1. 1. by Prof. Bhosale V.B. Opportunity and Cost Analysis
2. 2. I) ELECTRICITY ACT 2003 : Most transformational & dynamic act till date includes laid guidelines for Renewable energy. SECTION 61(h): While specifying terms and condition for tariff determination the commission shall consider the promotion of generation from renewable energy sources. SECTION 86(1) (e): State commission shall promote generation of Electricity from renewable energy sources. It shall be done by providing grid connectivity & sale of Electricity to anyone. II) NATIONAL ELECTRICITY POLICY 2005 : SECTION 6.4 : This section states that in present stage non conventional and conventional energy cannot compete at same similar tariff and hence power shall be procured from non-conventional sources at preferential tariff as determined by appropriate commission.
3. 3. Amendment of National tariff policy for Solar specific RPOs. Solar specific RPOs 025 % in 2013 to 3 % by 2022. REC mechanism . Encourage state specific solar policies. State wise RPO orders by Regulators. Exemption for Environmental clearance for Solar Power Projects.
4. 4. Launched by Govt. of India in January 2011. One of the major initiative at global level in promotion of Solar energy technologies. Mission aims to achieve grid tariff parity by 2022. Large scale utilization, rapid diffusion and deployment at a scale which leads to cost reduction. R&D pilot projects and Technology Demonstration.
5. 5. Average tariff for selected projects was 1216 paisa/kWh which was 32% lower than CERC approved benchmark tariff 1791 paisa/kWh. In a Batch I a total of 204 MW capacity grid connected solar power projects have been commissioned.
6. 6. Maharashtra has reasonably high solar insolation 4-5 kWh/sq. meter with 280-300 clear sunny days. Eastern Maharashtra considered to be most suitable region for solar power projects OBJECTIVE To generate 1000 MW of Solar energy by 2016. To achieve grid parity by 2016 . Promotion of R&D and facilitation of technology transfer. Promotion of local manufacturing facilities.
7. 7. Financial outlay of Subsidy Scheme
8. 8. Subsidy under each project will be distributed into three installments by state government
9. 9. Project developer should not procure any incentives/ subsidy from central government. PPAs should be singed with MAHADISCOM. Capacity Utilization Factor of Solar PV should be more than 19% for initial two years of installation. An audited detailed report and energy generation report should be submitted to MEDA.
10. 10. Capital Cost: Normative Capital cost INR 700 Lakhs/MW for 2014- 15 as per MERC. Annual Energy Yield: There are number of factors(e.g. Air pollution, Shading, Soiling, Ambient temperature, Downtime etc.) Which affect annual yield of Solar PV. For 1 MWp Plant annual yield would averaged around 1.4 million kWh units. Yield prediction are assumed for next 25 years. Certified Emission Reductions: As India is non Annex 1 party under UN Clean Development Mechanism (CDM) qualifying solar projects could generate Certified Emission Reductions(CERs)
11. 11. Energy Price : Solar PV Plant under REC mechanism can earn its revenue from selling grey. In the financial model it is assumed that grey component of energy sold to State discom at MSEDCL. Operation and Maintenance cost: One of the major benefit of Solar PV plant is less O & M cost as compared to other renewable energy technologies. Financing Assumptions: General financial assumptions for a project in India as follows Financial Structure: Equity 30 % and debt 70 % as assumed in MERC tariff order. Debt repayment is taken over as 10 years. Interest rate on term loan and work capital is taken as 12.87% and 13.37% respectively.
12. 12. Great opportunity, favorable Government Policies and assured returns on Solar PV project installations make this attractive proposal for Green entrepreneurship. We as a consultant and promoter of Solar technology have tailored Solar PV business solutions. Please feel free to contact: Mr. V. Bhosale 8390123426