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Solar energy bid process in IndiaGrid connectionsRoof Top SystemsMNREGoI
Citation preview
Grid-connected SPV Rooftop systems
Dr. Arun K Tripathi Director,
Government of India
Ministry of New and Renewable Energy
MNRE
Grid-connected SPV Rooftop systems Concept
These are SPV systems installed on rooftops
of residential, commercial or industrial
premises.
Electricity generated could be
-fed into the grid at regulated feed-in tariffs or
-used for self consumption with net-metering
approach
MNRE
Grid-connected SPV Rooftop systems Concept
MNRE
Grid-connected SPV Rooftop systems Advantages ..
Savings in transmission and distribution losses
Low gestation time
No requirement of additional land
Improvement of tail-end grid voltages and
reduction in system congestion with higher
self-consumption of solar electricity
Local employment generation
MNRE
Growth of Solar Capacity (MW)
3 11 36
936
1684
2101
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
So
lar
Ca
pcit
y (
MW
) State MWp % Gujarat 860.4 41.0%
Rajasthan 656.15 31.2%
Maharashtra 207.25 9.9%
Madhya
Pradesh 162.315
7.7%
Andhra
Pradesh 68.9
3.3%
Uttar
Pradesh 17.375
0.8%
Tamil Nadu 28.18 1.3%
Jharkhand 16 0.8%
Karnataka 24 1.1%
Orissa 15.5 0.7%
Punjab 9.325 0.4%
Haryana 7.8 0.4%
West Bengal 7.05 0.3%
A & N Island 5.1 0.2%
Uttarakhand 5.05 0.2%
Chhattisgarh 7 0.3%
Delhi 2.6 0.1%
Lakshadwee
p 0.8
0.0%
Roof top PV-Towards grid parity
Source:KPMG
By 2017 roof top solar power cost will reach the grid parity.
Benefits of Roof top PV
On national level, reduces requirement of
land for addition of solar capacities.
For consumers, it
Reduces the dependency on grid power.
Mitigates diesel generator dependency.
Long term reliable power source.
For Discoms, it reduces
Day Peak load Demand
T&D and conversion losses as power is consumed
at the point of generation.
Most suitable for commercial establishments
Max generation during peak usage time.
Solar power cost is close to the commercial power
cost.
Roof top PV potential in INDIA According to 2011 Census India is having
330 million houses.
166 million electrified houses.
76 million houses uses kerosene for lighting.
1.08 million houses are using solar for lighting.
140 million houses with proper roof (Concrete or
Asbestos / metal sheet).
130 million houses are having > 2 rooms.
Average house can accommodate 1-3 kWp of
solar PV system.
The large commercial roofs can accommodate
larger capacities.
As a conservative estimate, about 25000 MW
capacity can be accommodated on roofs of
buildings having > 2 rooms alone if we
consider 20% roofs.
Grid-connected SPV Rooftop systems
World-wide Experience ..
Germany, USA and Japan are leaders in adopting grid-connected SPV Rooftop systems.
Germany has highest PV installed capacity of 36.0 GW of which 71% is in rooftop segment (as on 31.05 .2014).
Italy has 12.7 GW PV installation with over 60% rooftop systems
In Europe of total 50.6 GW PV installation, over 50% in in rooftop segment.
FIT is norm in Europe while net-metering is popular in USA.
MNRE
PV market segments in Germany
Image : Solarwatt
Private buildings:
1-10 kWp
Social, commercial,
agricultural buidlings:
10-100 kWp
Image : Solarwatt
Image: Sharp
Image : BP
Large commercial
buildings:
> 100 kWp
Image : Schco
Image : Geosol Image:
Geosol
Image: Grammer
10% 38% 23%
Source: BSW-Solar, E.Quadrat GmbH
Gro
un
d-m
ou
nte
d R
oo
fto
p
Bu
ild
ing
in
teg
rate
d
Germany 1000 Roofs Programme 1991-1995
Only German producers (local contentCapital Grant of 70% of investment provided(50% by the federation and 20% by Federal States)
Grid connected PV installation with 1-5 kWp rooftops of single and two family houses were eligible
Every installation had to install 3 meters:
- Generation meter, metering at production
- Feed-in-Meter, metering at fed electricity
- Import Meter, metering the purchased electricity
Obligation for installation operators to record over 5 years monthly meter results
MNRE
Loan Programme through KfW
300 MW of newly installed capacity from PV
Loans at reduced rate of interest (soft loan)
Interest rate of 1.91%
Installations of min. 1kWp of individuals,
Freelansers or SMEs
Germany 100,000 Roofs Programme 1999-2003 MNRE
TOP 3 PV success factors in Germany
1. EEG Feed-in law (20 year state guaranteed FIT , RE feed-in priority,
one simple national binding scheme)
Attractive business case for all kind of investors from house owner to international investment trusts created
2. Long term & stable legal framework
Non-recourse project financing enabled
3. Quality standards (establishment of high technical standards &
development of qualified technical resources e.g. EPCs / integrators)
Secure long term yields and system security
MNRE
Grid-connected SPV Rooftop systems World-wide Experience .. USA
Net metering is popular in 43 States but specific
rules defer from States to States.
Energy Policy Act 2005 mandates all public
electricity utilities to make net metering options
available to all customers.
California had maximum installed onsite
customer generated solar capacity of 991 MWp
with 1,01,284 net metering consumers from
115000 sites.
MNRE
Net Metering mechanism
The Net Metering mechanism shall allow the consumer to reduce its electricity import
The utility benefits by avoiding purchase of electricity from short term market
Electricity generation at load center also minimises the loss of electricity in wires
Capacity for development under Net Metering Mechanism may be allowed in phases to take care of the following aspects.
Equivalent to suitable percentage the utility propose under the intra state network losses or
Capacity projected for purchase of Short Term market
Financial viability
MNRE
Business Models for Net Metering 1 Consumer end model
C1
C2
C3
Cn
DISCOM
Consumers are owners of the
facility
Challenges:
Limited know-how of installing and
operating
Limited know-how for requirements of approvals and clearances
Administration cost of utility may increase
Utility needs to interact with consumers, energy accounting on individual basis
MNRE
C1
C2
C3
Cn
DISCOM
Business Models for Net Metering 2 Consumer end Community based model
Repre
senta
tive
Capacities may be bundled by a facilitator/ representative who
undertakes necessary formalities and
may avail subsidy for consumers
Administration cost of utility less compared to earlier model
Utility needs to interact with facilitator/ representative of
consumers/owners
Energy accounting at community level
Sharing of benefits among consumers may take place on the basis of their
contribution
MNRE
Business Models for Net Metering 3 RESCO/3rd party model based on FIT
C1
C2
C3
Cn
3rd Party
RESCO/3rd party shall supply electricity to the DISCOM at
determined FIT
DISCOM may also call for competitive bidding for selection of RESCO/3rd
Party
RESCO makes investments for installing facilities at consumers roof
Consumers get suitable rent for lending their roofs
3rd Party gets subsidy from the MNRE
Energy accounting takes place at consumer end
Utility purchases solar electricity for meeting RPO
DISCOM
MNRE
Emerging Market Models for Net Metering 4 3rd Party model based on consumer tariff bidding
C1
C2
C3
Cn
3rd
Party
Selection of RESCO/3rd Party at upper cap estimated by DISCOM
Consumer gets net energy metered at its premise
Consumers get suitable rent for using their roofs which shall reflect
in their electricity bills
3rd Party gets subsidy from MNRE
Streams of revenue include,
Sale of electricity to DISCOM Sale of RECs Tax Benefit, Accel. Depreciation
benefit etc.
DISCOM
Consumer tariff assumed
to be increasing
MNRE
Grid-connected SPV Rooftop systems Indian Experience: Initiatives by West Bengal
Grid connected rooftop is allowed only for
institutional consumers with 2-100 kW size
Connectivity is allowed at low or medium
voltage(6 kV or 11 kV) of distribution system
Solar injection is permitted only upto 90% of
annual electricity consumption.
Net energy supplied by the utility to be billed as
per existing slab tariffs.
Solar generation to offset consumption in the
highest tariff slab and then the lower slab.
MNRE
Grid-connected SPV Rooftop systems Indian Experience: Initiatives by West Bengal
As per recent policy All existing and upcoming commercial and business establishments having more than 1.5 MW contract demand to install SPV rooftop systems to meet at least 2% of their total electrical load
All existing and upcoming schools and colleges, hospitals, large housing societies, and and Govt. establishments having more than 0.5 MW contract demand to install SPV rooftop systems to meet at least 1.5% of their total electrical load.
Policy targets 16 MW of rooftop and small PV installations by 2017.
MNRE
Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Gujarat
Gandhinagar city initiated a 5 MW(4 MW in Govt.
buildings and 1 MW in private homes) rooftop PV
programme based on FIT/sale to utility.
Two project developers for 2.5 MW each selected
through reverse bidding with GERC cap of rs.
12.44/kwh.
Torrent Power will buy from Azur @ Rs. 11.21/kWh for
25 years and Azure will pass on Rs. 3.0/kWh to
rooftop owner as roof rent.
Recently 5 more cities-Bhavnagar Mehsana, Rajkot,
Surat and Vadodara started installing pilot rooftop
projects.
MNRE
Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Karnataka
As per new RE policy 2009-14, State to promote rooftop with net metering.
System size to be 5-100 kW and interconnection at 415 V, 3 phase or 11 kV.
Maximum energy injection allowed upto 70% of energy usage at site from DISCOM.
Energy injection to be settled on net basis in each billing period, no carry forward.
MNRE
Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Karnataka
25000 PV rooftops of 5-10 kWp size with
net metering targeted during next 5 years
with 250 MW potential and 350 MU
generation.
Grid connected PV rooftop projects to be
given priority under Green Energy Fund.
Pilot projects may come up in Mysore and
Hubli-Dharwad solar cities.
MNRE
Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Tamil Nadu
As per State Solar Policy 2012 350 MW SPV rooftop targeted during 2012-2014.
50 MW rooftop to be supported through
GBI @ Rs. 2.0/kWh for the first 2 years,
Rs. 1.0/kWh for the next 2 and Rs.
0.50/kWh for other 2 years.
Net metering will be allowed at multiple
voltage level
MNRE
Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Tamil Nadu
Interconnection to be as follows: < 10 kW - connection at 240 V
10 to 15 kWp - connection at 240/415 V
15 to 50 kWp - connection at 415 V
50 to 100 kWp - connection at 415 V
100 kWp - connection at 11 kV
Exemption from payment of electricity tax will be allowed for 5 years for 100% solae electricity used for self/sale to utility.
All new Govt./Local body buildings shall necessarily install PV rooftops.
MNRE
Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Chandigarh
5.14 MW projects of SPV grid connected
PV rooftops projects sanctioned for
model solar city are under installation of
which 2.00 MW commissioned.
DISCOMS agreed to purchase power and
JERC has given rates for a project.
MNRE
Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Chandigarh
Interconnection to be as follows:
-Upto 10 kW : Low voltage single phase
-10 kW to 100 kW :3 phase low voltage supply
-100 kW to 1.5 MW : Connection at 11 kV level
-1.5 MW to 5.o MW : Connection at 11 kV/33
kV/66kV as per site conditions
Petition filed with the JERC and the
finalization of rate in progress
MNRE
Grid-connected SPV Rooftop systems Indian Experience: Initiatives by Kerala
10,000 solar PV rooftops recently launched
with 1.0 kWp each system of total 10 MW
At present only off grid system covered but
Kerala has plans to launch 75,000 grid
connected rooftops soon.
Rs. 39,000/- state subsidy is available for
each 1.0 kWp system
Grid-connected SPV Rooftop systems Action being initiated ..
CEA has notified Technical Standards for Connectivity of the Distibuted Generation Resources-CEA Regulations 2013 in October 2013 which permits the grid connectivity of SPV rooftop also.
CEA has submitted a draft CEA (Installation and Operation of Meters- Regulation 2013 to M/o Power for approval for metering arrangement for inter connection of SPV rooftop with grid.
CERC has brought out the draft guidelines for grid connectivity and metering arrangements for SPV rooftops.
MNRE
Grid-connected SPV Rooftop systems Action being initiated ..
MNRE has included Grid connected SPV rooftops in the off grid and decentralised solar Applications scheme vide ammend no. 5/23/2009-P&C dated 30th October 2012 for SPV plants upto 100 kW capacity.
MNRE subsidy upto 30% on the following benchmark cost of the projects is available : Upto 100 kWp : 100 Rs./Wp
100 to 500 kWp : 90 Rs./Wp
A separate scheme on Grid connected rooftops and small solar systems has been formulated which is under approval
MNRE
Grid Connected Rooftop and Small Solar Power Plants Scheme of MNRE
Objective of the scheme is to promote the grid connected SPV rooftop and small SPV power plants in the residential, community, institutional, industrial and commercial establishments.
Project capacity of 1.0 kW to 500 kWp per project/system
Implementation through programme (upto 50 kWp ) and project modes(above 50 kWp)
Implementing agencies- SNAs, Solar Energy Corporation of India(SECI), Channel Partners, FIs/Financial Integrators, Other Govt. Departments/Agencies/PSUs etc.
CFA is 30% of the benchmark for general and 70% CFA for NE and Special Category States for Govt. projects.
300 MW target for the 12th FY Plan
Grid-connected SPV Rooftop systems Action initiated ..
29.1 MWp SPV grid connected rooftop project sanctioned under NCEF funding are under execution by SECI (26.6 MWp) and Ministry of Railways(2.5 MWp).
50 MWp SPV grid connected rooftop project approved under NCEF funding sanctioned to SECI.
MNRE sanctioned 43.254 MWp projects to 10 States; AP,MP, Rajasthan, Punjab, Chandigarh, Kerala, Uttarakhand, Gujarat, Uttar Pradesh, Tamil Nadu.
4 MWp projects in Surat, Chandigarh and Nagpur Solar Cities are under execution of which 2 MWp projects in Chandigarh completed.
MNRE
Grid-connected SPV Rooftop systems Actions required by States
Remaining States to announce suitable
policies on grid connected PV rooftop
systems
States to establish dialogue with
DISCOMs and finalize suitable tariff.
DISCOMs to formulate and sign PPAs,
States to set up few pilot projects.
MNRE
Key Considerations.
Lack of public domain knowledge of technical standards
and guidelines for grid connectivity, metering, safety and
security
Energy accounting and commercial settlement
guidelines for grid connected solar rooftop projects still
evolving
Regulatory provisions relating to applicability of charges
relating to wheeling, open access, cross subsidy etc. for
solar rooftop projects needs to be clarified
Projects so far, implemented in India, have been either
under gross metering arrangement or on captive
consumption arrangements
Roof Space requirement for rooftop system
10-15 sq. meter roof space is required for
1.0 kW system
A 100 sq. meter roof space can have
8- 10 kW SPV system
Cost of 1.0 kW system is about
Rs. 1.00 lakh
30% CFA is available from MNRE
MNRE
Economics of Grid Connected Rooftop (100 kWp Rooftop Plant)
Capital Cost : Rs. 80 Lakh
Subsidy (30%) : Rs. 24 Lakh
Net Cost to Customer : Rs. 56 Lakh
Avg. Annual Generation : Rs.1,50,000 kWh
Annual Revenue(@Rs.7.0/kWh): Rs 10.5 lakh
Simple pay back : 5.33 years
Avg. elect. generation cost : Rs. 8.0/kWh (without Subsidy)
Avg. elect. generation cost : Rs. 5.60/kWh (with Subsidy)
Potential of SPV rooftop
One million industrial units and each
with average 500 sq. meter rooftop
space can have about 25,000 MWeq Solar
PV rooftop installations.
Only 800 Kendriya Vidyalayas in India can
host about 20 MW eq. Solar PV rooftops.
About 100 million houses can install 100
million 100,000 MW eq. Solar PV rooftops.
and so on
MNRE
360 kWp Solar grid connected rooftop plants at Super Auto Forge, Chennai
Rooftop SPV system (50 kWp) at
Paryawaran Bhawan, Chandigarh
25 KWp SPV Plant at Police Hq, Chandigarh
70 KWp SPV Plant at Govt Multi Speciality Hospital , sec-16, Chandigarh
Thank You
MNRE
June 17, 2014
Bhopal
Design of Framework for Implementation of Rooftop Solar
Photovoltaic Projects
Project Partners
Presentation on proposed transaction framework in Bhopal, Jabalpur and Indore
2014. Deloitte Touche Tohmatsu India Private Limited.
Contents
About the Project
Proposed Transaction Framework
Business Model
Commercial
Bid Process Management
Key Timelines
Salient Features
RFP
PPA, PIA
About the Project
2014. Deloitte Touche Tohmatsu India Private Limited.
About the Project
Pilot Rooftop Solar Photovoltaic project of an aggregate capacity of 5 MW to be deployed in the cities of Bhopal, Jabalpur and Indore
Project to be deployed under gross metering mechanism wherein entire power procurement to be done by MP Power Management Company Ltd. (MPPMCL)
Project to receive support in the form of central financial assistance of upto Rs. 15 Cr (Rs. 3 Cr/MW) towards capital subsidy
Subsidy to be routed through MP Madhya Kshetra Vidyut Vitran Company Ltd. (MPMKVVCL) for disbursement
Entire capacity of 5 MW envisaged to be deployed on public rooftops (state govt. and state PSU buildings) and preferably on a zero lease rental basis
Selection of private developers shall be through a competitive bidding process
4
Proposed Transaction Framework
- Business Model
- Commercial Arrangements
2014. Deloitte Touche Tohmatsu India Private Limited.
Business Model
6
Project Bidders Project Off Taker Incentive
Structure
Solar Project
Developers
EPC Players
Govt.
Buildings
Quoted
Tariff &
Capital
Subsidy
Public Buildings
Zero Lease Rental
Incentives for
Leasing of
Rooftop
Interconnect
provider & Energy
Accounting
State
Discom
MPPMCL
Off-taker
2014. Deloitte Touche Tohmatsu India Private Limited.
Commercial Arrangements
7
Rooftop Owner
(Lessor)
Developer
(Lessee)
MPPMCL
Nodal Agency
Quoted Tariff & Quoted
Project Cost
Capital Subsidy
Lease Agreement
Project Implementation
Agreement (PIA)
Power Purchase
Agreement (PPA)
Commercial Relationship / Agreements
Financial Obligations
(Central Discom)
MNRE
Zero Lease Rental
Bid Process Management
8
2014. Deloitte Touche Tohmatsu India Private Limited.
Bid Process Management ..1
Single Bid Process to allow participation for all three (3) cities
Single stage two envelope bidding to be conducted for selection of Bidders
Technical Bid to provide shortlisting of Bidders
Financial Bid of qualified Bidders to be opened for evaluation and selection
RFP Documents to be uploaded on the websites of MPPMCL and MPMKVVCL
Pre-bid conference to be held in Bhopal/Jabalpur for all three (3) cities for Bidders queries on RFP documents
9
2014. Deloitte Touche Tohmatsu India Private Limited.
Bid Process Management ..2
Portfolio Attractiveness
Total project size of 5 MW to be awarded in three (3) packages to three (3) different Bidders as shown below:
Technical survey of public rooftops has been completed and more than 5 MW has been estimated as deployable capacity
Bidders to submit a Bid Bond for Rs. 5 lakh/MW at the time of submission of bid in the form of a bank guarantee as per the format specified in RFP
Bidders Structure
- Bidder can be a Bidding Company or a Bidding Consortium with the no. of members not exceeding
three (3) in no. including the Lead Member
- Bidding Company/Member can utilize the credentials/strength of its Affiliate/Parent/Ultimate Parent to
meet the qualification requirements
10
Proposed Package Cities Capacity (MW)
Package 1 Bhopal 2 MW
Package 2 Indore 2 MW
Package 3 Jabalpur 1 MW
RFP Salient Features
11
2014. Deloitte Touche Tohmatsu India Private Limited.
Minimum Qualification Criteria
Technical Qualification Criteria 1. Experience of development & commissioning of solar PV projects of at least 1MW capacity
(on individual or aggregate basis) as a developer or as EPC provider in the last five (5) years
Development means successful commissioning of project in which developer held equity stake of not less than 26% at the time of commissioning
In case of EPC experience, Bidder to submit certificate from respective developer(s) for demonstration of successful commissioning of such projects
AND
2. Experience of installation and commissioning of at least one rooftop solar power project of
at least 10 kW or furnish undertaking to engage an EPC contractor or an independent
technical expert having experience of installation & commissioning of rooftop solar power
projects
Financial Qualification Criteria
Net worth should be equal to or greater than Rs 2 Crore per MW or equivalent USD for the most recent financial year preceding the Bid Deadline
A Bidder submitting its Bid for all three (3) cities shall be required to meet the Networth requirement of Rs. 10 Cr.
12
2014. Deloitte Touche Tohmatsu India Private Limited.
Minimum Equity Lock In Requirements
Minimum Equity to be held by the Promoter(s)
No change in the shareholding to be permitted from the date of submitting RFP bid and till the execution of the PPA
After execution of PPA, the controlling shareholding (controlling shareholding shall mean at least 26% of the voting rights) in the Company developing the project shall be maintained
up to a period of five (5) years post COD
Bidding Company allowed to form a Project Company for submission of bid/signing the PPA. In case of a Consortium, formation of Project Company is mandatory
In case of a Consortium, the Lead Member shall continue to hold at least 51% (fifty one percent) of the subscribed and paid up equity in the Project Company up to a period of 2
(two) years after Commercial Operation Date of the relevant Project and at least 26%
(twenty six percent) for a period of 3 (three) years thereafter.
13
2014. Deloitte Touche Tohmatsu India Private Limited.
Selection Criteria ..1 Hybrid Model capturing Capital Cost and Tariff based bidding
Bidding Criteria based on the following:
Capital Cost for the identified capacity (with a ceiling of Rs. 10Cr/MW)
Tariff equivalent to or lower than specified ceiling* in RFP
Selection Criteria based on the following:
Total Capital Subsidy requirement based on Rs. 3 Cr/MW shall be identified
NPV of Quoted Tariff for 25 years shall be added to the above
Bidder having the lowest payout shall be selected as Successful Bidder
Bid Illustration to be shared with the Bidders in the RFP document
Illustration
Project Size = 1 MW; Life of Project = 25 Years ; Discount rate : 10.20% as per MPERC Order
CUF :19% with 1% deration every year as per MPERC Order
14
Bidder Capital Cost
(Rs Cr/MW)
A
Capital
Subsidy (Rs
Cr/MW)
B = (30%*A)
Tariff
(Rs/Kwh)
C
NPV of Power
Purchase Cost (Rs Cr)
D = NPV of PPC for 25
years)
Total Outlay on
Project (Rs Cr)
B+D
B1 10 3 8.55 12.54 15.54
B2 6.75 2.025 6.44 9.44 11.47
B3 6.5 1.95 6.5 9.53 11.48
Ceiling for quoted tariff to be based on most recent competitive bidding In the above illustration, Bidder B2 emerges as the successful Bidder for a capacity of 1 MW
2014. Deloitte Touche Tohmatsu India Private Limited.
Selection Criteria ..2
In the event of tie between two Bidders, selection to be based on the actual Networth of
Tie Bidders
In case a Tie Bidder is a Consortium, the Networth of Lead Member shall be considered for evaluation
In the event, a Qualified Bidder emerges as the successful Bidder for both the packages, then it shall be awarded the package for which it has quoted the lowest tariff
In the event, the lowest tariff/cost as quoted by the Qualified Bidder emerges to be the same for both the packages, then such Qualified Bidder shall be awarded one (1) package
with the principle that the other package shall be awarded to the next lowest qualified
Bidder who has quoted the next lowest tariff for the packages
15
2014. Deloitte Touche Tohmatsu India Private Limited.
Formats for Bid Submission
1. Covering Letter
2. Power of Attorney
3. Consortium Agreement
4. Letter of Consent from Consortium Members
5. Bidders composition and ownership structure
6. Qualification Requirement (Technical Criteria, Financial requirement)
7. Performance Bank Guarantee
8. Undertaking
9. Board Resolutions
10. Earnest Money Deposit/ Bid Bond
11. Financial Bid
12. Checklist for Bid submission requirements
13. Disclosure
14. Format for certificate of relationship of Parent Company or Affiliate with the Bidding Company or with
the Member of the Bidding Consortium, including the Lead Member
15. Undertaking with respect to rooftop solar experience
16. Authorization from Affiliate/Parent/Ultimate Parent for utilizing credentials by Bidder
16
2014. Deloitte Touche Tohmatsu India Private Limited.
Time Schedule
17
Event Duration
1 Issuance of RFP T0
2 Pre Bid Conference and issuance of
revised RFP documents, if required T0+15 days
3 Submission of RFP bid T0+ 45 days
4 Evaluation of Technical Bids and
shortlisting of Qualified Bidders T0+65 days
5
Evaluation of Financial Bids of
Qualified Bidders
T0+75 days
6 Issue of Letter of Intent Within 15 days from evaluation of proposals (T0+90 days)
7 Execution of Agreements (PPA, PIA &
Lease for public rooftops) Within 30 days from the date of issue of LoI
8 Financial Closure of the project 90 days from the date of signing of PPA
9 Commissioning of the Project 12 months from the date of signing of PPA*
*MNRE Sanction letter allows for an implementation period of 12 months starting 31st Dec. 2013. Accordingly the
implementation period may reduce for the project
PPA, PIA Salient Features
18
2014. Deloitte Touche Tohmatsu India Private Limited.
Scheduled Commissioning & LDs (PPA, PIA)
Performance Guarantee: Computed at the rate of Rs. 10 lakhs/MW of contracted capacity
To be submitted within 30 days of issuance of LoI
Scheduled COD: Within 12 months from signing of PPA (Phased Commissioning)
First Phase having not less than 10% of contracted capacity within three (3) months from Effective Date
Second Phase to have at least 60% of contracted capacity within nine (9) months from Effective Date
Third Phase: Balance of contracted capacity not later than Scheduled COD
In case of delay in Scheduled COD, MPPMCL entitled to encash the Performance Guarantee in the following manner:
Delay upto 2 month Rs 10,000/MW per day
Delay of more than 2 month & upto 6 months Rs 15,000/MW per day
Beyond 6 months from Scheduled COD: Termination of PPA
Independent Engineer:
Appointment to be done by MPPMCL with costs being borne by the Project Developer
Independent Engineer to verify the monthly progress reports to be made available by the developer including the verification of the technical specifications and verify the results of the commissioning
tests for each Unit and issue certificate for the same to the developer
19
2014. Deloitte Touche Tohmatsu India Private Limited.
CUF Requirements & CDM
CUF requirements:
Minimum CUF requirement : At least 13% in each Contract Year
Maximum CUF: Distribution Utility obliged to purchase energy corresponding to not more than CUF of 22 % in any Contract Year
Sharing of CDM Benefits: In the event, the Solar Company gets CDM benefits, it shall be shared with the utility starting from 100% to the Solar Company in the first year after COD
and thereafter being reduced by 10% every year till the sharing becomes equal to 50:50 in
the sixth year and then shall remain equal till the rest of the term of the Agreement
20
2014. Deloitte Touche Tohmatsu India Private Limited.
Payment Security Mechanism (PPA)
Letter of Credit MPPMCL shall provide to Project developer, in respect of payment of its Monthly Bills and/or
Supplementary Bills, a monthly unconditional, revolving and irrevocable letter of credit (Letter of Credit),
Term of twelve (12) Months and shall be renewed annually, for an amount equal for the first Contract Year, equal to
for the first year, equal to 1.1 (one point one) times the estimated average Tariff Invoice based on Normative CUF of the project
for each subsequent year, equal to the one point one (1.1) times the average of the monthly Tariff Payments of the previous Contract Year
21
2014. Deloitte Touche Tohmatsu India Private Limited.
Key Obligations of Distribution Utility
Key obligations of the discom under the PPA shall include; Facilitating in getting interconnection for the project to the nearest grid point as per technical
schematic approved by the Independent Engineer
Ensuring grid availability for the identified feeders
Allow the project to run as a must run generating facility subject to the provisions of the PPA
Ensure monthly meter reading with the solar companys representative based on the billing schedule
Ensure timely payment of monthly invoices as specified in the PPA
Provide adequate payment security mechanism to ensure PPA bankability
22
2014. Deloitte Touche Tohmatsu India Private Limited.
Thank You
23
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2014 Deloitte Touche Tohmatsu India Private Limited
2014. Deloitte Touche Tohmatsu India Private Limited.
Contractual Arrangements
Project Implementation Agreement Parties: MPMKVVCL (on behalf of Govt. of MP) & Project Developer
Key Features:
Role of developer: To Design, Construct, Develop, Operate & Maintain the project
Role of MPMKVVCL: To Facilitate approval of lease of public rooftops, monitoring of project, appointment of Independent Engineer, disbursement of subsidy
Provisions for Liquidated Damages (LDs), Force Majeure (FM), Dispute Resolution etc. between the parties
Power Purchase Agreement
Parties: Project Developer & MPPMCL
Key Features:
Role of developer: To Design, Construct, Develop, Operate & Maintain the project
Role of MPPMCL: Allow project to run as must-run facility, accept all Delivered Energy up to Contracted Capacity, pay to Developer the lower of Quoted Tariff/Base tariff for Delivered energy & Deemed Generation)
Provisions for LDs, FM, Dispute Resolution, Renewable Purchase Obligation (RPO) compensation payments etc. between the parties
Lease Agreement
Parties: Project Developer & Rooftop owner
Key Features:
Role of Developer: To Design, Construct, Develop, Operate & Maintain the project
Role of rooftop owner: Provide rooftop access to the developer, Termination & Relocation of the project, Provisions for FM, Dispute Resolution etc. between the parties
27
PV ROOFTOP - GLOBAL PERSPECTIVES
Pic
ture
s:
SO
LO
N E
ne
rgy, G
IZ
5 MW RTPV Solar Project in the state of Madhya
Pradesh Investors Meet, 17.06.2014, Bhopal Timon Herzog, GIZ / ComSolar
Federal enterprise to support the German Government in achieving its objectives in the field of international cooperation for sustainable
development
Operations in Germany and in over 130 countries around the world
Around 17,000 employees
Operates in India since 60 years, currently 250 staff members in India
GIZ profile
2009 2016, BMUB & MNRE
Approach:
Demonstration lighthouse projects
Supporting regulative/policy framework
Capacity & awareness building
Focus Areas:
PV Rooftop & solar thermal process heat
Project Team Delhi:
7 National & International experts
Commercialisation of solar energy in urban and
industrial areas (www.ComSolar.in)
Global PV Market Highlights & Trends
Germany Case Study for RTPV
Rooftop Examples
Recommendations
Pic
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s:
GIZ
, D
B
Market
200 GW
@ 49 GW
TOP 3 p.a.
China
Japan
USA
Policy
Markets
61% FIT
driven
Global PV Market - Trends 2014 (Sources: EPIA , BSW, BNEF)
TOP 3 p.a.
Germany
China
Italy
Market
100 GW
@ 30 GW
ROW: Rest of the World, MEA: Middle East and Africa, APAC: Asia Pacific
Policy
Captive
NME
PPAs
2012 2014
Share of cumulative capacities end 2012 (Source: IEA PVPS, 2013)
Still unbalanced structure
(Germany 1/3 of world
capacity)
13 countries entered the GW
capacity class
9 further close
China has ~ 60% share of
global PV Cell & Panel
manufacturing
USD/kWh
Grid Parity: retail Electricity Prices vs. PV LCOE
kWh/kW/y
Highest Retail Electricity Prices
Lowest Retail Electricity Prices
PV socket parity in several regions (Source: IEA, 2013)
Global Trends 2014 Summary & Conclusions
200 GWp mark likely to be exceeded worldwide
Stable further growth with 40 50 GW p.a. likely (e.g. China alone 13
GW in 2013)
Grid parity achieved in many regions
Global growth is diversifying shift of regional focus
PV will play a major role in the global electricity mix
Pic
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SO
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N E
nerg
y
Global PV Market Highlights & Trends
Germany Case Study for RTPV
Rooftop Examples
Recommendations
Relevant key facts compared to India
900-1300 kWh/m2
80,3 Mio
357,021 km2
1250-2150 kWh/m2
1,2 Bn
3,287,263 km2
Why is Germany pushing the pedal?
Fight climate change
Reduce energy imports
Stimulate innovation &
green economy
Strengthen energy
security & local
economy
The energy transition 80% RE 2050 & nuclear phase out until 2022 is decided to:
More details: www.energytransition.de
Macro economic benefit (Source: Fraunhofer Institute / IWES Energy Policy Business Model with 100% renewable energy by 2050)
Fight climate change
Reduce energy imports
Stimulate innovation &
green economy
Fuel savings vs. RE CAPEX & OPEX with 200 GW PV an 180 GW Wind capacity
Subsidies to be phased out by 2020 @ 52 GW
Fraunhofer IWES 100% Scenario: 200 GW PV 2050
German PV Market 2013, grid connected
(Source: Bundesnetzagentur / German grid authority)
31.12.2013:
Total Capa.
35.692 GWp
# Systems:
> 1.4 Million
Cost reduction by 66% since 2006
LCOE below electricity retail price grid parity @ POS
Attention: National differences in pricing & currency
German System prices for
PV market segments in Germany
Image : Solarwatt
Private buildings:
1-10 kWp
Social, commercial,
agricultural buidlings:
10-100 kWp
Image : Solarwatt
Image: Sharp
Image : BP
Large commercial
buildings:
> 100 kWp
Image:
Geosol
Image: Grammer
10% 38% 23%
Source: BSW, E.Quadrat GmbH, based on 2012 data
1 MW by 31.12.13
Average system size: 25 kW
Largest groups of owners: Private
persons, farmers, SMEs and newly
founded local Energy Cooperatives
Fraunhofer ISE: On national average 98% @ LV distribution grid
Large share of small distributed PV: local match of supply & demand
Very limited requirement to improve of transport grid
Distributed PV has main impact on LV distribution grid
85% 15%
Average annual interruption within top 3 EU and < 50 Minutes (total SAIDI)
(Despite world largest share of PV/Wind)
Impact to grid stabilty (Source: Council of European Energy Regulators CEER, 12/2013)
Typical German FIT Single line / scheme (Picture Source: Agentur fuer Erneuerbare Energien)
DC Switch / Junction Box
Grid-tied Inverter
Unidirectional Meter Feed-in
Connection at Distribution board
Unidirectional Meter Consumption
Inverter will switch off when grid is off spec
Solutions for captive supply now ramping up (e.g. new storage law)
Germany PV Market - Conclusions
1. Distributed PV is a success model
Potential alone for dark Germany: 203 GW (following calculations of Prof. Drg. Ing. Volker Quaschning HTW Berlin)
2. FAST grid integration is possible without problems
Proven with 35 GWp in more than 1.4 Mio Systems on the grid in our small county without smart grid measures
3. Solar PV is economical feasible & competitive today
Grid improvement & storage required for larger shares
Pic
ture
s:
GIZ
Global PV Market Highlights & Trends
Germany Case Study for RTPV
Rooftop Examples
Recommendations
Examples: Standard Rooftop
Family home 9,7 KWp Brieselang, Germany
Cowshed 61,27 KWp Hohenreinkendorf, Germany, 2005
Church 5 KWp Kablow, Berlin, Germany, 1994
Community center 135 KWp Sonnenschiff, Freiburg, Germany, 2003
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bel A
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bel A
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: IE
A P
VP
S
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: S
OL
ON
AG
Examples: Integrated PV
Roof integrated 824 KW BMW World, Munich, Germany
Facade integrated 12 KW Zara, Cologne, Germany, 2002
Roof integrated 123 KW Paul-Loebe-Haus, Berlin, Germany, 2002
Roof integrated 189 KW Mainstation, Berlin, Germany, 2002
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ON
AG
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: S
OL
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AG
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VP
S / B
MW
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Busport 2MW Sevilla, Spain, SOLON AG
Examples: Added value Systems
Noise Protection 500 kW Highway, Freiburg, Germany
Carport, 251 kW Mainz, Germany, Juwi Solar
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A-P
VP
S
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: S
OL
ON
AG
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: A
uto
hau
s
Freeland
91 MW
Briest, Germany.
2011, Q-Cells
Large rooftop
3.8 MW
Muggensturm,Germany.
2006, TAUBER-SOLAR
Examples: Large Scale
Further case studies incl. details see http://www.pvdatabase.org/
Pic
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: Q
-Ce
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P
ictu
re:
IEA
PV
PS
Pic
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s:
GIZ
Global PV Market Highlights & Trends
Germany Case Study for RTPV
Rooftop Examples
Recommendations
Recommendations
1. Simple opportunities / low hanging fruits first
Integrated- and added value-systems induce extra efforts/costs
2. Quality should have highest priority
Cheap hardware will cause high lifecycle costs and lower yields
3. Distributed RTPV offers largest benefits
No additional land occupation, local value creation, minor grid impact
4. Be cautious when planning large scale PV plants
Evacuation infrastructure and T&D losses become issues
Thank you!
ComSolar - Indo German Energy Programme
Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH
GIZ Office New Delhi
www.giz.de - www.comsolar.in
Backup
2014 growth forecasts