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ISA SOLAR PV CONCLAVE 2008

A presentation by

B. Venkateswara Rao General Manager (Projects & Technical) Indian Renewable Energy Development Agency Limited September 29, 2008

Power Scenario in India
Installed Capacity Share of RE Solar Power Plants Harnessed Average Electricity Shortage Peak Shortage Access to Electricity (Rural) : : : : : : 145586 MW (As of July, 2008) 12194 MW (8%) 3 MWp 9.6% 13.8 % 44% households

To meet the growing demand and shortages – generation capacity needs to be doubled by 2017 and increased 6 folds to 800 GW by 2031 - 2032

Power Sector – Projections
 Target for Capacity Addition during XI Plan ( 2007 – 2012)  Target for Capacity Addition during XI Plan ( 2007 – 2012) (Renewable Energy)  GOI target – ‘Electricity for all by 2012’  About 18000 remote villages to be electrified through RE  About 25% of remote villages i.e. 4500 villages form a very viable market.  Majority of villages spread across states like U.P., Uttarakhand, Chattisgarh, J&K, Jharkhand, Orissa and NER States where Solar PV would be the only Renewable Energy Resource. : 78578 MW : 14000 MW

Targets during XI Five Year Plan (2007 – 2012)

Power Sector at Glance
Nuclear 3% Hydro 25% Renewable 9%

Thermal 63%
• Thermal • Hydro 91, 907 35, 909
Renewable Energy (including Hydro) accounts 34% of the installed capacity in India

• Renewable 12,400 • Nuclear 4, 120

2008) 8757 MW 2180 MW 606 MW 800 MW 55 MW 3 MW Wind 45000 MW Small Hydro 15000 MW Biomass Power/ 16000 MW Bagasse Cogeneration 3500 MW Waste to Energy 2700 MW Solar PV 20 MW/sq.03.Indian Renewable Energy Scenario Sector Potential Achievement (As on 31.km Renewables : Total installed capacity 12400 MW Target for Capacity Addition during XI Plan ( 2007 – 2012) : 14000 MW .

5) Lantern (7.Solar PV Market Growth in India Sector-wise use of PV Modules (335 MWp aggregate capacity) Pump (11) Street Light (5.5) Home Light (16.5) Exports (225) Sector-wise use of PV Modules (335 MWp aggregate capacity) .5) Power Plant (6) Telecom (22) Others (40.

Solar PV Production Year Solar Cell Production (MWp) 40 53 155 200 Solar Module Production (MWp) 75 103 155 275 2004-05 2005-06 2006-07 2007-08* * Estimate .

 Estimated Turnover – – – – 9 Nos. 80 Nos. Co. Approx. 21 Nos.  PV System Mfg.Present Status of Solar PV Developers / Manufacturers in India  PV Cells Mfg.  PV Module Mfg. Rs. Co. 4000 crores . Co.

MNRE Demonstration Programme on Grid Interactive Solar Power Generation .

Objectives • Development & demonstration of mega-watt capacity grid interactive PV Power generation in the country • Reduction in the cost of Solar PV / Thermal Power plants / systems • Reduction in the cost of electricity generation from grid connected Solar PV Power plants Demonstration Programme on Grid Interactive Solar Power Generation .

Implementation Arrangements • Project proposals will be considered by Ministry of New and Renewable Energy (MNRE) for approval on ‘first come first serve’ basis in accordance with guidelines of MNRE. • Project proposals will be considered on merit basis. Demonstration Programme on Grid Interactive Solar Power Generation . own and operate basis in accordance with the guidelines of MNRE. • Projects set up by the developers on build.

per kWh for Solar PV Grid Power Plant (deducting power purchase rate which is distributed at notional value of Rs.12/.15/-).  Minimum of 1 MW and maximum of 5 MW can be allocated to a Developer.Targets and Generation based Incentives  Support for maximum capacity up to 50 MWp (Maximum 10 MW for each state) during 11th Five Year Plan. Demonstration Programme on Grid Interactive Solar Power Generation .  Generation based incentive up to maximum of Rs.

2010 for the generation based incentives and guidelines which will be applicable for all such proposals and projects.  The generation based incentive is available for maximum period of 10 years from the date of approval and regular power generation from the project.Targets and Generation based Incentives Contd.  Third Party Sale. Demonstration Programme on Grid Interactive Solar Power Generation .  MNRE may announce a new policy by 31. Banking and Billing of power is not permitted..03.  Accelerated depreciation benefit is not allowed while availing the incentives.

Demonstration Programme on Grid Interactive Solar Power Generation .Eligible Organizations All existing Registered Companies. Public and Private Sector PV Project Developers Individuals. Central / State Power Generation Companies. Financial Institutions. Societies and other unorganized investors are not eligible to participate DIRECTLY. NGOs.

Roles and Responsibilities (For Grid Interactive Solar Power Generation Projects) Approval / Sanction of Projects by  MNRE Disbursement of generation based incentives through  IREDA Installation and Maintenance of the power plant by  Project Promoter Inspection and Monitoring of the Power Plant by the  team of officials from MNRE / SNA / Utility / IREDA Field Evaluation studies by MNRE through  Professionals / Independent Organizations Project loan can also be provided by  IREDA Demonstration Programme on Grid Interactive Solar Power Generation .

00% to 14.Financing of Central / Grid Connected Projects by IREDA   Loan amount upto 75% of the total project cost Minimum promoter’s contribution 25% of the total project cost Maximum loan repayment period upto 10 years Interest rate 13.00% based on the risk assessment of the promoters / project Eligibility criteria    Demonstration Programme on Grid Interactive Solar Power Generation .

 Profit making applicants and with no accumulated losses.Eligibility Criteria for IREDA Loan  Public. Demonstration Programme on Grid Interactive Solar Power Generation . Companies.  Individual.  No erosion in paid up equity share capital. Private Ltd. NBFCs and Registered Societies.  State Electricity Boards which are restructured or in the process of restructuring and eligible to borrow loan from REC/PFC). Proprietary and Partnership Firms (with applicable conditions).

Solar Photovoltaic Technology .

00 1.00 0.27 1.00 1. 4.5 16.7 13.8 19.5 16.7 42.00 1.40 0.6 10.cm.8 UNSW FhG-ISE SANYO USSC NREL NREL Stuttgart University Sharp North Carolina University Spectrolab Delaware University Group .Highest Solar Cell Efficiencies (World) Technology Si Single Crystal Si Multi Crystal a-Si Single Junction a-Si Triple Junction CdTe CIGS Si Films DYE Organic GaAs (500 x) GaAs (20 x) Area Sq.00 0.00 4.01 1.20 Efficiency % 24.0 40.7 20.4 6.00 1.3 12.

50 Efficiency % 19.00 100.7 16.00 1.5 6.00 0.cm.0 CEL Group Tata BP IACS IACS IACS NPL IISC Jadavpur University Delhi University IIT.7 5.98 1.03 0.0 8.0 3.0 10.00 0.0 11.00 1. Kanpur . Technology Single Crystal Multi Crystal a-Si Single Junction a-Si Multi Junction a-Si/c-Si (nc-Si) CdTe CIGS Si Films Dye Sensitized Organic Cells Area Sq.Highest Solar Cell Efficiencies (India) Contd.5 13. 64.00 1.0 12..41 0.

National Solar Mission .

    National Solar Mission .Objectives  To deliver at least 80% coverage for all low temperature (<150 deg C) and 60% coverage for medium temperature (150 – 250 deg C) applications of solar energy in urban areas. To pursue rural solar thermal applications under public-private partnerships where feasible.National Solar Mission . To establish commensurate domestic manufacturing capacity to meet the desired level of deployment with necessary technology tie-ups. To establish at least 1000 MW of CSP generation capacity with necessary technology tie ups wherever required. For domestic photovoltaic production from integrated facilities at a level of 1000 MWp/annum. industries and commercial establishments.

The domestic manufacturing capacity for solar cells and modules to be increased from the present level of about 110 MW to more than 5 GW by 2017. • • National Solar Mission .000 tonnes by 2017.Industrial Growth to meet requirement of Solar Mission • Annual production capacity of about 2000 – 3000 tonnes of poly silicon material and down the line silicon ingot and wafer production facilities to be set up by 2012 and upgrade to 30. Achieve cumulative PV module production of 800 MW during the 11th plan and another 2 GW during the 12th plan period.

PV Road Map Efficiency Targets towards 2022 Type of Solar Cell Crystalline silicon solar cell Thin-film silicon solar cell Polycrystalline solar cell GaAs Conc.7%) 5-6%* (10-12%) *Pilot Plant CdTe (10%) CIGS (13%) -(2-5%) Conversion Efficiency Target (%) 2011-12 19 (22) 8 (13.5) 10 (13) 10 (15) 28 (32) (5-10) 2017-18 23 (25) 12-14 (16) 14 (16) 15 (20) 39 (45) 8-10 (15) 2021-22 24 (26) 16 (20) 19 (22) 21 (25) 47 (50) 12-17 (25) . solar cell Dye/organic nano based solar cell Present Status Production (R & D) 13-16% (19.

Cost of Solar PV Technology PV Module price Rs./Wp (low storage. hybrid) 2012 120 160 185 170 2017 60 100 120 110 2022 30 60 80 70 .Effects of R&D ./Wp (No storage) PV System price Rs./Wp (with storage) PV System price Rs./Wp PV System price Rs.

Issues & Challenges for development of Large Scale Solar Power Plants Financier needs technology demonstration viability of the Project Project Developers Needs long term commitment & purchase of power to achieve cost reduction Developer Needs proof of technology expenditure on demo projects How to break this vicious circle? Cost reduction is possible only by mass production of system and large capacity plants Demonstration Projects Initial cost is high Utility Hesitate to go for long term commitment for PPA and awaiting better prices .

e. if possible  Price escalation clause at least equal to inflation rate linked to cost of living  Longer PPA about 25-30 years i. utilities & corporations  Ownership by utilities. . policies including incentive package etc.e.Suggestions to overcome barriers  Developers may be large companies i. life of the system  New technology development  Favourable Govt.

Fixed Orientation silicon – 7.One axis tracking silicon – 9. 7 systems over 10 MW Largest is 20 MW in Germany 15 MW system at Nellis Air Force Base.Technology: Solar Flat Plate PV System Status • • • • • • Fixed or tracking crystalline or multi-crystalline flat plate: fully commercial Thin film flat plate: early commercial Over 250 systems installed worldwide larger than 1 MW.Fixed orientation thin film – 10 acres per MW Lower water usage (washing).2 MW System at Alamosa. Nevada 8. CO Environmental Footprint • Acres/MW . no air emissions • .5 acres per MW .5 acres per MW .

Technology: Solar Flat Plate PV System Contd. Load Matching and Storage • As available • Subject to rapid transients with cloud passage • No storage in currently proposed systems • Future storage to mitigate transients? Potential for Cost Reduction • Increased deployment / manufacturing • Maturity of low cost / medium efficiency thin film • Reduction of tracking costs Suppliers • Large number of domestic and international suppliers ..

decreasing to 4. no air emissions Load Matching and Storage • • • • As available Subject to rapid transients with cloud passage No storage in currently proposed systems Future storage to mitigate transients? Potential for Cost Reduction • • • Costs not sufficiently developed for benchmarking Mass Production Increased cell efficiency (less collector area required) .Technology: Solar Concentrating PV System Status • • Some suppliers offerings can be considered pre-commercial Other supplier offerings are demonstration or conceptual Environmental Footprint • • Currently above 5.5 acres/MW.5 acres/MW with higher efficiency cells Low water requirement (washing).

Will be competitive in future . but reasonable efficiencies must be reached at that low cost .They are low risk  Thin Film PV .Watch out for balance of plant and area-related cost  Concentrating PV .They have moderate opportunity for cost reduction .Status and Viability of various Solar PV Technologies  Crystalline silicon flat plate PV are commercial technologies .High efficiency multi-junction cells will cut costs .Potential for low costs.

Solar Power Projects  Creation of conducive policy atmosphere .t.r.Important Steps in establishing Central Solar Power Projects  Identification of Energy Resource Zones especially w.Long range planning & clear road map for 10-20 years  Establishment of transmission lines .To provide necessary land / forest / local clearance .Lease of land at concessional price -To provide all necessary clearance including establishment of plant & transmission lines .

Sub ordinate debit .  Incentives / Tax Credits and Financing .Important Steps in establishing Central Solar Power Projects Contd.Land clearances . 25-30 years  Favourable local / state policies .Quasi equity / least cost credits . .To enable long term PPAs approx.Upfront tax credits / income tax rebates ..Attractive purchase tariffs for solar power from state agencies etc.Production linked incentive for longer period .

Equipment Manufacturers.Important Steps in establishing Central Solar Power Projects Contd. Financial Institutions / Banks on joint partnership ..Manpower training  Exploration of Hybrid Systems .Based on efficiency / stability / suitability / viability / cost effectiveness  Ensure good operation & maintenance of power plants .Suitable Thermal storage options  Participation of Utilities.  Identification of Technology .

 To create green cess / pool fund to provide incentives to C&P  Explore foreign funds at concessional cost  Innovative financing methods .Important Steps in establishing Central Solar Power Projects Contd. .Longer repayment period .Balloon repayment etc..Equity Participation .

Solar PV Power vs. Diesel Power It is a viable option provided  Availability of low cost funds for Solar PV and long-term repayment Matching of Day time load Availability of maximum depreciation benefit in the first year Consideration of life cycle cost and savings Consideration of environmental benefits Possible to set up Central Solar PV Station in remote locations with reasonable transmission charges and also for self-consumption of power by the same industry      .

Cost Reduction Attempts – Solar PV        Process yield to be increased from 96% to 98% through use of laser cutting and cell testing machines Optimization of lamination cycle for better results EVA formulation being optimized Dispensing with module frames but modifying mounting structures Edge-sealing to decrease the probability of moisture ingress Use of pyramidically enhancement textured front glass for optical Handling of thin and fragile cells improved with minimal breakages .

 For spawning a thriving solar market.4 Wp by 2020.  Cost of Cyrstalline Silicon to reduce from US$ 1.  To improve the module efficiencies between 30% – 50% beyond 2030..  To reduce cost of power generation by optimum system configuration.  To reduce cost of manufacturing of basic raw material.Cost Reduction Attempts – Solar PV Contd. the technology needs to be competitively cheaper.3/Wp to US$ 0. .  Consumption of Poly Silicon to reduce from 5 g/Wp to 2 g/Wp by 2030.

policies / tax incentives / rebates / generation linked incentives SEB – Purchase of Power – Costs Long Term PPA Technology Upgradation Availability of Green Cess / Lower Cost of Funds Transmission issue – for large power plants Feed-in tariff / Net metering for longer period at guaranteed rate Renewable Energy Certificates Need to develop a supply chain that can bring efficiencies to the system. from design to delivery and ultimate service in the field. Focus on market based incentive to force the manufacturers to invest in efficient supply chain.Solar Financing Challenges            Upfront Capital Cost Central Govt. .

rao@ireda. India Email : b.Thank you Indian Renewable Energy Development Agency Limited Core 4 A. Lodhi Road. India Habitat Centre.in Website: www.v.in .ireda. New Delhi 110003.