RUMSL Indian Railway Transaction

4th September, 2018

Strictly Private and Confidential

Agenda

1 Background 3

2 Details of Transaction 8

3 Savings due to Transaction 13

4 A Concept, for thought and can be implemented, together

16

Page

2 RUMSL

Agenda

Background

3 RUMSL

1 Background Agenda

India to reduce the “Emission Intensity” of its GDP by 33 to 35% by 2030 from 2005 level;

India’s share of non-fossil fuel in the total installed capacity is projected to change from 30% in 2015 to about 40% by 2030;

Installation of Renewable Energy of 175 GW by 2021-22 including 100 GW of Solar Energy;

INDC Target of India

4 RUMSL

1 Background Agenda

Impact of Rewa Transaction

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1 Background

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4.48

3.15 2.62 2.44 2.65

2.44

2.79 2.59

Bid Capacity (MW) Lowest Tariff (Rs./kWh)

RUMSL

3.30

Agenda

Generation and Consumption Profile

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Solar Power Generation and Railway Consumption Profile

Generation Profile of Solar Project Consumption Profile of Railway

6 RUMSL

1 Background Agenda

Optimum Scheduling

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Time block wise Optimum Scheduling explained for a day

Generation from Solar Parks Normal Scheduling for 757 MUs

Optimum Scheduling for 757 MUs

7 RUMSL

1 Background Agenda

Details of Transaction

8 RUMSL

2 Details of Transaction Agenda

Solar Park Capacity Land Required Land Identified

Neemuch-Mandsaur 450 1,050 1,091

Agar 550 1,150 1,400

Shajapur 500 1,050 1,245

Solar Parks and its preparedness

o Rewa Ultra Mega Solar Limited will be an implementing agency for all three solar parks.

o Allotment of revenue land (GoMP land) to RUMSL is under process.

o IFC as a Transaction advisor has been appointed by GoMP for this transaction.

o RUMSL has applied for Stage-I connectivity for each solar park.

o RUMSL is in discussion with World Bank for loan towards expenses of internal evacuation

infrastructure of each solar park.

o RUMSL is in discussion with PGCIL to appoint them as a PMC for construction of internal

evacuation infrastructure.

o RUMSL has appointed PwC for making of DPR of each solar park.

9 RUMSL

2 Details of Transaction Agenda

Solar Park Scheduling

10

2 Details of Transaction

RUMSL

450 MW Solar Generation (Neemuch

Solar Park)

Railways in Northern Region – 66 MW

MPPMCL – 384 MW

1500 MW Optimal Scheduling

1050 MW Solar Generation (Agar &

Shajapur Solar Park)

Railways in Western & Eastern Region – 141 MW

MPPMCL – 843 MW

1500 MW MW (LTA with

ISTS)

MUs

MPPMCL 1293 2630

Indian Railway

207 782

Agenda

State MW requirement at Drawl point

Railway OA (MW) tied up

Solar Park OA (MW) to be tied up

UP – ISTS 140 85 17

UP - STU 115 100 28

Jharkhand 79 70 15

DVC 125 75 24

Haryana 48 40 11

Rajasthan 51 55 10

Gujarat 87 90 17

Bihar 76 50 15

Maharashtra 354 340 70

1075 905 207

Existing supply arrangement of IR and supply of solar power

Note: Drawl point will be @ STU for all states and in UP drawl point is at both STU and CTU.

11 RUMSL

2 Details of Transaction Agenda

Scheduling for Indian Railways post commissioning of MP Solar

12

2 Details of Transaction

RUMSL

17

28

15

24

11

10

17

15

70

38

64

73

202

35

75

50

82

0 50 100 150 200 250 300 350

UP ISTS

UP STU

JH

DVC

HY

RJ

GJ

Bihar

MH

Sequence of Scheduling in MW for Railways along with RGPPL and BRBCL between 06:00 hrs to 18:00 hrs

Solar RGPPL BRBCL

Scheduling sequence based on merit order for solar, gas and coal power plant for Indian railways under this transaction for 782 MUs or 207 MW capacity.

Agenda

Savings due to Transaction

13 RUMSL

3 Savings due to Transaction Agenda

Benefits of Transaction If power is procured to comply with RPO

Major advantage is replacement of costlier thermal power under open access arrangement through

ISTS by cheaper solar power.

Other benefits due to Optimum Scheduling are:

o Lower STU charges on account of optimum scheduling (since lower LTA required as compared to normal solar power procurement transactions). Approximate saving would be INR 19 crore.

o Stable supply during day time.

o Eliminating the risk of time required by STU for approval of LTA since lower capacity can be accommodated conveniently.

14

RUMSL

3 Savings due to Transaction Agenda

Benefits of Transaction If IR procuring solar power over and above RPO requirement

Comparing landed cost of solar power and DISCOM tariff:

o Discom tariff for Railway traction is varies from INR 4.6/kWh to INR 8.8/kWh.

o Average Discom Tariff in all the given States is around ~ INR 6.0/kWh.

o IR’s saving on procurement of solar power over and above RPO requirement is ~ INR

37.7 crore.

Comparing landed cost of solar power and thermal power under OA

arrangement:

o Average power procurement cost of IR from RGPPL and BRBCL is ~ INR 5.17/kWh.

o IR’s saving on procurement of solar power over and above RPO requirement is ~ INR

10.2 crore.

15

RUMSL

3 Savings due to Transaction Agenda

A Concept, for thought and can be implemented, together

16 RUMSL

4 A Concept, for thought and can be implemented, together Agenda

Savings to MPPMCL from banking facility

17 RUMSL

4 A Concept, for thought and can be implemented, together

-

50

100

150

200

250

300

-

2,000

4,000

6,000

8,000

10,000

Hourly State Load Sample and Solar Generation (MW)

State Load Solar Power Generation Consumer Requirement

Banked Power: Avoided generation from high cost stations for power purchase by State Discom.

Supply of Banked Power to Institutional Consumer from low cost stations of State Discom.

Agenda

Towards cleaner and greener future….

Thank you