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Thursday, 26 June 2014

Typical Components of a Lobel Grid Interactive- Solar PV System

  • Solar Lobel PV modules
  • Lobel Power Conditioning Unit or Inverters
  • Module Mounting Structures
  • Step Up Transformer
  • DC & AC Power Cables
  • Lightning Protection
  • Earthing System
  • Combiner/Junction box
  • Communication Interface
  • The grid connection interface
  • Solar Comparison With Other Sources

    • Thermal :
      • International prices of coal are going up and it’s a non renewable polluting resource
    • Hydro electric :
      • Hydroelectric power projects in India's mountainous north and northeast regions have been slowed down by ecological, environmental and rehabilitation issues, coupled with public interest litigations
    • Nuclear :
      • Polluting Source of Power Generation. Problem of disposal of toxic by product. Globally activists are opposing it due to recent Fukushima disaster in Japan
    • Gas :
      • There is shortage of gas supply. Also gas pricing issues are there.
    • Wind Energy :
      • Benefit of Accelerated Depreciation has been withdrawn by the government
    • Thus, Solar Energy generation emerges as a clear winner
      • Since it is clean non polluting and abundant supply.
      • With rationalization in prices and increased yield and government incentives like REC etc., this is the best time to invest in Solar Energy Generation.

    Solar Energy Proposition in India

    Solar Energy Proposition in India

    • India is blessed with Solar energy
    • Most parts of the country receive very good solar irradiation-especially in states such as Rajasthan, Gujarat, Madhya Pradesh, Uttar Pradesh, Punjab, Harayana, Tamil Nadu etc
    • There after Gujarat is the only State with highest irradiation and available potential
    • According to the national action plan on climate change,” if India were to convert 1% of the 5,000 trillion kilowatt-hour of solar energy that it receives in a year into energy, the country would have enough to meet its energy needs, which are now a growing concern”
    • Economic Value :
      • Mitigates peak energy costs, the energy bills are reduced drastically
      • Obviates the need to build as much additional generation and transmission capacity
    • Geographical Location :
      • India receives adequate Solar radiation for 300 days , amounting to 3000 hours of sunshine
      • Almost all of the regions receive 4-7 KWh of solar radiation per sq meters

    Irradiation figures around Ujjain(Near our site)

    *measured in kwh/m2/day onto a horizontal surface,  data were obtained from the NASA Langley Research Center Atmospheric Science Data Center; New et al. 2002

    Government Solar PV Policies

    Government Policies - What’s happening?

    • Many experts believe solar energy would meet about 15% of global energy requirements by 2050
    • Indian National Solar Mission- to set up 20GW by 2022
    • State governments plans over 5GW
      • MP solar energy generation is likely to reach up to 650 MW by the end of 2013
    • Many Grid opportunities Like solar park developments
    • Solar cities & park will be established all around India
    • State controlled NTPC to add 315 MW solar energy capacity
    • Currently India has slightly above 12 megawatts of grid-connected solar generation capacity developed since 2009
    • As part of the National Solar Mission, government is eying to boost the annual solar power generation to at least 1,000 megawatts by the year 2013

    India National Solar Mission Roadmap

    S. No.Application SegmentTarget for Phase 1 (10-13)Target for Phase 2 (13-17)Target for Phase 3 (17-22)
    1.Grid Solar Collectors7 Million Sq Mts15 Million Sq Mts20 Million Sq Mts
    2.Off grid Solar Applications200 MW1000 MW2000 MW
    3.Utility grid power, including roof top1000 – 2000 MW4000 – 10000 MW20000 MW

    National Tariff Policy, 2006 would be modified to mandate that the State electricity regulators fix a percentage for purchase of solar power. The solar power purchase obligation for States may start with 0.25% in the phase I and to go up to 3% by 2022. This could be complemented with a solar specific Renewable Energy Certificate (REC) mechanism to allow utilities and solar power generation companies to buy and sell certificates to meet their solar power purchase obligations

    Why Madhya Pradesh?

    • Madhya Pradesh is one of the largest power consuming States in India with a peak demand of nearly 8 GW and a peak deficit of close to 10 per cent.
    • The State’s RPO demand for solar power is expected to rise to 400 MW by 2016
    • Is a neighbor to both Rajasthan and Gujarat — States with the highest solar irradiation and the largest areas of arid lands
    • Offers good sites having potential of more than 5.5 to 5.8kWh/sq m for installation of solar based power projects.
    • As per MPERC regulations 2008, RPO has been specified as 2% for cogeneration and other sources for FY-2010 -11 and 2011 -12.
    • Purchase of electricity from solar projects to form part of 2% subject to any amendments/ regulations of MPERC
    • 10-year exemption in electricity fee and cess, four per cent subsidy by the state government in the wheeling charges, banking of generated power and exemption as per rules in VAT and entry tax, among others

    REC - Renewable Energy Certificate

    REC & How it works?

    • Renewable Energy Certificate (REC) mechanism is a market based instrument to promote renewable energy and facilitate compliance of Renewable purchase obligations (RPO)
    • Places an obligation on electricity supply companies to produce/consume a specified fraction of their electricity consumption from renewable energy sources
    • REC mechanism is aimed at addressing the mismatch between availability of RE resources in state and the requirement of the obligated entities to meet the renewable purchase obligation (RPO)
    • Solar RECs are issued to eligible entities for generation of electricity based on solar as renewable energy source.
    • REC would be exchanged only in the CERC approved power exchanges IEX and PXIL
    • Floor Price varies between Rs 9.30 to Rs. 13.40 per unit

    Scope of REC & RPOs

    RPO Status: - FY 2007 - 08
    StateRPO TargetRPO Met
    Tamil Nadu10%11%
    Madhya Pradesh10%0.07%
    There is a Huge scope for REC trading in coming years

    REC Price on IEX Power Exchange

    Additional benefits for Investors

    Why go for Solar generation?

    • It is a very low maintenance system , compared to other power generation technologies
    • Does not need much active manpower for operation
    • No dependency on any fuel, except sunlight which in abundant in India for most times of the year
    • Green in nature – does not pollute the environment by emitting any harmful gases , so can be commissioned close to human dwelling
    • Break Even Point(BEP) of the project is within 3 to 4 years and project life is approx. 25 years
    • This leads to income for a long time, once initial cost is recovered
    • Gestation period is less compared to other renewable technologies – plant can be commissioned in 3-6 months time with expertise of Lobel Solar power System
    • Government is giving lots of incentives and subsidies on grid connected solar projects

    Additional benefits for Investors

    • Concessional duties & tax breaks :
      • Govt. of India announced concessional custom duty on imports , with exemption on excise duty for some project components. With all these, overall project cost is set to come down
    • Meeting the renewable energy obligation set to increase :
      • At present, proportion of renewable energy to be purchased by utilities & conventional producers as mandated by SERC through RPOs varies from 3% to 5% of total generation. This is likely to go up to 15% by 2020.
      • So, RPO & REC mechanism set to get strengthened infuture.
    • As per the August 23, 2011 ruling of CERC, Current REC mechanism valid till 2017 which is set to extend.
    • Making a significant contribution to Earth & our environment by opting for clean & green power generation method

    Benefits of Investing in Lobel Solar Plant

      Benefits for the Investors
    • Section 32 of IT act provides Accelerated Depreciation of 80 % of the invested capital to professionals companies with tax liability
      • Investors can set off their tax liability on the taxable income to the tune of 80% in the 1st year, and subsequently 20% in the 2nd year
    • Section 80-IA (sub section 4)of income tax Act, 1961 allows 100% tax waiver on the income generated for any single 10 year period during first 15 years of operational life of a power generation project.
      • This is valid for projects commissioned till 31st March 2014
    • Generation based incentives given by the government - Renewable Energy Certificates (REC) allows investors to gain a yield in the form of incentive currently being traded at average price of Rs 12 per unit of electricity generated by the solar power plant
    • Third Party PPAs with reputed business houses and large industrial groups ( which will be organized by Lobel Solar Power System) allows per unit electricity to be sold at approximately Rs 5 per unit
    • REC + PPAs results in per unit electricity selling rate of approximately Rs 17 per unit
    • With an average generation of 16,00,000 units in 1 year, revenue generation in 1 year will be around Rs 272 Lacs
    • So, Break Even Point (BEP) is around 3-4 years, after which a long & stable income stream is established as solar power plants are deemed FIT & operational for a period of 25 years
    • Solar plants can be commissioned by us in our Solar park within a time frame of 3-6 months
    • Registration with the Ministry of Environment & Forests allows participation in “Certified Emission Reduction” (CER) Credits in the international market

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