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Opportunities for Hybrid AC-DC Infrastructure in India

Study Objectives

Objective 1Identify market potential for AC-DC hybrid infrastructure

Objective 2Evaluate challenges in integration of existing off-grid solar system with efficient appliances with main AC grid

Objective 3Evaluate and recommend market and policy interventions required for market growth

Drivers of Hybrid AC-DC energy infrastructure

Grid Electrification

Unreliable Power Supply

Emerging DC technologies

(Solar)

Falling Battery Prices

Emerging Energy-Efficient

Appliances

Hybrid AC-DC (HAD) Power Solutions and Appliances

Power Supply Options

Grid Connection (AC)

Battery Backup (DC)

Solar Power (DC)

Controller (includes Inverter)

2 IN 1 OUT2 IN 2 OUT

AC Input AC Appliance

AC Input DC Appliance(Internal Converter)

AC Input DC Appliance with battery storage(Internal Converter + Battery storage)

AC Input DC Appliance with battery storage(External Converter + Battery Storage)

Dual (AC + DC) Input DC Appliance(Internal Converter)

DC Input DC Appliance with battery storage(Internal Converter + Battery storage)

DC Input DC Appliance(Internal Converter)

AC Supply Line

DC Supply Line

Conventional AC Appliance

DC Appliance

AC to DC

DC Appliance

DC Appliance

AC to DC

DC Appliance

DC Appliance

AC to DC

DC Appliance

DC to DC

xC to DC

DC to DC*xC: AC or DC

Hybrid Appliance

Power Supply Side

Appliance Side

Types of HAD Power Solutions

HAD Power Solution-1: Hybrid Solar Inverter UPS

Combines grid, battery, and solar as an input. The excesssolar power cannot be exported to the grid.

Some variants available in the market: Only AC output Only DC output (generally packaged with DC appliances) Both AC and DC outputs (example: Luminous and others)

Retrofit solutions available in the market

Combines grid, solar and battery as an input power andallows export of power to the main grid

The USP of these inverters is that they can operate inboth the on-grid and off-grid modes (only if battery isavailable)

At the same time, the customer can opt for a net-metering facility, if applicable, from the Discom

1 HAD Power Solution-2: Hybrid Grid-tied Inverter2

Market overview of HAD Power Solutions

Parameters HAD-1: Hybrid Solar Inverter UPS HAD-2: Hybrid Grid-tied Inverter

Est. Sales (2019) 0.8 million units <1,000 units

Est. Sales (2023) 1.6 million units 0.03-0.04 million units

Growth Rate over next 5 years 25% Depends on the uptake of SRTs

Popular size 700-900 VA 3 kVA and above

Potential No power back-up/ other power solutions• 165 million HHs Solarisation of conventional inverters• 55 million HHs

0.11 million HHs(assuming 10% of grid-connected rooftop installations use hybrid grid-inverter-based)

Geographical potential Areas with power cuts of more than 3 to 4 hours

Jammu & Kashmir, Jharkhand, Uttar Pradesh, Bihar, Odisha, and Karnataka

States with high penetrations of residential, government rooftop installations and favourable SRT policies

Karnataka, Telangana, Gujarat and Andhra Pradesh

Key Players Luminous, Microtek, V-Guard Enertech, Statcon, Sofar, Solax

Survey Results• 6% of total 55 million conventional inverter installations can be converted to hybrid solar over the next three years• Most of the respondents believe that 0.5-1 million HHs will opt for grid-connected solar rooftop systems over the next three years

Market overview of HAD Appliances

Dual AC and DC input

Fan (Sinox) AC (Videocon) Refrigerator (Global Icetech) Television (Mitashi)

Challengeso High appliance costs due to in-built

batteryo Product reliability, battery life and

post-sales service supporto Low awareness levels o Battery design and integration

can be a challenge for manyappliance OEMs as they do not haveany prior experience with batteries

1

Battery Integrated Appliance with single input (AC) and in-built batteries2

Fans (Rico, Eveready)LED Bulb (Philips, Syska)

Benefits Small size battery. Can be

easily charged even power is available for less than 4 hrs.

Very useful for weak-grid applications

Alternative to conventional power backup solutions

Power backup up to 4 hrs

Benefits Both AC and DC supply

compatible Very useful for weak-grid

applications

Challenges High cost due to hybrid controller DC input voltage standardization

Customer Segmentation by Power Source and Solution Types

~ 21% of total HHs are powered by standalone SHS or conventional inverters. Hybrid solar systems are also getting popular (0.7% of the HHs) in the market

Electrification Category Est. No. of HHs % of total HHs* Existing Power Solution

0 No electricity 18,734 0.006% No power solution

1aAccess through ONLY solar

87,500 0.03% Mini/micro-grid

1b 17,00,000 0.61% SHS

2a Access through an independent grid and solar

87,500 0.03% Mini/micro-grid

2b 3,07,000 0.1% SHS / SHL

3 Access through the main grid and supported by solar

19,20,000 0.7%

Grid-integrated SHS (solar hybrid inverter UPS and hybrid grid-tied inverter)

Hybrid solar inverter UPS system

4 2,30,000 0.08% String/micro-inverters

5

Access through only the grid

30,000 0.01% Central converter

6 5,50,00,000 20% Conventional inverters

7 21,80,00,000 78% No power back-up

*estimated total number of HHs = 277 million

Summary~ 55 million HHs with conventional inverters

~ 2 million HHs with hybrid solar systems

~ 2 million HHs with other solar systems

~ 218 million HHs with no power backup solutions

HHs electrification category mapping with potential HAD power solutions

KEY STRATEGIES1. Upgrading existing solar

solution2. Adding new HH that do

not have any power backup solution

3. Replacement at end of product life

Challenges & Recommendations

Key Challenges for the Growth of Hybrid AC-DC Infrastructure

25-11-2020 Opportunities for Hybrid AC-DC Infrastructure in India 12

Product Design and Manufacturing

• Lack of innovation and development

• Higher upfront cost

Marketing, Distribution and Sales

• Lack of strategic partnerships

• Last-mile delivery challenges

• Lack of end-consumer retail financing

Post-sales Services

• Lack of post-sales and maintenance support

Policy Issues

• Not much incentives are available for small HAD systems

• Standardisation (LVDC 48 BIS, interoperability, connectors, etc.)

• Missing minimum performance standards

Recommendations

25-11-2020 Opportunities for Hybrid AC-DC Infrastructure in India 13

OEMs

• Focus on the solarisation of conventional UPS inverters

• Upgrade conventional inverter designs to provide a DC output

• Appliance OEMs should add a DC input as an option

• Promote hybrid EE DC appliances with hybrid solar solutions

• Strengthen distribution and sales networks through institutional partnerships and their selling agents

• Explore consumer financing solutions

Government

• Develop a standards, performance and labelling programme for HAD solutions and ecosystem

• Allocate subsidy budget for rural installation. Extend subsidy for HAD solutions as well.

• Promote hybrid appliances with dual input or in-built batteries

Industry Associations

• Support increased number of pilots

• Facilitate industry OEM members across select appliances to discuss and build consensus on practical standardisation

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Rahul BagdiaManaging Director+91 95610 94490

rahul.bagdia@pManifold.com

Yamini KechePrincipal Consultant, LVDC

+91 91587 78401yamini.keche@pManifold.com

Ankit AgrawalPrincipal Consultant, Energy & Utilities

+91 98811 35712ankit.agrawal@pManifold.com

New Delhi303 B, Enkay Town Plaza,

I-Block, Palam ViharGurgaon-122017

http://www.pmanifold.com

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