SPV Power Technology in India

Satyendra Kumar
Lanco Solar, India
satyen.kumar@lancogroup.com

ASEAN-India
Workshop on Cooperation in New and
Renewable Energy
05-06 Nov., 2012
Vigyan Bhawan, New Delhi
LANCO Group, All Rights Reserved

Agenda
Power Sector in India Role Solar Can Play

Indias Current Solar PV Installation Base

SPV Technologies

Lessons Learned

Conclusions

India Electricity Opportunity

GW
1200
1084

1050

Pakistan 436
India

1000

Brazil

800
600

World Avg

2,875

Germany

200
0

233

194

138

125

119

104

102

2,232
2,631

Russia

280

778

China
S. Africa

400

India lacks significantly in Per Capita

Consumption

Nigeria 126

India ranks 5th in terms of

Installed Capacity

4,759

Source: World Bank, CEA

6,435
7,149

France

7,931

Japan

8,071

Australia
USA

11,217
13,654

UAE

16,891

Canada

17,061

Norway
Source: EIA, CEA

24,867
5,000 10,000 15,000 20,000 25,000 30,000
Kwh/annum
Source: D&B Industrial Research Service

India per capita Electricity Consumption is lagging well behind World Average and
this would catch up fast owing to rising levels of Disposable Income
An average of 16 GW of power generation capacity installations required each
year till 2020 to meet fast growing demand for electricity power

India has huge potential for solar power deployment

Solar Power Density in India

Source

*Potential
(MW)

Installed (MW)
as on Jan12

Wind Power

45,000

16,179

Biomass

16,000

1142

Small Hydro

15,000

3300

CogenerationBagasse

3,500

1952

Waste to Energy

2,700

74

Solar

Unlimited

481

Source: * MNRE - Development of Conceptual Framework for REC Mechanism

Solar installed capacity India

India receives on an average 4-7kWh/m2 of solar energy

daily with an average of 250-300 sunny days in a year

Cumulative grid connected Installed solar power capacity is

quite low in India

Rajasthan and Gujarat receive maximum radiation in

the range of 66.6 KWh per square meter

Accounting for a negligible proportion of Indias

power capacity

Capacity additions in Indian solar industry have been

miniscule as compared to the additions globally

India yet to optimally utilize its solar potential

Grid connected Solar Power

(Cumulative Capacity)

1,035 MW

Additions during last year

(FY12)

446 MW

Off-grid Solar PV plants

(Cumulative Capacity)
Solar Water Heating
Collector Area
(Cumulative Capacity)
Source: MNRE, Edelweiss Research

85 MW

5.63 Mn Sq. m

(As at June30, 2012

India Poised to be a Major Global Contributor

Global Solar Market Outlook
Installed
Solar Power Clean Energy
Rank Country
capacity
Target
Target
(GW) in 2011

Key incentives

India, USA rapidly advancing; EU

slow and steady
USA :

USA

4.6

2020 :~ 16
GW

India

0.5

2022 : 22
GW
2015 : 9 GW

China

Italy

Spain

3.0

2020 : 50
GW

17%
15.90%

FiTs, REC, Capital subsidy

15% of
primary
energy

Feed-in-Tariffs (FiTs), GBI for

rooftop an biding installed PV, Tax
incentive for PV

12.4

NA

17%

FiTs, REC, Tax incentive

5.3

2020 : 8-9
GW

20%

REC, Tax incentive

Australia

1.3

NA

20% of total
consumption

Japan

5.0

2020 : 28
GW

22%

Germany

Production / Investment tax credit

25.0

Generation Based Incentive (RBI),

Renewable Energy Certificate
(REC)
FiTs, REC, Tax incentive

35%
2020 : 50-70 (50% by 2030,
FiTs, REC, Tax incentive
GW
65% by 2040,
80% by 2050)

Continues to grow rapidly with a 300

MW in Arizona receiving approvals.
Expected to remain the largest solar
market in world in near future
India :
Rapid growth seen in high potential
solar states of Rajasthan and
Gujarat. Gujarat launches Asia's
largest solar park of 600 MW
China :
Many large-scale plants
commissioned. Hit by oversupply in
the international export market
Italy, Spain, Germany :
Affected by the sovereign debt crisis
and a weak future economic outlook
of the Euro

Source : Industry Research, Ernst & Young Report on Renewable Energy Country Attractiveness indices

E&Y Solar energy attractiveness Index : India ranked 2nd in the world only behind USA

Strong National Policy Initiatives at the Centre (JNNSM)

Jawaharlal Nehru National Solar Mission
Comprehensive framework
for development of solar power in India
(JNNSM)
Covers both solar power generation as well as manufacturing
Incorporates specific fiscal / monetary incentives

Objectives
Installed solar power generation capacity of 20 GW by 2020; 100 GW by 2030 and 200 GW by
2050
To achieve grid parity by 2020
To achieve parity with coal-based thermal power generation by 2030
4-5 GW of installed solar manufacturing capacity by 2017
20 mn solar lighting systems for rural areas by 2022
State
Government
(Land, Water,
Other Sanctions)

Institutional Arrangement to support bundling of Solar

Central
Power
Electricity
Authority
(Technical
Support)

Solar Power
Developer

National
Thermal Power
Corporation (NTPC)

CERC
Determines
Tariff

1 kWh Solar

4 kWh Thermal

NTPC Vidyut Vyapar

Nigam (NVVN)
Buys Bundles Sells

Bundled 5 kWh
at INR 4.17/kWh

State Electricity
Boards
(Buyers of bundled
power)

Note : Rates for SPV and ST based on average bidding tariff. The above rates expected to be achieved on commissioning of all power plants by May 2013

Among the states, Gujarat Leading the Way

Gujarat

First state to launch an independent solar policy in

2009.

Policy operative till 2014.

PPAs of 969 MW signed. The projects allocated through

the MOU route with pre-qualification criteria

Projects of 690 MW commissioned till 30th June,

2012.

Asias largest Solar Park The Charaanka Solar park in

Patan district of Gujarat inaugurated in April, 2012

An energy surplus state. Does not need to allocate more

projects to fulfill its RPO obligations

Gujarat Energy Development Authority (GEDA) provides

assistance in identification of suitable locations,
facilitation in arranging Right of Way & recommending
the project

High investor confidence

More than 1000MW of projects have preregistered for future allocations

Applications worth 1715 MW received for

allocation of 150MW

Banaskantha
Asias largest
solar park

Patan
Surendra Nagar

Tariffs

Projects commissioned
before 31.12.10

Projects commissioned
after 31.12.14

PV project
(Rs. /kWh)

Thermal projects
(Rs. /kWh)

15 (for first 12 years)

10 (for first 12 years)

5 (from 13th to 25th year)

3 (from 13th to 25th year)

12 (for first 12 years)

9 (for first 12 years)

3 (from 13th to 25th year)

3 (from 13th to 25th year)

And other states following suit

Particulars

Karnataka

Rajasthan

Madhya Pradesh

Tamilnadu

Policy instrument

Karnataka Solar Policy,

2011-16

Rajasthan Solar Energy

policy, 2011-2017

MP Solar Energy Policy

TN Solar Energy
Policy 2012

Target Capacity

200 MW - DISCOMS upto

2015-16 (40 MW p.a.)
50 MW - Thermal
100 MW - REC mechanism

50 MW SPV; 50 MW ST
200 MW SPV
DISCOMS
announced
Phase I (upto 2013) -200MW
Phase II (2013 - 17) - 400MW
10 MW : MNRE

50 MW SPV in
3000 MW by 2015,
including rooftop
2012-13
1500 MW utility scale
announced
by 205

Capacity Cap

SPV : Min 3 MW, Max 10

MW
ST : Min 5 MW

SPV : Min 5 MW, Max 10 MW SPV : Min 5 MW

ST : Min 5 MW, Max - 50
MW

NA

25 MW

Sale of Energy under

state policy

Reverse bidding
Ceiling tariff :
SPV : INR 14.50 / kWh
ST : INR 11.35 / kWh

Reverse bidding
Ceiling Tariff :
SPV : INR 10.12 / kWh

Reverse bidding
Ceiling Tariff :
SPV : INR 15.35 / kWh

Reverse bidding
Ceiling Tariff :
SPV : INR 15.35 /
kWh

Reverse bidding
Lowest bidder
offered entire 25
MW

14 MW
-

25 projects : 125 MW
8 projects : 37.5 MW
10 projects : 10 MW

1 project : 5 MW
7 projects : 7 MW

200 MW under State

Policy

Expected allocation of 25 MW
1000MW in 2013

Operational :
State Policy
JNNSM, Phase I
Batch I
Migration scheme
RPSSGP through
IREDA
Bids awarded under
state policy / other
schemes

80MW under State Policy Last date for submission of

30 MW - 30 months of
RfS for 200 MW postponed
PPA;
indefinitely
50 MW - 18 months of PPA
817 MW - REC mechanism
100 MW - NTPC Bundled

Source: MNRE, State Nodal Agencies, Research Reports

Orissa

Solar RPOs Pushing the Frontiers Further

The solar power purchase obligation for the States start with 0.25% in phase 1 (FY2011-2013) and go up to 3% by
FY 2022

Installed solar capacity by FY 2022 estimated at 38 GW

State

Electricity Consumption (Bn units)

FY13E

FY 22E

Andhra Pradesh

89.0

175.6

Chhattisgarh

21.8

45.1

Gujarat

85.4

156.8

Haryana

38.4

73.8

Jharkhand

23.4

51.7

Karnataka

53.5

107.5

Madhya Pradesh

49.3

99.0

125.7

219.9

Orissa

27.2

63.1

Punjab

60.5

104.3

Rajasthan

48.9

96.4

Tamil Nadu

87.2

182.8

Uttar Pradesh

79.3

150.2

West Bengal

41.0

84.5

Maharashtra

Equivalent Solar Installation capacity (MW) RPPO 3%

(FY 22E)

38,290 MW

Total Grid Connected Installed Capacity Map India

as on Oct 2012

*Source: MNRE and Bridge to India: Solar Compass: Oct 2012

r Knowledge base and Technology

Solar Resource Assessment (GHI, DNI) :
Satellite Based Estimates & Ground Measurements
Solar Photovoltaics (SPV)
Technology PV production whole value chain
Equipment PV production whole value chain
Grid Connected Solar Farms EPC, Inverters, Monitoring
Systems
Engineering

Risk Assessment and Insurance

Financing
Grid Extension, Availability and Stability

What are various SPV technologies ?

c-Si
Mono /
SingleCrystal

Multi /
Poly
Crystal

Thin Films
Amorphous Silicon

a-Si
(single
18-23%

15-17.5%

CdTe

CIGS

Organic

~11%

~12%

~5% ?

Tandem /

Junction)

Micromorph/
Double Jn/
Triple Jn

~6-8%

~9-10%

Global Production: Technology Mix

GOVT OF INDIA DOMESTIC SOLAR MFG ASPIRATIONS

Upstream
San
d

Polysilicon

Ingot/
Wafer

Mid Stream
Cells

Modules

Down Stream
System
Integration

Decentralise
d Application

Indian Solar Market demand is growing to be 1GW/yr by next year;

and is set to increase further thereafter, due to Grid Parity
achievement
To cater to the Indian market demand following manufacturing
Indian Solar PV
NSM Goal : 2 GW / yr Existing / Under Constr
Remarks
capacities
are
required:
Manufacturing
Domestic Mfg by 2020 Indian Capacities
Polysilicon

12,000 T/yr

1,800 T/yr (constr)

Lanco

Ingots & Wafers

2,300 MW/yr

300 MW/yr (constr)

Lanco, Birla Surya

Cells

2,200 MW/yr

1,010 MW/yr

Indosolar, Jupiter, BHEL,

Websol, Tata, Moserbaer,
EuroMultivision, BEL, CEL,
SolarSemi

Modules

2,000 MW/yr

1,900 MW/yr

More than 40 companies

LANCO Group, All Rights Reserved

PV Technology wise status (JNSM)

c-Si Module to be manufactured
domestically
JNSM Phase I (Batch-1): 150 MW
Module Te chnology Breakup - by % capacity

c-Si cells and Module to be

manufactured domestically
Phase I (Batch-2): 350 MW (Anticipated)

Module Technology Break-up by % capacity- Phase 2

Thin-film c-Si

38%
62%

Thin Films

45%

55%

c-si

Cheaper Financing Options decide the technology options Equipment

comes with funding

Technology share in Gujarat & leading financiers

Tandems; 20.0; 6%
CIS; 5.0; 1%
Am-Si; 80.8; 24%

Multi; 153.4; 46%

CdTe; 75.5; 23%

Technology share of PV projects in Gujarat totalling 935MW

Cheaper Financing Options decide the technology options Equipment

comes with funding
16

Technology Vision for the PV Future

What technology is needed
What is needed to develop that technology
What challenges it would involve to get commercialized

Who needs the PV technology

For what?
Where/When does one need it

Who needs Solar ?

Who needs Solar ? For What?

A Systems Approach
Top-down Approach Grid Centric
Bottoms-up Approach Off Grid, Needs
Solutions

Specific

Photovoltaic Systems
PV Panels: high efficiency at low cost !
Inverters: Long Life time ?, Higher efficiencies,
Tropicalized, more intelligent
Variability of Solar Resource
- Storage solutions: Batteries, Ultracapacitors,.

Power electronics Load Specific

Transport of power Availability and Stability of

Grid

Frugal Engineering Tata Nano

Lessons Learned : Lack of reliable radiation data

Challenges Faced currently

Move towards building Solar Radiation Atlas

Project developers have to rely on satellite

information from sources like NASA, NREL, etc

MNRE has initiated a major project on Solar

Radiation Resource Assessment (SRRA)

Uncertainty
surrounding
the
generation
potential at site. Different solar radiation
database yield varying estimates.

Centre for Wind Energy Technology (CWET)

has installed a network of 51 Automatic Solar
Radiation Monitoring Stations
in different
states

The returns of a solar project are highly

sensitive to radiation levels.

Solar Monitoring Stations

Lack of adequate ground-mounted monitoring

stations to validate satellite based estimates
Radiation variability could significantly affect
projected cash flows

22

Lessons Learned : Scale of Projects

Challenges faced due to size of Projects

Steps taken to address the issue

Solar projects are small compared to traditional

power plants

Government realising these challenges has

considerably increased the size of
solar PV
projects allotted in phase I batch II of JNNSM

Lenders
are
transactions

reluctant

to

finance

small
From Batch I to Batch II , max capacity allotted to
any developer has increased to 50 MW

In cases where finance is available, transaction

costs are higher

States following the cue, are also encouraging

large scale development which would further bring
in economies of scale.

Higher MW range of projects had to be promoted

for using better evacuation infrastructure

Maximum Cap allotted to a developer for Solar PV

Particulars

Max Cap
Max 5 MW

JNNSM Batch I Phase I

JNNSM Batch II Phase I

Max 50 MW for one developer; each project of max 20 MW

Karnataka
Rajasthan
MP
Gujarat

10 MW
10 MW
No upper Limit
25 MW

Orissa Phase I & II

25 MW
23

SPV Challenge:

The Grid Parity ?

Or
Grid Substitute / Support
Socket Parity

Road to Grid Parity is Blocked by the High Cost of Financing in

India

Source: World Bank

Mode of Solar Financing in India

Prohibitive cost of financing in India in terms of

prevailing interest rates

Long-tenure loans not available (15 years and

more) with Indian banks. Stretches cash-flows
during debt service period
* Includes Hedging Cost

NCDs = Non-convertible Debentures

ECAs= External Commercial Borrowings

ECA=Export credit agency

25

Roadmap to High Growth & Grid Parity

Interest Subsidy / VGF for Solar Farm; Rs 15
L/ year/MW (for 5-years)
Higher number of RECs for Older Plants
Capital Subsidy / Incentives for domestic PV
Mfg projects to offset interest & power
costs

Every MW of Solar Power Plant create

direct / indirect jobs:
Solar Mfg : 20
Solar Farm Project : 65
O&M : 15

World Class R&D Centre High efficiency Solar cells;

Reduction in BOS & Tracking
system costs

During 2012-17 : Potential 1,00,000 jobs

Grid Parity Reliable & affordable
power - Empowerment of rural
population

Domestic Content & ADD support for 2-3

years

5
Rs.

it
n
u
/

THANK YOU!