Promotion of Renewable Energy in Odisha

Santosh Ku. Sahu

Prelude

With the integration of compatible

Subject to the Global trend, the

Countrys

Energy

scenario

codes,

improved

equipments,

technology

the

&

distributed

is

renewable energy generation will

experiencing a paradigm shift by

surely gain popularity in todays

concentrating on Clean, Green &

competitive power market and will

Renewable

be

Energy,

Distributed

generation, Sustainable growth and

viable

&

cost-effective

business option.

Smart Grid implementation with an

intention to achieve 100% house
hold electrification, access to 24x7
Power for All, make the Power grid
more efficient, reliable, secure and
resilient

apart

from

addition

of

capital

centralized

&

minimizing
intensive

conventional

generation and reduction of carbon

footprints.

Present Scenario
Statistics of the first quarter of FY
15-16 reveals around 8000 MUs, i.e.
2.2% deficit of Countrys demand.
The Peak demand short fall is of
around

5000

MWs,

Average

plant

load

Thermal

sector

is

i.e.

3.4%.

factor

60%

in

of
the

Country.

Presently,

Traditionally, Utilities rely on large

constitute

approx.

scale

plants

Countrys total installed capacity

based on Coal, Hydel Nuclear and

i.e. 36,643 MW. Sensing the need of

Gas predominantly for generating

the hour, Union Ministry has fixed a

electricity.

Now-a-days

electricity

very ambitious target of increasing

generation

through

renewable

the RE component up to 35-40% of

centralized

Power

Renewable
13%

of

the

Wind,

the installed capacity by adding

Small hydro, Bio gas, Bio mass,

175000 MW of Renewable capacity

Solid waste and various other types

in the coming 7 years (by 2022).

of green energy sources are being

Table below depicts the sector wise

utilized

break up of 175 GW of Renewable

resources

such

to

competitively
traditional
generations.

as

Solar,

competently
complement
centralized

&
the

power

Power Road map.

Solar

Wind

Small
Hydro

Bio
Mass &

100

60

to support achieving of the

Others
10

Further, from the 100 GW of Solar

objectives of the Act.

3) Renewable

energy

capacity, 60 GW is targeted from

applications

land based Solar Plants, i.e. Solar

distributed

Parks & UMSPPs and the remaining

connected

40 GW of Solar Power is to come

electricity

from the Grid connected Roof Top

Solar Plants.

including
and

grid

renewable

Comments/observations/feed-backs
etc. from Industry, Developers, R&D

The present RE installed capacity at

Institutions,

the end of 1st quarter of FY 15-16

Institutions, Think Tanks, Academia,

stands at 36,643 MW which is 21%

Electrical

of the target of 175 GW by 2022.

Stakeholders

Amongst the various sources of

Renewable Energy, Solar generation
is

gaining

more

popularity

on

Utilities

Renewable

maximum

availability

of

and
solar

horizontal irradiance.

National Act

other

the

draft

A provision in the draft RE Act

cleanliness,

cost

and

solicited by the Ministry presently.

states,

fuel

on

Research

Renewable Energy Act 2015 are

account of its easy installation,

zero

Policy

creation

Zones

of

concentrated

Energy

Investment

for

development

renewable

power

projects

with

of

generation
adequate

infrastructure and where the project

The draft Renewable Energy Act

risks will be minimized & clearances

2015 has been prepared by the

will be facilitated.

Ministry

of

New

&

Renewable

Energy (MNRE), Govt. of India with

following broad aspects;
1) Provisions

for

institutional

structure,

supportive

eco

system,

economic

and

financial framework.
2) Constitution and operation of
national and state level funds

MNRE

will

work

with

to

identify

Governments

State
and

develop RE investment zones to

meet the goals under the National
RE Development Plan under the
aegis of the Ministry.

Odisha
Policy

RE

Potential

&

A tentative assessment made by

GEDCOL with the support of World

MNRE

Bank

shows

the

Renewable

has

finalized

the

draft

potential available in Odisha as 28

Renewable Energy Policy 2015-22

GW approx. Table below illustrates

document for Odisha. The Policy

technology wise RE potential of the

document will be placed before the

State;

State Cabinet shortly for approval.

Technology

Potential in
MW
25,780
1,384
295
246
22
27,727

Solar
Wind
Small Hydro
Bio-mass
Waste to Energy
Total
In

the

wake

of

promoting

Renewable Energy in the State,

Govt.

of

Odisha

formed

Green

Energy Development Corporation of

Odisha Ltd., (GEDCOL) as a 100%
subsidiary
Hydro

company

Power

of

Odisha

Corporation

Ltd.

Key features of the Policy seem to

be;
A

high

named

power

committee

Odisha

Renewable

Energy Empowered Committee

(OREEC) will be set up, for
taking

decisions

selection,

allotment

monitoring

Constitution
Odisha

investment

in

renewable energy projects &

various green energy sources
and

develop

special

and

execute

renewable

energy

(OGCCO)

coordination

of

renewable energy projects to

generate

and

sale

electric

power anywhere in India.

for
various

Creation of Odisha Renewable

Energy
(OREDF)

Development
for

GEDCOL

will

Fund

accelerated

Energy in the State.

operate

of

schemes in off-grid mode.

demonstration basis.
&

Off-grid

Committee

development

maintain

on-grid

of

project on commercial and/or

To plan, organize, implement,

and

development projects.

objectives.
promote

to

energy

Coordination

To

of

renewable

(OHPC) with the following major

related

of

be

Renewable

the

Nodal

Agency for on-grid Solar Power

of capacity 1 MW and above.

 EIC-cum-PCEI, Electricity will be

the Nodal Agency for Small
Hydro Electric Power projects.
OREDA

shall

be

the

nodal

agency for;
i)

Projects on Water
bodies
Roof Top Solar
Solar Parks
Total
Incentives

On-grid Solar Power Plant

of capacity less than 1
MW.

under

the

Policy

years.

Nodal Agencies shall facilitate

expected

to

specify

of

OPTCL/DISCOM

Exemption

of

Open

Access,

Wheeling and Power Banking

from

various organizations.

Exemption

supervision charges.

obtaining

clearances/approvals

Waiver of equipment testing

fees.

for

Exemption of Electricity Duty

on Aux. consumption for 10

iii) All
off-grid
Renewable
Energy activities in the
State.

Policy

100
1500
2300

expected to be;

ii) On-grid Bio-mass and Biogas power projects.

The

100

charges.

Allocation of Land as per IPR.

Seasonal
provided

addition of around 3000 MW of

industries
with

will

be

facility

of

temporary surrender.

Renewable Power in Odisha by 2022

as part of the National Target.

VAT re-imbursement.

Sector wise break up is given in the

Re-imbursement of Entry tax.

Table below;
Technology
Solar
Wind
Small Hydro
Bio-mass
Solid Waste
Total

Capacity in MW
2300
350
150
180
20
3000

The existing incentives provided

from Central/State Govt. and FIs for
RE projects are
i) Excise Duty Exemption, ii) Income
TAX

holiday,

Depreciation,

iii)
iv)

Accelerated
Remunerative

Further, the segment wise details of

Return on Equity, v) FIT (Feed-in-

2300

Tariff), vi) GBI (Generation based

MW

Solar

addition

is

Incentive,

envisaged as under;
Segment
Land based Projects

Capacity in
MW
600

Energy

vii)

REC

Certificates),

(Renewable
viii)

VGF

(Viability Gap Funding), ix) Interest /

Capital Subsidy, x) Power Banking,

III.

xi) Clean Energy Funding etc.

Funding

instrument

is

DPR has been prepared for 3

MW,
and

available

from IREDA, REC, PFC, FIs, Banks

and FDI etc.

Jambhira
4.2

(Mayurbhanj)

MW,

Kanupur

(Keonjhar) SHEPs.
IV.

GEDCOL & SAIL have agreed

in-principle to develop 15 MW

developers

Mandira SHEP (Sundargarh) in

includes, State Power Utilities, State

JV mode. DPR for the same is

Government Departments engaged

under preparation.

The

list

of

possible

in development of Power Projects,

B) Development

Central Power Utilities, Joint Sector

Municipal

Bodies

and

I.

Power

status

of

Batch-I. The project is being

an EPC contract.
II.

Small
Hydro
57

Small

Govt. Buildings in twin city of

Bio-mass

Cuttack and Bhubaneswar for a

20

total capacity of 5 MW.

III.

Initiatives by GEDCOL;

It is envisaged to set up Solar

Power Plant on Roof Tops of

under;

of

at

constructed by M/s BHEL under

the State is of 120 MW. Details as

A) Status

Plant

Boudh under JNSM Phase-II,

RE

The present RE installed capacity in

43

Power

Manmunda in the district of

projects in the State

Solar

GEDCOL is developing 20MW

Solar

Equipment Manufacturers

Present

Solar

Projects:

Organizations, Independent Power

Producers, Co-operative Societies,

of

Revenue Department has been

requested to allot at least 5000

Hydro

Acres of land to set up of

Projects:

around 1000 MW Solar Plant.

I.

PFR of 13 nos. SHEPs with

approximate capacity of 168
MW have been prepared.

II.

Preparation of PFR for another

IV.

It is proposed to develop Solar

PV Plants on the un-utilized
lands inside Grid Sub-stations
and Hydro Projects.

1 no. SHEP viz. Musal-2 of

approx. Capacity of 10 MW is
under progress.

C) Development

of

Pumped

Storage Plants (PSPs):

I.

PFRs prepared for three nos. of

Pumped
Upper

Storage
Indravati

Plants
PSP,

Being located at the Load

centers, it helps Utilities to

i.e.

reduce stress on the Grid,

Upper

Peak Demand and T&D loss.

Kolab PSP & Balimela PSP near

the existing high head Power

Optimal use of conventional

generation through real time

Stations of OHPC.

demand side management.

II. Out of the three PSPs, DPR is

under preparation for UIHEP
PSP (600MW)

Reduced

electricity

bill,

provision of backup power &

use of spare roof area

Illustration of PSP Projects;

Features
Indravati
Installed Capacity (MW)
600
Annual Generation (MU)

918.97

Project Cost incl. IDC (in

Cr.)
First Year Tariff
(Rs./kWh )
Levellized Tariff
(Rs./kWh )

1600.5
0

Kolab Balimela
320
400
506.6
653.8
0
0
946.1
1403.61
4

2.97

3.22

3.71

2.50

2.70

3.13

NB.:
i) Cost of Power for pumping is an
additional cost.
ii) Power generation shall be 75%
of the Power utilized for
pumping action
iii) Annual generation is calculated
considering
5.5
hours
of
operation per day.

Besides, various private developers

are also coming up for development
of Solar Thermal and Small Hydro
Plants in the State and at different
stages of implementation.

Roof Top Solar

Earning of revenue through

export of power to the Utility
Grid
Reduction

in

emission

of

green house pollutants

Roof Top Solar PV systems are
implemented basically of 3 types
i.e. Grid-connected, Grid-interactive
& Off-grid modes.
The

metering

arrangements

associated with Roof Top Projects

are;

Gross Metering: The entire

energy generated by Rooftop
Solar PV system is fed directly
into the Grid and the system
owner is benefited by feed-intariff based on sale of power

Generation through Roof Top Solar

PV Panel is encouraged due to
following major advantages;

to the utility

Net

Metering:

excess/surplus

The
energy

generated from the Roof Top

A typical example showing cost-

Solar PV is either sold to or

effectiveness

banked with the Utility.

Rooftop installation;

Diagrams;

of

KW

Plant Size
Cost of Plant incl. Battery
CFA @ 15% from MNRE
Net Capital Cost
Debt : Equity
Borrowed Capital (12
years)
Cost of Borrowing
(Bank base rate)
Income Tax slab saving
rate
Effective interest rate
Annual Generation
Retail Tariff (for beyond
200 unit consumption)
Life time generation from
Solar PV (25 years)
Life time saving from RST
w/o escalation
Saving with escalation
4% & 9% discount factor
EMI per month

Avg.

2 KW
Rs. 2,40,000
Rs. 36,000
Rs. 2,04,000
70 : 30
Rs.1,42,800
10%
33.90%
6.61%
3368 kWh
Rs. 5.40/kWh
83950 kWh
Rs. 4,53,330
Rs. 7,55,174
Rs. 1693

calculation

shows

Component cost of Roof Top

requirement

Solar:

shade

A rooftop solar PV system costs

installation/generation of a 1 KW

approximately Rs. 1, 20,000 per kW

size plant, if operated for a

including installation charges with

period of 5.5 hrs daily.

batteries and without considering

Components
Crystalline PV
modules
Inverters
Balance of System
Installation
Battery Back-up
Total

Viability
Rooftop

of

Domestic

Solar

area

for

Capacity Utilization Factor (CUF)

MNRE

provides

15%

of

the

project cost as central financial

Cost in Rs.
52,000
23,000
17,000
8,000
20,000
1,20,000

roof

sq. mtrs.

for Odisha is 17%.

incentives. The cost breakup for a 1

kW system is given below:

free

of 15

Solar

assistance
-

House
construction/renovation

building
loans

include the cost of Roof Top

Solar installation and eligible for
income tax exemption.

RPO,

REC

and

Deviation

meet their RPO.

Settlement
Renewable

Purchase

Obligation

(RPO) is the obligation mandated by

Central/State

Regulatory

Commission and is applicable to

Discoms, Open Access consumers,
Captive consumers etc. The State
Regulators

mandates

certain

percentage of the total electricity

generated/consumed
above

process

through the

to

be

from

renewable sources.

of

the

annual

energy

consumption of the State including

Solar & Non-Solar for FY 2015-16.
GRIDCO being the largest obligated
entity is meeting the RPO target by
procuring 118 MW of Solar and 77
MW of Hydro & Bio-gas sourced
power both from within and outside
of the State.

in

line

guidelines

with

OERC

formulated

the
has

draft

CERC
also

Deviation

Settlement Mechanism regulations

for

forecasting,

deviation

scheduling

settlement

of

and

variable

Renewable Energy sources of 5 MW

and

above

capacity.

The

Commission is under the process of

finalizing the draft regulations.

With large scale reverse e-bidding

bundled green power, the pricing
has come down to Rs. 4.63/kWh
during

the 500

MW

auction

in

Andhra Pradesh won by M/s Sun

Edison of US. Previously this year
the Tariff was quoted Rs. 5.05/kWh
by M/s Sky Power of Canada in
Madhya Pradesh for a capacity of
50 MW.

MNRE is looking forward to enhance

the Solar Purchase Obligation up to
10.5% by 2021-22, which will be
reflected in the targets fixed by
OERC for ensuing years.
Renewable

Further,

Finale

OERC has fixed the RPO target as

7%

obligated entitys requirements to

Energy

Certificates

(REC) mechanism aims to address

the gap between availability

of

Renewable Energy capacity and the

A year wise pricing of Solar Power is

shown below;

Looking to the RE generation at

competitive rates with Grid supply
and

technology

innovations

like

Ultra capacitors etc for temporary

storing of Power, Renewable Energy
System

will

play

vital

role

in

reducing the base load presently

being met by coal/gas, thereby
reducing pollution, besides saving
water in the Hydro Plants and will
pave the way for huge capacity
addition and a vast market for the
RE

business

making

it

another

sustainable & commercially viable

proposition. Odisha has made basic
preparations

and

is

planning

strongly to achieve the designated

goals.

***