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SOLAR ENERGY IN RAJASTHAN

Presentation by Mr. D.C. Samant, Chairman Rajasthan Electricity Regulatory Commission November 5, 2009 Washington D.C.

POTENTIAL & STATE INITIATIVES

Rajasthan is the largest state of India (342,000 sq. Kms.)


Population around 60 million (1/5th of U.S. Population) 2/3rd of the state is desert and semi-desert with scanty rainfall and plenty of sunshine

Is deficient in conventional power resources such as coal, hydro, etc.


State has immense solar potential, the best in India and amongst the best in the world

ENERGY SCENARIO IN INDIA


Rapidly growing demand due to
high GDP growth access to power for all by 2012

Energy consumption grew by around 10% per annum in past 6 years (ending FY 2008)
Corresponding growth being around 12% in Rajasthan Overall energy shortage is around 10% (capacity shortage 13.8%)

Growth in demand has exceeded capacity addition


Widening of gap between demand and supply Power cuts in some cities of India

HARNESSING OF RENEWABLE ENERGY (RE)

Acceleration in exploitation of RE sources imperative or rather urgent due to


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Demand supply scenario


Depleting fossil resources and their rising costs Emerging serious threat of global warming.

National action plan on climate change formulated by GOI which lays high emphasis on growth of RE
Solar mission is on the anvil India aims to become a global leader in the use of solar energy

SOLAR MISSION

(some key features)

20,000 MW Solar capacity (as per final draft)


- Utility grid power -12,000 mw

- Rooftop PV -- Others (incl. Rural installation)

3,000 mw 5,000 mw

Renewable purchase obligations Grid parity by 2020 Solar Mission is expected to be announced soon.
Final position with regards to policies, incentives and road-map of solar development would come out at that time. Government of Rajasthans policy will factor in the final solar mission objectives and policies.
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SOLAR POTENTIAL IN RAJASTHAN


Best solar radiation in India
- Amongst the best in the world - Similar to California and Nevada in USA

Solar radiation being 6-7 kWh/sq. meter More than 325 sunny days in a year (amongst the best in India) Land in abundance and is available at much lower price than other areas States desert has the area of 175,000 sq. kms.
- Land required to generate 10,000 MW is less than 400 sq. kms.

WHY RAJASTHAN?

Rajasthan is poised to become a solar power hub in India in years to come due to
Huge solar potential Land availability in abundance Galloping power demand Pro-active policies of the state government Commitment to facilitate investments in this sector Emerging opportunities on launching of the Indian solar mission Renewable purchase obligation order of Regulatory Commission along with feed-in tariffs.

INITIATIVES IN THE STATE OF RAJASTHAN


Policy to support development of non-conventional energy sources issued by state government, which, inter-alia, stipulates
Preferential tariffs for sale of solar power Open access Third party sale/captive use Evacuation of power by State Transmission Utility Land at concessional rate.

Facilitation and single window clearance by Rajasthan Renewable Energy Corporation (RREC) - RREC is designated as Nodal Agency for renewable energy

RENEWABLE POWER PURCHASE OBLIGATIONS


Following is the minimum % of RE mandated under Electricity Act
YEAR 09-10 10-11 11-12 SOLAR Min. Energy Wind 6% 6.75% 7.5% Min. Energy Bio-mass 1.45% 1.75% 2.0 %

50 MW of power to be purchased by distribution licensee at rates to be announced by the commission. Additional 10MW capacity under Generation Based Incentive scheme of Govt. Of India has been approved Total mandated capacity - 60MW. Power Purchase agreement for 25 years and Tariff for 20-25 years.
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RPO AND WIND GENERATION


Renewable Purchase Obligation (RPO) specified by regulatory commission has given tremendous boost to wind energy generation, as shown below: Year 07-08 08-09 09-10 (likely) wind generating capacity added in the year 70.5 MW 199 MW 300 MW

- Total capacity to exceed 1,000 MW by this year as against about 7,000 MW of conventional power.

Feed-in-tariff under RPO stipulates attractive returns for investors (16% ROE, pre-tax)

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Future Plans Solar Energy

66 MW capacity allocated to about 11 developers by the state government.


Land allocated to most of the developers.

Petitions for tariff determination filed by 11 developers


7 for PV solar plants of 5 MW each 3 for Solar Thermal plants of 10 MW eac 1 for Concentrated Solar PV plant of 1 MW.

Capacity to be scaled up once solar mission is launched Levelised tariff for 20-25 years to be announced shortly as feed-in-tariff by the Rajasthan State Regulatory Commission - Rajasthan would be the first state to do so. Land bank is being created
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CAVEAT
Success of solar mission and scaling up of solar generation to the extent required to mitigate the adverse impact of carbon emission hinges critically on drastic reductions in energy costs.
All possible efforts need to be made to achieve this lest it is too late. Every stake holder has to realize this and contribute in ensuring success of the solar mission. It may also require sacrifices speculation or short term gains may jeopardize the long term interest of such a critical initiative.

Solar energy would become far more important if generation could also meet peak demand load requirements. - Storage or any other solution need to be pursued vigorously.

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THANK YOU

FOR YOUR PATIENT HEARING AND KIND ATTENTION

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