed and procured till
the end of that month during the year;
(c) Actual (gross and net) energy generation (denominated in units) during the
month;
(d) Cumulative actual (gross and net) energy generation (denominated in units)
until the end of that month during the year;
(e) Opening fuel stock quantity (in tonnes);
(f) Receipt of fuel quantity (in tonnes) at the power plant site; and
(g) Closing fuel stock quantity (in tonnes) for each fuel type (biomass fuels and
fossil fuels) available at the power plant site.
(2) Non-compliance with the condition of fossil fuel usage by the project developer,
during any financial year, shall result in withdrawal of applicability of tariff as per
these Regulations for such biomass based power project.”
(c) Calorific value
41. In terms of Regulation 43 of the RE Regulations the calorific value of biomass fuel
for determination of tariff is as under:
State Calorific value(kCal/kg)

Andhra Pradesh 3275
Haryana 3458
Maharashtra 3611
Madhya Pradesh 3612
Punjab 3368
Rajasthan 3689
Tamilnadu 3300
Uttar Pradesh 3371
Other States 3467
42. In terms of Regulation 52 of the said regulations, the gross calorific value for
bagasse to be considered in case of non-fossil fuel co-generation projects is 2250

kCal/kg and for the use of biomass fuels other than bagasse, the calorific value as
specified above shall be applicable.
(d) Fuel cost
43. In terms of Regulation 44 of the RE Regulations, the biomass fuel price during the
period 2009-10 shall be as indicated in the table below:
Biomass pr ice
State
(Rs/MT)
Andhra Pradesh 1301
Haryana 2168
Maharashtra 1801
Madhya Pradesh 1299
Punjab 2092
Rajasthan 1822
Tamilnadu 1823
Uttar Pradesh 1518
Other States 1797
44. In terms of Regulation 53 of the RE Regulations, the price of bagasse (for non-
fossil fuel based co-generation projects) during the period 2009-10 shall be as indicated
in the table below:
Bagasse price
State
(Rs/MT)
Andhra Pradesh 899
Haryana 1411
Maharashtra 1123
Madhya Pradesh 809
Punjab 1398
Tamilnadu 1243
Uttar Pradesh 1013
Other States 1163

Subsidy or incentive by the Central / State Government
45. Regulation 22 of the RE Regulations provides as under:
“The Commission shall take into consideration any incentive or subsidy offered by
the Central or State Government, including accelerated depreciation benefit if
availed by the generating company, for the renewable energy power plants while
determining the tariff under these Regulations.
Provided that the following principles shall be considered for ascertaining income
tax benefit on account of accelerated depreciation, if availed, for the purpose of
tariff determination:
i. Assessment of benefit shall be based on normative capital cost,

accelerated depreciation rate as per relevant provisions under Income Tax
Act and corporate income tax rate.
ii. Capitalisation of RE projects during second half of the fiscal year. Per unit
benefit shall be derived on levellised basis at discount factor equivalent to
weighted average cost of capital.”
46. In terms of the above regulation, for the projects availing the benefit of Section 80
IA of the Income Tax Act, 1961, the Minimum Alternate Tax (MAT) @ 16.995% (15%
MAT+10% surcharge+3% education cess) for the first ten years and thereafter the
normal tax rate @ 33.99% (30% IT rate+ 10% surcharge +3% Education cess) has been
considered. For the purpose of determining net depreciation benefits, depreciation @
5.28% as per straight line method (Book depreciation as per Companies Act, 1956) has
been compared with depreciation as per Income Tax rate i.e. 80% of the written down
value method and depreciation for the first year has been calculated at the rate of 50% of
80% i.e 40%, as project is capitalized during the second half of the financial year as per
proviso (ii) to Regulation 22. Tax benefit has been worked out as per MAT/normal tax
rate on the net depreciation benefit. Per unit levellised accelerated depreciation benefit
has been computed considering the weighted average cost of capital as discount factor.
47. In the light of the discussion made in the preceding paragraphs, the generic tariffs
of the following RE projects for the financial year 2009-10 have been determined as
under:
RE technologies as per CERC RE Tariff Regulations Norms for FY 2009-10
Levellised Levellised Levellised Benefit of Net Levellised

Fixed Variable total tariff Accelerated Tariff upon
Depreciation, if adjusting for
availed accelerated
Depreciation
benefit, (if
availed)
(Rs / kWh) (Rs / kWh) (Rs / kWh) (Rs/kWh) (Rs/kWh)
Wind Energy
Wind Zone -1 5.63 (0.37) 5.26

(CUF 20%)
Wind Zone -2 4.90 (0.32) 4.58
(CUF 23%)
Wind Zone -3 4.17 (0.28) 3.89
(CUF 27%)
Wind Zone -4 3.75 (0.25) 3.5
(CUF 30%)
Small Hydro Pow er Project
HP,
Uttarakhand
3.90 (0.23) 3.67
and NE States
(Below 5MW)
HP,
Uttarakhand
and NE States 3.35 (0.21) 3.14
(5MW to 25
MW)
Other States 4.62 (0.27) 4.35

(Below 5 MW)
Other States
(5 MW to 25 4.00 (0.25) 3.75
MW)
Solar Power Projects
Solar PV 18.44 (1.30) 17.14
Solar Thermal 13.45 (0.91) 12.54

Biomass Power Project
Andhra 1.94 2.21 4.15 (0.10) 4.05
Pradesh
Haryana 2.03 3.49 5.52 (0.10) 5.42

Madhya 1.93 2 3.93 (0.10) 3.83
Pradesh
Maharashtra 1.98 2.78 4.76 (0.10) 4.66
Punjab 2.03 3.46 5.49 (0.10) 5.39
Rajasthan 1.98 2.75 4.73 (0.10) 4.63
Tamil Nadu 2.01 3.07 5.08 (0.10) 4.98
Uttar Pradesh 1.96 2.51 4.47 (0.10) 4.37
Others 2.00 2.88 4.88 (0.10) 4.78
Non-fossil fuel based cogeneration

Andhra 2.86 2.07 4.93 (0.15) 4.78
Pradesh
Haryana 2.53 3.25 5.78 (0.13) 5.65
Maharashtra 2.21 2.59 4.80 (0.12) 4.68
Madhya 2.43 1.86 4.29 (0.13) 4.16
Pradesh
Punjab 2.53 3.22 5.75 (0.13) 5.62
Tamil Nadu 2.24 2.86 5.10 (0.12) 4.98
Uttar Pradesh 2.88 2.33 5.21 (0.15) 5.06
Others 2.49 2.68 5.17 (0.13) 5.04
48. The detailed calculations of the generic tariff are annexed to this order as per the
details given hereunder:
(a) Wind power projects:
(i) Wind Zone-I Annexure 1A

(ii) Wind Zone-II Annexure 1B
(iii) Wind Zone-III Annexure 1C
(iv) Wind Zone-IV Annexure 1D
(b) Small hydro projects:
(I) Projects Less than 5 MW for HP, Utarakhand and Annexure 2A

NE States
(II) Projects between 5 MW and 25 MW for HP, Utarakhand Annexure 2B
And NE States
(III) Projects less than 5 MW for other States Annexure 2C
(IV) Projects between 5 MW and 25 MW for other Annexure 2D
States
(c) Bio-mass power project:
(I) Andhra Pradesh Annexure 3A

(II) Haryana Annexure 3B
(III) Maharashtra Annexure 3C
(IV) Punjab Annexure 3D
(V) Madhya Pradesh Annexure 3E
(VI) Rajasthan Annexure 3F
(VII) Uttar Pradesh Annexure 3G
(VIII) TamilNadu Annexure 3H
(IX) Other States Annexure 3I
(d) Co-generation projects:
(I) Andhra Pradesh Annexure 4A

(II) Haryana Annexure 4B
(III) Maharashtra Annexure 4C
(IV) Madhya Pradesh Annexure 4D
(V) Punjab Annexure 4E
(VI) Uttar Pradesh Annexure 4F
(VII) TamilNadu Annexure 4G
(VIII) Other States Annexure 4H
(e) Solar projects:
(I) Solar PV projects Annexure 5A

(II) Solar thermal projects Annexure 5B
49. The above generic tariff is for the RE power projects commissioned during the FY
2009-10 and fulfilling the conditions of the RE regulations.
-sd/- -sd/- -sd/- -sd/-

[V.S.VERMA] [S. JAYARAMAN] [R. KRISHNAMOORTHY] [Dr. PRAMOD DEO]
MEMBER MEMBER MEMBER CHAIRPERSON
New Delhi dated the 3rd December, 2009

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CORPORATE KNOWLEDGE PARTNERS

DETAILED PROJECT REPORT

CORPORATE KNOWLEDGE PARTNERS PVT.LTD.

Chapter No. Particulars Page No.

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Chapter No. Particulars Page No.

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Annexure No. Particulars

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CdTe Cadmium Telluride

MkWh Million Kilo Watt hour

O&M Operation & Maintenance

RPS Renewable Purchase Specification

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2. Climate and Site Conditions

Elevation above MSL : 242 Meter Delhi

o Minimum Ambient : 2ºC

Area available : 30 Acres

4. SPV Power Plant

Output : 5.00 MWp

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5. Technical details of a SPV Module

PV Module type : Mono Crystalline

Mounting : Fixed Type

7. Inverter/ Power Conditioning Unit (PCU)

8. Grid Connection Details

Electrical parameters for interconnection

9. Annual Energy Generation

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10. CDM Benifits

Estimated CER’s per annum : 7689 CER per Annum

Estimated Cost (Rs. Crore) : 84.5

12. Power Purchase Agreement

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1.1 GLOBAL ENERGY SCENARIO

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1.1.1 Sustainable Development

Promoting Improving Sustaining Promoting Meeting

1.1.2 Oil Depletion

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Figure 2: All Hydrocarbons Base Case Scenario 2002

1.1.3 Role of Renewable Energy

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SELECTED INDICATORS 2007 © 2008 © 2009

TOP FIVE COUNTRIES #1 #2 #3 #4 #5

Annual amounts for 200 9

New capacity investment Germany China United States Italy Spain

Exi sting capaci ty as of end -2009

Renewables power capacity China United States Germany Spain India

(including only small hydro)

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Figure 3: Renewable Energy Share of Global Final Energy Consumption 2008

1.2 INDIAN ENERGY SCENARIO

Figure 4 : All India Generating Installed Capacity ( Mw )

Source: Central Electricity Authority

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1.3 RENEWABLE ENERGY IN INDIA

Indeed, it is the only country in the world w i t h an exclusive Ministry for

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SL. REGION THERMAL Nuclear HYD RO R.E.S.@ TOTAL

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1.4 JAWAHARLAL NEHRU NATIONAL SOLAR MISSION