ICORE 2013 DISTRIBUTED GENERATION SUCCESSFUL IMPLEMENTATION OF GRID-CONNECTED ROOFTOP PV PROGRAMMES 27 November 2013 Outline Introduction Critical Aspects for Successful Implementation Programme Structure for G’nagar rooftop o o o Govt. Roles Transaction Structure Financial Structure Outlook of Rooftop Policy of Gujarat Key Learning of 5 MW Gandhinagar PV Rooftop Omkar.J@germi.res.in Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 2 Success of Grid Connected Rooftop PV Programme Technical Configuration Implementation Long-Term Operation Commercial Viability Eventual Scalability Omkar.J@germi.res.in Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 3 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 Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 Transformer Grid 4 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 Modules (Approx. 1 – 100 kWP) Grid-tied inverter Meter 2: Solar Electricity Generation Meter 1: Conventional Electricity Consumption Omkar.J@germi.res.in Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 Transformer Grid 5 Model II Net Metering Relatively simple to install, operate and maintain. Net Electricity consumed will be charged. Issue of Non availability of grid is addressed Photovoltaic Modules (Approx. 1 – 100 kWP) Grid-tied inverter Meter 1: Bi-directional Meter Omkar.J@germi.res.in Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 Transformer Grid 6 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 o Government Home owners Omkar.J@germi.res.in Pulkit.d@germi.res.in o o Developers Utility o o Regulators R&D Distributed Generation- ICORE 2013; 27 Nov. 2013 7 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 Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 8 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 Pulkit.d@germi.res.in Green Incentive 2.5 MW 2.5 MW Screening & Selection Approvals GPCL Azure Sun Energy (Capacity: 2.5 MW) PPA, based on GERC solar tariff SPV by SunEdison Torrent Power Ltd. (Capacity: 2.5 MW) (Off-taker) Distributed Generation- ICORE 2013; 27 Nov. 2013 9 Financial Transaction Model Torrent Power Ltd. PPA (Off-taker) Power Purchase Agreement based on GERC solar tariff of Rs. 12.44 /kWh (w/o AD: Rs. 11.14 /kWh) 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 Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 10 Implementation Process at G’nagar PV Capacity allotted to the Developers Developer Submits the Plant Drawing A= Day 0 1.GERMI approves Drawing 2. Once approved by GERMI CEI also approves it Developer Starts Installation Completes PV DC Installation Omkar.J@germi.res.in Pulkit.d@germi.res.in Regular Inspections are done at the site B=A+3 days C= B + 20 days( for 70 kw PV system) 1.GERMI Inspects and give Installation Certificate 2. CEI simultaneously inspects and give Certificate Distributed Generation- ICORE 2013; 27 Nov. 2013 D= C + Within 2 Days 11 Implementation Process at G’nagar Submits Certificates to DisCom DisCom installs meter and connects the Plant to the Grid. Ask GERMI/CEI for Commissioning Test GERMI & CEI Performs Commissioning Test GERMI & CEI Provides Commissioning Certificate Submits it to DisCom and PV Plant becomes Live Omkar.J@germi.res.in Pulkit.d@germi.res.in Within 2 Days Within 2 Days Start Paying Tariff to Developer Distributed Generation- ICORE 2013; 27 Nov. 2013 12 Consolidated Status as on 07 Nov, 2013 Sr. Status 1 Commissioned 2 Installed TOTAL Azure SunEdison TOTAL 2,200.00 kW 1599.77 kW 3,799.77 kW 000.00 kW 237.00 kW 237.87 kW 2,200.00 kW 1,830.77 kW 4,030 kW Total Energy Generated Till 23 July 2013 : 4,37,000 Green Units Installations on Private Residential Premises Omkar.J@germi.res.in Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 13 Installations under 5 MW Gandhinagar Programme 264.04 kW @ Jivraj Mehta Bhavan Nos. 1, 2 and 4, Sector 10-b 60.48 kW @ Lokayukta, Sector 10 Omkar.J@germi.res.in Pulkit.d@germi.res.in 80.61 kW @ Govt. Arts College, Sector 15 80.61 kW @ Govt. Arts College, Sector 20 Distributed Generation- ICORE 2013; 27 Nov. 2013 14 PV Installation on J.M. Bhavan Omkar.J@germi.res.in Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 15 PV Installation on J.M. Bhavan (2) Omkar.J@germi.res.in Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 16 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 Distributed GenerationOmkar.J@germi.res.in ICORE 2013; 27 Nov. 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 Distributed Generation- ICORE 2013; 27 Nov. 2013 17 Future Outlook New Cities – 5-10 MW each: o o o o o Bhavnagar Mehsana Rajkot Surat Vadodara The Gandhinagar Solar Rooftop Programme is selected as on of the TOP 10 DEALS OF ASIA-PACIFIC by Infrastructure Journal. 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 Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 18 Learning of Critical Aspects How appealing is the Green Incentive? o What is the value of my roof? How appealing is the Third-Party Model? o o Am I willing to sign a 25-year lease agreement? Why can’t I get the full benefit of my PV system? Interdependency of Contracts and Financial Closure: o Lease Agreement PIA PPA. Implementation: o Coordination between Statutory Bodies, Regulator, Chief Electrical Inspector, DisCom, Building Owners/ Govt. Departments, Developer, Financer, Project Management, Social. Omkar.J@germi.res.in Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 19 Evolution & Implementation of Rooftop Solar PV Installations for Gujarat Model I: Capital cost borne by the Government o Advantage: • Ease of implementation, and widely implemented. o Disadvantage: • Ownership issues, and hence, maintenance suffers. o Example: Most rooftop solar installations by various governments throughout India (including GEDA). Model II: Public Private Partnership o o Example: 5 MW Gandhinagar Rooftop Solar Programme. Advantage: • • • • o Generation-based incentive ensures long-term utilization. Government interaction with limited number of credible Developers. Standard quality and optimization of PV installations. No upfront cost to Government/ Utility. Disadvantage: • Property owners unwilling to sign long-term lease agreements. • Incentives from solar generation not enough compared to real-estate lease. Omkar.J@germi.res.in Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 20 Model III: Individual Ownership (Proposed in Current Rooftop Solar Policy) Advantage: o o o o o o Equal opportunity to smaller rooftop owners. Ownership of individual is well-defined. Investors reap the direct benefit of electricity and also become energy aware/ efficient. Investment yields definite returns. Potential for widespread public deployment. Successful model globally. Challenge: o o o Investment expected from someone who does not understand technology. Capital subsidies required to incentivize participation (under net-metering scheme). Direct dealing of DisComs directly with Customers. Omkar.J@germi.res.in Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 21 Policy Implementation: Preparatory Phase DisComs: Obvious focal agency o o Specify standards of interconnection and Net-Meter. Set up internal process viz. accepting applications for interconnection, PV system commissioning, regulatory compliance, billing. State Nodal Agency: GEDA o o o o Empanelment of Channel Partners/ Installers. Avail necessary funds from State Dept., Central Ministries. Act as a single-window for disbursing subsidies. Publicize and monitor overall progress. Channel Partners/ Installers o o Link between System Owners and DisCom/ GEDA for administrative procedures. Comply with relevant guidelines of safety, standard, performance outlined by DisCom, GEDA, MNRE, GERC, CEA, etc. Eligible Entities/ System Owners o o o o o Only employ Channel Partners/ Installers empanelled by GEDA. Apply for interconnection of rooftop PV system. Comply with any other approvals/ clearances required from time to time. Shall be final beneficiaries of subsidies. Shall own and be responsible for operation of PV systems. Omkar.J@germi.res.in Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 22 Policy Implementation: Preparatory Phase Rooftop Solar Policy is Launched. GEDA Empanels Channel Partners/ Installers. DisComs set up standards for Net-Metering. GEDA Educates Channel Partners with compliance requirements. DisComs set up internal processes for: 1. Accepting and scrutinizing customer applications, and 2. Commissioning PV systems. GEDA publically promotes Rooftop Solar Policy/Programme Channel Partners commence their own marketing. Omkar.J@germi.res.in Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 23 Policy Implementation: Implementation Phase Eligible Entity contacts Channel Partner. Channel Partners undertakes feasibility of installation. GEDA approves: 1. Subsidy subject to fund availability, and 2. PV System capacity subject to DisCom’s and CEI’s clearance. Eligible Entity, via Channel Partner, applies to GEDA for subsidy. Channel Partner installs rooftop PV system. Eligible Entity, via Channel Partner, applies to DisCom for interconnection. System Owner owns and operates the PV system. Omkar.J@germi.res.in Pulkit.d@germi.res.in CEI’s Approves: 1. Capacity of installations DisCom: 1. Verifies installation, and 2. Installs Net-Meter to commission the system. DisCom bills System Owner based on net consumption. Distributed Generation- ICORE 2013; 27 Nov. 2013 24 A Unit of Energy SAVED= 2 Units of Energy GENERATED Omkar.J@germi.res.in ICORE 2013 DISTRIBUTED GENERATION SUCCESSFUL IMPLEMENTATION OF GRID-CONNECTED ROOFTOP PV PROGRAMMES 27 November 2013 Backup Slides… Distributed GenerationOmkar.J@germi.res.in ICORE 2013; 27 Nov. Distributed Generation- ICORE 2013; 27 Nov. 2013 27 Successful Developers L1: Azure Sun Energy Pvt. Ltd. (“Azure”) L2: Ananth Solar Power Maharashtra Pvt. Ltd. (“SunEdison”) o A subsidiary of SunEdison Energy India Pvt. Ltd. Azure SunEdison Quoted Tariff: Rs. 11.21 /kWh Rs. 11.793 /kWh GERC Relevant Tariff: 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 --- Omkar.J@germi.res.in Pulkit.d@germi.res.in Distributed Generation- ICORE 2013; 27 Nov. 2013 28 ICORE 2013 DISTRIBUTED GENERATION SUCCESSFUL IMPLEMENTATION OF GRID-CONNECTED ROOFTOP PV PROGRAMMES 27 November 2013