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5 FEASIBILITY REPORT FINAL ON 130 MW (AC) GRID INTERACTIVE SOLAR PV POWER PLANT AT NEYVELI, TAMIL NADU Prepared by Projects & Business Development Division NEYVELI LIGNITE CORPORATION LIMITED Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 1 Page 5 of 142

6 TABLE OF CONTENTS S.NO CHAPTERS PAGE NO 1 INTRODUCTION SOLAR ENERGY IN INDIA WORLD AND INDIAN PHOTOVOLTAIC POWER MARKET GOVERNMENT INITIATIVES AND POLICIES ON SOLAR PV POWER SOLAR PHOTOVOLTAIC POWER GENERATION TECHNOLOGY SOLAR PV POWER PLANT AT NEYVELI, TAMILNADU SOLAR PV EQUIPMENT AND SYSTEMS POWER COLLECTION SYSTEM AND GRID INTERFACE PLANT CONSTRUCTION PLANT OPERATION AND MAINTENANCE PROJECT COST AND FINANCIAL VIABILITY RISK ASSESSMENT CONCLUSIONS Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 2 Page 6 of 142

7 ANNEXURES Annexure-1 Annexure-2 Annexure-3 Annexure-4 Annexure-5 Annexure-6 Annexure-7 IRR Calculations Details of Cost of Generation, EIRR Details of Tax and Depreciation Levellised Tariff and Cost Of Generation Calculation EIRR Calculations and Payment Details Details of Loan Withdrawal for the Solar Project Interest on Working Capital Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 3 Page 7 of 142

8 CHAPTER 1 INTRODUCTION 1.1 BACKGROUND Neyveli Lignite Corporation Neyveli Lignite Corporation Limited (NLC) was registered as a Company under the Company s Act on 14th November 1956 with an objective of exploitation of lignite resources available in the country for Power generation. The first mining operation in Mine-I was formally inaugurated on 20th May 1957 by the then Prime Minister of India, Pandit Jawaharlal Nehru. NLC has been conferred with NAVRATNA status in Its core competence is lignite mining and power generation. NLC is operating lignite mines, and thermal power stations in Tamil Nadu and Rajasthan with an installed mining capacity of 30.6MTPA and power generating capacity of 4301 MW. NLC has a vision to emerge as a leading Mining and Power Company, continues to be a socially responsible company and strives for operational excellence in Mining & Exploration and Power Generation Major Constituent Units of NLC Mine-I Mine-I is Asia s biggest and first open cast lignite mine. The lignite seam was first exposed in August 1961, and regular mining of lignite commenced in May German excavation technology in open cast mining using Bucket Wheel Excavators, Conveyors and Spreaders was used for the first time in the country in Mine-I. The installed capacity of this mine was 6.5 Million Tonnes Per Annum (MTPA), which meets the fuel requirement of Thermal Power Station-I (TPS-I-600 MW). The capacity was increased to 10.5 MTPA from March 2003 under Mine-I expansion scheme, and currently meets the fuel requirement for generating power from TPS-I (600MW) and TPS-I Expansion Plants (420MW). Mine-II In February 1978 Government of India (GOI) sanctioned the Second Lignite Mine of capacity 4.7 MT of lignite per annum, and its expansion to 10.5 MT per annum in February Lignite excavated from Mine-II meets the fuel requirement of Thermal Power Station-II (1470 MW). Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 4 Page 8 of 142

9 Mine-IA GOI sanctioned the project Mine-IA of 3 MTPA at an estimated cost of Rs Crores in February 1998, mainly to meet the lignite requirement of M/s ST-CMS an IPP (Independent Power Producer) for their power plant of 1x250 MW capacity, and also utilise the balance lignite to the best commercial advantage of NLC. The project was completed on 30th March 2003 without time and cost overrun. NLC signed a Fuel Supply Agreement with M/s. ST-CMS for the supply of lignite for 30 years. BARISNAGAR MINE GOI sanctioned implementation of Barsingsar mine with a capacity of 2.1 MTPA of lignite per annum at an estimated cost of Rs crore in December Both overburden and lignite production has been outsourced. Lignite excavation commenced on 23rd November 2009 and production attained the rated capacity on 31st January Thermal Power Station -I The 600 MW Neyveli Thermal Power Station-I in which the first unit was synchronized in May'62 and the last unit in September'70 consists of six units of 50 MW each and three units of 100 MW each. The Power generated from Thermal Power Station-I after meeting NLC's requirements is fed into Tamil Nadu Electricity Board which is the sole beneficiary. Due to the aging of the equipments / high pressure parts, Life extension programme has been approved by GOI in March 1992 and was successfully completed in March 99 thus extending the life by 15 years. In view of the high grid demand in this region, this power station is being operated after conducting Residual Life Assessment (RLA) study. GOI has sanctioned a 2x500 MW Power Project (Neyveli New Thermal Power Plant NNTPS) in June 2011 as replacement for existing TPS-I. The Board of Directors of NLC accorded approval to keep the plant in service till the commissioning of the Neyveli New Thermal Power Plant (NNTPS). Thermal Power Station-II The 1470 MW Second TPS consists of 7 units of 210 MW each and was commissioned in two stages. GOI, in February 1978 sanctioned the Second Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 5 Page 9 of 142

10 TPS first stage of 630 MW (3 X 210 MW), and in Feb.1983, and sanctioned the second TPS Expansion from 630 MW to 1470 MW with the addition of 4 units of 210 MW each. The first 210 MW unit was synchronized in March 1986 while the last unit (Unit-VII) was synchronized in June The power generated from TPS-II after meeting the needs of Second Mine, is shared by the Southern States viz., Tamil Nadu, Kerala, Karnataka, Andhra Pradesh and Union Territory of Pondicherry. Thermal Power Station - I Expansion Thermal Power Station-I has been expanded based on the additional lignite available from Mine-I Expansion. The scheme was sanctioned by Government of India in February 1996 with a sanctioned cost of Rs Crores. The Unit-I was synchronized in October 2002 and Unit-II in July The power generated from this Thermal Power Station after meeting the internal requirements is shared by the Southern States viz., Tamil Nadu, Kerala, Karnataka, and Union Territory of Pondicherry. Barsingsar Thermal Power Station Government of India sanctioned the Barsingsar Thermal Power Station 250 MW (2 X 125 MW) in October 2004 with a latest cost (RCE) of Rs Crores. First Unit was synchronized on 27th October 2009 and second unit was synchronized on 5th June Both the units were commissioned in December 2011 and January The power generated from this thermal power station after meeting internal requirements is shared by the DISCOMS of the state of Rajasthan PROJECTS UNDER CONSTRUCTION/ IMPLEMENTATION Thermal Power Station-II Expansion - 2x250 MW This project consisting two units of 250 MW capacity each is in advanced stage of construction. The lignite requirement of this project will be met by Mine II Expansion which has already been commissioned. Unit-I & II were Declared for commercial operation with effect from 5th July 2015 and 22nd April, 2015, respectively.the steam generators of this project employ eco friendly "Circulating Fluidised Bed Combustion" (CFBC) technology. This technology is being adopted for 250 MW capacity units for the first time in India. Page 10 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 6

11 NEYVELI NEW THERMAL POWER PROJECT (NNTPP) Project & Business Development NLC is implementing lignite based project with 2X500 MW capacity at Neyveli adopting pulverised fuel firing technology as a replacement to the existing 600 MW TPS-I. Unit-I & II are rescheduled to be commissioned in October 2017 & April 2018 respectively. Detailed engineering activities are in progress and soil investigation work has been completed. Civil works in respect of Boiler and Auxiliaries, Turbo Generator and Auxiliaries, Electrostatic Precipitator, Chimney raw water Pump house etc. are in progress. Supply of materials is in progress. Mechanical erection has commenced for both Unit-I & II Steam Generator area and Power House building. RESTRUCTURING OF MINE-I AND MINE-IA NLC is is implementing re-structuring of existing Mine-I from 10.5 MTPA to 8.0 MTPA and Mine-IA from 3.0 MTPA to 7.0 MTPA at an estimated cost of ` crore to meet the requirement of lignite for Neyveli New Thermal Power Project of 1000 MW capacity being implemented in Neyveli. The overall lignite mining capacity will be increased by 1.5 MTPA through this restructuring. Mine-I will continue to operate at 10.5 MTPA until Mine-IA is developed to produce 7.0 MTPA. BITHNOK THERMAL POWER PROJECT MW WITH LINKED MINE MTPA The Board of Directors of NLC has approved setting up of a lignite based Thermal Power Plant of 250 MW capacity with linked Mine of 2.25 MTPA at Bithnok in Bikaner District, in the State of Rajasthan at an aggregate cost of ` crore (Nov 2014). Power Purchase Agreement has been signed with Discoms of Rajasthan. Out of hectares (Ha.) land required for Bithnok TPS and Mine, Government of Rajasthan (GoR) has issued award for acquisition of hectares of private land in Bithnok village and Ha.of Government land will be diverted to NLC by GoR after takeover of the private land. The total land mentioned above included 225 Ha. of land for Thermal Power Station. It is proposed to implement the above project through EPC mode and the project is expected to be commissioned during the year Page 11 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 7

12 BARSINGSAR THERMAL POWER STATION EXTENSION (BTPSE) MW LINKED TO HADLA LIGNITE MINE-1.9 MTPA The Board of Directors of NLC has approved to develop the Hadla Mine of 1.9 MTPA capacity to set up a 250 MW lignite based thermal power plant in the Bikaner District of Rajasthan, as an extension of the existing Barsingsar Power Project at an aggregate cost of ` crore (Nov 2014). The fuel requirement is proposed to be met from Hadla Mine and the Barsingsar Mine. Power Purchase Agreement has been signed with Discoms of Rajasthan. All statutory clearances for both BTPSE and Hadla Mine Project have been obtained. Government of Rajasthan has allocated Mining Lease area of sq.km. It is proposed to implement the above project through EPC mode and the project is expected to be commissioned during the year JOINT VENTURE PROJECTS NLC TAMILNADU POWER LIMITED - 2X500 MW NLC TAMILNADU POWER LIMITED (NTPL) coal based 2x500 MW thermal power project at Tuticorin in Tamil Nadu is a joint venture company with TANGEDCO. NLC holds 89% of equity and TANGEDCO 11%. The Unit-I attained commercial operation in June 2015 and Unit-II in August NTPL has signed a fuel supply agreement with Mahanadhi Coal fields Limited for supply of 3.0 MTPA of coal and in order to meet the shortfall in requirement, a contract has also been awarded on M/s. MSTC for supply of imported coal NEYVELI UTTAR PRADESH POWER LIMITED - 3X660 MW NLC is in the process of setting up of 1980 MW (3x660 MW) coal based thermal power project in Ghatampur Tehsil, Kanpur Nagar District in the State of Uttar Pradesh, at an estimated cost of ` 14,375 crore. This Joint Venture project is executed by Neyveli Uttar Pradesh Power Limited (NUPPL), a Subsidiary Company, with equity participation of your Company and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) in the ratio of 51:49. Page 12 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 8

13 Power Purchase Agreement has been signed with Uttar Pradesh Power Corporation Limited. Government of Uttar Pradesh has accorded sanction for supply of 80 cusecs. of water from the West Allahabad branch canal downstream of Bidhnu Kasba Village for the above project. M/s. RITES has been assigned the work of carrying out the feasibility study for railway siding for the proposed coal based thermal power project. Short-listing of bidders who have responded to Expression of Interest floated for Steam Generator and Turbine Generator packages and also Balance of Plant Package have been completed. Techno commercial specifications have been issued to the shortlisted bidders for SG and TG and pre-bid discussions with the prospective bidders have been completed FUTURE PROJECTS 4000 MW coal based thermal power project, in two phases, at Sirkali, Nagapattinam District in the State of Tamil Nadu.(First phase-3x660mw) Thermal Power Station-II Second Expansion MW with linked Mine- III MTPA(New mine proposed near Mine-II) Mine-II Augmentation MTPA to MTPA NEED OF THE SOLAR POWER PROJECT In continuation of its efforts to add Green power NLC has taken the following initiatives: NLC has entered into generation of green energy by setting up a 51MW wind power project to be set up in Tirunelveli District of Tamil Nadu. Work order for supply, installation and commissioning of 34 wind turbine generators of 1.5 MW each has been awarded to M/s. Leitwind Shriram Manufacturing Limited, Chennai. The first wind turbine generator was commissioned on 29th August 2014 and so far nine wind turbine generators have been commissioned till July 2015 and the project is expected to be completed in mid MW solar PV power project at Neyveli was commissioned on 28/09/2015. Following the above, NLC proposes to install 2 x 65MW Solar projects in Neyveli and Barsingsar in the land available with NLC. Page 13 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 9

14 1.2 OBJECTIVE Project & Business Development The main objective of the study is to prepare a Feasibility Report for a 130MW (AC) solar PV power project to be set up at four locations located in Neyveli Township area in Tamilnadu. SCOPE OF WORK The broad coverage of the Feasibility Report will include the following: Status of global and Indian solar power scenario. Discussion on various solar electric technologies available in the market for setting up a solar power plant. Brief description of solar-based grid connected power plant. Various data related to terrain, contour, vegetation, solar radiation, land availability etc. Study in depth infrastructure availability at the site for power evacuation covering grid proximity, availability, quality and such other. Computation of site-specific annual energy generation based on discussion with vendors and secondary data. Estimate of Project Cost based on the prevailing market rates. Financial analysis of the project based on commercial terms of banks/ireda and CERC norms. Financial viability of the project considering commercial terms of market estimates and the announced scheme of MNRE and REC/CERC/SECI/TNERC/TANGEDCO Debt Service Coverage Ratio (DSCR) and Internal Rate of Return (IRR) considering with and without CDM benefits. Sensitivity analysis. List of approvals required for the project. Project Implementation Schedule in the form of a bar chart/cpm network indicating the sequence and duration of each major activity. 1.3 METHODOLOGY The study will comprise the following: Visit to the potential sites in Neyveli Township Area. Study of the sites for their suitability for the solar PV power plant including grid connectivity Page 14 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 10

15 Preparation of draft report based on estimated project cost and various central/state schemes available for power sale. 1.4 STRUCTURE OF THE REPORT The report is configured around number of chapters with relevant tables and drawings. Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Introduction about NLC. Solar Energy in India World and Indian Photovoltaic Power Market Government Initiatives and Polices on Solar PV power plant. Solar Photovoltaic Power Generation Technology Proposed Solar PV power plant at NLC, Neyveli, Tamilnadu with selected plant site, power generation capacity, Layout, Grid connectivity options and staged development of project. Solar PV equipment and systems Power Collection System and Grid Interface Site characteristics, construction requirements, duration and quantities involved are outlined. Plant operation and maintenance as well as manpower requirements are discussed. Financial Analysis involving investment estimation, funding, sale of power, subsidies, operating expenses, financial results are discussed A brief analysis of the risks associated with the project Conclusions CHAPTER 2 SOLAR ENERGY IN INDIA 2.1 PRESENT POWER GENERATION SCENARIO Page 15 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 11

16 The total installed power generation capacity in India is MW as on 31st December 2015 with around 70% from thermal stations, 15% from Hydel stations, 2% from nuclear stations and 13% from renewable sources. This is shown in Table 2-1 and Figure 2 1 below. Table 2 1 Breakup of Power Generation Capacity in India - MW (As on ) Thermal Coal Gas Diesel Total Thermal Nuclear Hydro RES (MNRE) Grand Total Figure 2 1 Hydro MW 15% ALL INDIA INSTALLED GENERATING CAPCITY- As on RES (MNRE) MW 13% Nuclear 5780 MW 2% Diesel MW 1% Coal MW 61% Gas % India s substantial and sustained economic growth is placing enormous demand on its energy resources. As seen above India depends on thermal source for energy generation. There is also a significant risk of lesser thermal Page 16 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 12

17 capacity being installed in recent years on account of lack of indigenous coal in the coming years because of both production and logistic constraints, and increased dependence on imported coal. There is threat of creating serious problem for India s future energy security. Economic growth, increasing prosperity and urbanization, rise in per capita consumption, and spread of energy access are the factors likely to substantially increase the total demand for electricity. Thus there is an emerging energy supply-demand imbalance. Already, the peak deficit is in the range of 12.7%, which could increase over the long time. With constraints faced in resource availability and in delivery mechanism, reduction of traditional means of energy supply, renewable energy can make a substantial contribution to overcome the above problems. 2.2 IMPORTANCE OF RENEWABLE ENERGY There is a pressing need to accelerate the development of advanced clean energy in order to address global changes of energy security, climate change and sustainable development. The following points explain the importance of promoting Renewable Energy generation in India. a) There is growing global concern and awareness for the environment. b) The Country s rising energy needs, proportional to Gross Domestic Product (GDP) growth. c) Economic unbalance by over dependence on coal for electricity generation and over dependence on oil imports. a) Growing global concern and awareness for the environment Technological advancements made in the last century have returned to haunt mankind by the degradation they have brought on the environment. Renewable energy sources may be the panacea for restoring our planet to greener health. Fossil fuels are major reason for green house gas emission. The chart given as Figure 2 2 shows the sector wise green house gas emissions. In this, power sector occupies major role to produce green house gas emission compare to other sectors like transport, agriculture, industrial process, etc. Power sector alone produces 22% of CO 2 annually. Page 17 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 13

18 Figure 2 2 Sector wise Green Gas Emission b) Country s rising energy needs, proportional to Gross Domestic Product (GDP) growth. Primary energy demand in India is expected to grow from 400 million tonnes of oil equivalent (toe) to well over 1200 million toe by The per capita energy consumption level in various countries is shown in the figure below. India s per capita consumption of energy is far lower than that of the world average. The same is shown graphically in Figure 2-3 below. Consumption of electrical energy will rise from current, low, 720 KWh per capita to well over 2000 kwh by Indian per capita energy consumption is low at 20-25% of world average. With economic growth, a sharp rise in consumption is inevitable. India s grid connected power generation capacity will need to scale up from the current figure of about 224 GW to well over 460 GW by c) Over dependence on Coal for electricity generation Page 18 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 14

19 The Indian power sector is highly dependent on coal as a fuel, with 58% of the total installed capacity being coal-based generation. Given the current scenario, coal consumption by the power sector is likely to grow faster. According to the Ministry of Coal, the existing coal reserves are estimated to last for another years. To meet the 778 GW demand for power by , the Government of India is planning heavy investments in coal based power generation, where cost of production is lower than with any other source. Coal based power is grid connected, which leads to another major power related issue in India AT&C (Aggregated Technical & Commercial) losses. Some key statistics pertaining to AT&C losses in India for are given below: Figures vary from 18-62% across states; a country average of 36% Major losses due to theft and pilferage (about Rs 20,000 Cr annually) Poor billing and collection efficiency (55% and 41% respectively) India is positioned on the threshold of a new era of possibilities and opportunities. The exponentially growing demand for resources in both rural and urban India is creating new possibilities every day. It is a wellknown fact that the rapidly growing population and businesses are placing considerable pressure on India s power resources. India s carbon dioxide emissions from coal combustion are projected to total 1.4 billion metric tons in 2030, accounting for more than 7 percent of the world total. d) Over dependence on oil imports India lacks substantive crude oil reserves and most projection suggests that these will deplete completely in 20 years. Over 100 million rural families rely on kerosene for domestic lighting. Extensive usage of diesel and kerosene for captive power generation of all kinds industrial, commercial, domestic and agricultural. About 11% of the total power is sourced from oil & gas. Apart from automobiles and industry, the power sector is the largest importer of Page 19 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 15

20 oil & gas in India. For 2008, the total oil imports accounted for 7% of the GDP. This clearly signifies that the available fuel is not sufficient to meet the rising demand for energy of India. 2.3 ADVANTAGES OF PROMOTING SOLAR POWER India is located in the equatorial sun belt of earth, thereby receiving abundant radiant energy from the sun. The following features of solar power make it the most viable renewable source of energy for India: Solar energy is available in abundance. Available across the country unlike other renewable sources, which have geographical limitations Available throughout the year Decentralized / off-grid applications addressing rural electrification issues PV needs only one initial investment but no further fuel PV does not harm the environment Modularity and scalability Among other renewable sources of electricity generation, wind has seen rapid growth in India in recent years. However, India being a medium wind profile country, its low plant load factors and situation of optimal locations of wind generation that are expected makes it less attractive than Photo Voltaic power generation in the longer term. Approximate calculations, based on irradiation data would suggest that if half a percent of Indian land area (amounting to about square kilometres) brought under solar PV could meet all the electricity needs of the country in the year The Photo Voltaic (PV) approach is particularly suited for the geographical and socio-economic features of this country having highly skewed energy distribution between urban and rural areas. India needs to focus on developing its own sources of energy. Even with the development of nuclear energy, India will be dependent on other nations for fuel. To sustain economic growth, to come out of the energy deficit situation and ensure that energy is available in every Page 20 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 16

21 town and village, India must utilise its immense potential in solar energy. 2.4 MERITS OF SOLAR PV The solar PV power is the least polluting and environmental friendly among solar power technologies. On a comparison with solar thermal, the following are its major merits: Totally green technology. Single stage conversion of light to electricity. This means that there is no intermediate thermal cycle with incumbent boiler, turbo generator and condenser. Hence no heat rejection to atmosphere. Fully static equipment with no moving parts. Requires least operation and maintenance. Well-established and mature technology. Rated for a useful life of 25 years Government support for the technology is in place at the centre and Rajasthan has followed support programmes. No special skill set is required to run the solar PV power plant unlike other power generating plants. Solar PV power plant is very ideal for utilizing vast non-cultivated landmass at remote locations without the requirement of process or cooling water to better use. 2.5 SOLAR RADIATION IN INDIA The Indian Metrological Department (IMD) maintains a nationwide network of radiation stations which measures solar radiation and also daily duration of sunshine. The results are very encouraging to tap solar energy as over other countries. In most part of India, clear sunny weather is experienced 250 to 300 days per year. Page 21 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 17

22 The annual global radiation varies from 1600 to 2200 kwh/ Sq.M, which is comparable with the radiation received in tropical and sub tropical regions. The equal energy potential is about 6000 million GWh of energy per year, which is between 4 and 7 kwh per day, per square meter. The solar radiation levels vary widely from place to place in India. A solar map of India is shown in Figure 2-3. Figure 2 3 Peak Global Insolation In India It is apparent from the map above that the western states have the highest levels of solar energy. The mean average Insolation at various cities in India is given below Table 2-2. Table 2-2 Mean Average Insolation at Various Cities in India S.NO STATION Avg. Radiation in kwh/sq. M Page 22 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 18

23 1 Jaisalmer Jodhpur Jaipur Ahmedabad Ajmer Srinagar Delhi Patna Bhopal Nagpur Chandrapur Kolkata Visakhapatnam Panjim Chennai Thiruvanantapuram Dibrugarh Okha Bhuvaneshwar Bhavnagar 5.23 Source: NREL 2.6 SOLAR RADIATION LEVEL IN TAMILNADU Tamilnadu is having high level of solar radiation per square meter, which is second best in country and large amounts of contiguous, relatively flat, land is available. Tamilnadu is having solar radiation with clear sunny days and average daily solar incident of 5-7 kwh/sq.m. The below Figure 2-4 shows the Tamilnadu state insolation level. Figure 2-4 shows the Tamilnadu state insolation level Page 23 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 19

24 Source: NREL Annual Average solar radiation in Tamilnadu is 5.20 kwh/sq.m/day and for Neyveli it is having 5.14 kwh/sq.m/day. Thus, Neyveli is blessed with high density solar radiation, which could be effectively converted to solar power through appropriate technologies. Page 24 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 20

25 CHAPTER 3 Project & Business Development WORLD AND INDIAN PHOTOVOLTAIC POWER MARKET 3.1 OVERVIEW ON WORLD SOLAR PV POWER MARKET The Solar photovoltaic (PV) market reached the total global operating capacity of 177 GW (equal to 1,77,000 MW) by year end The market was fairly stable relative to 2013, and 40 GW added during the year Global solar PV installed capacity by year end 2014 is given in Figure 3-1 Figure 3-1 Solar PV global capacity, Source: REN 21, Renewable global status report Five countries added more than 1 GW of solar PV to their grids in The top markets shared by Germany, China, the United States, United Kingdom and Japan. China dominated the market, adding 10.6 GW and accounting for about 13.8% of newly installed capacity. United states, United Kingdom and Italy ended 2014 with more solar PV than wind capacity in operation. Figure 3-2 shows the capacity share between top 10 countries. Page 25 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 21

26 Figure 3-2 Solar PV Global Capacity, shares of top 10 Countries United Kingdom 3% Spain 4% France 4% United States 12% Australia 3% India 2% Germany 25% Italy 12% Japan 16% China 19% Source: REN 21, Renewable global status report China added a record 10.6 GW slightly over the previous years, increasingly its total to 28.2 GW. Germany listed in top with the capacity of 38.2 GW. Italy reached a total capacity of 18.5 GW during Other top EU markets France included about 0.9 GW, the United Kingdom added 2.4 GW during All these counties total operating capacity increase finally. The largest markets were Germany reaches 38.2 GW, the United Stated reaches 18.3 GW, Japan reaches 23.3 GW, Australia reaches 4.1 GW, and India reaches total capacity of 3.2GW. Page 26 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 22

27 Solar PV is starting to play a substantial role in electricity generation in some countries, meeting estimated national electricity. Solar PV capacity in the EU was enough to meet global capacity. Figure 3-3 Typical Large Scale Solar PV Power Plant in the Mojave Desert, Southern California 3.2 WORLD SOLAR PHOTOVOLTAIC INDUSTRY According to the secondary data, over the past decade, leadership in module production has shifted from the United States, to Japan, to Europe, to Asia. In 2014, Europe s contribution to the total cumulative PV installations amounted to 48 % (compared to 58 % in 2013). In contrast, installations in China/Taiwan accounted for 17 % (compared to 13 % in 2013). By 2012, Asia accounted for 86% of global production with china producing almost two-third of the world total. Europe s share continued to fall from 14% in 2011to 11% in 2012, and Japan s share dropped from 6% to 5%. Page 27 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 23

28 The US share remained at 3%. Europe was still competitive for polysilicon production. The top solar PV module manufacturer accounted for half of the 35.5 GW produced globally. Yingli Green Energy (China) jumped ahead of both Suntech (China) and First Solar (USA) to land in first position. First solar held its number two spot, and Suntech fell to fourth after Trina solar (China). There was also much shifting in the ranks among the other top players. The market share of top 15 Solar PV module manufacturers by 2012 is given in Figure 3-4. Figure 3-4 Market shares of Top 15 Solar PV Module Manufacturers in 2012 Approximately 31.9 GW of crystalline silicon cells and 35.5 GW of modules were produced in 2012, down slightly from Despite several plant closure, year-end module production capacity increased in 2012, with estimate ranging from below 60 GW to well over 70 GW. More than 24 US solar manufacturers have left the industry in recent years and 10 European and 50 Chinese manufacturers went out of business during In India, 90% of domestic manufacturer had filed for debt restructuring by early This was mainly due to overcapacity of module production as against market. Page 28 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 24

29 Even as some manufacturers idled production capacity or closed shop, others opened facilities and aggressively sought new markets particularly in developing world. New plants opened around the world in 2012 from Europe to Turkey, Malaysia to United States. Innovation and product differentiation have become increasingly important, which forces manufacturer investing in improving manufacturing processes to reduce their cost. The top 15 global solar PV Module manufacturers with their production by 2012 are presented graphically in Figure 3-5. Figure 3-5 Top Solar PV module production by OVERVIEW ON SOLAR PV POWER IN INDIA Solar PV applications in India have followed a different trend from global practices. While globally, there has been higher focus on grid connected applications, the Indian PV market has predominately focused on off-grid applications before This trend was changed after India Government announced National Solar Mission in end of In addition to the national Page 29 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 25

30 policy, many states were announced state policy for promotion of large scale Solar PV projects. After this, there has been a significant capacity addition in most of the states such as Gujarat, Rajasthan, Karnataka, Tamil Nadu, and such other states. The state wise installed Solar PV plant as on is given in Table 3-1. S. Table 3-1 Solar PV Power Plant Installations in India No. States Installed Capacity (MW) 1 Andhra Pradesh Arunachal Pradesh Chhattisgarh Gujarat Haryana Jharkhand 16 7 Karnataka Kerala Madhya Pradesh Maharashtra Orissa Punjab Rajasthan Tamil Nadu Telangana Tripura 5 17 Uttar Pradesh Uttarakhand 5 19 West Bengal Andaman & Nicobar Delhi Lakshadweep Chandigarh Others 0.79 Total Page 30 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 26

31 Installed Capacity as on May % Gujarat 2% 2% 1% 4% 7% 16% 28% Rajasthan Maharashtra Andhra Pradesh Tamil Nadu Jharkhand 10% 30% Karnataka Uttar Pradesh Madhya Pradesh Thus, a total of around 3884 MW of solar PV power plant has been commissioned all over India. Among the states, Rajasthan is in first place followed by Gujarat, Madhya Pradesh, Maharashtra, Andhra Pradesh, Punjab Tamil Nadu, and Karnataka. Rajasthan in first place with 30% of market share followed by Gujarat, which has 28% of market share. Apart from Rajasthan and Gujarat, other states are having less than 1% of market share in terms of installed PV power plant in the respective states. The breakup of Installed PV projects based on central and state policy is given below Table 3-2 Table Break up of Solar PV plant installed in India with respect to Central / State scheme Projects Capacity (MW) Projects Under JNNSM (MNRE Projects) 1243 Projects under the State Policy Projects Under REC Scheme Other projects Total OVERVIEW ON SOLAR PV POWER PLANT IN TAMILNADU Tamilnadu state has crossed 140 MW of grid interactive solar PV power plant as on May As given above, Tamilnadu is placed 7 th in the list Page 31 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 27

32 after Punjab for Solar PV generation as 4% of SPV plant working in the state. Figure 3-6 shows the contribution of SPV promotion in India. Figure Tamilnadu contribution of SPV in India Tamilnadu Contribution of SPV promotion in India 4% Tamilnadu Other States 96% Most of the projects got commissioned under central scheme of JNNSM. This again proves that developer would prefer to setup Solar PV plant in Tamilnadu as state has higher solar Insolation. The below Table 3-3 given the breakup of projects based on central and state scheme. Table 3-3 Breakup of Solar PV plants installed in Rajasthan under Central / State scheme Scheme Capacity in MW Projects Under JNNSM 16 Projects Under RPSSGP/GBI Scheme Projects Under REC Scheme Total FUTURE DEMAND FOR SOLAR PV POWER PLANT IN TAMILNADU Renewable Energy has been an important component of India s energy with respect to reduce the conventional process of energy generation and thereby moving forward towards energy security and sustainability. As far as solar energy concern, India is blessed with abundant solar energy with equivalent to producing trillion kilowatt of electricity. To tap this energy potential fully, Page 32 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 28

33 GoI has created separate ministry for renewable energy promotion in India. This is the only such ministry in the world. In addition to central government initiative, Tamilnadu state also appointed nodal agency called Tamilnadu Energy Development Agency. Both central and state has come out with separate solar policy to establish Tamilnadu as a pioneer in solar energy. The following schemes are determining the future demand of grid interactive solar power projects. Detailed analysis of policies with their detailed procedure is coved in the next Chapter. Setting up of solar power plant under National solar mission (JNNSM). The mission has set a target for development of grid connected solar power capacity of 20,000 MW by 2022 to be achieved in following three phases. Phase-1 (Up to ) Phase-2 (Up to ) Phase-3 (Up to ) Target 1100 MW 10,000 MW 20,000 MW Setting up of Solar Power Plants in Tamilnadu for direst sale to DISCOM of Tamilnadu. Development of 50MW solar PV power plant by selection of solar power producer through tariff based competitive bidding process. Utility grid power projects for captive use/direct sale to third party/states other than Tamilnadu through Open access for promotion of investment in Tamilnadu. Utility grid power projects for sale through RE (Solar) certificate mechanism. The power generated from these power projects shall be purchased by DISCOMs of Tamilnadu at Pooled Cost of Power purchase as determine by the appropriate commission from time to time. The solar power producer will sell certificate (REC) to obligated entities as per the regulation/orders of appropriate commission. The potential for grid connected solar PV power plant under this scheme would be around 35,000 MW to achieve 3% RPO compliance by 2022, which is illustrated in Figure 3-7. Page 33 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 29

34 Figure Solar Capacity Requirement for RPO compliance. Thus, market for grid connected solar PV power plant in Tamilnadu is quite good and significant. Page 34 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 30

35 CHAPTER 4 Project & Business Development GOVERNMENT INITIATIVES AND POLICIES ON SOLAR PV POWER 4.1 GOVERNMENT OF INDIA AGENCIES FOR SOLAR PV SECTOR There have been several initiatives from the Government of India to promote solar PV applications. The first step was formation of separate department of Non-conventional Energy Sources in 1982, which was then upgraded to a full-fledged Ministry of Non-Conventional Energy Sources (MNES). Subsequently in 1992 subsequently it has been renamed as Ministry of New and Renewable Energy (MNRE). This is the only such Ministry in the world. MNRE is the nodal ministry of the Government of India at the federal level for all matters related to new and renewable energy. The Ministry has been facilitating the implementation of programs including harnessing renewable power, renewable energy to rural areas for lighting, cooking and motive power, use of renewable energy in urban, industrial and commercial applications and development of alternate fuel and application. IREDA (Indian Renewable Energy Development Agency) is a public limited Government company established in 1987, under the administrative control of Ministry of New and Renewable Energy (MNRE), to promote, develop and extend financial assistance for renewable energy and energy efficiency/ conservation projects. NTPC Vidyut Vyapar Nigam Ltd. (NVVN) was formed by NTPC Ltd, as its wholly owned subsidiary to tap the potential of power trading in the country thereby promote optimum capacity utilization of generation and transmission assets in the country and act as a catalyst in development of a vibrant electricity market in India. NVVN has been appointed as nodal agency for promoting grid connected solar power capacity for the first phase of Jawaharlal Nehru National Solar Mission (JNNSM) for a capacity of 1000MW up to 2013 through thermal power bundling scheme. Page 35 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 31

36 Solar Energy Corporation of India (SECI) is a Government of India Enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE). One of the main objectives of SECI is to assist the Ministry and function as the implementing and facilitating arm of Jawaharlal Nehru National Solar Mission (JNNSM) for development, promotion and commercialization of solar technologies in India. 4.2 CENTRAL ELECTRICITY REGULATORY COMMISSION (CERC) The Central Electricity Regulatory Commission (CERC) of Government of India has brought out an order in April 2010 and is undergoing revisions periodically. This order deals with the terms and conditions for tariff determination from renewable energy sources. This regulatory order provides levellised total tariff for all renewable energy generation plants such as wind, small hydro, solar PV, solar thermal, bio mass and non fossil fuel based co generation. The order also specifies useful life of plant, control and tariff periods, financial indices for tariff design such as capital cost, debtequity, loans, depreciation, operation and maintenance expenses, capacity utilization, plant load factor, auxiliary power consumption, fuel cost, calorific value, government subsidy, etc. All power generation units owned or controlled by Central government or companies dealing with power in more than one state will be regulated by the tariff order. The latest CERC regulatory order is discussed in detail in financial Chapter CENTRAL INITIATIVES - GENERATION BASED INCENTIVE SCHEME FOR SPV In January 2008, MNRE formed guidelines for generation-based incentives for grid connected solar (both thermal and PV) plants. The scheme was extended to all existing registered companies, Central and State power generation companies and public/private sector PV power project developers. The scheme promoted grid connected power plants in excess of 1 MW of capacity at a single location. The scheme was limited to 5 MW per developer across India and a maximum of 10 MW per state. Under this scheme, MNRE offered to provide, through IREDA, a generation-based incentive (GBI) of a maximum of Rs.12 per kwh to eligible projects, which are commissioned by December , after taking into account the power Page 36 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 32

37 purchase rate (per kwh) provided by the State Electricity Regulatory Commission or utility for that project. 4.4 JAWAHARLAL NEHRU NATIONAL SOLAR MISSION (JNNSM) The National Solar Mission program was initiated by the Government as one of the 8 programs under the National Action Plan for Climate Change by the Prime Minister of India in In the month of November 2009, the Mission document was released as the Jawaharlal Nehru National Solar Mission (JNNSM) and the Mission was formally launched by the Prime Minister of India on 11 th January The JNNSM is neutral to the choice of solar technologies and has provision for the development of all viable technologies, primarily focussed on grid- connected systems. The document emphasizes the development of grid-connected applications, by offering feed-in tariffs for the power producers. The feed-in tariff is proposed to be provided for a period of 25 years. JNNSM proposes to introduce Renewable Purchase Obligation (RPO) to promote the growth of this sector. The solar power purchase obligation for States would start with 0.25% in Phase I and go up to 3% by The PPAs shall be signed with the developers, who will set up solar projects connected to the grid at 33 KV level and above. The above mission, by adopting suitable policy conditions, is expected to focus on setting up an enabling environment for solar technology penetration in the country both at centralized and decentralized levels. The mission targets are: To create an enabling policy framework for the deployment of 20,000 MW of solar power by 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 10,000 MW 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. Page 37 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 33

38 The transition could be appropriately up scaled, based on availability of international finance and technology. To create favourable conditions for solar manufacturing capability, particularly solar thermal for indigenous production and market leadership. To promote programmes for off grid applications, reaching 1000 MW by 2017 and 2000 MW by To achieve 15 million sq. meters solar thermal collector area by 2017 and 20 million by To deploy 20 million solar lighting system for rural areas by The aspiration of the JNNSM is to ensure large scale deployment of solar generated power for grid-connected as well as distributed and decentralized off-grid provisions of commercial energy services. The road map for the same is shown below in Table 4-1. Table 4-1 Deployment of Application Segments Sl. No. Application Segment 1. Solar collectors Off grid solar applications Utility grid power including roof top Target For Phase I ( ) 7 million sq. meters Target For Phase II ( ) 15 million sq. Meters Target For Phase II ( ) 20 million sq. meters 200 MW 1,000 MW 2,000 MW 1,000 2,000 MW 4,000 10,000 MW 20,000 MW Source: JNNSM Notification The rapid and large-scale diffusion of solar energy will require a consistent increase in technically qualified manpower of international standards. It is envisaged that at the end of mission period, solar industry will employ at least 100,000 trained and specialised personnel across the skill spectrum including engineering, management and R&D functions. Page 38 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 34

39 4.5 MIGRATION SCHEMES Project & Business Development NVVN signed 16 Memorandum of Understating (MoU) with solar power project developer on July 2010.The memorandum will enable the developer to generate 84 MW of solar energy. This was done under the migration scheme of the government. Under this, 54 MW will be generated through solar photovoltaic (PV) technology and the rest 30 MW through solar thermal technology. 4.6 OTHER SCHEMES Status and achievements of grid connected solar power projects under Phase 1 of JNNSM implemented through NVVN is that about 950MW solar power projects excluding 84 MW were selected under migration scheme. This target was achieved in two batches as batch -1 during and batch -2 during through reverse bidding. The resulting tariffs in batch -1 for Solar PV projects ranges between Rs and Rs per unit, with average of Rs per unit and for batch -2 solar PV project, the tariff ranges between Rs 7.49 to Rs 9.44 per unit, with average tariff were Rs.8.77 per unit. A total capacity of 420 MW has been commissioned under these phases by the end of Phase -1 as on 31 st March In addition, a capacity of 50.5 MW under migration scheme, 88.8 MW under IREDA-GBI scheme and 21.5 MW under old demonstration scheme has been commissioned, taking the total capacity commissioned during Phase-1 to MW. Viability Gap Funding (VGF): The Ministry of New and Renewable Energy (MNRE) has announced a scheme for implementation of 1000MW of Grid connected Solar PV projects by Central Public Sector Undertakings (CPSUs) with Viability Gap Funding (VGF) under Batch-V of Phase-IV of JNNSM in a span of 3 years from to The Solar projects under VGF scheme must mandatorily procure cells and modules from domestic manufactures. VGF would be provided by M/s Solar Energy Corporation of India (SECI) at a fixed rate of 1Cr/MW for projects where domestically produced cells and modules are used, and Rs 50 Lakhs/MW would be provided in case where domestically manufactured modules are used Page 39 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 35

40 4.7 RENEWABLE ENERGY CERTIFICATE - REC A REC is a paper or electronic instrument, which represents the property rights to the environmental, social, and other non-power qualities of renewable energy generation. REC and its associated attributes and benefits can be sold separately from the underlying physical electricity associated with a renewable based generation source. RECs provide buyers, flexibility: In procuring renewable power to meet renewable power purchase obligation across a diverse geographical area. In applying the renewable attributes to the electricity use at a facility of choice. This flexibility allows organisation to support renewable energy development and protect the environment when green power products are not locally available. All grid-tied renewable-based electricity generators produce two distinct products: Physical electricity RECs At the point of generation, both components can be sold together or separately, as a bundled or unbundled product. In either case, the renewable generator feeds the physical electricity onto the electricity grid, where it mixes with electricity from other generation sources. Since electrons from all generation sources are indistinguishable, it is impossible to track the physical electrons from a specific point of generation to a specific point of use. RECs serve the role of laying claim to and accounting for the associated attributes of renewable-based generation. The REC and the associated underlying physical electricity take separate pathways to the point of end use. As renewable generators produce electricity, they have a positive impact, reducing the need for fossil fuel-based generation sources to meet consumer demand. RECs embody these positive environmental impacts and convey these benefits to the REC owner. Page 40 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 36

41 As renewable generators produce electricity, they create one REC for every 1000 kilowatt-hours (or 1 megawatt hour) of electricity placed on the grid and metered at the bus-bar of RE generator. The schematic of REC organisation is given in Figure 4.1 Figure 4.1 Schematic of REC workings As REC is only a commercial mechanism for RPO compliance, it would not require creating any physical infrastructure for transaction of REC from one place to another. No inter-state or inter-regional transaction cost is involved. Hence RE generator can sell its REC to any obligated entity located in any part of country with no additional cost. Similarly, obligated entities shall have freedom to procure REC from the place of their choice. The Obligated entities mandated to purchase a defined quantum of renewable energy of their overall consumption or can purchase RECs to meet their Renewable purchase Obligation (RPO) set under Renewable Purchase Obligation of their respective states. The following entities are generally obligated in states Distribution Licensees Captive consumers Open Access users Eligibility Criteria for obtaining REC Eligible entities are those renewable generators who meet following criteria Type of renewable source is approved by MNRE and respective State Commission. Page 41 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 37

42 Not have any Power Purchase Agreement (PPA) for the capacity related to such generation to sell electricity at a preferential tariff determined by the appropriate commission Not having agreement to sell electricity to local distribution company at price not exceeding pooled cost of power purchase of that distribution company Sells electricity to the following Distribution licensee of the area at a price not exceeding the pooled cost of power purchase of such distribution licensee, or To any other licensee or to an open access consumer at a mutually agreed price, or through power exchange at market determined price. Selling electricity to any entity other than local distribution company at market driven prices Operational Structure of REC Mechanism The operational framework can be broadly divided into four aspects as follows Energy accounting of RE generator. Issuance of REC to RE generator. Procurement and surrender of REC by obligated entities. Notification to the respective SERC about fulfilment of RPO of obligated entity. Figure 4-2 Operational framework for the REC mechanism Page 42 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 38

43 Step -1: Electricity Generation and feeding to the grid Project & Business Development The electricity generated in RE project is injected into the grid. The electricity consumed by the entities which had contract with that particular RE project. The metering of quantum of electricity injected into the grid and energy accounting will be done by the state load despatch centre (SLDC). Step -2 : Request for issuance of REC The REC generator will send a request to the REC Issuance Registry to issue the RE certificate equivalent to the amount of electricity injected into the grid and as certified by the SLDC. Step-3: Confirmation of Electricity Generation The REC registry and SLDC shall establish procedure for exchange of information about actual electricity generated by registered RE projects on monthly basis. The SLDC shall submit the report for the energy accounts of RE projects to the REC registry. Step-4: Creation and Issuance of REC Referring to the generation report submitted by SLDC, the REC registry will create and issue appropriate number of REC to the concerned RE generator. Step-5: REC sale by REC Generator Once the RECs are issued to the RE generator, it can be sold to any buyer either by way of a bilateral agreement or through an aggregator. Further, sale/purchase of REC amongst various RE generators/obligated entities/voluntary buyer can be undertaken through REC exchange platform to be established in accordance with the regulation to be formulated by CERC for this purpose. Step-6: Surrender/Redeeming of RECs The obligated entities can procure the REC directly from RE generator or from the market and need to surrender the REC to the REC Registry to meet their RPO obligation. REC registry shall maintain record of REC issued and REC received for redemption on regular basis. Step-7: Compliance Reporting Page 43 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 39

44 REC registry will prepare a state specific and obligated entity specific REC procurement report on the basis of the RECs redeemed by each of the obligated entities and send it to the state level monitoring committee for further action. Procedure for getting REC Irrespective of the mode of sale of power adopted by the RE generator, It will have to perform following specific task Register with SLDC, Monitoring Committee and REC registry Enter into contract for sale of electricity and REC Enter into tripartite agreement with SLDC / Distribution company, monitoring committee for energy accounting and provide requisite information to monitoring committee from time to time. Notifying monitoring committee about nature of the contract. Sell REC during its life time (730days) Designated Agency for REC in Tamilnadu and RPO status Tamilnadu Electricity Regulatory Commission (TNERC) has designated to Tamil Nadu Transmission Corporation Limited (TANTRANSCO), State Load Despatch Centre (SLDC) as State Nodal Agency to undertake function as envisaged in Central Electricity Regulatory Commission (CERC) (Terms and Conditions for Recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation). TANTRANSCO has issued the order to purchase the power from Renewable Sources to meet RPO in the area of Distribution by licensee, Captive Power Producer and Open access consumers. 4.8 STATE LEVEL POLICY / INITIATIVES Tamil Nadu Electricity Regulatory Commission (TNERC) Tamil Nadu Electricity Regulatory Commission formulated a provisional tariff order dated for grid interactive solar power plants, by which the Levellised tariff payable was Rs per unit & capital Cost was 7Cr/MW in Tamil Nadu. 4.9 Present status of Indian Government initiatives to promote Solar Projects can be summarised as follows: Page 44 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 40

45 MNRE has already short-listed small solar Projects below 2 MW per project having capacity of 100 MW, which are likely to be commissioned before Grid connected solar power projects under Phase 1 of JNNSM having capacity of 1000 MW are to be commissioned before The Indian government is expected to levy a clean energy tax of Rs 50 per tonne on domestically mined or imported coal in order to pay for a roll out of renewable energy technologies. Government initiative will redefine India s position in World solar market after Thus, there are competitive and attractive schemes and policies available both at the Central and State level, which would be a boon to the proposed solar PV project of NLC at Tamilnadu. Page 45 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 41

46 CHAPTER 5 SOLAR PHOTOVOLTAIC POWER GENERATION TECHNOLOGY 5.1 ENERGY OPTIONS The source of energy to produce electrical power can be divided into two major streams. Use of conventional energy sources derived from fossil fuels such as coal, petroleum products and nuclear fuels is one stream. Adoption of non-conventional energy sources such as biomass, hydro, wind, solar, wave, geothermal and ocean thermal will be the other option. The conventional energy sources are non-renewable, gets depleted year after year and also adding pollution to earth. The renewable energy is available in abundance and offers less polluting environment. Among the non-conventional energy sources, use of bio mass fuel requires conversion to steam for power generation. The other forms of non conventional energies such as solar thermal, geo thermal and ocean thermal also adopt conversion of thermal energy in to electric power resulting in substantial thermal rejection to atmosphere. Only hydro, wind, wave and solar photovoltaic energy conversion involve direct conversion of the energy available in nature to electric power. Hence, these are termed as green energy. 5.2 SOLAR ENERGY Solar power is derived from the incident rays of sun on earth surface. The energy brought by the sunrays has two components, namely thermal component and visible / invisible light spectrums. When the sunrays are concentrated and used to heat any other substance, it is called solar thermal conversion. Use of black body or concentrators to increase the sunray collection efficiency is normal practice. When the solar visible light spectrum is directly converted in to electric power, it is called photovoltaic (PV) power generation. Among various options to use the sunrays to produce power, solar PV and concentrated solar thermal power plant (CSP) are being setup in India 5.3 SOLAR THERMAL Solar thermal energy systems use the sun to supply heat, such as for solar water heating and in higher temperature system, it produces sufficient Page 46 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 42

47 energy to drive machines for power generation. There are number of solar thermal options available for deferent types of application. Concentrating solar thermal (CST) CST systems concentrate and collect solar energy. The concentrated solar energy generates high temperature heat for use in an otherwise conventional thermal electricity generation plant. There are three main components of a CST generating plant - the solar concentrator which is a reflection or diffraction system that collects and concentrates the energy from the sun, the solar energy receiver that absorbs the concentrated solar energy and converts it to useable heat to run the generation plant and electricity generating plant that uses the heat collected from the sun to produce electricity. A typical concentrated solar thermal power generation system is shown in Figure 5-1. Figure 5-1 Concentrated Solar thermal Power Plant CST systems that are under development are those based on a central receiver, parabolic trough, paraboidal dish and Fresnel systems. Since the Page 47 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 43

48 1980s, 354 MW of generating capacity in nine solar trough-based CST plant, collectively owned and operated by Solar Energy Generating Systems (SEGS) SEGS, have been in operation in the USA, but until recent times, there have been no new commercial plants built. One advantage of solar thermal systems is that during times of prolonged lack of solar energy input, an alternative heat source can be used to provide reliability of electrical output. Solar thermal power plants are mostly located in Spain and the USA, where there is significant government financial support for solar technology in the form of high incentives on investments are available. 5.4 SOLAR PHOTO VOLTAIC POWER WORKING PRINCIPLE Photovoltaic materials produce electrical power from sunlight and the basic component of photovoltaic power conversion is the solar cell. The history of photovoltaic materials goes back to 1839 when Edmund Becquerel discovered the photo galvanic effect: where electric currents were produced from light induced chemical reactions. However, it was not until 1954 that the first solar cell was developed with an efficiency of 6%. Solar cells found their first use in powering satellites; however, their use for terrestrial power production has been growing rapidly. Figure 5-2 shows details of a solar cell. Figure 5-2: Typical Solar Cell Page 48 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 44

49 The most common solar cell is a p-n junction, where the p-type (positive) and n-type (negative) materials is doped semiconductor(s) as shown in Figure 5-3. The p-n junction is a boundary in a semiconductor material where a region of electron depletion neighbors a region of electron surplus. Solar cells are most commonly fabricated from silicon; however, other materials such as cadmium and gallium may also be used. Silicon is a semiconductor material that is tetravalent, i.e. group IV of the periodic table. If silicon is doped with ions from a group III material it becomes an acceptor (p-type), when doped with a group V material it becomes a donator (n-type). The p-type material is said to have a surplus of holes (rather than a deficit of electrons). Figure 5-3 Doped silicon In order for a current to flow in the semiconductor material, electrons in the valence orbitals (which form the bonds between the atoms) must be promoted to a higher energy level so that they are capable of conduction. The energy required for this is achieved by the absorption of photons of light. The amount of energy required for a valence electron to jump to this higher energy level is known as the band gap energy, e.g. This is an intrinsic property of the material (e.g. crystalline silicon has band gap energy of Page 49 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 45

50 1.12 ev). The liberation of an electron from the valence band creates a corresponding vacancy in the valence band known as a hole. Electrons and holes are the charge carriers in the semiconductor material (i.e. the source of electrical current). In p-type materials the holes are the majority carriers, while in n-type materials electrons are the majority carriers. The silicon cell has metallic grids deposited on each side, which act as electrical contacts and allow electrons liberated by sunlight to flow: an electrical current will flow from the cell Under standard test conditions of 1000W/m 2 irradiance and a cell temperature of 25 C a good solar cell will generate a potential difference of 0.5V and supply a current of up to 5A. The output of a solar cell depends upon following factors: The properties of the semi-conductor material, The intensity of insolation, The cell temperature and the nature of the external loads the cell supplies. Combination of these factors gives rise to the characteristic operating curves, of generated current against the output voltage for the solar cell. typical curve is shown in Figure 5-4. Figure 5-4 Characteristic I-V curves for a solar cell A In Page 50 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 46

51 figure, Isc is the short-circuited output of the cell, while Voc is the open circuit voltage. The maximum power of the cell occurs at the maximum power point (the knee of the curve in figure) where voltage is Vmpp and the current is Impp. The quality of a cell is indicated by its fill factor (FF): FF = Vmpp Impp./ Isc Voc The closer the fill factor to 1 the better the quality of the PV cell. The power output of the solar cell is related to the incident solar radiation and the cell temperature. The power output will vary linearly with incident solar radiation (when kept at the same temperature): P max 25 = PSTC G/1000 where P max 25 is the power output at 25 C, PSTC the power output at standard test conditions (25 C and 1000W/m^2) and G the value of irradiance incidental on the module (W/m^2). Increasing temperature has a detrimental impact on the output of a solar cell: the hotter the cell operating temperature, the poorer the efficiency of the cell. Typically efficiency will drop off by around 0.4% per C increase in operating temperature. The photovoltaic cell produces DC power. The photovoltaic cells are connected electrically in series and parallel circuits to produce higher voltages and currents. The amount of current generated by a PV cell depends on its efficiency, its size-that is the surface area and the intensity of sunlight striking the surface. Photovoltaic module consists of several photovoltaic cells connected by circuits and sealed in an environmentally protective laminate, which forms the fundamental building blocks of the complete PV generating unit. Photovoltaic panel include more than one PV module assembled as pre-wired, field installable unit. Several PV panels mounted on a frame with or without tracking mechanism for following the sun s path are termed as PV Array or String. This is illustrated in Figure 5-5. Page 51 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 47

52 Figure 5-5 Photovoltaic cells, modules, panels and arrays The conversion of DC power to AC using converters, transmitting low voltage power from various sections of PV array / string to a central substation by Page 52 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 48

53 cables, stepping up the low voltage AC power to high tension power to suit the grid for interfacing, etc complete the power generation arrangement by solar photovoltaic system. A typical system configuration for grid interactive Solar PV power plant is shown in Figure 5-6. Figure 5-6 Grid interactive solar PV power plant 5.5 PROCESS OF MAKING SOLAR PV CELL/MODULE/ARRAY The solar PV cells are made from mono crystalline or poly crystalline or amorphous state silica or other materials. Generally the greater the energy efficiency of cell higher will be the production cost. To decrease cost and increase conversion efficiencies, newer materials are being developed and used. The entire process to make Crystalline PV, Concentrating PV, Thin film PV is explained in the Figure 5-7. Page 53 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 49

54 Figure 5-7 Solar Photovoltaic Technology Project & Business Development Page 54 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 50

55 The photovoltaic cell forms the basic technology product in the solar photovoltaic system of power generation. Bell Labs first developed photovoltaic cells in 1954 with an efficiency of 6%. Since then the race to produce highly efficient solar cell is pursued vigorously by many agencies in number of countries. Conventional photovoltaic device uses silicon semiconductor for the generation of electricity. Further researches have brought in high harvesting methods by combination of multiple semiconductor materials with different wavelength absorbing capabilities as shown in Figure 5-8. Figure 5-8 Solar Photovoltaic Cell Types Traditionally three different methods of making PV cells are in practice. Single crystal formation by growing pure crystalline ingot from a seed crystal drawn from the molten poly silicon. Wafer form by slicing from poly silicon block formed by casting of molten poly silicon. Thin film or amorphous deposit by vaporization and deposition of poly silicon material over glass or stainless steel substrate. The basic photovoltaic mono crystalline and multi crystalline cell manufacture are the dominant technologies in the market place. Manufacture of PV cell by thin film technology is an emerging one due to its cost advantage. The concentrated photovoltaic cell (CPV) is still in developmental stage in terms of commercialization. A brief review of all the technologies available is discussed hereunder. Page 55 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 51

56 5.5.1 Mono crystalline Silicon This is the most efficient technology to date. The PV cell is made from single crystal of silicon. In this technology the purified chunks of silicon are melt in a crystal growing furnace and then slowly solidified into a large cylindrical crystal. Individual round wafers are sawed out from this cylindrical crystal. This is the most expensive PV cell on account of stringent process control requirements. Research cells have reached an efficiency of 28 percent where as commercial cells have attained an efficiency as high as 18 percent. The below Figure 5-9 explain process of making ingot from raw material as silicon. Figure 5-9 Mono Crystalline Silicon Cell Manufacture Cast Poly or Multi crystalline Silicon solar cell Poly or Multi crystalline PV cells are manufactured by a comparatively cheaper technology than mono crystalline cells. In this technique, purified silicon chunks are melted in a furnace and slowly cooled in a rectangular mould. Small regions of single crystals crystallize to each other creating polycrystalline blocks of different grains and orientations. Though the cells are less expensive, efficiency is also less than mono crystal cells. While the research cells have approached 24 percent efficiency, the commercial cells have reached about 16 percent only. Page 56 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 52

57 5.5.3 Thin Film solar Cell Project & Business Development In Thin Film solar cell / module technology, very thin layers of a chosen semiconductor material (ranging from nanometer to several micrometers in thickness) are deposited on to either coated glass or stainless steel or a polymer. 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 micro crystalline silicon materials as tandem junction that have yielded higher efficiencies and have better stability features. With the deposition of a transparent micro crystalline silicon material in tandem over the amorphous silica cell, the efficiency of conversion of light in to electric power increases from 6% to 10% with negligible increase in manufacturing cost. A typical micro crystalline and amorphous silicon based tandem junction thin film manufacturing process is shown in Figure Figure 5-10 Typical Micro Crystalline Amorphous Silicon tandem junction Solar PV Cell Manufacturing Process Advantages of Thin Film technology: Page 57 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 53

58 Significant lower material cost per Wp Project & Business Development Faster manufacturing processes with less number of steps. Comparatively lower energy consumption processes Higher energy performance (Thin Film modules generate power even under diffused light and hence can generate more electricity per unit of installed power than crystalline silicon modules of similar power rating) Lightweight and flexible substrate. Disadvantages of Thin Film technology: Lower conversion efficiency on account of lower fill factor Uncertain long-term stability High capital costs due to increased number of supports and its foundations Scalability and control of film uniformity over large area designs Lower environmental compatibility in respect of CdTe and CIGS technologies Larger site requirement compared to other technologies After nearly two decades of technology development efforts, the share of the Thin Film solar cell technology, especially with micro amorphous silicon in tandem junction, has started going up. With the obvious advantages of low material cost per Watt, technology development efforts are focused on improvements in efficiency, deposition rates, yield levels and scalability of the processes involved. CdTe, CIGS and Micromorph (A-Si + μc-si) technologies are the main contenders in this area. While efficiency levels have been improved over small area depositions, best results in commercial scale operations are between 9 and 10% Comparison of the performances of thin film and crystalline wafer technology A typical comparison of performance of thin film and crystalline wafer solar cells is presented in Table 5 1, 5-2 and 5-3. Page 58 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 54

59 Table 5-1 Comparison between Thin Film and Crystalline technologies Technology Thin Film Crystalline Wafer Micro Amorpho Cadmiu Copper Amorphous Mono Multi crystalline silicon and amorphous us Silicon (a-si) m telluride (CdTe) Indium deselenid e CI(G)S Silicon and Multi Crystaline Crystall ine Crystalline silicon Silicon (μc-si a-si) and in (a-si/m-si) Tandem Junction. Cell efficiency at STC* Module efficiency 9-10% 5-7% 8-11% 7-11% 8% 16-19% 14-19% % 12-14% Area needed per kw** (for 12m 2 15m 2 11m 2 10m 2 12m 2 7m 2 8m 2 modules) *Standard Testing Conditions: 25 o C, light intensity of 1000 W/ m 2, air mass =1.5. ** kw = kilowatt. Solar PV products and arrays are rated by the power they generate at Standard Testing Conditions. Table 5-2 Performance comparison S. No Technology Energy Conversion Efficiency Advantages Disadvantages 1 Mono crystalline Photovoltaic 14%-19% Highly Efficient High cost, Crystals cylindrical shape 2 Multi crystalline photovoltaic 13% to 17% Less expensive, Less waste compared to Mono Crystalline Photovoltaic Lower Efficiency then single cell Page 59 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 55

60 3 Ribbon Silicon 14%-16% Less expensive, Less waste Lower Efficiency then single cell 4 Thin Film μc-si and a-si Tandem Junction 9%-10% Less silicon needed & slightly lower cost Lower Efficiency then single cell 5 Thin Film a Si 6%-8% Much less silicon needed & low cost Lowest efficiency of all silicon photovoltaic technologies Table 5-3 Cost comparison between crystalline and the Thin Film technologies Crystalline Technology Higher power to area ratio (Smaller array for same output) Higher cost of Technology Lower cost of Installation Requires installation in area not subject to shading (Able to operate in greater light range and with partial shading of the array. More suitable to temperate climate) It has wide scale familiarity in user groups as well as among producer Thin Film Technology Lower Power to area ratio (larger array same output) Lower cost of Technology Higher cost of Installation (array is larger, therefore more labour and material required for the installation Ability to perform well in extreme heat This technology is being started using recently by user group 5.6 SPECIFIC TECHNOLOGY GOALS & R& D ISSUES The specific technology goals and R&D issues identified by International Energy Agency (IEA) in their road map are detailed below:- Page 60 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 56

61 5.6.1 Crystalline Silicon Today, the vast majority of PV modules (85% to 90% of the global annual market) are based on wafer-based c-si. Crystalline silicon PV modules are expected to remain a dominant PV technology until at least 2020, with a forecasted market share of about 50% by that time (Energy Technology Perspectives 2008). This is due to their proven and reliable technology, long lifetimes, and abundant primary resources. The main challenge for modules is to improve the efficiency and effectiveness of resource consumption through materials reduction, improved cell concepts and automation of manufacturing. Current commercial single sc-si modules have a higher conversion efficiency of around 14 to 20%. c-si Their efficiency is expected to increase up to 23% by 2020 and up to 25% in the longer term. Multi-crystalline silicon modules have a more disordered atomic structure leading to lower efficiencies, but they are less expensive. Their efficiency is expected to increase up to 21% in the long term. The major R&D efforts required for crystalline solar cells are summarized in Table 5-4. Table 5-4 Technology goals and key R&D issues for crystalline Silicon Crystalline silicon technologies Efficiency targets in % (commercial modules) Industry manufacturing aspects Selected R&D areas technologies / 2050vv Single-crystalline: 21% Multi-crystalline: 17% Si consumption < 5 grams / Watt (g/w) New silicon materials and processing Cell contacts, emitters and passivation Single-crystalline: 23% Multi-crystalline: 19% Single-crystalline: 25% Multi-crystalline: 21% Si consumption < 3 g/w Si consumption < 2 g/w Improved device structures Productivity and cost optimization in production Wafer equivalent technologies New device structures with novel concepts Page 61 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 57

62 5.6.2 Thin films To reach higher efficiencies, thin amorphous and microcrystalline silicon cells have been combined to form micro morph cells (also called thin hybrid silicon cells). 14 In the area of II-VI semiconductor compounds, other thin film technologies have been developed, including Cadmium Telluride (CdTe) and Copper-Indium-Gallium-Diselenide (CIGS). The most promising R&D areas include improved device structures and substrates, large area deposition techniques, interconnection, roll-to-roll manufacturing and packaging. Table 5-5 summarizes the prospects and key R&D issues for thin film technologies until Table 5-5 Technology goals and key R&D issues for thin film technologies Thin film technologies Thin film μcsi& a-si: 10% Thin film μcsi& a-si: 12% Thin film μsi& a-si: 15% Efficiency targets in % (commercial modules) Industry manufacturing aspects Selected R&D areas Copper indium gallium (di)selenide (CIGS): 14% Cadmium-telluride (CdTe): 12% High rate deposition Roll-to-roll manufacturing Packaging Large area deposition processes Improved substrates and transparent conductive oxides CIGS: 15% Cd Te: 14% Simplified production processes Low cost packaging Management of toxic materials Improved cell structures Improved deposition techniques CIGS: 18% Cd Te: 15% Large highefficiency production units Availability of manufacturing materials Recycling of modules Advanced materials and concepts Page 62 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 58

63 5.7 EMERGING TECHNOLOGIES AND NOVEL CONCEPTS Emerging technologies Emerging PV technologies comprise advanced inorganic thin film technologies (e.g. Si, CIS) as well as organic solar cells. Another emerging PV technology is based on the concept of thermo-photovoltaics whereby a high efficiency PV cell is combined with a thermal radiation source. This concept could also become relevant for concentrating solar technologies in the future. Novel PV concepts Novel PV concepts aim at achieving ultra-high efficiency solar cells by developing active layers which best match the solar spectrum or which modify the incoming solar spectrum. Both approaches build on progress in nanotechnology and nano-materials. Concentrator Photovoltaic technologies (CPV) All PV technologies described so far are so-called flat-plate technologies, which use the naturally available sunlight. As an alternative, direct solar radiation can be concentrated by optical means and used in concentrator solar cell technologies. Concentrator photovoltaic (CPV) is a term used when sunlight is concentrated on to photovoltaic surfaces for the purpose of electrical power production. Solar concentrators are often mounted on a solar tracker in order to keep the focal point upon the cell as the sun moves across the sky. CPV Major Components are fresnel lens, Multi-Junction cells, Heat sink, Two axis tracker. The over 800x concentration is done with Fresnel lenses. The lens which is made of Acrylic or Glass concentrates the sunlight with high precision. The concentrated sunlight falls on a Multi-Junction solar cell, which converts it to Direct Current. Multi-Junction Solar Cells consist of various layers of semi-conductor material and together has an efficiency of over 40%. The cells have been engineered to have a very low temperature coefficient to be very effective under hot climates. These cells have been used predominantly for Space Satellites and are currently finding terrestrial applications in CPV. The concentrated sunlight can heat up this Multijunction cell and to keep the cell under operating conditions, we use passive Page 63 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 59

64 cooling with a heat sink. The heat sink dissipates the excess heat and keeps the CPV operating. A two axis tracker follows the sun continuously with high accuracy to allow concentration onto the small multi-junction solar cell. This helps produce a high output throughout the day. Compared to conventional flat panel solar cells, CPV is advantageous because the solar collector is less expensive than the equivalent area of solar cell, higher efficiency (>25%), high constant output and low temperature degradation, the CPV technology is presently moving from pilot facilities to commercial-scale applications and also no operating plant in India. Further R&D efforts are required in optical systems, module assembly, tracking systems, high-efficiency devices, manufacturing and installation. 5.8 SELECTED TECHNOLOGY FOR NLC S NEYVELI PROJECT From the above it may be seen that for large-scale power stations, highest efficiency silicon cell PV modules are the best choice. The flat panel Multi / Poly crystalline silicon PV cell technology is relatively mature technology with many years of operating experience in smaller sized installations. With current improvements in converter technology combined with sophisticated control features, grid connected large-scale PV power plants are becoming a reality World over. The flat panel Multi / Poly crystalline silicon PV cell technology is considered as the first choice for this project in view of the scale of economics of the installation and the level of expertise available in operating and maintaining such power plant in India. The micro crystalline silicon with amorphous silicon based thin film in tandem junction having around 10% conversion efficiency appears to be the best second choice for this project. However, the cost advantage of about 20% in the supply price of this thin film solar PV cell over crystalline cell may get nullified by almost 15% increase in the land area requirement and expenses associated with additional support structures and civil works. Other thin film technologies such as standard ai-si, cd-te or Ci-Gs and CPV are not considered suitable for this project on account of limitation on land Page 64 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 60

65 area and lack of proven performance records of some of the newer technologies with rare materials. Hence, crystalline silicon and tandem junction thin film PV cells are considered as the technology options for the proposed project in Tamilnadu. Page 65 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 61

66 CHAPTER 6 Project & Business Development SOLAR PV POWER PLANT AT NEYVELI, TAMILNADU 6.1 PLANT SITE The main ingredient for the generation of electricity by solar PV module is sunlight. Hence, large open plains with even terrain, nominal vegetation and structure free area are ideal for solar power plants. Further, the site should have clear sunlight for most part of the year for maximum generation of electrical energy, which means rain shadow regions and dry lands. As solar irradiation is affected by altitude, wind speeds, atmospheric humidity and temperature, measurements are to be made and analyzed to fix locations with maximum annual average solar irradiation. Connectivity to public utility for power evacuation is mandatory for grid-connected systems. As no transport of fuel is involved, remote locations are acceptable. 6.2 NEYVELI The proposed plant site at Neyveli Lignite Corporation, Neyveli in Cuddalore district is situated at about 40 KM from Cuddalore, Tamil Nadu, and India. As may be seen from the south India map, Cuddalore district is situated in the upper middle part of Tamil Nadu, adjoining eastern coast. It is bound by Villupuram district on the northern side, Bay of Bengal on the eastern side, Nagapattinam and Ariyalur districts on the southern side and Perambalur district on the western side. Major part of Cuddalore district is combination of wet and dry land mass largely dependent on Then Pennai river and number of lakes for cultivating rice, sugar cane, cashew nut, tapioca and other cash crops. However, many areas, away from river and lakes along the state highways towards south are semi dry lands, which are predominantly used for cultivating cashew, groundnut and other dry land crops. Further, the soil is red and loose, good for horticulture and low root tree cultivation. The district receives annual rain fall of about 950mm. Number of small and medium lakes and ponds have been formed in the non river fed dry areas to collect rain water and serve as water source for local areas. The major portion of the district, except in eastern side, is reasonably away from sea coast. However cyclones and depressions are common in Cuddalore coast. Altitude is even for fairly large areas throughout the district. Page 66 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 62

67 Area around Neyveli up to Cuddalore coast receives good amount of rainfall and westerly winds. NLC has a lignite mine and thermal power plants in vast area west of National High way NH 45C connecting Thindivanam and Kumbakonam. The Neyveli region having Latitude of 11.6 N and Longitude of 79.5 E is reported to receive fair amount of sunshine throughout the year and temperatures are in the range of 20 to 35 degree C. The relative humidity is in the range of 66% to 76%. The area around Neyveli receives wind from eastern coast, average wind velocity ranging from 2.5 to 5.6 m/sec. NLC with a view to expand their social commitment to generate green energy, as well as to take up renewable energy based activities had identified part of land around the existing township near the old airport. On account of presence of teak farms, which are part of NLC s initiative to increase green cover around the plant as well as natural drains formed to drain rainwater from the town ship, the selected land for solar PV power plant becomes four blocks. 6.3 SITE TECHNICAL DUE DILIGENCE The proposed plant site in Neyveli Township area, Cuddalore district is situated at about 200 KM from Chennai, Tamilnadu. Totally Four sites were identified by NLC measuring 250 acres in between NLC Arch gate to NLC Block 2, 75 Acres adjacent to the existing 10 MW Solar Power Plant, 200 acres in between NLC Block-2 to NLC Block-7 and 125 acres adjacent to Neyveli New Thermal Power Project, totaling 650 Acres, had been selected as the location for the proposed solar PV power project. 6.4 PROPOSED SITE The proposed plant site will have access from National High way NH45C through the main road to NLC town ship. NLC have selected i) First site land near to corporate office, CTO building and Arch gate. The selected land measures about 308 acres out of which 250 acres in three blocks with existing township road bifurcating the three blocks was considered for 50MW solar power plant as enclosed in the figure 6-1. All the blocks are fairly level. Road approach to three blocks of solar power plant will be formed from existing township roads. Page 67 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 63

68 ii) iii) iv) Project & Business Development Second site land on the western side of existing airport run way for locating solar PV power plant considering the statutory clearance of about 100 meters needed for operating the airport, if it becomes functional at future. The selected land measures about 95 out of which 75 acres in two blocks with existing natural drains bifurcate the total land area was considered for 15MW solar power plant as enclosed in the figure 6-2. Except the sides of part of existing deep natural canals, other areas are fairly level. Road approach to two blocks of solar power plant will be formed from existing airport road and township road. Third site land in between block-2 and block-7 along the Indira Gandhi road. The selected land measures about 220 acres out of which 200 acres near to block-4, 5, 6 in two blocks with existing township road bifurcating the two blocks was considered for 40MW solar power plant as enclosed in the figure 6-3. All the blocks are fairly level. Road approach to two blocks of solar power plant will be formed from existing township roads. Fourth site land at Kolliruppu area near to Neyveli New Thermal Power Plant (NNTPP). The selected land measures about 145 acres out of which 125 acres in one block with existing natural drain on one side & Roads on the other side was considered for 25MW solar power plant as enclosed in the figure 6-4. Except some parts of the block, other areas are fairly level. Road approach to the block of solar power plant will be formed from existing NNTPP roads. The nearest railway track, Cuddalore Bangalore broad gauge line is passing at a distance of 8 KM from the site. Cuddalore is the nearest port at a distance of 40 KM. However, solar PV power plant does not involve large or heavy machinery and hence connectivity through rail or ship is not mandatory. In regard to electric power sub stations, the area selected by NLC for the solar power plant does not have any substation located or any over head line passing through. Township substation SS1 of NLC is situated in Block 24 of town ship and is about 3.5 KM from the proposed solar power plant site. This substation is connected to substation SS2 and thermal power station TPS1 there by connected to National / State power grids. Page 68 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 64

69 The soil at the plant site is reported to be loose on top and hard at depth below 2 meters. Water table is reported to be at a depth of 100 meters even in rainy season due to open cast mine nearby. Quality of ground water is reported to be potable suitable for drinking, farming and construction. The proposed solar power plant site topography is generally a flat terrain. No built up structure is present in the close proximity of the site identified for the solar power plant. Figure 6-1 Proposed first Site for-50mw SPP Figure 6-2 Proposed Second Site for-15mw SPP Page 69 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 65

70 Figure 6-3 Proposed third Site for-40mw SPP Figure 6-4 Proposed fourth Site for-25mw SPP Page 70 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 66

71 6.5 SOLAR RESOURCES AT NEYVELI Solar energy as received at the surface of earth is relatively diffused and is reliable. It is continuously variable on a daily basis with seasonal variation throughout the year and may be intermittent, influenced heavily by metrological conditions. The sunshine hours available at site has great influence on the solar radiation received at ground level, which in turn decides the amount of power generated by the solar PV power plant. A typical diagram showing the incident of solar radiation or insolation in a day on a 24-hour basis is given in Figure 6 5 on the next page. The daylight / sunshine hours varies seasonally and is represented graphically in Figure 6 6 on next page. Path of sun also varies with season, whether it is in northern hemisphere or in southern hemisphere. This is pictorially represented for Neyveli in Figure 6 7 on the next page. It may be noted that these data are site specific and vary significantly depending on the latitude, longitude and elevation. The sunshine period of nearly 12 hours is being observed from the graph as given in Figure 6-6 for Neyveli. Figure 6-5 Daily Solar Insolation Pattern Source: NASA Langley Research Centre Page 71 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 67

72 Figure 6-6 Seasonal Day light / Sunshine Hours at neyveli Figure 6-7 Path of Sun at Neyveli over the year Source: Gaisma.com Page 72 of 142 Feasibility Report for 130MW Grid Interactive Solar PV Power Plant at Neyveli Page 68