1 / 27

The Jawaharlal Nehru National Solar Mission Implementation Issues on Bundling Scheme

The Jawaharlal Nehru National Solar Mission Implementation Issues on Bundling Scheme. Towards a solar future…. What is the Solar Mission?. How is it being implemented?. Key issues. From 6 MW of solar power in Oct 2009 ….

adelio
Télécharger la présentation

The Jawaharlal Nehru National Solar Mission Implementation Issues on Bundling Scheme

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Jawaharlal Nehru National Solar Mission Implementation Issues on Bundling Scheme

  2. Towards a solar future… What is the Solar Mission? How is it being implemented? Key issues

  3. From 6 MW of solar power in Oct 2009 … • Solar power accounts for less than 0.1% of grid interactive renewable power • But solar power has been deployed for off-grid electrification Source : MNRE

  4. …to 20,000 MW of solar power by 2022 3 key focus areas • Land based utility scale solar power projects thru a bundling scheme • Grid connected Roof top PV systems thru Generation Based Incentives (GBI) • 20 million solar lighting systems and other off-grid systems to cover about 10,000 villages through capital subsidies … and Grid Parity by 2022 & Coal Parity by 2030

  5. To make targets a reality, the Mission aims to provide an enabling environment for developers & manufacturers Regulation HRD Fiscal incentives 20000 MW Demo Projects R&D Indigenous manufacturing … & envisages gradual deployment to attain critical mass till costs come down & rapid scale up thereafter

  6. Salient features of the Mission…(1/2) Renewable Purchase Obligations of utilities to be split into solar and non-solar RPO may start with 0.25% in Phase I and increase to 3% by 2022 RPO to be fixed after modification of the National Tariff Policy 2006 RE Certificates to meet RPO NVVN appointed as Nodal Agency for purchase & sale of grid connected solar power at 33 kV & above under Phase –I For each MW of solar power, MOP to allocate equivalent MW capacity from unallocated quota of NTPC stations NVVN to bundle solar & thermal power & sell it at regulated tariff plus facilitation charges Bundling scheme Solar RPO Generation Based Incentive Demonstration Projects Provision of GBI to100 MW capacity solar projects connected to LT/11 KV grid • Eligibility: own consumption as well as power fed into the grid • GBI rate: tariff fixed by CERC minus notional tariff of Rs. 5.5 per unit, with 3% annual escalation Technology configurations not covered under 1,000 MW capacity • Projects to be set up following competitive bidding to enable price discovery • Maximize indigenous content • Technology transfer

  7. Salient features of the Mission…(2/2) Improve efficiency of existing/new materials & applications & develop cost effective storage technologies Development of National Centre of Excellence & Centres of Excellence to undertake & fund R&D High level Research Council to guide overall strategy Support Incubation & Innovation through a Venture Fund Promote solar home lights & other power applications to cover 10,000 MW villages & hamlets Re-finance facility/Soft loans up to 5% annual interest rate by IREDA 30% subsidy for select applications 90% subsidy for niche applications to special category areas Off - grid opportunity Fiscal/Financial incentives Increase competitiveness of solar projects & provide enabling environment for solar manufacturers • Recommendation to MoF for custom and excise duty concessions/exemptions on specific capital equipment, critical materials, components & project imports • SEZ like incentives to manufacturing parks HRD R&D Build technically qualified manpower of international standard • Develop specialized courses at engineering colleges • Ministry of Labour to introduce training modules/ course materials for technicians • 100 fellowships a year to support students/ groups • National Centre for PV Research & Education at IIT, Mumbai

  8. Towards a solar future… What is the Solar Mission? How is it being implemented? Key issues

  9. Bundling scheme proposes to make solar power cheaper by bundling it with coal based power Solar Power Developer NTPC Unallocated Power PV: Rs. 17.91/unit CSP: Rs. 15.31/unit Rs. 2.5/unit X kwh 4X kWh NVVN Price of bundled power or weighted price PV: (17.91X + 10X)/5X = Rs. 5.58/unit CSP: (15.315X + 10X)/5X = Rs. 5.06/unit Sale price of power given ratio of PV to CSP is 50:50 = Rs. 5.32/unit Utility Figure for illustrative purposes only … to approx. Rs. 5.50/unit & make it more attractive than power purchased in the market Also addresses concern of payment security for SPDs

  10. There are separate schemes for projects under development & new projects Migration Scheme New Projects Scheme • SPDs who have signed a PPA with a discom on or before November 19, 2009 but project CoD not achieved • SPDs who have filed a Petition and PPA for determination of tariff with the concerned SERC but project CoD not achieved • Only about 25-30 MW expected (SPDs under earlier GBI scheme) • SPDs approaching with new proposals • Confirmation for plant CoD to be on or before March 31, 2013 Two pronged approach here: state provides land, water, sanctions & grid connectivity and GoI takes care of PPAs and sale of power

  11. Migration Scheme

  12. Criteria for participation as per guidelines issued • Concurrence of discom/State Government for migration to JNNSM • Confirmation from Discom for power purchase from plant through NVVN • Possession of 100% of land (defined at 2 hectares/MW) • Approval from STU for evacuating power to the grid at 33 kV & above • Necessary water linkage (for CSP plants) • Letters of comfort for funding the project • BG @ Rs. 50 Lac per MW to NVVN, half on signing of MoU & half on signing of PPA • BG valid for 15 months for PV & 31 months for thermal projects • No change in equity holding from signing of MOU till PPA execution; but listed companies exempt • After PPA, controlling shareholding in SPD to be maintained for 3 years after commencement of power supply • Financial closure within 3 months of signing PPA; no extension allowed • Project to be removed from list of projects eligible for migration & BG will be forfeited • CoD for PV within 12 months of PPA & of Solar Thermal within 28 months of PPA PPAs to be the same as that signed with discoms & power to be sold to the same discoms

  13. Time frame for implementation Signing of PPA Signing of MoU SPD to give details to NVVN Announcement of list of eligible projects Mar 18, 2010 Apr 17, 2010 July 17, 2010 Feb 26, 2010

  14. New Projects Scheme

  15. Salient features Technology portfolio • Ratio of PV and thermal at 50: 50 • Technology agnostic within PV & thermal • Encourage deployment of latest technologies through projects wherein SPDs could tie up with proven technology providers/module manufacturers offering better efficiency/technology (with successful operation for at least 2 years) than what is available & being deployed in India, after an evaluation of the proposed technology • Review status after one year to make any modifications Min & Max capacity of projects • PV: min of 5 MW & max of 25 MW • Thermal: min of MW & max of 100 MW Domestic content • PV: projects to use indigenous modules; proposal to mandate use of indigenous cells • Thermal: 30% of total project cost to be utilized for domestic equipment

  16. Salient features Qualification criteria • Net worth of Rs 2 Crore/MW • Technical Criteria • SPD to propose deployment of commercially established technology - at least 1 project operational of the proposed technology for last 2 years anywhere in the world • Detailed technical parameters specified • Land arrangement • Land requirement specified at 2 Hectares/MW • SPD to have at least 50% of land when submitting EoI & entire land before signing PPA • Allotment letter of state in case of government land, ‘Agreement for Sale of land’ with land owner in case of Private Land, long term lease arrangement (for at least 30 years) in case of land being taken on lease • Grid connectivity • At 33kv/132kv or higher voltage levels with grid sub-station & not distribution sub-station • SPD to give letter from STU confirming technical feasibility of connectivity • SPD responsible for transmission arrangement from plant to sub-station • Water arrangement • SPD to submit documentary approval from state/local authority for quantity of water required for thermal plants

  17. Salient features Short-listing of projects • All projects meeting qualification criteria irrespective of share of technologies Selection of projects • For PV projects, phased selection by allocating overall capacities over FY 2010-11 & FY 2011-12 • If total aggregate capacity short listed under any technology is higher than the capacity to be selected • Option 1 : Reverse bidding where SPDs indicate percentage of tariff to be shared with NVVN for administrative costs & risk sharing. SPD offering max share to be selected first & so on • Option 2: All projects up to a capacity of 5 MW for PV & 20 MW for thermal selected. Remaining projects to be allotted remaining capacity equally • To buffer for implementation failures, total capacity can be 105% of capacity to be selected for that technology • Provision to be used only if last project selected is proposed for a capacity, which requires total capacity for the technology to be increased beyond what was originally decided

  18. Salient features Others • BG @ Rs. 50 Lac per MW to NVVN, half on signing of MoU & half on signing of PPA • BG valid for 15 months for PV & 31 months for thermal projects • No change in equity holding from signing of MOU till PPA execution; but listed companies exempt • After PPA, controlling shareholding in SPD to be maintained for 3 years after commencement of power supply • Financial closure within 3 months of signing PPA; no extension allowed • CoD for PV within 12 months of PPA & of Solar Thermal within 28 months of PPA

  19. Time frame for implementation Selection of projects by Central Empowered Committee Signing of PPAs & PSAs Invitation of EOI Jun 30, 2010 Sep 30, 2010 Mar 31, 2010 Sep 15, 2010 Oct 31, 2010 Last date for applications Signing of MoUs with SPDs • Company to provide Board Resolution on intention to develop project

  20. Some features of PPAs • PPAs and PSA are co-terminus agreements & are back-to-back • NVVN to assign payment of LD on SPD if CUF of the plant is found to be below CERC specified CUF • By 5% at any point in the term, or • By 3% for consecutively or non-consecutively for 3 months in a year • Right to contracted capacity: • SPD to sell exclusively to NVVN the entire Contracted Capacity subject to maximum of energy generation • NVVN not obligated to purchase power generated beyond the contracted number of units. SPD free to sell such power to third party • SPD free to sell power generated before Scheduled COD to third party • Limitation of Payment Liability • NVVN’s payment liability limited to payments realized from Discom after exhausting all payment security measures

  21. Some features of PSAs • Payment Security Mechanism • Discom to open LC within 1 month of Scheduled COD to be made operative prior to Due Date of first Monthly Bill • LC to be revoked if Discom fails to pay a Monthly Bill or Supplementary Bill or part thereof within 30 days from the Due Date • Renewable purchase obligation of Discom shall be considered to be met only if there is no payment default towards NVVN • Third Party Sale by NVVN • In case NVVN is not able to realize the due payments beyond 30 days after the Due Date, NVVN shall have the right to divert the Bundled Power or part thereof and sell it to any third party

  22. Towards a solar future… What is the Solar Mission? How is it being implemented? Key issues

  23. General concerns • Lack of long term strategy • How will 4000 MW be scaled to 10,000 MW at the end of 12th plan? • Is technology the Achilles Heel? • No solar supply chain in India • Land acquisition issues will affect solar plants • No time frame defined for finalization of R&D strategy

  24. Concerns on bundling scheme Overall issues • Cheap coal based power has been made more expensive • GoI was contemplating using unallocated power to incentivize open access in states. What happens to that? • Bankability of agreements given that SPDs will not sign PPAs directly with offtaker • Adequacy of time frame for commissioning of solar thermal projects • Financial criteria not at par with established practices in coal sector Specific issues on New Projects Scheme • No justification for restriction of plant size • Current capacity does not promote economies of scale • Transmission arrangements • Will cost justify small sized projects? • Transmission line to be compatible with high voltage levels; capacity of line may remain unutilized • Adequacy of time frame for financial closure • Land acquisition for entire proposed capacity but eventual capacity allocation may be less

  25. Main concerns on proposed PPAs/PSAs • LD on SPD if CUF is below CERC specified level • CERC CUF already on higher side & does not reflect locational differences • NVVN will not offtake power beyond specified maximum generation • Where does SPD go to sell such high cost power? • NVVN does not bear payment risks • How will SPDs get paid if discom defaults more than once?

  26. Regulatory, Credit & Technology risk hindering robust financing possibilities • Regulatory • Lack of visibility on approved capex beyond FY 2012 & 2013 • NVVN does not bear payment risks • PPA & PSA co-terminus • Inability of GoI to force states to adopt JNNSM • SEB • Poor health of most of SEBs • Willingness of SEBs to be bound by JNNSM • Technology & Developer • Existing technology unproven in Indian context • No clear technology leader • Lack of credible developers

  27. Thank You

More Related