BESCOM Experience in promoting Effective Business Models for...

BESCOM Experience in promoting Effective Business Models for Solar Rooftop PV in India by S.A. Satish Kumar General Manager , DSM BESCOM at The Lalith, New Delhi on 08/04/2015

Launching of JNNSM in January 2010 by GOI has opened the flood gate for Solar sector in India.

Karnataka was the first southern state to introduce solar policy - I in

2011. First state to commission utility scale solar project in India. The state

revised its solar policy on 22.05.2014 in order to add on capacity, and to have energy security and sustainability.

State is blessed with 240 to 300 sunny days with good solar radiation of

5.4 to 6.2 kWh / mts /day. Assessment of solar potential - 20 GWp. Moderated potential - 10 GWp State target - 3% of total energy consumption.

PREAMBLE

SOLAR POLICY 2014-2021

Objectives:

Add solar generation of minimum 2000 MW by 2021

To Translate state into an investor friendly state To encourage PPP in the sector

To promote SRTPV generation and technologies

To encourage decentralized generation and distribution

To promote R&D , Innovations and Skill development in sector.

Minimum targets proposed

The Govt. proposes to achieve minimum of 3% of solar energy out of total energy consumed by installing solar plants in a phased manner as below:

Segment 2014

-15

2015

-16

2016

-17

2017

-18

2018

-19

2019

-20

2020

-21

Utility scale

projects

350 150 150 150 150 150 150

Solar RTPV,

grid

connectivity

100 100 100 100 - - -

Utility scale grid connected

SPV/CSP projects

KREDL is the nodal agency for implementing the following projects.

Category-1: Projects to promote distributed generation by land owning farmers throughout the state (1 to 3 MW).

The capacity allocation for ESCOM is as below:

ESCOMs % of total annual energy consumption

Capacity fir the period 2014-20

BESCOM 48% 144 MW

MESCOM 8% 24 MW

HESCOM 20% 60 MW

GESCOM 13% 39 MW

CESC 11% 33 MW

Category-2 Projects selected based on competitive bidding

process for capacities more than 3 MW.

The minimum project capacity allocation to each solar power product for the grid connected solar power plants will be as follows:

The capacity plant under this category exclude capacity under JNNSM program

Mode of allotment

Technology Minimum (MW)

Through bidding process

Solar PV 3

Solar Thermal 10

Category-3 Project under REC Mechanism.

Under this mechanism solar energy generators can sell electricity to ESCOMs at APPPC (Average Pooled Power Purchase Cost) as determined by KERC.

The minimum and maximum project capacity allocation to teach solar power producer for the grid connected solar power plants will be as follows:

There is no limit for cumulative capacity under this category.

Mode of allotment


Maximum (MW)

Through ESCOM

Solar PV 1 Based on transmission evacuation capacity Solar Thermal 10

Category-4 Projects under Captive/Group captive generation.

The project developer is allowed to avail RECs in compliance with KERC regulations.

The wheeling and banking charges and cross subsidy are as per KERC guidelines.



Mode of allotment

Technology

Minimum (MW)

Maximum (MW)

Through ESCOM

Solar PV No limit Based on transmission evacuation capacity

Solar Thermal

Category - 5 Projects under Independent Power Producers.

Power plants put up for sale of power to third party constitute this category.

Projects under this category are not eligible for availing RECs.



Mode of allotment


Maximum (MW)

Through ESCOM

Solar PV 1 Based on transmission evacuation capacity Solar Thermal 10

Categ

Category-6 Projects under Bundled power.

State encourages providing solar power bundled with thermal power.


Mode of allotment

Technology Minimum (MW) Maximum (MW)

Through ESCOM/ HLPAC

Solar PV Based on bundled tariff as agreed with power purchaser Solar Thermal

Segment - 2:Grid connected solar rooftop

projects and metering The Gok shall promote grid connected solar rooftop projects on public

building, domestic, commercial and industrial establishments though net metring and gross metering methods based on tariff orders issued by KERC from time to time.

Net metering: Net metering arrangements are proposed (at multiple voltage levels) to focus on self-consumption of energy generated from rooftop PV. The concept is a combination of captive consumption and exchange of power with the utility.

For SRTPV system gird tied on a net basis, the surplus energy shall be paid as per tariff determined by KERC.

Metering shall be compliance with the CEA.

ESCOMS shall define specific guidelines on the standards for connectivity to network.

MNRE subsidies shall be through the nodal agency.

The Meter reading taken by ESCOMs shall form the basis for commercial settlement.

Site requirement & Inter

connection voltage The project site/installation location decided based on roof

space and usable area for installation of SRTPV.

Approved export/import meter shall be installed for net metering purpose.

Interconnection voltage:

System Capacity Voltage Level Remarks

Upto 5kWp 240 V/Single phase As per KERC

guidelines 5 kWp to 50 kWp 3 phase/415 V

>50kWp 11kV

Other Initiatives To amend building by laws in respect of FAR (Floor Area Ration)

in co-ordination with BBMP/local bodies and urban development

department to exempt FAR in respect of additional floor area

created under solar PV panels with light roofing.

Solar Off-grid and Decentralized Distributed Generation

(DDG):

To provide access to electricity where transmission and

distribution systems are difficult to establish, solar powered off-

grid solutions are encouraged.

To encourage options like solar street lights (through local

bodies), rooftop SPV systems with battery storage (through

ESCOMs and NGO’s) and others in both rural and urban areas

for the purpose of reducing dependency on grid.

Focus on Solar powered IP sets: To provide energy security to

farmers during day time use of solar power pumps is encouraged,

as the energy consume by IP sets is 33% of total energy.

Other Initiatives Solar Park: Utilize waste land for development of solar park and for power generation.

Promotion of distributed generation through small solar parks:

Govt. to promote solar park with area less than 100 acres through PPT model with financial assistance of Rs.1 Cr. in the backward districts.

Promotion of integrated solar parks:

Private participation by providing “plug and play” options for developers.

To create private land banks owned by farmers/group of farmers/ associations for development of solar projects and long terms lease upto 30 years.

Grid tied canal corridor projects:

Deployment of grid connected projects on canal corridor by water resources department on pilot basis subject to purchase of energy by ESCOMs.

Grid connected “solar with other renewable hybrid projects”:

To encourages such projects with minimum 25% of overall generation coming from respective generation sources shall be promoted through this policy.

Policy initiatives: To bring in all HT consumers with connected load

of < 50 kVA under SPO (Solar Purchase Obligation).

To amend section 95 of Land Reforms Act for

deemed conversion of land for solar projects.

To empower DCs to approve purchase of

agricultural lands U/S 109 of Land Reforms Act for

development of solar projects.

Implementation of Solar Rooftop Program in BESCOM

Inauguration of SRTPV Program in the state by Energy minister of GoK on 07.11.2014

GENERAL

Applications are invited form BESCOM consumers of

all Residential, commercial, educational institutions,

industries establishments others etc.

No limitation on installed solar capacity

Applications invited form minimum 1 kWp to

maximum 1 MWp

Applicant can select any system integrator & PV

modules.

To purchase BESCOM approved inverters &

bi-directional meters only.

RESIDENTIAL & COMMERCIAL - 259 NOS., 8.12MW

EDUCATIONAL INSTITUTIONS - 27 NOS., 5.57 MW

GOVERNEMENT ORGANIZATIONS - 4 NOS., 0.62MW

INDUSTRIES - 21 NOS., 3.2MW

No. of application received online – 333 , 17MW

Registered at sub division office- 215, 12 MW

List of important SRTPV

installations Serviced on

06.04.2015

1 Chinnaswamy Stadium 400 kWp

2 St. Jones college 100 kWp

3 BESCOM, Corporate Office 50 kWp

4 Ramana Marshi school of Blind 34 kWp

5 Smt. Usha Shivakumar

(Energy Minister)

18 kWp

6 NIAS 100 kWp

7 Others (Residential) 72 kWp

Total 774 kWp

Return on Investment Calculation

How good is the investment in Solar Rooftop PV System ?

1-KW 2-KW 3-KW 4-KW 5-KW 6-KW 10-KW

1 Plant Capacity kWp 1 2 3 4 5 6 10

2 Energy Generated kWh/year 1500 3000 4500 6000 7500 9000 15000

3 Energy Consumed kWh/year 1200 1200 1200 1200 1200 1200 1200

4 Energy Exported kWh/year 300 1800 3300 4800 6300 7800 13800

5 Savings in BESCOM Bill Rs./year 4592 4592 4592 4592 4592 4592 4592

6 Cost of energy exported/year Rs./year 2868 17208 31548 45888 60228 74568 131928

7 Cumulative Returns per Annum Rs./year 7460 21800 36140 50480 64820 79160 136520

8 Principal Rs. 10000

0 200000 300000 400000 500000 540000 900000

9 SIMPLE PAYBACK PERIOD Years 13.4 9.2 8.3 7.9 7.7 6.8 6.6

How Solar Rooftop PV System is a better investment than Fixed Deposit?

1-KW 2-KW 3-KW 4-KW 5-KW 6-KW 10-KW

1 Plant Capacity kWp 1 2 3 4 5 6 10

2 Cumulative Earnings from SRTPVS per Year Rs./yr 7460 21800 36140 50480 64820 79160 136520

3 Interest for Fixed deposit % 9 9 9 9 9 9 9

4 Principal, if deposited in Bank Rs. 100000 200000 300000 400000 500000 540000 900000

5

Interest if Principal is deposited in Bank @ 9 % interest per year Rs./yr 9000 18000 27000 36000 45000 48600 81000

6 Surplus income per year Rs./yr -1540 3800 9140 14480 19820 30560 55520

7 Additional Earnings in percentage % -17% 21% 34% 40% 44% 63% 69%

BASIC DATA

1 Basic capacity for Estimate in KWp KWp 1

2 Est. Generation/ KWh/Day KWh/day 5

3 No of Active Generation Days in a year Days 300

4 Annual generation per kWp KWh/Ann 1500

5 Av. Monthly Domestic energy consumption KWh 100

6 Annual Consumption KWh 1200

7 Cost of Energy saved in consumption Rs/ Year 4332 8 Tax % 6

9 Total annual saving in electricity bill Rs./year 4591.9

10 Escalation of electricity cost/year % 4

11 Cost of Energy Exported without subsidy Rs./KWh 9.56

12 Cost of SRTPV Plant per KWp (without subsidy) upto 5 KW Rs./KWp 100000

13 Cost of SRTPV Plant per KWp (without subsidy) for more than 5 KW Rs./KWp 90000

14 Plant Life Years 20

15 Expected Returns if deposited in Bank % 9

Tariff Slab LT2 a(i) Full consm Cons>Gen

2.70 30 81 0 0

30 4.00 70 280 0 0

100 5.25 0 0 0 0

200 6.25 0 0 0 0

Other Benefits:

1. The plant continues to generate after Payback Period also which leads to substantial financial gain.

2.Generation of renewable energy reduces Greenhouse Gas emission and protects environment

Promotion of SRPTV : BESCOM has formed following committee of members drawn from various field who have expertise domain knowledge in the field of solar.

PROCESS COMMITTEE: To finalize the process right from registration of applications online and up to last mile of grid connectivity.

TECHNICAL COMMITTEE: To finalize standards, specification, safety etc., challenges if any.

Major decision taken in process committee:

Facilitating payment gateway for On-line applicants.

Simplifying SRTPV procedure to speedup approval for SRTPV applicants.

Creation of Solar help desk at corporate office level with

dedicated landline and e-mail-id.

Deletion of On-line applications with 15 days from the date of submission, for those applicants who has not paid application fee at sub-division office.

Arrangement of National level workshop cum seminar in

Bangalore to capture large no. of system integrators/ PV module / inverter manufacturers etc.

Major decision taken in Technical committee:

Empanelment of Grid tied inverter manufacturers

Possibility of using one time standard approved drawing

by CEIG instead of insisting on approved drawings for

every SRTPV installations.

Upto 10 kWp, AEE sub-division office is the inspecting

authority, above 10 kWp, CEI of Gok is the inspecting

authority.

Formulating the general procedure for grid connectivity

issues.

MOU with GERMI: • Entered in to MOU with GERMI on 12/1/15 for training of

technicians in the field of SRTPV.

BESCOM training of its field staff: • BESCOM is conducting 2 days workshop to impact training

on SRTPV for all the field engineers of entire state by inviting experts in the field of solar.

BESCOM projects under pipeline:

A Tender floated for installation of SRTPV plants on 9 numbers of various BESCOM offices.

Amount put to tender is 2.19 crore for 210 KWp. AMOUNT PUT TO TENDER IS Rs. 2.19 Crore of 210 kWp capacity

Sl. No. Location

SRTPV capacity in

kWp LOT 1

1 Chitradurga, C, O & M Zonal office, Chitradurga 20

2 Davanagere, C, O & M Division office, Davengere 22

3 H.S.R. layout C, O & M Division office, Bengaluru 25

4 Chandapura C, O & M Division office, Chandapura 22

5 Chinthamani C, O & M Division office, Chintamani 25

TOTAL of LOT-1 114

LOT 2

1 Jayanagar C, O & M Division office, Bengaluru 37

2 Banashankari C, O & M S-9 Sub-Division office, Bengaluru 25

3 Jalahalli C, O & M C-3 Sub-Division office, Bengaluru 13

4 Mathikere C, O & M C-6 Sub-Division office, Bengaluru 30

TOTAL of LOT-2 105

Surya Raitha Scheme

o Govt. has announced “Surya Raitha” a novel scheme on 24.09.2014 for

the welfare of farmers.

o The scheme promotes for harnessing solar power by installing SPV panels in the farmers land to run IP sets and feed-in excess energy to grid.

o The scheme is proposed for IP sets on the dedicated agriculture feeders.

o This is applicable for IP sets < 10 HP.

o Promotion of solar pump under net metering concept.

o KERC tariff for SRTPV will be adopted.

o Net meter will register both import and export energy.

o The billing will be settled as per meter readings.

o Farmer can avail soft loan from banks and subsidy from MNRE.

Benefits of the scheme Reduction in realizing of subsidies by Govt. to ESCOMs.

Reduction in peak load and energy consumption.

Assured quality of power supply to farmers during day time.

Improvement in water table.

Reduction in green gas emissions and global warm issues.

Assured income to the farmers apart from income earned through crops.

Pilot: To implement “Surya Raitha” scheme a pilot project is proposed.

F-2 feeder from Harobele station (Kanakapura taluk in Ramanagara district) is identified and selected.

Scope of pilot

Replace existing 250 IP sets by efficient solar water pumps in the pilot feeder i.e.,:- 180 x 5HP by 180 x 7.2kWp SPV systems 70 x 7.5HP by 70 x 10.8 kWp SPV systems The PV capacity over size is done by 50% to enable a self sufficient

systems that can pay for itself. To install bi-directional meters for measurement of import and

export energy. To keep feeder on from 6am to 6pm during day time for injecting

excess energy to the grid.

Normally 66% of energy is fed to the pump and 33% to the grid.

Key players of the project

Karnataka State Government and MNRE:

Project sponsors

Implementing Agency (BESCOM):

Off-taker of feed-in energy and program implementer

System Installer:

Supplier of net metered solar pump solution

Funding Agency:

In the pilot program, the implementing agency (BESCOM)

will directly lend to a farmer’s co-operative to enable them

in funding the capital cost of the program.

Farmers’ Co-operative

Farmers’ co-operative consisting of all beneficiaries on the Harobele

F2 feeder will be created.

The role of the co-operative will be:

To work with BESCOM in order to educate and enroll farmers into the

program.

To facilitate collection of the initial contribution from farmers in

conjunction with the implementing agency (BESCOM).

To receive a loan from BESCOM and fund the program.

To monitor farmer compliance with the program and check illegal

use/activity.

To administer enrollment of new pumps into the program.

To receive on behalf of member farmers, monthly payments from

BESCOM for exported energy.

To disburse the same to BESCOM against the loan amount raised to

fund the program.

To disburse to individual farmers on generation based incentive.

This function will be automated through the use of an ESCROW

structure and the co-operative will only perform a figurative role.

The breakup cost is as below: Particulars 5 HP

capacity

per IP set

7.5 HP

capacity

per IP set

Weighted

average

cost per

pump

Total cost

for 250

pump

programme

Pump PV Capacity 4.8 7.2

Oversize factor 1.5x 1.5x

Total system size (kW) 7.2 10.8

Per kW capital cost

(Rs/Wp)

102 102

Total cost of System, Rs. 7,35,000 11,03,000

Number of pumps

installed

180 70

GoK Contribution Rs. 58,000 1,69,000 89,000 Rs.2.2 Cr

MNRE contribution Rs. 1,62,000 1,62,000 1,62,000 Rs.4.1 Cr

Interest free loan from

BESCOM

4,64,000 7,00,000 5,30,00 Rs.13.3 Cr

Upfront payment by

farmer, Rs.

50,000 75,000 57,000 Rs.1.4 Cr

Total Rs.21 Cr

ABSTRACT

For 5 HP IP set – 7.35 x 180 = Rs.1323 lakhs

For 7.5 HP IP set – 11.03 x 70= Rs. 772 lakhs

Metering cost – 25,000 x 250= Rs. 62.5 lakhs

Miscellaneous = Rs. 2.5 lakhs

The approximate project cost = Rs. 22 crores

(for 250 IP sets)

LOAN REPAYMENT

Loan is interest free and term is 15years.

EMI for 5 HP is Rs.2,600/-

7.5 HP is Rs.3,900/-

BLOCK DIAGRAM

Challenges

• No cap on SRTPV generation compared to sanctioned load as per KERC tariff.

• When the ratio of solar generation power wrt sanctioned load exceeds a certain load, net meter concept is defeated.

• In a complex/building of more than 10 installations, consumer may connect to a meter which is recording minimum units or make it dummy.

• Enjoy feed-in tariff instead of net meter tariff of Rs. 9.56 When the ratio of Export v/s Import energy excess more than 90%.

• For SRTPV > 50kWp consumer needs to install isolating step up transformer as interconnection point is on 11kV, which increases transformer loss.

• Inter connection issues when generation is more than 50 KW (For LT consumers).

• Space constraints for installation of DTC. • Up gradation of distribution net work. • Power quality concerns of the utilities. • Measurement of harmonics generated and injected in to the

grid. • Billing procedure for SRTPV generators. • Settlement of bills and refund issues in case of export.

Major milestones The Hon’ble CM of State will inaugurate state’s first

1 MW solar power project on Almatti right bank

canal.

Country’s first Cricket Stadium to go for SRTPV of

400 kWp.

Surya Raitha scheme is the first pilot project of

nature to be launched in the state.

State in the first to go for net metering with

attractive tariff of Rs.9.56

Way Forward Empanelment of facilitators:

Create awareness among consumers.

Assist in project planning.

Facilitation in installation.

Post installation support.

Web based application and helpline to assist prospective consumers.

Other promotion:

Working with World Bank to promote SRTPV.

Examining ESCROW models for developers to install on rooftop of owners.

Working with financial institutions.

Promotion through Media, Radio, TV etc.,

THANK YOU

BESCOM Experience in promoting Effective Business Models for...

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