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Confidential
Solar Power Business
Aditya Birla Group Gajanan Joshi [email protected] 31 October, 2014
Solar Power Development: Expectations of Developers
Confidential
Solar Power Business
Aditya Birla Group Overview
1. A US $40 billion Multi-National Corporation
2. 50 companies across 6 continents in 36 countries
3. Over 130 state-of-the-art manufacturing units
4. Over 53% revenues from international operations
5. Anchored by 136,000 employees of 42 different nationalities
6. Ranked No. 4 in the Global “Top Companies for Leaders” survey and ranked No. 1 in Asia Pacific (Aon Hewett, Fortune Magazine and RBL)
GLOBAL:
• The largest aluminum rolling company • Top three producers of primary aluminum in Asia • The largest single location copper smelter • The largest producer of viscose staple fibre • The largest manufacturer of linen fabric • The No. 1 producer of carbon black • The 4th largest producer of insulators • The 4th largest producer of acrylic fiber • Among the top 8 cement producers • Among the best energy efficient fertilizer plants • The largest Indian MNC with operations in the USA
INDIA:
• The top fashion (branded apparel) player • The largest producer in the chloralkali sector • The largest manufacturer of linen fabric • The 2nd largest producer of viscose filament yarn • A leading player in Life Insurance and Asset Management • Among the top 3 mobile telecom players • Among the top 3 Value Retail Chains in India • Among the top 6 BPO companies • A leading agriculture solutions provider
2
Confidential
Solar Power Business
5 MW Vituja,
Rajasthan FY12
15 MW Charanka,
Gujarat FY13 60 MW
Rajasthan, Telangana
FY14
Aditya Birla Group’s Solar Journey Execution Experience
• Platform formation in 2011 • Headquartered in Mumbai, Maharashtra • 25 Team Members
3
Confidential
Solar Power Business
Installation Photos 15MW in Three Months
Week 1 Week 3 Week 5
Week 7 Week 9 Week 12
4
Confidential
Solar Power Business
Rajasthan – Bhadla Solar Park 20MW in Four Months
5
Confidential
Solar Power Business
Telangana 35MW (4 Projects) 3 to 4 months ahead of PPA schedule
6
Confidential
Solar Power Business
Solar Business Aditya Birla Group Expertise
Project Manageme
nt Experience
Strong Fund Raising Ability
Extensive Power Sector
Expertise
Pan Indian Presence /
Local Expertise
Top Class Execution
Team
Best Equipped to address the Solar Requirements
Over 3GW rising to 6GW of captive power
Investments of over USD 48 billion in the
next 5 years
80MWp executed in record time
Investments in all major states in India
World class talent recruited
Confidential
Solar Power Business
• Start Date: May 23, 2011
• Commissioning Date: October 14, 2011
• Technology: Crystalline Silicon Modules (275 Wp) Three Phase String Inverters (17 kW) Fixed tilt
• Power Evacuation: 33 kV Grid
• ABG’S Role: Leasing of plant and machinery Design review and approval Selection of equipment Sourcing of key plant components Project Management
Solar Business Execution Experience
5MW Project in Rajasthan 15MW Project in Gujarat
• Start Date: Nov 14, 2011
• Commissioning Date: Jan 27, 2012
• Technology: Crystalline Silicon Modules (235/240 Wp) Central Inverters ( 500 kW) Seasonal tilt
• Power Evacuation: 66 kV Grid • ABG’S Role:
Project funding Design review and approval Selection of equipment Sourcing of imported components Project Supervision
Confidential
Solar Power Business
Solar Business | Project Locations
20 MW – 1 Project
35 MW – 4 Projects
Solar Business Rajasthan and Telangana Project Locations
Confidential
Solar Power Business
Expectations/Suggestions: Achieve Solar Targets
Note: This story has been updated to reflect the fact that the World Bank Doing Business 2015 report covers the period from June 2013 to May 2014 (when the UPA was in power).
“Ease of Doing Business” Ranking – 142nd
Starting Business – 158th Dealing with Construction Permits – 184th Enforcing Contracts – 186th 13 procedures to Start – 30 Days as against 4.8 procedures to Start – 9.2 Days
China – 90th Sri Lanka – 99th Nepal – 108th Bhutan – 125th Pakistan – 128th
Bangladesh – 173rd Afghanistan – 193rd
7th ranking in “Protecting Minority Investors”
World Bank Doing Business Report 2015
Confidential
Solar Power Business
Expectations/Suggestions: Achieve Solar Targets
1. Clearer Target Setting: a) Break down the 5 year plan targets to yearly targets and plans. b) It shall provide clear roadmap for all the stake holders such as
Developers/EPC/Suppliers/State c) Better planning of resources avoiding slack period in between business spikes,
improving the economic aspects of the sector.
2. Infrastructure Coordination among Government Entities: a) The nodal agencies to firm up the plan with various power off-takers (with
whom they are planning to have PSA) b) It shall include the binding parameters viz. Transmission/Distribution availability
time & off-taking capacity c) Single Window Clearance Mechanism – State level and Central Level
Confidential
Solar Power Business
Expectations/Suggestions: Achieve Solar Targets
3. Solar Park Development: a) The nodal agencies develop the Solar Parks with infra-structural facilities b) It shall establish associated infrastructure like Land Development, Internal
Roads, Fencing, Water connectivity, power evacuation facility between Solar plant and the designated GSS etc.
c) The nodal agency to shoulder the Land Acquisition tactivity. d) The Park can be also developed on the basis of PPP model where there shall
be separate independent tenders for solar park development
4. Project Monitoring:
a) Setting of strong joint monitoring and problem resolution committee (Nodal Agency + Solar Park Developer + Transcom + Discom + Developer) to timely liquidate the issues and ensure the completion of the respective scope of work.
b) This is to ensure timely commissioning of the Solar Projects.
Confidential
Solar Power Business
Expectations/Suggestions: Achieve Solar Targets
5. RPO Target Setting: a) State agencies to coordinate closely with the CERC and SERC for setting up of
RPO targets with long term visibility and develop an effective mechanism to achieve the same in a time bound manner.
6. RPO Implementation and Enforcement:
a) The State Regulatory authorities to strictly enforce the RPO. b) The cost of avoidance should be significantly higher than the cost of
compliance.
7. Electricity Act Modification: a) Strong and Concerted approach to influence policy makers and legislatures to
ensure recognition of Solar Power from other energy saving approaches
Confidential
Solar Power Business
Expectations/Suggestions: Achieve Solar Targets
8. Promotion of Renewable Power: a) Implementation of Open Access facilities for interstate sale of Solar Power b) Provision of banking and wheeling benefits c) Provide large capacity opportunities for developers to explore the volume benefit and try to pass
on as much benefit possible to off takers and society.
Confidential
Solar Power Business
Expectations/Suggestions: Achieve Solar Targets 9. Implementation of FIT
a) The pace of Solar Project implementation is very slow b) Speculative bidding pattern is significant: providing success in bidding but poses severe
challenges in the implementation . c) Based on the prevailing CERC/SERC tariff – define the FIT and invite the developers to
implement large capacity Solar Projects. d) The developers with sound financial and execution capabilities shall be encouraged to develop
large capacities in shortest possible durations. e) It will be free from the negatives of the speculative biddings f) The lenders/investors will be more comfortable and can plan for long term horizon g) The developers are able to plan on long term basis. h) The success rate of Solar Power realisation shall be very high i) Highest probability of achieving the Solar Mission Targets.
Confidential
Solar Power Business
Effect of Feed in Tariff
German PV Sector Growth
EEG - Erneuerbare-Energien-Gesetz (German Renewable Energy Act) Source: GIZ
In terms of policy, India is still in the stage that Germany was in 2000-04 and experimenting with different policies.
Confidential
Solar Power Business