Training Workshop on DSM & RE
Organized by VIKSAT
6th April, 2012, Ahmedabad, INDIA
Overview of Regulatory Structure and
Role of Consumer in Regulatory Process
Dr. Omkar Jani
Principal Research Scientist (Solar)
Gujarat Energy Research and Management Institute (GERMI)
omkar.j@germi.res.in
omkar.j@germi.res.in
Outline
 Electricity Act, 2003
 Important Policies
 Important Government Organizations
 Regulatory Commissions
 Electricity Sector Overview
 Renewable Energy Support Mechanisms
 Gandhinagar Photovoltaic Rooftop Programme
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
2
Introduction
 India: Federal system of Government
 Central Government: Deals with intra-state issues
o
o
o
o
Transmission open access
Regulatory matters open to central generating stations
Additionally, funding to states for energy initiatives
So on.
 Central Government owns:
o
o
National Thermal Power Corporation (NTPC)
National Hydro Power Corporation (NHPC)
 States generate their own power at varying degrees
o
Balance is received from Central Generating Stations.
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
3
Total Installed Capacity, India (as on 29 Feb. 2012)
Sector
MW
Percent Share
State Sector
84,101.27
44.12
Central Sector
58,082.63
30.47
Private Sector
48,408.65
25.39
1,90,592.55
100.00
MW
%age
124730.98
65.44
Coal
105,437.38
55.32
Gas
18,093.85
9.49
Oil
1,199.75
0.62
Hydro (Renewable)
38,848.40
20.38
Nuclear
4,780.00
2.50
Other Renewables (SHP,
Biomass, Solar, Wind, WTE)
22,233.17
11.66
1,90,592.55
100.00
Total
Fuel
Total Thermal
Total
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
4
Electricity Act (EA), 2003
 Consolidates laws related to generation, transmission,
distribution, trading and use of electricity.
 Aims to
o
o
o
o
o
Promote competition, protect the interests of consumers
Ensure supply of electricity to all areas
Rationalize electricity tariffs
Ensure transparent policies regarding subsidies
Promote environmentally friendly policies.
 The Act established the Central Electricity Authority and
Appellate Tribunal.
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
5
Electricity Act (EA), 2003 (Contd.)
 The Act recognizes the role of renewable energy
technologies for supplying power to the utility grid as
well as in stand-alone systems and provides for
Independent Power Producers (IPP) to set up renewable
power plants for captive use, third party sale, power
trading and distribution.
 The Act empowers the State Electricity Regulatory
Commissions (SERCs) to promote renewable energy and
specify, for purchase of electricity from renewable energy
sources, a percentage of the total consumption of
electricity in the area of a distribution licensee, i.e.
Renewable Purchase Obligation (RPO).
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
6
Key Features of Electricity Act, 2003
 Central Government to prepare a National Electricity Policy in
consultation with State Governments.
 Thrust to complete rural electrification and provide for
management of rural distribution by panchayats, cooperative
societies, non-government organizations, franchisees, etc.
 Provision for licence-free generation and distribution in rural areas.
 Generation being de-licenced and captive generation being freely
permitted. Hydro projects would, however, need clearance from
CEA.
 Transmission Utility at the Central, as well as State level, to be a
company responsible for planned and coordinated development of
transmission network.
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Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
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Key Features of Electricity Act, 2003 (2)
 Provision for private licensees in transmission and entry in
distribution through an independent network.
 Open access in transmission from the outset.
 Open access in distribution to be introduced in phases with
surcharge for current level of cross subsidy to be gradually phased
out along with cross subsidies and obligation to supply.
 Distribution licensees would be free to undertake generation, and
generating companies, would be free to take up distribution
business.
 Redefinition of the roles of CERC, SERC and CEA. Establishment of
SERC mandatory.
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
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Key Features of Electricity Act, 2003 (3)
 Provisions for payment of subsidy through budget.
 Trading recognized as a distinct activity with the regulatory
commissions authorized to fix ceilings of trading margins, if
necessary.
 Provisions for reorganization of State Electricity Boards.
 An appellate tribunal to hear appeals against the decision of the
CERC and SERCs.
 Provisions relating to theft of electricity made more stringent.
 Provisions for establishing an Ombudsman for addressing the
consumers’ grievances.
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
9
Segment-wise Impact of Electricity Act 2003
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
10
National Electricity Policy, 2005
 Objectives:
o
o
o
o
o
o
o
Access to electricity – Available to all households within the next 5
years.
Availability of power – Demand to be fully met by 2012. Energy and
peaking shortages to be overcome and adequate spinning reserve to
be available.
Supply of reliable and quality power of specified standards in an
efficient manner and at reasonable rates.
Per capita availability of electricity to be increased to over 1000 units
by 2012
Minimum lifetime consumption of 1 unit/ household/ day as a merit
good by year 2012.
Financial turnaround and commercial viability of electricity sector.
Protection of consumers’ interests.
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
11
National Tariff Policy, 2006
 The National Tariff Policy lays guidelines for attracting
adequate investments to the electricity sector and ensuring
reasonable charges for the consumers.
 Stresses on competitive procurement of power.
 Objectives:
o
o
o
o
Provide electricity to consumer at reasonable and competitive rates.
Ensure financial viability of the sector and attract investments
Promote competition, efficiency in operation and improvement in the
quality of supply
Promote transparency, consistency and predictability in regulatory
approaches across jurisdiction and minimise perceptions of regulatory
risks.
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Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
12
Integrated Energy Policy (IEP), 2006
 Focuses on Energy Security
 Covers
o
o
o
Access and availability,
Affordability and pricing,
Efficiency and environment,
 Also covers specific measures to support renewable energy,
including:
o
o
o
o
Power regulators must seek alternative incentive structures that
encourage utilities to integrate wind, small hydro, cogeneration etc, into
their systems.
Power regulators should mandate feed-in laws for renewable energy
where appropriate, as provided under the Electricity Act.
Generation based incentives for megawatt scale grid connected solar PV
and thermal power plants.
An additional tariff for new wind power plants which do not claim
accelerated depreciation benefit.
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
13
Involvement of Government Institutions
 Ministry of Power:
o
Planning, policy formulation and processing, monitoring and
implementation of thermal and hydropower generation,
transmission and distribution.
 Ministry of Coal:
o
Responsibility of determining the policies and strategies for
exploring and developing coal reserves, sanctioning important
projects and deciding related issues.
 Ministry of Oil and Gas:
o
o
Exploration and production, refining, distribution and
marketing, import, export and conservation of oil and gas.
Determination of policies and strategies in this oil and gas
sector.
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
14
Involvement of Government Institutions (Contd.)
 Ministry of New and Renewable Energy (MNRE):
o
o
Nodal Ministry for all matters relating to new and renewable energy.
Responsible for planning and policy formulation, implementing
programmes, developing and commercialising technology, providing
fiscal incentives etc.
 Planning Commission:
o
o
Power and Energy, Energy Policy and Rural Energy division of the
Planning Commission guides the energy policies of the country.
It has set up a steering committee on energy sector and working group
each on petroleum and natural gas, coal and lignite and power.
 Central Electricity Authority (CEA):
o
o
Assistance to the Ministry of Power in all the technical and technoeconomic matters.
Preparation of National Electricity Plan in accordance with the
National Electricity Policy once every five years.
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
15
Involvement of Other Organizations
 Energy Coordination Committee (Constituted on 13th July 2005):
o
o
Promote coordination in inter department action and functions in energy
planning and security.
The Prime Minister Chairs the Committee and the members include:
Minister of Finance, Minister of Petroleum and Natural Gas, Minister of
Power, Minister of Coal, MOS for Non-conventional energy sources,
Deputy Chairman, Planning Commission, Chairman National
Manufacturing Competitiveness Council, National Security Advisor.
 Indian Renewable Energy Development Agency (IREDA):
o
o
o
Established by MNRE to provide loans for renewable energy projects at
low interest rates.
Power being a concurrent subject between the Central and the State
Governments in India, the states have adopted the MNRE guidelines to
varying degree.
Some states give additional benefits to renewables while others have
diluted those proposed in the MNRE guidelines.
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
16
Involvement of Other Organizations (Contd.)
 State Nodal Agencies (State-REDA):
o
o
The MNRE has issued a Directive requiring each State to establish an
autonomous Nodal Agency for effective implementation of all the
renewable energy and co-generation schemes.
The Central Government of India provides a grant to these Agencies
for recurring and non-recurring expenditure.
 Bureau of Energy Efficiency (BEE) (Established in 2002):
o
o
o
o
Statutory national body set up under the Energy Conservation Act,
2001 by the Government of India
Promote energy efficiency.
So far 30 states and union territories in India have notified designated
agencies to coordinate, regulate and enforce the provisions of the
Energy Conservation Act.
Most states have entrusted the task of initiating energy conservation
programmes to the renewable energy development agencies.
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
17
Electricity Sector Overview
 Electricity sector is administered by both Central and State Governments.
POLICY
State
Government
REGULATION
AND OVERALL
PLANNING
State
Electricity
Regulatory
Commission
Government
of India
Central
Electricity
Regulatory
Commission
SLDC
State Sector
Generator/
Independent
Power
Producer
omkar.j@germi.res.in
State
Transmission
Utility
Distribution
Company
Trader
OPERATION
Central
Electricity
Authority
RLDC
State Sector
Generator/
Independent
Power
Producer
State
Transmission
Utility
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
Trader
18
Central Electricity Regulatory Commission
 Constituted under the 1998 Act to
o
o
o
Promote competition, efficiency and economy in bulk power markets,
Promote investments and
Advise the Government on removal of barriers to bridge the gap between
demand and supply.
 Main functions of CERC:
o
o
o
o
o
o
Regulate the tariff of generating companies owned or controlled by the
Central Government
Adjudicate upon disputes involving generating companies or transmission
licensee
Specify Grid Code having regard to Grid Standards
Specify and enforce the standards with respect to quality, continuity and
reliability of service by licensees
Fix the trading margin in the inter-State trading of electricity, if considered
necessary
Promote efficiency, competition and economy in the electricity industry.
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
19
State Electricity Regulatory Commission
 Introduction:
o
o
As of 2009, all states of India except Sikkim, Arunachal Pradesh and
Nagaland have an SERC.
A Joint Electricity Regulatory Commission (JERC) was constituted in
2005 and caters to Goa and Union Territories.
 Constitution of SERC
o
o
Autonomous, statutory Commission
Quasi-judicial bodies with powers of a Civil Court.
 Objectives of SERC:
o
o
o
o
Balance the interest of all stakeholders in the electricity industry
Promote healthy growth of Power Sector in the State.
Strive on cost optimization and improvement in consumer service by
promoting competition
Implement the provisions of the Electricity Act, NEP, and NTP .
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
20
Functions of SERC
 Determine the tariffs for generation, supply, transmission and
wheeling of electricity, wholesale, bulk or retail, as the case
may be, within the State
 Issue licenses to persons seeking to act as transmission
licensees, distribution licensees and electricity traders with
respect to their operations within the State
 Specify State Grid code
 Specify or enforce standards with respect to quality,
continuity and reliability of service by licensees
 Fix the trading margin in the intra-state trading of electricity.
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
21
Regulatory Commissions and Renewable Energy
 Electricity Act, 2003 gives responsibility for development of renewable
energy to SERCs.
o
o
o
Section 61(h) prescribes promotion of cogeneration and and generation of
electricity from renewable sources of energy’ as one of the criteria for tariff
determination.
Section 86 (1) (e) requires the SERC to prescribe the percentage of purchase
from renewable sources of energy by distribution licensees and others.
This Section also mandates the SERC to provide suitable measures for
connectivity to the grid.
 Under these provisions, a number of SERCs have:
o
o
o
Set specific tariffs for certain renewable energy sources (hydro, wind, solar,
biomass) to encourage their development.
Conferred must run status on non-conventional energy projects
Allowed consumers taking power from non-conventional energy projects to
have open access from day one
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
22
Renewable Energy Support Mechanism
 Renewable Purchase Obligations/Quotas
o
General and Solar
 Feed-in tariffs
 Fiscal Incentives such as accelerated depreciation and tax
holiday
 Generation Based Incentive (GBI)
 Renewable Energy Certificates
o
Non-solar and Solar
 Capital Subsidies
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
23
Fiscal Incentives
 80% accelerated depreciation for tax calculation
 Tax holiday for power generation through renewable sources
 Excise duty/Import tariff concessions
 Provision of banking, wheeling, and third party sale of renewable energy based
power. Wheeling refers to the movement of electricity that is supplied by a
generator to the consumer, over transmission and distribution lines that are
owned neither by the generator nor the consumer. The fee charged by the owners
of the (distribution and transmission) lines for letting others use them is known as
the wheeling charge. The rates are determined by the regulator.
 Other financial incentives/subsidies for devices with high initial cost
 Automatic approval for foreign investors (100% equity participation) to enter into
joint ventures (JV) with an Indian partner for financial and/or technical
collaboration / setting up of renewable energy based power projects; or 100%
foreign investment with approval of Foreign Investment Promotion Board. In
addition, the government also encourages renewable energy technology transfer.
omkar.j@germi.res.in
Overview of Regulatory Structure and Role of Consumer in Regulatory Process, "Workshop on DSM & RE,"
VIKSAT, Ahmedabad, 6 Apr. 2012.
24
PROGRAMME OVERVIEW
5 MW GANDHINAGAR PHOTOVOLTAIC ROOFTOP PROGRAMME
omkar.j@germi.res.in
Outline
 Introduction to Programme
 Technical Design
 Programme Structure
o
o
o
Govt. Roles
Transaction Structure
Financial Structure
 Status
o
o
o
o
Activities Undertaken
Activities Remaining
Government Rooftops
Social Initiative
omkar.j@germi.res.in
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
26
Gandhinagar Photovoltaic Rooftop Programme
 The Gandhinagar Photovoltaic Rooftop Programme
(the “Programme”) marks the first distributed power
generation programme in India in its true sense.

 True Public Private Partnership, brings together…
o
Government
o
Developers
o
Regulators
o
Home owners
o
Utility
o
R&D
omkar.j@germi.res.in
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
27
Aim of Programme
 Gandhinagar Photovoltaic Rooftop Programme aims for…
o
o
o
o
o
net 5 megawatt of photovoltaic installations…
in distributed kilowatt-sized photovoltaic systems…
through a PPP mode…
to promote clean energy and energy security...
as a part of the Gandhinagar Solar City Initiative.
 Greater outcome of this pilot Programme:
o
o
o
Establish a practice/ philosophy of distributed solar and other
energy generation.
Bring a level of comfort to all stakeholders for further scale-up.
Encourage public participation.
omkar.j@germi.res.in
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
28
Typical PV System Architecture
Photovoltaic Modules
(Approx. 1 – 100 kWP)
Grid-tied
inverter
Meter 2: Solar Electricity
Generation
Meter 1: Conventional
Electricity Consumption
omkar.j@germi.res.in
Transformer
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
Grid
29
Advantages of PV System Architecture
 Relatively simple to install, operate and maintain.
 Most popular and globally accepted configuration.
 Disadvantage: No availability when grid is down.
Photovoltaic Panel
(Approx. 1 - 5kWP)
Grid-tied
inverter
Meter 2: Solar Electricity
Generation
Meter 1: Conventional
Electricity Consumption
omkar.j@germi.res.in
Transformer
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
Grid
30
Govt. Department Involvement
 Energy & Petrochemicals Dept., GoG: Project Proponent
 GEDA: Advisory and Nodal Agency
 GERMI: Structuring of Project
o
IFC: Transaction Structure Advisors
• Deloitte: Commercial and Technical Consultants
• CMS Cameron McKenna & Hemant Sahay Associates: Legal Consultants
 GPCL: Project Implementing Agency
 Participating GoG Departments:
o
R&B
o
Education
o
Forest & Environment
o
Legal
o
Industries & Mines
o
Health & Family Welfare
o
Revenue
o
Agriculture
o
Vigilance Commissioner
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5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
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Transaction Structure among Stakeholders
GoG/ EPD
GEDA
IFC & Consultants
(Project Proponent)
(Nodal Agency)
(Transaction Str. Advisor)
G.R.
Funding
GERMI
GoG
(Implementing Agency)
(Project Str., Bid Process)
(For Govt. Approval)
Selection
through
RFP
GERC
(For Regulatory Approval)
2 MW Govt. Rooftops
0.5 MW Private Rooftops
2 MW Govt. Rooftops
0.5 MW Private Rooftops
omkar.j@germi.res.in
Green
Incentive
2.5 MW
2.5 MW
Screening &
Selection
Approvals
GPCL
Project Developer 1
(Capacity: 2.5 MW)
PPA, based on GERC
solar tariff
Project Developer 2
Torrent Power Ltd.
(Capacity: 2.5 MW)
(Off-taker)
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
32
Transaction Structure Features
 Project:
o
o
2MW
0.5MW
2.5MW Quota x 2 Developers
(x 2)
(x 2)
on Government/ Commercial rooftops
on Private Residences
 (Qualified) Bidder Selection Criteria: QUOTED TARIFF
o
o
Torrent will buy as per GERC tariff order.
GoG (through GPCL) will fund the viability gap.
• For example,
L1 Party
L2 Party
Quoted Tariff
Rs. 11.21 /kWh
Rs. 11.793 /kWh
GERC Tariff Order
Rs. 11.14 /kWh
Rs. 12.44 /kWh
Torrent pays:
Rs. 11.21 /kWh
Rs. 11.793 /kWh
GoG-PIA (GPCL) Pays:
Rs. 0.07 /kWh
---
 Green Incentive (instead of Lease Rent): min. Rs. 3 / kWh
omkar.j@germi.res.in
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
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Financial Transaction Model
Torrent Power Ltd.
PPA
(Off-taker)
Power Purchase Agreement
based on GERC solar tariff
Rs. 15 (& 5) for 12 (& next 13) years
2x
Project Developer
PIA
(Capacity: 2.5 MW ea.)
‘Green Incentive’ Agreement
Generation-based, minimum
Rs. 3 per kWh
Project Implementation Agreement
for ‘Viability’ tariff funding
Private Rooftops: 1 MW
Govt. Rooftops: 4 MW
-
R&B
Education
Legal
Forest & Environment
Industries & Mines
Agriculture
Health & Family Welfare
Vigilance
Collectorate
Revenue
(Can be replaced by
Commercial Rooftops/
Terraces)
GPCL
(Implementing Agency)
omkar.j@germi.res.in
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
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Viability Funding: Sensitivity Analysis
 The amount of Feed-In Tariff quoted by the Bidder beyond the
GERC tariff shall be borne by GoG.
 The minimum specified Green Incentive will have a direct
impact on the required Govt. funds.
Amount Quoted
beyond GERC Tariff
Re. 1/
kWh
Rs. 2/
kWh
Rs. 3/
kWh
Rs. 4/
kWh
Rs. 5/
kWh
NPV of Govt. Assistance
for 25 Years required
(in Rs. Cr.)
6.14
12.2
18.4
24.6
30.7
omkar.j@germi.res.in
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
35
Green Incentive: Aid to Roof-owners
 ‘Green Incentive’ is the minimum generation-based incentive for
participating Roof-owners specified by GoG.
 Advantages:
o
o
o
Encourage awareness and participation among roof-owners.
Will be correlated to home-owner’s electricity bill.
Should not be compared to ‘constant’ (or ‘dead’) lease rental.
Plot Size
(Sq. m.)
Built-up
Area
(60%)
Typical
Solar Area
(30%)
Typical PV
Capacity
(kW)
Monthly
Generation
(kWh)
50
30
9
1
135
70
81
90
135
200
250
330
42
48.6
54
81
120
150
198
12.6
14.58
16.2
24.3
36
45
59.4
1.5
2
3
4
6
7
8
202.5
270
405
540
810
945
1080
omkar.j@germi.res.in
Green Incentive (Rs.)
@ Rs. 2/
kWh
@ Rs. 3/
kWh
@ Rs. 4/
kWh
270
405
540
810
1080
1620
1890
2160
405
607.5
810
1215
1620
2430
2835
3240
540
810
1080
1620
2160
3240
3780
4320
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
36
Activities & Milestones Achieved (1)
Date
Activity
Aug 2010
In-principle approval of Gandhinagar Photovoltaic Rooftop
Programme.
Sep 2010
Bringing on-board IFC and its Consultants:
Commercial & Technical: Deloitte, Nexus Energy
Legal: Hemant Sahai, CMS Cameron McKenna
Nov 2010
Kick-off meeting under chairmanship of Chief Secretary
Participation from various Government Stakeholders
Jan 2011
Invitation of EoI from potential Developers/ Investors
Feb 2011
First Investors’ conference with participation from 38
companies
Feb 2011
Communication initiated with Torrent to finalize PPA
Feb 2011
Transaction Structure Report submitted by IFC
Rooftop Survey Complete
Drafts of RFP, PPA, PIA, Lease Agreement Prepared
omkar.j@germi.res.in
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
37
Activities & Milestones Achieved (2)
Date
Activity
Apr 2011
Invitation for participation sent to Government Departments
May 2011
In-principle agreement with Torrent for off-taking solar power
May 2011
Induction of GPCL as Project Implementation Agency
Jun-Jul 2011 In-principle approval from Government Departments for
leasing of rooftop/ terrace
Jul 2011
Website for Stakeholders Gandhinagar Photovoltaic Rooftop
Programme Ready
Aug 2011
Floating of draft bid documents including:
- Request for Proposal
- Power Purchase Agreement
- Project Implementation Agreement
- ‘Green Incentive’ Lease Agreement
Aug 2011
Establishment of Local Office for processing applications from
homeowners for participation in the Programme
omkar.j@germi.res.in
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
38
Activities & Milestones Achieved (3)
Date
Activity
Aug 2011
Investors’ Pre-Bid Conference
Nov 2011
Final convergence with Torrent Power Ltd. on issues of PPA except
for clause on RPO compensation. (It was mutually decided by
GERMI/ GPCL and Torrent Power Ltd. to seek inputs from GERC to
resolve this RPO compensation issue.)
Nov 2011
Submission of petition to GERC for approval of Programme
Transaction Structure including PPA.
Dec 2011
Approval by GERC on Transaction Structure including PPA and to
invite bids from Developers via two hearings. Unresolved issues
with Torrent Power Ltd. resolved by GERC.
Jan 2011
Bids received from 4 Parties: (i) Azure, (ii) SunEdison, (iii) Mahindra,
and (iv) Lanco.
Feb 2011
Financial bids were opened, where (i) Azure (Rs. 11.21 /kWh) and
(ii) SunEdison (Rs. 11.793) were found to be L1 and L2.
omkar.j@germi.res.in
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
39
Activities & Milestones Achieved (4)
Date
Activity
Mar 2012
LoA issued to Azure and SunEdison
Further Activities
Date
Activity
Apr 2012
Signing of PPA between Azure/ SunEdison and Torrent Power.
Signing of PIA between Azure/ SunEdison and GPCL.
Apr 2012
Signing of ‘Green Incentive’ lease agreement between Azure/
SunEdison and Govt. Building Owners (i.e. Departments).
May 2012
Commencement of installation of photovoltaic rooftop
systems.
31 Dec 2012
Expected date for completion of 5 MW installations.
omkar.j@germi.res.in
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
40
Status with Government Departments
Sr.
Department
Capacity
(kW)
Remarks
1.
Raj Bhavan
10
‘In-principle’ approval received
2.
R&B Dept.
1,228.8
‘In-principle’ approval received
3.
Education Dept.
1,825.9
‘In-principle’ approval received
4.
Vigilance Department (R & B Dept)
6.3
‘In-principle’ approval received
5.
Department of Agriculture & Cooperation
158.15
‘In-principle’ approval received
6.
Forest Dept.
66.7
‘In-principle’ approval received
7.
Health & Family Welfare Dept.
179.4
‘In-principle’ approval received
8.
Gujarat Maritime Board
15
‘In-principle’ approval received
9.
Court Building
49.3
Under process
10.
New Collector Office
45.4
Under process
11
Nirman Bhavan
66.7
Under process
12.
Udyog Bhavan
77.4
Under process
13.
DET - ITI College blocks
311.4
Under process
4,040.45kW
(3,490.25 kW Approved)
TOTAL:
omkar.j@germi.res.in
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
41
Status of Social Initiative
 Draft EOI content is prepared for inviting general public
to offer their property’s roof top for this program.
 Draft Application Form has been prepared.
 Draft General Terms and Conditions for participation by
general public for Programme has been prepared.
 Web-based interactive Application program has been
prepared.
 Help desk space (Programme Office) in Gandhinagar is
finalized.
omkar.j@germi.res.in
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
42
Future Outlook
 New Cities:
o
o
o
o
Mehsana
Rajkot
Surat
Vadodara
:
:
:
:
5 MW
5 MW
5 MW
5 MW
 Incorporation of Rooftop Photovoltaics at Policy and
Regulatory Level.
 Explore different implementation models:
o
o
Feed-in or net metering?
Third party/ Developer driven or private ownership?
omkar.j@germi.res.in
5 MW Gandhinagar Photovoltaic Rooftop Programme - Update; 26 Mar. 2012.
43
Training Workshop on DSM & RE
Organized by VIKSAT
6th April, 2012, Ahmedabad, INDIA
Overview of Regulatory Structure and
Role of Consumer in Regulatory Process
Dr. Omkar Jani
Principal Research Scientist (Solar)
Gujarat Energy Research and Management Institute (GERMI)
omkar.j@germi.res.in
omkar.j@germi.res.in