Class Presentation- Group 6

RE Integration (Roof top Solar) : Contribution to

DISCOM Revival.

Kumar Ravi (20PGDM00B010)

Shuvendu Shekhar Mahapatra (20PGDM00B020)
 Agenda

RE Scenario – Odisha

Why RE – Roof top Solar
Regulatory Scenario- Odisha
Opportunity Scan
Impact Analysis
Challenges
Way Forward
 RE Scenario - Odisha
Power Capacity Allocation

Chart Title

State Hydro
OPGC(unit1 & 2) RE Contribution: 12.65%
24% 27% OPGC Expansion (Unit 3
&4)
IPP Roof top Solar Contribution:
3% New & Renewable sources a. 1.94% of RE capacity
5%
13%
Central (Hydro) b. 0.25% of Total capacity
Central (Thermal)
13%
15%
 RE Scenario - Odisha
Power Procurement during FY19-20 & FY20-21

2.33% of total electricity.

1.93% of total electricity- up to Jan 21.

(State Thermal and non solar
contribution increased.
 RE Scenario - Odisha
Where Odisha stands in RPO
complaint?

52.90% of short fall

52.42% of short fall
(Up to Jan 21)
 Why RE – Roof Top Solar
 Savings in transmission and distribution loss for power not fed into the grid.
 No requirement of additional land for setting up the solar system.
 Self-consumption may result in reduction of system congestion.
 Local employment generation.

Source: Source: Open Source

 Regulatory Scenario
 Cumulative solar energy capacity at distribution transformer level from the earlier 30% of
transformer capacity to 75% of transformer capacity.
 There is no cap on the capacity of solar installation at a particular consumer level as long as it is
within the limit of the connected load / 75% of transformer capacity. The earlier restriction of 1 MW
solar capacity at a single location is removed.
 Allows OPEX as well as CAPEX.
 Non obligated entity consuming roof top solar under net-metering / bi-directional metering
arrangement shall qualify as deemed Renewable Purchase Obligation (RPO) for DISCOM.
 Bi-directional meter to be of MRI or AMI complaint.
 Electricity generated from a Solar PV project shall be capped cumulatively at 90% of the electricity
consumption.
 Opportunity Scan

Rural and Urban consumption spiked y-o-y and set to increase further.
Urban: CAGR of 4.85%
Rural: CAGR of 4.04%
 Opportunity Scan

Urban Concentration is
High

Tops the list in ACS-ARR Gap & T&D

 Impact Assessment
2020-21
CC Number of Consumers Energy Sales (MU)
Domestic 2554707 92.17% 3081.9 42% We have considered C&I segment for roof
Commercial 161867 5.84% 848.19 12% top impact study.
Industrial 10876 0.39% 1635.15 22%
Agricultural 22644 0.82% 77.66 1%
Weighted ABR : 7.07283
Public services, Others 21645 0.78% 1648.99 23%

2019-20
DISCOM Sells Billing ABR % of Total Sells
CESU has the highest sales and category
CESU 6658.17 3593.51 5.40 0.33
average ABR.
NESCO 4927.48 2513.30 5.10 0.24

WESCO 5960.00 2999.84 5.03 0.29

For further analysis under C&I segment, we
have considered ABR of 7.07/kWh
SOUTHCO 2775.16 1368.30 4.93 0.14
 Impact Assessment
CESU-Roof top allocation MW 300.00
Annual Roof top Generation MU 420.00
LCOE-Solar RT Rs./kWh 4.00  Total Solar roof top potential : 1000MW
     
ACS Rs./kWh 4.64  We have assumed that CESU will have approx.
ABR Rs./kWh 7.07 300MW of solar roof top allocation : % avg. of area
Initial Margin of DISCOM   2.43
coverage & Consumption percentage.
     
Saving to Consumer-RT Rs./kWh 3.07
DISCOM margin if purchase from RT Rs./kWh 3.07
 ACS- ARR Gap : INR 623.33 Cr.
Savings from diff. margin INR Cr 26.88
 This saving could reduce revenue gap up to 15%.
       Saving will also include:
T&D loss could have avoided MU 147.49 a. Surcharge in Fuel cost.
Avoid cost of T&D unit loss = Possible saving b. Promote green initiative.
INR Cr 68.44
through RT c. Community entrepreneurship would rise.
      d. Saving from avoidance of peak power purchase.
Total Saving/Year INR Cr 95.32 e. Could meet RPO: 10 to 15%.
 Challenges
 Major reasons are ill-designed institutional and governance structures, distorted market
mechanisms, and technical challenges.
 Policy-level inconsistencies as a primary cause of the slowdown. Poor and piecemeal
implementation of net metering policies.
 Top down approach: Negative sentiment.
 Consumer awareness and acceptance is low.
 Technical issues: Local voltage issues, reverse flows, lack of project performance visibility.
 Forecasting is a major challenge in DG.
 Banking hurdles.
 Financial viability of DISCOMS
 Way Forward
 Utilize RT solar as solution of RPO obligation.
 Gross metering – Still long way to go for acceptance. So, need of win win situation.
 Can solve curtailment issues.
 Consumer tariff reduction.
 Roof top systems needs to be monitored and managed.
 Promote TOD use: Combined with DG system.
 Awareness programs/campaigns.
 Digitalization and hand hold DG owners in forecasting and scheduling.
 Promote storage (% basis): Peak time consumption management.
 Need to realize change in DISCOM role in ecosystem.
Thank You