Gandhi Nagar 5 MW Solar Distributed/ Rooftop PPP Project

Transcription

1 Gandhi Nagar 5 MW Solar Distributed/ Rooftop PPP Project Sharing experience on doing an innovative Solar PPP Project Renewable Energy Workshop 1 st Feb

2 Agenda Overview of the Solar Programme in India Project :Background & Context Key features of the project Doing more of such replication Key lessons for more replication 2

3 Potential for Solar Power India receives solar energy equivalent to over 5,000 trillion kwh per year. There are about 300 clear sunny days in most parts of the country. Most parts of the country receive solar radiation sufficient enough to effectively utilize solar energy systems..solar power can be used to meet energy requirements for centralized as well as decentralized applications as solar systems can be built for capacities varying from Wp to MWp Source: Ministry of New and Renewable Energy, India 3

4 Key Initiatives 4

5 Jawaharlal Nehru National Solar Mission: Key Highlights Objective of the National Solar Mission To achieve volume production at a scale which leads to cost reduction and rapid diffusion and deployment of solar technologies across the country S. No Application Segment Total Targeted Achievement for Phase 1 ( ) Total Targeted Achievement for Phase 2 ( ) Total Targeted Achievement for Phase 3 ( ) 1 Solar Collectors 7 Million Sq meters 8 Million Sq meters 5 Million Sq meters 2 Off Grid Solar applications 200 MW 800 MW 1000 MW 3 Utility grid power, including roof top Rooftop Based Solar Generation 1100 MW 4000 MW MW JNNSM targeting 100 MW of rooftop solar PV connected by 2022 to replace conventional power/ diesel-based generators. Operators eligible to receive the feed-in tariff fixed by the SERC Generation Based Incentives payable to utility to cover difference between solar tariff less the base price of Rs. 5.50/kWh with 3% p.a. escalation Tariff to be fixed by concerned SERC & utility to pay a minimum of Rs. 5.50/unit - increasing 5

6 Client Need Gujarat Rooftop Solar PPP Project Background Govt. of Gujarat (GoG or Client) envisages to implement a pilot 5 MW grid connected distributed rooftop solar project in Gandhinagar on a PPP model (Gujarat aims to establish 500MW solar capacity in the State by March 2014) Demonstrate technical, commercial and regulatory viability and sustainability of rooftop solar projects. IFC was requested by GoG for assistance in implementing the project in around May 2010 Project Origination Leveraging their respective strengths in PPP project structuring and solar sector, C3P & SBA jointly pitched to the client Mandate signed in September 2010 Expected Impact Pilot Project has potential to reduce ~ 6000 tons of CO2 equivalent annually Potential private sector investment for the pilot project million US$ Potential for replication in Gujarat and beyond 6

7 Typical Gross Metering PV System Architecture Photovoltaic Panel (Approx. 1-5kW P ) Grid-tied inverter Meter 2: Solar Electricity Generation Meter 1: Conventional Electricity Consumption Transformer Grid 7

8 Key Project Risks Offtaker Govt/ Regulatory Risk Technical Transaction Structure Lenders Decision on offtaker Approval of process & bid documents Regulatory approvals required for process & documents Interconnection scheme approval Current tariff not viable for solar rooftop projects Grid stability and outages Availability of rooftops (private and public) Interconnection scheme for LT connection Clustering of rooftops Leasing mechanism No minimum offtake in current PPA Creation of security for lenders Termination Benefits Insurance Financial Assistance Detailed Feasibility undertaken and Project Documents prepared based on analysing 8 the above identified risks and extensive consultations with stakeholders

9 Key Activities Undertaken Identification of available and clustering of rooftops Detailed Project Due-diligence (technical, commercial, legal & regulatory) Financial analysis & Project Structuring Stakeholder consultations- GoG, Bidders, GERC, Rooftop owners Finalisation of Transaction Structure & Bid Documents GERC approved the bid process and the PPA 9

10 Recommended Business Model..(1/2) Sites Project Bidders Project Off Taker Incentive Public Buildings Structure 80% Government Buildings Public & Private Buildings Sites Private Buildings - Lease rental Commercial Buildings Residential - Private Solar Project Developers EPC Players Torrent Off-taker & Interconnect provider Torrent GBI Generation based Incentive No. Of Developers 2 (2.5 MW Per developer) 10

11 Recommended Business Model (2/2) Government Support (GBI) Financial Institution Project Implementation Agreement Lenders Agreement 80% Government Buildings Project Developer 1 Project Developer 2 Torrent Power Limited 20% Private Homes/Building Total 5MW Lease Agreement/s PPA (adopted by GERC) Wheels & Buys

12 Current Status Four bids received Bid Evaluation Underway Project Award and Closure likely by February 2012 Project commissioning by December

13 Doing more of Solar rooftops Knowledge Sharing & Dissemination: Development of White paper for external circulation Sharing of key lessons-castube (Internal) Govt. of Gujarat has in-principle approved replication in four cities Discussions underway for repeat mandates Requested IFC to help in drafting rooftop policy and capacity building Pursuing leads from other states for similar solar projects (Bihar, MP) 13

14 The Vision 14 Gandhinagar Photovoltaic

15 Key Lessons/Suggestions for more rooftop projects* Technical Availability of rooftop inventory(atlas) based on reliable and scientific rooftop survey Grid stability and reliability at LT Availability of standard technical specifications for system and inter-connection Cnsents & Clearances Regulatory/Policy Attractive Feed in Tariff should continue for next 4-5 years till grid parity is achieved Renewable Purchase Obligations for renewables/solar should continue to progressively increase Specific RPO obligations for solar rooftop may further encourage rooftop projects Incentives may be introduced for individual rooftop owners to encourage participation like exemption/discounts on taxes/duties payable Commercial/Financing More Pilot projects be encouraged and sponsored by Governments for developing sustainable/replicable models for individual rooftop owners Assured availability of grid at LT by Discom Robust payment security mechanism for the investors (like LC, Escrow, reliable credit ratings) Access to finance is the key-need to design appropriate financing scheme for individual rooftop owners * Project still in progress.based on the experience gained so far 15

16 THANK YOU 16