SIDBIs Initiatives on Clean Energy Adoption

6th April 2017

Shankar Haldar, Lead Technical Expert SIDBI – Energy Efficiency Centre

Objective – to promote sustainable development in MSMEs leading to their enhanced profitability & competiveness

Created a dedicated team of experts housed at “Energy Efficiency Centre” for focused approach

Setting up technical arm “Indian SME Technology Services Ltd. (ISTSL)”

Entered into strategic partnership with BEE, World Bank, DFID, JICA, KfW, GiZ, TIFAC, AFD, and many others

SIDBI’s Initiatives

Constitution Set up in 1990 – SIDBI Act Authorised share capital – Rs. 1000 crore Paid-up share capital -- Rs. 450 crore Shares held by Govt. of India & 33 GoI

owned/controlled Banks, Insurance Companies and FIs National Presence

15 Regional Offices More than 85 Branches across all the states

Mandate Promotion, financing and development of MSMEs and to

co-ordinate the functions of institutions serving the MSME sector.

About SIDBI

Incorporated in November 2005 as a Joint Initiative of five banks (SIDBI, IB, OBC, IOB and SBI).

Supporting in fields of technology upgradation and sustainable development in MSMEs.

Empanelled with MNRE (under Govt./ PSU Category) for Grid Connected Solar PV

Providing PMC Services for implementing Implementing SIDBI’s End-to-End Energy Efficiency (4E) scheme

under which technical support is provided to MSMEs for adopting energy efficiency practices.

Empanelled 65 Technical firms for energy efficiency and solar.Grade 2 ESCO empanelled with BEE

About ISTSL

Two-Pronged Approach by SIDBI

Financial Assistance through Focused Line of Credit Concessional Finance for Sustainable Development Projects

in MSMEs

Developmental Support to MSMEs Setting up Exclusive in-house Energy Efficiency Cell (EEC) to

Cater to Internal & External Clients Cluster Focused Awareness & Capacity Building

Programmes for MSMEs, Industry Associations, Banks and Other Stakeholders.

Awareness Workshops in 100 + Industrial Clusters. Technical Support for Energy Audits, Implementation, etc.

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Innovative Financing Schemes

JICA (90 bn JPY through 3 Phases) - Japan AFD (EUR 50 mn) - France KfW (EUR 50 mn) – Germany KfW (aggregating EUR 53.74 mn) to promote

investment in Cleaner Production projects. Suitable TAs from these agencies for

Capacity building, Awareness building, and Funding demonstration projects

Focus on concessional LoCs from various multilateral agencies

SIDBI’s Clean Energy Adoption

End-to-End Energy Efficiency (4E) Programme

Partial Risk Sharing Facility (PRSF) Programme

Rooftop Solar PV Initiative in Faridabad Cluster

4E Programe To help MSMEs adopt Energy Efficient practices,

SIDBI has a model for extending end to end support

Technical Support Financial Support

Detailed Energy Audit

DPR Preparation

Implementation Support

Post Implementation (M&V)

Loans Rs. 10 to Rs. 150 Lakh

Loan upto 90% of total project cost

Interest rebate

Project Coverage - EE Retrofit Projects - RE Projects - Cleaner Production Projects

Partial Risk Sharing Facility for Energy Efficiency (PRSF) Project

1. Empower and promote ESCO-implemented energy efficiency projects

2. Encourage banks / FIs to finance ESCO projects through credit enhancement

3. Energy Savings Performance Contracting (ESPC)

Objectives

1. Large industries (excluding thermal power plants)2. MSMEs3. Municipalities (including street lighting)4. Buildings

Sectors Covered

1. Extent of guarantee - 75% of the loan amount 2. Minimum loan amount INR 10 Lakh and maximum loan

amount of INR 15 Crore per project3. Max INR 45 / 40 crores exposure limit

Risk Coverage

Rooftop Solar PV Initiative in Faridabad Cluster

Project Size: 20 kW to 200 kW Eligibility: MSME units having satisfactory track record of net profits Promoter Contribution

15% (Project Cost up to INR 1 Crore) 20% (Others)

Repayment period Up to 7 years including moratorium of 6 months

Collateral is not required Technical support through ISTSL

Feasibility Assessment EPC Vendor Selection (demand aggregation & tendering) Quality Inspection

PMC ServicesActivities for National Small Industries Corporation (NSIC)

Based on open bidding process, Span Pumps Pvt. Ltd., Pune has been identified as L1 bidder for implementing 513.8 kWp in 3 sites located in Delhi, Hyderabad and Chennai under CAPEX Model

Unit Rates: Delhi – INR 56,340/ kWp Hyderabad – INR 55,860/ kWp Chennai – INR 56,790/ kWp

Power generation commenced by 15th March 2017

PMC ServicesActivities in Ministry of Earth Sciences (MoES)

Feasibility Assessment in 5 Institutions of MoES in Delhi, Noida, Pune, Hyderabad and Chennai

Selected Clean Max Enviro Energy Pvt. Ltd., Mumbai through bidding for implementing 1266.5 kWp under RESCO Model

Unit Rates (fixed for 25 years) range (INR 4.6 to 5.3) Delhi – INR 4.90/ kWh Noida – INR 5.20/ kWh Pune – INR 4.60/ kWh Hyderabad – INR 4.85/ kWh Chennai – INR 5.30/ kWh

PPA has been signed with MoES (Delhi), NCMRWF (Noida) and INCOIS (Hyderabad)

Implementation of projects is expected by June 2017

Modes of Implementing Rooftop Solar Project

CAPEX (Self owned) Rooftop Owner invests in the Rooftop Solar PV System Engineering, Procurement and Construction (EPC) Agreement is

signed with Vendors and Payment is made by Rooftop Owner to Vendors on kWp basis as per agreed payment schedule

Vendors design, supply, install, test, commission the system and provide operation & maintenance services for 5 years

RESCO (Third party owned) Selected Vendor invests in the Rooftop Solar PV System Power Purchase Agreement (PPA) is signed with Vendors and

Payment is made by Rooftop Owner to Vendors on the basis of actual energy (kWh) supply

Vendors design, supply, install, test, commission the system and provide operation & maintenance services for 25 years

Business Models Self Consumption

Invest in the System (CAPEX) and reduce the energy bills through self consumption

There is no limit on the size of the system Power could be stored in batteries (however, cost will increase)

Sale of Electricity to DISCOM (Gross Metering) Invest in the System (CAPEX/ RESCO) and sell the total generated

electricity to DISCOM at tariff determined by SERC System capacity is limited by transformer capacity No banking facility

Self Consumption and Sale of Electricity to DISCOM (Net Metering)

Invest in the System (CAPEX/ RESCO). Consume the power (whenever there is demand) and export the power to grid (in case there is no demand)

System capacity is limited by contract demand/ sanctioned load Banking facility available within a financial year

Challenges in Rooftop Solar PV Sector

Incentives/ Subsidy/ Availability of Finance Subsidy/ Incentive is available only for Residential, Institutional and

Government Customers and not for Commercial and Industrial Customers.

Non-availability of soft loans Net-Metering

Though Net-Metering Scheme is envisaged as a game changer, DISCOMs are still concerned about loss of revenue and high-paying customers.

Getting grid connection is a time-consuming process. DISCOMs are not fully equipped for inspection and certification of rooftop systems.

Thank You

Energy Efficiency CentreVideocon Tower

Ground Floor, E-1, Rani Jhansi RoadJhandewalan Extension

New Delhi - 110055 Tel: 011 - 23682473-77

Email id: shankarh@sidbi.in

Back up Slides

Govt of India’s Renewable Energy Targets

175 GW by 2022• Solar – 100 GW (Large Scale – 60 GW, Rooftop – 40 GW)•Wind / Bio-power / Small Hydro – 75 GW

Present Scenario 30% Subsidy in the project cost for Residential/ Institutional/ Social

Sectors Up to 25% Incentive in the project cost for Govt. Buildings Technical Specifications/ Standards for the System Model Tender Documents (CAPEX & RESCO), EPC Agreement, PPA Benchmarking: Cost of the System

Capacity from 1 kW - 10 kW: INR 70/ Watt Capacity from 10 kW - 100 kW: INR 65/ Watt Capacity from 100 kW - 500 kW: INR 60/ Watt

Financial Support to DISCOMs for up-gradation, awareness campaigns, training etc.

State-level solar policies and gross/ net metering regulations in most of the States/ UTs

Online Portal (“SPIN”) for rooftop programmes, geo-tagging of projects

Empanelment of Channel Partners & New Entrepreneurs (~1,000 nos.) and Expert PSUs (18 nos.)

Customs/ Excise Duty Exemption for inverters etc.

Rooftop Solar PV System Basic Parameters

Area required: 10 sq. m of unshaded area/ kW. Orientation of Solar PV modules: South facing (inclination equal to latitude of the

location). Electricity generated: 1,300 units/ year/ kWp (considering 15% capacity

utilization factor). Type of Roof required: RCC/ Tin/ GI Sheet (generally, asbestos roof is not

recommended). Slope of the roof: Flat roofs are best suited. If the roof has slope, slope has to be

in North-South Direction for the systems to be installed. Shadow causing objects: Water tanks & pavement leading to steps within the

building and trees & other tall buildings in the surroundings. Nature of Surroundings: Surroundings have to be clean and non-polluting. Dust

reduces the efficiency of modules significantly. Lifetime: Solar modules have a life of 25 years. Inverters, cables have 7-10 years

warranty. Cost of the System: INR 70/ Wp (< 10 kWp), INR 65/ Wp (10 – 100 kWp), INR 60/

Wp (100 – 500 kWp). This is the maximum benchmark cost of MNRE.

Ministries Allotted to ISTSL

PMC Services

Collation of List of Sites from various Offices/ Institutions/ Departments of Ministry

Site Visit, Solar Potential Assessment, Technical Evaluation and Finalization of Feasibility Report

Collation of State-wise Projects and Finalization of Bidding Documents (CAPEX/ RESCO)

Submission of Project Proposals in MNRE’s SPIN Portal and getting sanction

PMC Services

Undertaking Bidding Process and Selection of Vendors

Monitoring Implementation and ensuring Net-Metering as per the State/ UT policies

Quality Control and Supervision during O&M Period

Dispute Resolution and Contract Management

Modules

• Warranty Certificate for Material (3-10 years) and performance (25 years)

• I-V curve

• Test Reports (for e.g. flash test, immersion test etc.)

• Compliance to set of IEC/ IS standards/ codes

Inverter

• Warranty Certificate

• Test Reports

• Compliance to IEC/ IS standards/ codes

Civil Foundation and Mounting Structure

• STAAD report

• Galvanization/ Anodization Report along with Guarantee for Mounting Structure

• Compliance of structure material/ fasteners to IEC/ IS standards/ codes

Others

• Cables• Copper (Armoured) multi core cables for AC• Copper Single core cables for DC• Covered with cable trays

• Earthing• DC Earthing• AC Earthing• Lightning Arrester

• Remote Monitoring System (for viewing power generation details online) and Weather Monitoring System

• Enclosures (ACDB, DCDB, Energy Meter) should be IP65 standard

Summary of Net-metering PoliciesS. No. State Maximum Capacity of the Project Cost/ kWh provided by DISCOMs

for net-exported units1 Andhra Pradesh Related to Contract Demand -2 Assam 40% of Contract Demand APPC3 Bihar 100% of Sanctioned Load APPC4 Chhattisgarh Related to Contract Demand APPC5 Delhi 100% of Sanctioned Load APPC6 Goa 100% of Contract Demand -7 Gujarat 50% of Contract Demand APPC8 Haryana 100% of Connected Load APPC9 Jharkhand 100% of Contract Demand -

10 Karnataka 150% of the Sanctioned Load 5.6311 Kerala 100% of Contract Demand APPC12 Madhya Pradesh 100% of Contract Demand -13 Maharashtra 100% of Contract Demand APPC14 Manipur 80% of Total Consumption APPC15 Odisha Related to Distribution Transformer 0.0016 Puducherry Related to Contract Demand -17 Punjab 80% of Sanctioned Load -18 Rajasthan 80% of Contract Demand -19 Tamil Nadu 100% of Sanctioned Load APPC20 Telangana Related to Contract Demand -21 Tripura 100% of Contract Demand APPC22 Uttar Pradesh 100% of Sanctioned Load 0.5023 Uttarakhand Related to Contract Demand -24 West Bengal Related to Contract Demand -