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DETAILED PROJECT REPORT


5.00 MW

Prepared for FED SOLAR PRIVATE LIMITED

Prepared by

CORPORATE KNOWLEDGE PARTNERS PVT.LTD.


209, Kirti Sikhar Building, Janak puri Dist. Centre New Delhi- 110058, INDIA

October 2010

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TABLE OF CONTENTS
Chapter No. 1 1.1 1.2 1.3 1.4 2 2.1 2.2 3 3.1 3.2 4 4.1 4.2 5 5.1 5.2 5.3 5.4 6 6.1 7 7.1 7.2 7.3 7.4 7.5 7.6 8 8.1 8.2 8.3 Particulars Salient Features Introduction Global Energy Scenario Indian Energy Scenario Renewable Energy in India Jawaharlal Nehru National Solar Mission Project Summary Project Information Solar Power Project Economic Scene of Project Location Growth and Construction About GURDASPUR Economy of PANJAB Power Scenario in PANJAB Installed Capacity in PANJAB Utilities in PANJAB Need of the Project Power Supply Arrangements Need of Solar Project Power Generation Scheme Typical System Components of Grid Connect SPV System Survey and Investigation Project Location Power Potential Studies Solar Radiation - India Solar PV Modules Types Comparison Between Crystalline & Thin Film Technology Technology Selected for Project Solar Radiation at Project Site Solar Power Generation Design of Power Plant Electrical & Mechanical Works Project Design Suitability of SPV Power plant unit to operate in parallel with grid Safety Regulations Page No. 6 9 10 13 14 16 18 19 19 21 22 22 24 25 26 28 29 29 30 31 36 37 38 39 40 44 45 45 46 48 49 50 51

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Chapter No. 9 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 10 10.1 10.2 10.3 10.4 11 11.1 11.2 11.3 11.4 11.5 12 12.1 12.2 12.3 13 13.1 13.2 14 14.1 14.2 14.3 15 15.1 16 16.1 16.2 16.3 17

Particulars Design Criteria Solar Photovoltaic (SPV) Module Module Mounting Structure Balance of Systems LT Power Interfacing Panel Computer aided Data Acquisition System Lightning & Over Voltage Protection Earthling system Energy Meter Protective Relays Power Evacuation Arrangement Construction Material Requirement, Availability and Suitability Materials Procurement Process Bills of Materials List of Spares Construction Methodology and Equipment Planning Overview System Design Philosophy Operation Requirements Maintenance Requirements Preventive Maintenance (Specific Guidelines) Construction Programme and Schedule Project Implementation Strategy Project Execution Progress Reporting Project Organization Staff Training Environmental and Ecological Aspects Environmental Impact Impact During Construction Impact During Operation Cost Estimates Project Costing Financial and Economic Evaluation Financial Analysis Assumptions Project Financials Sensitivity Analysis Recommendations

Page No. 52 53 53 53 55 55 56 56 57 57 57 58 59 59 59 60 61 62 62 63 64 65 67 68 68 68 69 70 70 71 72 72 73 74 75 76 77 78 79 80

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ANNEXURES
Annexure No. I II III IV V VI VII VIII IX X XI XII XIII XIV XV Particulars Jawaharlal Nehru National solar mission Mission Resolution by Ministry of New and Renewable Energy Single Line Diagram of Power Supply System Location map of GURDASPUR Seismic Zone Map of India Photographs of the project site RET Screen Simulation Model Array Layout Technical Specification of the Module Specification sheet Power Conditioning Unit (PCU) Single Line Diagram of Project Provisional Timeline of the project CERC guidelines for tariff calculation of SPV projects Project Financials

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ABBREVATIONS
AC a-Si Alternating Current Amorphous Silicon

CdTe CEA c-Si CIGS DC DPR GW HSE IREDA KW kWp kV MkWh MWp MNRE MPPT

Cadmium Telluride Central Electricity Authority Crystalline Silicon Cadmium Indium Gallium Selenide Direct Current Detailed Project Report Giga Watt Health, Safety and Environment Indian Renewable Energy Development Authority Kilo Watt Kilo Watt peak Kilo Volt Million Kilo Watt hour Mega Watt peak Ministry of New and Renewable Energy Maximum Power Point Tracking

O&M PCU PLF PPA PV PWD RE RES

Operation & Maintenance Power Conditioning Unit Plant Load Factor Power Purchase Agreement Photovoltaic Public Works Department Renewable Energy Renewable energy Sources : includes Small Hydro Project (SHP), Biomass Gas(BG), Biomass Power (BP), Urban & Industrial waste Power(U&I), and Wind Energy. Renewable Purchase Specification State Electricity Board State Electricity Regulatory Commissions Solar Photovoltaic Watt Peak

RPS SEB SERC SPV Wp

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SALIENT FEATURES
1. Location
State District TownName of Building Latitude Longitude : : : : Punjab Gurdaspur Batala o 28 3440 o 77 1301

2.

Climate and Site Conditions


Elevation above MSL Ambient Temperature o Average Ambient o Minimum Ambient Relative Humidity o Average Humidity o Peak Humidity Wind Load Seismic data : : : : : : : : 242 Meter Delhi Max. 46C 40C 2C 65% 90% As per IS 875 As per IS 1893 (Zone IV)

3.

Area available
: 30 Acres

Area available

4.

SPV Power Plant


Output No. of modules No. of modules in series No. of parallel combination No of AJBs No of MJBs No of PCUs : : : : : : : 5.00 MWp 18200 100 910 200 40 20

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5.

Technical details of a SPV Module


PV Module type Make Model Physical Dimensions o Length with frame o Width with frame o Thickness Electrical Parameter o Maximum Power Rating o Current at peak power o Voltage at peak power o Short Circuit Current o Open Circuit Voltage Module Efficiency : : : : : : : : : : : : Mono Crystalline WEBSOL,KOLKATA W 2300 1980 mm 997 mm 43 mm 230-240 Wp 7.84 A 35.8 V 8.4 A 45.0 V 19.3 %

6.

Mounting Arrangement Mounting Surface azimuth angle of


PV Module Tilt angle(slope) of PV Module

:
: :

Fixed Type
180
o o

28.0

7.

Inverter/ Power Conditioning Unit (PCU)


Number of units Rated Capacity Input Voltage range Output Voltage Frequency Efficiency : : : : : : 20 250 kWp 880 V (Max.) 400 V +/- 10 % 50 Hz 96.10 %

8.

Grid Connection Details


Electrical parameters for interconnection Voltage : o o Phase : o Frequency :

11 kV 3 Ph 50 Hz

9.

Annual Energy Generation


Annual Energy Plant Load factor : : 8.33MU(Million KWH 19 %

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10.

CDM Benifits Estimated CERs per annum CER Rate Considered Exchange Rate Grid Emission factor CER Income per annum : : : : : 7689 CER per Annum 12 Euro per CER Rs 60.00 per Euro 0.923 tonnes of CO 2 per MWh Rs. 55.36 Lacs per annum

11.

Financials Estimated Cost (Rs. Crore) Levelised Tariff (Rs/kWh) IRR Payback Period DSCR : : : : : 84.5 17.9 22% 10Years 1.62

12.

Power Purchase Agreement PSEB is willing to purchase the power generated subject to approval of tariff, scheduling of power and conditions regarding transmission wheeling, metering and allied issues from PERC. The exportable surplus power from these units will be thus transmitted and wheeled via the grid to P S E B account and distributed to its consumers. The quantum of power is marginal and will be easily absorbed into the grid.

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Chapter - 1

INTRODUCTION

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1.1

GLOBAL ENERGY SCENARIO

Power is a vital input for economic development and sustenance of modern economy. Power is also important for eradication of poverty. However, providing adequate and clean power to face the ever-growing environmental degradation has been a great challenge of the current century. Basically the objective of sustainable development is also the same. The inevitable increase in the use of fossil fuels to be in step with the economic growth has associated side effects of threat to energy security of the country and environmental degradation through climate change. World population is expected to double by the middle of the 21st century (Global Energy, 1998) and economic development needs to continue. It is expected that this will result in a 35 fold increase in world economic output by year 2050 and a 1015 fold increase by year 2100. Some studies predict that despite rapid economic development adequate energy services may not be available to one and all. A 1.5 to 3 fold increase in primary energy requirements by 2050 and a 2 to 5 fold increase by 2100 is expected. As early as 1896, the Swedish scientist Svante Arrhenius had predicted that human activities would interface with the way the suns interaction with the earth, resulting in global warming and climate change. The prediction is becoming more or less true mostly due to the indiscriminate use of fossil fuel. The following issues are considered to be of global significance. Ozone layer depletion Land degradation Air and water pollution Sea level rise Loss of biodiversity

A very important aspect of the global environment degradation is that it affects all on a global scale irrespective of country, race or region. Fossil fuel combustion is a major contributor to harmful emissions which aggravate the Ozone layer depletion. Sulphur, nitrogen oxides, carbon monoxide, and suspended particulate matter are the main pollutants. Acid deposition from fuel combustion is causing significant damage to natural systems, crops etc., affecting entire ecosystems and crossing national boundaries. In many regions, acidification has diminished the productivity of forests, fisheries and farm lands. Carbon dioxide (CO 2) produced by fossil fuel combustion, is the biggest source of the anthropogenic greenhouse gas emissions that are changing the global climate system. To achieve a stable atmospheric CO2 concentration at any level would require that CO2 emissions be cut by more than half from current levels, maybe within the next few decades. However, if the present trend is allowed to continue, current CO2 emissions will lead to more than a doubling of atmospheric concentration before 2070.

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1.1.1 Sustainable Development The World Commission on Environment and Development (the Brundtland Commission) defines sustainable development as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. While the development needs are recognized, it emphasizes that it must be based on the efficient and environmentally responsible use of all of societys scarce resources natural, human and economic. The Multiple Objectives of Sustainability is indicated in Figure 1
Figure 1
Sustainable Development

Promoting Equity

Improving Quality of Life and well being

Sustaining natural resources

Promoting Health of people and Ecos ystem

Meeting International obligations

1.1.2 Oil Depletion It is generally accepted that the world runs on oil. As the oil is termed as fossil fuel, the consensus is that it was formed in the past which means that the depletion has started the day the first barrel was consumed. The debate between the economists and natural scientists withstanding, the economist maintaining that the reserves are constantly renewed as they are extracted as Minerals are inexhaustible and will never be depleted and the natural scientists maintaining that an oilfield contains what it contains, because it was filled in the geological past. But the general pragmatic thinking is that the reserve will not last long. According to Mr. Colin J. Campbell, Founder and Honorary Chairman of the Association for the Study of Peak Oil and Gas (ASPO) , the watershed for oil comes around 2010, followed five years later by the peak of oil and natural gas combined. The base case scenario projected by him (please refer Figure 2 below) points to 2010 but could come sooner, ac co rd ing to him, if economic recovery should drive up the demand for oil.

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Figure 2: All Hydrocarbons Base Case Scenario 2002

Oil, which provides about 40% of global energy needs and about 90% of transport fuel, is set to start to decline within about ten years. Mr. Campbell warns that world will have to learn to use less of oil. World demand drives the rate of depletion. The scenarios projected earlier assumes that demand will be on average about flat, giving a plateau of production until the five swing countries of the Persian Gulf are no longer able to offset the decline of the rest of the world. According to Campbell, this time should be expected to be reached around 2010 when the demand is placed on these swing countries to produce over 20 Mb/d (million barrels a day) or about 36% of world demand. The world production would then have to commence its long term decline (World Hubbert Peak) he predicts. 1.1.3 Role of Renewable Energy

Renewable energy sources have the potential to provide energy services with zero or almost zero emissions of both air pollutants and green house gases. It is estimated that renewable energy sources supply 18% of total world energy demand. New renewable energy sources (other than traditional biomass) contributed to 8.4% of the worlds energy consumption in 2006 as shown in Figure 3. Solar photovoltaic are growing at a rapid pace and is expected that it would reach about 10,000 MW of world production by year 2010. It is worth mentioning here that each gigawatt hour of electricity generated by Solar Photovoltaic, rather than burning coal, prevents up to 820 tons of CO 2 emission.

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SE LE CT ED IN DI CA TO RS AN D TO P FI VE CO U NT RI ES
2007

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SELECTED INDICATORS

2008

2009

Investment in new renewable capacity (annual) 1 Renewables power capacity (including only small hydro) Renewables power capacity (including all hydro) Hydropower capacity (existing, all sizes) Wind power capacity (existing) Solar PV capacity, grid-connected (existing) Solar PV production (annual) Solar hot water capacity (existing) Ethanol production (annual) Biodiesel production (annual) Countries with policy targets States/provinces/countries with feed-in policies 2 States/provinces/countries with RPS policies States/provinces/countries with biofuels mandates

104 210 1,085 920 94 7.6 3.7 125 53 10 68 51 50 53

130 250 1,150 950 121 13.5 6.9 149 69 15 75 64 55 55

150 billion USD 305 GW 1,230 GW 980 GW 159 GW 21 GW 10.7 GW 180 GWth 76 billion liters 17 billion liters 85 75 56 65

TOP FIVE COUNTRIES Annual amounts for 200 9

#1

#2

#3

#4

#5

New capacity investment Wind power added Solar PV added (grid-connected) Solar hot water/heat added3 Ethanol production Biodiesel production
Exi sting capaci ty as of end -2009

Germany China Germany China

China United States Italy Germany

United States Spain Japan Turkey China United States

Italy Germany United States Brazil Canada Brazil

Spain India Czech Republic India France Argentina

United States Brazil France/Germany

Renewables power capacity (including only small hydro) Renewables power capacity (including all hydro) Wind power Biomass power Geothermal power Solar PV (grid-connected) 3 Solar hot water/heat

China China United States United States United States Germany China

United States United States China Brazil Philippines Spain Turkey

Germany Canada Germany Germany Indonesia Japan Germany

Spain Brazil Spain China Mexico United States Japan

India Japan India Sweden Italy Italy Greece

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Figure 3: Renewable Energy Share of Global Final Energy Consumption 2008

1.2

INDIAN ENERGY SCENARIO


st

The total installed capacity of electricity in India as on 31 December 2009 was 1,56,092.23 MW; the Peak Demand was 1,16,281 MW and the Demand met was 95,783 MW. This results in a Peak Deficit of 13,938 MW (12.6%). According to the 16th Electric Power Survey, over 1,00,000 MW additional generation capacity needs to be added by 2012 to bridge the gap between demand and supply of st power. Out of the total installed capacity of 1,56,092 MW as on 31 December 2009, 63.97% was thermal power, 2.65% was of nuclear power, 23.63% was hydro, and about 9.75% was renewable energy based.

Figure 4 : All India Generating Installed Capacity ( Mw ) (As On 31-12-09 )

Source: Central Electricity Authority

The Electricity Act, 2003, is intended to consolidate the laws relating to the generation,

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transmission, distribution, trading and use of electricity and generally for taking measures conducive to the development of electricity industry promoting competition therein, protecting interest of consumers and supply of electricity to all areas. Under paragraph 3 (1) of part 2 National Electricity Policy and Plan of The Electricity Act, 2003, it is provided that, the Central Government shall from time to time, prepare the national electricity policy of tariff policy, in consultation with the state Governments and the Authority for development of the power system based on optimal utilisation of resources such as coal, natural gas, nuclear substances or materials, hydro and renewable sources of energy. Under paragraph 6.4 Non-Conventional sources of energy generation including cogeneration, of the Tariff Policy, it is provided that, Pursuant to provisions of section 86 (i) (e) of the Act, the Appropriate Commission shall fix a minimum percentage for purchase of energy from such sources taking into account availability of such resources in the region and its impact on retail tariffs. Such percentage for purchase of energy should be made applicable for the tariffs to be determined by the SERCs latest by April 1, 2006. 1.3 RENEWABLE ENERGY IN INDIA

India has a vast supply of renewable energy resources, and it has one of the largest programs in the world for deploying renewable energy products and systems. Indeed, it is the only country in the world w i t h an exclusive Ministry for Renewable Energy development, the Ministry of New and Renewable Energy (MNRE). Since its formation, the Ministry has launched one of the worlds largest and most ambitious programs on renewable energy. Based on various promotional efforts put in place by MNRE, significant progress is made in power generation from renewable energy sources. Renewable energy technologies based on the inexhaustible resources of sunlight, wind, water and biomass are considered to offer sustainable energy alternatives to a world beset by serious environmental problems and volatile fossil fuel politics. An increasing share of global energy needs is expected to be met by renewable in the years ahead. India is abundantly endowed with renewable energy resources i. e. , solar energy, wind energy, biomass and small hydro, widely distributed across the country, and can be utilized through commercially viable technologies to generate power. Around 15,225 MW (around 9.75 % of total installed capacity in the country) capacity of Renewable Energy projects has been installed in the country. India is planning to add about 14,500 MW power generating capacity from renewable in the 11th plan (2007-2012). The environment has become the main driving force behind efforts in use of renewable energy projects and energy efficiency & conservation. Evidence is accumulating that the burning of fossil fuels contributes to global warming and climate change.

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Detailed Project Report 5.00 MW Solar Power The demand for power supply has industrialization, development of irrigation facilities to the farms in domestic sector, to meet minimum

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been increasing considerably due to more & more various industries etc. and the need to bring the dry zones, increased dependency on power in needs program of electrifying the villages, etc.

The need for harnessing renewable source of energy has, therefore, gained increased importance not only to meet the growing demand for energy but also for the fact that sources like coal, oil, petroleum products and other hydro carbons are fast getting depleted in the world and particularly in India. The total power generation capacity addition planned for the Tenth and Eleventh Five Year Plan (2002-2012) is around 1,00,000 MW of which 10% (i.e. 10,000 MW) was aimed as the share of renewables such as Wind, Solar, Biomass and Small Hydro. India is a tropical country and has abundant solar insolation throughout the country for most part of the year. As the seasonal variation is marginal, solar energy can be harnessed economically throughout the year. Taking the above factors into consideration, Government of India had formulated a policy frame work for enhancing the share of renewable energy in the total energy mix of the country known as National Action Plan on Climate Change (NAPCC). On June 30, 2008, Prime Minister Manmohan Singh released Indias first NAPCC outlining existing and future policies and programs addressing climate mitigation and adaptation. The plan identifies eight core National Missions running through 2017 and directs ministries to submit detailed implementation plans to the Prime Ministers Council on Climate Change. Emphasizing the overriding priority of maintaining high economic growth rates to raise living standards, the plan identifies measures that promote our development objectives while also yielding co-benefits for addressing climate change effectively. It says these national measures would be more successful with assistance from developed countries, and pledges that Indias per capita greenhouse gas emissions will at no point exceed that of developed countries even as we pursue our development objectives. ALL INDIA REGI ON WISE GENER ATING INSTALLED CAPAC ITY (MW) OF 6. POW ER UTIL ITIES INCLU DING ALLOC ATED SHARE S IN JOINT AND CENTRAL SECTOR UTILI TIES
(As on 30 -09-10 )

SL. NO. 1 2 3 4 5 6 7

REGION Northern Western Southern Eastern N. East ern Islands All India

THERMAL COA L GAS 22520.00 3563.26 29155.50 8143.81 19172.50 4690.78 17035.38 190.00 60.00 787.00 0.00 0.00 87943.38 17374.85 DSL 12.99 17.48 939.32 17.20 142.74 70.02 1199.75 TOTAL 26096.25 37316.79 24802.60 17242.58 989.74 70.02 106517.98

Nuclear 1620.00 1840.00 1100.00 0.00 0.00 0.00 4560.00

HYD RO R.E.S.@
(Renewable)

TOTAL 44029.62 51454.22 45492.30 21459.61 2323.93 76.12 164835.80

13622.75 7447.50 11260.03 3882.12 1116.00 0.00 37328.40

(MNRE)

2690.62 4849.93 8329.67 334.91 218.19 6.10 16429.42

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1.4

JAWAHARLAL NEHRU NATIONAL SOLAR MISSION

On January 11, 2010, Prime Minister Manmohan Singh has launched the Jawaharlal Nehru National Solar Mission (JNNSM) on under the brand name Solar India. The mission is one of the eight National Missions of NAPCC. The mission targets are as follows: To create an enabling policy framework for the deployment of 20,000 MW of solar power by 2022. To ramp up capacity of grid-connected solar power generation to 1000 MW within three years by 2013; an additional 3000 MW by 2017 through the mandatory use of the renewable purchase obligation by utilities backed with a preferential tariff. This capacity can be more than doubled reaching 10,000MW installed power by 2017 or more, based on the enhanced and enabled international finance and technology transfer. The ambitious target for 2022 of 20,000 MW or more, will be dependent on the learning of the first two phases, which if successful, could lead to conditions of grid-competitive solar power. The transition could be appropriately up scaled, based on availability of international finance and technology. To create favorable conditions for solar manufacturing capability, particularly solar thermal for indigenous production and market leadership. To promote programmes for off grid applications, reaching 100 MW by 2017 and 2000 MW by 2022. To achieve 15 million sq. meters solar thermal collector area by 2017 and 20 million by 2022 To deploy 20 million solar lighting systems for rural areas by 2022.

Sr. No 1 2

Application segment Solar collectors Off grid solar applications

Target for Phase I (2010-13) 7 million sq. m 200 MW

Target for Phase 2 (2013-17) 15 million sq. m 1000 MW

Target for Phase 3 (2017-22) 20 million sq. m 2000 MW

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20000 MW

Proposed Road Map for the National Solar Mission

The mission document is attached as Annexure I. Government has also decided to approve the implementation of the first phase of the JNNSM during 2009-2013 and the target to set up 1,000 MW grid connected (33 KV and above) solar plants, 100 MW of roof top and small solar plants connected to LT/11 KV grid and 200 MW capacity equivalent off-grid solar applications in the first phase of the Mission, till March, 2013 and an amount of Rs. 4337 crore has been approved for these activities. Implementation of the target of 1,000 MW of grid connected (33 KV and above) solar power plants will be through NTPC Vidyut Vyapar Nigam (NVVN), a trading subsidiary of NTPC Limited. NVVN will directly purchase the solar power from the project developers as per the norms and guidelines fixed in this regard. 100 MW capacity of solar roof top and small grid connected solar power plants will be connected to LT/11 KV grid of the distribution utility and the solar power will be directly purchased by the distribution utilities as per the norms and guidelines fixed in this regard. Copy of Mission Resolution by attached as Annexure II Ministry of New and Renewable Energy is

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Chapter - 2

PROJECT SUMMARY

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2.1

PROJECT INFORMATION 5.00 MWp capacity Solar PV Power plant at Village Ladhupur, Teshil - Gurdaspur, Distt Gurdaspur , PANJAB STATE. The available Land area is 30 Acres Available nearest grid substation for power evacuation is of 66 KV at a distance of around 2 KM located in the Village, Kahnuwan, Teshil & Distt, Gurdaspur. SOLAR POWER PROJECT One no. Grid Connect Solar Power Plant having Generation capacity of 5 .00 MWp at 33 KV, 50 Hz A.C. supply system will be installed. These specifications specifically cover requirements for Grid Connected Solar Power Plant along with their accessories only. The Grid Connect Solar Power Plant will generate power through solar energy and supply clean and green electricity to the grid without any damage to the existing ceiling/roof and the structure. The minimum array capacity at STC will be of 5.00 MWp at the time of installation and after 1 year of operation. The total capacity of the 5.00 MWp solar power plant is divided into sub arrays of 230kWp solar power capacity to feed into the 250KW rating power conditioning units. 24V, 230Wp mono crystalline solar modules 18200 nos. used for this project, connecting 100 nos in series and such 910 strings in parallel using Array Junction boxes and Main Junction boxes. The Junction boxes shall be dust, vermin and water proof and each array junction boxes shall have suitable reverse blocking diodes and MCBs for surge protection. These solar modules are mounted on single module mounting structures specially designed for fixing over Kalzip railings. The outputs of the Main Junction Boxes connected to the Power Conditioning Units (PCU) for converting the DC power into AC power and then export the solar energy into the grid through LT panel, Transformer and HT Panel. The project is estimated to generate about 8.33 MUs per annum for 25 years. The p r o j e c t mechanism. also plans to avail carbon credits under clean development

2.2

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Chapter - 3

ECONOMIC SCENE OF PROJECT LOCATION GROWTH AND CONSTRUCTION

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3.1

ABOUT PUNJAB Punjab, the richest state in India that throbs with the vibrant culture of equally vibrant people, has always moved on the path of prosperity despite all odds. With its inimitable style of transforming every potential opportunity into a success story through enterprise and endeavor Punjab has always been at the forefront in the development story of India. Punjab The Food basket and Granary of India", has been awarded National Productivity Award for agriculture extension services for consecutively ten years from 1991-92 to 1998-99 and 2001 to 2003-04. The geographical area of Punjab is 50,362 sq. km (1.5% of India's total IT lies in North-west of India. Its average elevation is 300 m from the sea level. Punjab extends from the latitudes 29.30 North to 32.32 North and longitudes 73.55 East to 76.50 East. It is bounded on the west by Pakistan, on the north by Jammu and Kashmir, on the northeast by Himachal Pradesh and on the south by Haryana and Rajasthan. Due to the presence of a large number of rivers, most of the Punjab is a fertile plain. The southeast region of the state is semi-arid and gradually presents a desert landscape. A belt of undulating hills extends along the northeastern part of the state at the foot of the Himalayas. Punjab is situated in the North-Western part of India. The Punjab climate is determined by the extreme hot and extreme cold conditions. The region lying near the foot hills of Himalayas receive heavy rainfall whereas the region lying at a distant from the hills, the rainfall is scanty and the temperature is high. Punjabs climate comprises of three seasons. They are the summer months that spans from mid April to the end of June. The rainy season in Punjab is from the months of early July to end of September. The winter season in Punjab is experienced during the months of early December to the end of February. The transitional seasons in Punjab are the post monsoon season and the post winter season.

The climate of the plains is excessively hot and dry between April and August, with temperatures as high as 49 C. Winters are cool with some frosts. The average temperature in January is 13 C, although at night the temperature sometimes lowers to freezing. In June the average temperature is 34 C occasionally climbing as high as 45 C. The rains of the monsoon season begin at the end of June and continue till August. Annual rainfall ranges from about 915 mm (about 36 in) in the north to 102 mm (4 in) in the south. Annual average rainfall ranges from 1250 mm in the north to 350 mm in the southwest. More than 70 percent of the annual rainfall occurs during the monsoon season from July to September. Much of Punjab lies in the Punjab Shelf, bounded on the east by the Delhi-Haridwar Ridge and on the south by the Delhi-Lahore Ridge. Most earthquakes in this region are shallow though a few earthquake of intermediate depth have been recorded in Punjab.

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However, it must be stated that proximity to faults does not necessarily translate into a higher hazard as compared to areas located further away, as damage from earthquakes depends on numeros factors such as subsurface geology as well as adherence to the building codes. The districts of Firozpur, Faridkot, Patiala, Mansa, Sangrur and Bhatinda lie in Zone III. The districts of Amritsar, Gurdaspur, Hoshiarpur, Jalandhar, Kapurthala, Ludhiana, and Rupnagar lie in zone IV. The per capita income at current prices has been estimated at Rs.30,701 in 2004-05 as against Rs.28,607 in 2003-04 showing an increase of 7.32 percent. The Gross State Domestic Product (GSDP) at Constant (1993-94) prices during 2004-05 was Rs.48532 crores (Q) and the provisional estimates of GSDP for the year 2003-04 was Rs. 46049 crores. Punjab which has done remarkably well in the field of agriculture is now well on its way to rapid industrialization through coordinated development of Small, Medium and Large scale industries. Punjab has predominance of small-scale industry; thanks to the indomitable spirit and entrepreneurial skills of the Punjabis (people of Punjab). 0.2 million small scale industries and 600 large and medium scale industries functioning in the state involve fixed capital investment of Rs.54000 Million and Rs.20400 Million respectively.

3.2

GURDASPUR DISTRICT The Gurdaspur district is the northern most district of Punjab state. It falls in the Jalandhar division and is sandwitched between river Ravi and Beas. It shares common boundaries with Kathua district of Jammu and Kashmir state in the north, Chamba and Kangra districts of Himachal Pradesh in the north-east, Hoshiarpur district in the south-east, Kapurthala district in the south, Amritsar district in the south west and Pakistan in the north west. The district lies between north-latitude 310-36' and 320-34' and east longitude 740-56' and 750-24' Total area of the district is 3562 Sq.Km. Three Tehsils of the district namely Gurdaspur, Batala and Dera Baba Nanak are plain and similar to the rest of the Punjab plains in structure, genesis lithology and surface configuration out the northern most part of the district, i.e. Dhar and Pathankot tehsils are in the foot of Shivalik hills. The landscape of the Gurdaspur district has varied topography comprising the hilly tract, undulating plan, the flood plains of the Ravi and the Beas and the up land plain. The hilly tract covering the north-eastern parts of Pathankot and Dhar tehsils are typically land topography, ranging in elevation from about 381 to 930 metre above sea level. From north to south the tract consists of three small ranges running in 23

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north-west to south east direction The Siali Dhar-Dangahri Dhar range the Dhaula Dhar-Nag Dhar range and the Rata Dhar range. The Siali Dhar-Dangahri Dhar range lies to the extreme north. In its western part Siali Dhar is about 931 metres above sea level at its highest point and in the eastern part about 959 metres. This range is highly dissected by numerous streams. South of this is situated the Dhaul Dhar-Nag Dhar which is about 13 km long and at places about 2.5 km. wide and has an elevation varying from about 610 to 844 metres above sea level. There are mainly two seasons i.e. summer and winter. The summer season falls between the months of April to July and the winter November to March. In summer season the temperature touches 44 0C or even sometimes crosses it. June is the hottest month and January is the coldest one. Mostly the rain falls in the month of July. The winter rains are experienced during January and February. The dust storm occurs in the month of May and June. The south-west monsoon generally arrives in the first week of July and continues till end of August. 70% of the rainfall occurs during this period. The average rainfall of the district is 875.4 millimeters (average of 5 years). The rainfall in the district is greater in the sub mountain parts of the district and decreases rapidly towards the southwest.

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Chapter - 4

POWER SCENARIO IN PUNJAB

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4.1

INSTALLED CAPACITY IN PUNJAB The total installed capacity of Punjab is 4942MW (as on 30.03.2010) of which Thermal Power constitutes of 3942 MW and Hydro constitutes of 10 00 MW. The detail mode wise & sector wise breakup of the installed capacity is given below:

Source: Central Electricity Authority

4.2.2

PPA with PSEB for Solar Power

The power from this Solar plant is proposed to be supplied to PS EB network. The same has also to be approved by PERC.

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Chapter - 5

NEED OF THE PROJECT

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5.1 5.2

POWER SUPPLY ARRANGEMENTS Power will be supplied to PSEB at 66 KV substation. NEED OF SOLAR PROJECT.

5.2.1 Utilization of Renewable Source Available In the light of the ever growing importance of renewable energy, specially solar photovoltaic energy and in the context of climate change and energy security, PEDA as per JNNSM has decided to utilize in solar photovoltaic electricity for their energy need during day time and toward this objective department decided to implement a 5.00 MWp grid interactive solar photovoltaic power project at the Gurdaspur district. This also shall create a revenue stream for renewable energy based power generating units through trading of carbon credits, green certificates etc.

5.3

POWER GENERATION SCHEME

5.3.1 Electrical System Types As it is intermittent, the electricity produced by solar PV array needs to be properly controlled, stored and distributed. The two major possibilities currently prevalent are (i) Standalone system and (ii) Grid connect system. It may be noted that many devices are needed between the array and the load to provide electrical power. A typical standalone photovoltaic system is composed of an array converting sunlight into electricity. Electrical current flows into a bank of batteries through a charge controller (regulator) that protect the batteries from overcharge or over discharge. By using a DCDC converter required levels of DC voltage can be obtained if the loads to be connected are of DC types and if the loads are of AC type a DCAC inverter may be needed.

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A schematic diagram of a Standalone PV system is shown in Figure below:

Figure 5: Schematic Diagram of Stand alone PV system

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A schematic diagram of a Grid connect system is shown in Figure below:

Figure 6: Schematic Diagram of Grid connect system The project is of the grid connect system type. The system operates only when the utility is available. The system consists mainly of the following: Solar PV array which produces DC electricity when solar rays are incident on it. o Power Conditioning Units (PCU) which convert DC (Direct Current) electricity into AC (Alternating Current) electricity and facilitate synchronization with the grid power o Transformers which transform the AC output of the Power Conditioning Units to the level required at the grid

5.3.2 Operating Principle of Grid Connect Solar PV Systems The system automatically wakes-up in the morning and feeds-in power to the grid, provided the grid power is within the window (voltage and frequency limit) of synchronization. The Maximum Power Point Tracking (MPPT) circuit within the PCU extracts the Maximum available power from the solar array and feeds it to the grid. If the grid voltage and / or frequency go out of the window, the PCU immediately isolates from the grid. The PCU will reconnect after a pre-determined time when the grid is back within the window. When the feed-in power is below a predetermined level or when the solar insolation is below a selected value for a pre-determined period of time the PCU is isolated from the grid and is operated in sleep mode. This minimizes the stand by losses. TYPICAL SYSTEM COMPONENTS OF GRID CONNECT SPV SYSTEM

5.4

5.4.1 Solar PV Modules / Array As the solar cells have limited linear dimensions, a number of cells are to be interconnected to provide required voltage and current. These are encapsulated using a material such as Ethylene Vinyl Acetate (EVA) between a transparent window and moisture proof backing to insulate and protect them.

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As the PV cells are less efficient at higher temperatures, modules are mechanically designed as not to retain the solar heat and mounted so as to permit natural cooling. The Figure below depicts the structure of a commercial module.

Figure 7: Structure of a Commercial Module The electrical performance of a module is more or less identical to a solar cell. It is shown in the Figure below:

Figure 8: Characteristic Curve The following parameters need to be considered while selecting a module for use: o Opencircuit Voltage Voc o Shortcircuit Current Isc o Voltage Corresponding to MPP Vmp o Current Corresponding to MPP Imp o Maximum power Pm

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Generally, the aforementioned values are compared to a solar irradiation of 1000 W/m2 with a spectrum of AM 1.5 and solar cell temperature of 25oC. Another very important feature connected with solar PV module performance is the Normal Operating Cell Temperature (NOCT). NOCT is that value of cell temperature which is reached when the incident solar radiation is 800 W/m2, ambient temperature is 47 + 2oC and wind velocity is 1 meter/second.

5.4.2 Solar PV Array Depending on the load power requirements, modules are interconnected in series or parallel to constitute a PV array. The Figure below is a representation of cell to module and module to array.

Figure 9: From Solar Cell to Solar PV Array Diagram of an array of modules and the resulting IV characteristics is shown in Figure below:

Figure 10: I V Characteristics

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Diodes are used in two ways in a photovoltaic array. Brief details are given below:

5.4.2.1. Blocking Diodes These are placed in series with a module to prevent current from flowing backwards through to modules.

5.4.2.2. ByPass Diodes When a cell gets shaded from the sun, an opencircuit can exist in which there is no current flow. Bypass (or shunt) Diodes are used to shuntcurrent, so that the other cells and modules continue to produce power in the PV array.

5.4.3 Balance of Systems (BOS) 5.4.3.1 Power Conditioning Units / Inverters The Power Conditioning Units used in grid connect SPV systems consist of an Inverter and other electronics for MPPT, Synchronization and remote monitoring. The inverter is the most complicated part of the PV system. It has to act as the interface between the PV array and the Grid. As the PV array output varies with the solar radiation the inverter has to cope with the same. The main functions carried out by the PCU are as follows: o Change the incoming DC received from PV modules into AC with suitable power quality. The inverter produces sinusoidal AC wave forms with low harmonic distortion. o The inverter also has to act as a protective device of the system. It needs to trip out if the voltage, current or frequency goes outside acceptable ranges. Pulse width modulation is used to generate a wave form as near as possible to a sine wave. High speed switching device are used to generate pulses of the devices mainly used for Inverter circuitry. Inverter efficiencies are now reaching about 95% commercially, mainly by deploying new switching topologies.

5.4.3.2 Other BOS Items Solar PV module mounting structures, interconnection systems and protection system which are used to integrate the solar PV modules into the structural and electrical systems are known as other BOS items.

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5.4.3.3 Schematic Diagram of Solar PV Grid Connect System

Figure 11: Solar PV Grid Connect System The Figure above represents the concept of grid connects solar PV system with feed-in at 33 kV level. The SPV array (constituting solar PV modules of selected rating connected in series to build up the required voltage and in parallel to build up the required current) of the designed DC power produces DC electricity when Solar insolation is incident on it. The DC power thus produced is taken through various junction boxes and isolators and connected to the PCU. The PCU houses the inverter circuitry which converts DC power supply into AC power supply, the synchronization circuitry which actualizes the tie-up of solar PV source to the grid source and the remote monitoring and control circuitry. A number of PCUs are connected in parallel to buildup the required AC power, and combiners permit AC output power at 3 Ph, 415 V, 50 Hz to be fed into transformers. Depending on the grid voltage level to which the solar PV power is being synchronized, different levels of step-up transformers may have to be deployed. In the project under consideration, as the grid voltage is at 66 kV level, there will be two step-up from 415 V to 11 KV and 11 KV to 66 KV. The protection and metering circuits are not shown in the schematic diagram but in the actual scheme of things these play a very significant role. Appropriate current transformers and potential transformers are used to tap required feedback signals to initiate action on metering and protection.

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Chapter - 6

SURVEY AND INVESTIGATION

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6.1 6.1

TYPICAL SYSTEM COMPONENTS OF GRID CONNECT SPV SYSTEM Location Map of Gurdaspur attached as Annexure IV The exact location of the project site has the following orientation: o o Latitude : 28.56 o N 77.13 E
o

Longitude :

Climate and site condition of the project location are as follows: o o o o Elevation above MSL Ambient Temperature Average Ambient Minimum Ambient : : : : 242 Meter . Max. 46C 40C 2C

Relative Humidity o Average Humidity o Peak Humidity Wind Load : Seismic data

: :

65% 90%

As per IS 875 : As per IS 1893 (Zone IV)

Seismic zone map of India is attached as Annexure V Details of area available for the project are as follows: o Total Land area of 30 Acres is available at the proposed project site. Some photographs of the project site during execution are given in Annexure VI.

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Chapter - 7

POWER POTENTIAL STUDIES

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7.1

SOLAR RADIATION - INDIA The highest annual radiation energy is received in western Rajasthan while the north eastern region of the country receives the lowest annual radiation. The annual mean daily solar radiation in India varies from 4.5 6.5 KWh/m /day. Figure below shows the annual mean daily solar radiation pattern in different parts of India.
2

kWh/m 2/day

Source: MNRE

Figure 12: Annual Mean Daily Solar Radiation in India in kWh/m2/day

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7.2

SOLAR PV MODULE TYPES Over the past three decades SPV technology has shown impressive growth towards technological and economic maturity. The major SPV technologies based on materials used are (i) Crystalline Technology (ii) Thin Film Technology.

7.2.1 Crystalline Technology Crystalline Silicon (mono & multi) cell technology continues to dominate and forms about 90% of market share. It is the current industry leader and almost all applications use crystalline silicon based PV technology. It is ideally suited for locations with space constraints due to high efficiency than thin-films.

7.2.1.1 Overview Crystalline Silicon (c-Si) was chosen as the first choice for solar cells, since this material formed the foundation for all advances in semiconductor technology. The technology led to development of stable solar cells with up to 16% efficiency. Two types of crystalline silicon cells are used in the industry. The first is Monocrystalline Si, produced by growing high purity, single crystal Si rods and slicing them into thin wafers. The second is Multicrystalline Si, made by sawing a cast block of silicon first into bars and then wafers. Major trend in PV industry is toward multicrystalline technology. In both mono- and multicrystalline Si, a semiconductor junction is formed by diffusing phosphorus (an n-type dopant) into the top surface of an already boron doped (p-type) Si wafer. Screen-printed contacts are formed on the top and bottom of the cell, with the top contact pattern specially designed to allow maximum light to enter the Si material and minimize electrical (resistive) losses in the cell. Most efficient Solar cells are produced cells using Monocrystalline Si with laser grooved, buried grid contacts for maximum light absorption and current collection. Some variants of c-Si technologies are also being tried by the industry. One of them is to grow ribbons of silicon from a silicon melt, either as a plain twodimensional strip or as a hollow octagonal structure and laser cutting into strips. Another is to melt silicon powder on a cheap conducting substrate. Main advantage of these is the elimination of kerf loss that prevails in other crystalline technologies they have limitations by way of lower growth/pulling rates and poorer uniformity of surface evenness and scalability. Each c-Si cell generates typically generates about 0.5V. Usually 36 cells are soldered together in series to generate voltage levels that can charge a standard 12V battery. The cells are hermetically sealed with glass on the front side and plastic materials at the back to produce highly reliable, weather resistant c-Si Modules with performance guarantees in excess of 25 years. Typical c-Si cell is shown in Figure below:

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Figure 13: Crystalline silicon solar cell 7.2.1.2 Advantages: Highest efficiency levels (14.5% to16%) Commercially most viable among PV technologies Sustained dominance in PV industry for over 25 years Higher current / lower voltage features enable easier system design Project implementation can be done in stages starting with Module assembly and backward integration to wafer fabrication stage or the other way from Wafer to Cell to Module Performance guarantee for c-Si Modules is generally in excess of 25 years

7.2.1.3 Disadvantages: In c-Si technology consumption of material (Silicon) is far more than what is actually needed for converting light into electricity. High dependence on Polysilicon availability and pricing. Melting point of Silicon being high (1415 C) power consumption is high in Polysilicon production and Wafer fab processes.
o

7.2.1.4 Merits of Multicrystalline Technology From the historic trends on crystalline production, it can be observed that in the last decade, the share of multi-crystalline modules has gradually increased from 42.1% to 45.2%. This has been driven by primarily two reasons: o Aim to reduce energy consumption in the whole process

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Solar Photovoltaic industry commenced using scrap silicon and off-grade silicon from semiconductor industry in the initial stages and solar photovoltaic industry also followed the highly energy intensive and delicate CZ process for growing crystals to sliced wafers. However, as the size of the industry increased and as the scarcity of silicon feedstock started impacting the industry, in addition to the significant cost increases on account of electrical energy costs, the multicrystalline silicon commenced carving out more share. This was basically due to the fact that for multi-crystalline process, the two initial steps, which are high energy consuming of silicon purification and crystal growing, are eliminated. Multi-crystalline process uses only off-grade and scarp silicon as feedstock. Over the years, due to continuous research, the efficiency levels of multicrystalline have also almost got up with single crystalline cells at 14-15%. In the years to come, multi-crystalline is expected to grow at a much faster pace than single crystalline, due to the aforementioned reasons.

7.2.2 Thin Film Technology 7.2.2.1. Overview of the technology The high cost of crystalline silicon wafers (they make up 40-50% of the cost of a finished module) has led the industry to look at cheaper materials to make solar cells. The selected materials are all strong light absorbers and only need to be about 1micron thick, so materials costs are significantly reduced. Amorphous Silicon thin film Solar Cell is the earliest device developed in this area. Other types of thin film Cells that followed are Cadmium Telluride (CdTe) and Copper Indium Gallium Diselenide (CIGS) Solar Cells. New developments in this field include Micromorph Cells (a combination of amorphous and microcrystalline Silicon materials) that has yielded higher efficiencies and has better stability features. In Thin Film Solar Cell / Module technology, very thin layers and a chosen semiconductor material (ranging from nanometer level to several micrometers in thickness) are deposited on to either coated glass or stainless steel or a polymer. The semiconductor junctions are formed in a different way, either as a p-i-n device structure in amorphous silicon, or as a hetero-junction. A transparent conducting oxide layer (such as tin oxide) forms the front electrical contact of the cell, and a metal layer forms the rear contact. Thin film technologies are all complex. They have taken at least twenty years, supported in some cases by major corporations, to get from the stage of promising research to the first manufacturing plants producing early product. Typical Thin Film Silicon solar cell is shown in Figure below:

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Figure 14. Thin film silicon solar cell

7.2.2.2. Advantages Significant lower material cost per Wp Faster manufacturing processes with less number of steps Comparatively lower energy consumption processes Higher energy performance (Thin Film modules generate more electricity per unit of installed capacity than crystalline silicon modules) Lightweight and flexible substrate

7.2.2.3. Disadvantages Suffers from Less than adequate conversion efficiency Poor long term stability High capital costs Scalability and control of uniformity over large area designs Lower environmental compatibility in respect of CdTe and CIGS technologies

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7.3

COMPARISION BETWEEN CRYSTALLINE & THIN FILM TECHNOLOGY Parameter Types of Materials Handling Power Efficiency Technology Module Weight Area utilization Crystalline Mono Crystalline & Polycrystalline Better protection against breakage 12-16% Well Developed Light weight modules Higher power generated per unit area due to high efficiency Temperature variations affect output Used particularly for Normal radiations Lesser nos required due to high efficiency High Thin Film Amorphous Silicon, CdS, CdTe, CIGS etc. Not Guaranteed 6-8% Under development Heavier modules Less power per unit area Lesser impact of Temperature variations Better performance with Diffuse radiations More modules required Varies as per sunlight condtion and various locations Higher cost More Mounting structures required Largest space requirement Limited inverter flexibility Lower cost per Watt Sensitive Stability achieved after 4-6 months Limited supply Toxic materials used (CdS, CdTe) Highest degradation for initial 5-7 years Highest maintenance required, so highest maintenance cost

Sr. No. 1) 2) 3) 4) 5) 6)

7) 8) 9) 10)

Temperature Effects Irradiance Module quantity Output per MW installed Transportation Cost Mounting Structure Land Requirement Inverter Cost Environment Effects Stabilization Availability Health hazards Power Degradation Plant Maintenance

11) 12) 13) 14) 15) 16) 17) 18) 19) 20) 21)

Lower Transportation cost Fewer Mounting structure required per KW power Lesser space required per MW High inverter flexibility High cost per Watt Less Sensitive Stable power output from at initial stages Easily available Made from non toxic material (Si) Less degradation Less maintenance required after installation so lower cost

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Sr. No. 22) 23) 24)

Parameter Repair Cooling Requirement Cabling

Crystalline Relatively easy Not required Well known, and lower cabling losses

Thin Film Difficult due to complex structure Not required Well Understood but yet difficult due to higher number of arrays, along with high cabling losses Good

25)

Suitability for Grid Technology

Good

7.4

TECHNOLOGY SELECTED FOR PROJECT the technology which should be selected should have the higher efficiency so that maximum capacity can be installed. Monocrystalline technology is the w el l p r o ve n technology in the field of Solar energy and hence selected for the project. SOLAR RADIATION AT PROJECT SITE

7.5

Tilted Flat Plate Collectors: Latitude Tilt Irradiance (TILT) Annual Average: 5.88 kWh/m sq Monthly Average in kWh/m sq Jan 4.75 Feb 5.50 Mar 5.97 Apr 6.54 May 6.65 Jun 6.37 Jul 5.26 Aug 5.25 Sep 6.24 Oct 6.93 Nov 6.12 Dec 4.96

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For fixed modules generation will be maximum at the tilt of the angle of latitude.i.e. o 28 . Generation can be increased by providing manual tilting (or seasonally adjusted) twice a year. Solar panels should always face true south tilted from the horizontal at a degree equal to your latitude plus 15 degrees in winter or minus 15 degrees in summer. SOLAR POWER GENERATION A solar photovoltaic module is constructed from individual solar cells. The solar cells are hermetically sealed between glass and Tedlar and EVA sheets at the rear. To carry the same power a higher system voltage is advantageous since the system then needs to carry relatively lower current. This reduces the cross sectional area of the conductors. The lower current reduces the cable losses. A higher system voltage is created by connecting the solar PV modules in series. The modules connected in series are known as strings. The strings are connected to the String Junction Boxes (SJBs) and the SJBs are connected into the Panel Junction Boxes (PJBs) and PJBs are connected to the Array Junction Boxes (AJBs). The AJBs are connected to the Main Combiner Box which acts as the Main DC Collecting Unit which feeds the DC power to the PCUs to be converted to AC power supply. The 5.00 MWp circuit will consist of 20 numbers of 250 KW PCUs. Each PCU is likely to have about 900 modules (230 Wp Crystalline module of Websol make). Advantage of using a central inverter (instead of string inverters) is that the module fields are less sensitive towards partial shading which is generally the case with String Inverters. Due to higher system voltage the central inverters also reach very high efficiency level. The AC power from the PCUs are fed into lower voltage panel and then to the transformers through isolators and circuit breakers. The secondary side of the final transformer is routed through a high voltage panel, fitted with necessary measuring and protection devices, before connecting to the grid.

7.6

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Chapter - 8

DESIGN OF POWER PLANT ELECTRICAL & MECHANICAL

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8.1

PROJECT DESIGN The major equipments and materials associated with 5.00 MWp grid connected solar power plant are; o Solar module of composite 5MWp capacity including mounting frames, structure and interconnection cables. o Array Junction Boxes and Main Junction Boxes. o Power Conditioning Units (PCU). o LT Switch gear interface Panel. o 415V/11KV Generation Transformer and associated switch gear. o HT Switch Gear Panel with protection, indication and measuring instruments. o Earthing system for DC and AC systems. o Data Acquisition system with remote monitoring facilities. The total capacity of the 5 MWp solar power plant is divided into sub arrays of 230kWp solar power capacity to feed into the 250KW rating power conditioning units. 24V, 280Wp monocrystalline solar modules 182 00 nos used for this project, connecting 100 nos in series and such 910 strings in parallel using Array Junction boxes and Main Junction boxes. Array Layout is attached as annexure VIII. The data sheet of PV module is attached as annexure IX The Junction boxes shall be dust, vermin and water proof; each array junction boxes shall have suitable reverse blocking diodes and MCBs for surge protection. These solar modules are mounted on single module mounting structures specially designed for fixing over Kalzip railings. The outputs of the Main Junction Boxes connected to the Power Conditioning Units (PCU) for converting the DC power into AC power and then export the solar energy into the grid through LT panel, Transformer and HT Panel. The PCUs automatically turn on and off successively sensing the availability of grid power and the solar irradiation varies over the day. PCUs convert the DC output of the photovoltaic arrays into the three phase AC power using reliable, high efficiency IGBT as the primary switching devices. The PCUs having all the necessary automatic synchronization equipments built inside to sync with grid and export the solar energy. The PCUs has the built in Isolation transformer to provide the galvanic isolation when solar array is grounded and it allow the inverter to match the voltage of utility grid. The specification sheet of the PCU considered is attached as annexure X The output of the PCUs connected to the LT panel trough suitable incoming breaker, measuring instruments, selector switches and mimic diagram. The output of LT interface panel connected by bus duct to the 0.415/11KV step up Transformer. The generation transformer shall be having all the required monitoring and protection equipments. The output of transformer connected to the fully draw out type HT panel and HT vacuum circuit breaker. HT panel is built with protective relays, auxiliary relays, control switches, indicating lamps, enunciators and mimic diagram. The output of the HT panel shall be connected to

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the utility grid point with required metering panel for grid export. All the equipments like solar array, Junction boxes, PCU, LT Panel, Transformer and HT panels are suitably earthed using copper earth pits. Earthing in general shall cover equipment earthing, system neutral earthing and static lightningprotection The computer aided data acquisition system provided to continuously monitor and record the various parameters of solar power plant both on DC and AC side. This data shall be saved in the local PC and same can be controlled from remotely through the telephone line. The data acquisition system shall measure and continuously recording of the following parameters o o o o o o o o o Control room temperature Ambient air temperature near Array field Module back surface temperature Wind speed at the level of Array Plane (V) Solar irradiation incidental to Array Plane Inverter Output System Frequency DC Bus Output Energy Delivered to the GRID in KWh Generated Output in KWhrs.

All data shall be recorded chronologically date wise. The data file shall be MS excel compatible. The data logger shall have internal reliable battery backup to record all sorts of data simultaneously round the clock. All data shall be stored in a common work sheet chronologically. All the data shall be represented in graphics mode or in tabulation mode in the computer screen.

8.2

SUITABILITY OF SPV POWER PLANT UNIT TO OPERATE IN PARALLEL WITH GRID It is important that the SPV power plant is designed to operate satisfactorily in parallel with the grid under extremely high voltage and frequency fluctuation conditions, so as to export the maximum possible units to the grid. It is also extremely important to safeguard the system during major disturbances, like tripping/pulling-out of big generating stations and sudden overloading during falling of portion of the grid loads on the power plant unit in island mode, under fault/feeder tripping conditions. The exportable power from the plant shall be evacuated by stepping-up the power from 415 V to 11 kV through a 415 V/ 11 kV, 1.25 MVA transformers. Trivector meter that will be provided in the plants control building or as per BRPLs requirement and will have main & checking arrangement, and these shall be 49

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agreed upon with the BRPL. The tariff meters shall register import as well as export parameters. 8.3 SAFETY REGULATIONS Statutory regulations on safety measures shall be strictly followed. Safety appliances, viz. fire extinguishers, sand buckets, earth rods, gloves, rubber mats, danger sign boards, safety regulation charts, etc. shall be procured and installed as per safety norms. Oil collection pits and soak pits for the transformers shall also be constructed. All cables in switchyard shall be neatly laid/ dressed and shall be barricaded inside trenches along the length with fire proof bricks. Suitable provisions shall be made for installing a fire hydrant system at the SPV Power Plant premises. The arrangement shall also include supply of uninterrupted water supply from the nearest fire hydrant point to the power plant area.

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Chapter - 9

DESIGN CRITERIA

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9.1

SOLAR PV MODULES PV modules considered are with minimum declared output of 230 Wp. Number of modules to be supplied shall be worked out accordingly. Stabilized output of the Solar PV Array for the Power Plant should not be less than 5.00 MWp under Standard Test Condition after one year of operation. Modules for Power Plant shall be made of mono crystalline silicon. The SPV Modules must be tested & certified by an independent international testing laboratory. The module frames shall be made of corrosion resistant material, which shall be electrically compatible with the structural material used for mounting the modules. The module shall be provided with a junction box with provision of external screw terminal connection and with arrangement for provision of by-pass diode. The box should have hinged, weatherproof lid with captive screws and cable gland entry points. MODULE MOUNTING STRUCTURE The structure shall be designed to allow easy replacement of any module. The structure shall be designed for simple mechanical and electrical installation. It shall support SPV modules at a given orientation, absorb and transfer the mechanical loads to the ground properly. The array structure shall be so designed that it will occupy minimum space without sacrificing the output from SPV panels; at the same time it will withstand severe cyclonic storm with wind speed up to maximum 200 km per hour. Nut and bolts and supporting structures including Module Mounting Structures shall have to be adequately protected with atmosphere and weather prevailing in the area. The legs of the structures with appropriate strength will be fixed on the rooftop, while designs due consideration will be given to weight of module assembly, maximum wind speed of 200 km per hour, without providing any harm to the rooftop BALANCE OF SYSTEMS

9.2

9.3

9.3.1 Junction Box The junction boxes shall be dust, vermin, and water-proof. The terminals will be connected to copper bus-bar arrangement of proper sizes to be provided. The junction boxes will have suitable cable entry points fitted with cable glands of appropriate sizes for both incoming and outgoing cables. Suitable markings shall be provided on the bus-bars for easy identification and cable ferrules will be fitted at the cable termination points for identification. Each Array Junction Box will have Suitable Reverse Blocking Diodes of 52

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maximum DC blocking voltage of 600 V with suitable arrangement for its connecting. The Array Junction Box will also have suitable surge protection. The Junction Boxes shall have suitable arrangement for the following: o Combine groups of modules into independent charging sub-arrays o Provide arrangement for disconnection for each of the groups o Provide a test point for each sub-group for quick fault location o To provide group array isolation o The current carrying rating of the Junction Boxes shall be suitable with adequate safety factor to inter connect the Solar PV array.

9.3.2 Power Cond iti oning Unit (PCU) wit h Sync hron iza tion Cir cuitry PCU should be having efficiency levels of 95% and above. Each inverter shall be with minimum capacity of 250kW. The output power factor of the PCU should be of suitable range to supply or sink reactive power. The PCU shall have internal protection arrangement against any sustained fault in feeder line and lightning in feeder circuit. The PCU should be three phase static solid state type power conditioning unit. Both AC & DC lines shall have suitable fuses and contactors to allow safe start up and shut down of the system. Fuses used in the DC circuit should be DC rated. The PCU shall have provision for input & output isolation. PCU shall have arrangement for adjusting DC input current and should trip against sustainable fault downstream and shall not start until the fault is rectified. PCU front panel shall be provided with display (LCD or equivalent) to monitor the following: o DC power input o DC input voltage o DC current o AC power output o AC voltage (all the 3 phases and line) o AC current (all the 3 phases and line) o Power factor Provision should be available in the PCU for Remote Monitoring of all the parameters mentioned under paragraph above and other important data.

9.4

LT POWER INTERFACING PANEL The Panel shall have adequate inputs to take in from individual PCUs and adequate outputs to individual transformers. The Panel shall be floor mounted type. All the measuring instruments such as voltmeter, ammeter, frequency meter, Electronic Energy Meter (for measuring the deliverable units for sale), selector switches, Mimic front panel will be 53

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9.5

COMPUTER AIDED DATA ACQUISITION SYSTEM Computer Aided Data Acquisition Unit shall have features for simultaneous monitoring and recording of various parameters of different sub-systems, power supply of the Power Plant at the DC side and AC side. The unit shall be a separate & individual system comprising of different transducers to read the different variable parameters, A/D converter, Multiplexer, Demultiplexer, Interfacing Hardware and Software. Reliable sensors for Solar Radiation, Temperature and other Electrical Parameters are to be supplied with the data logger unit. The data acquisition system shall perform the following operations, which include the measurement and continuous recording of: o Ambient Air Temperature near Array Field o Control Room Temperature o Module Back Surface Temperature o Wind Speed at the level of Array Plane o Solar Radiation incidental to Array Plane o Inverter Output o System Frequency o DC Bus output o Energy delivered to the GRID in kWh

All data shall be recorded chronologically date wise. The data file should be MS Excel compatible. The data logger shall have internal reliable battery backup to record all sorts of data simultaneously round the clock. All data shall be stored in a common work sheet chronologically. Representation of monitored data in graphics mode or in tabulation form. All instantaneous data can be shown in the Computer Screen Provision should be available for Remote Monitoring through GPS system.

9.6

LIGHTNING & OVER VOLTAGE PROTECTION The SPV Power plant should be provided with Lightning and over voltage protection. The main aim of over voltage protection is to reduce the over voltage to a tolerable level before it reaches the PV or other sub-system components. The source of over voltage can be lightning or other atmospheric disturbance. The Lightning Conductors shall be made as per applicable Indian Standards in order to protect the entire Array Yard from Lightning stroke. Necessary concrete foundation for holding the lightning conductor in position will

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maximum

wind

Each Lightning Conductor shall be fitted with individual earth pit as per required Standards including accessories, and providing masonry enclosure with cast iron cover plate having locking arrangement, watering pipe using charcoal or coke and salt as per required provisions of IS. Shall ensure adequate lightning protection to provide an acceptable degree of protection as per IS for the array yard. If necessary more numbers of Lightning conductors may be provided.

9.7

EARTHING SYSTEM

9.7.1 LT Side The earthing for array and LT power system shall be as required as per provisions of IS. Necessary provision shall be made for bolted isolating joints of each earthing pit for periodic checking of earth resistance. Each Array structure of the SPV Yard shall be grounded properly. The array structures are to be connected to earth pits as per IS standards. The earthing for the power plant equipment shall be made as per provisions of IS. Necessary provision shall be made for bolted isolating joints of each earthing pit for periodic checking of earth resistance. The complete earthing system shall be mechanically and electrically connected to provide independent return to earth. All three phase equipment shall have two distinct earth connections. An Earth Bus shall be provided inside the control room. For each earth pit, necessary Test Point shall have to be provided. In compliance to Rule 33 and 61 of Indian Electricity Rules, 1956 (as amended up to date), all non-current carrying metal parts shall be earthed with two separate and distinct earth continuity conductors to an efficient earth electrode.

9.7.2 HT Side The 11 KV side equipments and parts shall be earthed as required as per provisions of IS. 9.8 ENERGY METER

An Energy Meter shall be provided as approved by the Utility company to measure the delivered quantum of energy to the GRID for sale. Meter must be provided with the necessary data cables. 9.9 PROTECTIVE RELAYS

The SPV system and the associated power evacuation system shall be protected as per Indian Standards. Over Current Relays, Reverse Power Relays and Earth fault Relays are

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9.10

POWER EVACUATION ARRANGEMENT

9.10.1 415 Volts / 11 kV and 11 KV / 66 KV Transformers Adequate capacity Transformer/s shall be provided to step up the Voltage from 3 ph, 415 Volts, 50 Hz output of the PCUs to 11 kV level to be evacuated at PSE B grid. Transformers shall be of reputed make and should have relevant IS or international certifications. Transformers shall have all relevant monitoring and protection devices as per the relevant Indian Standards. The Transformer manufacturer shall provide Test Certificates carried out on the Transformers as per relevant IS standards.

9.10.2 Circuit Breakers and Other Isolators and Protective and Metering Arrangements Appropriate Circuit breakers and Isolators shall be provided as per the relevant Indian Standards and IE rules. The system shall be designed with appropriate CTs & PTs to have all relevant protection arrangements like Reverse Power, Over Current, Earth fault relays etc. In addition CTs and PTs shall also be provided for metering purposes as elsewhere specified.

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Chapter - 10

CONSTRUCTION MATERIAL REQUIREMENT, AVAILABILITY AND SUITABILITY

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10.1

MATERIALS The major items involved are: o o Solar PV Power Plant Power Evacuation System at Power Plant

10.1.1 Solar PV Power Plant The Power Plant consists of mainly SPV modules, PCUs and other balance of systems (BOS). One of the key decisions to be made here is on the technology of the SPV modules. Brief description of the technologies available and the respective merits and de-merits is given under Chapter 5. Monocrystalline module has been selected for the project.

10.1.2 Power Evacuation System at Power Plant The materials required here are of standard power evacuation hardware to be deployed for 1.00 MWp power evacuation. The main equipments under consideration are transformers (415 V / 11 kV), VCBs and Isolators in addition to instrument transformer (CTs and PTs) and metering arrangements. PROCUREMENT PROCESS

10.2

FED SOLAR w i l l float tender for selection of EPC contractor. 10.3 BILL OF MATERIALS

The following bill of materials is proposed for the SPV 5 MW Plant.


Sr. No. 1 2 3 4 6 Particulars 24 V, 280 Wp Mono Crystalline SPV Module 250 Module Mounting Structures 250 KW Inverter Array Junction Box 5 in 1 out Main Junction Box 5 in 1 out Unit EA Lot EA EA EA Quantity 18200

5
2 200

40

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7 8 9 10 11 12 13 14 15 16 17 18 19

1C 4sqmm PVC sheathed Cable 2C 10sqmm PVC sheathed Cable 2C 120sqmm PVC sheathed Cable 11KV ,400A outdoor Type GO switch, along with structure, DO fuse,11KV LA 11/0.433 kV, 1250 KVA Dry, Dyn 11, With Off Circuit Tap Changer (+/-5% in steps of 2.5%) Transformer tag No. TRF 1, 2) UPS System for charging battery 11 KV combined CT-PT unit with class 0.2,CTR 150/1A,PTR:11KV/11 0V,10VA 11 KV ,600A,50Hz,26.5KA for 1sec,Vacuum / SF6 type HV C.B. Switchgear floor mounting ,indoor type comprising protection as per SLD. Incoming switchgear panel with Line PT Outgoing Transformer feeder Bus PT 415V, 2000A, 3ph, TPN, 50Hz,50 KA for 1 sec, single front, drawout LT Panel DC SYSTEM Installation of 110 V DC supply system for Switchgear control complete with battery charger, Lead Acid Batteries, DCDB, and other accessories. The complete system will be located in Substation HT & Switchgear Cabling Cable trays, trench and accessories Lighting distribution board Array LA Earthing Kit GIStrip 6 spmm GI Wire SCADA system for monitoring

Lot Lot Lot Nos.

5
5 5 5

Nos. Nos. Nos. Nos.

5 5 5 5

Nos. Nos. Nos. Nos.

5 5 5 5

Lot Lot Lot Nos. EA Set M M Nos.

5 5 5 5 100 150 5000 12500 1

20 21 22 23 24 25 26 27

10.4

LIST OF SPARES

List of spares Reliance is providing along with above materials are as follows:
Sr. No. 1 2 3 4 6 7 Particulars 24 V, 280 Wp Mono Crystalline SPV Module 4 sqmm terminal blocks PCB boards for PCU Control Fuses Pilot Lights MCBs Unit Nos Nos Nos Nos Nos Nos Quantity 50 100

10 25
25

10

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Chapter - 11

CONSTRUCTION METHODOLOGY AND EQUIPMENT PLANNING

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11.1

OVERVIEW

This section of the report outlines the operation and maintenance philosophy to be adopted for the proposed grid connected SPV power plant. These broad outlines, given here, will provide useful guidelines for the basic and detailed engineering of the plant, so that all the requirements of the operation and maintenance of the plant are met and provided for in the engineering stage itself. The production of power from SPV plant is generally a static affair with no moving parts. The SPV array produces electricity by deploying SPV modules which are warrantied for 10 years on product workmanship, for 12 years on performance of power not less than 90 % of the nominal power and for 25 years on performance of power not less than 80 % of the nominal power. Once properly selected and installed these require no major maintenance. The DC power produced by the array is converted into AC power by a battery of PCUs which need some attention because of electronics involved. The AC output at 415 V level is stepped up 11 kV by a set of transformers. These transformers and associated switch gear need proper preventive maintenance. The most important aspect of the system which needs proper monitoring is the synchronizations which ensure the availability of power to the grid. Single Line Diagram of the project is attached as annexure XI 11.2 SYSTEM DESIGN PHILOSOPHY

The main O&M objective is the high availability and reliability of the plant. In order to achieve the main objective, the following principles would be adopted. Building up adequate capacity to ensure generation of power as per design estimates. This is done by applying liberal de-rating factors for the array and recognizing the efficiency parameters of PCUs, Transformers, Transmission lines, etc. o Providing redundancy to ensure at least 50% availability in case of major break downs of transformers. o Use of equipment and systems with proven design and performance that have a high availability track record under similar service conditions. o Selection of the equipment and adoption of a plant layout to ensure ease of maintenance. o Strict compliance with the approved and proven quality assurance norms and procedures during the different phases of the project. o The basic and detailed engineering of the plant will aim at achieving high standards of operational performance especially with respect to the following key parameters: o Optimum availability of modules during the day time o Ensuring module layout to prevent shading o High DC system voltage and low current handling requirements o Selection of PCUs with high track record

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o Selection of transformers with low maintenance requirements

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The plant instrumentation and control system should be designed to ensure high availability and reliability of the plant to assist the operators in the safe and efficient operation of the plant. It should also provide for the analysis of the historical data and help in the plant maintenance people to take up the plant and equipment on preventive maintenance. 11.3 OPERATION REQUIREMENTS

The operation of the plant starts with the commissioning. In broad terms commissioning can be defined as setting up of the plant to work safely and on program. It is necessary to ensure that all equipment is completely erected before operations begin. Although this may be considered difficult, the other extreme of operating a plant with insufficient instrumentation, controls, and alarms is very dangerous. Although some compromise can be made with regard to plant completion, the commissioning procedures should never compromise personnel and the system safety. A proper checklist procedure must be drawn up, which would include all the sections of the plant and shall take into account the contractual responsibilities, the technological relationship between the various sections, pre-commissioning, cleaning requirements, etc. The checklists procedure helps in the following: o o o o To ensure that the necessary checks are carried out on each item of the plant before it is put into commercial service To ensure that energy is supplied to grid when it is safe to do so To facilitate the recording of the progress on the various commissioning activities To provide a basis for the plant history

The operation of the power plant unit interconnected to the grid is an activity that must be properly coordinated, within the plant as well as with the grid to which the plant feeds power. Operation in parallel with the grid eventually makes the SPV power plant a part of the PS EB s utility system and hence the power plant must assume some of the same responsibilities of PS EB . With this, the PS EB s local dispatch center will need to monitor the incoming power from the SPV power plant on a continuous basis. An important feature of the modern power generating plant is the automatic safety lock-out devices. While sufficient thought goes into it at the design stage, it remains the responsibility of the operating staff to ensure that the safety devices are set correctly and kept in operation. While safety of the plant and personnel is the foremost importance in the operation, the efficient operation of the plant cannot be ignored. While operating, it is important to check the essential parameters of the plant and equipment to ensure that the plant performance is at the optimum level. Any variations in the operating parameters or any deviations from normal performance of the equipment or plant shall have to be analyzed immediately to diagnose the problem and to take

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remedial measures to bring back the plant and equipment to its original parameters.

The plant operator should follow the guidelines given below: o o Frequent checking and calibration of instruments; Developing a habit of cross checking instrument indications with each other to determine whether the instrument is faulty or there is an abnormal operating condition; And developing a habit of analyzing indicated data to determine accurately what could be wrong.

11.3.1 Evacuation of power generated by the SPV power plant It is important to recognize that: o o Generation voltage of 415 V has to be stepped up to 11 kV at the high voltage side of the transformer to match the grid voltage at the point of interconnection. The power plant has to operate in parallel with the grid system which is a vast power carrier. The power plant has to protect its equipment against possible faults or other disturbances from the grid. MAINTENANCE REQUIREMENTS

11.4

Regular maintenance of the SPV Power Plants (5.00 MWp grid connected with associated power evacuation system) for a period ten years after commissioning as and when necessary and submission of daily performance data of the power plant. The contractor shall keep a Record Book in this respect clearly indicating date of checking & comments for action etc. Normal and preventive maintenance of the Power Plant such as cleaning of module surface, tightening of all electrical connections, Line accessories, Transformers and associated switch gear on the HT side. Cleaning of the Power Plant including array Yard/Shed on regular basis and as and when required. Keeping & recording daily log sheet as per approved format for the Power Plant as per format to be supplied after commissioning of the Power Plant. Operation of the Power Plant is in accordance with the availability of Solar Energy and feeding to the grid. Under no circumstances, the operator shall run the power plant damaging the substation grid. Contractor's employees shall use no part of the power residential or any other purpose except for running the plant. plant building for

The supplier shall submit monthly Performance report of SPV Power Plant indicating cumulative energy generation data as per approved format within 15 days of the following month. The supplier shall preserve all recorded data in either manually or through computer and shall submit to PSEB quarterly.

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11.5

PREVENTIVE MAINTENANCE (SPECIFIC GUIDELINES)

This shall be done by the Supplier regularly and shall include activities such as cleaning and checking the health of the SPV system, cleaning of module surface, tightening of all electrical connections, and any other activity that may be required for proper functioning of the SPV system as a whole. Necessary maintenance activities, Preventive and Routine for Transformers and associated switch gears also shall be included. Performing routine and non-routine maintenance on the solar facility during and after the EPC warranty period; Operating the solar facility: o Providing all materials and services necessary for solar facility maintenance; o Monitoring the operations of the Project via the computer monitoring system; o Performing all duties to the standard mandated by the PPA; o Complying with all regulatory obligations; o Developing operating and safety plans; o Maintaining all Project information and facility data, including providing reports to the Company. Solar photovoltaic systems are highly reliable and require minimal maintenance. Several maintenance activities need to be completed at regular intervals during the lifetime of the system

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Table 8 shown below is a list of key activities planned for preventive maintenance in this project.
Table 8: Key activities planned for preventive maintenance
Semi Annually Every 10 Years

Activity Check solar Display as compared with solar insolation Cleaning of Module b y water spraying for removal of dust deposited Review array output, current and voltage to verify power operation Watch for Shadin g by trees, weeds, other obstructions Inspect the PV array surface for excessive dirt or debris (bird dro pping, leaves, etc.) Inspect the PV modules for crack/damage Inspect the PV modules for discoloration/clo udiness Inspect the entire system for loose of damaged wiring Inspect inverter and clean any filters or vents to ensure unrestricted airflow Repair Inverter

Cont inuou s

Annually

Maintenance Action Remote monitoring System with critical alarms based on compari ng sets of data Visual inspection regularl y. Cleaning on monthl y basis or as and when required More Substantial, on-site check in a random pattern to verify computer output Particularly for gr ound-mounted system, vegetation growth can vary from year to year If rainfall is not expected to remo ve any accumulation, the surface will be cleaned wi th a gentle rinse with plain water or mild deterg ent Preventive maintenance check Preventive maintenance check Preventive maintenance check, easy to repair on site Preventive maintenance check, easy to repair on site Budgeted to have more overhauls once every 10 years

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Chapter - 12

CONSTRUCTION PROGRAMME AND SCHEDULE

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12.1

The most essential aspect regarding the implementation of this SPV power project is to ensure the project completion within the schedule, spanning for seven months from the commencement date. A good planning and monitoring methodology is essential to complete the project on time. It is expected that the project execution will take at least 4 months from commencement to commissioning of SPV power plant.

12.1.1 Essential Functions of the Project The overall project activities for the SPV power plant divided into sub packages as given below. The split of supplies is as follows: o Supply, erection, installation and commissioning of lightning arrestors. o Supply, erection, installation of SPV modules on structures. Supply, erection, installation and testing of PCUs. Interconnection of equipments and commissioning of the power plant (deliver 3 Ph, 415 V AC supply and combining the outputs of 20 nos. of PCUs). Completion of earthing system before commissioning. Supply, installation and commissioning of data monitoring system. o Supply, erection, installation, interconnection and commissioning of power evacuation system consisting of isolators, circuit breakers, transformers and transmission line along with commissioning of metering and protection system. o Actualize grid feed-in by synchronizing SPV power supply with 11 kV PS EB grid supply. o Acceptance test of metering system and energy sale. PROJECT EXECUTION The execution will be planned, monitored and controlled through project management techniques employing MS-Project (PERT CPM Charts). A provisional time line of the project is given in annexure XII. PROGRESS REPORTING Progress reviewing and monitoring will be done by the Project Manager and periodic reports highlighting the activities completed, areas of concern, and corrective actions taken, etc., will be sent to PWD on regular basis.

12.2

12.3

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Chapter - 13

PROJECT ORGANIZATION

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13.1

STAFF Depending on the O&M requirements the firm will make necessary arrangements for proper implementation of O&M. This will be through direct presence of the firms staff or through their local technology partners. Typically, the power plant will be under the charge of an engineer supported by adequate staff for security and O&M. Exact origination structure and the number of staff will depend on the site conditions which will be assessed during the implementation of the project. TRAINING During the commissioning of the plant, training will be imparted to the Engineer, Supervisor and Operators. This operational training shall cover the following: o o o o The nature, purpose and limitations of all plant and equipment The detailed operating instructions on each section and equipment of the plant Normal startup and shutdown program for the plant The emergency procedures and all related HSE issues according to the standards

13.2

The basis for the training shall be the plants O&M manual.

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Chapter - 14

ENVIRONMENTAL AND ECOLOGICAL ASPECTS

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14.1

ENVIRONMENTAL IMPACT It is well recognized that, for sustainable development and optimal use of natural resources, environmental considerations are required to be integrated in planning, designing and implementation of development projects. The envisaged benefits from development projects can be fully realized only if they are environmentally sustainable and socially sound. The environmental impacts can be categorized as either Primary impacts are those that are attributed directly by impacts are those which are indirectly induced and associated investment and changed patterns of social and the proposed action. primary or secondary. the project, secondary typically include the economic activities by

The proposed solar power project would create an impact on the environment in two distinct phases: o During the construction phase and o During the operation phase which would have long term effects.

14.2

IMPACTS DURING CONSTRUCTION

The impacts envisaged during the construction of the proposed plant are: Impact on Soil o There is no negative effect of the proposed project on the soil, since the project is installed at rooftop.

Impact on Terrestrial Ecology o There is no negative effect of the proposed project on the terrestrial ecology of the area.

Impact on Aquatic Ecology o site. Hence no impact is envisaged in the construction phase on the aquatic ecology of the area. Demography and Socio Economics o The establishment of the project will prove beneficial to the population neighboring the site. There will be a marginal increase in the employment of some persons living nearby both at the time of construction as well as during operation. There is no tank, lake, river or surface water body very close to the project

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Traffic and Traffic Hazards for Access Roads o During construction phase, the construction material, equipment & machinery and labour will be transported to the site and this will increase the volume of traffic on access roads. However this effect will not be very significant in view of the fact that the construction activities is already in progress for the development of Stadium and will be spread over a period of 4 months. The impacts during the construction phase are regarded as temporary or short term and hence do not have an everlasting affect on the soil, air, noise or water quality of the area. The impact from the construction phase is not envisaged to be serious.

o o

14.3

IMPACTS DURING OPERATION The operational phase will involve power generation using solar energy. The following activities in relation to the operational phase will have varying impact on the environment and are considered for impact prediction.

Impact on Air Quality o The existing status of the ambient air quality of the area will not be affected by the project. As all Renewable Energy projects are environment friendly.

Noise o Solar Power projects are noise free during operation.

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Chapter - 15

COST ESTIMATE

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15.1

PROJECT COSTING The costing details for the project includes the cost of the following major elements o Civil, Electrical & Mechanical Work o Solar PV Power Plant o Power Evacuation System o Consultancy fees o Contingencies o Interest during Construction

The actual cost for the system as quoted by M/s S U N E n e r g y E u r o p e has been considered for the financial analysis. Cost break up of the project is given below in Table 9.
Parti culars Land Cost Civil and Gener al Works PV Modules Mount ing Structures Power Condi tioning Unit Evacuation Cost upto Inter -connection Point Preliminar y and Pre -Opera tive Expenses Total Capit al Cost Capital Cost Norm for Solar PV project

S No 1 2 3 4 5 6 7 8

0.75 4.50 50.95 5.00 10.00 40.25 9.05 84.50

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Chapter - 16

FINANCIAL AND ECONOMIC EVALUATION

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16.1

FINANCIAL ANALYSIS ASSUMPTIONS The project under study envisages installation of 5 .00 MWp Grid Interactive Solar Photovoltaic power plant at G u r d a s p u r , P A N J A B . The viability of the project is based on the generation of the energy, which has been obtained from RET screen International Clean Energy Project Analysis Software results which on back end consider past twenty two years of average solar radiation data available at NASA website for the project site location. Average annual generation is estimated as 8 . 3 3 M U considering mono crystalline modules for first year and every next year with the degradation of 0.5%. Levellised tariff for the project is calculated at discounting factor of 16.6% as provided by CERC for solar PV power projects. The debt equity ratio considered is 70:30 for the funding of the project. Return on equity is considered as 19 % for first 10 years and 24 % for next 11 to th 25 years. The fund required from the government for the project is expected to be repaid within a period of 10 years after construction period of 1 2 months. Term loan is st proposed to be repaid in 36 equal quarterly installments, considering 1 year as moratorium period. Interest rate for term loan is considered as 1 2 .5 % per annum and sensitivity analysis has been done for the interest rate of 10 % and 14 %. The total life of the project is considered as 25 years. Depreciation has been worked out as per CERC guidelines after having 10 % salvage value.
th

The CDM benefits available would certainly improve the financials of the project. It is a clear benefit of the project, which is strengthening the repayment capacity as well other financial parameters. It is estimated that about 768 9 tonnes of CO 2 emission is reduced (i.e. 7689 CER is generated). Grid Emission factor for Northern Grid is 0.923. CER revenue is being considered as per the existing KYOTO Protocol. CERs selling rate considered as 12 Euro per CER and foreign exchange rate as Rs 65 per Euro as per the current scenario. Estimated Revenue generation is Rs 55. 36 Lacs per annum.

Detailed Project Report 5.00 MW Solar Power 16.2 PROJECT FINANCIALS

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Levelized tariff is worked out as Rs 17.41 / kWh. This tariff is considered for 25 years in financial analysis.

ANNEXURES

Detailed Project Report 5.00 MW Solar Power

CORPORATE KNOWLEDGE PARTNERS

Annexure - I

JAWAHARLAL NEHRU NATIONAL SOLAR MISSION

Jawaharlal Nehru National Solar Mission


Towards Building SOLAR INDIA

1. Introduction The National Solar Mission is a major initiative of the Government of India and State Governments to promote ecologically sustainable growth while addressing Indias energy security challenge. It will also constitute a major contribution by India to the global effort to meet the challenges of climate change. In launching Indias National Action Plan on Climate Change on June 30, 2008, the Prime Minister of India, Dr. Manmohan Singh stated: Our vision is to make Indias economic development energy-efficient. Over a period of time, we must pioneer a graduated shift from economic activity based on fossil fuels to one based on non-fossil fuels and from reliance on non-renewable and depleting sources of energy to renewable sources of energy. In this strategy, the sun occupies centre-stage, as it should, being literally the original source of all energy. We will pool our scientific, technical and managerial talents, with sufficient financial resources, to develop solar energy as a source of abundant energy to power our economy and to transform the lives of our people. Our success in this endeavour will change the face of India. It would also enable India to help change the destinies of people around the world. The National Action Plan on Climate Change also points out: India is a tropical country, where sunshine is available for longer hours per day and in great intensity. Solar energy, therefore, has great potential as future energy source. It also has the advantage of permitting the decentralized distribution of energy, thereby empowering people at the grassroots level. Based on this vision a National Solar Mission is being launched under the brand name Solar India.

2. Importance and relevance of solar energy for India 1. Cost: Solar is currently high on absolute costs compared to other sources of power such as coal. The objective of the Solar Mission is to create conditions, through rapid scale-up of capacity and technological innovation to drive down costs towards grid parity. The Mission anticipates achieving grid parity by 2022 and parity with coal-based thermal power by 2030, but recognizes that this cost trajectory will depend upon the scale of global deployment and technology development and transfer. The cost projections vary from 22% for every doubling of capacity to a reduction of only 60% with global deployment increasing 16 times the current level. The Mission

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recognizes that there are a number of off-grid solar applications particularly for meeting rural energy needs, which are already cost-effective and provides for their rapid expansion. 2. Scalability: India is endowed with vast solar energy potential. About 5,000 trillion kWh per year energy is incident over Indias land area with most parts receiving 4-7 kWh per sq. m per day. Hence both technology routes for conversion of solar radiation into heat and electricity, namely, solar thermal and solar photovoltaics, can effectively be harnessed providing huge scalability for solar in India. Solar also provides the ability to generate power on a distributed basis and enables rapid capacity addition with short lead times. Off-grid decentralized and low-temperature applications will be advantageous from a rural electrification perspective and meeting other energy needs for power and heating and cooling in both rural and urban areas. The constraint on scalability will be the availability of space, since in all current applications, solar power is space intensive. In addition, without effective storage, solar power is characterized by a high degree of variability. In India, this would be particularly true in the monsoon season. 3. Environmental impact: Solar energy is environmentally friendly as it has zero emissions while generating electricity or heat. 4. Security of source: From an energy security perspective, solar is the most secure of all sources, since it is abundantly available. Theoretically, a small fraction of the total incident solar energy (if captured effectively) can meet the entire countrys power requirements. It is also clear that given the large proportion of poor and energy un-served population in the country, every effort needs to be made to exploit the relatively abundant sources of energy available to the country. While, today, domestic coal based power generation is the cheapest electricity source, future scenarios suggest that this could well change. Already, faced with crippling electricity shortages, price of electricity traded internally, touched Rs 7 per unit for base loads and around Rs 8.50 per unit during peak periods. The situation will also change, as the country moves towards imported coal to meet its energy demand. The price of power will have to factor in the availability of coal in international markets and the cost of developing import infrastructure. It is also evident that as the cost of environmental degradation is factored into the mining of coal, as it must, the price of this raw material will increase. In the situation of energy shortages, the country is increasing the use of diesel-based electricity, which is both expensive costs as high as Rs 15 per unit - and polluting. It is in this situation the solar imperative is both urgent and feasible to enable the country to meet long-term energy needs. 3. Objectives and Targets The objective of the National Solar Mission is to establish India as a global leader in solar energy, by creating the policy conditions for its diffusion across the country as quickly as possible.

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The Mission will adopt a 3-phase approach, spanning the remaining period of the th th 11 Plan and first year of the 12 Plan (up to 2012-13) as Phase 1, the remaining 4 th th years of the 12 Plan (2013-17) as Phase 2 and the 13 Plan (2017-22) as Phase 3. At the end of each plan, and mid-term during the 12th and 13 th Plans, there will be an evaluation of progress, review of capacity and targets for subsequent phases, based on emerging cost and technology trends, both domestic and global. The aim would be to protect Government from subsidy exposure in case expected cost reduction does not materialize or is more rapid than expected. The immediate aim of the Mission is to focus on setting up an enabling environment for solar technology penetration in the country both at a centralized and decentralized level. The first phase (up to 2013) will focus on capturing of the lowhanging options in solar thermal; on promoting off-grid systems to serve populations without access to commercial energy and modest capacity addition in grid-based systems. In the second phase, after taking into account the experience of the initial years, capacity will be aggressively ramped up to create conditions for up scaled and competitive solar energy penetration in the country. To achieve this, the Mission targets are: To create an enabling policy framework for the deployment of 20,000 MW of solar power by 2022. To ramp up capacity of grid-connected solar power generation to 1000 MW within three years by 2013; an additional 3000 MW by 2017 through the mandatory use of the renewable purchase obligation by utilities backed with a preferential tariff. This capacity can be more than doubled reaching 10,000MW installed power by 2017 or more, based on the enhanced and enabled international finance and technology transfer. The ambitious target for 2022 of 20,000 MW or more, will be dependent on the learning of the first two phases, which if successful, could lead to conditions of grid-competitive solar power. The transition could be appropriately up scaled, based on availability of international finance and technology. To create favourable conditions for solar manufacturing capability, particularly solar thermal for indigenous production and market leadership. To promote programmes for off grid applications, reaching 1000 MW by 2017 and 2000 MW by 2022 . To achieve 15 million sq. meters solar thermal collector area by 2017 and 20 million by 2022. To deploy 20 million solar lighting systems for rural areas by 2022.

4. Mission strategy (phase 1 and 2) The first phase will announce the broad policy frame work to achieve the objectives of the National Solar Mission by 2022. The policy announcement will create the necessary environment to attract industry and project developers to invest in research, domestic manufacturing and development of solar power generation and thus create the critical mass for a domestic solar industry. The Mission will work closely with State Governments, Regulators, Power utilities and Local Self Government bodies to ensure that the activities and policy framework being laid out

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can be implemented effectively. Since some State Governments have already announced initiatives on solar, the Mission will draw up a suitable transition framework to enable an early and aggressive start-up. A. Utility connected applications: constructing the solar grid The key driver for promoting solar power would be through a Renewable Purchase Obligation (RPO) mandated for power utilities, with a specific solar component. This will drive utility scale power generation, whether solar PV or solar thermal. The Solar Purchase Obligation will be gradually increased while the tariff fixed for Solar power purchase will decline over time. B. The below 80C challenge solar collectors The Mission in its first two phases will promote solar heating systems, which are already using proven technology and are commercially viable. The Mission is setting an ambitious target for ensuring that applications, domestic and industrial, below 80 C are solarised. The key strategy of the Mission will be to make necessary policy changes to meet this objective: Firstly, make solar heaters mandatory, through building byelaws and incorporation in the National Building Code, Secondly, ensure the introduction of effective mechanisms for certification and rating of manufacturers of solar thermal applications, Thirdly, facilitate measurement and promotion of these individual devices through local agencies and power utilities, and Fourthly, support the upgrading of technologies and manufacturing capacities through soft loans, to achieve higher efficiencies and further cost reduction.

C. The off-grid opportunity - lighting homes of the power- deprived poor: A key opportunity for solar power lies in decentralized and off-grid applications. In remote and far-flung areas where grid penetration is neither feasible nor cost effective, solar energy applications are cost-effective. They ensure that people with no access, currently, to light and power, move directly to solar, leap-frogging the fossil fuel trajectory of growth. The key problem is to find the optimum financial strategy to pay for the high-end initial costs in these applications through appropriate Government support . Currently, market based and even micro-credit based schemes have achieved only limited penetration in this segment. The Government has promoted the use of decentralized applications through financial incentives and promotional schemes. While the Solar Mission has set a target of 1000 MW by 2017, which may appear small, but its reach will add up to bringing changes in millions of households . The strategy will be learn from and innovate on existing schemes to improve effectiveness. The Mission plans to: Provide solar lighting systems under the ongoing remote village electrification programme of MNRE to cover about 10,000 villages and hamlets. The use of

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solar lights for lighting purposes would be promoted in settlements without access to grid electricity and since most of these settlements are remote tribal settlements, 90% subsidy is provided. The subsidy and the demand so generated would be leveraged to achieve indigenization as well as lowering of prices through the scale effect. For other villages which are connected to grid , solar lights would be promoted through market mode by enabling banks to offer low cost credit. Set up stand alone rural solar power plants in special category States and remote and difficult areas such as Lakshadweep, Andaman & Nicobar Islands, Ladakh region of J&K. Border areas would also be included.

Promotion of other off grid solar applications would also be encouraged. This would include hybrid systems to meet power, heating and cooling energy requirements currently being met by use of diesel and other fossil fuels. These devices would still require interventions to bring down costs but the key challenge would be to provide an enabling framework and support for entrepreneurs to develop markets. Solar energy to power computers to assist learning in schools and hostels, Management Information System (MIS) to assist better management of forests in MP, powering milk chilling plants in Gujarat, empowering women Self Help Groups (SHGs) involved in tussar reeling in Jharkhand, cold chain management for Primary Health Centres (PHCs) are some examples of new areas, being tried successfully in the country. The Mission would consider up to 30 per cent capital subsidy (which would progressively decline over time) for promoting such innovative applications of solar energy and would structure a non-distorting framework to support entrepreneurship, up-scaling and innovation. In order to create a sustained interest within the banking community, it is proposed to provide a soft re-finance facility through Indian Renewable Energy Development Agency (IREDA) for which Government will provide budgetary support. IREDA would in turn provide refinance to NBFCs & banks with the condition that it is on-lend to the consumer at rates of interest not more than 5 per cent. The Mission would provide an annual tranche for the purpose which would be used for refinance operations for a period of ten years at the end of which the funds shall stand transferred to IREDA as capital and revenue grants for on-lending to future renewable energy projects. D. Manufacturing capabilities: innovate, expand and disseminate Currently, the bulk of Indias Solar PV industry is dependent on imports of critical raw materials and components including silicon wafers. Transforming India into a solar energy hub would include a leadership role in low-cost, high quality solar manufacturing, including balance of system components. Proactive implementation of Special Incentive Package (SIPs) policy, to promote PV manufacturing plants, including domestic manufacture of silicon material, would be necessary. Indigenous manufacturing of low temperature solar collectors is already available; however, manufacturing capacities for advanced solar collectors for low temperature and concentrating solar collectors and their components for medium and high

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temperature applications need to be built. An incentive package, similar to SIPS, could be considered for setting up manufacturing plants for solar thermal systems/ devices and components. The SME sector forms the backbone for manufacture of various components and systems for solar systems. It would be supported through soft loans for expansion of facilities, technology upgradation and working capital. IREDA would provide this support through refinance operations. It should be ensured that transfer of technology is built into Government and private procurement from foreign sources. E. R&D for Solar India: creating conditions for research and application A major R&D initiative to focus: firstly, on improvement of efficiencies in existing materials, devices and applications and on reducing costs of balance of systems, establishing new applications by addressing issues related to integration and optimization; secondly, on developing cost-effective storage technologies which would address both variability and storage constraints, and on targeting spaceintensity through the use of better concentrators, application of nano-technology and use of better and improved materials. The Mission will be technology neutral, allowing technological innovation and market conditions to determine technology winners. A Solar Research Council will be set up to oversee the strategy, taking into account ongoing projects, availability of research capabilities and resources and possibilities of international collaboration. An ambitious human resource development programme, across the skill-chain, will be established to support an expanding and large-scale solar energy programme, both for applied and R&D sectors. In Phase I, at least 1000 young scientists and engineers would be incentivized to get trained on different solar energy technologies as a part of the Missions long-term R&D and HRD plan. Pilot demonstration projects would be closely aligned with the Missions R & D priorities and designed to promote technology development and cost reduction. The Mission, therefore, envisages the setting up of the following demonstration projects in Phase I, in addition to those already initiated by MNRE and those, which may be set up by corporate investors: 1. 50-100 MW Solar thermal plant with 4-6 hours storage (which can meet both morning and evening peak loads and double plant load factor up to 40%). A 100-MW capacity parabolic trough technology based solar thermal plant. A 100-150 MW Solar hybrid plant with coal, gas or bio-mass to address variability and space-constraints.

2.

3.

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4.

20-50 MW solar plants with/without storage, based on central receiver technology with molten salt/steam as the working fluid and other emerging technologies. Grid-connected rooftops PV systems on selected government buildings and installations, with net metering. Solar-based space-cooling and refrigeration systems to meet daytime and summer season peak load. These could be installed on selected government buildings and installations.

5.

6.

The configurations and capacities as mentioned above are indicative and would be firmed up after consultations with various stakeholders. Bidding process will be adopted to set up solar power demonstration plants which would help in better price discovery for determining tariff for solar power. It will be ensured that indigenous content is maximized. The bid documents will also include a technology transfer th clause. It is expected that these plants will be commissioned in the 12 plan period.

5. Proposed Roadmap

The aspiration is to ensure large-scale deployment of solar generated power for gridconnected as well as distributed and decentralized off-grid provision of commercial energy services. The deployment across the application segments is envisaged as follows: S. No. 1. 2. 3. Application segment Target for Phase I (201013) 7 million sq meters 200 MW 1,000-2000 MW Target for Phase 2 (2013-17) 15 million sq meters 1000 MW 4000-10,000 MW Target for Phase 3 (2017-22) 20 million sq meters 2000 MW 20000 MW

Solar collectors Off grid solar applications Utility grid power, including roof top

6. Policy and regulatory framework The objective of the Mission is to create a policy and regulatory environment which provides a predictable incentive structure that enables rapid and large-scale capital investment in solar energy applications and encourages technical innovation and lowering of costs. Although in the long run, the Mission would seek to establish a sector-specific legal and regulatory framework for the development of solar power, in the shorter time frame, it would be necessary to embed the activities of the Mission within the existing framework of the Electricity Act 2003. The Electricity Act already provides a role for

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renewables but given the magnitude and importance of the activities under the Mission, it would be necessary to make specific amendments. The National Tariff Policy 2006 mandates the State Electricity Regulatory Commissions (SERC) to fix a minimum percentage of energy purchase from renewable sources of energy taking into account availability of such resources in the region and its impact on retail tariff. National Tariff Policy, 2006 would be modified to mandate that the State electricity regulators fix a percentage for purchase of solar power. The solar power purchase obligation for States may start with 0.25% in the phase I and to go up to 3% by 2022. This could be complemented with a solar specific Renewable Energy Certificate (REC) mechanism to allow utilities and solar power generation companies to buy and sell certificates to meet their solar power purchase obligations. The Central Electricity Regulatory Commission has recently issued guidelines for fixing feed-in-tariff for purchase of Solar power taking into account current cost and technology trends. These will be revised on an annual basis. The CERC has also stipulated that Power Purchase Agreement that utilities will conclude with Solar power promoters, should be for a period of 25 years. In order to enable the early launch of Solar India and encourage rapid scale up, a scheme is being introduced in cooperation with the Ministry of Power, the NTPC and the Central Electricity Authority, which would simplify the off-take of solar power and minimize the financial burden on Government. Many investors are willing to set up solar based power plants. However, sale of power by the IPPs may be an issue due to the high cost of power and realization of tariff for the same from the distribution companies. In order to incentivise setting up of a large number of Solar Power Projects, while minimizing the impact on tariff various alternatives were explored. One of the options is to bundle solar power along with power out of the cheaper unallocated quota of Central stations and selling this bundled power to state distribution utilities at the CERC regulated price. This will bring down the gap between average cost of power and sale price of power. For the purpose of bundling, power has to be purchased by an entity and re-sold to the state power distribution utilities. Such function can be done only by a trading company/Discoms, as per the existing statutory provisions. NTPC has a wholly owned subsidiary company engaged in the business of trading of power NTPC Vidyut Vyapar Nigam Ltd. (NVVN). NVVN will be designated as nodal agency by the Ministry of Power (MoP) for entering into a Power Purchase Agreement (PPA) with Solar Power Developers. The PPAs shall be signed with the developers who will be setting up Solar Projects within next three years (i.e. upto March 2013) and are connected to the grid at 33 KV level and above. The PPAs will be valid for a period of 25 years. For each MW of solar power installed capacity for which PPA is signed by NVVN, MOP shall allocate to NVVN an equivalent amount of MW capacity from the unallocated quota of NTPC stations. NVVN will bundle this power and sell this bundled power at a rate fixed as per CERC regulations. In case of significant price movement in the market rate, the Government will review the situation.

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When NVVN supplies the bundled power to distribution utilities, those distribution utilities will be entitled to use part of the bundled power to meet their RPO, as determined by the regulatory authorities. The CERC may issue appropriate guidelines in this regard. At the end of the first phase, well-performing utilities with proven financial credentials and demonstrated willingness to absorb solar power, shall be included in the Scheme, in case it is decided to extend it into Phase II. The requirement of phased indigenization would be specified while seeking development of solar power projects under this scheme. The size of each project would to determined so as to make phased indigenization feasible. The tariff and tax regime for key components and segments would be suitably fine tuned so as to promote the process of indigenization. The Mission will encourage rooftop solar PV and other small solar power plants, connected to LT/11 KV grid, to replace conventional power and diesel-based generators. Operators of solar PV rooftop devices will also be eligible to receive the feed-in tariff fixed by the CERC, both on the solar power consumed by the operator and the solar power fed into the grid. Utilities will debit/credit the operator for the net saving on conventional power consumed and the solar power fed into the grid, as applicable. A Generation Based Incentive will be payable to the utility to cover the difference between the solar tariff determined by CERC, less the base price of Rs. 5.50/kWh with 3% p.a. escalation. The metering and billing arrangements between the utility and the rooftop PV operator, will be as per guidelines/regulations of the appropriate commission. State Governments would also be encouraged to promote and establish solar generation Parks with dedicated infrastructure for setting up utility scale plants to ensure ease of capacity creation. Fiscal incentives It is also recommended that custom duties and excise duties concessions/ exemptions be made available on specific capital equipment, critical materials , components and project imports. Solar Manufacturing in India One of the Mission objectives is to take a global leadership role in solar manufacturing (across the value chain) of leading edge solar technologies and target a 4-5 GW equivalent of installed capacity by 2020, including setting up of dedicated manufacturing capacities for poly silicon material to annually make about 2 GW capacity of solar cells. India already has PV module manufacturing capacity of about 700 MW, which is expected to increase in the next few years. The present indigenous capacity to manufacture silicon material is very low, however, some plants are likely to be set up soon in public and private sector. Currently, there is no indigenous capacity/capability for solar thermal power projects; therefore new

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facilities will be required to manufacture concentrator collectors, receivers and other components to meet the demand for solar thermal power plants. To achieve the installed capacity target, the Mission recommends the following: Local demand creation: The 20 GW plan supported with right level of incentives for solar generation coupled with large government pilot/demonstration programs will make the Indian market attractive for solar manufacturers Financing & Incentives: SEZ like incentives to be provided to the manufacturing parks which may include: o o o Zero import duty on capital equipment, raw materials and excise duty exemption Low interest rate loans, priority sector lending Incentives under Special Incentive Package (SIPs) policy to set up integrated manufacturing plants; (i) from poly silicon material to solar modules; and (ii) thin film based module manufacturing plants. . Under the SIP scheme of the Department of Information Technology, there are 15 applications in the domain of solar photovoltaic, which includes cell manufacturing, (both crystalline and thin film) and poly-silicon manufacturing among others. The combined capacity projected by these 15 companies could result in the production of 8-10 GW solar power by the year 2022 which would be sufficient for meeting the Mission targets even after accounting for exports. It is also recommended that solar components be covered under the Bureau of Energy Efficiencys star rating programme to ensure high standards.

Similar incentives will be required for manufacture of CSP systems and their components. A Committee may be set up to formulate a policy for promotion of solar thermal manufacture in the country. Ease of doing business: In consultation with States, create a single window clearance mechanism for all related permissions. Infrastructure & ecosystem enablers: Create 2-3 large solar manufacturing tech parks consisting of manufacturing units (across the solar value chain), housing, offices, and research institutes. These will have 24x7 power and water supply and will likely need to be located near large urban centres with good linkages to ports and airports to ensure rapid access to imported raw materials and high quality engineering talent.

7. Research and Development

This Mission will launch a major R&D programme in Solar Energy, which will focus on improving efficiency in existing applications, reducing costs of Balance of Systems, testing hybrid co-generation and addressing constraints of variability, space-intensity and lack of convenient and cost-effective storage.

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The R&D strategy would comprise dealing with five categories viz. i) Basic research having long term perspective for the development of innovative and new materials, processes and applications, ii) Applied research aimed at improvement of the existing processes, materials and the technology for enhanced performance, durability and cost competitiveness of the systems/ devices, iii) Technology validation and demonstration projects aimed at field evaluation of different configurations including hybrids with conventional power systems for obtaining feedback on the performance, operability and costs, iv) development of R&D infrastructure in PPP mode, and v) support for incubation and start ups.

To support the R&D Strategy, the Mission may include the following: Setting up a high level Research Council comprising eminent scientists, technical experts and representatives from academic and research institutions, industry, Government and Civil Society to guide the overall technology development strategy. TheCouncil may invite eminent international experts in the field to support its work. The Council will review and update the technology roadmap to achieve more rapid technological innovation and cost reduction. A National Centre of Excellence (NCE) shall be established to implement the technology development plan formulated by the Research Council and serve as its Secretariat. It will coordinate the work of various R&D centres, validate research outcomes and serve as an apex centre for testing and certification and for developing standards and specifications for the Solar industry. It is envisaged that the Solar Energy Centre of the MNRE will become part of the National Centre of Excellence. The Research Council, in coordination with the National Centre of Excellence, inventorize existing institutional capabilities for Solar R&D and encourage the setting up of a network of Centres of Excellence, each focusing on an R&D area of its proven competence and capability. These Centres may be located in research institutes, academic institutions or even private sector companies. They will be encouraged to bid for various components of the Solar Technology Development Plan, and may do so adopting a consortium approach, collaborating with other institutions, including foreign collaboration, with proven capabilities. The NCE will provide a national platform for networking among different centers of excellence and research institutions, including foreign R&D institutions and high-tech companies. The NCE will serve as the funding agency to support performance-linked solar R&D programmes. This will include funding, or co-funding of pilot demonstration projects in areas relevant to Mission objectives. Funding will need to be adequate, predictable and should typically cover a time frame extending from 5-10 years.

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The NCE will be the main interface with international research institutions, research groups from foreign countries, high-tech start-up companies and multilateral programmes (such as those which may emerge from current negotiations under the UNFCCC). It will encourage joint projects between international partners and Indian centres of excellence, with sharing of IPR, as also encourage the setting up of R&D bases in India by advanced high-tech companies from abroad. The NCE will coordinate with the IMD, ISRO and other concerned agencies, the detailed mapping of ground insulation, particularly in high potential solar regions of the country. Accurate and reliable data is a critical requirement for all solar applications, in particular, concentrated solar power (CSP). In drawing up the Solar Technology Development Plan, the Research Council will review ongoing and proposed R&D initiatives of MNRE, the Department of Science and Technology, the Ministry of Earth Sciences and other agencies and institutions and incorporate them, as appropriate, in its Plan.

In order to provide support for incubation and start ups, the Mission could tie up with institutions like Centre for Innovation, Incubation and Entrepreneurship (CIIE) based in IIM Ahmedabad to incubate solar energy start-ups and SMEs in India through mentoring, networking and financial support. A fund could be established to aim at supporting at least 50 start-ups developing and deploying solar related technologies across India over the next 5 years and would be managed by a professional entity. The Fund shall be structured as a Venture Fund and would be operated as a hub and spoke model with the professional entity coordinating the fund activities and also identifying like minded institutions for administering the fund. The Fund would provide financial (equity/debt) support to start-ups, entrepreneurs and innovators for R&D and pilot of new solar related technologies and for creating new and unique business models which have a potential of increasing the deployment of solar related technologies in India for all segments including consumer, SME and commercial usage. The initiative shall be structured ideally in a private-public partnership model, to be able to provide risky capital to the aspiring entrepreneurs. It would also attract contributions from private stakeholders, amounting to, at least 10% of that of the Government. The returns generated on the Government support to the Fund shall be ploughed back for further promoting incubation activities in this space.

The Mission would also explore the possibility of collaborating with CSIR to launch an Open Source Solar Development initiative on similar lines as the Open Source Drug Discovery platform of CSIR

8.

Human Resource Development

The rapid and large-scale diffusion of Solar Energy will require a concomitant increase in technically qualified manpower of international standard. Some capacity already exists in the country, though precise numbers need to be established.

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However, it is envisaged that at the end of Mission period, Solar industry will employ at least 100,000 trained and specialized personnel across the skill spectrum. These will include engineering management and R&D functions. The following steps may be required for Human Resource Development: o IITs and premier Engineering Colleges will be involved to design and develop specialized courses in Solar Energy,with financial assistance from Government. These courses will be at B. Tech, M. Tech and Ph. D level. Some of the IITs, Engineering Colleges and Universities are teaching solar energy at graduation and post graduation level. Centres for Energy studies have been set up by some of the IITs and engineering colleges. These initiatives will be further strengthened. In addition, a countrywide training programme and specialized courses for technicians will be taken up to meet the requirement of skilled manpower for field installations and after sales service network. The Directorate General of Education and Training under the Ministry of Labour has agreed to introduce training modules for course materials for technicians in order to create a skilled workforce which could service and maintain solar applications. MNRE has already initiated this activity with the Ministry of Labour and a short term training module is to be introduced during the current academic session. In addition, industry is also working with some of the ITIs to create a skilled work force. o A Government Fellowship programme to train 100 selected engineers / technologies and scientists in Solar Energy in world class institutions abroad will be taken up. This may need to be sustained at progressively declining levels for 10 years. This could be covered under the ongoing bilateral programmes. Institution to institution arrangements will also be developed. Fellowships will be at two levels (i) research and (ii) higher degree (M. Tech) in solar energy. MNRE is already implementing a fellowship programme in this regard, which will be expanded to include students from a larger number of academic institutions. This may be done in consultation with industry to offer employment opportunities. o Setting up of a National Centre for Photovoltaic Research and Education at IIT, Mumbai drawing upon its Department of Energy Science and Engineering and its Centre for Excellence in Nano-Electronics.

9.

Institutional Arrangements for implementing the Mission

This Mission will be implemented by an autonomous Solar Energy Authority and or an autonomous and enabled Solar Mission, embedded within the existing structure of the Ministry of New and Renewable Energy. The Authority/Mission secretariat will be responsible for monitoring technology developments, review and adjust incentives, manage funding requirements and execute pilot projects. The Mission will report to the Prime Ministers Council on Climate Change on the status of its programme.

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The broad contours of an autonomous and enabled Mission would comprise of: i) A Mission Steering Group, chaired by the Minister for New and Renewable Energy and composed of representatives from all relevant Ministries and other stakeholders, will be set up to over see the over all implementation of the National Solar Mission. The Mission Steering Group will be fully empowered to approve various schemes/ projects/ policies and the related financial norms for all schemes covered under the National Solar Mission (NSM). The Mission Steering group will also authorize any modifications/deviations in the norms on ongoing schemes. A Mission Executive Committee, chaired by Secretary, Ministry of New and Renewable Energy, will periodically review the progress of implementation of the projects approved by the Mission Steering Group. An empowered Solar Research Council headed by an eminent scientist will advise the Mission on all R&D, technology and capacity building related matters. In addition, Industry Advisory Council will advise the Mission on all matters relating to industrial development, technology transfer/absorption/joint ventures, incentives and investment related matters. A Mission Director, with the rank of an Additional Secretary, would head the Mission secretariat and be responsible for day to day functioning and also achieving the goals laid out in a time bound manner. The Mission Secretariat would have Joint secretary/ Scientist G level officers including other scientists, experts and consultants.

ii) iii)

iv)

10. International Collaboration There is considerable work going on in several countries to develop Solar Energy as a clean and alternative source of energy. Strategic international collaborations and partnerships aimed at meeting the priorities set out under the Mission would be developed, along with effective technology transfer mechanisms and strong IPR protection. Cooperation will be encouraged at the level of research organizations along with industry partners and at individual level also to generate new ideas. Wherever feasible, cooperation through bilateral and multilateral arrangements would be facilitated. DST has been supporting joint research with several countries under bilateral programmes. More recently a research programme is to be taken up by DST, in consultation with MNRE, with the European Union. MNRE is also implementing some bilateral projects under the Asia Pacific Partnership Programme with Japan and Australia. A project on solar radiation data collection is under implementation with USA.

11. Financing the Mission activities

The fund requirements for the Mission would be met from the following sources or combinations:

MNRE

Page 14 of 15

i) ii)

Budgetary support for the activities under the National Solar Mission established under the MNRE; International Funds under the UNFCCC framework, which would enable upscaling of Mission targets.

The Mission strategy has kept in mind the two-fold objectives, to scale-up deployment of solar energy and to do this keeping in mind the financial constraints and affordability challenge in a country where large numbers of people still have no access to basic power and are poor and unable to pay for high cost solutions. The funding requirements and arrangements for Phase II will be determined after a review of progress achieved at the end of the 11 th Plan and an analysis of the efficacy of the model adopted for capacity building of utility scale solar power.

MNRE

Page 15 of 15

Annexure - II

MISSION RESOLUTION BY MINISTRY OF NEW AND RENEWABLE ENERGY

84

No.5/14/2008-P&C Government of India Ministry of New and Renewable Energy Block No. 14, C.G.O. Complex, Lodi Road, New Delhi -110 003 th Dated: 11 January, 2010 RESOLUTION Subject: Jawaharlal Nehru National Solar Mission Consequent to the announcement of the National Action Plan on Climate Change in June 2008, which identified development of solar energy technologies in the country as a National Mission, the Government of India has approved Jawaharlal Nehru National Solar Mission (JNNSM) which aims at development and deployment of solar energy technologies in the country to achieve parity with grid power tariff by 2022. 2. The objective of the National Solar Mission is to establish India as a global leader in solar energy, by creating the policy conditions for its diffusion across the country as quickly as possible. 3. The Mission will adopt a 3-phase approach, spanning the remaining period of the th th 11 Plan and first year of the 12 Plan (up to 2012-13) as Phase 1, the remaining 4 years of th th the 12 Plan (2013-17) as Phase 2 and the 13 Plan (2017-22) as Phase 3. At the end of th th each plan, and mid-term during the 12 and 13 Plans, there will be an evaluation of progress, review of capacity and targets for subsequent phases, based on emerging cost and technology trends, both domestic and global. The aim would be to protect Government from subsidy exposure in case expected cost reduction does not materialize or is more rapid than expected. 4. The immediate aim of the Mission is to focus on setting up an enabling environment for solar technology penetration in the country both at a centraliz ed and decentralized level. The first phase (up to 2012- 2013) will focus on capturing of the lowhanging options in solar thermal; on promoting off-grid systems to serve populations without access to commercial energy and modest capacity addition in gridbased systems. In the second phase, after taking into account the experience of the initial years, capacity will be aggressively ramped up to create conditions for up scaled and competitive solar energy penetration in the country. 5. To achieve this, the Mission targets are: To create an enabling policy framework for the deployment of solar power by 2022. 20,000 MW of

To ramp up capacity of grid-connected solar power generation to 1000 MW within three years by 2013; an additional 3000 MW by 2017 through the mandatory use of the renewable purchase obligation by utilities backed with a preferential tariff. This capacity can be more than doubled reaching 10,000MW installed power by 2017 or more, based on the enhanced and enabled international finance and technology transfer. The ambitious target for 2022 of

1 7

20,000 MW or more, will be dependent on the learning of the first two phases, which if successful, could lead to conditions of grid-competitive solar power. The transition could be appropriately up scaled, based on availability of international finance and technology.

To create favourable conditions for solar manufacturing capability, particularly solar thermal for indigenous production and market leadership. To promote programmes for off grid applications, reaching 2000 MW by 2022 including 20 million solar lighting systems. To achieve 20 million sq. solar thermal collector area by 2022. 6. The Government has given In Principle approval to the over all targets proposed for the various activities covered under the Jawaharlal Nehru National Solar Mission. 7. The Government has also decided to approve the implementation of the first phase of the Jawaharlal Nehru National Solar Mission during 2009-2013 and the target to set up 1,000 MW grid connected ( 33 KV and above) solar plants,100 MW of roof top and small solar plants connected to LT/11 KV grid and 200 MW capacity equivalent off-grid solar applications in the first phase of the Mission, till March, 2013. An amount of Rs.4337 crore has been approved for the activities proposed under the first phase of the Mission till March 2013. 8. The implementation of the target of 1,000 MW of grid connected (33 KV and above) solar power plants will be through NTPC Vidyut Vyapar Nigam (NVVN), a trading subsidiary of NTPC Limited. NVVN will directly purchase the solar power from the project developers as per the norms and guidelines fixed in this regard. 9. 100 MW capacity of solar roof top and small grid connected solar power plants will be connected to LT/11 KV grid of the distribution utility and the solar power will be directly purchased by the distribution utilities as per the norms and guidelines fixed in this regard. 10. 200 MW equivalent capacity of off-grid solar applications, both solar thermal and photovoltaic will be implemented through a combination of low interest bearing loans and /or central financial assistance. as per the norms and guidelines fixed in this regard. 11. In addition, the Mission will support various activities, as considered necessary, on R&D, Human Resource Development, Technical Assistance, training, publicity and awareness etc. for successful implementation of the Mission 12. The detailed guidelines for implementation of each of the above components of the Jawaharlal Nehru National Solar Mission will be issued separately.

(Gauri Singh) Joint Secretary to the Government of India

Order Ordered that this resolution be published in the Gazette of India Extraordinary. Ordered that a copy of the resolution be communicated to the Ministries/Departments of the Government of India, State Governments, Administration of Union Territories, Central Electricity Regulatory Commission, State Electricity Regulatory Commissions and to all other concerned

(Gauri Singh) Joint Secretary to the Government of India

Annexure - III

SINGLE LINE DIAGRAM OF POWER SUPPLY SYSTEM

Single Line Diagram for Power supply arrangement

Out 1

BSES I

GTG

PT for SYNCH

BUS COUPLER

PT FOR SYNCH

SOLAR

BSES II

OUT 2

Incomer 1

To Transformer 1

To Transformer 2

To Transformer 3

TO AC Plant

Incomer 2

Annexure - IV

LOCATION MAP OF GURDASPUR DIST, PANJAB

Annexure - V

SEISMIC ZONE MAP OF INDIA

Seismic Zone Map of India

Project Site

Prepared for Power Works Department (GNCTD), New Delhi

Annexure - VI

PHOTOGRAPHS OF PROJECT SITE

Annexure - VII

CERC GUIDELINES FOR TARIFF CALCULATION OF SPV PROJECTS

CENTRAL ELECTRICITY REGULATORY COMMISSION NEW DELHI

Coram 1. Dr. Pramod Deo, Chairperson 2. Shri R. Krishnamoorthy, Member 3. Shri S.Jayaraman, Member 4. Shri V.S.Verma, Member

Petition No.284/2009 (Suo Motu) IN

THE MATTER OF Determination of generic levellised generation tariff under Regulation 8 of the Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2009

ORDER

The Central Electricity Regulatory Commission (hereinafter referred to as the Central Commission) has been vested with the following functions under clauses (a) and (b) of Section 79 of the Electricity Act, 2003 (hereinafter referred to as the Act):

(a) To regulate the tariff of the generating companies owned or controlled by the Central Government; (b) To regulate the tariff of generating companies other than those owned or controlled by the Central Government, if such generating companies enter into or otherwise have a composite scheme for generation and sale of electricity in more than one State. 2. Section 61 of the Act empowers the Central Commission to specify, by

regulations, the terms and conditions for the determination of tariff in accordance with the

provisions of the said section and the National Electricity Policy and Tariff Policy. Subsection (h) of Section 61 of the Act stipulates that while determining tariff, the Commission shall be guided by the aspect of promotion of co-generation and generation from renewable sources of energy. Clause 6.4 of the Tariff Policy entrusts the responsibility on the Commission to frame guidelines for pricing of non-firm power especially from non-conventional sources when procurement is not through the competitive bidding process.

3.

In exercise of the powers vested under Section 61 read with Section 178 of the Act

and after previous publication, the Commission has notified the Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2009, (hereinafter referred to as the RE Regulations). The RE Regulations provide for terms and conditions and the procedure for

determination of tariff of the following categories of renewable energy generating stations: (a) Wind Power Project; (b) Small Hydro Projects; (c) Biomass Power Projects; (d) Non-fossil fuel-based co-generation Plants; (e) Solar Photo voltaic (PV) and Solar Thermal Power Projects.

4.

The Renewable Energy (RE) Regulations require the Commission to determine

the generic tariff on the basis of the suo motu petition, for the RE technologies for which norms have been provided in the regulations. Generic Tariff is different from the project specific tariff for which a project developer has to file petition before the commission as

per the format provided in the RE regulations. Pertinently, project specific tariff has been envisaged for the new RE technologies and the technologies which are still at the nascent stage of development, and the Commission shall determine the project specific tariff for such technologies on a case to case basis.

5.

Clause (1) of Regulation 8 of the RE Regulations provides that the Commission

shall determine the generic tariff on the basis of suo motu petition at least six months in advance at the beginning of each year of the Control period for renewable energy technologies for which norms have been specified under the Regulations. As the first year of the control period has already commenced with the notification of the regulations with effect from 16.9.2009, the Commission in due discharge of the mandate under Regulation 8(1) of RE Regulations proceeds to determine the generic tariff of the RE projects for the first year of control period (i.e. FY 2009-10) through this order based on the financial principles and technology specific parameters.

USEFUL LIFE 6. Sub-clause (y) of clause(1) of Regulation 2 of the RE Regulations defines useful

life in relation to a unit of a generating station (including evacuation system) to mean the following duration from the date of commercial operation of such generation facility: Renewable Energy projects Wind Energy Small Hydro Biomass Non-fossil fuel co-generation Solar PV Solar Thermal Years 25 35 20 20 25 25

CONROL PERIOD 7. Regulation 5 of the RE Regulations provides that the control period for

determination of tariff for renewable energy projects (RE projects) shall be of three years of which the first year is to be considered from the date of notification of these regulations till 31.3.2010. Proviso to the said regulation stipulates that the tariff determined for the RE projects commissioned during the control period shall continue to be applicable for the entire duration of the tariff period as specified in Regulation 6 of the RE Regulations. However, the benchmark cost for Solar PV and Solar thermal may be reviewed by the Commission annually.

TARIFF PERIOD 8. In terms of Regulation 6 of the RE Regulations, the tariff period in respect of the

RE projects is as under:

Renewable Energy projects Wind Energy Small Hydro (less than 5MW) Small Hydro (between 5MW to 25 MW) Biomass Non-fossil fuel co-generation Solar PV and Solar Thermal

Years 13 35 13 13 13 25

In terms of clauses (4) and (5) of the said regulation, the tariff period specified above shall be reckoned from the date of commercial operation of the RE projects and the tariff determined under the regulations shall be applicable for the duration of the tariff period.

TARIFF STRUCTURE 9. Clause (1) of Regulation 9 of the RE Regulations stipulates that the tariff for RE

projects shall be single part tariff consisting of the following fixed cost components: (a) Return on equity; (b) Interest on loan capital; (c) Depreciation; (d) Interest on working capital; (e) Operation and maintenance expenses; For renewable energy technologies having fuel cost component, like biomass power projects and non-fossil fuel based cogeneration, single part tariff with two components, fixed cost component and fuel cost component, is to be determined.

TARIFF DESIGN 10. In terms of Regulation 10 of the RE Regulations, the tariff design for renewable

energy generating stations is as under:


(1) The generic tariff shall be determined on levellised basis for the Tariff Period. Provided that for renewable energy technologies having single part tariff with two components, tariff shall be determined on levellised basis considering the year of commissioning of the project for fixed cost component while the fuel cost component shall be specified on year of operation basis. (2) For the purpose of levellised tariff computation, the discount factor equivalent to weighted average cost of capital shall be considered. Levellisation shall be carried out for the useful life of the Renewable Energy while tariff shall be specified for the period equivalent to Tariff Period.

(3)

LEVELLISED TARIFF 11. Levellised Tariff is calculated by carrying out levellisation for useful life of each

technology considering the discount factor for time value of money.

Discount Factor: The discount factor considered for this purpose is equal to the weighted average cost of the capital on the basis of normative debt: equity ratio (70:30) specified in the Regulations. Considering the normative debt equity ratio and weighted average of the rates for interest and equity component, the discount factor is calculated. Interest Rate considered for the loan component (i.e. 70% ) of Capital Cost is 14.29% (as explained later ). For equity component (i.e. 30%) rate of Return on Equity (ROE) for the first ten (10) years is 19% and for 11th year onward till useful life of the RE project the rate is 24%. Based on these rates, the weighted average of rate of ROE has been calculated which is 22%. . The discount factor derived by this method for each technology is as shown in the following table:
Details Wind Energy Small Hydro Biomass Nonfossil fuel cogenerati on Solar PV Solar Thermal

Less than 5 MW (Himachal Pradesh, Uttarakha nd and North Eastern States)

Between 5 MW to 25 MW (Himachal Pradesh, Uttarakha nd and North Eastern States

Other States (below 5 MW

Other states (5 MW to 25 MW)

Discount Rate (%)

16.60

16.8

16.8

16.8

16.8

16.45

16.45

16.60

16.60

CAPITAL COST 12. Regulation 12 of the RE Regulations stipulates that the norms for the capital cost

as specified in the technology specific chapter shall be inclusive of all capital works like

plant and machinery, civil works, erection and commissioning, financing and interest during construction, and evacuation infrastructure up to inter-connection point.

Technology specific capital cost of RE projects is discussed hereinunder:

(A) Capital Cost of Wind Energy 13. Wind Power projects located at the wind sites having minimum annual Wind Power Density(WPD) of 200 Watt/m2 measured at hub height of 50 meters and using new wind turbine generators are eligible for tariff determination under the RE Regulations. Regulation 24 provides that the capital cost for wind energy project shall include wind turbine generator including its auxiliaries, land cost, site development charges and other civil works, transportation charges, evacuation cost up to inter-connection point, financing charges and IDC. The normative capital cost of the wind energy projects shall be Rs.515 lakh/MW for the year 2009-10 being the first year of the control period and shall be subject to the adjustment over the control period on account of changes in the wholesale price index for steel and electrical machinery as per the indexation mechanism specified in Regulation 25 of the RE Regulations.

(B) Capital cost of Small Hydro Projects 14. Small Hydro Projects for the purpose of the RE Regulations cover those projects

which are located at the sites approved by the State Nodal Agencies/State Governments using new plant and machinery and with installed power plant capacity lower than or equal to 25 MW. Regulation 28 of the RE Regulations specifies the following normative capital cost for small hydro projects during the first year of the control period i.e. FY 20092010:

Region Himachal Pradesh, Uttarakhand and North Eastern States Other States

Project Size Below 5 MW 5 MW to 25 MW Below 5 MW 5 MW to 25 MW

Capital Cost
(Rs in lakh/ MW)

700 630 550 500

The capital cost for subsequent years of the control period shall be determined on the basis of indexation formula under Regulation 29 to cater for the changes in the wholesale price index for steel and electrical machinery.

(C) Capital Cost of Biomass based Power Projects

15. Biomass power project for the purpose of these regulations covers the projects using new plant and machinery based on Rankine cycle technology application using water cooled condenser, and biomass fuel sources where use of fossil fuel is limited to 15% of total fuel consumption on annual basis. Regulation 34 of RE Regulations provides that the normative capital cost for the biomass power projects based on Rankine cycle technology application using water cooled condenser shall be Rs.450 lakh/MW for the first year of the control period i.e. 2009-10 for tariff determination.

(D) Capital Cost of Non-fossil fuel based Cogeneration Projects

16. Non-fossil based cogeneration has been defined as the process in which more than one form of energy is produced in a sequential manner by using biomass. As per Regulation 4(4) of the RE Regulations, a project to qualify as the non-fossil based cogeneration project must be using new plant and machinery with topping cycle mode of operation which uses the non-fossil fuel input for power generation and utilizes the

thermal energy generated for useful heat applications in other industrial activities simultaneously, and where the sum of useful power output and half of useful thermal output is greater than 45% of the plants energy consumption during the season. The normative capital cost of the non-fossil based co-generation project shall be Rs.445 lakh/MW for 2009-10 i.e. the first year of the control period.

(E) Capital Cost of Solar PV Projects 17. Solar Photo Voltaic (PV) power projects which directly convert solar energy into

electricity using the crystalline silicon or thin film technology or any other technology as approved by the Ministry of New and Renewable Energy and are connected to the grid qualify for the purpose of tariff determination under the RE Regulations. As per Regulation 57, the normative capital cost for Solar PV Power Project shall be Rs.1700 lakh/MW for the first year of the control period.

(F) Solar Thermal Power Project 18. In order to qualify for tariff determination under the RE Regulations, Solar Thermal

Power Project shall be based on concentrated solar power technologies with line focusing or point focusing as may be approved by the Ministry of New and Renewable Energy and which uses direct sunlight to generate sufficient heat to operate a conventional power cycle to generate electricity. As per Regulation 61 of the RE Regulations, the normative capital cost for Solar Thermal Power Project shall be Rs.1300 lakh/MW for 2009-10.

19.

The capital cost for the first year (2009-10) of the control period in respect of the

renewable energy power generating stations is summarized as under:


(Rs in lakh/MW )

Renew able Energy Projects (1) Wind Energy (2) Small Hydro (a) Himachal Pradesh, Uttarakhand and North Eastern States (less than 5 MW) (b) Himachal Pradesh, Uttarakhand and North Eastern States (5MW to 25 MW) (c) Other States (below 5 MW) (d) Other States ( 5MW to 25 MW) (3) Biomass power projec ts (4) Non-fossil fuel based co-generation projects (5) Solar Photovoltaic power projects (6) Solar Thermal power projects

Capital cost 515 700 630 550 500 450 445 1700 1300

DEBT-EQUITY RATIO

20.

Clause (1) of Regulation 13 of the RE Regulations provides that the debt-equity

ratio of 70:30 is to be considered for determination of generic tariff based on suo motu petition.

21.

Based on the debt equity ratio of 70:30, the debt and equity components of the

normative capital cost for determination of tariff for the RE projects have been worked out as under:

(Rs in lakh)

Renewable Energy Projects (1) Wind Energy (for all zones) (2) Small Hydro Himachal Pradesh, Uttara khand and North Eastern States (below 5 MW) Himachal Pradesh, Uttara khand and North Eastern States (5 MW to 25 MW) Other States (below 5 MW) Other States ( 5MW to 25 MW) (3) Biomass (4) Non-fossil fuel co-generation (5) Solar PV (6) Solar Thermal

Debt 360.5

Equit y 154.5

490 441 385 350 315 311.5 1190 910

210 189 165 150 135 133.5 510 390

RETURN ON EQUITY

22.

Clause (1) of Regulation 16 of the RE Regulations provides that the value base for

the equity shall be 30% of the capital cost for generic tariff determination. Clause (2) of the said regulation stipulates the normative return on equity as under: (a) Pre-tax 19% per annum for the first 10 years, and (b) Pre-tax 24% per annum from the 11 year.
th

23.

In accordance with the above regulations, return on equity has been worked out in

respect of the RE generating technologies taking the value base of equity as 30% of the capital cost as under:

(Rs in lakh)

Details

Wind Energy

Small Hydro

Biomas s

Nonfossil fuel cogeneratio n

Solar PV

Solar Thermal

Less than 5 MW (Himachal Pradesh, Uttarakhan d and North Eastern States)

Between 5 MW to 25 MW (Himachal Pradesh, Uttarakha nd and North Eastern States

Other States (below 5 MW

Other state s (5 MW to 25 MW)

Equity opening (Rs in lakh) Return on Equity for the first 10 years (%) Return on Equity after first 10 years (%) Weighted average rate on ROE (%)

154.5

210

189

165

150

135

133.5

510

390

19

19

19

19

19

19

19

19

19

24

24

24

24

24

24

24

24

24

22

22.57

22.57

22.57

22.57

21.50

21.50

22

22

INTEREST ON LOAN 24. Clause (1) of Regulation 14 of the RE Regulations provides that the loan tenure of

10 years is to be considered for the purpose of determination of tariff for RE projects. Clause (2) of the said regulation provides for computation of the rate of interest on loan as under: (a) The loans arrived at in the manner indicated above shall be considered as gross
normative loan for calculation for interest on loan. The normative loan outstanding as on April 1st of every year shall be worked out by deducting the cumulative repayment up to March 31st of previous year from the gross normative loan.

(b) For the purpose of computation of tariff, the normative interest rate shall be considered as average long term prime lending rate (LTPLR) of State Bank of India (SBI) prevalent during the previous year plus 150 basis points. (c) Notwithstanding any moratorium period availed by the generating company, the repayment of loan shall be considered from the first year of commercial operation of the project and shall be equal to the annual depreciation allowed.

25.

In terms of the above, the computations of interest on loan for determination of

tariff in respect of the RE projects treating the value base of loan as 70% of the capital cost and the weighted average of SBI prime lending rate for the financial year 2008-09 plus 150 basis points, are as under: (Rs in lakh)
Details Wind Energy Less than 5 MW (Himachal Pradesh, Uttarakhand and North Eastern States) Gross loan opening (Rs in lakh) Period of repayment Rate of interest (%) 360.5 490 Small Hydro Biomass Non-fossil fuel cogeneration Solar PV Solar Thermal

Between 5 MW to 25MW (Himachal Pradesh, Uttarakhand and North Eastern States 441

Other States (below 5 MW

Other states (5 MW to 25 MW)

385

350

315

311.5

1190

910

10

10

10

10

10

10

10

10

10

14.29

14.29

14.29

14.29

14.29

14.29

14.29

14.29

14.29

DEPRECIATION 26. Regulation 15 of the RE Regulations provides for computation of depreciation in

the following manner:


(1) The value base for the purpose of depreciation shall be the Capital Cost of the asset admitted by the Commission. The Salvage value of the asset shall be considered as 10% and depreciation shall be allowed up to maximum of 90% of the Capital Cost of the asset. (2) Depreciation per annum shall be based on Differential Depreciation Approach over loan tenure and period beyond loan tenure over useful life computed on Straight Line Method. The depreciation rate for the first 10 years of the Tariff Period shall be 7% per

annum and the remaining depreciation shall be spread over the remaining useful life of the project from 11th year onwards. (3) Depreciation shall be chargeable from the first year of commercial operation. Provided that in case of commercial operation of the asset for part of the year, depreciation shall be charged on pro rata basis.

27.

In accordance with the above, the rate of depreciation for the first 10 years has

been considered as 7% and the rate of depreciation from the 11th year onwards has been spread over the balance useful life of the RE project as under:

Details

Wind Energy 25 7.00

Small Hydro 35 7.00

Biomass

Non-fossil fuel cogeneration 20 7.00

Solar PV 25 7.00

Solar Thermal 25 7.00

Useful Life (in years) Rate of depreciation for 10 years (%) Rate of depreciation after first 10 years (%)

20 7.00

1.33

0.80

2.00

2.00

1.33

1.33

INTEREST ON WORKING CAPITAL 28. Regulation 18 of the RE Regulations provides for the working capital requirements of the RE projects as under:
(1) The Working Capital requirement in respect of wind energy projects, small hydro power, solar PV and Solar thermal power projects shall be computed in accordance with the following : Wind Energy / Small Hydro Power /Solar PV / Solar thermal (a) Operation & Maintenance expenses for one month; (b) Receivables equivalent to 2 (Two) months of energy charges for sale of electricity calculated on the normative CUF; (c) Maintenance @ 15% of operation and maintenance expenses

(2) The Working Capital requirement in respect of biomass power projects and non-fossil fuel based co-generation projects shall be computed in accordance with the following clause: Biomass Power and Non-fossil fuel Co-generation (a) Fuel costs for four months equivalent to normative PLF; (b) Operation & Maintenance expense for one month; (c) Receivables equivalent to 2 (Two) months of fixed and variable charges for sale of electricity calculated on the target PLF; (d) Maintenance spare @ 15% of operation and maintenance expenses (3) Interest on Working Capital shall be at interest rate equivalent to average State Bank of India short term PLR during the previous year plus 100 basis points

29.

Receivables equivalent to two months of actual fixed cost have been considered.

The interest on working capital has been worked out as specified below for determination of tariff of the RE projects:
Details Wind Energy Small Hydro Biomass Non-fossil fuel cogeneration Solar PV (Rs in lakh) Solar Thermal

(A) For Fixed charges (i) O&M expenses (month) (ii) Maintenance spares (%) of O&M expenses (iii) Receivables (months) (B) For Variable Charges Biomass/Bagasse stock (months) (C ) Rate of Interest on working capital (%) 13.79 13.79 4 13.79 4 13.79 13.79 13.79 1 15 2 1 15 2 1 15 2 1 15 2 1 15 2 1 15 2

OPERATION AND MAINTENANCE EXPENSES 30. Regulation 18 of the RE Regulations provides for Operation and Maintenance

Expenses (O&M expenses) in respect of RE projects as under:

Operation and Maintenance Expenses


(1) Operation and Maintenance or O&M expenses shall comprise repair and maintenance (R&M), establishment including employee expenses, and administrative and general expenses. (2) Operation and maintenance expenses shall be determined for the Tariff Period based on normative O&M expenses specified by the Commission subsequently in these Regulations for the first Year of Control Period. (3) Normative O&M expenses allowed during first year of the Control Period (i.e.FY 200910) under these Regulations shall be escalated at the rate of 5.72% per annum over the Tariff Period.

31.

The normative O&M expenses for various RE technologies specified under the

relevant provisions of the RE Regulations are as under:

(a) Wind Energy: Regulation 27 of RE Regulations provides that the normative O&M expenses for the first year of the control period (i.e. 2009-10) is Rs 6.50 lakh per MW and shall be escalated at the rate of 5.72% per annum over the tariff period for determination of the levellised tariff. (b) Small Hydro: Regulation 32 of RE Regulations provides that the normative O& M expenses for small hydro projects for the year 2009-10 shall be as given in the table below and shall be escalated at the rate of 5.72% per annum over the tariff period for determination of the levellised tariff:

Region Himachal Pra desh, Uttarakhand and North Eastern States Other States

Project Size Below 5 MW 5 MW to 25 MW Below 5 MW 5 MW to 25 MW

O&M expenses (Rs in lakh/MW) 21 15 17 12

(c)

Biomass: Regulation 39 of RE Regulations provides that the normative O& M

expenses for biomass based projects for the year 2009-10 shall be Rs 20.25 lakh/MW and shall be escalated at the rate of 5.72% per annum over the tariff period for determination of the levellised tariff.

(d) Non-fossil fuel co-generation: As per Regulation 55 of RE Regulations, the normative O&M Expenses for non-fossil fuel co-generation projects for the year 2009-10 is Rs 13.35 lakh per MW which shall be escalated at the rate of 5.72% per annum over the tariff period for determination of the levellised tariff. (e) Solar PV: In terms of Regulation 59 of RE Regulations, the normative O&M expenses for solar PV projects for the year 2009-10 is Rs 9.00 lakh/MW which shall be escalated at the rate of 5.72% per annum over the tariff period for determination of the levellised tariff. (f) Solar Thermal: Regulation 63 specifies the normative O&M expenses for solar thermal power projects during the first year of operation as Rs 13.0 lakh/MW which shall be escalated at the rate of 5.72% per annum over the tariff period for determination of the levellised tariff. 32. The normative O&M expenses have been worked out as specified above for

determination of tariff for the renewable energy generating stations.

CAPACITY UTILISATION FACTOR 33. Regulations 26, 30, 58 and 62 of the RE Regulations specify the norms for

Capacity Utilization Factor (CUF) in respect of the renewable energy generating stations

except biomass and non- fossil fuel based cogeneration as per the details given in the table below which has been considered for determination of tariff.

Renewable Energy Projects (A) Wind Energy Annual Mean Wind Power Density (W/m2) Wind zone-1 (200-250) Wind zone-2 (250-300) Wind zone-3 (300-400) Wind zone-4 (above 400) (B) Small Hydro (i) Himachal Pradesh, Uttarakhand and North Eastern States (ii) Other States (C) Solar PV (D) Solar Thermal

CUF

20% 23% 27% 30% 45% 30% 19% 23%

34.

In terms of clause (2) of Regulation 26 of the RE Regulations, the annual mean

wind power density specified above is to be measured at 50 meter hub-height and as per clause (3), for the purpose of classification of wind energy project into particular wind zone class, the State-wise wind power density map prepared by Centre for Wind Energy Technology (C-WET) annexed as schedule to the said regulations, is to be considered.

PLANT LOAD FACTOR (PLF) 35. Regulation 36 of the RE Regulations specifies the plant load factor for biomass

based renewable energy generating stations as given in the table below which has been considered for determination of fixed charges component of tariff.

Renewable Energy Projects


Biomass (a) During stabilization (6 months) (b) During first year after stabilization (c) Second year onwards

PLF (%)
60% 70% 80%

36.

Regulation 49 of the RE Regulations stipulates the plant load factor for non-fossil

fuel based co-generation projects as under, computed on the basis of plant availability for number of operating days considering the operations during crushing season and offseason and load factor of 92%. The number of operating days for different States as specified in the regulations is as under:
States Uttar Pradesh and Andhra Pradesh Tamil Na du and Maharashtra Other States Operating days 120 days (crushing)+ 60 days (off-season) = 180 days PLF (%) 45%

180 days (crushing)+ 60 days (off-season) = 240 days 150 days (crushing) + 60 days (off-season) = 210 days

60% 53%

AUXILIARY POWER CONSUMPTION 37. Regulations 31, 37, 50 and 64 of the RE Regulations stipulate the auxiliary power

consumption factor as under which has been considered for determination of tariff of the RE projects :
Renew able Energy Projects Small Hydro Biomass Non-fossil fuel co-generation Solar Thermal Auxiliary Consumption factor 1.0% 10.0% 8.5% 10.0%

STATION HEAT RATE 38. The Station Heat Rates (SHR) specified under Regulations 38 and 51 of the RE

Regulations for biomass and non-fossil fuel based co-generation projects are as under:

Renew able Energy Projects Biomass Non-fossil fuel co-generation (for power component)

SHR (kCal / kWh) 3800 3600

FUEL (a) Fuel Mix 39. Clause (1) of Regulation 40 of the RE Regulations stipulates that the biomass

based power generating stations are to be designed in a way that it uses different types of non-fossil fuels available within the vicinity of biomass power project such as crop residues, agro-industrial residues, forest residues etc. and other biomass fuels as may be approved by the Ministry of Non-Renewable Energy (MNRE). Clause (2) of the said regulations stipulates that the biomass power generating companies are to ensure fuel management plan to ensure adequate availability of fuel to meet the respective project requirements.

(b) Use of fossil fuel 40. In terms of Regulation 41 of the RE Regulations, the use of fossil fuel is to be

limited to the extent of 15% of total fuel consumption on annual basis and in terms of Regulation 42 of the said regulations the mechanism for monitoring the use of fossil fuel is as under: (1) The Project developer shall furnish a monthly fuel usage statement and monthly fuel procurement statement duly certified by Chartered Accountant to the beneficiary (with a copy to appropriate agency appointed by the Commission for the purpose of monitoring the fossil and non-fossil fuel consumption) for each month, along with the monthly energy bill. The statement shall cover details such as;

(a) Quantity of fuel (in tonnes) for each fuel type (biomass fuels and fossil fuels) consumed and procured during the month for power generation purposes; (b) Cumulative quantity (in tonnes) of each fuel type consumed and procured till the end of that month during the year; (c) Actual (gross and net) energy generation (denominated in units) during the month; (d) Cumulative actual (gross and net) energy generation (denominated in units) until the end of that month during the year; (e) Opening fuel stock quantity (in tonnes); (f) Receipt of fuel quantity (in tonnes) at the power plant site; and (g) Closing fuel stock quantity (in tonnes) for each fuel type (biomass fuels and fossil fuels) available at the power plant site. (2) Non-compliance with the condition of fossil fuel usage by the project developer, during any financial year, shall result in withdrawal of applicability of tariff as per these Regulations for such biomass based power project. (c) Calorific value 41. In terms of Regulation 43 of the RE Regulations the calorific value of biomass fuel

for determination of tariff is as under:


State Andhra Pradesh Haryana Maharashtra Madhya Pradesh Punjab Rajasthan Tamilnadu Uttar Pradesh Other States Calorific value(kCal/kg) 3275 3458 3611 3612 3368 3689 3300 3371 3467

42.

In terms of Regulation 52 of the said regulations, the gross calorific value for

bagasse to be considered in case of non-fossil fuel co-generation projects is 2250

kCal/kg and for the use of biomass fuels other than bagasse, the calorific value as specified above shall be applicable.

(d) Fuel cost 43. In terms of Regulation 44 of the RE Regulations, the biomass fuel price during the

period 2009-10 shall be as indicated in the table below:


Biomass pr ice (Rs/MT) 1301 2168 1801 1299 2092 1822 1823 1518 1797

State Andhra Pradesh Haryana Maharashtra Madhya Pradesh Punjab Rajasthan Tamilnadu Uttar Pradesh Other States

44.

In terms of Regulation 53 of the RE Regulations, the price of bagasse (for non-

fossil fuel based co-generation projects) during the period 2009-10 shall be as indicated in the table below:
State Andhra Pradesh Haryana Maharashtra Madhya Pradesh Punjab Tamilnadu Uttar Pradesh Other States Bagasse price (Rs/MT) 899 1411 1123 809 1398 1243 1013 1163

Subsidy or incentive by the Central / State Government 45. Regulation 22 of the RE Regulations provides as under: The Commission shall take into consideration any incentive or subsidy offered by the Central or State Government, including accelerated depreciation benefit if availed by the generating company, for the renewable energy power plants while determining the tariff under these Regulations. Provided that the following principles shall be considered for ascertaining income tax benefit on account of accelerated depreciation, if availed, for the purpose of tariff determination: i. Assessment of benefit shall be based on normative capital cost, accelerated depreciation rate as per relevant provisions under Income Tax Act and corporate income tax rate. ii. Capitalisation of RE projects during second half of the fiscal year. Per unit benefit shall be derived on levellised basis at discount factor equivalent to weighted average cost of capital.

46.

In terms of the above regulation, for the projects availing the benefit of Section 80

IA of the Income Tax Act, 1961, the Minimum Alternate Tax (MAT) @ 16.995% (15% MAT+10% surcharge+3% education cess) for the first ten years and thereafter the normal tax rate @ 33.99% (30% IT rate+ 10% surcharge +3% Education cess) has been considered. For the purpose of determining net depreciation benefits, depreciation @ 5.28% as per straight line method (Book depreciation as per Companies Act, 1956) has been compared with depreciation as per Income Tax rate i.e. 80% of the written down value method and depreciation for the first year has been calculated at the rate of 50% of 80% i.e 40%, as project is capitalized during the second half of the financial year as per proviso (ii) to Regulation 22. Tax benefit has been worked out as per MAT/normal tax rate on the net depreciation benefit. Per unit levellised accelerated depreciation benefit has been computed considering the weighted average cost of capital as discount factor.

47.

In the light of the discussion made in the preceding paragraphs, the generic tariffs

of the following RE projects for the financial year 2009-10 have been determined as under:
RE technologies as per CERC RE Tariff Regulations Norms for FY 2009-10 Levellised Fixed Levellised Variable Levellised total tariff Benefit of Accelerated Depreciation, if availed Net Levellised Tariff upon adjusting for accelerated Depreciation benefit, (if availed) (Rs/kWh)

(Rs / kWh)

(Rs / kWh)

(Rs / kWh) Wind Energy

(Rs/kWh)

Wind Zone -1 (CUF 20%) Wind Zone -2 (CUF 23%) Wind Zone -3 (CUF 27%) Wind Zone -4 (CUF 30%)

5.63 4.90 4.17 3.75 Small Hydro Pow er Project

(0.37) (0.32) (0.28) (0.25)

5.26 4.58 3.89 3.5

HP, Uttarakhand and NE States (Below 5MW) HP, Uttarakhand and NE States (5MW to 25 MW) Other States (Below 5 MW) Other States (5 MW to 25 MW)

3.90

(0.23)

3.67

3.35

(0.21)

3.14

4.62

(0.27)

4.35

4.00

(0.25)

3.75

Solar Power Projects 18.44 13.45 (1.30) (0.91) 17.14 12.54

Solar PV Solar Thermal

Biomass Power Project Andhra Pradesh Haryana Madhya Pradesh Maharashtra Punjab Rajasthan Tamil Nadu Uttar Pradesh Others 1.94 2.03 1.93 1.98 2.03 1.98 2.01 1.96 2.00 2.21 3.49 2 2.78 3.46 2.75 3.07 2.51 2.88 4.15 5.52 3.93 4.76 5.49 4.73 5.08 4.47 4.88 (0.10) (0.10) (0.10) (0.10) (0.10) (0.10) (0.10) (0.10) (0.10) 4.05 5.42 3.83 4.66 5.39 4.63 4.98 4.37 4.78

Non-fossil fuel based cogeneration Andhra Pradesh Haryana Maharashtra Madhya Pradesh Punjab Tamil Nadu Uttar Pradesh Others 2.86 2.53 2.21 2.43 2.53 2.24 2.88 2.49 2.07 3.25 2.59 1.86 3.22 2.86 2.33 2.68 4.93 5.78 4.80 4.29 5.75 5.10 5.21 5.17 (0.15) (0.13) (0.12) (0.13) (0.13) (0.12) (0.15) (0.13) 4.78 5.65 4.68 4.16 5.62 4.98 5.06 5.04

48.

The detailed calculations of the generic tariff are annexed to this order as per the

details given hereunder: (a) Wind power projects:


(i) Wind Zone-I (ii) Wind Zone-II (iii) Wind Zone-III (iv) Wind Zone-IV

Annexure 1A Annexure 1B Annexure 1C Annexure 1D

(b) Small hydro projects: (I) (II) (III) Projects Less than 5 MW for HP, Utarakhand and NE States Projects between 5 MW and 25 MW for HP, Utarakhand And NE States Projects less than 5 MW for other States Annexure 2A Annexure 2B Annexure 2C

(IV)

Projects between 5 MW and 25 MW for other States (c) Bio-mass power project: (I) (II) (III) (IV) (V) (VI) (VII) (VIII) (IX) Andhra Pradesh Haryana Maharashtra Punjab Madhya Pradesh Rajasthan Uttar Pradesh TamilNadu Other States

Annexure 2D

Annexure 3A Annexure 3B Annexure 3C Annexure 3D Annexure 3E Annexure 3F Annexure 3G Annexure 3H Annexure 3I

(d) Co-generation projects: (I) (II) (III) (IV) (V) (VI) (VII) (VIII) Andhra Pradesh Haryana Maharashtra Madhya Pradesh Punjab Uttar Pradesh TamilNadu Other States Annexure 4A Annexure 4B Annexure 4C Annexure 4D Annexure 4E Annexure 4F Annexure 4G Annexure 4H

(e) Solar projects: (I) (II) Solar PV projects Solar thermal projects Annexure 5A Annexure 5B

49.

The above generic tariff is for the RE power projects commissioned during the FY

2009-10 and fulfilling the conditions of the RE regulations.

-sd/[V.S.VERMA] MEMBER

-sd/[S. JAYARAMAN] MEMBER

-sd/[R. KRISHNAMOORTHY] MEMBER

-sd/[Dr. PRAMOD DEO] CHAIRPERSON

New Delhi dated the 3rd December, 2009

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