annexure -a 5mw fed solar energy (1)

DETAILED PROJECT REPORT

5.00 MW

Prepared forFED SOLAR PRIVATE LIMITED

Prepared by

CORPORATE KNOWLEDGE PARTNERS PVT.LTD.209, Kirti Sikhar Building, Janak puri Dist. Centre

New Delhi- 110058, INDIA

October 2010

CORPORATE KNOWLEDGE PARTNERS

Detailed Project Report – 5.00 MW Solar Power

2Corporate Knowledge Partners Pvt. Ltd.Corporate Knowledge Partners Pvt. Ltd.


TABLE OF CONTENTS

Chapter No. Particulars Page No.Salient Features 6

1 Introduction 91.1 Global Energy Scenario 101.2 Indian Energy Scenario 131.3 Renewable Energy in India 141.4 Jawaharlal Nehru National Solar Mission 16

2 Project Summary 182.1 Project Information 192.2 Solar Power Project 19

3 Economic Scene of Project Location – Growth andConstruction

21

3.1 About GURDASPUR 223.2 Economy of PANJAB 22

4 Power Scenario in PANJAB 244.1 Installed Capacity in PANJAB 254.2 Utilities in PANJAB 26

5 Need of the Project 285.1 Power Supply Arrangements 295.2 Need of Solar Project 295.3 Power Generation Scheme 305.4 Typical System Components of Grid Connect SPV

System 316 Survey and Investigation 36

6.1 Project Location 377 Power Potential Studies 38

7.1 Solar Radiation - India 397.2 Solar PV Modules Types 407.3 Comparison Between Crystalline & Thin Film Technology 447.4 Technology Selected for Project 457.5 Solar Radiation at Project Site 457.6 Solar Power Generation 46

8 Design of Power Plant Electrical & Mechanical Works 488.1 Project Design 498.2 Suitability of SPV Power plant unit to operate in parallel

with grid 508.3 Safety Regulations 51




Chapter No. Particulars Page No.9 Design Criteria 52

9.1 Solar Photovoltaic (SPV) Module 539.2 Module Mounting Structure 539.3 Balance of Systems 539.4 LT Power Interfacing Panel 559.5 Computer aided Data Acquisition System 559.6 Lightning & Over Voltage Protection 569.7 Earthling system 569.8 Energy Meter 579.9 Protective Relays 57

9.10 Power Evacuation Arrangement 5710 Construction Material – Requirement, Availability and

Suitability 5810.1 Materials 5910.2 Procurement Process 5910.3 Bills of Materials 5910.4 List of Spares 60

11 Construction Methodology and Equipment Planning 6111.1 Overview 6211.2 System Design Philosophy 6211.3 Operation Requirements 6311.4 Maintenance Requirements 6411.5 Preventive Maintenance (Specific Guidelines) 65

12 Construction Programme and Schedule 6712.1 Project Implementation Strategy 6812.2 Project Execution 6812.3 Progress Reporting 68

13 Project Organization 6913.1 Staff 7013.2 Training 70

14 Environmental and Ecological Aspects 7114.1 Environmental Impact 7214.2 Impact During Construction 7214.3 Impact During Operation 73

15 Cost Estimates 7415.1 Project Costing 75

16 Financial and Economic Evaluation 7616.1 Financial Analysis Assumptions 7716.2 Project Financials 7816.3 Sensitivity Analysis 79

17 Recommendations 80




ANNEXURES

Annexure No. ParticularsI Jawaharlal Nehru National solar missionII Mission Resolution by Ministry of New and Renewable EnergyIII Single Line Diagram of Power Supply SystemIV Location map of GURDASPURV Seismic Zone – Map of IndiaVI Photographs of the project siteVII RET Screen Simulation ModelVIII Array LayoutIX Technical Specification of the ModuleX Specification sheet Power Conditioning Unit (PCU)XI Single Line Diagram of ProjectXII Provisional Timeline of the projectXIII CERC guidelines for tariff calculation of SPV projectsXIV Project FinancialsXV




ABBREVATIONS

AC Alternating Currenta-Si Amorphous Silicon

CdTe Cadmium TellurideCEA Central Electricity Authorityc-Si Crystalline SiliconCIGS Cadmium Indium Gallium SelenideDC Direct CurrentDPR Detailed Project Report

GW Giga WattHSE Health, Safety and EnvironmentIREDA Indian Renewable Energy Development AuthorityKW Kilo WattkWp Kilo Watt peakkV Kilo Volt

MkWh Million Kilo Watt hourMWp Mega Watt peakMNRE Ministry of New and Renewable EnergyMPPT Maximum Power Point Tracking

O&M Operation & MaintenancePCU Power Conditioning UnitPLF Plant Load FactorPPA Power Purchase AgreementPV PhotovoltaicPWD Public Works DepartmentRE Renewable EnergyRES Renewable energy Sources : includes Small Hydro Project (SHP),

Biomass Gas(BG), Biomass Power (BP), Urban & Industrial wastePower(U&I), and Wind Energy.

RPS Renewable Purchase SpecificationSEB State Electricity BoardSERC State Electricity Regulatory CommissionsSPV Solar PhotovoltaicWp Watt Peak




SALIENT FEATURES

1. Location

State PunjabDistrict : GurdaspurTownName of Building : BatalaLatitude : 28o34’40”Longitude : 77o13’01”

2. Climate and Site Conditions

Elevation above MSL :Ambient Temperature :o Average Ambient :

242 Meter DelhiMax. 46ºC40ºC

o Minimum Ambient :Relative Humidity

2ºC

o Average Humidity : 65%o Peak Humidity :

Wind Load :90%As per IS 875

Seismic data : Asper IS 1893 (Zone IV)

3. Area available

Area available : 30 Acres

4. SPV Power Plant

Output : 5.00 MWp

No. of modules : 18200No. of modules in series : 100No. of parallel combination : 910No of AJBs : 200No of MJBs : 40No of PCUs : 20




Mounting : Fixed TypeSurface azimuth angle of

5. Technical details of a SPV Module

PV Module type :Make :Model :Physical Dimensionso Length with frame :

Mono CrystallineWEBSOL,KOLKATA

W 2300

1980 mm

o Width with frame :o Thickness :Electrical Parameter

997 mm43 mm

o Maximum Power Rating :o Current at peak power :o Voltage at peak power :o Short Circuit Current :o Open Circuit Voltage :Module Efficiency :

230-240 Wp7.84 A35.8 V8.4 A45.0 V19.3 %

6. Mounting Arrangement

PV Module : 180o

Tilt angle(slope) of PV Module : 28.0o

7. Inverter/ Power Conditioning Unit (PCU)

Number of units : 20

Rated Capacity : 250 kWpInput Voltage range : 880 V (Max.)Output Voltage : 400 V +/- 10 %Frequency : 50 HzEfficiency : 96.10 %

8. Grid Connection Details

Electrical parameters for interconnectiono Voltage : 11 kVo Phase : 3 Pho Frequency : 50 Hz

9. Annual Energy GenerationAnnual Energy : 8.33MU(Million KWH

Plant Load factor : 19 %




10. CDM Benifits

Estimated CER’s per annum : 7689 CER per AnnumCER Rate Considered : 12 Euro per CERExchange Rate : Rs 60.00 per EuroGrid Emission factor :CER Income per annum :

0.923 tonnes of CO2 per MWhRs. 55.36Lacs per annum

11. Financials

Estimated Cost (Rs. Crore) : 84.5Levelised Tariff (Rs/kWh) : 17.9IRR : 22%Payback Period : 10YearsDSCR : 1.62

12. Power Purchase Agreement

PSEB is willing to purchase the power generated subject to approval of tariff,scheduling of power and conditions regarding transmission wheeling, meteringand allied issues from PERC. The exportable surplus power from these units willbe thus transmitted and wheeled via the grid to PSEB account anddistributed to its consumers. The quantum of power is marginal and will beeasily absorbed into the grid.




Chapter - 1

INTRODUCTION




1.1 GLOBAL ENERGY SCENARIO

Power is a vital input for economic development and sustenance of moderneconomy. Power is also important for eradication of poverty. However, providingadequate and clean power to face the ever-growing environmental degradation hasbeen a great challenge of the current century. Basically the objective of sustainabledevelopment is also the same.

The inevitable increase in the use of fossil fuels to be in step with the economic growthhas associated side effects of threat to energy security of the country and environmentaldegradation through climate change. World population is expected to double by themiddle of the 21st century (Global Energy, 1998) and economic development needs tocontinue. It is expected that this will result in a 3–5 fold increase in world economicoutput by year 2050 and a 10–15 fold increase by year 2100. Some studies predictthat despite rapid economic development adequate energy services may not beavailable to one and all. A 1.5 to 3 fold increase in primary energy requirements by2050 and a 2 to 5 fold increase by 2100 is expected.

As early as 1896, the Swedish scientist Svante Arrhenius had predicted that humanactivities would interface with the way the sun’s interaction with the earth, resulting inglobal warming and climate change. The prediction is becoming more or less truemostly due to the indiscriminate use of fossil fuel. The following issues areconsidered to be of global significance.

Ozone layer depletion Land degradation Air and water pollution Sea level rise Loss of bio–diversity

A very important aspect of the global environment degradation is that it affects all on aglobal scale irrespective of country, race or region.

Fossil fuel combustion is a major contributor to harmful emissions whichaggravate the Ozone layer depletion. Sulphur, nitrogen oxides, carbon monoxide, andsuspended particulate matter are the main pollutants. Acid deposition from fuelcombustion is causing significant damage to natural systems, crops etc., affectingentire eco–systems and crossing national boundaries. In many regions, acidificationhas diminished the productivity of forests, fisheries and farm lands. Carbon dioxide(CO2) produced by fossil fuel combustion, is the biggest source of the anthropogenicgreenhouse gas emissions that are changing the global climate system. To achieve astable atmospheric CO2 concentration at any level would require that CO2 emissions becut by more than half from current levels, maybe within the next few decades.However, if the present trend is allowed to continue, current CO2 emissions will lead tomore than a doubling of atmospheric concentration before 2070.




1.1.1 Sustainable Development

The World Commission on Environment and Development (the BrundtlandCommission) defines sustainable development as “development that meets the needsof the present without compromising the ability of future generations to meet theirown needs”. While the development needs are recognized, it emphasizes that itmust be based on the efficient and environmentally responsible use of all ofsociety’s scarce resources – natural, human and economic. The Multiple Objectivesof Sustainability is indicated in Figure 1

Figure 1

Sustainable Development

PromotingEquity

ImprovingQuality of

Life and wellbeing

Sustainingnatural

resources

PromotingHealth of

people andEcosystem

MeetingInternationalobligations

1.1.2 Oil Depletion

It is generally accepted that the world runs on oil. As the oil is termed as ‘fossil fuel’,the consensus is that it was formed in the past which means that the depletion hasstarted the day the first barrel was consumed.

The debate between the economists and natural scientists withstanding, the economistmaintaining that the reserves are constantly renewed as they are extracted asMinerals are inexhaustible and will never be depleted and the natural scientistsmaintaining that an oilfield contains what it contains, because it was filled in thegeological past. But the general pragmatic thinking is that the reserve will not last long.According to Mr. Colin J. Campbell, Founder and Honorary Chairman of the Associationfor the Study of Peak Oil and Gas (ASPO) , the watershed for oil comes around 2010,followed five years later by the peak of oil and natural gas combined. The base casescenario projected by him (please refer Figure 2 below) points to 2010 but could comesooner, ac co rd ing to him, if economic recovery should drive up the demand for oil.




Figure 2: All Hydrocarbons Base Case Scenario 2002

Oil, which provides about 40% of global energy needs and about 90% oftransport fuel, is set to start to decline within about ten years. Mr. Campbell warnsthat world will have to learn to use less of oil.

World demand drives the rate of depletion. The scenarios projected earlierassumes that demand will be on average about flat, giving a plateau ofproduction until the five swing countries of the Persian Gulf are no longer able to offsetthe decline of the rest of the world. According to Campbell, this time should beexpected to be reached around 2010 when the demand is placed on these swingcountries to produce over 20 Mb/d (million barrels a day) or about 36% of worlddemand. The world production would then have to commence its long term decline(World Hubbert Peak) he predicts.

1.1.3 Role of Renewable Energy

Renewable energy sources have the potential to provide energy services with zero oralmost zero emissions of both air pollutants and green house gases. It is estimated thatrenewable energy sources supply 18% of total world energy demand. Newrenewable energy sources (other than traditional biomass) contributed to 8.4% ofthe world’s energy consumption in 2006 as shown in Figure 3. Solar photovoltaic aregrowing at a rapid pace and is expected that it would reach about 10,000 MW of worldproduction by year 2010.

It is worth mentioning here that each gigawatt – hour of electricity generated by SolarPhotovoltaic, rather than burning coal, prevents up to 820 tons of CO2 emission.




SE LE CT ED IN DI CATO RS AND TO P FI VE CO UNT RIES

SELECTED INDICATORS 2007 © 2008 © 2009

Investment in new renewable capacity (annual) 104 © 130 © 150 billion USDRenewables power capacity (including only small hydro)1 210 © 250 © 305 GWRenewables power capacity (including all hydro) 1,085© 1,150 © 1,230 GW

Hydropower capacity (existing, all sizes) 920 © 950 © 980 GWWind power capacity (existing) 94 © 121 © 159 GWSolar PV capacity, grid-connected (existing) 7.6 © 13.5 © 21 GW

Solar PV production (annual) 3.7 © 6.9 © 10.7 GWSolar hot water capacity (existing) 125 © 149 © 180 GWth

Ethanol production (annual) 53 © 69 © 76 billion litersBiodiesel production (annual) 10 © 15© 17 billion liters

Countries with policy targets 68 © 75 © 85States/provinces/countries with feed-in policies2 51 © 64 © 75

States/provinces/countries with RPS policies 50 © 55 © 56States/provinces/countries with biofuels mandates 53 © 55 © 65

TOP FIVE COUNTRIES #1 #2 #3 #4 #5

Annual amounts for 2009

New capacity investment Germany China United States Italy SpainWind power added China United States Spain Germany India

Solar PV added (grid-connected) Germany Italy Japan United States Czech RepublicSolar hot water/heat added3 China Germany Turkey Brazil India

Ethanol production United States Brazil China Canada FranceBiodiesel production France/Germany United States Brazil Argentina

Existing capacity as of end-2009

Renewables power capacity

(including only small hydro)

China United States Germany Spain India

Renewables power capacity

(including all hydro)

China United States Canada Brazil Japan

Wind power United States China Germany Spain India

Biomass power United States Brazil Germany China SwedenGeothermal power United States Philippines Indonesia Mexico ItalySolar PV (grid-connected) Germany Spain Japan United States ItalySolar hot water/heat3 China Turkey Germany Japan Greece




Figure 3: Renewable Energy Share of Global Final Energy Consumption 2008

1.2 INDIAN ENERGY SCENARIO

The total installed capacity of electricity in India as on 31st December 2009 was1,56,092.23 MW; the Peak Demand was 1,16,281 MW and the Demand met was 95,783 MW.This results in a Peak Deficit of 13,938 MW (12.6%).

According to the 16th Electric Power Survey, over 1,00,000 MW additional generationcapacity needs to be added by 2012 to bridge the gap between demand and supply ofpower. Out of the total installed capacity of 1,56,092 MW as on 31

st

December 2009,63.97% was thermal power, 2.65% was of nuclear power, 23.63% was hydro, andabout 9.75% was renewable energy based.

Figure 4 : All India Generating Installed Capacity ( Mw )(As On 31-12-09 )

Source: Central Electricity Authority

The Electricity Act, 2003, is intended to consolidate the laws relating to the generation,




transmission, distribution, trading and use of electricity and generally for takingmeasures conducive to the development of electricity industry promotingcompetition therein, protecting interest of consumers and supply of electricity to allareas. Under paragraph 3 (1) of part 2 – ‘National Electricity Policy and Plan’ of TheElectricity Act, 2003, it is provided that, “the Central Government shall from time to time,prepare the national electricity policy of tariff policy, in consultation with the stateGovernments and the Authority for development of the power system based on optimalutilisation of resources such as coal, natural gas, nuclear substances or materials,hydro and renewable sources of energy”.

Under paragraph 6.4 “Non-Conventional sources of energy generation including co-generation, of the Tariff Policy, it is provided that, “Pursuant to provisions of section86 (i) (e) of the Act, the Appropriate Commission shall fix a minimum percentage forpurchase of energy from such sources taking into account availability of suchresources in the region and its impact on retail tariffs. Such percentage for purchaseof energy should be made applicable for the tariffs to be determined by the SERCs latestby April 1, 2006.

1.3 RENEWABLE ENERGY IN INDIA

India has a vast supply of renewable energy resources, and it has one of the largestprograms in the world for deploying renewable energy products and systems.

Indeed, it is the only country in the world w i t h an exclusive Ministry forRenewable Energy development, the Ministry of New and Renewable Energy (MNRE).Since its formation, the Ministry has launched one of the world’s largest and mostambitious programs on renewable energy. Based on various promotional efforts put inplace by MNRE, significant progress is made in power generation from renewableenergy sources.

Renewable energy technologies based on the inexhaustible resources of sunlight,wind, water and biomass are considered to offer sustainable energy alternatives to aworld beset by serious environmental problems and volatile fossil fuel politics. Anincreasing share of global energy needs is expected to be met by renewable in the yearsahead. India is abundantly endowed with renewable energy resources i.e. ,solar energy,wind energy, biomass and small hydro, widely distributed across the country, and can beutilized through commercially viable technologies to generate power.

Around 15,225 MW (around 9.75 % of total installed capacity in the country) capacity ofRenewable Energy projects has been installed in the country. India is planning to addabout 14,500 MW power generating capacity from renewable in the 11th plan (2007-2012).

The environment has become the main driving force behind efforts in use ofrenewable energy projects and energy efficiency & conservation. Evidence isaccumulating that the burning of fossil fuels contributes to global warming and climatechange.




The demand for power supply has been increasing considerably due to more & moreindustrialization, development of various industries etc. and the need to bringirrigation facilities to the farms in the dry zones, increased dependency on power indomestic sector, to meet minimum needs program of electrifying the villages, etc.

The need for harnessing renewable source of energy has, therefore, gainedincreased importance not only to meet the growing demand for energy but also for thefact that sources like coal, oil, petroleum products and other hydro carbons arefast getting depleted in the world and particularly in India.

The total power generation capacity addition planned for the Tenth and Eleventh Five YearPlan (2002-2012) is around 1,00,000 MW of which 10% (i.e. 10,000 MW) was aimed as theshare of renewables such as Wind, Solar, Biomass and Small Hydro. India is a tropicalcountry and has abundant solar insolation throughout the country for most part of theyear. As the seasonal variation is marginal, solar energy can be harnessed economicallythroughout the year.

Taking the above factors into consideration, Government of India had formulated apolicy frame work for enhancing the share of renewable energy in the total energy mixof the country known as National Action Plan on Climate Change (NAPCC).

On June 30, 2008, Prime Minister Manmohan Singh released India’s first NAPCCoutlining existing and future policies and programs addressing climate mitigation andadaptation. The plan identifies eight core “National Missions” running through2017 and directs ministries to submit detailed implementation plans to the PrimeMinister’s Council on Climate Change.

Emphasizing the overriding priority of maintaining high economic growth rates to raiseliving standards, the plan “identifies measures that promote our developmentobjectives while also yielding co-benefits for addressing climate change effectively.”It says these national measures would be more successful with assistance fromdeveloped countries, and pledges that India’s per capita greenhouse gas emissions“will at no point exceed that of developed countries even as we pursue ourdevelopment objectives.”ALL INDIA REGION WISE GENER ATING INSTALLED CAPAC ITY (MW) OF 6. POW ER UTILITIESINCLU DING ALLOC ATED SHARE S IN JOINT AND CENTRAL SECTOR UTILI TIES

(As on 30 -09-10 )

THERMAL Nuclear HYDROSL.

NO.

REGIONCOAL GAS DSL TOTAL ( R e n e w a b l e )

R.E.S.@

( M N R E )

TOTAL

1 Northern 22520.00 3563.26 12.99 26096.25 1620.00 13622.75 2690.62 44029.622 Western 29155.50 8143.81 17.48 37316.79 1840.00 7447.50 4849.93 51454.223 Southern 19172.50 4690.78 939.32 24802.60 1100.00 11260.03 8329.67 45492.304 Eastern 17035.38 190.00 17.20 17242.58 0.00 3882.12 334.91 21459.61

5 N. Eastern 60.00 787.00 142.74 989.74 0.00 1116.00 218.19 2323.93

6 Islands 0.00 0.00 70.02 70.02 0.00 0.00 6.10 76.127 All India 87943.38 17374.85 1199.75 106517.98 4560.00 37328.40 16429.42 164835.80




1.4 JAWAHARLAL NEHRU NATIONAL SOLAR MISSION

On January 11, 2010, Prime Minister Manmohan Singh has launched theJawaharlal Nehru National Solar Mission (JNNSM) on under the brand name “SolarIndia”.

The mission is one of the eight National Missions of NAPCC. The mission targets are asfollows:

To create an enabling policy framework for the deployment of 20,000 MW ofsolar power by 2022.

To ramp up capacity of grid-connected solar power generation to 1000 MWwithin three years – by 2013; an additional 3000 MW by 2017 through themandatory use of the renewable purchase obligation by utilities backed with apreferential tariff. This capacity can be more than doubled – reaching 10,000MWinstalled power by 2017 or more, based on the enhanced and enabledinternational finance and technology transfer. The ambitious target for 2022 of20,000 MW or more, will be dependent on the‘learning’ of the first two phases, which if successful, could lead to conditions ofgrid-competitive solar power. The transition could be appropriately up scaled,based on availability of international finance and technology.

To create favorable conditions for solar manufacturing capability, particularlysolar thermal for indigenous production and market leadership.

To promote programmes for off grid applications, reaching 100 MW by 2017 and2000 MW by 2022.

To achieve 15 million sq. meters solar thermal collector area by 2017 and 20million by 2022

To deploy 20 million solar lighting systems for rural areas by 2022.

Sr.No

Applicationsegment

Target forPhase I

(2010-13)

Target forPhase 2(2013-17)


1 Solar collectors 7 million sq. m 15 million sq. m 20 million sq. m

2 Off grid solarapplications

200 MW 1000 MW 2000 MW




Proposed Road Map for the National Solar Mission

The mission document is attached as Annexure I.

Government has also decided to approve the implementation of the first phase of theJNNSM during 2009-2013 and the target to set up 1,000 MW grid connected (33 KV andabove) solar plants, 100 MW of roof top and small solar plants connected to LT/11KV grid and 200 MW capacity equivalent off-grid solar applications in the firstphase of the Mission, till March, 2013 and an amount of Rs. 4337 crore has beenapproved for these activities.

Implementation of the target of 1,000 MW of grid connected (33 KV and above) solarpower plants will be through NTPC Vidyut Vyapar Nigam (NVVN), a trading subsidiary ofNTPC Limited. NVVN will directly purchase the solar power from the project developersas per the norms and guidelines fixed in this regard.

100 MW capacity of solar roof top and small grid connected solar power plants will beconnected to LT/11 KV grid of the distribution utility and the solar power will bedirectly purchased by the distribution utilities as per the norms and guidelinesfixed in this regard.

Copy of Mission Resolution by Ministry of New and Renewable Energy isattached as Annexure II

3 Utility grid power,including roof top

1,000 – 2000MW

4000 – 10,000MW

20000 MW




Chapter - 2

PROJECT SUMMARY




2.1 PROJECT INFORMATION

5.00 MWp capacity Solar PV Power plant at Village Ladhupur, Teshil - Gurdaspur,Distt – Gurdaspur , PANJAB STATE. The available Land area is 30 Acres

Available nearest grid substation for power evacuation is of 66 KV at a distance ofaround 2 KM located in the Village, Kahnuwan, Teshil & Distt, Gurdaspur.

2.2 SOLAR POWER PROJECT

One no. Grid Connect Solar Power Plant having Generation capacity of 5 .00MWp at 33 KV, 50 Hz A.C. supply system will be installed.

These specifications specifically cover requirements for Grid Connected SolarPower Plant along with their accessories only. The Grid Connect Solar PowerPlant will generate power through solar energy and supply clean and greenelectricity to the grid without any damage to the existing ceiling/roof and thestructure.

The minimum array capacity at STC will be of 5.00 MWp at the time ofinstallation and after 1 year of operation.

The total capacity of the 5.00 MWp solar power plant is divided into sub arrays of230kWp solar power capacity to feed into the 250KW rating power conditioningunits. 24V, 230Wp mono crystalline solar modules 18200 nos. used for this project,connecting 100 nos in series and such 910 strings in parallel using Array Junctionboxes and Main Junction boxes.

The Junction boxes shall be dust, vermin and water proof and each arrayjunction boxes shall have suitable reverse blocking diodes and MCB’s for surgeprotection.

These solar modules are mounted on single module mounting structuresspecially designed for fixing over Kalzip railings. The outputs of the MainJunction Boxes connected to the Power Conditioning Units (PCU) for convertingthe DC power into AC power and then export the solar energy into the gridthrough LT panel, Transformer and HT Panel.

The project is estimated to generate about 8.33 MUs per annum for 25 years.

The p r o j e c t also plans to avail carbon credits under clean developmentmechanism.




Chapter - 3

ECONOMIC SCENE OF PROJECT LOCATION –GROWTH AND CONSTRUCTION




3.1 ABOUT PUNJAB

Punjab, the richest state in India that throbs with the vibrant culture of equallyvibrant people, has always moved on the path of prosperity despite all odds. With itsinimitable style of transforming every potential opportunity into a success storythrough enterprise and endeavor Punjab has always been at the forefront in thedevelopment story of India. Punjab – The Food basket and Granary of India", hasbeen awarded National Productivity Award for agriculture extension services forconsecutively ten years from 1991-92 to 1998-99 and 2001 to 2003-04.

The geographical area of Punjab is 50,362 sq. km (1.5% of India's total IT lies inNorth-west of India. Its average elevation is 300 m from the sea level.

Punjab extends from the latitudes 29.30° North to 32.32° North and longitudes 73.55°East to 76.50° East. It is bounded on the west by Pakistan, on the north by Jammuand Kashmir, on the northeast by Himachal Pradesh and on the south by Haryanaand Rajasthan.

Due to the presence of a large number of rivers, most of the Punjab is a fertile plain.The southeast region of the state is semi-arid and gradually presents a desertlandscape. A belt of undulating hills extends along the northeastern part of the stateat the foot of the Himalayas.

Punjab is situated in the North-Western part of India. The Punjab climate isdetermined by the extreme hot and extreme cold conditions. The region lying nearthe foot hills of Himalayas receive heavy rainfall whereas the region lying at a distantfrom the hills, the rainfall is scanty and the temperature is high. Punjab’s climatecomprises of three seasons. They are the summer months that spans from mid Aprilto the end of June. The rainy season in Punjab is from the months of early July toend of September. The winter season in Punjab is experienced during the months ofearly December to the end of February. The transitional seasons in Punjab are thepost monsoon season and the post winter season.

The climate of the plains is excessively hot and dry between April and August, withtemperatures as high as 49° C. Winters are cool with some frosts. The averagetemperature in January is 13° C, although at night the temperature sometimes lowers tofreezing. In June the average temperature is 34° C occasionally climbing as high as 45°C.

The rains of the monsoon season begin at the end of June and continue till August.Annual rainfall ranges from about 915 mm (about 36 in) in the north to 102 mm (4 in) inthe south. Annual average rainfall ranges from 1250 mm in the north to 350 mm in thesouthwest. More than 70 percent of the annual rainfall occurs during the monsoonseason from July to September.

Much of Punjab lies in the Punjab Shelf, bounded on the east by the Delhi-HaridwarRidge and on the south by the Delhi-Lahore Ridge. Most earthquakes in this region areshallow though a few earthquake of intermediate depth have been recorded in Punjab.




However, it must be stated that proximity to faults does not necessarily translate into ahigher hazard as compared to areas located further away, as damage from earthquakesdepends on numeros factors such as subsurface geology as well as adherence to thebuilding codes.

The districts of Firozpur, Faridkot, Patiala, Mansa, Sangrur and Bhatinda lie inZone III. The districts of Amritsar, Gurdaspur, Hoshiarpur, Jalandhar, Kapurthala,Ludhiana, and Rupnagar lie in zone IV.

The per capita income at current prices has been estimated at Rs.30,701 in 2004-05as against Rs.28,607 in 2003-04 showing an increase of 7.32 percent. The Gross StateDomestic Product (GSDP) at Constant (1993-94) prices during 2004-05 was Rs.48532crores (Q) and the provisional estimates of GSDP for the year 2003-04 was Rs. 46049crores.

Punjab which has done remarkably well in the field of agriculture is now well on itsway to rapid industrialization through coordinated development of Small, Mediumand Large scale industries. Punjab has predominance of small-scale industry; thanksto the indomitable spirit and entrepreneurial skills of the Punjabis (people of Punjab).0.2 million small scale industries and 600 large and medium scale industriesfunctioning in the state involve fixed capital investment of Rs.54000 Million andRs.20400 Million respectively.

3.2 GURDASPUR DISTRICT

The Gurdaspur district is the northern most district of Punjab state. It falls in theJalandhar division and is sandwitched between river Ravi and Beas. It sharescommon boundaries with Kathua district of Jammu and Kashmir state in the north,Chamba and Kangra districts of Himachal Pradesh in the north-east, Hoshiarpurdistrict in the south-east, Kapurthala district in the south, Amritsar district in thesouth west and Pakistan in the north west.

The district lies between north-latitude 310-36' and 320-34' and east longitude 740-56'and 750-24'

Total area of the district is 3562 Sq.Km.

Three Tehsils of the district namely Gurdaspur, Batala and Dera Baba Nanak areplain and similar to the rest of the Punjab plains in structure, genesis lithology andsurface configuration out the northern most part of the district, i.e. Dhar andPathankot tehsils are in the foot of Shivalik hills.

The landscape of the Gurdaspur district has varied topography comprising the hillytract, undulating plan, the flood plains of the Ravi and the Beas and the up land plain.The hilly tract covering the north-eastern parts of Pathankot and Dhar tehsils aretypically land topography, ranging in elevation from about 381 to 930 metre abovesea level. From north to south the tract consists of three small ranges running in




north-west to south east direction – The Siali Dhar-Dangahri Dhar range the DhaulaDhar-Nag Dhar range and the Rata Dhar range. The Siali Dhar-Dangahri Dhar rangelies to the extreme north. In its western part Siali Dhar is about 931 metres above sealevel at its highest point and in the eastern part about 959 metres. This range ishighly dissected by numerous streams. South of this is situated the Dhaul Dhar-NagDhar which is about 13 km long and at places about 2.5 km. wide and has anelevation varying from about 610 to 844 metres above sea level.

There are mainly two seasons i.e. summer and winter. The summer season fallsbetween the months of April to July and the winter November to March. In summerseason the temperature touches 440C or even sometimes crosses it. June is thehottest month and January is the coldest one. Mostly the rain falls in the month ofJuly. The winter rains are experienced during January and February. The dust stormoccurs in the month of May and June.

The south-west monsoon generally arrives in the first week of July and continues tillend of August. 70% of the rainfall occurs during this period. The average rainfall ofthe district is 875.4 millimeters (average of 5 years). The rainfall in the district isgreater in the sub mountain parts of the district and decreases rapidly towards thesouthwest.




Chapter - 4

POWER SCENARIO IN PUNJAB




4.1 INSTALLED CAPACITY IN PUNJAB

The total installed capacity of Punjab is 4942MW (as on 30.03.2010) of which ThermalPower constitutes of 3942 MW and Hydro constitutes of 10 00 MW.

The detail mode wise & sector wise breakup of the installed capacity is givenbelow:

Source: Central Electricity Authority

4.2.2 PPA with PSEB for Solar Power

The power from this Solar plant is proposed to be supplied to PS EB network.The same has also to be approved by PERC.




Chapter - 5

NEED OF THE PROJECT




5.1 POWER SUPPLY ARRANGEMENTS

Power will be supplied to PSEB at 66 KV substation.

5.2 NEED OF SOLAR PROJECT.

5.2.1 Utilization of Renewable Source Available

In the light of the ever growing importance of renewable energy, specially solarphotovoltaic energy and in the context of climate change and energy security,PEDA as per JNNSM has decided to utilize in solar photovoltaic electricity fortheir energy need during day time and toward this objective department decidedto implement a 5.00 MWp grid interactive solar photovoltaic power project at theGurdaspur district.

This also shall create a revenue stream for renewable energy based powergenerating units through trading of carbon credits, green certificates etc.

5.3 POWER GENERATION SCHEME

5.3.1 Electrical System Types

As it is intermittent, the electricity produced by solar PV array needs to be properlycontrolled, stored and distributed. The two major possibilities currently prevalentare (i) Stand–alone system and (ii) Grid connect system.

It may be noted that many devices are needed between the array and the load toprovide electrical power.

A typical stand–alone photovoltaic system is composed of an array convertingsunlight into electricity. Electrical current flows into a bank of batteries through acharge controller (regulator) that protect the batteries from overcharge or overdischarge. By using a DC–DC converter required levels of DC voltage can beobtained if the loads to be connected are of DC types and if the loads are of ACtype a DC–AC inverter may be needed.




A schematic diagram of a Stand–alone PV system is shown in Figure below:

Figure 5: Schematic Diagram of Stand – alone PV system




A schematic diagram of a Grid connect system is shown in Figure below:

Figure 6: Schematic Diagram of Grid connect system

The project is of the grid connect system type. The system operates only when theutility is available. The system consists mainly of the following:

Solar PV array – which produces DC electricity when solar rays are incident on it.o Power Conditioning Units (PCU) – which convert DC (Direct Current)

electricity into AC (Alternating Current) electricity and facilitatesynchronization with the grid power

o Transformers – which transform the AC output of the Power ConditioningUnits to the level required at the grid

5.3.2 Operating Principle of Grid Connect Solar PV Systems

The system automatically ‘wakes-up’ in the morning and feeds-in power to the grid,provided the grid power is within the window (voltage and frequency limit) ofsynchronization.

The Maximum Power Point Tracking (MPPT) circuit within the PCU extracts theMaximum available power from the solar array and feeds it to the grid. If the gridvoltage and / or frequency go out of the window, the PCU immediately isolatesfrom the grid.

The PCU will reconnect after a pre-determined time when the grid is back within thewindow. When the feed-in power is below a predetermined level or when the solarinsolation is below a selected value for a pre-determined period of time the PCU isisolated from the grid and is operated in sleep mode. This minimizes the stand bylosses.

5.4 TYPICAL SYSTEM COMPONENTS OF GRID CONNECT SPV SYSTEM

5.4.1 Solar PV Modules / Array

As the solar cells have limited linear dimensions, a number of cells are to beinterconnected to provide required voltage and current. These are encapsulatedusing a material such as Ethylene Vinyl Acetate (EVA) between a transparentwindow and moisture – proof backing to insulate and protect them.




As the PV cells are less efficient at higher temperatures, modules aremechanically designed as not to retain the ‘solar heat’ and mounted so as topermit natural cooling. The Figure below depicts the structure of a commercialmodule.

Figure 7: Structure of a Commercial Module

The electrical performance of a module is more or less identical to a solar cell. It isshown in the Figure below:

Figure 8: Characteristic Curve The following parameters need to be considered while selecting a module for

use:oOpen–circuit Voltage – Voco Short–circuit Current – Isco Voltage Corresponding to MPP – VmpoCurrent Corresponding to MPP – ImpoMaximum power – Pm




Generally, the aforementioned values are compared to a solar irradiation of 1000W/m2 with a spectrum of AM 1.5 and solar cell temperature of 25oC.

Another very important feature connected with solar PV module performance isthe Normal Operating Cell Temperature (NOCT).

NOCT is that value of cell temperature which is reached when the incident solarradiation is 800 W/m2, ambient temperature is 47 + 2oC and wind velocity is 1meter/second.

5.4.2 Solar PV Array

Depending on the load power requirements, modules are interconnected inseries or parallel to constitute a PV array. The Figure below is a representation ofcell to module and module to array.

Figure 9: From Solar Cell to Solar PV Arrayƒ

Diagram of an array of modules and the resulting I–V characteristics is shown inFigure below:

Figure 10: I – V Characteristics




Diodes are used in two ways in a photovoltaic array. Brief details are given below:

5.4.2.1. Blocking Diodes

These are placed in series with a module to prevent current from flowing‘backwards’ through to modules.

5.4.2.2. By–Pass Diodes

When a cell gets shaded from the sun, an open–circuit can exist in which there is nocurrent flow. By–pass (or shunt) Diodes are used to shunt–current, so that the othercells and modules continue to produce power in the PV array.

5.4.3 Balance of Systems (BOS)

5.4.3.1 Power Conditioning Units / Inverters

The Power Conditioning Units used in grid connect SPV systems consist of anInverter and other electronics for MPPT, Synchronization and remote monitoring.

The inverter is the most complicated part of the PV system. It has to act as theinterface between the PV array and the Grid. As the PV array output varies with thesolar radiation the inverter has to cope with the same.

The main functions carried out by the PCU are as follows:oChange the incoming DC received from PV modules into AC with suitable

power quality. The inverter produces sinusoidal AC wave forms with lowharmonic distortion.

o The inverter also has to act as a protective device of the system. It needs totripout if the voltage, current or frequency goes outside acceptable ranges.

Pulse width modulation is used to generate a wave form as near as possible to asine wave. High speed switching device are used to generate pulses of thedevices mainly used for Inverter circuitry. Inverter efficiencies are now reachingabout 95% commercially, mainly by deploying new switching topologies.

5.4.3.2 Other BOS Items

Solar PV module mounting structures, interconnection systems and protectionsystem which are used to integrate the solar PV modules into the structural andelectrical systems are known as other BOS items.




5.4.3.3 Schematic Diagram of Solar PV Grid Connect System

Figure 11: Solar PV Grid Connect System

The Figure above represents the concept of grid connects solar PV system withfeed-in at 33 kV level.

The SPV array (constituting solar PV modules of selected rating connected inseries to build up the required voltage and in parallel to build up the requiredcurrent) of the designed DC power produces DC electricity when Solar insolation isincident on it. The DC power thus produced is taken through various junctionboxes and isolators and connected to the PCU.

The PCU houses the inverter circuitry which converts DC power supply into ACpower supply, the synchronization circuitry which actualizes the tie-up of solar PVsource to the grid source and the remote monitoring and control circuitry. Anumber of PCUs are connected in parallel to buildup the required AC power, andcombiners permit AC output power at 3 Ph, 415 V, 50 Hz to be fed intotransformers.

Depending on the grid voltage level to which the solar PV power is beingsynchronized, different levels of step-up transformers may have to be deployed. Inthe project under consideration, as the grid voltage is at 66 kV level, there will betwo step-up from 415 V to 11 KV and 11 KV to 66 KV.

The protection and metering circuits are not shown in the schematic diagram but inthe actual scheme of things these play a very significant role. Appropriatecurrent transformers and potential transformers are used to tap requiredfeedback signals to initiate action on metering and protection.




Chapter - 6

SURVEY AND INVESTIGATION




6.1 TYPICAL SYSTEM COMPONENTS OF GRID CONNECT SPV SYSTEM6.1 Location Map of Gurdaspur attached as Annexure IV

The exact location of the project site has the following orientation:

o Latitude : 28.56o N

o Longitude : 77.13o E

Climate and site condition of the project location are as follows:

o Elevation above MSL : 242 Meter .o Ambient Temperature : Max. 46ºCo Average Ambient : 40ºCo Minimum Ambient : 2ºC

Relative Humidityo Average Humidity : 65%o Peak Humidity : 90%

Wind Load : As per IS 875

Seismic data : As per IS 1893 (Zone IV)

Seismic zone map of India is attached as Annexure V

Details of area available for the project are as follows:o Total Land area of 30 Acres is available at the proposed project site.

Some photographs of the project site during execution are given in Annexure VI.




Chapter - 7

POWER POTENTIAL STUDIES




7.1 SOLAR RADIATION - INDIA

The highest annual radiation energy is received in western Rajasthan while the northeastern region of the country receives the lowest annual radiation.

The annual mean daily solar radiation in India varies from 4.5 – 6.5 KWh/m2/day.

Figure below shows the annual mean daily solar radiation pattern in differentparts of India.

kWh/m2/day

Source: MNRE

Figure 12: Annual Mean Daily Solar Radiation in India in kWh/m2/day




7.2 SOLAR PV MODULE TYPES

Over the past three decades SPV technology has shown impressive growth towardstechnological and economic maturity. The major SPV technologies based onmaterials used are (i) Crystalline Technology (ii) Thin Film Technology.

7.2.1 Crystalline Technology

Crystalline Silicon (mono & multi) cell technology continues to dominate andforms about 90% of market share. It is the current industry leader and almost allapplications use crystalline silicon based PV technology. It is ideally suited forlocations with space constraints due to high efficiency than thin-films.

7.2.1.1 Overview

Crystalline Silicon (c-Si) was chosen as the first choice for solar cells, since thismaterial formed the foundation for all advances in semiconductor technology.The technology led to development of stable solar cells with up to 16% efficiency.Two types of crystalline silicon cells are used in the industry. The first isMonocrystalline Si, produced by growing high purity, single crystal Si rods andslicing them into thin wafers. The second is Multicrystalline Si, made by sawing acast block of silicon first into bars and then wafers. Major trend in PV industry istoward multicrystalline technology. In both mono- and multicrystalline Si, asemiconductor junction is formed by diffusing phosphorus (an n-type dopant) intothe top surface of an already boron doped (p-type) Si wafer. Screen-printedcontacts are formed on the top and bottom of the cell, with the top contact patternspecially designed to allow maximum light to enter the Si material and minimizeelectrical (resistive) losses in the cell.

Most efficient Solar cells are produced cells using Monocrystalline Si with lasergrooved, buried grid contacts for maximum light absorption and currentcollection. Some variants of c-Si technologies are also being tried by the industry.One of them is to grow ribbons of silicon from a silicon melt, either as a plain two-dimensional strip or as a hollow octagonal structure and laser cutting into strips.Another is to melt silicon powder on a cheap conducting substrate. Mainadvantage of these is the elimination of kerf loss that prevails in other crystallinetechnologies they have limitations by way of lower growth/pulling rates andpoorer uniformity of surface evenness and scalability.

Each c-Si cell generates typically generates about 0.5V. Usually 36 cells aresoldered together in series to generate voltage levels that can charge a standard12V battery. The cells are hermetically sealed with glass on the front side andplastic materials at the back to produce highly reliable, weather resistant c-SiModules with performance guarantees in excess of 25 years. Typical c-Si cell isshown in Figure below:




Figure 13: Crystalline silicon solar cell

7.2.1.2 Advantages:

Highest efficiency levels (14.5% to16%)

Commercially most viable among PV technologies

Sustained dominance in PV industry for over 25 years

Higher current / lower voltage features enable easier system design

Project implementation can be done in stages starting with Module assembly andbackward integration to wafer fabrication stage or the other way from Wafer to Cellto Module

Performance guarantee for c-Si Modules is generally in excess of 25 years

7.2.1.3 Disadvantages:

In c-Si technology consumption of material (Silicon) is far more than what isactually needed for converting light into electricity.

High dependence on Polysilicon availability and pricing.

Melting point of Silicon being high (1415o C) power consumption is high inPolysilicon production and Wafer fab processes.

7.2.1.4 Merits of Multicrystalline Technology

From the historic trends on crystalline production, it can be observed that in the lastdecade, the share of multi-crystalline modules has gradually increased from 42.1% to45.2%.

This has been driven by primarily two reasons:o Aim to reduce energy consumption in the whole process




o Shortage of silicon feedstock.




Solar Photovoltaic industry commenced using scrap silicon and off-grade siliconfrom semiconductor industry in the initial stages and solar photovoltaic industryalso followed the highly energy intensive and delicate CZ process for growingcrystals to sliced wafers. However, as the size of the industry increased and as thescarcity of silicon feedstock started impacting the industry, in addition to thesignificant cost increases on account of electrical energy costs, the multi-crystalline silicon commenced carving out more share. This was basically due tothe fact that for multi-crystalline process, the two initial steps, which are highenergy consuming of silicon purification and crystal growing, are eliminated.Multi-crystalline process uses only off-grade and scarp silicon as feedstock.

Over the years, due to continuous research, the efficiency levels of multi-crystalline have also almost got up with single crystalline cells at 14-15%.

In the years to come, multi-crystalline is expected to grow at a much faster pacethan single crystalline, due to the aforementioned reasons.

7.2.2 Thin Film Technology

7.2.2.1. Overview of the technology

The high cost of crystalline silicon wafers (they make up 40-50% of the cost of afinished module) has led the industry to look at cheaper materials to make solarcells. The selected materials are all strong light absorbers and only need to beabout 1micron thick, so materials costs are significantly reduced. AmorphousSilicon thin film Solar Cell is the earliest device developed in this area. Othertypes of thin film Cells that followed are Cadmium Telluride (CdTe) and CopperIndium Gallium Diselenide (CIGS) Solar Cells. New developments in this fieldinclude ‘Micromorph’ Cells (a combination of amorphous and microcrystallineSilicon materials) that has yielded higher efficiencies and has better stabilityfeatures.

In Thin Film Solar Cell / Module technology, very thin layers and a chosensemiconductor material (ranging from nanometer level to several micrometers inthickness) are deposited on to either coated glass or stainless steel or a polymer.The semiconductor junctions are formed in a different way, either as a p-i-ndevice structure in amorphous silicon, or as a hetero-junction. A transparentconducting oxide layer (such as tin oxide) forms the front electrical contact of thecell, and a metal layer forms the rear contact. Thin film technologies are allcomplex. They have taken at least twenty years, supported in some cases bymajor corporations, to get from the stage of promising research to the firstmanufacturing plants producing early product. Typical Thin Film Silicon solar cell isshown in Figure below:




Figure 14. Thin film silicon solar cell

7.2.2.2. Advantages

Significant lower material cost per Wp

Faster manufacturing processes with less number of steps

Comparatively lower energy consumption processes

Higher energy performance (Thin Film modules generate more electricity per unit ofinstalled capacity than crystalline silicon modules)

Lightweight and flexible substrate

7.2.2.3. Disadvantages

Suffers from Less than adequate conversion efficiency

Poor long term stability

High capital costs

Scalability and control of uniformity over large area designs

Lower environmental compatibility in respect of CdTe and CIGS technologies




7.3 COMPARISION BETWEEN CRYSTALLINE & THIN FILM TECHNOLOGY

Sr. No. Parameter Crystalline Thin Film1) Types of Materials Mono Crystalline &

PolycrystallineAmorphous Silicon,CdS, CdTe, CIGS etc.

2) Handling Better protection againstbreakage

Not Guaranteed

3) Power Efficiency 12-16% 6-8%4) Technology Well Developed Under development5) Module Weight Light weight modules Heavier modules6) Areautilization Higher power generated

per unit area due to highefficiency

Less power per unitarea

7) TemperatureEffects

Temperature variationsaffect output

Lesser impact ofTemperature variations

8) Irradiance Used particularly forNormal radiations

Better performancewith Diffuse radiations

9) Module quantity Lesser nos required dueto high efficiency

More modules required

10) Output per MWinstalled

High Varies as per sunlightcondtion and variouslocations

11) Transportation Cost Lower Transportation cost Higher cost12) Mounting Structure Fewer Mounting structure

required per KW powerMore Mountingstructures required

13) Land Requirement Lesser space required perMW

Largest spacerequirement

14) Inverter High inverter flexibility Limited inverterflexibility

15) Cost High cost per Watt Lower cost per Watt16) Environment

EffectsLess Sensitive Sensitive

17) Stabilization Stable power output fromat initial stages

Stability achieved after4-6 months

18) Availability Easily available Limited supply19) Health hazards Made from non toxic

material (Si)Toxic materials used(CdS, CdTe)

20) Power Degradation Less degradation Highest degradationfor initial 5-7 years

21) Plant Maintenance Less maintenancerequired after installationso lower cost

Highest maintenancerequired, so highestmaintenance cost




Sr. No. Parameter Crystalline Thin Film22) Repair Relatively easy Difficult due to complex

structure23) Cooling

RequirementNot required Not required

24) Cabling Well known, and lowercabling losses

Well Understood but yetdifficult due to highernumber of arrays, alongwith high cabling losses

25) Suitability for GridTechnology

Good Good

7.4 TECHNOLOGY SELECTED FOR PROJECT

the technology which should be selected should have the higher efficiency so thatmaximum capacity can be installed.

Monocrystalline technology is the well proven technology in the field of Solarenergy and hence selected for the project.

7.5 SOLAR RADIATION – AT PROJECT SITE

Tilted Flat Plate Collectors: Latitude Tilt Irradiance (TILT)Annual Average: 5.88 kWh/m sq Monthly Average in kWh/m sqJan 4.75Feb 5.50Mar 5.97Apr 6.54May 6.65Jun 6.37Jul 5.26Aug 5.25Sep 6.24Oct 6.93Nov 6.12Dec 4.96




For fixed modules generation will be maximum at the tilt of the angle of latitude.i.e.28o.

Generation can be increased by providing manual tilting (or seasonallyadjusted) twice a year. Solar panels should always face true south tilted from thehorizontal at a degree equal to your latitude plus 15 degrees in winter or minus 15degrees in summer.

7.6 SOLAR POWER GENERATION

A solar photovoltaic module is constructed from individual solar cells. The solarcells are hermetically sealed between glass and Tedlar and EVA sheets at therear.

To carry the same power a higher system voltage is advantageous since thesystem then needs to carry relatively lower current. This reduces the crosssectional area of the conductors. The lower current reduces the cable losses. Ahigher system voltage is created by connecting the solar PV modules in series.

The modules connected in series are known as strings. The strings areconnected to the String Junction Boxes (SJBs) and the SJBs are connected intothe Panel Junction Boxes (PJBs) and PJBs are connected to the Array JunctionBoxes (AJBs). The AJBs are connected to the Main Combiner Box which acts as theMain DC Collecting Unit which feeds the DC power to the PCUs to beconverted to AC power supply.

The 5.00 MWp circuit will consist of 20 numbers of 250 KW PCUs. Each PCU islikely to have about 900 modules (230 Wp Crystalline module of Websol make).Advantage of using a central inverter (instead of string inverters) is that themodule fields are less sensitive towards partial shading which is generally thecase with String Inverters. Due to higher system voltage the central inverters alsoreach very high efficiency level.

The AC power from the PCUs are fed into lower voltage panel and then to thetransformers through isolators and circuit breakers. The secondary side of thefinal transformer is routed through a high voltage panel, fitted with necessarymeasuring and protection devices, before connecting to the grid.




Chapter - 8

DESIGN OF POWER PLANT ELECTRICAL& MECHANICAL




8.1 PROJECT DESIGN

The major equipments and materials associated with 5.00 MWp grid connectedsolar power plant are;

o Solar module of composite 5MWp capacity including mounting frames,structure and interconnection cables.

oArray Junction Boxes and Main Junction Boxes.o Power Conditioning Units (PCU).o LT Switch gear interface Panel.o 415V/11KV Generation Transformer and associated switch gear.oHT Switch Gear Panel with protection, indication and measuring instruments.o Earthing system for DC and AC systems.oData Acquisition system with remote monitoring facilities.

The total capacity of the 5 MWp solar power plant is divided into sub arrays of230kWp solar power capacity to feed into the 250KW rating power conditioning units.24V, 280Wp monocrystalline solar modules 18200 nos used for this project,connecting 100 nos in series and such 910 strings in parallel using Array Junctionboxes and Main Junction boxes. Array Layout is attached as annexure VIII.

The data sheet of PV module is attached as annexure IX

The Junction boxes shall be dust, vermin and water proof; each array junctionboxes shall have suitable reverse blocking diodes and MCB’s for surgeprotection. These solar modules are mounted on single module mountingstructures specially designed for fixing over Kalzip railings. The outputs of theMain Junction Boxes connected to the Power Conditioning Units (PCU) forconverting the DC power into AC power and then export the solar energy into thegrid through LT panel, Transformer and HT Panel.

The PCU’s automatically turn on and off successively sensing the availability ofgrid power and the solar irradiation varies over the day. PCUs convert the DCoutput of the photovoltaic arrays into the three phase AC power using reliable,high efficiency IGBT as the primary switching devices. The PCU’s having all thenecessary automatic synchronization equipments built inside to sync with gridand export the solar energy. The PCU’s has the built in Isolation transformer toprovide the galvanic isolation when solar array is grounded and it allow theinverter to match the voltage of utility grid. The specification sheet of the PCUconsidered is attached as annexure X

The output of the PCU’s connected to the LT panel trough suitable incomingbreaker, measuring instruments, selector switches and mimic diagram. Theoutput of LT interface panel connected by bus duct to the 0.415/11KV step upTransformer. The generation transformer shall be having all the requiredmonitoring and protection equipments. The output of transformer connected to thefully draw out type HT panel and HT vacuum circuit breaker. HT panel is built withprotective relays, auxiliary relays, control switches, indicating lamps,enunciators and mimic diagram. The output of the HT panel shall be connected to




the utility grid point with required metering panel for grid export.

All the equipments like solar array, Junction boxes, PCU, LT Panel, Transformerand HT panels are suitably earthed using copper earth pits. Earthing in generalshall cover equipment earthing, system neutral earthing and static lightning-protection

The computer aided data acquisition system provided to continuously monitorand record the various parameters of solar power plant both on DC and AC side.This data shall be saved in the local PC and same can be controlled fromremotely through the telephone line.

The data acquisition system shall measure and continuously recording of thefollowing parameters –

o Control room temperatureo Ambient air temperature near Array fieldo Module back surface temperatureo Wind speed at the level of Array Plane (V) Solar irradiation incidental to Array Planeo Inverter Outputo System Frequencyo DC Bus Outputo Energy Delivered to the GRID in KWho Generated Output in KWhrs.

All data shall be recorded chronologically date wise. The data file shall be MSexcel compatible. The data logger shall have internal reliable battery backup torecord all sorts of data simultaneously round the clock. All data shall be stored in acommon work sheet chronologically. All the data shall be represented ingraphics mode or in tabulation mode in the computer screen.

8.2 SUITABILITY OF SPV POWER PLANT UNIT TO OPERATE IN PARALLEL WITHGRID

It is important that the SPV power plant is designed to operate satisfactorily inparallel with the grid under extremely high voltage and frequency fluctuationconditions, so as to export the maximum possible units to the grid.

It is also extremely important to safeguard the system during major disturbances,like tripping/pulling-out of big generating stations and sudden overloading duringfalling of portion of the grid loads on the power plant unit in island mode, underfault/feeder tripping conditions.

The exportable power from the plant shall be evacuated by stepping-up thepower from 415 V to 11 kV through a 415 V/ 11 kV, 1.25 MVA transformers.

Trivector meter that will be provided in the plant’s control building or as perBRPL’s requirement and will have main & checking arrangement, and these shall be




agreed upon with the BRPL. The tariff meters shall register import as well as exportparameters.

8.3 SAFETY REGULATIONS

Statutory regulations on safety measures shall be strictly followed. Safetyappliances, viz. fire extinguishers, sand buckets, earth rods, gloves, rubber mats,danger sign boards, safety regulation charts, etc. shall be procured and installed asper safety norms.

Oil collection pits and soak pits for the transformers shall also be constructed. Allcables in switchyard shall be neatly laid/ dressed and shall be barricaded insidetrenches along the length with fire proof bricks.

Suitable provisions shall be made for installing a fire hydrant system at the SPVPower Plant premises. The arrangement shall also include supplyof uninterrupted water supply from the nearest fire hydrant point to the power

plant area.




Chapter - 9

DESIGN CRITERIA




9.1 SOLAR PV MODULES

PV modules considered are with minimum declared output of 230 Wp. Number ofmodules to be supplied shall be worked out accordingly. Stabilized output of theSolar PV Array for the Power Plant should not be less than 5.00 MWp underStandard Test Condition after one year of operation. Modules for Power Plantshall be made of mono crystalline silicon. The SPV Modules must be tested &certified by an independent international testing laboratory.

The module frames shall be made of corrosion resistant material, which shall beelectrically compatible with the structural material used for mounting themodules.

The module shall be provided with a junction box with provision of external screwterminal connection and with arrangement for provision of by-pass diode. Thebox should have hinged, weatherproof lid with captive screws and cable glandentry points.

9.2 MODULE MOUNTING STRUCTURE

The structure shall be designed to allow easy replacement of any module. Thestructure shall be designed for simple mechanical and electrical installation. Itshall support SPV modules at a given orientation, absorb and transfer themechanical loads to the ground properly.

The array structure shall be so designed that it will occupy minimum spacewithout sacrificing the output from SPV panels; at the same time it will withstandsevere cyclonic storm with wind speed up to maximum 200 km per hour. Nut andbolts and supporting structures including Module Mounting Structures shall have tobe adequately protected with atmosphere and weather prevailing in the area.

The legs of the structures with appropriate strength will be fixed on the rooftop,while designs due consideration will be given to weight of module assembly,maximum wind speed of 200 km per hour, without providing any harm to therooftop

9.3 BALANCE OF SYSTEMS

9.3.1 Junction Box

The junction boxes shall be dust, vermin, and water-proof. The terminals will beconnected to copper bus-bar arrangement of proper sizes to be provided. Thejunction boxes will have suitable cable entry points fitted with cable glands ofappropriate sizes for both incoming and outgoing cables. Suitable markings shall beprovided on the bus-bars for easy identification and cable ferrules will be fitted atthe cable termination points for identification.

Each Array Junction Box will have Suitable Reverse Blocking Diodes of




maximum DC blocking voltage of 600 V with suitable arrangement for itsconnecting. The Array Junction Box will also have suitable surge protection.

The Junction Boxes shall have suitable arrangement for the following:oCombine groups of modules into independent charging sub-arrayso Provide arrangement for disconnection for each of the groupso Provide a test point for each sub-group for quick fault locationo To provide group array isolationo The current carrying rating of the Junction Boxes shall be suitable with

adequate safety factor to inter connect the Solar PV array.

9.3.2 Power Conditioning Unit (PCU) with Synchronization Circuitry

PCU should be having efficiency levels of 95% and above. Each inverter shall bewith minimum capacity of 250kW. The output power factor of the PCU should be ofsuitable range to supply or sink reactive power. The PCU shall have internalprotection arrangement against any sustained fault in feeder line and lightning infeeder circuit. The PCU should be three phase static solid state type powerconditioning unit. Both AC & DC lines shall have suitable fuses and contactors toallow safe start up and shut down of the system. Fuses used in the DC circuitshould be DC rated. The PCU shall have provision for input & output isolation.

PCU shall have arrangement for adjusting DC input current and should tripagainst sustainable fault downstream and shall not start until the fault is rectified.

PCU front panel shall be provided with display (LCD or equivalent) to monitor thefollowing:

oDC power inputoDC input voltageoDC currentoAC power outputoAC voltage (all the 3 phases and line)oAC current (all the 3 phases and line)o Power factor

Provision should be available in the PCU for Remote Monitoring of all theparameters mentioned under paragraph above and other important data.

9.4 LT POWER INTERFACING PANEL

The Panel shall have adequate inputs to take in from individual PCUs andadequate outputs to individual transformers.

The Panel shall be floor mounted type. All the measuring instruments such asvoltmeter, ammeter, frequency meter, Electronic Energy Meter (for measuring thedeliverable units for sale), selector switches, Mimic front panel will be




present.

9.5 COMPUTER AIDED DATA ACQUISITION SYSTEM

Computer Aided Data Acquisition Unit shall have features for simultaneousmonitoring and recording of various parameters of different sub-systems, powersupply of the Power Plant at the DC side and AC side.

The unit shall be a separate & individual system comprising of differenttransducers to read the different variable parameters, A/D converter, Multiplexer,Demultiplexer, Interfacing Hardware and Software. Reliable sensors for SolarRadiation, Temperature and other Electrical Parameters are to be supplied with thedata logger unit.

The data acquisition system shall perform the following operations, which includethe measurement and continuous recording of:

oAmbient Air Temperature near Array FieldoControl Room TemperatureoModule Back Surface TemperatureoWind Speed at the level of Array Planeo Solar Radiation incidental to Array Planeo Inverter Outputo System FrequencyoDC Bus outputo Energy delivered to the GRID in kWh

All data shall be recorded chronologically date wise. The data file should be MSExcel compatible. The data logger shall have internal reliable battery backup torecord all sorts of data simultaneously round the clock. All data shall be stored in acommon work sheet chronologically.

Representation of monitored data in graphics mode or in tabulation form. Allinstantaneous data can be shown in the Computer Screen Provision should beavailable for Remote Monitoring through GPS system.

9.6 LIGHTNING & OVER VOLTAGE PROTECTION

The SPV Power plant should be provided with Lightning and over voltageprotection. The main aim of over voltage protection is to reduce the over voltage toa tolerable level before it reaches the PV or other sub-system components.

The source of over voltage can be lightning or other atmospheric disturbance. TheLightning Conductors shall be made as per applicable Indian Standards in orderto protect the entire Array Yard from Lightning stroke.

Necessary concrete foundation for holding the lightning conductor in position will




be made after giving due consideration to maximum windspeed and maintenance requirement at site in future.

Each Lightning Conductor shall be fitted with individual earth pit as per requiredStandards including accessories, and providing masonry enclosure with cast ironcover plate having locking arrangement, watering pipe using charcoal or coke andsalt as

per required provisions of IS. Shall ensure adequate lightning protection toprovide an acceptable degree of protection as per IS for the array yard. Ifnecessary more numbers of Lightning conductors may be provided.

9.7 EARTHING SYSTEM

9.7.1 LT Side

The earthing for array and LT power system shall be as required as perprovisions of IS. Necessary provision shall be made for bolted isolating joints ofeach earthing pit for periodic checking of earth resistance. Each Array structure ofthe SPV Yard shall be grounded properly.

The array structures are to be connected to earth pits as per IS standards. Theearthing for the power plant equipment shall be made as per provisions of IS.Necessary provision shall be made for bolted isolating joints of each earthing pitfor periodic checking of earth resistance.

The complete earthing system shall be mechanically and electrically connected toprovide independent return to earth. All three phase equipment shall have twodistinct earth connections. An Earth Bus shall be provided inside the controlroom. For each earth pit, necessary Test Point shall have to be provided.

In compliance to Rule 33 and 61 of Indian Electricity Rules, 1956 (as amended upto date), all non-current carrying metal parts shall be earthed with twoseparate and distinct earth continuity conductors to an efficient earth electrode.

9.7.2 HT Side

The 11 KV side equipments and parts shall be earthed as required as perprovisions of IS.

9.8 ENERGY METER

An Energy Meter shall be provided as approved by the Utility company tomeasure the delivered quantum of energy to the GRID for sale. Meter must beprovided with the necessary data cables.

9.9 PROTECTIVE RELAYS

The SPV system and the associated power evacuation system shall be protected as perIndian Standards. Over Current Relays, Reverse Power Relays and Earth fault Relays are




the minimum requirements.

9.10 POWER EVACUATION ARRANGEMENT

9.10.1 415 Volts / 11 kV and 11 KV / 66 KV Transformers

Adequate capacity Transformer/s shall be provided to step up the Voltage from 3 ph,415 Volts, 50 Hz output of the PCUs to 11 kV level to be evacuated at PSEB grid.

Transformers shall be of reputed make and should have relevant IS orinternational certifications. Transformers shall have all relevant monitoring andprotection devices as per the relevant Indian Standards.

The Transformer manufacturer shall provide Test Certificates carried out on theTransformers as per relevant IS standards.

9.10.2 Circuit Breakers and Other Isolators and Protective and MeteringArrangements

Appropriate Circuit breakers and Isolators shall be provided as per the relevantIndian Standards and IE rules.

The system shall be designed with appropriate CTs & PTs to have all relevantprotection arrangements like Reverse Power, Over Current, Earth fault relays etc. Inaddition CTs and PTs shall also be provided for metering purposes as elsewherespecified.




Chapter - 10

CONSTRUCTION MATERIAL –REQUIREMENT, AVAILABILITY AND

SUITABILITY




10.1 MATERIALS

The major items involved are:

o Solar PV Power Planto Power Evacuation System at Power Plant

10.1.1 Solar PV Power Plant

The Power Plant consists of mainly SPV modules, PCUs and other balance ofsystems (BOS). One of the key decisions to be made here is on the technology ofthe SPV modules. Brief description of the technologies available and therespective merits and de-merits is given under Chapter 5.

Monocrystalline module has been selected for the project.

10.1.2 Power Evacuation System at Power Plant

The materials required here are of standard power evacuation hardware to bedeployed for 1.00 MWp power evacuation.

The main equipments under consideration are transformers (415 V / 11 kV),VCBs and Isolators in addition to instrument transformer (CTs and PTs) andmetering arrangements.

10.2 PROCUREMENT PROCESS

FED SOLAR w i l l float tender for selection of EPC contractor.

10.3 BILL OF MATERIALS

The following bill of materials is proposed for the SPV 5 MW Plant.

Sr. No. Particulars Unit Quantity1 24 V, 280 Wp Mono Crystalline SPV Module EA 182002 250 Module Mounting Structures Lot 53 250 KW Inverter EA 24 Array Junction Box 5 in 1 out EA 2006 Main Junction Box 5 in 1 out EA 40




7 1C 4sqmm PVC sheathed Cable Lot 58 2C 10sqmm PVC sheathed Cable Lot 59 2C 120sqmm PVC sheathed Cable Lot 5

10 11KV ,400A outdoor Type GO switch, along withstructure, DO fuse,11KV LA Nos. 5

1111/0.433 kV, 1250 KVA Dry, Dyn 11, With OffCircuit Tap Changer (+/-5% in steps of 2.5%)Transformer tag No. TRF –1, 2) Nos. 5

12 UPS System for charging battery Nos. 5

13 11 KV combined CT-PT unit with class 0.2,CTR150/1A,PTR:11KV/110V,10VA Nos. 5

14 11 KV ,600A,50Hz,26.5KA for 1sec,Vacuum / SF6type HV C.B. Nos. 5

15Switchgear floor mounting ,indoor type comprisingprotection as per SLD. Incoming switchgear panelwith Line PT Nos. 5

16 Outgoing Transformer feeder Nos. 517 Bus PT Nos. 5

18 415V, 2000A, 3ph, TPN, 50Hz,50 KA for 1 sec,single front, drawout LT Panel Nos. 5

19 DC SYSTEMInstallation of 110 V DC supply system forSwitchgear control complete with battery charger,Lead Acid Batteries, DCDB, and other accessories.The complete system will be located in Substation Lot 5

20 HT & Switchgear Cabling Lot 521 Cable trays, trench and accessories Lot 522 Lighting distribution board Nos. 523 Array LA EA 10024 Earthing Kit Set 15025 GIStrip M 500026 6 spmm GI Wire M 1250027 SCADA system for monitoring Nos. 1

10.4 LIST OF SPARES

List of spares Reliance is providing along with above materials are as follows:

Sr. No. Particulars Unit Quantity1 24 V, 280 Wp Mono Crystalline SPV Module Nos 502 4 sqmm terminal blocks Nos 1003 PCB boards for PCU Nos 104 Control Fuses Nos 256 Pilot Lights Nos 257 MCBs Nos 10




Chapter - 11

CONSTRUCTION METHODOLOGY ANDEQUIPMENT PLANNING




11.1 OVERVIEW

This section of the report outlines the operation and maintenance philosophy to beadopted for the proposed grid connected SPV power plant. These broad outlines,given here, will provide useful guidelines for the basic and detailed engineering ofthe plant, so that all the requirements of the operation and maintenance of theplant are met and provided for in the engineering stage itself.

The production of power from SPV plant is generally a static affair with no movingparts. The SPV array produces electricity by deploying SPV modules which arewarrantied for 10 years on product workmanship, for 12 years on performance ofpower not less than 90 % of the nominal power and for 25 years on performance ofpower not less than 80 % of the nominal power. Once properly selected andinstalled these require no major maintenance. The DC power produced by the arrayis converted into AC power by a battery of PCUs which need some attention becauseof electronics involved.

The AC output at 415 V level is stepped up 11 kV by a set of transformers. Thesetransformers and associated switch gear need proper preventive maintenance. Themost important aspect of the system which needs proper monitoring is thesynchronizations which ensure the availability of power to the grid. Single LineDiagram of the project is attached as annexure XI

11.2 SYSTEM DESIGN PHILOSOPHY

The main O&M objective is the high availability and reliability of the plant. In order toachieve the main objective, the following principles would be adopted.

o Building up adequate capacity to ensure generation of power as per designestimates. This is done by applying liberal de-rating factors for the array andrecognizing the efficiency parameters of PCUs, Transformers, Transmissionlines, etc.

o Providing redundancy to ensure at least 50% availability in case of major breakdowns of transformers.

oUse of equipment and systems with proven design and performance that have ahigh availability track record under similar service conditions.

o Selection of the equipment and adoption of a plant layout to ensure ease ofmaintenance.

o Strict compliance with the approved and proven quality assurance norms andprocedures during the different phases of the project.

The basic and detailed engineering of the plant will aim at achieving highstandards of operational performance especially with respect to the following keyparameters:

oOptimum availability of modules during the day timeo Ensuring module layout to prevent shadingoHigh DC system voltage and low current handling requirementso Selection of PCUs with high track record




o Selection of transformers with low maintenance requirements




The plant instrumentation and control system should be designed to ensure highavailability and reliability of the plant to assist the operators in the safe andefficient operation of the plant. It should also provide for the analysis of thehistorical data and help in the plant maintenance people to take up the plant andequipment on preventive maintenance.

11.3 OPERATION REQUIREMENTS

The operation of the plant starts with the commissioning. In broad termscommissioning can be defined as setting up of the plant to work safely and onprogram. It is necessary to ensure that all equipment is completely erected beforeoperations begin. Although this may be considered difficult, the other extreme ofoperating a plant with insufficient instrumentation, controls, and alarms is verydangerous. Although some compromise can be made with regard to plant completion,the commissioning procedures should never compromise personnel and the systemsafety.

A proper checklist procedure must be drawn up, which would include all thesections of the plant and shall take into account the contractual responsibilities, thetechnological relationship between the various sections, pre-commissioning, cleaningrequirements, etc.

The checklists procedure helps in the following:

o To ensure that the necessary checks are carried out on each item of the plantbefore it is put into commercial service

o To ensure that energy is supplied to grid when it is safe to do soo To facilitate the recording of the progress on the various commissioning activitieso To provide a basis for the plant history

The operation of the power plant unit interconnected to the grid is an activity that mustbe properly coordinated, within the plant as well as with the grid to which the plantfeeds power. Operation in parallel with the grid eventually makes the SPV power planta part of the PS EB s utility system and hence the power plant must assume some ofthe same responsibilities of PS EB . With this, the PS EB ’s local dispatch center willneed to monitor the incoming power from the SPV power plant on a continuous basis.

An important feature of the modern power generating plant is the automaticsafety lock-out devices. While sufficient thought goes into it at the design stage, itremains the responsibility of the operating staff to ensure that the safety devices are setcorrectly and kept in operation.

While safety of the plant and personnel is the foremost importance in theoperation, the efficient operation of the plant cannot be ignored. While operating, it isimportant to check the essential parameters of the plant and equipment to ensure thatthe plant performance is at the optimum level. Any variations in the operatingparameters or any deviations from normal performance of the equipment orplant shall have to be analyzed immediately to diagnose the problem and to take




remedial measures to bring back the plant and equipment to its original parameters.

The plant operator should follow the guidelines given below:

o Frequent checking and calibration of instruments;o Developing a habit of cross checking instrument indications with each other to

determine whether the instrument is faulty or there is an abnormal operatingcondition;And developing a habit of analyzing indicated data to determine accurately whatcould be wrong.

11.3.1 Evacuation of power generated by the SPV power plant

It is important to recognize that:

o Generation voltage of 415 V has to be stepped up to 11 kV at the high voltageside of the transformer to match the grid voltage at the point of interconnection.

o The power plant has to operate in parallel with the grid system which is a vastpower carrier. The power plant has to protect its equipment against possiblefaults or other disturbances from the grid.

11.4 MAINTENANCE REQUIREMENTS

Regular maintenance of the SPV Power Plants (5.00 MWp grid connected withassociated power evacuation system) for a period ten years after commissioning as andwhen necessary and submission of daily performance data of the power plant. Thecontractor shall keep a Record Book in this respect clearly indicating date of checking& comments for action etc.

Normal and preventive maintenance of the Power Plant such as cleaning of modulesurface, tightening of all electrical connections, Line accessories, Transformersand associated switch gear on the HT side. Cleaning of the Power Plant including arrayYard/Shed on regular basis and as and when required.

Keeping & recording daily log sheet as per approved format for the Power Plant as performat to be supplied after commissioning of the Power Plant.

Operation of the Power Plant is in accordance with the availability of Solar Energyand feeding to the grid. Under no circumstances, the operator shall run the powerplant damaging the substation grid.

Contractor's employees shall use no part of the power plant building forresidential or any other purpose except for running the plant.

The supplier shall submit monthly Performance report of SPV Power Plantindicating cumulative energy generation data as per approved format within 15 daysof the following month.

The supplier shall preserve all recorded data in either manually or throughcomputer and shall submit to PSEB quarterly.




11.5 PREVENTIVE MAINTENANCE (SPECIFIC GUIDELINES)

This shall be done by the Supplier regularly and shall include activities such ascleaning and checking the health of the SPV system, cleaning of module surface,tightening of all electrical connections, and any other activity that may berequired for proper functioning of the SPV system as a whole. Necessarymaintenance activities, Preventive and Routine for Transformers and associated switchgears also shall be included.

Performing routine and non-routine maintenance on the solar facility during and afterthe EPC warranty period;

Operating the solar facility:o Providing all materials and services necessary for solar facility

maintenance;o Monitoring the operations of the Project via the computer monitoring

system;o Performing all duties to the standard mandated by the PPA;o Complying with all regulatory obligations;o Developing operating and safety plans;o Maintaining all Project information and facility data, including providing

reports to the Company.

Solar photovoltaic systems are highly reliable and require minimal maintenance. Severalmaintenance activities need to be completed at regular intervals during the lifetime ofthe system




Table 8 shown below is a list of key activities planned for preventive maintenance in thisproject.

Table 8: Key activities planned for preventive maintenance

EverySemi 10

Activity Continuous Annually Annually Years Maintenance Action

Check solar Display ascompared with solarinsolation

Remote monitoring System withcritical alarms based on comparingsets of data

Cleaning of Module by waterspraying for removal of dustdeposited

Visual inspection regularl y. Cleaningon monthl y basis or as and whenrequired

Review array output, currentand voltage to verify poweroperation

More Substantial, on-site check in arandom pattern to verify computeroutput

Watch for Shading by trees,weeds, other obstructions

Particularly for gr ound-mountedsystem, vegetation growth can varyfrom year to year

Inspect the PV array surfacefor excessive dirt or debris(bird dropping, leaves, etc.)

If rainfall is not expected to remo veany accumulation, the surface will becleaned wi th a gentle rinse withplain water or mild detergent

Inspect the PV modules forcrack/damage Preventive maintenance check

Inspect the PV modules fordiscoloration/cloudiness Preventive maintenance check

Inspect the entire system forloose of damaged wiring

Preventive maintenance check, easy torepair on site

Inspect inverter and cleanany filters or vents to ensureunrestricted airflow

Preventive maintenance check, easy torepair on site

Repair InverterBudgeted to have more overhaulsonce every 10 years




Chapter - 12

CONSTRUCTION PROGRAMME ANDSCHEDULE




.12.1 PROJECT IMPLEMENTATION STRATEGY

The most essential aspect regarding the implementation of this SPV powerproject is to ensure the project completion within the schedule, spanning forseven months from the commencement date.

A good planning and monitoring methodology is essential to complete the projecton time. It is expected that the project execution will take at least 4 months fromcommencement to commissioning of SPV power plant.

12.1.1 Essential Functions of the Project

The overall project activities for the SPV power plant divided into sub packages asgiven below. The split of supplies is as follows:o Supply, erection, installation and commissioning of lightning arrestors.o Supply, erection, installation of SPV modules on structures. Supply, erection,

installation and testing of PCUs. Interconnection ofequipments and commissioning of the power plant (deliver 3 Ph, 415 V AC

supply and combining the outputs of 20 nos. of PCUs). Completion ofearthing system before commissioning. Supply, installation andcommissioning of data monitoring system.

o Supply, erection, installation, interconnection and commissioning ofpower evacuation system consisting of isolators, circuit breakers,transformers and transmission line along with commissioning of metering andprotection system.

o Actualize grid feed-in by synchronizing SPV power supply with 11 kV PSEBgrid supply.

o Acceptance test of metering system and energy sale.

12.2 PROJECT EXECUTION

The execution will be planned, monitored and controlled through projectmanagement techniques employing MS-Project (PERT – CPM Charts). Aprovisional time line of the project is given in annexure XII.

12.3 PROGRESS REPORTING

Progress reviewing and monitoring will be done by the Project Manager andperiodic reports highlighting the activities completed, areas of concern, andcorrective actions taken, etc., will be sent to PWD on regular basis.




Chapter - 13

PROJECT ORGANIZATION




13.1 STAFF

Depending on the O&M requirements the firm will make necessary arrangements forproper implementation of O&M.

This will be through direct presence of the firms staff or through their localtechnology partners.

Typically, the power plant will be under the charge of an engineer supported byadequate staff for security and O&M.

Exact origination structure and the number of staff will depend on the siteconditions which will be assessed during the implementation of the project.

13.2 TRAINING

During the commissioning of the plant, training will be imparted to the Engineer,Supervisor and Operators.

This operational training shall cover the following:

o The nature, purpose and limitations of all plant and equipmento The detailed operating instructions on each section and equipment of the planto Normal startup and shutdown program for the planto The emergency procedures and all related HSE issues according to the

standards

The basis for the training shall be the plant’s O&M manual.




Chapter - 14

ENVIRONMENTAL AND ECOLOGICAL ASPECTS




14.1 ENVIRONMENTAL IMPACT

It is well recognized that, for sustainable development and optimal use of naturalresources, environmental considerations are required to be integrated inplanning, designing and implementation of development projects.

The envisaged benefits from development projects can be fully realized only ifthey are environmentally sustainable and socially sound.

The environmental impacts can be categorized as either primary or secondary.Primary impacts are those that are attributed directly by the project, secondaryimpacts are those which are indirectly induced and typically include theassociated investment and changed patterns of social and economic activities bythe proposed action.

The proposed solar power project would create an impact on the environment intwo distinct phases:

o During the construction phase ando During the operation phase which would have long term effects.

14.2 IMPACTS DURING CONSTRUCTION

The impacts envisaged during the construction of the proposed plant are:

Impact on Soil

o There is no negative effect of the proposed project on the soil, since theproject is installed at rooftop.

Impact on Terrestrial Ecology

o There is no negative effect of the proposed project on the terrestrialecology of the area.

Impact on Aquatic Ecology

o There is no tank, lake, river or surface water body very close to the projectsite.

Hence no impact is envisaged in the construction phase on the aquaticecology of the area.

Demography and Socio –Economics

o The establishment of the project will prove beneficial to thepopulation neighboring the site. There will be a marginal increase inthe employment of some persons living nearby both at the time ofconstruction as well as during operation.




Traffic and Traffic Hazards for Access Roads

o During construction phase, the construction material, equipment &machinery and labour will be transported to the site and this willincrease the volume of traffic on access roads. However this effectwill not be very significant in view of the fact that the constructionactivities is already in progress for the development of Stadium andwill be spread over a period of 4 months.

o The impacts during the construction phase are regarded astemporary or short term and hence do not have an everlasting affecton the soil, air, noise or water quality of the area.

o The impact from the construction phase is not envisaged to beserious.

14.3 IMPACTS DURING OPERATION

The operational phase will involve power generation using solar energy. Thefollowing activities in relation to the operational phase will have varying impact onthe environment and are considered for impact prediction.

Impact on Air Quality

o The existing status of the ambient air quality of the area will not beaffected by the project. As all Renewable Energy projects areenvironment friendly.

Noise

o Solar Power projects are noise free during operation.




Chapter - 15

COST ESTIMATE




15.1 PROJECT COSTING

The costing details for the project includes the cost of the following majorelements

oCivil, Electrical & Mechanical Worko Solar PV Power Planto Power Evacuation SystemoConsultancy feesoContingencieso Interest during Construction

The actual cost for the system as quoted by M/s SUN Energy Eur ope hasbeen considered for the financial analysis. Cost break up of the project is givenbelow in Table 9.

S No ParticularsCapital Cost Norm for

Solar PV project

1 Land Cost 0.75

2 Civil and General Works 4.50

3 PV Modules 50.95

4 Mount ing Structures 5.00

5 Power Conditioning Unit 10.00

6 Evacuation Cost upto Inter -connection Point 40.25

7 Preliminary and Pre-Operative Expenses 9.05

8 Total Capital Cost 84.50




Chapter - 16

FINANCIAL AND ECONOMIC EVALUATION

Detailed Project Report – 5.00 MW Solar PowerCORPORATE KNOWLEDGE PARTNERS

16.1 FINANCIAL ANALYSIS ASSUMPTIONS

The project under study envisages installation of 5 .00 MWp Grid InteractiveSolar Photovoltaic power plant at G u r d a s p u r , P AN J A B .

The viability of the project is based on the generation of the energy, which hasbeen obtained from RET screen International – Clean Energy Project AnalysisSoftware results which on back end consider past twenty two years of averagesolar radiation data available at NASA website for the project site location.

Average annual generation is estimated as 8.33 MU considering monocrystalline modules for first year and every next year with the degradation of0.5%.

Levellised tariff for the project is calculated at discounting factor of 16.6%as provided by CERC for solar PV power projects.

The debt equity ratio considered is 70:30 for the funding of the project.

Return on equity is considered as 19 % for first 10 years and 24 % for next 11th

to25th years.

The fund required from the government for the project is expected to be repaidwithin a period of 10 years after construction period of 1 2 months. Term loan isproposed to be repaid in 36 equal quarterly installments, considering 1st year asmoratorium period.

Interest rate for term loan is considered as 1 2 .5 % per annum and sensitivityanalysis has been done for the interest rate of 10 % and 14 %.

The total life of the project is considered as 25 years.

Depreciation has been worked out as per CERC guidelines after having 10 %salvage value.

The CDM benefits available would certainly improve the financials of the project.It is a clear benefit of the project, which is strengthening the repayment capacity aswell other financial parameters. It is estimated that about 7689 tonnes of CO2

emission is reduced (i.e. 7689 CER is generated). Grid Emission factor forNorthern Grid is 0.923.

CER revenue is being considered as per the existing KYOTO Protocol. CERsselling rate considered as 12 Euro per CER and foreign exchange rate as Rs 65 perEuro as per the current scenario. Estimated Revenue generation is Rs 55.36 Lacsper annum.


16.2 PROJECT FINANCIALS

Levelized tariff is worked out as Rs 17.41 / kWh. This tariff is considered for 25years in financial analysis.

ANNEXURES


Annexure - I

JAWAHARLAL NEHRUNATIONAL SOLAR MISSION

of 15

Jawaharlal Nehru National Solar Mission

Towards Building SOLAR INDIA

1. Introduction

The National Solar Mission is a major initiative of the Government of India and StateGovernments to promote ecologically sustainable growth while addressing India’senergy security challenge. It will also constitute a major contribution by India to theglobal effort to meet the challenges of climate change.

In launching India’s National Action Plan on Climate Change on June 30, 2008, thePrime Minister of India, Dr. Manmohan Singh stated:

“Our vision is to make India’s economic development energy-efficient. Over a periodof time, we must pioneer a graduated shift from economic activity based on fossilfuels to one based on non-fossil fuels and from reliance on non-renewable anddepleting sources of energy to renewable sources of energy. In this strategy, the sunoccupies centre-stage, as it should, being literally the original source of all energy.We will pool our scientific, technical and managerial talents, with sufficient financialresources, to develop solar energy as a source of abundant energy to power oureconomy and to transform the lives of our people. Our success in this endeavour willchange the face of India. It would also enable India to help change the destinies ofpeople around the world.”

The National Action Plan on Climate Change also points out: “India is a tropicalcountry, 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 theadvantage of permitting the decentralized distribution of energy, thereby empoweringpeople at the grassroots level”.

Based on this vision a National Solar Mission is being launched under the brandname “Solar India”.

2. Importance and relevance of solar energy for India

1. Cost: Solar is currently high on absolute costs compared to other sources ofpower such as coal. The objective of the Solar Mission is to createconditions, through rapid scale-up of capacity and technological innovation todrive down costs towards grid parity. The Mission anticipates achieving gridparity by 2022 and parity with coal-based thermal power by 2030, butrecognizes that this cost trajectory will depend upon the scale of globaldeployment and technology development and transfer. The cost projectionsvary – from 22% for every doubling of capacity to a reduction of only 60% withglobal deployment increasing 16 times the current level. The Mission

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recognizes that there are a number of off-grid solar applications particularlyfor meeting rural energy needs, which are already cost-effective and providesfor their rapid expansion.

2. Scalability: India is endowed with vast solar energy potential. About 5,000trillion kWh per year energy is incident over India’s land area with most partsreceiving 4-7 kWh per sq. m per day. Hence both technology routes forconversion of solar radiation into heat and electricity, namely, solar thermaland solar photovoltaics, can effectively be harnessed providing hugescalability for solar in India. Solar also provides the ability to generate poweron a distributed basis and enables rapid capacity addition with short leadtimes. Off-grid decentralized and low-temperature applications will beadvantageous from a rural electrification perspective and meeting otherenergy needs for power and heating and cooling in both rural and urbanareas. The constraint on scalability will be the availability of space, since in allcurrent applications, solar power is space intensive. In addition, withouteffective storage, solar power is characterized by a high degree of variability.In India, this would be particularly true in the monsoon season.

3. Environmental impact: Solar energy is environmentally friendly as it haszero emissions while generating electricity or heat.

4. Security of source: From an energy security perspective, solar is the mostsecure of all sources, since it is abundantly available. Theoretically, a smallfraction of the total incident solar energy (if captured effectively) can meet theentire country’s power requirements. It is also clear that given the largeproportion of poor and energy un-served population in the country, everyeffort needs to be made to exploit the relatively abundant sources of energyavailable to the country. While, today, domestic coal based power generationis the cheapest electricity source, future scenarios suggest that this could wellchange. Already, faced with crippling electricity shortages, price of electricitytraded internally, touched Rs 7 per unit for base loads and around Rs 8.50 perunit during peak periods. The situation will also change, as the country movestowards imported coal to meet its energy demand. The price of power willhave to factor in the availability of coal in international markets and the cost ofdeveloping import infrastructure. It is also evident that as the cost ofenvironmental degradation is factored into the mining of coal, as it must, theprice of this raw material will increase. In the situation of energy shortages,the country is increasing the use of diesel-based electricity, which is bothexpensive – costs as high as Rs 15 per unit - and polluting. It is in thissituation the solar imperative is both urgent and feasible to enable the countryto meet long-term energy needs.

3. Objectives and Targets

The objective of the National Solar Mission is to establish India as a global leader insolar energy, by creating the policy conditions for its diffusion across the country asquickly as possible.

MNRE Page 3 of 15

The Mission will adopt a 3-phase approach, spanning the remaining period of the11th Plan and first year of the 12th Plan (up to 2012-13) as Phase 1, the remaining 4years of the 12th Plan (2013-17) as Phase 2 and the 13th Plan (2017-22) as Phase 3. Atthe end of each plan, and mid-term during the 12th and 13th Plans, there will be anevaluation of progress, review of capacity and targets for subsequent phases, basedon emerging cost and technology trends, both domestic and global. The aim wouldbe to protect Government from subsidy exposure in case expected cost reductiondoes not materialize or is more rapid than expected.

The immediate aim of the Mission is to focus on setting up an enabling environmentfor solar technology penetration in the country both at a centralized anddecentralized level. The first phase (up to 2013) will focus on capturing of the low-hanging options in solar thermal; on promoting off-grid systems to serve populationswithout access to commercial energy and modest capacity addition in grid-basedsystems. In the second phase, after taking into account the experience of the initialyears, capacity will be aggressively ramped up to create conditions for up scaled andcompetitive 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 ofsolar power by 2022.

• To ramp up capacity of grid-connected solar power generation to 1000 MWwithin three years – by 2013; an additional 3000 MW by 2017 through themandatory use of the renewable purchase obligation by utilities backed with apreferential tariff. This capacity can be more than doubled – reaching10,000MW installed power by 2017 or more, based on the enhanced andenabled international finance and technology transfer. The ambitious targetfor 2022 of 20,000 MW or more, will be dependent on the ‘learning’ of the firsttwo phases, which if successful, could lead to conditions of grid-competitivesolar power. The transition could be appropriately up scaled, based onavailability of international finance and technology.

• To create favourable conditions for solar manufacturing capability, particularlysolar thermal for indigenous production and market leadership.

• To promote programmes for off grid applications, reaching 1000 MW by 2017and 2000 MW by 2022 .

• To achieve 15 million sq. meters solar thermal collector area by 2017 and 20million by 2022.

• To deploy 20 million solar lighting systems for rural areas by 2022.

4. Mission strategy (phase 1 and 2)

The first phase will announce the broad policy frame work to achieve the objectivesof the National Solar Mission by 2022. The policy announcement will create thenecessary environment to attract industry and project developers to invest inresearch, domestic manufacturing and development of solar power generation andthus create the critical mass for a domestic solar industry. The Mission will workclosely with State Governments, Regulators, Power utilities and Local SelfGovernment bodies to ensure that the activities and policy framework being laid out

MNRE Page 4 of 15

can be implemented effectively. Since some State Governments have alreadyannounced initiatives on solar, the Mission will draw up a suitable transitionframework to enable an early and aggressive start-up.

A. Utility connected applications: constructing the solar grid

The key driver for promoting solar power would be through a Renewable PurchaseObligation (RPO) mandated for power utilities, with a specific solar component. Thiswill drive utility scale power generation, whether solar PV or solar thermal. The SolarPurchase Obligation will be gradually increased while the tariff fixed for Solar powerpurchase will decline over time.

B. The below 80°C challenge – solar collectors

The Mission in its first two phases will promote solar heating systems, which arealready using proven technology and are commercially viable. The Mission issetting an ambitious target for ensuring that applications, domestic and industrial,below 80 °C are solarised. The key strategy of the Mission will be to make necessarypolicy changes to meet this objective:

• Firstly, make solar heaters mandatory, through building byelaws andincorporation in the National Building Code,

• Secondly, ensure the introduction of effective mechanisms for certification andrating of manufacturers of solar thermal applications,

• Thirdly, facilitate measurement and promotion of these individual devicesthrough local agencies and power utilities, and

• Fourthly, support the upgrading of technologies and manufacturing capacitiesthrough soft loans, to achieve higher efficiencies and further cost reduction.

C. The off-grid opportunity - lighting homes of the power- deprived poor:

A key opportunity for solar power lies in decentralized and off-grid applications. Inremote and far-flung areas where grid penetration is neither feasible nor costeffective, solar energy applications are cost-effective. They ensure that people withno access, currently, to light and power, move directly to solar, leap-frogging thefossil fuel trajectory of growth. The key problem is to find the optimum financialstrategy to pay for the high-end initial costs in these applications through appropriateGovernment support .

Currently, market based and even micro-credit based schemes have achieved onlylimited penetration in this segment. The Government has promoted the use ofdecentralized applications through financial incentives and promotional schemes.While the Solar Mission has set a target of 1000 MW by 2017, which may appearsmall, but its reach will add up to bringing changes in millions of households . Thestrategy will be learn from and innovate on existing schemes to improveeffectiveness. The Mission plans to:

• Provide solar lighting systems under the ongoing remote village electrificationprogramme of MNRE to cover about 10,000 villages and hamlets. The use of

MNRE Page 5 of 15

solar lights for lighting purposes would be promoted in settlements withoutaccess to grid electricity and since most of these settlements are remote tribalsettlements, 90% subsidy is provided. The subsidy and the demand sogenerated would be leveraged to achieve indigenization as well as lowering ofprices through the scale effect. For other villages which are connected to grid ,solar lights would be promoted through market mode by enabling banks tooffer low cost credit.

• Set up stand alone rural solar power plants in special category States andremote and difficult areas such as Lakshadweep, Andaman & Nicobar Islands,Ladakh region of J&K. Border areas would also be included.

Promotion of other off grid solar applications would also be encouraged. Thiswould include hybrid systems to meet power, heating and cooling energyrequirements currently being met by use of diesel and other fossil fuels. Thesedevices would still require interventions to bring down costs but the key challengewould be to provide an enabling framework and support for entrepreneurs to developmarkets.

Solar energy to power computers to assist learning in schools and hostels,Management Information System (MIS) to assist better management of forests inMP, powering milk chilling plants in Gujarat, empowering women Self Help Groups(SHGs) involved in tussar reeling in Jharkhand, cold chain management for PrimaryHealth Centres (PHCs) are some examples of new areas, being tried successfully inthe country. The Mission would consider up to 30 per cent capital subsidy (whichwould progressively decline over time) for promoting such innovative applications ofsolar energy and would structure a non-distorting framework to supportentrepreneurship, up-scaling and innovation.

In order to create a sustained interest within the banking community, it is proposed toprovide a soft re-finance facility through Indian Renewable Energy DevelopmentAgency (IREDA) for which Government will provide budgetary support. IREDA wouldin turn provide refinance to NBFCs & banks with the condition that it is on-lend to theconsumer at rates of interest not more than 5 per cent. The Mission would providean annual tranche for the purpose which would be used for refinance operations fora period of ten years at the end of which the funds shall stand transferred to IREDAas capital and revenue grants for on-lending to future renewable energy projects.

D. Manufacturing capabilities: innovate, expand and disseminate

Currently, the bulk of India’s Solar PV industry is dependent on imports of critical rawmaterials and components – including silicon wafers. Transforming India into a solarenergy hub would include a leadership role in low-cost, high quality solarmanufacturing, including balance of system components. Proactive implementationof Special Incentive Package (SIPs) policy, to promote PV manufacturing plants,including domestic manufacture of silicon material, would be necessary.

Indigenous manufacturing of low temperature solar collectors is already available;however, manufacturing capacities for advanced solar collectors for low temperatureand concentrating solar collectors and their components for medium and high

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temperature applications need to be built. An incentive package, similar to SIPS,could be considered for setting up manufacturing plants for solar thermal systems/devices and components.

The SME sector forms the backbone for manufacture of various components andsystems for solar systems. It would be supported through soft loans for expansion offacilities, technology upgradation and working capital. IREDA would provide thissupport through refinance operations.

It should be ensured that transfer of technology is built into Government and privateprocurement from foreign sources.

E. R&D for Solar India: creating conditions for research and application

A major R&D initiative to focus: firstly, on improvement of efficiencies in existingmaterials, devices and applications and on reducing costs of balance of systems,establishing new applications by addressing issues related to integration andoptimization; secondly, on developing cost-effective storage technologies whichwould address both variability and storage constraints, and on targeting space-intensity through the use of better concentrators, application of nano-technology anduse of better and improved materials. The Mission will be technology neutral,allowing technological innovation and market conditions to determine technologywinners.

A Solar Research Council will be set up to oversee the strategy, taking into accountongoing projects, availability of research capabilities and resources and possibilitiesof international collaboration.

An ambitious human resource development programme, across the skill-chain, willbe established to support an expanding and large-scale solar energy programme,both for applied and R&D sectors. In Phase I, at least 1000 young scientists andengineers would be incentivized to get trained on different solar energy technologiesas a part of the Mission’s long-term R&D and HRD plan.

Pilot demonstration projects would be closely aligned with the Mission’s R & Dpriorities and designed to promote technology development and cost reduction. TheMission, therefore, envisages the setting up of the following demonstration projectsin Phase I, in addition to those already initiated by MNRE and those, which may beset up by corporate investors:

1. 50-100 MW Solar thermal plant with 4-6 hours’ storage (which canmeet both morning and evening peak loads and double plant loadfactor up to 40%).

2. A 100-MW capacity parabolic trough technology based solar thermalplant.

3. A 100-150 MW Solar hybrid plant with coal, gas or bio-mass to addressvariability and space-constraints.

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4. 20-50 MW solar plants with/without storage, based on central receivertechnology with molten salt/steam as the working fluid and otheremerging technologies.

5. Grid-connected rooftops PV systems on selected government buildingsand installations, with net metering.

6. Solar-based space-cooling and refrigeration systems to meet daytimeand summer season peak load. These could be installed on selectedgovernment buildings and installations.

The configurations and capacities as mentioned above are indicative and would befirmed up after consultations with various stakeholders. Bidding process will beadopted to set up solar power demonstration plants which would help in better pricediscovery for determining tariff for solar power. It will be ensured that indigenouscontent is maximized. The bid documents will also include a technology transferclause. It is expected that these plants will be commissioned in the 12th plan period.

5. Proposed Roadmap

The aspiration is to ensure large-scale deployment of solar generated power for grid-connected as well as distributed and decentralized off-grid provision of commercialenergy services. The deployment across the application segments is envisaged asfollows:

S.No.

Application segment Target forPhase I (2010-13)



1. Solar collectors 7 million sqmeters

15 million sqmeters

20 million sqmeters

2. Off grid solarapplications

200 MW 1000 MW 2000 MW

3. Utility grid power,including roof top

1,000-2000MW

4000-10,000MW

20000 MW

6. Policy and regulatory framework

The objective of the Mission is to create a policy and regulatory environment whichprovides a predictable incentive structure that enables rapid and large-scale capitalinvestment in solar energy applications and encourages technical innovation andlowering of costs.

Although in the long run, the Mission would seek to establish a sector-specific legaland regulatory framework for the development of solar power, in the shorter timeframe, it would be necessary to embed the activities of the Mission within the existingframework of the Electricity Act 2003. The Electricity Act already provides a role for

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renewables but given the magnitude and importance of the activities under theMission, it would be necessary to make specific amendments. The National TariffPolicy 2006 mandates the State Electricity Regulatory Commissions (SERC) to fix aminimum percentage of energy purchase from renewable sources of energy takinginto account availability of such resources in the region and its impact on retail tariff.National Tariff Policy, 2006 would be modified to mandate that the State electricityregulators fix a percentage for purchase of solar power. The solar power purchaseobligation for States may start with 0.25% in the phase I and to go up to 3% by 2022.This could be complemented with a solar specific Renewable Energy Certificate(REC) mechanism to allow utilities and solar power generation companies to buyand sell certificates to meet their solar power purchase obligations.

The Central Electricity Regulatory Commission has recently issued guidelines forfixing feed-in-tariff for purchase of Solar power taking into account current cost andtechnology trends. These will be revised on an annual basis. The CERC has alsostipulated that Power Purchase Agreement that utilities will conclude with Solarpower promoters, should be for a period of 25 years.

In order to enable the early launch of “Solar India” and encourage rapid scale up, ascheme is being introduced in cooperation with the Ministry of Power, the NTPC andthe Central Electricity Authority, which would simplify the off-take of solar power andminimize the financial burden on Government.

Many investors are willing to set up solar based power plants. However, sale ofpower by the IPPs may be an issue due to the high cost of power and realization oftariff for the same from the distribution companies.

In order to incentivise setting up of a large number of Solar Power Projects, whileminimizing the impact on tariff various alternatives were explored. One of theoptions is to bundle solar power along with power out of the cheaper unallocatedquota of Central stations and selling this bundled power to state distributionutilities at the CERC regulated price. This will bring down the gap between averagecost of power and sale price of power. For thepurpose of bundling, power has to be purchased by an entity and re-sold to thestate power distribution utilities. Such function can be done only by a tradingcompany/Discoms, as per the existing statutory provisions.

NTPC has a wholly owned subsidiary company engaged in the business of trading ofpower – NTPC Vidyut Vyapar Nigam Ltd. (NVVN). NVVN will be designated asnodal agency by the Ministry of Power (MoP) for entering into a Power PurchaseAgreement (PPA) with Solar Power Developers. The PPAs shall be signed with thedevelopers who will be setting up Solar Projects within next three years (i.e. uptoMarch 2013) and are connected to the grid at 33 KV level and above. The PPAs willbe valid for a period of 25 years. For each MW of solar power installed capacity forwhich PPA is signed by NVVN, MOP shall allocate to NVVN an equivalent amount ofMW capacity from the unallocated quota of NTPC stations.

NVVN will bundle this power and sell this bundled power at a rate fixed as per CERCregulations. In case of significant price movement in the market rate, theGovernment will review the situation.

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When NVVN supplies the bundled power to distribution utilities, those distributionutilities will be entitled to use part of the bundled power to meet their RPO, asdetermined by the regulatory authorities. The CERC may issue appropriateguidelines in this regard. At the end of the first phase, well-performing utilities withproven financial credentials and demonstrated willingness to absorb solar power,shall be included in the Scheme, in case it is decided to extend it into Phase II.

The requirement of phased indigenization would be specified while seekingdevelopment of solar power projects under this scheme. The size of each projectwould to determined so as to make phased indigenization feasible. The tariff and taxregime for key components and segments would be suitably fine tuned so as topromote the process of indigenization.

The Mission will encourage rooftop solar PV and other small solar power plants,connected to LT/11 KV grid, to replace conventional power and diesel-basedgenerators. Operators of solar PV rooftop devices will also be eligible to receive thefeed-in tariff fixed by the CERC, both on the solar power consumed by the operatorand the solar power fed into the grid. Utilities will debit/credit the operator for the netsaving on conventional power consumed and the solar power fed into the grid, asapplicable. A Generation Based Incentive will be payable to the utility to cover thedifference between the solar tariff determined by CERC, less the base price of Rs.5.50/kWh with 3% p.a. escalation. The metering and billing arrangements betweenthe utility and the rooftop PV operator, will be as per guidelines/regulations of theappropriate commission.

State Governments would also be encouraged to promote and establish solargeneration Parks with dedicated infrastructure for setting up utility scale plants toensure ease of capacity creation.

Fiscal incentives

It is also recommended that custom duties and excise duties concessions/exemptions be made available on specific capital equipment, critical materials ,components and project imports.

Solar Manufacturing in India

One of the Mission objectives is to take a global leadership role in solarmanufacturing (across the value chain) of leading edge solar technologies and targeta 4-5 GW equivalent of installed capacity by 2020, including setting up of dedicatedmanufacturing capacities for poly silicon material to annually make about 2 GWcapacity of solar cells. India already has PV module manufacturing capacity of about700 MW, which is expected to increase in the next few years. The presentindigenous capacity to manufacture silicon material is very low, however, someplants are likely to be set up soon in public and private sector. Currently, there is noindigenous capacity/capability for solar thermal power projects; therefore new

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facilities will be required to manufacture concentrator collectors, receivers and othercomponents to meet the demand for solar thermal power plants.

To achieve the installed capacity target, the Mission recommends the following:

• Local demand creation: The 20 GW plan supported with right level ofincentives for solar generation coupled with large governmentpilot/demonstration programs will make the Indian market attractive for solarmanufacturers

• Financing & Incentives: SEZ like incentives to be provided to themanufacturing parks which may include:

o Zero import duty on capital equipment, raw materials and excise dutyexemption

o Low interest rate loans, priority sector lendingo Incentives under Special Incentive Package (SIPs) policy to set up

integrated manufacturing plants; (i) from poly silicon material to solarmodules; and (ii) thin film based module manufacturing plants. . Underthe SIP scheme of the Department of Information Technology, thereare 15 applications in the domain of solar photovoltaic, which includescell manufacturing, (both crystalline and thin film) and poly-siliconmanufacturing among others. The combined capacity projected bythese 15 companies could result in the production of 8-10 GW solarpower by the year 2022 which would be sufficient for meeting theMission targets even after accounting for exports.

o It is also recommended that solar components be covered under theBureau of Energy Efficiency’s star rating programme to ensure highstandards.

Similar incentives will be required for manufacture of CSP systems and theircomponents. A Committee may be set up to formulate a policy for promotion of solarthermal manufacture in the country.

• Ease of doing business: In consultation with States, create a single windowclearance mechanism for all related permissions.

• Infrastructure & ecosystem enablers: Create 2-3 large solar manufacturingtech parks consisting of manufacturing units (across the solar value chain),housing, offices, and research institutes. These will have 24x7 power andwater supply and will likely need to be located near large urban centres withgood linkages to ports and airports to ensure rapid access to imported rawmaterials and high quality engineering talent.

7. Research and Development

This Mission will launch a major R&D programme in Solar Energy, which will focuson improving efficiency in existing applications, reducing costs of Balance ofSystems, testing hybrid co-generation and addressing constraints of variability,space-intensity and lack of convenient and cost-effective storage.

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The R&D strategy would comprise dealing with five categories viz. i) Basic researchhaving long term perspective for the development of innovative and new materials,processes and applications, ii) Applied research aimed at improvement of theexisting processes, materials and the technology for enhanced performance,durability and cost competitiveness of the systems/ devices, iii) Technologyvalidation and demonstration projects aimed at field evaluation of differentconfigurations including hybrids with conventional power systems forobtaining feedback on the performance, operability and costs, iv) developmentof R&D infrastructure in PPP mode, and v) support for incubation and start ups.

To support the R&D Strategy, the Mission may include the following:

- Setting up a high level Research Council comprising eminent scientists,technical experts and representatives from academic and researchinstitutions, industry, Government and Civil Society to guide the overalltechnology development strategy. TheCouncil may invite eminentinternational experts in the field to support its work. The Council will reviewand update the technology roadmap to achieve more rapid technologicalinnovation and cost reduction.

- A National Centre of Excellence (NCE) shall be established to implement thetechnology development plan formulated by the Research Council and serveas its Secretariat. It will coordinate the work of various R&D centres, validateresearch outcomes and serve as an apex centre for testing and certificationand for developing standards and specifications for the Solar industry. It isenvisaged that the Solar Energy Centre of the MNRE will become part of theNational Centre of Excellence.

- The Research Council, in coordination with the National Centre of Excellence,inventorize existing institutional capabilities for Solar R&D and encourage thesetting up of a network of Centres of Excellence, each focusing on an R&Darea of its proven competence and capability. These Centres may be locatedin research institutes, academic institutions or even private sector companies.They will be encouraged to bid for various components of the SolarTechnology Development Plan, and may do so adopting a consortiumapproach, collaborating with other institutions, including foreigncollaboration, with proven capabilities.

- The NCE will provide a national platform for networking among differentcenters of excellence and research institutions, including foreign R&Dinstitutions and high-tech companies.

- The NCE will serve as the funding agency to support performance-linked solarR&D programmes. This will include funding, or co-funding of pilotdemonstration projects in areas relevant to Mission objectives. Funding willneed to be adequate, predictable and should typically cover a time frameextending from 5-10 years.

MNRE Page 12 of 15

- The NCE will be the main interface with international research institutions,research groups from foreign countries, high-tech start-up companies andmultilateral programmes (such as those which may emerge from currentnegotiations under the UNFCCC). It will encourage joint projects betweeninternational partners and Indian centres of excellence, with sharing of IPR, asalso encourage the setting up of R&D bases in India by advanced high-techcompanies from abroad.

- The NCE will coordinate with the IMD, ISRO and other concerned agencies,the detailed mapping of ground insulation, particularly in high potential solarregions of the country. Accurate and reliable data is a critical requirement forall solar applications, in particular, concentrated solar power (CSP).

- In drawing up the Solar Technology Development Plan, the Research Councilwill review ongoing and proposed R&D initiatives of MNRE, the Department ofScience and Technology, the Ministry of Earth Sciences and other agenciesand institutions and incorporate them, as appropriate, in its Plan.

In order to provide support for incubation and start ups, the Mission could tie up withinstitutions like Centre for Innovation, Incubation and Entrepreneurship (CIIE) basedin IIM Ahmedabad to incubate solar energy start-ups and SMEs in India throughmentoring, networking and financial support. A fund could be established to aim atsupporting at least 50 start-ups developing and deploying solar related technologiesacross India over the next 5 years and would be managed by a professional entity.The Fund shall be structured as a Venture Fund and would be operated as a huband spoke model with the professional entity coordinating the fund activities and alsoidentifying like minded institutions for administering the fund. The Fund wouldprovide financial (equity/debt) support to start-ups, entrepreneurs and innovators forR&D and pilot of new solar related technologies and for creating new and uniquebusiness models which have a potential of increasing the deployment of solar relatedtechnologies in India – for all segments including consumer, SME and commercialusage. The initiative shall be structured ideally in a private-public partnership model,to be able to provide risky capital to the aspiring entrepreneurs. It would also attractcontributions from private stakeholders, amounting to, at least 10% of that of theGovernment. The returns generated on the Government support to the Fund shall beploughed back for further promoting incubation activities in this space.

The Mission would also explore the possibility of collaborating with CSIR to launchan Open Source Solar Development initiative on similar lines as the Open SourceDrug Discovery platform of CSIR

8. Human Resource Development

The rapid and large-scale diffusion of Solar Energy will require a concomitantincrease in technically qualified manpower of international standard. Some capacityalready exists in the country, though precise numbers need to be established.

MNRE Page 13 of 15

However, it is envisaged that at the end of Mission period, Solar industry will employat least 100,000 trained and specialized personnel across the skill spectrum. Thesewill include engineering management and R&D functions.

The following steps may be required for Human Resource Development:

o IITs and premier Engineering Colleges will be involved to design and developspecialized courses in Solar Energy,with financial assistance fromGovernment. These courses will be at B. Tech, M. Tech and Ph. D level.Some of the IITs, Engineering Colleges and Universities are teaching solarenergy at graduation and post graduation level. Centres for Energy studieshave been set up by some of the IITs and engineering colleges. Theseinitiatives will be further strengthened. In addition, a countrywide trainingprogramme and specialized courses for technicians will be taken up to meetthe requirement of skilled manpower for field installations and after salesservice network. The Directorate General of Education and Training underthe Ministry of Labour has agreed to introduce training modules for coursematerials for technicians in order to create a skilled workforce which couldservice and maintain solar applications. MNRE has already initiated thisactivity with the Ministry of Labour and a short term training module is to beintroduced during the current academic session. In addition, industry is alsoworking with some of the ITIs to create a skilled work force.

o A Government Fellowship programme to train 100 selected engineers /technologies and scientists in Solar Energy in world class institutions abroadwill be taken up. This may need to be sustained at progressively declininglevels for 10 years. This could be covered under the ongoing bilateralprogrammes. Institution to institution arrangements will also be developed.Fellowships will be at two levels (i) research and (ii) higher degree (M. Tech)in solar energy. MNRE is already implementing a fellowship programme inthis regard, which will be expanded to include students from a larger numberof academic institutions. This may be done in consultation with industry tooffer employment opportunities.

o Setting up of a National Centre for Photovoltaic Research and Education atIIT, Mumbai drawing upon its Department of Energy Science and Engineeringand its Centre for Excellence in Nano-Electronics.

9. Institutional Arrangements for implementing the Mission

This Mission will be implemented by an autonomous Solar Energy Authority and oran autonomous and enabled Solar Mission, embedded within the existing structureof the Ministry of New and Renewable Energy. The Authority/Mission secretariat willbe responsible for monitoring technology developments, review and adjustincentives, manage funding requirements and execute pilot projects. The Mission willreport to the Prime Minister’s Council on Climate Change on the status of itsprogramme.

MNRE Page 14 of 15

The broad contours of an autonomous and enabled Mission would comprise of:

i) A Mission Steering Group, chaired by the Minister for New and RenewableEnergy and composed of representatives from all relevant Ministries andother stakeholders, will be set up to over see the over all implementation ofthe National Solar Mission. The Mission Steering Group will be fullyempowered to approve various schemes/ projects/ policies and the relatedfinancial norms for all schemes covered under the National Solar Mission(NSM). The Mission Steering group will also authorize anymodifications/deviations in the norms on ongoing schemes.

ii) A Mission Executive Committee, chaired by Secretary, Ministry of New andRenewable Energy, will periodically review the progress of implementation ofthe projects approved by the Mission Steering Group.

iii) An empowered Solar Research Council headed by an eminent scientist willadvise the Mission on all R&D, technology and capacity building relatedmatters. In addition, Industry Advisory Council will advise the Mission on allmatters relating to industrial development, technologytransfer/absorption/joint ventures, incentives and investment related matters.

iv) A Mission Director, with the rank of an Additional Secretary, would head theMission secretariat and be responsible for day to day functioning and alsoachieving the goals laid out in a time bound manner. The Mission Secretariatwould have Joint secretary/ Scientist G level officers including otherscientists, experts and consultants.

10. International Collaboration

There is considerable work going on in several countries to develop Solar Energy asa clean and alternative source of energy. Strategic international collaborations andpartnerships aimed at meeting the priorities set out under the Mission would bedeveloped, along with effective technology transfer mechanisms and strong IPRprotection.

Cooperation will be encouraged at the level of research organizations along withindustry partners and at individual level also to generate new ideas. Whereverfeasible, cooperation through bilateral and multilateral arrangements would befacilitated. DST has been supporting joint research with several countries underbilateral programmes. More recently a research programme is to be taken up byDST, in consultation with MNRE, with the European Union. MNRE is alsoimplementing some bilateral projects under the Asia Pacific Partnership Programmewith Japan and Australia. A project on solar radiation data collection is underimplementation with USA.

11. Financing the Mission activities

The fund requirements for the Mission would be met from the following sources orcombinations:

MNRE Page 15 of 15

i) Budgetary support for the activities under the National Solar Missionestablished under the MNRE;

ii) International Funds under the UNFCCC framework, which would enableupscaling of Mission targets.

The Mission strategy has kept in mind the two-fold objectives, to scale-updeployment of solar energy and to do this keeping in mind the financial constraintsand affordability challenge in a country where large numbers of people still have noaccess to basic power and are poor and unable to pay for high cost solutions.

The funding requirements and arrangements for Phase II will be determined after areview of progress achieved at the end of the 11th Plan and an analysis of theefficacy of the model adopted for capacity building of utility scale solar power.

84

Annexure - II

MISSION RESOLUTION BYMINISTRY OF NEW AND RENEWABLE ENERGY

17

No.5/14/2008-P&CGovernment of India

Ministry of New and Renewable Energy

RESOLUTION

Block No. 14, C.G.O. Complex,Lodi Road, New Delhi -110 003

Dated: 11th January, 2010

Subject: Jawaharlal Nehru National Solar Mission

Consequent to the announcement of the National Action Plan on ClimateChange in June 2008, which identified development of solar energy technologies in thecountry as a National Mission, the Government of India has approved “JawaharlalNehru National Solar Mission” (JNNSM) which aims at development and deployment ofsolar energy technologies in the country to achieve parity with grid power tariff by2022.

2. The objective of the National Solar Mission is to establish India as a globalleader in solar energy, by creating the policy conditions for its diffusion across thecountry as quickly as possible.

3. The Mission will adopt a 3-phase approach, spanning the remaining period of the11th Plan and first year of the 12th Plan (up to 2012-13) as Phase 1, the remaining 4 years ofthe 12th Plan (2013-17) as Phase 2 and the 13th Plan (2017-22) as Phase 3. At the end ofeach plan, and mid-term during the 12th and 13th Plans, there will be an evaluation ofprogress, review of capacity and targets for subsequent phases, based on emerging costand technology trends, both domestic and global. The aim would be to protectGovernment from subsidy exposure in case expected cost reduction does not materializeor is more rapid than expected.

4. The immediate aim of the Mission is to focus on setting up an enablingenvironment for solar technology penetration in the country both at a centralized anddecentralized level. The first phase (up to 2012- 2013) will focus on capturing of the low-hanging options in solar thermal; on promoting off-grid systems to servepopulations without access to commercial energy and modest capacity addition in grid-based systems. In the second phase, after taking into account the experience of theinitial years, capacity will be aggressively ramped up to create conditions for up scaledand competitive solar energy penetration in the country.

5. To achieve this, the Mission targets are:

To create an enabling policy framework for the deployment of 20,000 MW ofsolar power by 2022.

To ramp up capacity of grid-connected solar power generation to 1000 MWwithin three years – by 2013; an additional 3000 MW by 2017 through themandatory use of the renewable purchase obligation by utilities backed with apreferential tariff. This capacity can be more than doubled – reaching 10,000MWinstalled power by 2017 or more, based on the enhanced and enabledinternational 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. Thetransition could be appropriately up scaled, based on availability of internationalfinance and technology.

To create favourable conditions for solar manufacturing capability, particularlysolar thermal for indigenous production and market leadership.

To promote programmes for off grid applications, reaching 2000 MW by 2022including 20 million solar lighting systems.

To achieve 20 million sq. solar thermal collector area by 2022.

6. The Government has given In Principle approval to the over all targetsproposed for the various activities covered under the Jawaharlal Nehru National SolarMission.

7. The Government has also decided to approve the implementation of the firstphase of the Jawaharlal Nehru National Solar Mission during 2009-2013 and thetarget to set up 1,000 MW grid connected ( 33 KV and above) solar plants,100 MW of rooftop and small solar plants connected to LT/11 KV grid and 200 MW capacityequivalent off-grid solar applications in the first phase of the Mission, till March, 2013. Anamount of Rs.4337 crore has been approved for the activities proposed under the firstphase of the Mission till March 2013.

8. The implementation of the target of 1,000 MW of grid connected (33 KV andabove) solar power plants will be through NTPC Vidyut Vyapar Nigam (NVVN), atrading subsidiary of NTPC Limited. NVVN will directly purchase the solar power from theproject developers as per the norms and guidelines fixed in this regard.

9. 100 MW capacity of solar roof top and small grid connected solar power plants will beconnected to LT/11 KV grid of the distribution utility and the solar power will bedirectly purchased by the distribution utilities as per the norms and guidelines fixed inthis regard.

10. 200 MW equivalent capacity of off-grid solar applications, both solar thermal andphotovoltaic will be implemented through a combination of low interest bearing loansand /or central financial assistance. as per the norms and guidelines fixed in thisregard.

11. In addition, the Mission will support various activities, as considered necessary, onR&D, Human Resource Development, Technical Assistance, training, publicity andawareness etc. for successful implementation of the Mission

12. The detailed guidelines for implementation of each of the above components of theJawaharlal Nehru National Solar Mission will be issued separately.

(Gauri Singh)Joint Secretary to the Government of India

Order

Ordered that this resolution be published in the Gazette of India Extraordinary.

Ordered that a copy of the resolution be communicated to theMinistries/Departments of the Government of India, State Governments, Administration ofUnion Territories, Central Electricity Regulatory Commission, State ElectricityRegulatory Commissions and to all other concerned

(Gauri Singh)Joint Secretary to the Government of India

Annexure - III

SINGLE LINE DIAGRAM OFPOWER SUPPLY SYSTEM

Single Line Diagram for Power supply arrangement

Out 1 BSES – I GTGPT forSYNCH

BUSCOUPLER

PT FORSYNCH

SOLAR BSES – II OUT 2

Incomer 1

ToTransformer

1

ToTransformer

2

ToTransformer

3 TO AC Plant Incomer 2

Annexure - IV

LOCATION MAP OF GURDASPUR DIST, PANJAB

Annexure - V

SEISMIC ZONE – MAP OF INDIA

Prepared for Power Works Department (GNCTD), New Delh i

Seismic Zone – Map of India

Project Site

Annexure - VI

PHOTOGRAPHS OF PROJECT SITE

Annexure - VII

CERC GUIDELINES FOR TARIFFCALCULATION OF SPV PROJECTS

CENTRAL ELECTRICITY REGULATORY COMMISSIONNEW DELHI

Coram1. Dr. Pramod Deo, Chairperson2. Shri R. Krishnamoorthy, Member3. Shri S.Jayaraman, Member4. Shri V.S.Verma, Member

Petition No.284/2009 (Suo Motu) IN

THE MATTER OF

Determination of generic levellised generation tariff under Regulation 8 of theCentral Electricity Regulatory Commission (Terms and Conditions for Tariff determinationfrom Renewable Energy Sources) Regulations, 2009

ORDER

The Central Electricity Regulatory Commission (hereinafter referred to as “the

Central Commission”) has been vested with the following functions under clauses (a) and

(b) of Section 79 of the Electricity Act, 2003 (hereinafter referred to as “the Act”):

(a) To regulate the tariff of the generating companies owned or controlled by the

Central Government;

(b) To regulate the tariff of generating companies other than those owned or

controlled by the Central Government, if such generating companies enter into or

otherwise have a composite scheme for generation and sale of electricity in more

than one State.

2. Section 61 of the Act empowers the Central Commission to specify, by

regulations, the terms and conditions for the determination of tariff in accordance with the

provisions of the said section and the National Electricity Policy and Tariff Policy. Sub-

section (h) of Section 61 of the Act stipulates that while determining tariff, the

Commission shall be guided by the aspect of promotion of co-generation and generation

from renewable sources of energy. Clause 6.4 of the Tariff Policy entrusts the

responsibility on the Commission to frame guidelines for pricing of non-firm power

especially from non-conventional sources when procurement is not through the

competitive bidding process.

3. In exercise of the powers vested under Section 61 read with Section 178 of the Act

and after previous publication, the Commission has notified the Central Electricity

Regulatory Commission (Terms and Conditions for Tariff determination from Renewable

Energy Sources) Regulations, 2009, (hereinafter referred to as “the RE Regulations”).

The RE Regulations provide for terms and conditions and the procedure for

determination of tariff of the following categories of renewable energy generating stations:

(a) Wind Power Project;

(b) Small Hydro Projects;

(c) Biomass Power Projects;

(d) Non-fossil fuel-based co-generation Plants;

(e) Solar Photo voltaic (PV) and Solar Thermal Power Projects.

4. The Renewable Energy (RE) Regulations require the Commission to determine

the generic tariff on the basis of the suo motu petition, for the RE technologies for which

norms have been provided in the regulations. Generic Tariff is different from the project

specific tariff for which a project developer has to file petition before the commission as

per the format provided in the RE regulations. Pertinently, project specific tariff has been

envisaged for the new RE technologies and the technologies which are still at the

nascent stage of development, and the Commission shall determine the project specific

tariff for such technologies on a case to case basis.

5. Clause (1) of Regulation 8 of the RE Regulations provides that “the Commission

shall determine the generic tariff on the basis of suo motu petition at least six months in

advance at the beginning of each year of the Control period for renewable energy

technologies for which norms have been specified under the Regulations.” As the first

year of the control period has already commenced with the notification of the regulations

with effect from 16.9.2009, the Commission in due discharge of the mandate under

Regulation 8(1) of RE Regulations proceeds to determine the generic tariff of the RE

projects for the first year of control period (i.e. FY 2009-10) through this order based on

the financial principles and technology specific parameters.

USEFUL LIFE

6. Sub-clause (y) of clause(1) of Regulation 2 of the RE Regulations defines ‘useful

life’ in relation to a unit of a generating station (including evacuation system) to mean the

following duration from the date of commercial operation of such generation facility:

Renewable Energy projects YearsWind Energy 25Small Hydro 35Biomass 20Non-fossil fuel co-generation 20Solar PV 25Solar Thermal 25

CONROL PERIOD

7. Regulation 5 of the RE Regulations provides that the control period for

determination of tariff for renewable energy projects (RE projects) shall be of three years

of which the first year is to be considered from the date of notification of these regulations

till 31.3.2010. Proviso to the said regulation stipulates that the tariff determined for the RE

projects commissioned during the control period shall continue to be applicable for the

entire duration of the tariff period as specified in Regulation 6 of the RE Regulations.

However, the benchmark cost for Solar PV and Solar thermal may be reviewed by the

Commission annually.

TARIFF PERIOD

8. In terms of Regulation 6 of the RE Regulations, the tariff period in respect of the

RE projects is as under:

Renewable Energy projects YearsWind Energy 13Small Hydro (less than 5MW) 35Small Hydro (between 5MW to 25 MW) 13Biomass 13Non-fossil fuel co-generation 13Solar PV and Solar Thermal 25

In terms of clauses (4) and (5) of the said regulation, the tariff period specified

above shall be reckoned from the date of commercial operation of the RE projects and

the tariff determined under the regulations shall be applicable for the duration of the tariff

period.

TARIFF STRUCTURE

9. Clause (1) of Regulation 9 of the RE Regulations stipulates that the tariff for RE

projects shall be single part tariff consisting of the following fixed cost

components: (a) Return on equity;(b) Interest on loan capital;(c) Depreciation;(d) Interest on working capital;(e) Operation and maintenance expenses;

For renewable energy technologies having fuel cost component, like biomass

power projects and non-fossil fuel based cogeneration, single part tariff with two

components, fixed cost component and fuel cost component, is to be determined.

TARIFF DESIGN

10. In terms of Regulation 10 of the RE Regulations, the tariff design for renewable

energy generating stations is as under:

“(1) The generic tariff shall be determined on levellised basis for the Tariff Period.

Provided that for renewable energy technologies having single part tariff with twocomponents, tariff shall be determined on levellised basis considering the year ofcommissioning of the project for fixed cost component while the fuel costcomponent shall be specified on year of operation basis.

(2) For the purpose of levellised tariff computation, the discount factor equivalent toweighted average cost of capital shall be considered.

(3) Levellisation shall be carried out for the ‘useful life’ of the Renewable Energy whiletariff shall be specified for the period equivalent to ‘Tariff Period.”

LEVELLISED TARIFF

11. Levellised Tariff is calculated by carrying out levellisation for ‘useful life’ of each

technology considering the discount factor for time value of money.

Discount Factor:

The discount factor considered for this purpose is equal to the weighted average cost of

the capital on the basis of normative debt: equity ratio (70:30) specified in the

Regulations. Considering the normative debt equity ratio and weighted average of the

rates for interest and equity component, the discount factor is calculated.

Interest Rate considered for the loan component (i.e. 70% ) of Capital Cost is

14.29% (as explained later ). For equity component (i.e. 30%) rate of Return on Equity

(ROE) for the first ten (10) years is 19% and for 11th year onward till useful life of the RE

project the rate is 24%. Based on these rates, the weighted average of rate of ROE has

been calculated which is 22%. .

The discount factor derived by this method for each technology is as shown in the

following table:

Details WindEnergy

Small Hydro Biomass Non-fossil

fuel co-generati

on

SolarPV

SolarThermal

Less than5 MW(HimachalPradesh,Uttarakhand andNorthEasternStates)

Between 5MW to 25MW(HimachalPradesh,Uttarakhand andNorthEasternStates

OtherStates(below5 MW

Otherstates(5 MWto 25MW)

DiscountRate (%) 16.60 16.8 16.8 16.8 16.8 16.45 16.45 16.60 16.60

CAPITAL COST

12. Regulation 12 of the RE Regulations stipulates that the norms for the capital cost

as specified in the technology specific chapter shall be inclusive of all capital works like

plant and machinery, civil works, erection and commissioning, financing and interest

during construction, and evacuation infrastructure up to inter-connection point.

Technology specific capital cost of RE projects is discussed hereinunder:

(A) Capital Cost of Wind Energy

13. Wind Power projects located at the wind sites having minimum annual Wind Power

Density(WPD) of 200 Watt/m2 measured at hub height of 50 meters and using new wind

turbine generators are eligible for tariff determination under the RE Regulations.

Regulation 24 provides that the capital cost for wind energy project shall include wind

turbine generator including its auxiliaries, land cost, site development charges and other

civil works, transportation charges, evacuation cost up to inter-connection point, financing

charges and IDC. The normative capital cost of the wind energy projects shall be Rs.515

lakh/MW for the year 2009-10 being the first year of the control period and shall be

subject to the adjustment over the control period on account of changes in the wholesale

price index for steel and electrical machinery as per the indexation mechanism specified

in Regulation 25 of the RE Regulations.

(B) Capital cost of Small Hydro Projects

14. Small Hydro Projects for the purpose of the RE Regulations cover those projects

which are located at the sites approved by the State Nodal Agencies/State Governments

using new plant and machinery and with installed power plant capacity lower than or

equal to 25 MW. Regulation 28 of the RE Regulations specifies the following normative

capital cost for small hydro projects during the first year of the control period i.e. FY 2009-

2010:

Region Project Size Capital Cost(Rs in lakh/ MW)

Himachal Pradesh,Uttarakhand and NorthEastern States

Below 5 MW5 MW to 25 MW

700630

Other States Below 5 MW5 MW to 25 MW

550500

The capital cost for subsequent years of the control period shall be determined on

the basis of indexation formula under Regulation 29 to cater for the changes in the

wholesale price index for steel and electrical machinery.

(C) Capital Cost of Biomass based Power Projects

15. Biomass power project for the purpose of these regulations covers the projects using

new plant and machinery based on Rankine cycle technology application using water

cooled condenser, and biomass fuel sources where use of fossil fuel is limited to 15% of

total fuel consumption on annual basis. Regulation 34 of RE Regulations provides that

the normative capital cost for the biomass power projects based on Rankine cycle

technology application using water cooled condenser shall be Rs.450 lakh/MW for the

first year of the control period i.e. 2009-10 for tariff determination.

(D) Capital Cost of Non-fossil fuel based Cogeneration Projects

16. Non-fossil based cogeneration has been defined as the process in which more than

one form of energy is produced in a sequential manner by using biomass. As per

Regulation 4(4) of the RE Regulations, a project to qualify as the non-fossil based co-

generation project must be using new plant and machinery with topping cycle mode of

operation which uses the non-fossil fuel input for power generation and utilizes the

thermal energy generated for useful heat applications in other industrial activities

simultaneously, and where the sum of useful power output and half of useful thermal

output is greater than 45% of the plant’s energy consumption during the season. The

normative capital cost of the non-fossil based co-generation project shall be Rs.445

lakh/MW for 2009-10 i.e. the first year of the control period.

(E) Capital Cost of Solar PV Projects

17. Solar Photo Voltaic (PV) power projects which directly convert solar energy into

electricity using the crystalline silicon or thin film technology or any other technology

as approved by the Ministry of New and Renewable Energy and are connected to the

grid qualify for the purpose of tariff determination under the RE Regulations. As

per Regulation 57, the normative capital cost for Solar PV Power Project shall be

Rs.1700 lakh/MW for the first year of the control period.

(F) Solar Thermal Power Project

18. In order to qualify for tariff determination under the RE Regulations, Solar Thermal

Power Project shall be based on concentrated solar power technologies with line

focusing or point focusing as may be approved by the Ministry of New and Renewable

Energy and which uses direct sunlight to generate sufficient heat to operate a

conventional power cycle to generate electricity. As per Regulation 61 of the RE

Regulations, the normative capital cost for Solar Thermal Power Project shall be Rs.1300

lakh/MW for 2009-10.

19. The capital cost for the first year (2009-10) of the control period in respect of the

renewable energy power generating stations is summarized as under:

(Rs in lakh/MW )

Renewable Energy Projects Capital cost(1) Wind Energy 515(2) Small Hydro

(a) Himachal Pradesh, Uttarakhand and North EasternStates (less than 5 MW)

700

(b) Himachal Pradesh, Uttarakhand and North EasternStates (5MW to 25 MW)

630

(c) Other States (below 5 MW) 550(d) Other States ( 5MW to 25 MW) 500

(3) Biomass power projects 450(4) Non-fossil fuel based co-generation projects 445(5) Solar Photovoltaic power projects(6) Solar Thermal power projects

17001300

DEBT-EQUITY RATIO

20. Clause (1) of Regulation 13 of the RE Regulations provides that the debt-equity

ratio of 70:30 is to be considered for determination of generic tariff based on suo motu

petition.

21. Based on the debt equity ratio of 70:30, the debt and equity components of the

normative capital cost for determination of tariff for the RE projects have been worked out

as under:

(Rs in lakh)

Renewable Energy Projects Debt Equity

(1) Wind Energy (for all zones) 360.5 154.5

(2) Small Hydro

Himachal Pradesh, Uttarakhand and North EasternStates (below 5 MW) 490 210

Himachal Pradesh, Uttarakhand and North EasternStates (5 MW to 25 MW) 441 189

Other States (below 5 MW) 385 165

Other States ( 5MW to 25 MW) 350 150

(3) Biomass 315 135

(4) Non-fossil fuel co-generation 311.5 133.5

(5) Solar PV(6) Solar Thermal

1190910

510390

RETURN ON EQUITY

22. Clause (1) of Regulation 16 of the RE Regulations provides that the value base for

the equity shall be 30% of the capital cost for generic tariff determination. Clause (2) of

the said regulation stipulates the normative return on equity as under:

(a) Pre-tax 19% per annum for the first 10 years, and

(b) Pre-tax 24% per annum from the 11th year.

23. In accordance with the above regulations, return on equity has been worked out in

respect of the RE generating technologies taking the value base of equity as 30% of the

capital cost as under:

(Rs in lakh)Details Wind

EnergySmall Hydro Biomas

sNon-

fossil fuelco-

generation

SolarPV

SolarThermal

Less than5 MW(HimachalPradesh,Uttarakhand andNorthEasternStates)

Between 5MW to 25MW(HimachalPradesh,Uttarakhand andNorthEasternStates


Otherstates (5MWto 25MW)

Equityopening(Rs inlakh)

154.5 210 189 165 150 135 133.5 510 390

Return onEquity forthe first 10years (%)

19 19 19 19 19 19 19 19 19

Return onEquityafter first10 years(%)

24 24 24 24 24 24 24 24 24

Weightedaveragerate onROE (%)

22 22.57 22.57 22.57 22.57 21.50 21.50 22 22

INTEREST ON LOAN

24. Clause (1) of Regulation 14 of the RE Regulations provides that the loan tenure of

10 years is to be considered for the purpose of determination of tariff for RE projects.

Clause (2) of the said regulation provides for computation of the rate of interest on loan

as under:

“(a) The loans arrived at in the manner indicated above shall be considered as grossnormative loan for calculation for interest on loan. The normative loan outstanding as onApril 1st of every year shall be worked out by deducting the cumulative repayment up toMarch 31st of previous year from the gross normative loan.

(b) For the purpose of computation of tariff, the normative interest rate shall be consideredas average long term prime lending rate (LTPLR) of State Bank of India (SBI) prevalentduring the previous year plus 150 basis points.

(c) Notwithstanding any moratorium period availed by the generating company, therepayment of loan shall be considered from the first year of commercial operation of theproject and shall be equal to the annual depreciation allowed.”

25. In terms of the above, the computations of interest on loan for determination of

tariff in respect of the RE projects treating the value base of loan as 70% of the capital

cost and the weighted average of SBI prime lending rate for the financial year 2008-09

plus 150 basis points, are as under:


EnergySmall Hydro Biomass Non-fossil

fuel co-generation

SolarPV

SolarThermal

Less than 5MW(HimachalPradesh,Uttarakhandand NorthEasternStates)

Between 5MW to 25MW(HimachalPradesh,Uttarakhandand NorthEasternStates


Otherstates(5 MWto 25MW)

Gross loanopening (Rsin lakh)

360.5 490 441 385 350 315 311.5 1190 910

Period ofrepayment 10 10 10 10 10 10 10 10 10

Rate ofinterest (%) 14.29 14.29 14.29 14.29 14.29 14.29 14.29 14.29 14.29

DEPRECIATION

26. Regulation 15 of the RE Regulations provides for computation of depreciation in

the following manner:

“(1) The value base for the purpose of depreciation shall be the Capital Cost of the assetadmitted by the Commission. The Salvage value of the asset shall be considered as 10%and depreciation shall be allowed up to maximum of 90% of the Capital Cost of the asset.

(2) Depreciation per annum shall be based on ‘Differential Depreciation Approach’ overloan tenure and period beyond loan tenure over useful life computed on ‘Straight LineMethod’. The depreciation rate for the first 10 years of the Tariff Period shall be 7% per

annum and the remaining depreciation shall be spread over the remaining useful life ofthe project from 11th year onwards.

(3) Depreciation shall be chargeable from the first year of commercial operation.

Provided that in case of commercial operation of the asset for part of the year,depreciation shall be charged on pro rata basis.”

27. In accordance with the above, the rate of depreciation for the first 10 years has

been considered as 7% and the rate of depreciation from the 11th year onwards has been

spread over the balance useful life of the RE project as under:

Details WindEnergy

SmallHydro

Biomass Non-fossilfuel co-

generation

SolarPV

SolarThermal

Useful Life (in years)25 35 20 20 25 25

Rate of depreciation for10 years (%) 7.00 7.00 7.00 7.00 7.00 7.00

Rate of depreciationafter first 10 years (%) 1.33 0.80 2.00 2.00 1.33 1.33

INTEREST ON WORKING CAPITAL

28. Regulation 18 of the RE Regulations provides for the working capital requirements of

the RE projects as under:

“(1) The Working Capital requirement in respect of wind energy projects, small hydro

power, solar PV and Solar thermal power projects shall be computed in accordance with

the following :

Wind Energy / Small Hydro Power /Solar PV / Solar thermal

(a) Operation & Maintenance expenses for one month;

(b) Receivables equivalent to 2 (Two) months of energy charges for sale of electricity

calculated on the normative CUF;

(c) Maintenance @ 15% of operation and maintenance expenses

(2) The Working Capital requirement in respect of biomass power projects and non-fossil

fuel based co-generation projects shall be computed in accordance with the following

clause:

Biomass Power and Non-fossil fuel Co-generation(a) Fuel costs for four months equivalent to normative PLF;

(b) Operation & Maintenance expense for one month;

(c) Receivables equivalent to 2 (Two) months of fixed and variable charges for sale of

electricity calculated on the target PLF;

(d) Maintenance spare @ 15% of operation and maintenance expenses

(3) Interest on Working Capital shall be at interest rate equivalent to average State Bank of

India short term PLR during the previous year plus 100 basis points”

29. Receivables equivalent to two months of actual fixed cost have been considered.

The interest on working capital has been worked out as specified below for determination

of tariff of the RE projects:


EnergySmallHydro

Biomass Non-fossilfuel co-

generation

SolarPV

SolarThermal

(A) For Fixed charges

(i) O&M expenses (month) 1 1 1 1 1 1

(ii) Maintenance spares (%)of O&M expenses

15 15 15 15 15 15

(iii) Receivables (months) 2 2 2 2 2 2

(B) For Variable Charges

Biomass/Bagasse stock(months)

- - 4 4 - -

(C ) Rate of Interest onworking capital (%)

13.79 13.79 13.79 13.79 13.79 13.79

OPERATION AND MAINTENANCE EXPENSES

30. Regulation 18 of the RE Regulations provides for Operation and Maintenance

Expenses (O&M expenses) in respect of RE projects as under:

“Operation and Maintenance Expenses

(1) Operation and Maintenance or O&M expenses’ shall comprise repair andmaintenance (R&M), establishment including employee expenses, and administrativeand general expenses.

(2) Operation and maintenance expenses shall be determined for the Tariff Period based onnormative O&M expenses specified by the Commission subsequently in theseRegulations for the first Year of Control Period.

(3) Normative O&M expenses allowed during first year of the Control Period (i.e.FY 2009-10) under these Regulations shall be escalated at the rate of 5.72% per annum over theTariff Period.”

31. The normative O&M expenses for various RE technologies specified under the

relevant provisions of the RE Regulations are as under:

(a) Wind Energy: Regulation 27 of RE Regulations provides that the normative O&M

expenses for the first year of the control period (i.e. 2009-10) is Rs 6.50 lakh per MW and

shall be escalated at the rate of 5.72% per annum over the tariff period for determination

of the levellised tariff.

(b) Small Hydro: Regulation 32 of RE Regulations provides that the normative O& M

expenses for small hydro projects for the year 2009-10 shall be as given in the table

below and shall be escalated at the rate of 5.72% per annum over the tariff period for

determination of the levellised tariff:

Region Project Size O&M expenses(Rs in lakh/MW)

Himachal Pradesh, Uttarakhandand North Eastern States

Below 5 MW5 MW to 25 MW

2115

Other States Below 5 MW5 MW to 25 MW

1712

(c) Biomass: Regulation 39 of RE Regulations provides that the normative O& M

expenses for biomass based projects for the year 2009-10 shall be Rs 20.25 lakh/MW

and shall be escalated at the rate of 5.72% per annum over the tariff period for

determination of the levellised tariff.

(d) Non-fossil fuel co-generation: As per Regulation 55 of RE Regulations, the

normative O&M Expenses for non-fossil fuel co-generation projects for the year 2009-10

is Rs 13.35 lakh per MW which shall be escalated at the rate of 5.72% per annum over

the tariff period for determination of the levellised tariff.

(e) Solar PV: In terms of Regulation 59 of RE Regulations, the normative O&M expenses for

solar PV projects for the year 2009-10 is Rs 9.00 lakh/MW which shall be escalated at the

rate of 5.72% per annum over the tariff period for determination of the levellised tariff.

(f) Solar Thermal: Regulation 63 specifies the normative O&M expenses for solar

thermal power projects during the first year of operation as Rs 13.0 lakh/MW which shall

be escalated at the rate of 5.72% per annum over the tariff period for determination of the

levellised tariff.

32. The normative O&M expenses have been worked out as specified above for

determination of tariff for the renewable energy generating stations.

CAPACITY UTILISATION FACTOR

33. Regulations 26, 30, 58 and 62 of the RE Regulations specify the norms for

Capacity Utilization Factor (CUF) in respect of the renewable energy generating stations

except biomass and non- fossil fuel based cogeneration as per the details given in the

table below which has been considered for determination of tariff.

Renewable Energy Projects CUF

(A) Wind EnergyAnnual Mean Wind Power Density (W/m2) Wind

zone-1 (200-250) Windzone-2 (250-300) Windzone-3 (300-400) Windzone-4 (above 400)

20%23%27%30%

(B) Small Hydro(i) Himachal Pradesh, Uttarakhand and North Eastern

States(ii) Other States

45%30%

(C) Solar PV

(D) Solar Thermal

19%

23%

34. In terms of clause (2) of Regulation 26 of the RE Regulations, the annual mean

wind power density specified above is to be measured at 50 meter hub-height and as per

clause (3), for the purpose of classification of wind energy project into particular wind

zone class, the State-wise wind power density map prepared by Centre for Wind Energy

Technology (C-WET) annexed as schedule to the said regulations, is to be considered.

PLANT LOAD FACTOR (PLF)

35. Regulation 36 of the RE Regulations specifies the plant load factor for biomass

based renewable energy generating stations as given in the table below which has been

considered for determination of fixed charges component of tariff.

Renewable Energy Projects PLF (%)

Biomass(a) During stabilization (6 months)(b) During first year after stabilization(c) Second year onwards

60%70%80%

36. Regulation 49 of the RE Regulations stipulates the plant load factor for non-fossil

fuel based co-generation projects as under, computed on the basis of plant availability for

number of operating days considering the operations during crushing season and off-

season and load factor of 92%. The number of operating days for different States as

specified in the regulations is as under:

States Operating days PLF (%)

Uttar Pradeshand Andhra Pradesh 120 days (crushing)+ 60 days (off-season) = 180 days 45%

Tamil Nadu andMaharashtra 180 days (crushing)+ 60 days (off-season) = 240 days 60%

Other States 150 days (crushing) + 60 days (off-season) = 210 days 53%

AUXILIARY POWER CONSUMPTION

37. Regulations 31, 37, 50 and 64 of the RE Regulations stipulate the auxiliary power

consumption factor as under which has been considered for determination of tariff of the

RE projects :

Renewable Energy Projects Auxiliary Consumption factor

Small Hydro 1.0%

Biomass 10.0%

Non-fossil fuel co-generation 8.5%

Solar Thermal 10.0%

STATION HEAT RATE

38. The Station Heat Rates (SHR) specified under Regulations 38 and 51 of the RE

Regulations for biomass and non-fossil fuel based co-generation projects are as under:

Renewable Energy ProjectsSHR

(kCal / kWh)

Biomass 3800

Non-fossil fuel co-generation (for power component) 3600

FUEL

(a) Fuel Mix

39. Clause (1) of Regulation 40 of the RE Regulations stipulates that the biomass

based power generating stations are to be designed in a way that it uses different types

of non-fossil fuels available within the vicinity of biomass power project such as crop

residues, agro-industrial residues, forest residues etc. and other biomass fuels as may be

approved by the Ministry of Non-Renewable Energy (MNRE). Clause (2) of the said

regulations stipulates that the biomass power generating companies are to ensure fuel

management plan to ensure adequate availability of fuel to meet the respective project

requirements.

(b) Use of fossil fuel

40. In terms of Regulation 41 of the RE Regulations, the use of fossil fuel is to be

limited to the extent of 15% of total fuel consumption on annual basis and in terms of

Regulation 42 of the said regulations the mechanism for monitoring the use of fossil fuel

is as under:

“(1) The Project developer shall furnish a monthly fuel usage statement andmonthly fuel procurement statement duly certified by Chartered Accountant tothe beneficiary (with a copy to appropriate agency appointed by the Commissionfor the purpose of monitoring the fossil and non-fossil fuel consumption) for eachmonth, along with the monthly energy bill. The statement shall cover details suchas;

(a) Quantity of fuel (in tonnes) for each fuel type (biomass fuels and fossil fuels)consumed and procured during the month for power generation purposes;

(b) Cumulative quantity (in tonnes) of each fuel type consumed and procured tillthe end of that month during the year;

(c) Actual (gross and net) energy generation (denominated in units) during themonth;

(d) Cumulative actual (gross and net) energy generation (denominated in units)until the end of that month during the year;

(e) Opening fuel stock quantity (in tonnes);

(f) Receipt of fuel quantity (in tonnes) at the power plant site; and

(g) Closing fuel stock quantity (in tonnes) for each fuel type (biomass fuels andfossil fuels) available at the power plant site.

(2) Non-compliance with the condition of fossil fuel usage by the project developer,during any financial year, shall result in withdrawal of applicability of tariff as perthese Regulations for such biomass based power project.”

(c) Calorific value

41. In terms of Regulation 43 of the RE Regulations the calorific value of biomass fuel

for determination of tariff is as under:

State Calorific value(kCal/kg)Andhra Pradesh 3275

Haryana 3458

Maharashtra 3611

Madhya Pradesh 3612

Punjab 3368Rajasthan 3689

Tamilnadu 3300

Uttar Pradesh 3371

Other States 3467

42. In terms of Regulation 52 of the said regulations, the gross calorific value for

bagasse to be considered in case of non-fossil fuel co-generation projects is 2250

kCal/kg and for the use of biomass fuels other than bagasse, the calorific value as

specified above shall be applicable.

(d) Fuel cost

43. In terms of Regulation 44 of the RE Regulations, the biomass fuel price during the

period 2009-10 shall be as indicated in the table below:

State Biomass price(Rs/MT)

Andhra Pradesh 1301

Haryana 2168

Maharashtra 1801

Madhya Pradesh 1299

Punjab 2092

Rajasthan 1822

Tamilnadu 1823

Uttar Pradesh 1518

Other States 1797

44. In terms of Regulation 53 of the RE Regulations, the price of bagasse (for non-

fossil fuel based co-generation projects) during the period 2009-10 shall be as indicated

in the table below:

StateBagasse price

(Rs/MT)

Andhra Pradesh 899

Haryana 1411

Maharashtra 1123

Madhya Pradesh 809

Punjab 1398

Tamilnadu 1243

Uttar Pradesh 1013

Other States 1163

Subsidy or incentive by the Central / State Government

45. Regulation 22 of the RE Regulations provides as under:

“The Commission shall take into consideration any incentive or subsidy offered bythe Central or State Government, including accelerated depreciation benefit ifavailed by the generating company, for the renewable energy power plants whiledetermining the tariff under these Regulations.

Provided that the following principles shall be considered for ascertaining incometax benefit on account of accelerated depreciation, if availed, for the purpose oftariff determination:

i. Assessment of benefit shall be based on normative capital cost,accelerated depreciation rate as per relevant provisions under Income TaxAct and corporate income tax rate.

ii. Capitalisation of RE projects during second half of the fiscal year. Per unitbenefit shall be derived on levellised basis at discount factor equivalent toweighted average cost of capital.”

46. In terms of the above regulation, for the projects availing the benefit of Section 80

IA of the Income Tax Act, 1961, the Minimum Alternate Tax (MAT) @ 16.995% (15%

MAT+10% surcharge+3% education cess) for the first ten years and thereafter the

normal tax rate @ 33.99% (30% IT rate+ 10% surcharge +3% Education cess) has been

considered. For the purpose of determining net depreciation benefits, depreciation @

5.28% as per straight line method (Book depreciation as per Companies Act, 1956) has

been compared with depreciation as per Income Tax rate i.e. 80% of the written down

value method and depreciation for the first year has been calculated at the rate of 50% of

80% i.e 40%, as project is capitalized during the second half of the financial year as per

proviso (ii) to Regulation 22. Tax benefit has been worked out as per MAT/normal tax

rate on the net depreciation benefit. Per unit levellised accelerated depreciation benefit

has been computed considering the weighted average cost of capital as discount factor.

47. In the light of the discussion made in the preceding paragraphs, the generic tariffs

of the following RE projects for the financial year 2009-10 have been determined as

under:

RE technologies as per CERC RE Tariff Regulations Norms for FY 2009-10

LevellisedFixed

LevellisedVariable

Levellisedtotal tariff

Benefit ofAccelerated

Depreciation, ifavailed

Net LevellisedTariff upon

adjusting foraccelerated

Depreciationbenefit, (ifavailed)

(Rs / kWh) (Rs / kWh) (Rs / kWh) (Rs/kWh) (Rs/kWh)

Wind Energy

Wind Zone -1(CUF 20%)

5.63 (0.37) 5.26


4.90 (0.32) 4.58


4.17 (0.28) 3.89


3.75 (0.25) 3.5

Small Hydro Power Project

HP,Uttarakhand

and NE States(Below 5MW)

3.90 (0.23) 3.67

HP,Uttarakhand

and NE States(5MW to 25

MW)

3.35 (0.21) 3.14

Other States(Below 5 MW)

4.62 (0.27) 4.35

Other States(5 MW to 25

MW)4.00 (0.25) 3.75

Solar Power Projects

Solar PV 18.44 (1.30) 17.14

Solar Thermal 13.45 (0.91) 12.54

Biomass Power Project

AndhraPradesh

1.94 2.21 4.15 (0.10) 4.05

Haryana 2.03 3.49 5.52 (0.10) 5.42

MadhyaPradesh

1.93 2 3.93 (0.10) 3.83

Maharashtra 1.98 2.78 4.76 (0.10) 4.66

Punjab 2.03 3.46 5.49 (0.10) 5.39

Rajasthan 1.98 2.75 4.73 (0.10) 4.63

Tamil Nadu 2.01 3.07 5.08 (0.10) 4.98

Uttar Pradesh 1.96 2.51 4.47 (0.10) 4.37

Others 2.00 2.88 4.88 (0.10) 4.78

Non-fossil fuel based cogeneration

AndhraPradesh

2.86 2.07 4.93 (0.15) 4.78

Haryana 2.53 3.25 5.78 (0.13) 5.65

Maharashtra 2.21 2.59 4.80 (0.12) 4.68

MadhyaPradesh

2.43 1.86 4.29 (0.13) 4.16

Punjab 2.53 3.22 5.75 (0.13) 5.62

Tamil Nadu 2.24 2.86 5.10 (0.12) 4.98

Uttar Pradesh 2.88 2.33 5.21 (0.15) 5.06

Others 2.49 2.68 5.17 (0.13) 5.04

48. The detailed calculations of the generic tariff are annexed to this order as per the

details given hereunder:

(a) Wind power projects:

(i) Wind Zone-I Annexure 1A(ii) Wind Zone-II Annexure 1B(iii) Wind Zone-III Annexure 1C(iv) Wind Zone-IV Annexure 1D

(b) Small hydro projects:

(I) Projects Less than 5 MW for HP, Utarakhand and Annexure 2ANE States

(II) Projects between 5 MW and 25 MW for HP, Utarakhand Annexure 2BAnd NE States

(III) Projects less than 5 MW for other States Annexure 2C

(IV) Projects between 5 MW and 25 MW for other Annexure 2DStates

(c) Bio-mass power project:

(I) Andhra Pradesh Annexure 3A(II) Haryana Annexure 3B(III) Maharashtra Annexure 3C(IV) Punjab Annexure 3D(V) Madhya Pradesh Annexure 3E(VI) Rajasthan Annexure 3F(VII) Uttar Pradesh Annexure 3G(VIII) TamilNadu Annexure 3H(IX) Other States Annexure 3I

(d) Co-generation projects:

(I) Andhra Pradesh Annexure 4A(II) Haryana Annexure 4B(III) Maharashtra Annexure 4C(IV) Madhya Pradesh Annexure 4D(V) Punjab Annexure 4E(VI) Uttar Pradesh Annexure 4F(VII) TamilNadu Annexure 4G(VIII) Other States Annexure 4H

(e) Solar projects:

(I) Solar PV projects Annexure 5A(II) Solar thermal projects Annexure 5B

49. The above generic tariff is for the RE power projects commissioned during the FY

2009-10 and fulfilling the conditions of the RE regulations.

-sd/- -sd/- -sd/- -sd/-[V.S.VERMA] [S. JAYARAMAN] [R. KRISHNAMOORTHY] [Dr. PRAMOD DEO]

MEMBER MEMBER MEMBER CHAIRPERSON

New Delhi dated the 3rd December, 2009

annexure -a 5mw fed solar energy (1)

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