Efficiency of DG Sets The efficiency of DG Sets mainly depends upon: y y Load Factor Power Factor

The above figure indicates that the loading at 60 % is 3.00 UPL (28%) and at 80 % loading is 3.6 UPL (33.5%). In fact, the UPL curve is flat from 60 % onwards and hence loading should be above 60%. Typical energy balance of DG set Input: Outputs: 100% Thermal Energy 35% Electrical Output 4% Alternator Losses 33% Stack Loss through Flue Gases 24% Coolant Losses 4% Radiation Losses Only one third of input Diesel in KCAL is converted to Electrical output as KWH and so the efficiency of generation of DG set is poor only compared to other means of generation Energy Value and Greenhouse gas effect Industrial/marine diesel genset 1 litre of diesel emits 2.9 kg of CO2 ; Energy 38.6-39.6 Unit MJ/l Greenhouse CO2 74.9 Unit kg/GJ

1 kWh = 3.6 MJ

DG Sets Competition in India The market can be broadly divided into three segments namely the small diesel generators (15 75 kVA), medium diesel generators (75.1 - 375 kVA), and large diesel generators (375.1 - 2000 kVA). The total genset market is now estimated to grow steadily at a compound annual growth rate (CAGR) of about 10.1 percent in revenue terms between FY2010 and FY2015. New telecom towers are expected to be added to accommodate the needs of 3G service deployment, creating a fresh wave of demand for diesel generator sets in the range of 15 - 30 kVA The emission norms in India are being continuously updated to match those in the European Union. So the major suppliers of diesel gensets will be facing stiff competition from the renewable energy sources like the solar PV or CSP wherin this industry the price of materials and thus cost of energy is decreasing on an year by year basis. The Indian generator market size as on 2008, was INR 57 bn. Market Leaders in Portable Segment (Mostly Domestic Applications) (0.5-6 kVA ) y y Honda Siel irla Power

Market Leaders in Medium & Large Stationary Segment (Industrial and Marine Applications) y < 125 kVA o Kirloskar Oil Engines Ltd (KOEL) o Mahindra Powersol 125-300 kVA o Mahindra Powersol o KOEL o Cummins 300-2000 kVA o Cummins o CAT o KOEL Other significant players are : Greaves Cotton, Atlas Copco, Wartsila, Powerica, Eicher, etc.

Which segment/sector is susceptible for transition to solar pv: In the telecom sector (15-20 kVA): y y y y y DG Running Hours: 16 20 Hrs per day. (Rural / Semi-urban) Each BTS tower (base station/cell phone tower): 4000 Lt diesel / year. Telecom Towers are estimate to burn 2 Billion Liters of Diesel (around 500 million barrels) annually at a cost of Rs 7000 crores. (March 2011) Without Diesel subsidy the cost of power generation shall go up by 30-40% more India s Fossil Fuel Subsidies have led to hundreds of distortions in the economy. Corruption, Pilfering, Adulteration is carried out on a large scale due to government subsidies. Government has been trying to convert these towers to renewable energy forms; most of the tower operators have been very slow to implement this change. Indus Towers the largest one plans only 2.5% conversion while the others like GTL,Viom and American Tower are doing only marginally better. Indian telecom infrastructure companies, including Indus Towers, American Tower Company, GTL and Viom Networks (erstwhile Tata Quippo), that depend heavily on diesel generators to power more than 3.5 lakh towers across India, are conducting pilot tests on solar, wind energy, bio-diesel and fuel cell-based equipment and rolling out clean energy solutions strategy. While some tower creators are looking at compressed natural gas and piped natural gas to power towers, Indus Towers, the largest with over 1 lakh towers in India, will set up 2,500 solar towers by September this year. Viom Networks, which operates more than 38,000 towers across India, plans to run more than one-fourth of this number on alternative energy within the next two years. It plans to run 2,000 towers on solar power alone by 2013 Another tower major GTL will use a combination of solar and bio-diesel based energy solutions to bring down overall energy consumption by one-fifth over a period of time

y y y

In the agricultural sector (1-20 kVA): y y Currently, the agriculture category which uses power for irrigation pumps contributes around 20 percent of the total power demand of India. The grid power tariff to agriculture segment is heavily subsidised. The power supply is staggered and the network performance inefficient in most cases.

y y y y y y

Moreover, the subsidy burden is increasing due to the increase in conventional power costs thus negatively impacting the financial health of the State and power utilities. Furthermore, there are a large number of agriculture pumpsets that currently use diesel power where there is no grid connection available. Diesel pumpsets could be replaced by solar-powered pumpsets due to favourable cost economics. According to the KPMG report, a cumulative potential of around 16,000 MW from agriculture category could be realized by 2022. SPV pumping systems can be installed in boreholes, tanks, cisterns or rivers. DC surface pumps are designed for high flow rates at low heads. DC floating pumps are suitable for wide range of flow and head situations.