RENEWABLE ENERGY INITIATIVES
By
M P Sharma
Varroc Group
Index:
ABOUT VARROC GROUP
ENERGY SCENARIO – INDIA
ENERGY SCENARIO – MAHARASHTRA
WHY RENEWABLE ENERGY
SOLAR PROJECT – A B C
QUESTION & ANSWER‘S- SESSION
2
Company Profile – Varroc Group
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•
Headquartered in Aurangabad, India
•
USD 1.2 Billion annual sales; growing at over
20% annually for the past decade
•
10,000+ direct employees, including 400+
engineers globally
•
31 manufacturing facilities and 6 engineering
centers globally
•
Serves all major OE vehicle manufacturers in
India and abroad.
•
Among top 3 automotive suppliers in India
Leading Indian supplier of Electrical, Metallic
and Polymer components and sub assemblies
for 2 wheeler and 4 wheeler industry
4
Varroc Group – Global Footprint and Support
•
Varroc is well positioned to support Customer growth in all markets.
Germany
Slovakia
Unites States of America
Czech
Italy
Mexico
Guatemala
China
France
India
Nigeria
Angola
R&D
Location Plant
Center
India
21
3
Europe
8
3
South
1
East Asia
US
1
-
United Kingdom
Egypt
Globally
Vietnam
Number of
Plants
Polymer
9
Electrical
12
Metallic
9
Integrated Plant
1
Engineering
6
Centers
Divisions
Varroc Group- India Foot Print
Customer Base – Varroc Group
2 WHEELERS
PASSENGER
CARS
COMMERCIAL
VEHICLES
SYSTEM
SUPPLIERS
Trademark Shown are exclusive property of respective Companies
Varroc Core Values
S
H
I
P
S
Varroc Renewable Energy Mission
 Varroc Renewable Energy Mission targets to achieve
20% of its power requirement through Renewable
Energy by 2016
 Estimated Power requirement of Varroc Group by 2016 will be 100 MW
 20 MW of this power shall be through renewable energy
Achievements of Mission till 2013
 8 MW of power from Wind energy
 5 MW of power from Solar energy (operational Dec 2013)
Other activities under green mission
 Planting & distributing Sapling
 Distribution of Seeds
India’s Energy Challenge
In next 12 years India’s
electricity requirement
to grow 2.5 times
Electricity shortage
estimated at 25-35
GW
Demand
Climate Change is
also an important
issue
Shortage
Climate
Change
Access
Security
India is dependent on oil
imports for 80% of its
demand
400 Million people
still without access
to electricity
Indian Power Sector (30 June 2013)
Thermal
1,53,848, MW
Hydro
39,623 MW
Nuclear
4,780 MW
Renewable
27,541 MW
(Source: CEA Annual Report)
Renewable Power Capacity
(30 June 2013)
Total Installed RE Capacity = 27,541 MW
4.1%
13.1%
Wind
SHP
Bio
Solar
13.4%
Past
Focus
Area
Current
Focus
Area
69.4%
Wind
19,228 MW
Small Hydro
3,630 MW
Bio
3,000MW
Solar
1,686 MW
(Source: MNRE)
Energy Scenario-Maharashtra
Demand – Supply Scenario in MW at the Time of Peak Demand
Particular
2007-08
2008-09
2009-10
2010-11
2011-12
Demand
[MW]
16,792
17,266
17,879
18,168
19,105
Availability
[MW]
12,460
12,578
13,504
14,353
15,634
Shortfall
[MW]
4,332
4,688
4,375
3,815
3471
(Source: CEA Monthly Report)
Why Choose Renewable Energy
 Corporate Social Responsibility (CSR) Initiative
 Sustainable business model- Eliminate long term impact of energy
cost on current business
 Excellent Investment opportunity considering government Incentives
(Project IRR 20-25%)
 Improves Infrastructure & Groups visibility in rural areas & helps
evaluating new locations to spread business
Wind Energy Vs Solar Energy
Parameter
Wind
Solar PV
Basic
Dependent on Wind
(Resource: 1,700 TW)
The Ultimate Energy Source
(Resource 6,500 TW)
Site
Sea shores or Land
On Land or Rooftop
Technology
Wind Turbines
Solar PV
Forecast
No Forecast on availability
Predictable & Reliable Output
Use
Considered as Intermittent Power
Optimized use possible
Operation and
Maintenance
High
Almost Negligible
Set-up time
8-10 months
3-5 months
Warranty
5 Years Warranty
25 years warranty
Required Area (Acre /
30-40
4 to 5
Generation cost over
life of plant
INR 4-5 / unit
INR 5-6 / unit
Selling Price of
Generated Power
INR 4.5 to 6.3 / unit
INR 12.3 to 16.4 / unit
MW)
Steps for entering into Solar power
• Understanding the Scheme / policy under which plant will be set-up
• Feasibility Study & Risk Management
• Identification of site
• Identification of Technology & EPC partner
• Project Financing & Execution
Policies in India for Large Scale Solar Project
There are 3 Schemes available.
1. Under JNNSM by Signing Preferential Tariff PPA with NVVN
2. Under Preferential Tariff PPA with State Government
3. As Independent Power Producer (IPP) in REC Mechanism
Solar Feasibility in India
• > 300 Sunny Days in India
•> 5-6 KWH/ Sq Meter / Day Irradiation
• Govt Initiatives & Incentives
Risk Management & SWOT Analysis
Strength
•Plenty of Sun Shine in Maharashtra
• REC Benefits
• No raw Material Cost
• India’s solar potential among highest in
the World and barely a fraction
of it has been exploited
• There is no pollution or wastage resulting
from its use
• Very low Operating and Maintenance
costs
• There is no pollution or wastage resulting
from its use.
Opportunity
• Increasing energy requirement of the
country
• Reduction of cost expected in future
Weakness
• Needs Greater support from Govt.
• Lack of technical supports for
remote locations
Threat
• Technological Challenges (Storage
facility)
• Lack of cooperation from local
DISCOM
Identification of Site
Key Parameters of a good site:
• Good Solar Irradiance throughout the year (Data from NASA, Meteonorm,
MNRE)
• Average temperatures throughout the year
• First year generation expectations
• Proximity to grid
• Water availability
• Road Connectivity
• Load bearing capacity of land
• STFI Hazards (Storms, Tempests, Floods, Inundation)
Site Evaluation Results of Sakri
S No.
Description
Sakri
1
Solar Irradiation
5.49 KW/ m2
2
Average Daily
temperatures
25-40 deg C
Grid Availability
66 KV or above
Water Availability
Good
Road Connectivity
Excellent
1st Year Generation (units)
8,000,000
3
4
5
6
Technology Evaluation
S No.
Evaluation Criterion
1
Crystalline
Thin Film
Mono
Poly
A-si
CdTe
CIGS/CIS
Efficiency (%)
16-18%
14-16%
7-9%
8-10%
10-12%
2
Performance Under Heat
(degradation)
5-6%
4-5%
9-10%
8-10%
8-10%
3
Required Area (m2 / KWp)
4-5
5-6
8-9
7-8
6-7
4
Output per Year per MW
(Indian Climatic Conditions)
1.55
1.65
1.4
1.8
1.5
5
Cost (USD/Watt)
0.85
0.75
0.7
0.7
0.8
6
Technology Maturity (Years)
>40
>40
~10-20
~8-10
~8-10
High
High
High
0.16
0.16
0.16
O&M
Moderate Moderate
7
Weight(Kg/watt)
0.094
0.094
8
Market Share(%)
30%
60%
9
Payback Period
6-7
5-6
10
Life
>25
>25 years
7%
5-6
4-5
Under
Under
Evaluation Evaluation
5-6
Under
Evaluation
Identification of EPC Partner
- Functions throughout technology value chain
- Diversified business for 25 year Warranty fulfilments
- Has own Solar power plant
- Experience & track record
- Access to local execution team
Varroc EPC partner
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Inetest Technologies India from Chennai along with Anukul Power Engineers from
Aurangabad
Inetest has technology from AUO, a listed company in NYSE, with business in Flat
panel displays & Solar.
AUO has Polysilicon & WaferTechnology from Japan while Cell & Modules made in
Taiwan & Malaysia.
AUO has own 10 MW roof top project in Taiwan
Anukul Power Engineers has vast experience in Electrical Power Transmission &
distribution Erectioning, commissioning in Maharashtra
Anukul has Installed many sub-stations, many
Kms of Transmission line in Maharashtra
Pic from AUO Japan plant during Vendor Evaluation
Project Financing & Execution
• Project Financing to be considered due to unstable INR
• ROI & cashflow preparation
• Finance available at low interest cost from government &
international bodies, but not easy
• Identification of Project team
• Government Approvals
– Approval for Project from concerned body (MEDA for Maharashtra)
– Signing of Power Purchase Agreement with Discom (Mahagenco or
MSEGCL)
– Approval from substation for erection of Transmission line & grid
connection
– Approval from MNRE for concessional duties
• Prepare project execution roadmap & progress monitoring
Solar System Schematic
Other Green Initiatives
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Audit for Energy optimization by third parties
Audit for Power Quality improvement by third parties
Installation of Solar Street lights in existing plants
Installation of ABT Meters with 0.2S Accuracy
Use of transparent sheds for day light utilization
30
Way Forward….
Solar parks
Solar pumps
Solar Car parking
Solar Roof Top Systems
Solar Street light
Thank You!
M P Sharma
sharma.madhusudan@varrocgroup.com
Q&A