1. Micro-gridSupply of energy to a hamlet using multiple sources of energy & managing the S-Dcomplication LANCO Group, AllAll Rights Reserved LANCO Group, Rights Reserved

2. Microgeneration Large-scale generation Waste Heat Can be used for heating purposes knownUsed in some privately owned by-product as micro combined heat and power. industrial CHP installations. Transmission Lower lossesHigher losses(8% of power losses generated globally & 26% inIndia is lost in AT&C) Changes to Reduces the transmission load & thusIncreases the power transmitted, Grid reduces the need for grid upgradesand the need for grid upgrades Reliability and PVs, Stirling engines, and certain other Managed by power company. Maintenance systems, are usually extremely reliable. requirements Sales-pitchFocused on the "green-ness" of energy Focused on the energy crisis. exaggerations Ability to Renewables: Actual production is only a Fuel based systems are meet needs fraction of nameplate capacity. fully dispatchable LANCO Group, All Rights Reserved 3. 2 GW market by 2016 in India Rural applications:Agricultural, Domestic,Lighting, Industrialapplications87% of rural populationhas lesser than requiredelectricity25% of Indian population donot have access to electricityowing to last mile connectivityissues- IEA, Oct 2012 PV cost reaching grid parity infew states LANCO Group, All Rights Reserved 4. Cost economicsFalling renewables LCOE vs rising APPCMost technological cost hurdles removedDirect consumers more creditworthy than SEBsPolicy landscape $/Wp of modules 1.6July blackout: Green Energy corridor1.4 1.2 report suggests micro-grid1Oil import bill: Energy security0.8 0.6 enhancement by means of DDG 27.04.2011 01.06.2011 29.06.2011 27.07.2011 24.08.2011 21.09.2011 19.10.2011 16.11.2011 14.12.2011 11.01.2012 08.02.2012 07.03.2012 04.04.2012 02.05.2012 30.05.2012 27.06.2012 25.07.2012 22.08.2012 19.09.2012 17.10.2012 14.11.2012 12.12.2012 16.01.2013 13.02.2013Diesel subsidy directed at rural but injected at telecomHigh AT&C loss: 28% national average, and low ARRs indicate a compulsory shift to distributed generationEnhancing rural economyRural development needs energy at the last mileRGGY implementation LANCO Group, All Rights Reserved 5. Captive + RECRESCO + RECAssumptionsCaptive + REC Risk to BOO model mitigated by microgridTariff escalation5%RESCOs can schedule PV powerREC prices 2012-17: Rs.9.3 per kWh procurement 2017-22: Rs.2.2 per kWh Scalable kits of 10kW can keep 2017 onwards: Rs.0strides with business growth of industryCapexRs. 8.8 cr/MW LANCO Group, All Rights Reserved 6. Farmer Kulveer Singh of Ganganagar told TOI, "With the help of the pump, money spent on fuel consumption is saved. Inone hour, 2.5 litres of diesel is required, and in a day a generator is run for at least 8 hours. The solar pump is very costeffective. Cost of 1 kWh of DG is Rs. 18 at Diesel cost of Rs. 50 compared to Rs.6.7 from PV pump. A 3 HP pump costs Rs. 4.5 Lakhs & gets a 30% capex subsidy.Components SpecificationMajor Barriers to implementSPV panels 1800 Wp Select kharif crops need water only in the 7-9 am & 5-Motor pumpsets 2 HP Centrifuge DC 7 pm when its dawn & dusk.Operating voltage60 V DC Average rural monthly income is Rs. 3000 perhousehold, hence affordability an issue.Borewell size150 mm dia Inaction based on poll promiseSuction head 7m to 10m BOOPumping quantity 1,40,000 lpdmodel Modular storage systemsA variation of the agricultural pump can also be used inAttractive EMIsalt pans & prawn cultivation, where DG is harmful. Thisby itself is a Rs.5000 crore market. LANCO Group, All Rights Reserved 7. Assocham report states cold storage market in India would be Rs. 64000 crore by 2017 with a phenomenal 25% CAGR!! http://articles.economictimes.indiatimes.com/2013-02-06/news/36949978_1_cold-chain-cold-storage-storage-capacity65% of CoO of a cold storage is for energy, hence its a Rs.38000 crore market.51% FDI in Retail to only increase the size of the market for cold storage. PolicyRequirement for storage: No need of There is no specific policy in this direction, storage for fishing but for agriculture & but load mitigation can greatly be done by poultry, mobile cold storage vans could solar. also be a option LANCO Group, All Rights Reserved 8. One Astronomical stats: Per average farmer globally consumes 1100 units per yr, compared to 530 units inIndia. If SPV were to meet that requirement alone, its a Rs. 64 Lakh crore market!!Policy: RGGY gives 90% subsidy, and its implementation arm , Rural Electricification Co-operation arrangesfor 5% soft loan as well. Success storiesIRR of 12% to 18% expected with 80% D-E ratio. Gram Power Mera GaonTechnology options: SELCOSmall distance (upto 1km, DC transmission recommended)Centralized battery storage (Li-ion, Flow batteries) LANCO Group, All Rights ReservedSource: MoEF, http://www.jseejournal.com/JSEE%202012/PDF%20file%20JSEE%203(1)%202012/7.Energy%20scenarios%20pp.%207-17.pdf 9. Assuming a 5% hike in tariff YoY for next 25 years, and TNpolicy for net-metering the LCOE turns out to be lesser thanRs.5, which is lesser than the cost incurred by installing ainverter back-up Plug & play kits serve precisely the said purpose Policy lacunae: Earlier subsidy was offered only to Pb-Acidbatteries, and now there is a cap on capex which meansinstallers prefer lower capex rather than LCOE for setting up. LANCO Group, All Rights Reserved 10. Use ComponentSub-componentEliminates T&D Solar ( PV, CSP)Distributedlosses, and enhances Windusage of renewables.Generation Bio-massUnreliability of RE is Harmonics controllerSteadier backupgreatly reduced. Voltage & frequency regulation of power Auxiliary Reactive loadsSchedules supply & Communication Net meters, PQM, OMS, Output forecastsdemand of power.control Radio/micro-wave 2 way communicationShifts peak, reliablepower supply, Batteries: Li-ion, Pb-Acid, VRB, ZBBcompliments PV.Energy storage Reactive loads: Flywheel, capacitors, RLC circuit Grid level: Pumped hydro LANCO Group, All Rights Reserved 11. Forms of energy storageMajor AdvantagesKey disadvantagesElectrochemical batteryUses DC to store, and fitsUnfit for very large size & the different scales of PVvery small sizesPumped storage Best fitted for GW levelVery site specific storageCapacitors (Ultra-small) Intermittent voltage &Expensive & non-scalable frequency regulationFlywheelsLoad balancing & powerBulky & stores relatively quality managementlesser energyCryogenics Compact & mechanicalUnproven & risk of based-less prone to failure operating in the high insolation solar fieldsEvery transformation of energy accounts for atleast 12% energy dissipation, which initself makes storage of electrons as electrons (closest to ions) ensures least wastage. LANCO Group, All Rights Reserved 12. Reason for battery: Minimal transformation of energy Least setup time in compliance with solar Metrics to measure cost economicsLevelised Annual Cost (LAC): Divide the required Ah by DoD, and no. ofreplacements from cycles per day and system life.Calculate the additional capex, and add to capex inLCOE model. Multiply the yield by DC-DC turnaround efficiency toget the effective yield to be used in the LCOE model LANCO Group, All Rights Reserved 13. Lead acid VRBLi-ionNa-S Na-Ni Zn-BrSpecific energy 30-40Wh/kg10-20Wh/kg100-250Wh/kg150Wh/kg90-120Wh/kg 22.7Wh/kgEnergy density 60-75 Wh/l 15-25Wh/L250-620Wh/L250Wh/L166Wh/L17Wh/LSpecific power180W/kg220W/kg 250-620W/kg250W/kg450W/kg150W/kgCharge eff50% 75% 80%Net 87%Discharge eff 92% 80% 90%Net 87%Energy price(capex)1Wh/USD .7Wh/USD 2.5Wh/USD 1Wh/$2.2Wh/$1.053Wh/$Power price(capex) 1.5W/$.67W/USD .33W/$ .83W/$ .75W/$2W/$ 8%@21,15%@40,31%Self discharge rate3-20%/month10-20 years@60 per month2% per monthCycle durability 500-800 cycles>10000 cycles400-1200 cycles 3000-5000 cycles2000cycles15000 cyclesNominal cell voltage 2.105V1.5-1.55V3.6/3.7V 2.58V3.5VMax power rating1-.8MW10kW-5MW 7kW-1MW1MW-15MW1 MW0.5MWDischarge time 4 seconds-5hours 45mins-10 hours 6mins-15hours 7hrs-10hrs8 hours 1hr-5hrsDoD 80% 95%100%90% 100% 100%Advantageousproperty Easily availableLowest maintenance Compact Large scale Telecom applications Ideal for solar with no space constraints & Where space is a places where life-timeconstraint & whereLarge farms, and costs are morefluctuations in dutyintegratable with Li-Purpose augmentedSmall rooftops with important than one- cycle of recharge is Likely to be a fit ion for medium sizewith solar capex constraints time costsrequired.Grid level storagebetween Li-ion & Na-S applications. High operating temp;Na should be in Freezes if left in theMajor disadvantage Low life time Occupies high space High capex molten statecold Too much space. Li chemistry still defined on a usageSMF,AGM, TubularV salts with morebased, henceare being used but no charge density, Zn-Br, chemistryNew ways of coping toScope for new paradigm shiftFe-Cr becoming easy optimisation scopekeep Na warmNi-Fe or Na-Ni-I might Substitute bromidetechnologyGroup, All Rights Reserved LANCOexpected. substitutesremainsresearched widely.occupy lesser space with other hallides. 14. Bulk applications: 1 MW onwards, calculations done for a 20MWp solar farm and 3hrs of storage, 25 yrs system sizeTechnology-wise cost Na-S Zn-BrVRBNo. of replacements 31 1Capacity overshoot(DoD)11% 0% 5%$/W$ 2.7$ 0.5$ 1.0$/Wh $ 1.0$ 1.0$ 1.4Round-trip efficiency87%60%60%Initial capex cost(USD) $16 mn$ 14.25 mn $ 22.56 mnTotal cost(Rs.) 324 cr 270 cr318 crEnergy output (kWh)204.89 mn194.466 mn194.466mnLCOE(Rs./kWh)15.8313.9016.4Flow batteries(VRB & Zn-Br) are better suited to bulk storage, given the longevity & lesser maintenance. Features that compliments integration with PV.Li-ion applicable only when precision & greater dependence needs to be imparted in the system. LANCO Group, All Rights Reserved 15. Bulk applications: 10kW onwards, calculations done for a 100 kWp solar farm and 5hrs of storage, 25 yrs system size & 2 cycles per day Technology- wise cost Na-SLi-ionZn-BrVRB Na-Ni Li-FePb-Acid No. of replacements 53 2210 316 Capacity overshoot(DoD) 11% 0%0%5%5% 0%25% $/W $ 2.7$ 1.70 $ 0.5 $ 1.0$ 1.3$ 1.65$ 1.00 $/Wh $ 1 $ 1.23 $ 1.$ 1.4$ 0.5$ 1.10$ 1.00 Round-trip efficiency 76% 96%60%60% 76% 94%85% Initial cost($) 0.11 mn 0.123 mn 0.13 mn0.15 mn 0.05 mn 0.11 mn0.125 mn Total cost(Rs.) 2.18 cr1.76 cr 1.73 cr 1.87 cr1.67 cr 1.66 cr2.8 cr Total yield (MWh)9871039947947 987 10341011 LCOE (Rs./kWh)22.08 16.92 18.27 19.7016.99 16.09 27.69Combination of Zn-Br & Li ion batteries, seem to rule the roost. LANCO Group, All Rights Reserved 16. Gap analysis for integrating battery with PV Whom we could partner with.. Zn-Br redox batteriesWhat weWhat we have dontZBB Micro-grid installation Multiple resource management Na-Ni battery Fiamm Telecom solution EVs Li-ion,Ni-Cd & Pb-acid batteriesBYD Micro-grid installation Evs PV EPC Meeco Li-ion from Durion Micro-gridOther storage providers: Gleideweister (VRB), SAFT (Li-ion), High-view storage LANCO Group, All Rights Reserved 17. Key technology comparisonsBatteryTechnologiesPlayers Countrytechnology commerciallyclassification availableFlow batteries Zinc BromideZBB USAFlow batteries Vanadium RedoxCellstrom(Gleidwe Switzerland ister)Flow batteries Iron Chromium Deeya India-USMolten SaltSodium SulphurNGK JapanMolten SaltSodium Nickel Fiamm SwitzerlandLi-ion Manganese based PSI, SAFT Korea,FranceLi-ion Cobalt & Iron Meeco, BYDEU,China based LANCO Group, All Rights Reserved 18. Short-listing of technologies For grid level storage Pumped Hydro seems to be the most effective form of storage Longer life, lower LAC & suitability for kW to 10MW range makes flow, molten & Li-ion batteries a better proposition LANCO Group, All Rights Reserved 19. Evaluation of key probablesCompany Name ZBB Fiamm BYDProducts portfolio PIU,micro-grid, Zn-Br Na-Ni, Ni-Cd, Lead Acid Lead Acid,Li-ion(2 batteries; Integration with batteries; Electric vehicles, chemistries) batteries; other batteries possibleIntegration with otherPCU, multi-source mgmt batteries possibleCore strengths Integratable with other Rich experience in micro- Very broad product batteries alsogrids in ItalyportfolioWeakness Arguably a start-up Not open to varied batteryChinese tag applicationsStrategic threat Fragile finances being a start- Is a PV module mfg also, upmight set-up a shop on their own for micro-grids in IndiaEconomicsSuitable for MW farms & kWOnly for kW but longCompetes at every level level set-ups duration storage like telecom LANCO Group, All Rights Reserved 20. Reason for rejection of other players CompanyReason CellstromOnly storage solution & no power electronics or micro-grid solution available MeecoOwn a subsidiary called Durion which does Li-ion, but is by itself a solar EPCand has done 200MW. Partnering with them might create additionalcompetition for solar EPC in India later SAFT Too big to deliver customized solutions NGKNa-S had a explosion in September 2011 and since have stopped selling alongwith warranties PSINot suitable to large farms, and not a big enough player DeeyaToo early in the start-up stages LANCO Group, All Rights Reserved 21. Small Indian players Foreign govt. agencies promoting micro-grid Apnagaon NEDO-Japan Meragoan EBTC-EU Domestic battery manufacturers Husk power Rocket Kuvam energy Amaraja Gram power Amco(is entering into JV with SAFT)Indian companies trying to venture into micro-grid & smart-grid HCL General Capgemini Power Grid L&T ABBCISCO infosystems ElectricMahindra-IBMSiemens Schneider Azure Hitachi Tata powerCleanventures LANCO Group, All Rights Reserved 22. Thanks. LANCO Group, AllAll Rights Reserved LANCO Group, Rights Reserved