Solar Photovoltaic Water PumpingSolar Photovoltaic Water PumpingA A permanent solutionpermanent solution to the Small farmers’ to the Small farmers’

problemsproblems

Lt. Co. T.S. Surendra (Retd)Managing DirectorPolyene Film Industries Ltd.7 - 1 - 21/A, BegumpetHyderabad - 500 016Indiae-mail suryovon@hd2.dot.net.in

1 NEED OF SMALL FARMERS

2 PROBLEMS WITH GRID POWER AND OIL ENGINES

3 SOLAR PV WATER PUMPING FOR IRRIGATION

4 FEEDBACK FROM THE FIELD & STUDIES CONDUCTED

5 OUR PROPOSAL FOR 600 SPV PUMPING SYSTEMS UPTO SEP - 2001

6 ECONOMICS AND FINANCING MECHANISM

7 CONCLUSION

The Presentation

Typical land holding between 3-5 acres

The number of crops grown are usually one or two per year.

Main obstacle to increase in number of crops is non-availability of power for irrigation.

The sources of irrigation are canals, tanks, wells and rain.

The wells used are either shallow open wells or deep bore wells depending on the water table in the area

1.1 million open wells dug for small farmers in the past few years as part of the employment generating Million Well Scheme (MWS)

In AP, it is estimated that there at least 20,000 open wells awaiting energisation

The Irrigation Requirements of a Small Farmer

• Imperative need to conserve water especially ground water. Our progressive State Govt. deserve kudos for water shed development, rain harvesting and other programs. Over-exploitation of the ground water , as done with electric pumps and oil engines, has to be obviated.• Electrical energy generation costs are progressively increasing with tariff increases becoming inevitable.• The demand for electrical energy is far outstripping supply, especially in the agricultural sector, and it is becoming increasingly difficult to meet this exponential growth in demand.• The per capita energy consumption is often considered a veritable index of the economic well being of a Nation.•Increasingly difficult for the Government to continue subsidies to the agriculture sector in view of rising costs of generation, T & D with simultaneous (exponential) growth of demand. It would be cost-prohibitive for the Government to extend utility grid power to remote areas especially to meet agriculture loads. T & D losses and and rampant pilferage of power. To deliver about 3600 kWh of energy to the pump motor , almost 7000 kWh of energy would have to be generated concomitant loss of revenue to the Electricity Board. Grid power unreliable and of poor quality leading to motor burn outs etc. A coal-based thermal power station would generate 1.6 kg of CO2

emission for every kWh of electric energy generated. Oil engines have problems of logistics, rising fuel cost and much higher O & M costs.•There is a paramount need for a power source that is de-centralised, modular, energy efficient and reliable.

PROBLEMS WITH GRID SUPPLY

WHY SOLAR PV PUMPING SYSTEMS ? Require no fuel, are quick, pollution free & require little

or no maintenance.

Pump best in sunny weather when need for water is greatest.

Systems are modular, expandable. Pump may be installed with half sized solar electric array to deliver half volume. Later can be expanded to full capacity.

Most economical when combined with water conservation techniques such as drip irrigation & night time distribution of (day time pumped & stored) water.

Decentralized system avoids any unnecessary expenditure on T & D networks i.e. a Solar pump is energy efficient.

The 1.1 million shallow open wells dug under the Million Well Scheme are ideally suited for SPV pumping systems.

Lend themselves to optimum exploitation of scarce ground water. A 900Wp (peak watts) PV-powered DC floating pump (Polyene make) operating the whole day can be equated to a 3HP electrical pump set, generally inefficient, pumping for about 4 hours when power may be available

Examples of Solar Pump Configurations

(a) Submerged motor/ pump set (b) Submerged pump with surface motor (c) Floating motor/ pump set (d) Surface pump with surface motor

PHOTOVOLTAIC PUMPING SYSTEMS

PV array to convert the Solar light Energy to DC Electricity

Mounting structure to support the array (for eg. of aluminum on RCC pillars).

Motor and pump system.

Storage and distribution system to deliver water to point of use

Protection devices - earthing, lightning & surge suppression.

Cables & Junction boxes

MAIN COMPONENTS

A high efficiency permanent magnet DC motor with efficiency from 85% - 89% from part load to full load.

The single stage centrifugal pump is specially designed for Indian conditions.

It is a zero suction pump i.e. the floating pump assumes the level of water at all times with pump parts below water level.

Being a zero suction pump, it does not have suction head limitations as in the case of DC surface suction pumps.

The pump requires no foot valve. It has no priming problems.

The wire to water efficiency of the system is in excess of 60%.

UNIQUE ADVANTAGES OF THE POLYENE FLOATING PUMP

Case Studies

Technical performance, customer utilization & local organizational support

Customer benefits and changes in cropping patterns

Case Studies1. ASCI Study - An evaluation study of all installed SPV systems, supported by

MNES. Polyene’s DC floating pump SPV systems were considered the best installed in terms of performance and farmer satisfaction.

2. NABARD Study - was based on Polyene’s floating pump system. The study concluded that Solar PV pumping systems were ideally suited for small farmers and further established that such systems were economically viable. Salient features of the study carried out in AP (Nellore) are high-lighted in subsequent frames.

3. WINROCK INTERNATIONAL (INDIA) Study - commended the performance and financial models adopted by Polyene and concluded that the programme has vast potential.

4. SOLAR DEVELOPMENT CORPORATION - Visit of International Team. Their observations are reproduced below:

“ We were impressed by PFI’s technical capabilities and attention to servicing requirements. We were further impressed by the vision and commitment of your staff to harnessing the Sun’s energy to achieve high social impacts. PFI certainly achieves the most water pumping value for the dollar of any PV-based operation I know, anywhere. Personally, we would like to see PFI continue and expand its valuable operations.”

NOTE: The Polyene Group have so far installed more than 200 DC floating Solar pumping systems over the past 6 years, as demonstration. About 120 of these systems have been installed in Andhra Pradesh in the districts of Chittoor, Nellore, Mahabubnagar and Prakasam for the benefit of small farmers belonging to the disadvantaged classes.

Sl Type CropCrop Area

Gross Income

Costs of cultivation

Other costs

Net income

No. acres Rs Rs Rs Rs1 Pre development

Well with pumpset Pulses 1 13600 5700 901 6999Groundnut 2

Post developmentWell with pumpset Paddy 2and SPV pumpset Groundnut 1 50000 27400 13757 8843

Vegetables 1

2 Pre developmentWell without pumpGroundnut 2 9000 5000 810 3190Post developmentWell dug and Vegetables 1SPV pumpset Flowers 1 57000 34300 5619 17081

Groundnut 1

3 Pre developmentRain fed Pulses 2 2600 1200 316 1084Post developmentWell dug and Vegetable 1SPV pumpset Gingily 1 54800 28950 4923 20927

Groundnut 2

Increase in income after SPV Pumping System *Increase in income after SPV Pumping System *

* - Source: NABARD report based on SPV pumping systems installed by PFI* - Source: NABARD report based on SPV pumping systems installed by PFI* - Source: NABARD report based on SPV pumping systems installed by PFI* - Source: NABARD report based on SPV pumping systems installed by PFI

Model Crop Season AreaTotal

IncomeTotal cost Net income

acres Rs Rs RsFarm Model 1Pre-development Groundnut Kharif 1 5927.00 3333.00 2594.00

J owar Kharif 0.75 2376.00 1295.00 1081.00Groundnut Rabi 0.5 2963.00 1667.00 1296.00Wheat Rabi 1 3960.00 2559.00 1401.00Total 3.25 15226.00 8854.00 6372.00

Post-development Vegetable Kharif 1.25 20820.00 8866.00 11954.00Groundnut Kharif 0.5 5916.00 1667.00 4249.00Groundnut Rabi 0.625 7395.00 2083.00 5312.00Vegetable Rabi 0.5 8242.00 3388.00 4854.00Vegetable Summer 0.5 7971.00 3586.00 4385.00Total 3.375 50344.00 19590.00 30754.00

Farm Model 2Pre-development Groundnut Kharif 1 5927.00 3333.00 2594.00

Paddy Kharif 0.75 1901.00 2716.00 -815.00Groundnut Rabi 0.5 2963.00 1667.00 1296.00Total 2.25 10791.00 7716.00 3075.00

Post-development Paddy Kharif 0.5 4819.00 1810.00 3009.00Vegetable Kharif 1 16656.00 7093.00 9563.00Vegetable Rabi 0.75 12363.00 5082.00 7281.00Wheat Rabi 1 7529.00 2559.00 4970.00Vegetable Summer 0.25 9964.00 4483.00 5481.00Total 3.5 51331.00 21027.00 30304.00

Farm Model 3Pre-development Sugarcane Kharif 0.625 9213.00 6774.00 2439.00

J owar Kharif 1 3168.00 1726.00 1442.00Wheat Rabi 1 3960.00 2559.00 1401.00Total 2.625 16341.00 11059.00 5282.00

Post-development Sugarcane Kharif 0.625 21019.00 6774.00 14245.00Vegetable Kharif 1 16656.00 7093.00 9563.00Vegetable Rabi 1 16485.00 6775.00 9710.00Total 2.625 54160.00 20642.00 33518.00

NABARD RECOMMENDATIONSNABARD RECOMMENDATIONSNABARD RECOMMENDATIONSNABARD RECOMMENDATIONS

FIELD VISIT OBSERVATIONS (SALIENT)FIELD VISIT OBSERVATIONS (SALIENT)

In A.P., it takes 2 to 7 years for well energisation from utility power.

Problem of Voltage fluctuation causing burn out of Motors & Non availability of supply at peak period.

In A.P. Power Tariff has gone up to Rs.1800/- /Year/HP.

Cost of Diesel has increased to Rs.12 / litre (Now Rs.16 / Litre) resulting in uneconomic agricultural production.

Situation above has enthused many farmers including small to opt for solar pump set.

FINANCIAL VIABILITYFINANCIAL VIABILITY

Financial Viability Analysis (ANNR) for different farm models indicate IRR > 25% justifying loan assistance upto Rs.30,000.

CONTRIBUTION FROM FARMERSCONTRIBUTION FROM FARMERS

Economic Analysis shows that loans of Rs.10,000/- to Rs.30,000/- at normal rate of interest is viable and could be supported

If loan not extended to farmer, latter has to spend Rs.8,400/- / year for Diesel or wait 5 years for power supply - both of which not Economical

Saving in operating cost by using SPV pumps. Net saving Rs.8000 / year by replacing Diesel set.

FIELD VISIT OBSERVATIONS (SALIENT)FIELD VISIT OBSERVATIONS (SALIENT)

In A.P., it takes 2 to 7 years for well energisation from utility power.

Problem of Voltage fluctuation causing burn out of Motors & Non availability of supply at peak period.

In A.P. Power Tariff has gone up to Rs.1800/- /Year/HP.

Cost of Diesel has increased to Rs.12 / litre (Now Rs.16 / Litre) resulting in uneconomic agricultural production.

Situation above has enthused many farmers including small to opt for solar pump set.

FINANCIAL VIABILITYFINANCIAL VIABILITY

Financial Viability Analysis (ANNR) for different farm models indicate IRR > 25% justifying loan assistance upto Rs.30,000.

CONTRIBUTION FROM FARMERSCONTRIBUTION FROM FARMERS

Economic Analysis shows that loans of Rs.10,000/- to Rs.30,000/- at normal rate of interest is viable and could be supported

If loan not extended to farmer, latter has to spend Rs.8,400/- / year for Diesel or wait 5 years for power supply - both of which not Economical

Saving in operating cost by using SPV pumps. Net saving Rs.8000 / year by replacing Diesel set.

PROPOSAL

• Install 600 nos. of 900 Wp (peak watts) SPV DC Floating pumps for irrigation upto Sep, 2001 in the districts of Nellore, Prakasam and Mahabubnagar.

• The target customers will be small farmers belonging to the disadvantaged classes (SC and ST) owning open CI wells.

• Based on the success of this program, expand the project to 10,000 pumping systems constituted of a judicious mix if Solar PV floating and submersible pumping systems.

• The installed price per 900Wp system is Rs.2,68,795/- (including insurance for the first year) and for 600 systems is Rs.16,12,77,000/-.

• AP State Government is requested to contribute on behalf of these small farmers a sum of Rs.80,000/- per Solar pumping system i.e. a total of Rs.4.8 crores in the two year period (2000-2001 and 2001-2002)

Price, funds etc. Per SystemFor 300systems

For 600systems

Price of 900 Wp systemin Rs …… A

268,795 8,06,38,500 16,12,77,000

MNES subsidy @ Rs 125per watt …… B

1,12,500 3,37,50,000 6,75,00,000

Loan 90% of (A-B) at2.5% interest p.a.repayable in 10 years aftera 1 year moratorium

1,40,665.50 4,21,99,650 8,43,99,300

PR&RE (DRDA)Contribution

27,500 82,50,000 165,00,000

APSCCFL/TRICORcontribution

27,500 82,50,000 165,00,000

AP-Transco Contribution 25,000 75,00,000 150,00,000

FINANCIAL IMPLICATIONS

MANUFACTURE, INSTAL & MAINTAIN POLYENE FILM INDUSTRIES LTD

FINANCIAL INTERMEDIARY

FUNDING AGENCIESWORLD BANK/ IREDA

CUSTOMER

Soft loan10 Year repayment

Installation and maintenance for 10 years

Payment for SPV system

Lease Rentals

MNES subsidy available in the National Program

Soft loan covers up to 90% of system cost minus subsidy, at interest of 2.5% p.a.

10% of the costs will be borne by a promoter.

Lease rentals & maintenance charges. These may be – Annual payments or – onetime upfront

payment The FI pays the supplier the full price of the system.

Existing Funding SchemesNational ProgrammeSl.

No.Particulars

Cash Subsidy Scheme

World Bank Line ofCredit

1 Cash subsidy Rs. 125 / Wp NIL

2 Loan90% of

(asset value minus subsidy)90% of asset value

3 Interest ratePer annum

2.5%

2.5% with rebate of0.5% for promptrepayment& 0.5% for AAAfinance company

4 Repaymentterms

Yearly equal instalments in tenyears including one year

moratorium

15% in year 4, 20% inyear 7 and 65% in year10

Benefits to the Government• Saves additional generating capacity of 1.7 kW per

pump set (assuming diversity factor of 4:1). Or 1.02 MW for 600 pump sets.

• Saving on transmission & distribution networks and associated problems

• A total saving of Rs. 6.7 crores to 13.3 crores for supporting 600 Solar PV pumpsets

• Earn revenue by diverting energy to industry. • Increase in food production from small farmers• Decrease of rural to urban migration in summer

• Avoid CO2 emission of 6720 tons per year from a generating power station (134400 tons in 20 years) for 600 pumps.

Benefits to farmer

• Farmer gets a high value, high discharge pumping system for a one time up-front amount that is less than a third of the actual price .

• No fuel costs & minimal maintenance costs (up to Rs. 600/ yr).

• More economical than diesel pump sets in the long run.

• Where no pumping system exists at present,

– the SPV system enables cultivation of an extra crop.

– Saves time and labour

– improves general quality of life with higher levels of income

• Extra crop enables easy repayment loan taken for installing system

ECONOMICS OF ELECTRICAL Vs SOLAR PV PUMPING - 1

Pattern of electricity consumption percentage in the past 20 years (%) in AP :

Year 1980-81 1990-91 1998-99Domestic 10.70 12.79 20.34Agriculture 18.44 38.62 39.59Industry (LT + HT) 63.07 39.03 26.46

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80-81 90-91 98-99

DomesticAgricultureIndustry

Sale of GRID POWER (LT) in the past 20 years (MU) in AP :

Year 1980-81 1990-91 1998-99Domestic 546 2079 5090Agriculture 915 6285 9866

Industry (LT) 423 949 1492

0100020003000400050006000700080009000

10000

80-81 90-91 98-99

DomesticAgricultureIndustry

ECONOMICS OF ELECTRICAL Vs SOLAR PV PUMPING - 2

Statistics for the year 1998 - 99. Domestic Industry Agriculture

Sale of Grid Power (LT) in million units : 5090 1492 9866Revenue from Sale in Rs. Crores : 826 497 154Energization of Pumpsets (Cumulative, 98-99) : - - 1884678Price per unit (In Rs.): 1.62 3.33 0.16Cost of service per unit : 4.55 3.36 3.29Revenue Loss per unit/ Subsidised Price : 2.93 0.03 3.13Energy consumed per pump setin kWh - - 5234Cost of service per agricultural pumpset - - 17220Loss of revenue to the govt. per pump set - - 16382

Consumers Connected Load Per head / Unit(MW) Load in Watts

Domestic 7694653 4412 574

Agriculture 1792113 6541 3654

Industry (LT) 126180 2015 15970

ECONOMICS OF ELECTRICAL Vs SOLAR PV PUMPING - 3

How much would the AP Govt. save by not energising a pump set consuming 5234 kWh annually?

Rs. Rs.1. Cost to serve 1,41,736 1,41,736 (NPV over 20 years @10.5 discount rate, which is the normal life of the PV power source)2. Capital investment 50,000 1,60,000 (Figures vary from Rs.50,000/- to Rs.1,60,000/-)3. Revenue gained by diverting not factored in not factored in energy to more lucrative sectors

Total 1,91,736 3,01,736

By contributing Rs.80,000/- and opting

for a Solar pumping system, Govt. saves Rs.1,11,736/- to Rs. 2,21,736/-

per pumping system

ECONOMICS OF ELECTRICAL Vs SOLAR PV PUMPING - 4

Comparison of Life Cycle Costs

CONCLUSION•While the beginning of the 20th century heralded the era of fossil fuels, the dawn of the 21st century is noticing a perceptible shift away from fossil fuels and towards renewables. Solar Photovoltaics is expected to play a big part in the renewable energy effort of the current century. Andhra Pradesh should take the lead in promoting this pollution-free, reliable, energy-efficient and sustainable technology for the benefit of the small farmers.

• In our state of AP, under the able stewardship of our Hon’ble C.M. Sri N. Chandrababu Naidu Garu, a holistic / integrated approach for irrigation is already under implementation - Water shed development, Rain harvesting, Water conservation and advice to farmers on appropriate agricultural practices. This is where Solar Photovoltaic water pumping would assume relevance for optimum exploitation of the ground water resource and serving the small/marginal farmers for all time to come.