Solar Tracking Systems

8/10/2019 Solar Tracking Systems

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INTRODUCTION

With increasing competition and significant fall in feed-in tariffs of

solar PV projects, developers under constant pressure to secure

investment for their projects and, eventually, earn substantialprofits from the power projects. Due to the evolution in the solar

PV technology the solar tracking equipment have emerged as a

viable option to increase power generation at combatively low

capital investment while earning significantly more revenue than

projects without any tracking equipment (conventional solar PV

projects).

At the end May 2012, India had an installed solar PV power

generation capacity of over 970 MW and almost none of these

projects use any tracking equipment.

According to the draft regulations released by the Central

Electricity Regulatory Commission (CERC) for determination of

preferential tariffs for renewable energy technologies till

FY2016-17, the plant load factor (PLF) of conventional solar PV

technology has been taken as 19%.

The PLF of a project equipped with single-axis tracking equipment,

one of the simplest tracking technologies available, is around

23-25%. Seven project using this technology have been set up

subsidiaries of Lanco Infratech Limited. This note will compare the

benefits and added costs between a conventional solar PV project

and a project equipped with single-axis tracking technology, similar

to the one used in the projects by Lanco Infratechs subsidiaries.

METHODOLOGY

For comparison between conventional and single-axis tracker

equipped PV projects, parameters determined by the CERC and the

expected operational parameters assessed by the sevensubsidiaries of Lanco Infratech Limited for their respective power

plants have been utilized. The actual on-field operational

parameters and final output may vary from the values determined

in this note. Additionally, sector experts expect the actual benefits

about 30% lower than benefits expected under ideal operating

conditions.

The operational parameters for these seven projects have been

accessed through publicly available documents furnished by these

companies.

Comparison of capital cost, operation and maintenance cost is

based on the parameters announced by CERC, for conventional

project, and the higher limit of average industry parameters for

single-axis tracker equipped projects.

How much beneficial are tracker-equipped solar PV projects?

Climate Connect Limited, 2012 [email protected] London | New Delhi | San Francisco

Analyst Note | 12 July 2012

CONTENTS

Introduction

Additional Revenue Generation

Case Study: 5 MW solar PV project by Reliance

Industries Surplus Power Generation

Carbon Revenue

Additional Capital Cost

Conclusion

- Payback period

How beneficial are solar PV

projects equipped with tracking

equipped over conventional

solar PV projects?

Are the additional capitalexpenditure, operation and

maintenance costs related to

tracking equipment justified by the

increased power generation?

Solar power project developers in

India face these questions as they

grapple with issues like falling

feed-in tariffs and credit supply

crunch from the lenders.

This analyst note attempts to

analyze the additional benefits of

projects equipped with single-axis

trackers and compares them to

the added investment.

Solar PV projects by Lanco Infratech subsidiaries allocated under JNNSM Phase I (Batch I)

Developer Tariff Bids (Rs/kWh)Claimed Annual

Generation (MWh)Plant Load Factor (%)

Finehope Allied Energy 11.65 11,803 26.95

Saidham Overseas 11.75 11,797 26.93

Vasvi Solar Power 11.65 11,788 26.91

Khaya Solar Projects 11.50 11,790 26.92

Electromech Maritech 11.60 10,346 23.62

DDE Renewable Energy 11.55 10,239 23.58

Newton Solar 11.70 10,395 23.78

Source: Climate Connect TERMINAL

A solar PV project using single-axis tracking

equipment similar to that being used in Lanco

Infratechs projects could earn34.3 percent

additional revenuecompared to a project using

conventional solar PV technology over 25 years

through the sale of electricity

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ANALYSIS

A 5 MW conventional solar PV project with an assumed average

PLF of 19% would generate 8.32 million kWh every year. Over a

period of 25 years such a project is likely to generate about 194.66

million kWh or 7.78 million kWh every year on average (assuming

degradation in power generated at 0.7% for the first year and 0.5%

from second year onwards).

The average preferential tariff of the seven projects owned by

Lancos subsidiaries is Rs 11.63 per kWh. A PV project based on

conventional solar PV technology would thus generate revenue of

Rs 226.4 crore over 25 years or Rs 9.05 crore every year on average

through sales of electricity only.

Based on the data available for these seven projects, a 5 MW solar

PV project based on single-axis tracking equipment similar to the

one being used in these projects will have an average PLF of

25.52%. Such a project is likely to generate over 216.4 million kWh

over a period of 25 years or over 10.4 million kWh every year on

average.

A PV project based on single-axis tracking equipment similar to the

one being used in these seven projects would thus generate

revenue of over Rs 304 crore over 25 years or Rs 12.16 crore every

year on average through sales of electricity only. Thus a tracking-

based project would generate 21.74 million kWh additional

electricity over 25 years and earn 34.2% more revenue than a

conventional PV project.

Policy & Options for Sale of Surplus Power

A number of states in their solar power policies have specified that

the entities which will procure power from the solar PV projects

shall purchase electricity up to a set maximum limit. Thus solar PV

projects which generate more electricity than the stipulated limit

shall have surplus electricity.

The recent reverse-auction of 25 MW solar PV project in Orissa had

such a clause. The project was aimed at fulfillment of the solar

Renewable Purchase Obligation (RPO) and according to the

regulations, the Orissa distribution company had to purchase a set

maximum power generated from the project which was calculated

at a PLF of 19%.

The power generation capacity of projects equipped with single-

axis tracking technology is about a third more than theconventional solar PV projects. While the capital cost of projects

with tracking systems is comparatively higher than the

conventional solar PV projects, the power output is substantially

higher.

A project using tracking equipment would be able to generate more

power compared to a project based on conventional PV technology

and can thus sell any surplus power through other schemes.

A project with PLF of 25.52% (average PLF of the seven projects

owned by Lanco Infratechs subsidiaries) would be able to generate

over 2.82 million kWh every year more than a project with PLF of

19%.

A project developer would have several options to use or sell this

additional power. The developer may utilize this surplus power for

captive use, sell power to a third-party consumer/distribution

company/power exchange and earn Renewable Energy Certificates

(RECs) as well.

The project developer would be able to sell surplus power at Rs 3.6

per kWh (average power trading price in CY2011 at Indian Energy

Exchange).



Comparison of Performance of Six Solar PV Projects

Assessed by Ministry of New & Renewable Energy

The Ministry of New & Renewable Energy had assessed the

operation of six solar PV projects. These six projects are

among the very first solar PV projects to be commissioned in

India. These projects are owned by Moser Baer, West Bengal

Green Energy Development Corporation, Azure Power,

Maharashtra Power Generation Corporation, Sri Power and

Reliance Industries. Some of these projects were laterincluded in the Phase I Jawaharlal Nehru National Solar

Mission through the migration policy.

Reliance Industries Limited has installed a 5 MW solar PV

project at Khimsar, Rajasthan. The project is one-of-a-kind in

India as it uses five different solar PV technologies. The

project uses fixed structure modules, dual-axis tracking

modules, single-axis tracking modules and concentrated solar

PV modules. The project uses mono-crystalline, multi-

crystalline and thin-film solar modules.

According to the data released by MNRE, the RIL project

generated over 7.47 million kWh between July 2010 and June

2011. The data released also states that the annual average

PLF of the project during this period was 18.08% which was

18.1% to 34.6% higher than the average PLF of three other

projects for which data was available. The highest PLF in any

month for the project by RIL was 23.63% which was highest

among six projects.

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References:

Draft CERC (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2012. Central ElectricityRegulatory Commission. 11 November 2011, New Delhi

Achievement till 31 May 2012, Ministry of New & Renewable Energy, Government of India, last accessed on 04 July 2012www.mnre.gov.in/mission-and-vision-2/achievements

Database of Indian solar power projects, Climate Connect TERMINAL, Climate Connect Limited, last accessed on 04 July 2012 http://www.climate-connect.com

Reliance Industries Limited 2011, An overview & performance analysis of 5 MWp solar PV plant at Khimsar, Rajasthan, Powerpointpresentation.

Utility Scale Solar Power Plants A guide for developers and investors, International Finance Corporation

Shingleton, J., 2008. One-Axis Trackers Improved Reliability, Durability, Performance, and Cost Reduction. National RenewableEnergy Laboratory (NREL). New York, February 2008

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Featuring extensive information of over 300 solar projects

Search across variousparameters Policy, PPA

signed with, Location,Capacity, Developer,

Technology

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Disclaimer

Climate Connect Ltd has taken due care and caution in compilation and reporting of data as has been obtained from various sources including which it considers reliableand first hand. However, Climate Connect Ltd does not guarantee the accuracy, adequacy or completeness of any information and it not responsible for errors or omissionsor for the results obtained from the use of such information and especial ly states that it has no financial liability whatsoever to the users of this report. This research andinformation does not constitute recommendation or advice for trading or investment purposes and therefore Climate Connect Ltd will not be liable for any loss accrued as aresult of a trading/investment activity that is undertaken on the basis of information contained in this report. Climate Connect Ltd does not consider itself to undertakeRegulated Activities as defined in Section 22 of the Financial Services and Markets Act 2000 and it is not registered with the Financial Services Authority of the UK.
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.mnre.gov.in/mission-and-vision-2/achievementshttp://www.mnre.gov.in/mission-and-vision-2/achievementsmailto:[email protected]:[email protected]

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