5 MWp Solar PV Power Project

Rajasthan Solar Policy 2011 & Exergy’s Offerings

Proposal for Project Conceptualization Services

(Special Reference on Brief Analysis on Rajasthan Policy)

(Private and Confidential)

3rd May 2011

Proposed By:-

Solar Division Office: D-32, Sector 7, Noida, India. ZIP: 201301

Tel: +91-9999676750 Fax: +91-11-2271 9366

Web: www.exergy.in Email: info@exergy.in

Contents

Aim of this Document ................................................................................................................ 3

EXERGY: Partners for Solar Energy .............................................................................................................. 4

Our Expertise ............................................................................................................................................ 5

Our Clientele ............................................................................................................................................. 8

DETAILED SCOPE OF WORK .................................................................................................. 9

Appendix 1: POLICY REGIMES UNDER RAJASTHAN SOLAR POLICY 2011 .......................18

Setting up of Solar Power Plants in Rajasthan for direct sale to Discoms of Rajasthan.......18

and CSP based power plants. .................................................................................................18

Phase-1 (up to 2013): 200MW .................................................................................................18

Phase-2 (2013-2017): 400MW (additional) ..............................................................................18

The minimum allocation is 5MW and maximum 10MW for Solar PV. ..................................18

The minimum allocation is 5MW and maximum 50MW for Solar Thermal. .........................18

Setting up of Rooftop PV and other Small Solar Power Plants connected to LT/11kV Grid:

.................................................................................................................................................19

Utility Grid Power Projects for sale through RE (Solar) Certificate Mechanism: .................19

Setting up of Solar Power Plant for promotion of manufacturing facilities in the State. .....20

Off-Grid and Decentralized Solar Plants ................................................................................20

Solar Parks ..............................................................................................................................21

Land .........................................................................................................................................21

Time Schedule .........................................................................................................................22

2. Approvals facilitation & Project Registration .....................................................................22

4. EPC services .........................................................................................................................22

Aim of this Document

This document has been prepared by Pan Exergy Pvt Ltd (hereinafter together

referred to as “Exergy”) to provide a comprehensive proposal which includes:

(a) Solar Site Identification and Selection Services;

(b) Preparation of Detailed Project Report

(c) Project Registration Services

for 5 MWp Solar PV Power Project in Rajasthan, proposed by “the Client”.

EXERGY: Partners for Solar Energy

We are engaged in projects of 100MW capacity specifically under Rajasthan Solar Policy

2011 under PPA & REC regimes.

Further, Exergy boasts of successfully executing several Solar PV Rooftop & Ground

mounted turnkey EPC execution (largest being 150 kW Rooftop Plant). Our strategic focus

has remained on efficient execution of Solar PV Plants specifically in the range 5kW ~

EXERGY SOLAR, the Solar vertical of LSquare

Solutions, is a technology agnostic and knowledge

intensive consulting house, lead by a powerful team

offering innovative services & technology solutions in

the field of Solar Photovoltaics & Solar Thermal.

Exergy was founded with the strong vision of

adopting a leadership role in solving today‟s key

issues of energy crisis and climate change.

Exergy Inc has been a defining force for Solar Power

in India. It has grown as India's largest Solar

Consulting Group, having offered services to over

650MW Solar plants which are at various levels of

execution. Its consulting team consists of top Solar

Consultants of India having a sound knowledge in

solar technologies, latest trends, regulations and

finance. They have strong academic qualifications

having graduated from IITs & IIMs. Some of our

esteemed clients include TATA Power, GAIL, EIL,

JK Cement, ACC, CCCL, Gammon Infra, Airtel.

Head Quartered in New Delhi,

India

Branches in Vadodara, Hyderabad

& R&D Centre at IIT Kharagpur.

Leading Solar Infrastructure

Service Provider with a clientele of

650MW SPV & CSP.

Only company offering PINCH

technology services (Process

Optimization)

Partners with of the largest CDM

development company in the world

Extensive network of partnership.

Formally Accredited with Ministry

of New & Renewable Energy, GoI.

JV Association with Engineers

India Ltd (EIL) for Solar EPC

Contracts.

150kW. Our emphasis has been on engineering improvisations, on-site optimizations, web

based efficiency models. We have direct collaboration with IIT Kharagpur for Solar based

R&D.

We provide a complete range of Solar Services including Lumpsum Turn Key EPC Services

for Solar Farm development, Project Conceptualization & Documentation including

Bankable Detailed Project Reports, Application Support for JNNSM Projects, Technology &

Site Assessments, Solar Land Banks, Construction upto Commissioning & Plant Start-up

Assistance and O&M services.

Our Expertise We leverage our industry knowledge and technology strength to provide „concept-to-

completion‟ solutions for your energy requirements using Solar Photo Voltaic (SPV) &

Concentrated Solar Power (CSP) technology. We offer solutions in the following categories:

Grid-connect MW sized Solar Farms

Stand-alone Battery backup System

Roof-top solar solution

Off-Grid Solar Solutions

Grid/ DG/Wind Hybrid System (in any combination)

These systems come with different mounting options frames.

Our Clientele

DETAILED SCOPE OF WORK

The whole scope of work is divided into following major 4 Phases of activities. The

project is conceived starting from the activities of Phase 1. The remaining phases

are subject to signing PPA with the government or adopting Renewable Energy

Certificate (REC) route for project development.

Phase 1: Project Conceptualization Services

Scope of Work Deliverables

1. Solar Site Selection &

Identification

a. Solar Land Bank Assessment

b. Solar Resource Assessment

Studies

c. Energy Yield Studies

d. Comparative Analysis of

chosen sites

a. Demonstrating 3 viable Govt. or

private land of around 25 acres.

b. Site Evaluation & Technical

Feasibility Services.

c. Jamabandi Maps for the chosen

location.

d. Clearances on the land selected.

e. Identifying suitable land brokers,

patwaris for land acquisition process.

2. Preparation of Detailed Project

Report

Exergy Shall prepare a DPR comprising

following

a. Project justification

b. Site Study, Energy Yield

Calculations

c. Technology, Assessment &

Recommendation

d. Technology selection and probable

provider

e. Technical design description

f. Power evacuation scheme and power

conditioning units

g. Implementation schedule

h. Cost Estimates, BOM , Layout

Drawing and Schematics, Financing

Pattern and Financial Analysis,

i. Organization chart/Manpower

requirements

j. Environmental aspects

k. List of Statutory requirements

3. Project Registration Services

a. Assistance for filing

application with Govt.

authorities.

b. Preparation of Preliminary

DPR for Govt. clearances.

c. Power Evacuation Scheme &

Grid Interfacing Clearances.

d. Project Recommendation &

Clearance.

a. Project Registration at RREC.

b. Necessary follow ups with each govt.

offices involved.

c. Power Evacuation Clearance.

d. DPR Approval

e. Project Recommendation Certificate

from RREC.

Note: The actual land acquisition will be undertaken by the client itself and Exergy shall facilitate

the process. Any incidental or liaisoning expenses shall be payable separately by the client.

Exergy shall support the client during the acquisition process of the site. It

will be part of initial deliberations with the brokers and the govt. officials

responsible. In case of the failure of negotiations Exergy shall suggest another site

in lieu of the previous one or another land broker as the case may be. For this

purpose Exergy shall conduct a maximum of 3 site visits with the client.

We also recommend that one representative is appointed by the client to oversee the work

and choose the land among various land patches we propose after our initial technical

screening.

Phase 2: Detailed Engineering, Design & Analysis

This phase will cover detailed engineering of the project & preparation of drawings

documents by specialist civil, structural, mechanical, and electrical & instrumentation

engineers. Computer aided design techniques are extensively used as design aids to help

develop optimum layout & design to assure maximum construction, operational &

maintenance convenience. Scope of this activity shall be,

Technology Selection & Necessary Collaborations, MoUs.

SWOT analysis

Site Study and Solar Resource Assessment Studies and Energy Yield

Calculations for selected location and expected CUF

Technology/Site specific feasibility

Mode of project implementation

Implementation schedule

1. Mechanical Design

o Plot Plan and Equipment Layouts for various buildings and area

o Selection of technology and Array Design

2. Electrical Design

a. Design of power evacuation system

b. Design of inverter system & their paralleling System

c. Design of wiring system, cabling details and cable layouts

d. Estimation of auxiliary power (Normal and Emergency)

e. Design / Sizing and specification of Electrical equipments like Transformers,

Switchgear (H. T. & L. T.), Cables, Lighting fittings etc

f. Electrical system study including Relay Co-ordination

g. Design and specification of Variable Speed Drives for special applications

h. Design and specifications of various service systems like Plant

Communication, Fire Alarm and Detection etc.

i. Detailed design of AC junction boxes & Diodes.

j. Design of Lightening Arrestor system

k. Design of 66kV Substation, yard layout and layout for power evacuation

system.

3. Instrumentation

a. Design and specifications of Instrumentation and Control Systems including

PLC etc.

4. Architectural, Civil & Structural

a. Architectural, Civil and Structural design including estimation of quantities

for tender document, plot development, drawings for statutory approvals and

construction drawings for all buildings / areas,

b. Detailed foundation design

All relevant designs/drawings shall be provided to the client.

Phase 3: Technical Support during Project Setup

During this phase, we shall act as an owner‟s engineer and perform following activities.

Project Design Verification

Detailed engineering drawings and documents submitted to the EPC

Contractor shall be verified by specialist civil, structural, mechanical,

electrical & instrumentation engineers whether the precise design details

are practically implemented.

Detailed drawings and Bill of Materials will be checked for ensuring

highest degree of accuracy and quality control.

Monitoring of specifications of equipment and material for procurement.

Planning & Schedule Monitoring

We shall monitor and report if EPC partner adheres to effective & timely

implementation of projects through detailed assessment of work

quantum, meticulous planning, and micro level scheduling.

In addition, quantitative progress of the various phases of project will be

measured and reported back to the client through a well-designed

reporting system which enables complete evaluation of project

performance.

Procurement Monitoring

We shall monitor the whole procurement activity to make sure that turnkey contractor is

purchasing quality material and hiring competent vendors as agreed in the MoU. We shall

monitor following comprehensive procurement activities, and report any kind of

discrepancies going against the interests of client.

Vendor identification, evaluation & enlistment

Entire purchase activity, floating of enquiry to finalization of order.

Order placement

Progress monitoring & expediting

Inspection

Transportation planning & control

Technical Monitoring

This will include following,

a. Visual quality check of all the material and equipments delivered at the site.

b. Comparison between actual quantity delivered with bills of material and delivery

note

c. Monitoring of techno-financial sustainability & viability of all the mechanical &

electrical works.

d. On-site support on mounting structure installation and solar panel mounting,

trenching, cable routing, earthing points and connection, Inverter positioning/PCU,

data monitoring system, power evacuation and substation construction.

Civil Construction Monitoring

We shall monitor the quality and layout of all the civil constructions including foundation

for solar panels, office, security guard cabins, roads etc. and report any kind of discrepancy

going against the client.

Plant Startup Assistance and Quality Check

We shall minutely monitor the final commissioned plant to check,

a. Delivering the promised amount of electricity

b. All the equipments are working satisfactorily

c. Civil construction is satisfactory

d. Properly connected to the grid, as promised in the turnkey contract

Phase 4: Operation & Maintenance

This Phase will include Off-site monitoring of the satisfactory functioning of the Solar PV

power plant and equipment for 3 months post commissioning.

TIMELINE

Zero date:

Placement of a clear and confirmed order/Mandate in favor of M/s Pan Exergy Pvt. Ltd.

alongwith the payment of the agreed advance amount.

Time Line for Completion of Phase 1

Exergy shall propose three sites within 2 weeks from the Zero date.

Exergy shall submit land selection-cum-feasibility report within 3 weeks from

Zero date.

The necessary project documents shall be submitted at Rajasthan Renewable

Energy Corp within 4-5 week time from Zero Date. Therefore, your company will

be registered for Solar Power Project within 6 weeks time.

Tentative time schedule for RREC Recommendation shall be within 1-2 months

provided all necessary data sought is provided in time.

Appendix 1:

SUMMARY OF POLICY REGIMES UNDER

RAJASTHAN SOLAR POLICY 2011

Setting up of Solar Power Plants in Rajasthan for direct sale to Discoms of

Rajasthan.

The State will promote setting up of solar power projects for direct sale to Discoms

of Rajasthan. The total capacity under this category will be distributed equally

between SPV and CSP based power plants.

The total maximum capacity under this category for

Phase-1 (up to 2013): 200MW

Phase-2 (2013-2017): 400MW (additional)

Selection of these Solar Power Projects shall be through tariff based competitive

bidding process.

The minimum allocation is 5MW and maximum 10MW for Solar PV.

The minimum allocation is 5MW and maximum 50MW for Solar Thermal.

(With Gujarat State expecting only 25%-35% of its allocated projects to be completed

on time; we will see a similar trend in Rajasthan. But since many will have already

gone through the learning phase the success % could be higher than 40% but will be

less than 75%).

(NVVN’s reverse bidding has failed to excite the global solar community. Hopefully

the industry and the government will learn the lessons and we may see a much better

tariff rate in Rajasthan bidding process).

Utility Grid Power Projects for Captive use /Direct sale to 3 rd Party/States other

than Rajasthan through Open Access for promotion of investment in Rajasthan

Solar Power Producers are allowed to set up Solar Power Plants of unlimited

capacity for captive use or sale of power to 3 rd party/States other than Rajasthan.

(Will these solar developers be able to sell RECs in the open market? If not; how

many 3rd party sales are we expecting in solar with a per unit price of above

Rs.10~Rs. 12)

Setting up of Rooftop PV and other Small Solar Power Plants connected to LT/11kV

Grid:

(i) The Rajasthan State will promote deployment of Roof Top and Other Small Solar

Power Plants as per guidelines of MNRE.

(ii) The State will promote setting up of small solar power plants connected at 11kV

grid of 1 MW capacity each for direct sale to State Discoms of Rajasthan. The total

capacity under this category will be 50 MW. The selection of the projects will be

through tariff based competitive bidding process.

Utility Grid Power Projects for sale through RE (Solar) Certificate Mechanism:

The State will promote Solar Power Producers to set up Solar Power Plants of

unlimited capacity for sale through RE (Solar) Certificate mechanism. The Power

generated from these power projects shall be purchased by Discoms of Rajasthan at

Pooled Cost of Power Purchase as determined by the appropriate Commission from

time to time. The Solar Power Producers will sell RE (Solar) Certificates as per the

regulations/orders of appropriate Commission.

Setting up of Solar Power Plant for promotion of manufacturing facilities in the

State.

The State will promote Solar Power Producers to set up Solar Power Plants along

with Solar PV manufacturing plants in Rajasthan. The target under this category

will be 200 MW up to 2013.

Those Solar Power Producers who establish SPV manufacturing plants (thin film

technology modules or crystalline technology modules involving processing from

wafers stage) of minimum 25 MW per annum capacity in Rajasthan will be eligible

for sanction of SPV based Solar Power Plant. The capacity allocation for

manufacturing plant will be as follows:-

For more than 25 MW but less than 50 MW; capacity power plant allocation is 10

MW

50 MW and above 20 MW; capacity power plant allocation is 20MW

(In a new industry like solar; we have seen companies starting with a manufacturing

capacity of 10MW -12MW but not 25MW. The equipment cost does go up higher

while moving from 10MW to 25MW. But what hurts the most is the working capital,

the labor and the ability to sell in the market).

Off-Grid and Decentralized Solar Plants

1. The State will also promote decentralized and off-grid solar applications,

including hybrid system as per guidelines issued by MNRE to meet various

electrical and thermal energy requirements.

Some of the major applications of solar thermal technologies include solar water

heaters, solar cooling systems, air drying, steam cooking, power generation,

sterling engine.

The off grid photovoltaic applications include solar PV home lighting, police

stations, communication and lighting, Small powered looms, solar inverter, solar

PV pumps, powering computers in schools, Small milk chilling plants, refrigeration

for medicine in primary health centers and Hybrid systems for Powering telecom

towers etc. The off-grid solar applications shall be promoted for replacement of

diesel based generators sets. Guidelines and incentives issued by MNRE from time

to time shall be followed in State for promotion of decentralized and off-grid solar

applications.

Solar Parks

The Rajasthan State will develop Solar Parks of more than 1000 MW capacity in

identified areas of Jodhpur, Jaisalmer, Bikaner and Barmer districts in various

stages.

Land

The allotment of land to the Solar Power Projects will be done as per the provisions

of Rajasthan Land Revenue. The Government land required for Solar Power Plant

shall be allotted to Solar Power Producer at concessional rate of 10% of the DLC

rate (agriculture land).

For setting up Solar Power Plant on different technology, maximum allotable land

to the Solar Power Producer shall be as follows:

a. SPV on thin film: 3.5 hectares per MW

b. SPV on crystalline technology: 2.5 hectares per MW

c. Solar Thermal (CSP)- Parabolic Trough/Tower Technology: 2.5 hectares per MW

d. Solar Thermal (CSP) - Parabolic Trough with Storage Facility /Tower/Other

Technology :

For PLF upto 23%; 2.5 hectares per MW. Then every 1% increase in PLF brings in

0.1 hectare/MW additional land.

Time Schedule

a. Upto 5MW: 15 months from SLEC approval

b. 5-10MW: 24 months from SLEC approval

c. 10-25 MW: 30 months from SLEC approval

“SLEC” means State Level Empowered Committee constituted under the provisions

of this Policy.

Some of the points not covered above include more details on land, technical details

on grid connectivity, the list of approvals needed and the process of application.

For more for details on the policy, please feel free to visit the website of Rajasthan

Renewable Energy Cooperation Limited: www.rrecl.com.

We are assisting our clients with the following services:

1. Govt/Private Solar specific Land assistance and allotment in Rajasthan

2. Approvals facilitation & Project Registration

3. Special Consultancy Services for Renewable Energy Certificates Markets (REC).

This is an upcoming and most attractive route for Solar Power Developers. We have

the rich experience of working on more than 100MW of Solar Projects at IEX (Indian

Energy Exchange for our Developers including Tata Power).

4. EPC services