Rationales for SPV Power Plant in the State of Chhattisgarh

Ritu S Jain

Presentation OutlineSun Power – the ultimate sourceEnergy for sustainable DevelopmentPV Scenario World-widePV Industry ForecastWorld’s Largest PV Power PlantsSpecific Drivers for PV Power Projects in IndiaPolicy Initiatives from GoISolar Radiation Levels in IndiaRationales for SPV power plants in ChhattissgarhGrid Connected Solar – How it worksGlimpses of few large sola power plant installed world wideEconomics of 1 MW SPV power plantBankers’ Attraction

Harnessing power from sun – the ultimate source of energy

“The Sun occupies centre stage, as it should, being

literally the original source of all energy. We will pool all our scientific, technical and managerial talents, with financial resources, to develop solar energy as a source of abundant energy to power our economy and to transform the lives of our people. Our success in this endeavor will change the face of India”.

— India’s Prime Minister, Dr. Manmohan Singh, releasing the National Action Plan on Climate Change in 2008

Energy for sustainable developmentIndia has been witnessing the phase of

tremendous growth and transformation with an economic growth rate of +8%

World Energy Outlook 2007 estimates that the world's energy needs would be well over 50% higher in 2030 than today

China and India together account for 45% of the increase in global primary energy demand in this scenario

PV Scenario World-wideAnnual installed (new) PV generation capacity

worldwide has been growing at an average annual rate of 35% since 1998 surpassing 6.5 GWp of cumulative capacity in 2006.

In 2007 alone 2.6 GWp of new solar PV generation capacity was added, worldwide

Currently the solar power is contributing only 0.2% of the world energy consumption with 1.2 GW of generation capacity.

This is poised to grow to 1.1% by 2010 and 20% by the year 2040.

It is anticipated that by the year 2040 solar will be the major source of energy.

PV Industry Forecast

• The conservative forecast estimates a growth of 127% ;• whereas the accelerated forecast expects a growth of 315%Source : Navigant Consulting, Landon

World’s Largest SPV Power PlantsWorld’s largest photovoltaic (PV) power plants[1]

Name Country

DC Peak

Power (MW)

DescriptionGWh

/year

Threshold

Capacity GWh

CUF

Parque Solar Hoya de Los Vincentes

Spain 23   41 201.48 20%

Solar park Calveron Spain 21   40 183.96 22%

Planta Solar La Magascona Spain 20     175.2 0%

Beneixama photovoltaic power plant

Spain 20

Tenesol, Aleo and Solon solar modules with Q-Cells cells

30 175.2 17%

SinAn photovoltaic power plant

South Korea 18

Asia's largest photovoltaic plant. Consists of 108, 864 units of Conergy STM 180F solar modules.

27 157.68 17%

World’s Largest SPV Power Plants …. Contn.Nellis Solar Power Plant USA 14 70,000 solar

panels 30 122.64 24%

Planta Solar de Salamanca Spain 13.8 70,000 Kyocera

panels   120.888  

Lobosillo Solar Park Spain 12.7 Chaori an YingLi

modules   111.252  

Erlasee Solar Park Germany 12 1,408 Solon

mover 14 105.12 13%

Serpa solar power plant Portugal 11 52,000 solar

modules 20 96.36 21%

Pocking Solar Park

Germany 10 57,912 solar

modules 11.5 87.6 13%

Monte Alto photovoltaic power plant

Spain 9.5   14 83.22 17%

Viana Solar Park Spain 8.7   11 76.212 14%Gottelborn Solar Park

Germany 8.4   8.4 73.584 11%

Alamosa photovoltaic power plant

Colorado, USA 8.22 Completed

December 20, 2007 17 72.0072 24%

Specific drivers for PV in IndiaRising primary energy and electricity needs

and the persistent energy deficit situation, Country’s overdependence on coal for

electricity generation and on oil and gas imports (amounting to 7% of its GDP).

Country’s commitment to combat climate change issues

Abundant availability of solar irradiation, with most parts of the country enjoying 300 sunny days a year, at free of cost

National and state level policy incentives

Policy Initiatives by GoIGeneration Based IncentivesFirm PPA for 25 YearsCERC has fixed the tariff at Rs.17.91/kWhSingle Entity Responsible for purchasing

power from the solar power plant developers – NVVN

Payments to be backed by revolving Letter of Credit

Letter of comfort from Bank/FI -Pre-requisite for entering into PPA

Solar Radiation Level

Rationales for ChhattisgarhAverage Global Radiation on Horizontal Surface –

5.2 to 5.4 kWh/m2

Average Annual Global Solar Radiation - 1884 kWh/m2

at Raipur (CG)22 years average temperature – 25.60CExpected Generation considering a conversion

efficiency of 15.5% Optimistic -1.772 GWh/MWpAverage – 1.670 GWh/MWpPessimistic - 1.50 GWh/MWp

Grid Connected Solar – How it works

22 MW SPV Power Plant Korea

PV Power Plant Waldpolenz, Germany (40 MW)

Economics of a 1 MW SPV Power PlantS No. Description Parameter

1 Installed Capacity 1 MW

2 Project Cost 10 Crs

3 Debt Equity Ratio 4:1

4 Cost of Debt 11.75%

5 Repayment Term 15 years in 180 equated installments after a moratorium of one year

6 Solar Irradiance 1882 kWh/sqmt

7 Module Efficiency 15.5%

8 PV & Inverter Losses 26.9%

9 Expected Generation 16.67 GWh

10 Land 2 Hectares

Economics of a 5 MW SPV Power Plant

S No. Description Parameter

1 Project IRR 15.23%2 DSCR 1.403 Equity IRR 25%

Bankers’ AttractionDetermined Cash Flow for next twenty five years +/-10%

Payment GuaranteeUnique Financing Features comparable with housing loan

Single Point Monitoring

SR’s Credentials SR started its business activities in 2003 in India SR’s Mission is to serve the global community to the best of its

ability in the fields of Renewable Energy, Energy Efficiency, Climate Change, Management, Finance and Quality Assurance Sector

SR’s Vision is to excel in the segments wherein it has its footprints. SR has facilitated projects in RE sector worth Rs 1000 Crs + SR excels in RE sector with proven track record Core business is to conceptualize, develop, manage renewable

energy projects especially in solar, biomass, bio-fuel and green gas Competency backed by experienced and highly qualified workforce Headquarters based at Raipur, India Working with esteemed organizations like MoP, MNRE, World

Bank, UNICEF, UNDP, ADB, KVIC, GTZ, NTPC, PFC, KVIC, SNAs viz. CREDA, CBDA, MPUVN, OREDA, BEDA, WBREDA etc.

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