STATKRAFT BLP SOLAR SOLUTIONS. CII GREEN POWER CONFERENCE, CHENNAI

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1 STATKRAFT BLP SOLAR SOLUTIONS. CII GREEN POWER CONFERENCE, CHENNAI

2 About SBSS: Statkraft BLP in India a confluence of global and local Statkraft BLP Solar Solutions (SBSS) began its journey in November It was created as a joint venture between Statkraft and Bharat Light and Power (BLP) to provide solar solutions to Commercial & Industrial (C&I) customers in India. Statkraft is a Norwegian State-owned utility. It is the largest renewable operator in Europe. BLP is a leading Indian renewable utility, owning and operating wind and solar assets. Over MW of assets Over 180 MW of assets 5.75 billion in revenues 3,800 employees in 20 countries Orion - 24x7 platform for remote operation for utilities 2

3 About SBSS: Statkraft in India Apart from being a part of Statkraft BLP, Statkraft owns and operates 300 MW of hydro assets in India and functions as a power trader. Statkraft International Hydro Statkraft Markets Statkraft International Hydro operates the 109 MW Malana and 192 MW Allain Duhangan hydro plants in Himachal Pradesh, since Dugar Hydro Private Limited (a JV between Tata Power and Statkraft Holding Singapore) is developing the 449 MW hydro project in Himachal Pradesh. Statkraft Markets India was established in It has a Category-I trading license. Statkraft Markets provides short term trading solutions to Indian commercial and industrial clients. It also optimises and trades the power generated from the 300 MW hydro capacity in India. 3

4 Products for Industrial & Commercial Consumers Assured discount on DISCOM rates: - Discount on energy charges component - All the OA charges including tx charges & losses, cross subsidy etc. borne by Statkraft Fixed Price at Delivery Point: - Delivery point may be either the Regional Periphery or State Periphery - Tx Charges & losses, cross subsidy etc. beyond RP borne by consumer IEX Indexed Bilateral Contracts: - IEX used for price reference while scheduling/dispatch through Short-term OA - Floor and cap to hedge buyers and consumers against any price volatility Fixed Savings and Profit Sharing: - A fixed discount is assured on the energy charges of DISCOM - Additional benefits can be accrued through profit sharing beyond fixed discount - Power will be sourced opportunistically using IEX, bilateral, banking & wheeling etc. Optimize annual RPO costs or Voluntary Renewable Targets: - Wheeling and banking - I-RECs - Set-up Captive Solar or Solar PPAs 4

5 I-REC Standard: Empowering electricity purchasers The I-REC Standard is a set of standardized rules published describing how national REC systems should function. The I-REC Standard rules are published by a foundation and are stakeholder driven. I-RECs are a globally recognized method of claiming corporate/residential renewables consumption Malana Hydro project is the first Indian electricity generating facility to be registered with the I-REC system. 5

6 Solar Power Business Models: For large quantum, off-site power can be wheeled to facility Open access Group captive Investment: SBSS Equity investment: SBSS (74%), Client (26%) PPA tariff + Statutory charges and levies* = Landed tariff for client SBSS tariff + Statutory charges and levies** = Landed tariff for client SBSS will set up and operate the plant. Zero investment from clients. SBSS will set up and operate the plant. Government mandates min. 26% equity investment from clients. Power will be wheeled to client through grid. Wheeling and Banking agreement will be signed between SBSS and Discom for the client. Power will be wheeled to client through grid. Wheeling and Banking agreement will be signed between SBSS and Discom for the client. PPA signed between clients and SBSS. PPA signed between clients and SBSS. 6 * Applicable charges vary from state to state in India. Charges may include cross subsidy surcharge, additional surcharge, wheeling and transmission charges and losses. * Applicable charges vary from state to state in India. Cross subsidy surcharge, additional surcharge are exempted. Charges may include wheeling and transmission charges and losses.

7 Solar Power Business Models: Opex and capex solutions available for rooftop/in campus installations Rooftop Capex Rooftop Opex Investment and ownership: client Investment and ownership: SBSS SBSS will set up and hand over the plant. Clients will invest in and own the asset. SBSS will invest in and own the asset. Zero investment from the clients. Client may enter into a net-metering agreement with discom to send excess power to the grid. Client may enter into a net-metering agreement with discom to send excess power to the grid. Engineering Procurement and Contracting (EPC) agreement signed between client and SBSS. Power Purchase Agreement (PPA) signed between client and SBSS. Client has to pre-determined tariff for power produced as per PPA. 7

8 Potential savings: Rooftop/in campus installations Case study: 100 kwp solar rooftop installation A 100 kwp rooftop installation can produce anywhere between lakh units every year. 1,000, , year PPA - potential savings Total savings INR 1.30 crores 600, , , Savings Hyatt Regency, Pune 8

9 Challenges and Solutions: In-campus installations Challenges Solutions In several cases, accurate roof drawings or details are unavailable. As built design may vary from actual site construction. Need for manual measurements and independent assessments to simulate the structure and loading feasibility for solar plant. Working with / relocating obstructions such as sky lights, turbo vents, communication towers etc. Work around the obstructions in design array layout and maintain clearances. Relocate communication towers to shaded region / north side of the facility. Matching electricity load consumption to solar installation capacity Net metering and simulate the load curve and solar generation profile for understanding the requirement and install power managers. Safe and secure access to roof Create a safe scaffolding during construction and dedicated ladders with access control gates / tags 9

10 Challenges and Solutions: In-campus installations Challenges Solutions Several facilities have concerns regarding solar panel s impact on the building aesthetics Design the layout to include areas that the facility is comfortable with in other areas design the structures and system to be as aesthetically pleasing as possible Concerns on potential roof damage Try to use non-penetrative solutions. In case, penetrative structures are required, use washer and sealants to adequately seal the drilled areas Internal Total Harmonic Distortion (THD) levels Power analyser to be placed and measured to check inverter computability with internal grid. Safety and security of the asset Safety and security of the asset is within the control of the client 10

11 SBSS Business Models: What you gain by associating with us Partnership with a credible longterm player in the Indian renewable power market High quality execution with global HSE norms Financial strength to execute projects with no novation or third party investments Sound business ethics Honour and commitment for clients beyond contracts Adaptability large parents with ability to understand and adapt to changing regulations Technology advancements understand and take advantage of technology innovations Operations and maintenance the best maintenance standards to ensure optimal power production Forecasting and data analytics preventive maintenance for assets to reduce downtime One stop shop For long-term and short-term power, renewable and exchange power, financing options 11

12 Contact us Pratyush Thakur Chief Operating Officer, SBSS Please visit SBSS website for more details: Piyush Bhatheja Assistant Vice President, SBSS Siddhartha Paul Assistant Vice President, SBSS Shivapriya B Business Developer, SBSS Shivapriya.B@statkraftblp.com Visit SBSS at: Please visit Statkraft website for more details: Please visit BLP website for more details: www. blp.co.in Statkraft BLP Solar Solutions Private Limited G-9, Ground Floor, Gamma Block, Sigma Soft Tech Park 7, Whitefield, Main Road Varthur Kodi Bangalore , Karnataka, India 12