Prices of solar PV module Table 1 describes prices of solar PV modules as on June Table 1 Overviews recent prices of various PV modules[1]

Transcription

1 Solar Photovoltaic Prices of solar PV module Table 1 describes prices of solar PV modules as on June Table 1 Overviews recent prices of various PV modules[1] Sr. No. SPV module Price (US $/Wp) 1 Monocrystalline Poly- /Multi- crystalline Thin film 3.00 Application of solar PV Solar PV generates DC electricity, which is supplied to the battery bank and can be further converted to AC electricity. Following efficiencies are involved in determining the system efficiency, apart from module efficiency. Inverter efficiency (>90%), battery efficiency (>70%), dust efficiency, miscellaneous efficiency (>90%) are the efficiencies which are primarily considered while calculating Overall system efficiency. Surface area required for installing SPV depends upon SPV module efficiency and solar intensity in that particular region. Solar PV is widely used for following applications, 1. Building integrated solar PV 2. Solar lanterns 3. Solar PV based water pumping 4. Electrical fencing 5. Signalling 6. Street lighting 1. Building integrated solar PV Recent technological advances have made SPV suitable for direct integration into building construction. SPV is used in commercial as well as household buildings to serve electrical needs fully or partially. It is integrated as a part of building popularly, in façade or roof top.

2 2 Title of the report Figure 1, 2 Building integrated PV systems 2. Solar lanterns A solar lantern is PV based application. It is most useful for emergency power supplies and decentralized electricity requirements. Usually, small shopkeepers, vegetable sellers etc. use solar lantern for commercial purposes. 3. Solar PV based water pumping Figure 3 Solar lantern Solar PV is widely used for water pumping in the remote regions where grid electricity is not available. Picture 2 and 3 shows SPV components and SPV installed system. The pump used in SPV water pumping accessories is submersible pump. 4. Electrical fencing Figure 4 Solar water Pumps PV array is connected to a battery, which operates the fence charger. The fence charger steps up few volts to several

3 3 Format for TERI project reports at a glance thousand volts DC that is supplied through the fence to protect infrastructure/ agriculture boundaries. Various SPV fencing models are commercially available in the market. Figure 5 Solar Electric fencing 5. Signalling Solar photovoltaic is used for providing electricity to signal transmission devices particularly for marine applications, in telecommunication industry and in oil and Gas industry, where it is not possible to supply electricity through the grids. 6. Street lighting SPV is popularly used for street lighting. In India, usually PV street lighting is found in public places like Parks, inside lanes etc. Figure 6 Solar PV Street lighting Case studies 1) Hybrid minigrid- based on solar PV [2] Country: India Province: West Bengal Area: Sunderbans Implementation Level: Local level Duration: Sponsors: Central subsidy, state subsidy, local area development funds, and community contribution Actors Involved: Private Sector Background Sunderbans is part of the vast delta of the river Ganga, an area characterised by mangrove swamps and islands interwoven by a

4 4 Title of the report network of small rivers, waterways, creeks and tracts. The tidal swamp forests of the delta and their unique ecosystems are the habitat of the endangered Royal Bengal Tiger. The majority of the population in the Sunderbans is dependent upon agriculture and fishing, and on the mangrove for forest related resources such as firewood, honey, timber, tannin, charcoal, fruit and fodder. Prawn cultivation for export is another business opportunity for this region. To protect the natural habitat, environment and the bio-diversity of the region, the Sunderbans Biosphere Reserve was established in The reserve covers 8,630 sq. km, including about 5,366 sq. km of human habitat. The remote villages and hamlets of the delta suffer from a chronic shortage of energy due to the unavailability of grid power. It is extremely difficult, if not impossible, to extend high-tension transmission lines to these areas as most of the places are separated from the mainland and from each other by wide rivers and creeks. In the absence of grid power, the alternate fuel sources are kerosene for lighting and diesel generators for electricity. Since it is highly costprohibitive to draw transmission lines across very wide rivers and creeks, renewable energy is considered to be the right choice for providing clean energy to these remote settlements. Village-level minigrids based on biomass gasifier, solar photovoltaics, wind-diesel hybrid and tidal power technologies are used for supplying electricity for domestic and commercial applications. In addition, solar home lighting systems and portable lanterns are also used in many households. Objectives Results/impacts Although solar home lighting systems are the most widely accepted solar based electrification option in developing countries, they have limited scope for productive uses and overall community development, such as the provision of safe drinking water and vaccine refrigeration. Mini-grids are a better option, as they are able to generate three-phase AC electricity and distribute it through low-tension localised networks for many diverse applications. However, financing SPV mini-grids is a challenge as the cost of electricity is high compared to most other options. The objective of the mini-grid model is to implement a financing scheme that is based on a judicious mix of well-targeted central subsidy to take care of the initial cost of the generating unit; state and local area development funds to lay the distribution networks; and revenue collection from the sale of electricity to provide for the life-time costs of the operation and maintenance (O&M) of the facility. Nine SPV mini-grids with a cumulative installed capacity of kwp have been installed by WBREDA in Sunderbans. Together they serve about 1,750 consumers (a consumer is

5 5 Format for TERI project reports at a glance defined as a single household or shop/ commercial unit). The largest and most recent mini-grid has 110 kwp-installed capacities and serves more than 750 consumers. The total investments in setting up these mini-grids are U.S.$ million. Each of the 1,750 consumers, who typically would have used kerosene for lighting and diesel-based battery charging for TV viewing, has the potential of saving kg CO2 emissions annually, as per a study conducted in the year At the national level, setting-up mini-grids has avoided the use of diesel based mini-grids (the only baseline option, as grid extension is not technically feasible). Considering the emission rate of 1.3 kg CO2 per kwh for diesel -generated electricity, each 100 kwp mini-grid has the potential of saving about 180 tonnes of CO2 emissions annually. Another survey in this region has reported upon the tangible benefits of SPV mini-grids. These benefits include the ability to do agricultural work at night, longer periods of work for small trades and businesses, and an ensuing increase in income due to these extended hours of operation. In addition, social benefits such as longer periods for studying, saving in time for cooking, entertainment, and facilitation in night movement and physical comforts are also realized. Keys for success The Sunderbans mini-grid model is a combination of economic instruments in the form of a judicious mix of central, state and local level developmental funding, community financing, public-private-local-community partnerships and it maintains a unique design, planning and management approach. Critical instruments Design, planning and management Robust design based on the use of local material and expertise, good planning and effective management by involving the local community: The success of any village level scheme in providing basic services that are based on new technologies depends on how well it has been designed and implemented. First, the design should be such that it can be implemented in remote, geographically -challenged locations. For example, the transportation of any material in this area is by boat. The design should therefore not incorporate the transportation of heavy equipment from large distances. Transportation of PV modules, battery, inverters etc. has not posed any problem in this area. Second, the design has the ability for expansion if demands increase in the future. The planning and management of the village scheme through the involvement of local enterprise and the community has also been very effective.

6 6 Title of the report Subsidies Fee-for-service model that matches the paying capacity of the user to the level of the services provided and an effective use of various developmental funding for setting up the utility: In areas where grid extension is not feasible, communities often depend on fuels such as kerosene and diesel for meeting their electricity service requirements. Solar PV based options, though viable and user friendly, are beyond the means of the rural consumer if the delivery system follows an ownership model. While there are innovations through rural credit mechanisms that have improved the affordability of solar systems, mini-grids are found to be a better option for serving a large community with diverse needs. However, the challenge is how to maximize the benefits of subsidy agencies while ensuring that the consumer is happy with paying for the services. Though the MNES provides a subsidy of up to 50 percent of the capital cost, consumer financing of the remaining 50 percent in the case of expensive PV technology is found to be quite difficult. Innovations in accessing local developmental funds and state funds for setting up the village level utility, and ensuring its O&M from the sale of electricity, have brought clean electricity services within affordable limits to the rural consumer. Partnerships Unique case of public-private-local-community partnership with well defined roles and responsibilities: Though the role of various types of partnerships is well accepted in all aspects of sustainable development, one can actually see them work effectively in Sunderbans. To start with, there is intragovernmental partnerships where the centre, state and local government institutions have pooled-in resources to set up the utility. In addition, there are public-private partnerships in which WBREDA has worked effectively with the private sector PV supplier to set up and maintain the utility. The most effective partnerships have been forged between the state and the community. In these relationships, the village committees have been successful in managing the entire scheme under the technical supervision of the state. Lesson learnt The Sunderbans model has provided the following lessons: 1. That the community is willing to co-finance rural electrification projects to the extent that they are expected to pay a fee for the service. In other words, a combination of public funds for setting up the mini-grid, and contributions from the community in the form of revenue from the sale of electricity, which can be used towards the O&M of the facility, is a viable financial model for rural electrification projects.

7 7 Format for TERI project reports at a glance 2. That the consumer finds it easy to accept the rural electrification scheme based on alternate technologies if the total investment by them including the application fees for the electricity connection, costs of internal wiring and fixtures, monthly bill etc. are of the same order as that of the grid based electrification. 3. With the provision of electricity and after having felt its benefit, demands for more connections, more connected load per household and more hours of availability have increased. Realistic demand assessment is thus a critical parameter for the success of such projects. 4. Considering the fact that renewable energy technology is a relatively new option for the community, procedures such as after sales service, revenue collection, etc., have been relatively easy because of the involvement of trustworthy government institutions and community representatives. Entrepreneurs in similar cases would be more successful if they already had a presence and acceptance in the community. 5. In planning a village level initiative such as the mini-grid, the project planning focuses more on the technical design and O&M aspects. Management aspects are often overlooked. Once the plant is commissioned, then management related problems may start surfacing and may require considerable effort to sort out. Applicability As compared to solar-home-systems based rural electrification where the onus of the battery replacement is on the user, the mini-grid model, or the fee-for-service model, takes care of the entire O&M requirements through monthly revenue collection. In addition, this model also facilitates development of local enterprise both on the supply side (sales and services of the energy efficient devices) and on the demand side (small shops, entertainment centres) thereby fostering the economic development of the region. This delivery model has the potential for replication in many remote inaccessible areas of developing countries. In many areas, it can serve the purpose of pre-electrification. The distribution network and institutional arrangements can easily be used for grid-electrification if and when it comes. This model also provides scope for market driven business approaches and other innovations, such as government support to rural ESCOs for initial capital investment, concessions through competitive bidding, and financial incentives to ESCO, etc. 2) Solar lanterns[2] Country: India Location: State of Andhra Pradesh Participants: Management and employees of Andhra Pradesh State Road Transport Corporation (APSRTC), PV industry

8 8 Title of the report Duration: 2003 onwards Funding: Employee salary scheme, user contribution, soft loan Background Objectives Solar Lanterns were first developed in India almost a decade ago to provide cost effective and affordable solutions for providing adequate lighting to the rural populations of India. According to the Ministry of Power, Government of India, there are 161,982,648 un- electrified households in India. Providing gird-connected electricity to these remote and thinly populated communities all across the country is a mammoth task. The solar lantern was initially developed as a replacement for candles, kerosene lights and hurricane lanterns, which are commonly used by villagers. In addition to this, portable lighting is also required in agricultural fields during irrigation, harvesting, fishing at night, and many other activities. The solar portable lantern is an ideal supplement for all these applications. The Ministry of Non Conventional Energy Sources, Government of India, initially developed the specifications for a lantern that would give adequate illumination for 4 hours per day. When first developed, the lantern cost approximately Rs with a subsidy of Rs available from the Central Government. Some states provided additional subsidies during the initial phase. The lantern programme became quite successful and 441,481 lanterns were distributed by 31 March The main impediment identified was limited funds available for the subsidy. Market feed-back from users of the solar lanterns provided new ideas for product development and marketing to the manufacturers, but MNES had only one approved design of lanterns which qualified for their subsidy scheme. The problem of limited funds for subsidies and the high price of nonsubsidized lanterns was identified as a barrier for large-scale penetration of lanterns in the Indian market. Various manufacturers were aware of the market potential, so they developed various new designs. The cost of these smaller models was reduced to Rs. 1500, but they still did not qualify for subsidy. In order to reduce the down payment for consumers, the manufacturers then developed various innovative schemes that are discussed in this case study. In the year 2003, the subsidy for solar lanterns was completely removed, with an understanding that the product had now matured and was capable of being sold on the open market on its own merit. To develop a market for solar lanterns after the subsidies have been removed. The product is being promoted as a viable alternative to kerosene lanterns and lights in rural

9 9 Format for TERI project reports at a glance environments and as emergency lights in urban environments during power outages. Description of the activity Several manufacturers devised the following innovative schemes for promoting the sale of solar lanterns without the aid of a subsidy 1. Price included as a salary deduction at source. This scheme is being implemented in the state of Andhra Pradesh of India, through its state owned road transportation company (A P State Road Transport Corporation.). The corporation has more than 1.28 million employees. Most of them are from rural parts of the state and have ancestral houses or joint families in villages. The solar lanterns are provided to them through a salary deduction scheme. The lanterns typically cost from Rs to 3500 but are made available on equal monthly payments over one or two years. Employees of APSRTC can thus buy lanterns for their family, relatives or even as a gift for friends. The employer ensures repayment of the cost to the manufacturer, by way of a memorandum of understanding. The manufacturer is also committed to providing proper servicing during and after the loan period as a part of the contract. 2. A second scheme offered other gifts along with the lanterns. Utility items such as cameras and watches were offered as supplementary gifts. Usually, these gift items are available to the manufacturer at a relatively low price, after deducting taxes and dealer margins, etc. For the consumer, however, the cost of these items is usually high, thereby giving him the feeling of having received good value for his money along with an additional benefit. Critical instruments Overview Institutional arrangements for direct marketing and technological innovations in design helped in opening up a viable market for solar lanterns. Organisational arrangements The salary deduction scheme of the APSRTC is an innovative institutional arrangement where the employer provides a onesale, credit and after sales stop service to its employees for services. It is a win-win situation for all because the supplier of the products deals with one corporate consumer instead of many small consumers, thereby reducing his transaction costs. The consumer on the other hand reduces his perception of the risk involved when investing in a relatively new product by being one among many buyers. Similarly, the gift scheme also stimulated the purchase of lanterns

10 10 Title of the report Technologies While the lantern was being sold under the subsidy scheme, there was only one government-approved design available for purchase. Technological innovations, not only in product design but also in performance, have now been introduced that help in stimulating a non-subsidised market. Impacts Each solar lantern, designed to operate for 4 hours every day for 300 days in a year, is able to save 1,200 hours of a kerosene lamp. The most common kerosene lamp used in rural India had a specific consumption of litres per hour. Accordingly, each solar lantern will save 30 litres of kerosene in one year, thereby reducing 73.5 kilograms of CO2 annually (emission intensity of 2.45 kilograms CO2 per litre of kerosene). Rural populations using solar lanterns as their only source of improved lighting found its portability and better illumination very useful for both outdoor and indoor use when compared to kerosene lamps. Urban populations find it useful as an emergency light in the event of power outages Lesson learnt 1. Solar lanterns are one of the most useful appliances not only for rural but also for urban areas. 2. The monitoring of subsidies on such small and portable products is difficult. 3. As long as a subsidy was available, marketing of these devices was limited by the availability of funds. Their true potential was not realised. 4. Direct marketing and a variety of sizes and specifications helped in the large-scale marketing of these products. 5. Innovative financing schemes such as salary deductions at source were found to be effective. Potential and applications The novel arrangement of selling these products through salary deductions opens a large potential for application because it increases the affordability of the product and access to the credit by many potential consumers. Following the example of APSRTC, other organisations such as state owned collieries have also opted for the scheme. The scheme has been replicated by Singarouni Collieries. Various manufacturers now plan direct sales of the lanterns using similar financial instruments. One major manufacturer of lead acid batteries in India has already started marketing solar lanterns on a large scale (projected sales of 35,000 lanterns in the first year). The scheme should be effective in other developing countries.

11 11 Format for TERI project reports at a glance 3) Promotion of solar PV pumping systems[2] Country: India Location: State of Punjab, India Participants: Punjab Energy Development Agency, PV industry, Individual farmers (Village community), local enterprise, Indian Renewable Energy Development Agency (IREDA), Ministry of Non-Conventional Energy Sources (MNES) Duration: 1999 onwards Funding: Central subsidy, sate subsidy, community, IREDA, private financial institutions Background Objectives The state of Punjab in India is the largest producer of food grains in the country. With an annual surplus beyond its own needs, it is often called the food bowl of India. Located in the northwest part of the country, Punjab has an area of 50,362 square kilometres comprising plains and fertile land. At present, over 84 percent of the total geographical area of the state is under cultivation. It has four major rivers and a vast network of canals and tube wells for irrigation purposes. Government statistics in show that the state had a total of 975,000 tube wells out of which 750,000 had electric pumps and 125,000 were powered by diesel generators. Because of a shortage of electricity, many tube wells powered by electricity also had alternative diesel powered pumps along with it. The water table available in most parts of the state is 5 metres below the surface. Solar photovoltaic water pumping systems, though found to be adequate, were beyond the reach of most farmers. A solar PV pumping project sponsored by MNES/IREDA in the state of Punjab introduced innovations in the original scheme so as not only to match the technology to the needs of the farmers, but also to make this service affordable for them. The scheme was designed to promote the use of solar photovoltaic pumping systems as an alternative to diesel powered systems in order to reduce diesel consumption, which in turn will reduce environmental pollution and the difficulty for farmers who must travel long distances to purchase the required diesel fuel. Description of the activity Under the Solar Photovoltaic Water Pumping Programme of the MNES, the Punjab Energy Development Agency (PEDA) installed 500 solar pumps in Punjab for agricultural purposes. When the subsidy scheme for solar photovoltaic pumping was first introduced in India, only 900 Watts (1 horsepower) systems at roughly Rs. 200,000 were approved with a 50 percent subsidy towards the cost of a complete system. There were few takers of this scheme in Punjab because the 1 horsepower system was not sufficient to meet the irrigation

12 12 Title of the report requirements of the farmers and the expected contribution from the farmer (Rs. 100,000) was also very high. Realising that farmers needed a minimum 2 horsepower (1800 Watts) capacity pump which would cost them Rs. 350,000 through the Punjab Energy Development Agency (PEDA), along with a better financing scheme, the Punjab State Government took the following initiatives: 1. Approved the 1800 Watt (2 horsepower) capacity solar photovoltaic pumping system through the MNES for distribution under the scheme 2. Helped manufacturers enter into agreements with financial institutions to obtain soft loans from IREDA and offer pumps to the farmers under a lease-financing scheme. (In this scheme, the financial institution takes advantage of 100 percent accelerated depreciation incentives for the first year available under existing Income tax rules and passes on this incentive to the user by offering him a one-time lump-sum payment instead of the regular rental.) 3. Offered to pay half of the one-time lump-sum charges to the financial institution on behalf of the farmer, thereby reducing his payment even further. The above steps brought the farmer s share down from Rs. 175,000 to Rs. 35,000. The 1800-Watt system is capable of delivering about 140,000 litres of water per day from a depth of about 6 to 7 metres. This quantity of water is considered adequate for irrigating about 5 to 8 acres of the land needed for most the crops. PEDA initially identified the villages suitable for installation of the solar pumps. In order to identify the beneficiaries, newspaper advertisements were published. Interested participants were asked to apply, supplying proof of ownership for at least five acres of land in their name, information about the water table as well as a deposit of Rs. 10,000 with PEDA. After screening the applications, the IREDA selected five recognized suppliers who were asked to visit the applicants for a detailed survey of the sites before final approval. Each supplier was allocated several sites in clusters for installation of the pumps, and was then required to open at least one service centre in Punjab in order to provide the farmers with a five-yeamaintenance contract. The solar pumps were made available under a lease-finance arrangement, where the supplier secured a soft loan (at low interest rates and long repayment periods) from IREDA, then leased the system to the farmer. The company qualified for income tax benefits under the accelerated depreciation allowed by the Government of India on renewable energy systems. These benefits were then passed on to the farmer in the form of an option to pay reduced lease rentals as a one time upfront lump-sum amount. PEDA also provides a further subsidy on this lump-sum amount. As a result of this

13 13 Format for TERI project reports at a glance Critical instruments arrangement, the farmer pays only Rs. 35,000 towards the pumping system; the remaining amounts of lease charges are paid by PEDA. Field reports indicate that farmers are happy with the solar pumps. The successful implementation of this project in Punjab has encouraged other states like Haryana, Uttar Pradesh, Gujarat, Bihar, Andhra Pradesh etc. to propose implementation of similar projects in their own areas. This scheme was launched in the financial year of Overview The combination of various economic instruments along with pertinent publicity and awareness campaigns were the main factors that contributed to the success of this programme. Awareness capacity building A publicity and awareness campaign through electronic and print media along with exhibitions is a regular feature of the programme. Through radio programmes in Hindi and other regional languages, awareness was created about the SPV water pumping systems. In order to encourage manufacturers to develop their own publicity, the programme offered a 50 percent reimbursement on the cost of publicity for specific items, subject to a limit of Rs.100,000 per supplier. IREDA published brochures in Hindi, English and several regional languages about these SPV water pumping systems which were also displayed in exhibitions and farmer fairs. Training programmes on the operation, maintenance and water management aspects of PV water pumping systems are also ongoing for actual users, local technicians and mechanics, while State Nodal agencies are conducting training and awareness programmes for existing / prospective users of pumping systems. Economic instruments An innovative financing scheme is the critical tool for the success of this project. A combination of soft loans, user contributions and government assistance through capital subsidies enhanced by the depreciation of tax benefits are keys to the success of the scheme. A judicious mix of these financial instruments resulted in a net cost of Rs. 35,000 per installation, which is close to the investment required for a conventional diesel pump set. The main barrier of high capital investment was thus removed. Impacts The scheme has been one of the most successful in the renewable energy sector of the country and is in operation since

14 14 Title of the report However, instillations of pumps started in year Under this scheme, 1700 pumps have been installed in the state of Punjab between 2001 and Till 31st March 2003, the total number of SPV pumps installed in the whole country is 5,113. It is now estimated that each farmer with a PV system is able to save Rs. 40,000 to 60,000 in diesel expenses per year. Apart from this saving, employment has also been generated in the state because each manufacturer has had to develop service facilities at the district level as part of the arrangement. Lesson learnt Selection of products that respond to a need is an important factor in promoting Renewable Energy based schemes. The mere availability of a subsidy for the 900 Watt pump was not sufficient to develop a market because this size of pump was not able to meet the needs. A larger pump with a capacity of 1800 Watts was better suited for many applications and hence the project became viable Potential for application Similar schemes have now been approved for other states such as Haryana, Andhra Pradesh, Uttar Pradesh, Gujarat etc. Location-specific factors such as the availability of ground water are also essential elements for the successful implementation of these schemes elsewhere. References