Solar Power in Rajasthan

Director (Technical) Rajasthan Renewable Energy Cor. Ltd. Jaipur

A presentation by

B.K Makhija

Challenges and Issues in Solar RPO Compliance /RECs 24 July 2012

New Delhi

1. Rajasthan: A leader in solar development in India

2. Solar Power potential in Rajasthan

3. Robust regulatory framework

4. Progressive Solar Energy Policy 2011

5. Targets under the Rajasthan Policy

6. Facilities & Incentives

7. Solar Park development

8. Rajasthan as Solar Hub: Expected achievements

CONTENTS

Rajasthan: A Leader in Solar Development in India

Rajasthan

Delhi

Gujarat

Uttar Pradesh

Madhya Pradesh

Punjab

Haryana

Strategic location and favourable geographical conditions makes Rajasthan best destination for Solar development.

Largest State of India

Area – 3,42,269 km2

One of the best solar radiation in the world

Solar radiation – 6 -7 kWh/m2/ day

Maximum sunny days in an year

Greater than 325

Abundant underutilized flat land

Around 208,110 Km2 – 60% of total

area

Solar Power Potential in Rajasthan

Total desert area – 208,110 sq.kms

15,000 sq. kms can produce

300,000 MW

DNI: 2200 kWh/sq.m /yr Yearly Average DNI: 5.78 kWh/sqm/day

Robust Regulatory Framework

Electricity Act Energy Conservation Act

National Electricity Policy National Tariff Policy

Integrated Energy Policy

Special Incentive Package Scheme (SIPS)

Jawaharlal Nehru National Solar Mission (November 2009)

JNNSM Guidelines CERC Tariff Regulation

Rajasthan Industrial & Investment Promotion Policy

Rajasthan Solar Energy Policy, 2011 RERC Tariff and RPO/SPO

Pricing and taxation Supply side Demand side

Na

tio

na

l St

ate

Rajasthan Investment Promotion Scheme

Progressive Solar Energy Policy 2011

Issued in April 2011

Objective of the policy:

Develop as Global Solar Power Hub: In next 10-12 years

Productive use of desert land

Creation of employment opportunities (Direct & indirect)

Establishing of manufacturing base

Creation of Solar Park (s)

Strategy of the policy:

Leveraging maximum benefit from policies of NSM

Develop Solar Power Plants

Meeting RPO of Rajasthan

Meeting RPO of other States

Direct sale through Open Access

Through NSM mechanism

Through REC (Solar) mechanism

Available at www.rrecl.com

Targets under Raj. Policy

20

2000

20000

15

1000

4000

7

200

1100

Solar Collectors (Mn Sq.m)

Off Grid Installations (MW)

Under Utility Grid Power including Rooftop (MW)

FY 13 FY 17 FY 22

Targets Under NSM

NSM Phase -I (GOI)

Allocation of 1100 MW completed by GoI

Project allocated to Raj. - 873 MW (80%).

Projects Commissioned - 147 MW.

NSM Targets (2022)

Development of Solar Power - 20 GW

KPMG Projection (2022)

Expected Solar Power - 50 GW

GRID PARITY

Expected by 2017.

Huge market in Rajasthan

More than 20 GW Solar PV & Solar

thermal expected by 2022.

Huge potential for development of

manufacturing of Solar Equipments.

Solar Project Scenario in Rajasthan

Achievements under Raj. Policy Solar Project Scenario in Rajasthan

Scheme Capacity allotted (MW) Commissioned (MW)

GBI of MNRE 8 8

NSM Migration

Phase-1 PV (Batch-I)

Thermal PV (Batch-II)

RPSSGP

66

100 400 295 12

37.5

100

0 0

12

Open Access 40 40

Tail End 1 1

REC Mechanism 16.25 2.5

Total 938.25 201

Targets under Raj. Policy

200 Capacity allocation for promotion of manufacturing

(5.1.9)

Solar PV

To establish 500 MW per annum

manufacturing capacity by 2013.

Must involve manufacturing of CELL and

modules from wafer stage.

RIICO has earmarked 500 acre land for

Solar Manufacturing units near

Neemrana.

Special package for promotion of

manufacturing is under consideration

Selection through competitive bidding

process.

For Promotion of Manufacturing in the State

Targets under Raj. Policy

200

50

50

100

200

50

100

Phase - II (Raj. Policy)

Rooftop and Small scale power plant

(5.1.7)

Bundling of Solar Power (5.1.3)

Phase - I (Raj. Policy)

Solar PV Solar Thermal

Sale of Power to Discom

RPO requirement fulfilled from NSM

allocation.

Solar Policy phase - 1 (upto 2013)

350 MW Solar Power plants under various

schemes of Raj. Solar Policy.

350 MW Solar Power will be procured by

Discom over & above RPO.

Selection through Tariff based competitive

bidding process.

Solar Policy phase - 2 (2013 - 17)

Phase - 2 targets: (2013-17) – 400 MW.

Grid Connected Power Plant

Targets under the policy For meeting RPO of other States - REC(Solar) Mechanism& Open Access

RPO obligation:

Mandates a State to purchase a minimum level of renewable energy

Resource deficit state to purchase REC

Most States notified RPOs

REC mechanism: Launched in November 2010

To promote renewable energy development

To meet their Renewable Purchase. Obligation (RPO) targets

CERC Regulation, 2010

Approved procedure for implementation

Issuance: The National Load Dispatch Centre (NLDC) would issue RECs to renewable energy generators.

Pricing: The REC component will be priced on a notional basis and electricity component will be linked to the normative renewable energy tariff.

One REC is 1000 kWh of electricity feeded to grid.

Trading: RECs can be traded on power exchanges approved by the Central Electricity Regulatory Commission (CERC).

Redemption: An REC can be redeemed by presenting it to NLDC for redemption or on expiry of its shelf life (one year from the date of generation of the corresponding unit).

For meeting RPO of other States:

(i) REC Mechanism : Projects approved - 16 MW

(ii) Open Access : Projects approved - 40 MW

Sr. No

Year

Obligation expressed as % of Energy Consumption (Order 24th May 2011)

Wind Biomass Solar Total

1 2011-2012 4.50 1.00 0.50 6.00

2 2012-2013 5.10 1.25 0.75 7.10

3 2013-2014 5.70 1.50 1.00 8.20

Facilities

Jodhpur

Nagaur

Barmer

Bikaner

Jaisalmer

Jalore

Churu Land bank for Solar Power Plant Allotment of Government Land @ 10% of market rate Purchase of private land allowed in excess of ceiling limit Conversion to industrial use @ 10% of charges leviable for

other industries 58 cusec from IGNP Canal for Solar power plants

Clear mandate for development of adequate infrastructure by STU

Projects under execution: 29,00 Crores Creation of Rajasthan Renewable Energy Infrastructure

Development Fund (RREIDF) for Transmission network, roads etc.

Ensure single point interface between investors and Government departments

RRECL act as Nodal Agency

Sin

gle

w

ind

ow

Ev

acu

ati

on

sys

tem

La

nd

& W

ate

r

Sale Projects Responsibility

Discom GoR Policy STU

Other than Discom

NSM/Open Access/REC mechanism and other Scheme

Developer

Transmission line from Plant to STU GSS

Incentives

Land and power

Exemption Extent Period

Stamp duty 50% 7 years

Land Tax 50% 7 years

Investment

Employment

Investment subsidy

30% of the tax deposited

Employment subsidy

20% of the tax deposited

Customized Package Tailored to the needs of individual investors

Investments above US$100m and providing minimum employment for 200 people

Potential of having high employment generation

Projects with special importance for the State

Electricity duty

Entry tax

VAT

Exemption of electricity duty: On electricity generated for captive use

Exemption for entry tax on equipments required for solar project

Reduction in VAT on Solar Products form 14% to 4%

Solar Park development

Development of Solar park:

Jodhpur:

First to be developed

10,000 hectare land at Bhadala, Jodhpur

Jaisalmer

Potential Sites identified (16,000 hectare Government Land)

Village Prewar and Chatrail

Bikaner and Barmer: Advanced stage of planning

Created “Rajasthan Solar Development Company Limited” (RSDP)

For development of park

Formulate Policy and Rules for land allotment

Selection and qualification of firms

Grid connectivity and infrastructure plans

Sharing of development cost by developers and

Management of Solar park

IGNP canal

Connecting roads

GSS Station

Jodhpur Solar Park

Large availability of suitable land: Identified about 10,000 hectare of Government land at Bhadala, Jodhpur for manufacturing and generation.

Developed Master Plan for Phase I

Completed - Survey and Soil Testing work of Phase I for 3,000 hectare

Survey and Soil Testing work for 2nd phase (5,000 hectare) land underway

Detailed Project Report under preparation by ADB consultants

Provision of common infrastructure for generation and manufacturing plants:

Water access: 58 cusecs of water reserved from Indira Gandhi Canal Project (IGNP) – 3Kms from village

Grid connection: 132/33 kV - Phalodi and 33/11 kV - Bhadla (under construction)

Close to NH 15

Bhadla, Jodhpur

NH 15

Rajasthan as Solar Hub: Expected achievements

Expected solar generation capacity development (MW)

175 MW

1.5 GW

4.0 GW

20 GW

March 2012 2013 2018 2022

Capacity development by 2013

Solar Power plants: 1.5 GW with an investment of INR 15,000 crores

Manufacturing capacity: 500 MW per annum with an investment of INR 2,000 Cr.

Capacity development by 2018

Solar Power plants: 4GW with an additional investment of INR 35,000 crores.

Capacity development by 2022

Solar Power plants:

20 GW with an additional investment of INR 100,000 Cr.

Development of large Solar parks

Jodhpur, Jaisalmer, Bikaner & Barmer.

Generation of large scale employment in desert area.

Thank You

For more details please visit us at www.rrecl.com &

For any query please E-mail at rrec_jaipur@yahoo.co.in