Organised by: CSP Market Guide: India 2012-13 1. National Solar Mission 2. Regional Solar Policies 3. Indian solar developments 2012 timeline 4. Hybridization in India 5. Godwari Plant Details www.csptoday.com/india In association with: CSP Today India 2013 Prove the ROI of your CSP business to win more funding and market share in India CSP Today are pleased to present you with the CSP India Market Guide 2012-13, in conjunction with the exciting launch of the CSP Today India 2013, taking place in Delhi in March 2013. CSP Today India 2013 is the leading CSP event in India - now in its fourth year, this 2 day summit will tackle your most critical challenges and road map your CSP business to market dominance. Hear from international and local developers, EPCs, technology providers, financial and government institutions at the most prestigious Indian CSP conference! This guide details the national and local solar policies currently in place in India, a timeline of CSP developments in 2012 and a look at hybridization. Plus - get exclusive plant data from our CSP Tracker on one Indian project
SECTION 1: National Solar Mission The National Solar Mission is a major initiative of the Government of India and State Governments to promote ecologically sustainable growth while addressing India s energy security challenge. It will also constitute a major contribution by India to the global effort to meet the challenges of climate change. In launching India s National Action Plan on Climate Change on June 30, 2008, the Prime Minister of India, Dr. Manmohan Singh stated: Our vision is to make India s economic development energy - efficient. Over a period of time, we must pioneer a graduated shift from economic activity based on fossil fuels to one based on non - fossil fuels and from reliance on non - renewable and depleting sources of energy to renewable sources of energy. In this strategy, the sun occupies centre-stage, as it should, being literally the original source of all energy. We will pool our scientific, technical and managerial talents, with sufficient financial resources, to develop solar energy as a source of abundant energy to power our economy and to transform the lives of our people. Our success in this endeavour will change the face of India. It could also enable India to help change the destinies of people around the world. The National Action Plan on Climate Change also points out: India is a tropical country, where sunshine is available for longer hours per day and in great intensity. Solar energy, therefore, has great potential as future energy source. It also has the advantage of permitting the decentralized distribution of energy, thereby empowering people at the grassroots level. Based on this vision a National Solar Mission is being launched under the brand name Solar India. The objective of the National Solar Mission is to establish India as a global leader in solar energy, by creating the policy conditions for its diffusion across the country as quickly as possible. The Mission will adopt a 3-phase approach, spanning the remaining period of the 11th Plan and first year of the 12th Plan (up to 2012-13) as Phase 1, the remaining 4 years of the 12th Plan (2013-17) as Phase 2 and the 13th Plan (2017-22) as Phase 3. At the end of each plan, and mid-term during the 12th and 13th Plans, there will be an evaluation of progress, review of capacity and targets for subsequent phases, based on emerging cost and technology trends, both domestic and global. The aim would be to protect Government from subsidy exposure in case expected cost reduction does not materialize or is more rapid than expected. The immediate aim of the Mission is to focus on setting up an enabling environment for solar technology penetration in the country both at a centralized and decentralized level. The first phase (up to 2013) will focus on capturing of the lowhanging options in solar thermal; on promoting off-grid systems to serve populations without access to commercial energy and modest capacity addition in grid-based systems. In the second phase, after taking into account the experience of the initial years, capacity will be aggressively ramped up to create conditions for up scaled and competitive solar energy penetration in the country. To achieve this, the Mission targets are: To create an enabling policy framework for the deployment of 20,000 MW of solar power by 2022. 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 10,000MW 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 gridcompetitive solar power. 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 2022. To achieve 15 million sq. meters solar thermal collector area by 2017 and 20 million by 2022. To deploy 20 million solar lighting systems for rural areas by 2022. CSP Market Guide: India 2012-13 www.csptoday.com/india 2
SECTION 2: Regional Solar Policies Gujarat State Solar Energy Policy Gujarat s potential for concentrated solar power with water availability stands at 345.71 GW. The current Gujarat Solar Energy 2009 policy was published in January 2009 and is valid until 2014. It aimed originally at 500 MW of Solar Power generating Projects (SPG) to be deployed with a minimum of 5 MW per project of (irrespective of PV and CSP). Given the interest from a large number of developers the government allocated projects worth 935 MW for both CSP and PV. This is the only policy in India with a fixed Feed-in Tariff, and working on a first-come-first-served basis [13]. The tariff is set at INR 14/kWh for the first 12 years and INR 7 for the next 13 years. Rajasthan State Policy Rajasthan has published its Rajasthan Solar Energy Policy 2011 in April 2011. It targets a 10 to 12 GW of solar power installed within the next 10 to 12 years. The majority of this new capacity shall be installed under the JNNSM, but the state will also directly procure a maximum of 200 MW until 2013 (Phase-1) and an additional 400 MW from 2013 to 2017 (Phase-2) through a competitive bidding process. The capacity will be equally distributed between CSP and PV. Requested project capacities range from 5 to 10 MW for PV and 5 to 50 MW for CSP. Karnataka Solar Policy Karnataka announced its solar policy in July 2011 and targets 350 MW of projects by 2016. The state has tendered 80 MW worth of bids. The size of the Current Tariffs for Allocated CSP and PV Plants in India individual projects is limited from 5 MW to 10 MW for CSP. The policy has no domestic content requirement. The original capacity to be allocated in the first phase was 30 MW of CSP and 50 MW of solar PV, but as bids for only 20 MW (2x10 MW) of CSP capacity were received, the excess 10 MW was allocated to solar PV. The CSP projects must be commissioned within 30 months of signing the PPA and solar PV projects will get a period of 18 months for commissioning. Andhra Pradesh State Solar Policy (APSSP) 2012 A recent announcement from Andhra Pradesh State on enacting a solar credit policy could lead to solar boom within the State. The enactment of the policy does not offer feed-in tariffs, but includes exemptions from charges including transmission and wheeling, cross subsidy surcharges and electricity duty, as well as refunds on value added taxes, stamp duties and registration charges for purchases of land. This will now mean 100% banking of energy from January through December of a given year, though it does not allow for banking of energy on the same day. Developers will be charged 2% of the banked energy. This solar mode, if proven successful could be used as a blueprint for future States looking to incorporate solar energy in their energy mix. Solar Program Allocation MW CSP Tariff (Rs/ kwh) PPA Period National Solar Mission 20,000 15.31 25 years Rajasthan Solar Program 12,000 1.95 25 years Gujarat Solar Energy Policy 935 12.32 14.0 7.0 EXCLUSIVE EXCERPT from CSP Today Markets Report 2012-2013 25 years From the 1st 12 years From 13 25 years Maharashtra - 15.24 25 years Jharkhand - 13.12 25 years Madhya Pradesh - 11.26 25 years Karnataka 350 11.35 25 years CSP Market Guide: India 2012-13 www.csptoday.com/india 3
SECTION 3: Indian solar developments 2012 timeline India s Finance Minister, Dr. Pranab Mukherjee, declared that solar thermal plants and equipment in India will now be exempt from import duty. Reliance Power get approval by the US Exim Bank approves for a $80 million direct loan to fund acquisition of solar power technology from American companies. An Indian delegation led by Mr. Ashvini Kumar, General Director for Solar Thermal and PV Energy of the New and Renewable Energy Minister of India visits Plataforma Solar de Almeria (PSA) in Spain, the main CSP research facility in the world. The delegation comprised of India s Government and Asian Development Bank members. The Asian Development Bank (ADB) announce they will lend Reliance Power $103 million to help finance a 100-MW CSP plant that is to be built adjacent to the 40-MW Dahanu Lanco select the Spanish CSP engineering company, to provide engineering supervision and consulting for the Diwakar and KVK CSP plants located in Rajasthan. None of the 500MW of CSP projects through the JNNSM have been completed and connected to the grid. While most of the PV projects under the Migration scheme, Batch 1 of Phase 1, and the RPSSGP have been commissioned, none of the 500MW of CSP projects through the JNNSM have been completed and connected to the grid. Each plant will be 100 MW and situated next to each other with thermal storage each one and 290 parabolic trough loops. Both plants solar fields are due to be completed by January 2013. Andhra Pradesh announces solar policy using Renewable Energy Certificate (REC) mechanism. The programme introduces some incentives relevant to project development which could lead to a solar boom in the State. A joint report on solar thermal power from the Council on Energy, Environment and Water and the Natural Resources Defense Council makes the following recommendations: 1. The Indian government should maintain a domestic content requirement or consider other support mechanisms such as non-discriminatory equipment production subsidies for Phase 2; foster R&D collaboration and innovation to encourage domestic production and cost reductions and March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 Siemens win an order to supply 17,000 solar receivers for a 50MW a CSP project in India Project developer Reliance awards Areva a contract to build the two 125 MW CSP plants in Rajasthan, using Compact Linear Fresnel Reflector (CLFR) technology. Reliance s Fresnel CSP plant is scheduled to come online in May 2013, the first phase of the project is already under construction. solar photovoltaicin Rajastha. This is the first CSP project financed by the ADB, as and will be one of India s largest solar power projects. Each plant will be 100 MW and situated next to each other with thermal storage each one and 290 parabolic trough loops. Both plants solar fields are due to be completed by January 2013. The date for commissioning of CSP projects is still far and therefore, I wouldn t conclude that developers are behind in completing their CSP projects. However, some of them have asked for extension of time mainly because of delay in availability of heat transfer fluid, Tarun Kapoor, Joint Secretary of India s Ministry of New and Renewable Energy (MNRE), tells CSP Today. $1.9 million order to Rockwell Automation for a 50 MW concentrating solar power (CSP) plant in India is awarded by Lauren-Jyoti, a joint venture between Lauren Engineers and Constructors - a U.S.-based engineering, procurement and construction company - and Jyoti Power Structures, an Indian counterpart Industry opinion generally agrees that the success of the REC mechanism is dependent on the enforcement of Renewable Purchase Obligations (RPO). consider employing support measures such as production subsidies to encourage CSP manufacturers to establish facilities in India. 2. MNRE should incentivize the adoption of storage technologies in CSP plants and evaluate mechanisms to spur storage-enabled generation. 3. By providing incentives like tariff premiums, MNRE should encourage water-efficient technologies in CSP plants. CSP Market Guide: India 2012-13 www.csptoday.com/india 4
SECTION 4: Hybridization in India India makes a solar hybrid comeback Amid India s ongoing struggle with domestic coal shortage that has led some power producers to curtail operations and others to start importing coal, the country s MNRE has rolled out a pilot program that will take CSP hybridization to another level. Will this help ramp up the much needed power supply? By Heba Hashem In the fiscal year ending March 2012, Tata Power, India s largest private power producer, had imported 5.5 million tons of coal from Australia and Indonesia and is now eyeing more overseas mines as it tries to secure fuel supplies. Similarly, Coal India recently declared it could only supply 60 percent of its requirement and would not be able to meet its mandatory 80 percent commitment; a dilemma that prompted the statecontrolled mining company to consider imports. As a result, power deficits in the southern part of India rose to as high as 4,350MW in May, while the north had a deficit of 3,000MW. In addition, nearly 400 million people, about one-third of India s population, have no electricity at all. An integrated solution The situation, however, indicates huge potential for CSP hybridization, as upgrading existing fuel-fired plants to ISCC systems could boost steam production and consequently electrical output at a relatively low extra cost. Not only can CSP be easily integrated into conventional fossil-fired thermal power plants, but it could also be combined with gas-fired wind turbines or biomass. thermal storage capacity also extends CSP s operational range. Moreover, by taking advantage of the existing infrastructure associated with the development of a conventional thermal power plant such as site access, power transmission links and a steam turbine power island the economics of the CSP component become significantly enhanced. As with any solar installation, DNI should be as high as possible and cooling methods should be taken into consideration. Many locations in India are known to have high levels of direct normal insolation, while dry cooling could be opted for, as carried out with Algeria s Hassi R Mel ISCC plant. Rajasthan in particular where a 100MW ISCC project with a solar yield of 35MW was proposed more than two decades ago but remains at the bidding stage has the highest solar irradiation in the country of around 5.5-6.5kWh/m² per day and an average DNI of 2200kWh/m² per year. The state also has stretches of government-owned wasteland that are barren and sparsely populated. Lessons could be learnt from China s Hanas New Energy Group, which is building Asia s first ISCC station in Yanchi with a goal of 92.5MW for completion by October 2013, or from Italy s Enel, which is constructing the 1.5MW Trebois CSPbiomass bi-generation plant to continuously produce electricity for the city of Rome. India s Ministry of New and Renewable Energy (MNRE) is already setting up an authority to promote and execute biomass-based power projects on the lines of Solar Energy Corporation of India (SECI). We are focusing to promote biomass-based power generation in the country. For this, the Ministry is planning to set up a company for biomass energy, same as we set up SECI last year, said Tarun Kapoor, joint secretary of the MNRE. According to MNRE data, biomass availability in India is estimated at about 500 million tons per year, while surplus biomass is estimated at about 120 150 million tons per year, corresponding to a potential of about 18,000MW of power generation. Made for India? Considering that peak electricity demand in India has been far greater during recent summers than peak winter demand, and that CSP delivers its maximum output during these peak periods, ISCC stations would be ideal for the country s changing power demand characteristics. The possibility of adding CSP Market Guide: India 2012-13 www.csptoday.com/india 5
There is tremendous potential for CSP hybridization in India. One could install a small capacity CSP plant near the conventional coal-based thermal power plants as capacity addition mainly for peak load requirements, or one could add conventional fuel-based capacity to a CSP thermal plant as backup for 24 x 7 operations and also during cloudy weather, Hiro Chandwani, CEO and founder of Hiro Energy-Tech, tells CSP Today. He adds that great potential also lies in designing a hybrid plant with another renewable source like wind, tidal or wave energy for 24 x 7 supply of power, which is not possible from individual sources alone. This makes ISCC ideal for industrial applications that need uninterrupted power. The only challenge would be the possibility of future scarcity and higher costs of coal, Chandwani notes. Hybrid program takes off The reality of falling PV prices in the international market cannot be ignored; having reversed the interest of some developers for investing in CSP, while the cost-competitive bidding route followed by the Indian government for awarding solar projects has also limited the capacity allocation for CSP systems in Phase Two of the National Solar Mission (NSM). However, the MNRE recently announced a separate CSP hybrid program through which it will support the development of four hybrid pilot projects: the first, planned for Rajasthan, will be a CSP plant integrating hybrid cooling, with the objective of reducing water consumption; the second involves a CSP plant with steam temperature above 500 Cº; the third will be a CSP plant with 10 or more hours of solar thermal salt storage to achieve round the clock operation; and the fourth will comprise a CSP plant with 30% natural gas support, which is likely to be in the form of an ISCC. The capacity of each project will be decided based on land availability and the commitment by the respective state government. Plant capacity may change from 20MW to 50MW depending upon the land size made available by each state, explained a senior adviser on the Indian solar power industry, who preferred to remain anonymous. Commenting on the current coal deficits, he stressed that India has huge coal reserves which need to be explored. The ongoing reforms and infrastructure development in the coal sector will address the present crises. Demonstration projects in the upcoming CSP hybrid program will be site-specific and located one each in the different states, including Rajasthan, Gujarat, Tamil Nadu, and Andhra Pradesh. Most importantly, the government will be facilitating the allotment of land, water resources, grid interface and connectivity, geotechnical reports, environment and forest clearances, and Power Purchase Agreements (PPA) with distribution licensees. Projects are expected to be evaluated and selected through a transparent and competitive bidding process under the guidelines of the MNRE and the Renewal Fuel Standard Program. At present, four ISCC plants are operational worldwide: the 150MW Hassi R Mel in Algeria from which 25MW comes from CSP; the 470MW Ain Beni Matar in Morocco where 20MW is provided by CSP; the 140MW Kuraymat in Egypt from which 40MW is generated through CSP; and the US s first hybrid solar thermal facility the Martin Next Generation Solar Energy Centre in Florida that has a 75MW CSP capacity. China, Mexico and Iran are also constructing ISCC plants, while Turkey is constructing the world s first Integrated Renewables Combined-Cycle plant in Karaman. The 530MW Dervish project will feature a General Electric combined-cycle gas turbine fed with 50MW of solar-generated steam and 22MW of wind turbines, scheduled for completion by 2015. Until recently, ISCC technology was not formally recognised under the NSM, and thus related projects could not technically be taken up under the framework. But with the introduction of the new solar-thermal hybrid program that comes under the MNRE s energy strategy for 2011-2017 and will involve interaction with the Ministry of Petroleum and Natural Gas, the picture is about to change. For more CSP Today articles visit www.csptoday.com CSP Market Guide: India 2012-13 www.csptoday.com/india 6
SECTION 5: Godwari Plant Details Godwari Plant Current Status: Construction Land Area (acres): 400 Gross Capacity: 50.00 Developers: HIRA Industries Technology: Parabolic Trough EPC: Lauren Jyoti Plant Technology Gross Capacity: 50.00 Net Capacity: 50.00 MWe or MWth: MWe Technology: Parabolic Trough Application: Solar Electricity Back-up fuel: None Heat Transfer Fluid (HTF): Synthetic Oil Net Annual Production - Expected (GWh): 120 Solar Field Inlet Temperature (ºC): 293 Solar Field Outlet Temperature (ºC): 390 Cooling: Wet Country: India State/Region: Rajasthan Latitude: 27.603611 Longitude: 72.235833 Solar Field Aperture Area: 392,400m 2 Land Area (acres): 400 Companies involved Developers: HIRA Industries Developers (Ownership Notes): Godawari Green Energy Ltd (100%) EPC: Lauren Jyoti EXCLUSIVE DATA from the CSP Today Global Tracker EPC (notes): Joint Venture of Lauren Engineers and Constructors and Jyoti Power Structures and includes the design, procurement and construction Utility (Off-taker) 1: NTPC Vidyut Vyapar Nigam Limited (NVVN) Utility 1 PPA Currency: INR Utility 1 PPA Amount (per MWh): 12,240 If you found this guide useful and want to find out more on the future of CSP in India, take a look at CSP Today India 2013. The conference will take place in March - to see the full agenda, speaker list and more please visit: www.csptoday.com/india CSP Market Guide: India 2012-13 www.csptoday.com/india 7