solar highways

7/31/2019 Solar Highways

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Independent Project

by

Pranay SurakantiPGPIM Batch-3

Adani Institute of Infrastructure

Management


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Solar Power Vital Stats

Around 1000MW of installed capacity

CERC decides tariffs based on assumptions about capital

and operating costs. Costs between Rs.9 to 10 crore per MW for MW scale

plants.

Breakup: 2 crore for mounting and civil work. 5-6 crore on

panel cost. 20-30 lakh for land. Rest for powerequipment. (CERC tariff order)

Drivers: Capacity factor, Interest cost, project cost


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Solar Highways

Concept: Using land occupied by highways to generate solarpower.

Why Highways: NHAI has so far 16,500km of 4/6 lanehighways under its NHDP program

Abundance: 1.32% of total land area

Open Space

Limited Use

Other Similar Applications:

Railway Tracks

Irrigation Canals


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Objectives

The main objective is to understand the impediments to the

implementation of this simple idea

Policy and Legal Implications that need to be cleared before.

Technology and engineering Challenges

Economic Benefits: Model-wise

Evaluation of operating models based on above criteria


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Policy

Who owns the land in a road project?

Clause from MCA:

13.3 The license and the right to use the Site shall be granted for

the purpose of carrying out the functions placed upon the

Concessionaire under the Agreement and not for any otherpurposes

Clauses 3.2 (vi) and 9.1 (xi) further restrict the Concessionaire from

creating an encumbrance , lease, transfer or part possession,

except as provided for by the CA.

In short, NHAI owns the land, and only has given the right

for to use the land for the purpose of construction or

extension of the highway, and in return the Concessionaire

gets the right to charge toll as prescribed.


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Policy (Contd.)

By extension, the right to any alternative use has to be given

specifically by NHAI.

Will the Concessionaire have the right to gain revenue fromalternate uses?

This right also needs to be specified by the NHAI, similar to the right

to benefit from facilities such as fuel stations, food courts and

hoardings.

It would depend on how the NHAI is wants to structure the project,

but it cannot pass on the right to alternate revenue to a third party

by itself because the Concessionaire will be in possession of the land.


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Technical and Engineering Viability

Over-Head Models

A Roof over the Road

T-Shaped median structure

T-shaped shoulder structure

Approximate Height 12 meters

After Modeling in STAAD Pro, we found that the cost ofRoof-over-Road structure was most comparable with the

normal solar plant (2 crore/MW), provided panels are

placed horizontally and not tilted.


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Roof over the Road


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T-Shaped Structure


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Technical and Engineering

Ground level structure:

Excess Land at interchanges and between service roads

Higher perceived safety

Well established cost structure

Easy acceptability

NHAI acquires more land than it requires for having a safetymargin.

E.g. 4 lane highway requires 60 meter corridor and uses only 30meters for the road structure

6 lane expressway between Surat and Mumbai is going to need a120 meter corridor for a 50mtr road

So it is possible to utilise this land for solar power, providedgovernment takes initiative


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Operating Structure

What are the ways in which the model can be

implemented? Who are the players in each model?

BOT projects: NHAI-Concessionaire-Developer

NHAI-Concessionaire

Govt. tolled or un-tolled highways NHAI or State GovernmentDeveloper

Government Implementation Authority (e.g. GEDA)


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Payment Mechanisms

One time Payment: based on share of project value

Fixed Annual Payment: based on share of project value

Revenue Share: as a percentage

Electricity Share: supplying a certain number of electricityunits

Recommended Method: Revenue Sharing

The costs is fixed Gives incentive to increase efficiency factor

Gives incentive for govt./concessionaire to continue giving goodservice


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Evaluation

NHAI-Concessionaire-Developer

Advantages

Protects rights of the concessionaire as the possessor of land.

Risks are shared by those best placed to manage those risks.

Disadvantage: transaction costs will increase, especially monitoring andco-ordination while shifting.

NHAI and Concessionaire cum developer

Concessionaire becomes solar power producer

Advantages are that it reduces transaction costs and increases the

reliability of the cashflows for the concessionaire, since they are both

not correlated


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Evaluation

Government and Developer:

Good model for un-tolled roads

Can be structured as a BOT project which can generate free

cash flow for the life of the panels Pays for road Maintenance

Government owned Implementation Authority:

Low transaction costs

Low funding costs

High initial outlay


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Conclusion

Awareness and Policy support from within the governmentseems to be the core impediment

Engineering not a barrier to implementation because of excessland availability

Viable option for concessionaire and government

Current PPP structures can be applied to this easily, for fasterimplementation

News: World Bank supports installation of Solar Panels along highways

in Gujarat

Indian Banks See Highway Toll-Like Cash in Solar
http://articles.timesofindia.indiatimes.com/2012-06-13/ahmedabad/32214009_1_solar-panels-state-roads-wbhttp://articles.timesofindia.indiatimes.com/2012-06-13/ahmedabad/32214009_1_solar-panels-state-roads-wbhttp://www.bloomberg.com/news/2011-12-29/indian-banks-see-highway-toll-like-cash-in-solar-welspun-says.htmlhttp://www.bloomberg.com/news/2011-12-29/indian-banks-see-highway-toll-like-cash-in-solar-welspun-says.htmlhttp://www.bloomberg.com/news/2011-12-29/indian-banks-see-highway-toll-like-cash-in-solar-welspun-says.htmlhttp://www.bloomberg.com/news/2011-12-29/indian-banks-see-highway-toll-like-cash-in-solar-welspun-says.htmlhttp://www.bloomberg.com/news/2011-12-29/indian-banks-see-highway-toll-like-cash-in-solar-welspun-says.htmlhttp://www.bloomberg.com/news/2011-12-29/indian-banks-see-highway-toll-like-cash-in-solar-welspun-says.htmlhttp://www.bloomberg.com/news/2011-12-29/indian-banks-see-highway-toll-like-cash-in-solar-welspun-says.htmlhttp://www.bloomberg.com/news/2011-12-29/indian-banks-see-highway-toll-like-cash-in-solar-welspun-says.htmlhttp://www.bloomberg.com/news/2011-12-29/indian-banks-see-highway-toll-like-cash-in-solar-welspun-says.htmlhttp://www.bloomberg.com/news/2011-12-29/indian-banks-see-highway-toll-like-cash-in-solar-welspun-says.htmlhttp://articles.timesofindia.indiatimes.com/2012-06-13/ahmedabad/32214009_1_solar-panels-state-roads-wbhttp://articles.timesofindia.indiatimes.com/2012-06-13/ahmedabad/32214009_1_solar-panels-state-roads-wb


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Acknowledgement Prof. Girija Sharan

Prof. Pramod Yadav

Ramachandran Rajagopalan Vishal Vora

Ravi Kumar PBV


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solar highways

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