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PREVIEW
Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
Preface
With its economy growing at a fast clip, the Indian industry is in a time of unprecedented opportunities for growth. Along with this growth comes the need for higher energy consumption, as energy demand / consumption are highly correlated to economic growth. Until recently, Indias energy demand has been met to a large extent by non renewable resources, mainly coal and oil. Recently, natural gas has started playing an important role as well. But with the global concerns over climate change and the depleting nature of fossil fuels, not to mention the geopolitical risks attached with depending on foreign countries for these fuels, have made it imperative for the Indian industry to look at renewable sources of energy. It is well known that India has abundant sunlight that could support a robust solar-based production industry. As a result of the nature of fossil fuels, their costs have been on the increase. With the consequent increase in cost of both grid power and that of diesel used as a fuel for backup power, businesses are looking for alternative and more sustainable sources for power production. Solar photovoltaic (PV) based power production provides a powerful alternative. The Replacing Diesel with Solar Report has been developed for those companies and institutions keen on installing a solar PV based captive power production facility. The focus of the report is to facilitate a much deeper and more comprehensive understanding of the captive solar PV segment, specifically in the context of costs and technology aspects. The report was developed by Energy Alternatives India (EAI), leading business intelligence and market research firm from India focused on the renewable energy and cleantech industries. This report was last updated in the first week of May 2011.
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
Why should I go for solar based captive power? How much solar PV capacity do I need? How much will it cost to install a solar PV captive system? What are the operational and maintenance costs for a solar PV power system for my premises? What are the key things I should look out for before installing a solar PV system? What are the mistakes I should avoid? How much space will I need for the captive PV installation? Should I use solar as a backup power or as a mainstream power source? Will I be able to depend completely on solar energy for my day time operations? If I operate night shifts, will I need a storage system (battery) for my energy needs? Can I sell my excess energy to the grid? What are the components of the solar PV system? What is the lifetime of the system? Am I eligible for availing government incentives? Can I install a hybrid captive system (mix of solar and wind OR solar and diesel)? When should I consider using a generator with my solar PV system?
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
List of Contents
1. Captive Power in India 1.1 Introduction 1.2 Captive Power Plants in India 1.3 Why Solar for Captive Power 1.3.1 The Business case for CPP Using SPV 1.4 Attractive Market Segments 1.4.1 Large Industrial Facilities 1.4.2 Large Commercial Buildings/Facilities 1.4.3 Communication Sectors 1.4.4 Water Pumping 1.4.5 On-shore and Off-shore Oil & Gas 1.4.6 Desalination 1.4.7 Remote Monitoring Stations 1.4.8 Warning Signals 1.4.9 Cathodic Protection 1.4.10 Lighting 1.4.11 Direct-Drive Applications 1.4.12 Refrigeration 1.5 Solar Power Vs Diesel Generator 1.6 Key Bottlenecks 2. Technology Options 2.1 Introduction 2.2 Stand Alone PV systems 2.3 Grid-tied Captive Power Plant 2.3.1 Grid-Interactive Only (No Battery Backup) 2.3.2 Grid-Interactive With Battery Backup 2.4 Hybrid System 2.4.1 Solar Photovoltaic-Diesel Generator Hybrid System 2.4.2 Solar Photovoltaic-Wind Hybrid System 2.5 Technology Option Prevalent In India and Future Trends 3. Setting up Solar CPP in India 3.1 Steps Involved in Setting a Captive PV Power Plant 3.2 Steps Involved in Setting up Hybrid System 3.3 Key Requirements to Set Up a Captive Power Plant 3.3.1 Essential Components 3.3.2 Optional Components 3.3.3 Default Components
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power 3.4 Key Factors to Consider 3.5 Indian Companies and Entities Involved in Setting up of a Captive Power Plant 4. Policies, Regulations & Incentives 4.1 Government Incentives and Policies 4.1.1 Captive SPV and the NSM Guidelines for Off grid and Decentralized Solar Applications o Central Financial Assistance & Eligibility o How to Apply o Application Fee o Commissioning of the Projects o Guidelines in Detail Wind-Solar Hybrid Systems 4.1.2 Electricity Act Provisions for Captive Power Plants in Electricity Act 2003 Provisions for Captive Power Plants in National Electricity Policy Provisions for Captive Power Plants in Electricity Rules 2005 5. Economics of Captive Power Plants 5.1 Introduction Solar PV and Grid Parity Solar PVs Diesel Parity 5.2 Capital Costs and Breakups Cost Break up of A 100 Kw Solar Captive System without Batteries Cost Break up of A 100 Kw Solar Captive System with Batteries 5.3 Results of the Financial Model 5.4 Scenario Analysis Scenario Analysis for Financial Outputs for a Captive Solar PV System 6. Financing of Solar CPPs 6.1 Introduction 6.2 Project Finance 6.3 Asset Finance 6.4 Corporate Finance 6.5 Most Likely Routes for Financing of Solar PV CPP 6.6 Nodal Agencies that Support Renewable Energy Financing in India 6.6.1 IREDA 6.6.2 Power Finance Corporation Ltd 6.7 Financial Institutions that Fund RE Projects in India
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power 7. Next Steps to be taken by a Solar PV Captive Power Developer 7.1 Introduction 7.2 Preparing Prefeasibility and Detailed Project Reports 7.3 Meeting Government Departments 7.3.1 Lists and Contact Details of Government Departments (SNA) in Various States 7.3.2 Central Government Relevant Department Details and Contacts 7.3.3 Other Associations for Solar Energy in India 7.4 List of Integrators of Solar PV Captive Power System 8. Solar PV in India Industry Status and Trends 8.1 Introduction 8.1.1 Introduction to Alternative Energy Sources 8.2 Solar PV Technology 8.2.1 Solar PV Crystalline Solar Cells 8.2.2 Solar PV Thin Film Solar Cells 8.2.3 Solar PV - Concentrating Photovoltaic 8.3 Solar PV Market Status and Trends 8.3.1 Market Share of Thin Film Photovoltaics 8.3.2 Solar Photovoltaic in India A Snapshot 8.4 Solar Energy Potential in India 8.4.1 Regional Potential for Solar Power 8.4.2 Current Solar PV Scenario in India 8.4.3 Future Solar PV Scenario 8.4.4 Solar PV Future Contribution in Indian Electricity Supply 8.5 Status of Solar PV Technology in India 8.5.1Solar Cells and Solar PV Production 8.5.2 Foreign Trade of Solar PV 8.6 Prominent Solar PV Power Projects & Companies in India 8.6.1 Solar PV Power Projects Installed 8.6.2 Proposed Solar PV Projects 8.6.3 Solar PV Projects in India News and Updates 8.7. Key Challenges to Growth of Solar PV in India 8.8 Brief Highlights of Solar CSP and Solar Thermal for Heating and Drying 8.8.1 Solar CSP 8.8.2 Solar Thermal for Heating & Drying Purposes 9. Case Studies of Indian Use of Captive Solar PV 9.1 Captive Solar PV Systems Experience of L&T, Chennai 9.2 Captive Solar PV Systems Experience of SSN College of Engineering, Chennai 9.3 Stand-alone Solar PV Installation in India
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
CHAPTER-1
Key Sections
1.1 Introduction 1.2 Captive Power Plants in India 1.3 Why Solar for Captive Power 1.3.1 The Business case for CPP Using SPV 1.4 Attractive Market Segments 1.4.1 Large Industrial Facilities 1.4.2 Large Commercial Buildings/Facilities 1.4.3 Communication Sectors 1.4.4 Water Pumping 1.4.5 On-shore and Off-shore Oil & Gas 1.4.6 Desalination 1.4.7 Remote Monitoring Stations 1.4.8 Warning Signals 1.4.9 Cathodic Protection 1.4.10 Lighting 1.4.11 Direct-Drive Applications 1.4.12 Refrigeration 1.5 Solar Power Vs Diesel Generator 1.6 Key Bottlenecks
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
Industry Textile Chemical Iron & Steel Light Engineering Cement Others (Balance) Total (Wind Power) Sugar
The wind-based captive power plants are owned by different industries, with the textile industry holding the largest share followed by the chemical, iron and steel, light engineering, and cement industries. Not included in these statistics is the bagasse cogeneration of the sugar industry, which is approximately 1,027 MW.
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
CHAPTER-2
Technology Options
Selecting the best system design for a particular application is more important. Often a combination of techniques can dramatically reduce costs and improve the reliability of a system, or provide the design flexibility to cover a wide range of applications. This chapter explains three different types of solar PV systems. Designing and implementation of each of these categories is different, and would need to be treated accordingly, for effectively bringing the surplus capacity into the companys network.
Key Sections
2.1 Introduction 2.2 Stand Alone PV systems 2.3 Grid-tied Captive Power Plant 2.3.1 Grid-Interactive Only (No Battery Backup) 2.3.2 Grid-Interactive With Battery Backup 2.4 Hybrid System 2.4.1 Solar Photovoltaic-Diesel Generator Hybrid System 2.4.2 Solar Photovoltaic-Wind Hybrid System 2.5 Technology Option Prevalent In India and Future Trends
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
CHAPTER-3
Key Sections
3.1 Steps Involved in Setting a Captive PV Power Plant 3.2 Steps Involved in Setting up Hybrid System 3.3 Key Requirements to Set Up a Captive Power Plant 3.3.1 Essential Components 3.3.2 Optional Components 3.3.3 Default Components 3.4 Key Factors to Consider 3.5 Indian Companies and Entities Involved in Setting up of a Captive Power Plant
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
PV Module sizing Array sizing is determined by taking into account the daily energy requirement (in Kilowatt hours) and average daily peak sunshine hours in the design month. No part of a PV array can be shaded. The shading of small portions of a PV module may greatly reduce output from the entire array. PV modules connected in series must carry the same current. If some of the PV cells are shaded, they cannot produce current and will become reverse biased. This means the shaded cells will dissipate power as heat, and over a period of time failure will occur. However, since it is impossible to prevent occasional shading, the use of bypass diodes around series - connected modules is recommended. Before proceeding to the next step, a simple test is recommended, after array sizing, to see if the application might be a candidate for a hybrid system.
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
CHAPTER-4
Key Sections
4.1 Government Incentives and Policies 4.1.1 Captive SPV and the NSM Guidelines for Off grid and Decentralized Solar Applications o Central Financial Assistance & Eligibility o How to Apply o Application Fee o Commissioning of the Projects o Guidelines in Detail Wind-Solar Hybrid Systems 4.1.2 Electricity Act Provisions for Captive Power Plants in Electricity Act 2003 Provisions for Captive Power Plants in National Electricity Policy Provisions for Captive Power Plants in Electricity Rules 2005
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
b) The remaining cost of the system and all other expenditure related to packing & forwarding, transportation, installation and commissioning of the system will be a part of the system and will be met by the beneficiary of the system. c) In case of installation of systems to be done through SNAs, an administrative charge @ 2% of CFA will be provided to SNAs at the time of final release.
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
CHAPTER-5
Key Sections
5.1 Introduction Solar PV and Grid Parity Solar PVs Diesel Parity 5.2 Capital Costs and Breakups Cost Break up of a 100 kW Solar Captive System without Batteries Cost Break up of a 100 kW Solar Captive System with Batteries 5.3 Results of the Financial Model 5.4 Scenario Analysis Scenario Analysis for Financial Outputs for a Captive Solar PV System
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
Appliances
Cost range
As can be seen from the above table, the capex of a 100 kW system without batteries (i.e. a grid tie system) will be 1.35 crores 1.8 crores Cost break up of a 100 kW solar captive system with batteries
Appliances Cost range
As can be seen from the above table, the capex of a 100 kW system with batteries (i.e. a standalone system) will be 2 crores 3 crores. Note: The cost range is given here because different manufacturers price their products differently.
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
CHAPTER-6
Key Sections
6.1 Introduction 6.2 Project Finance 6.3 Asset Finance 6.4 Corporate Finance 6.5 Most Likely Routes for Financing of Solar PV CPP 6.6 Nodal Agencies that Support Renewable Energy Financing in India 6.6.1 IREDA 6.6.2 Power Finance Corporation Ltd 6.7 Financial Institutions that Fund RE Projects in India
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
The table above provides the highlights of renewable energy financing in India. A similar pattern is expected for solar PV captive financing as well. General eligibility criteria for renewable energy loans: Who Can Apply? Public, Private Ltd companies, NBFCs and registered Societies Individuals, Proprietary and Partnership firms (with applicable conditions) State Electricity Boards which are restructured or in the process of restructuring and eligible to borrow loan from Power Finance Corporation (PFC) or Rural Electrification Corporation (REC) Eligibility Profit making companies with no accumulated losses. Debt Equity Ratio not more than 3:1 (typically 5:1 in case of NBFCs) No default to any government agency (IREDA/PFC/REC) and other FIs / Banks No erosion of paid-up capital. Typically, applicants who are loss making/ not meeting the criteria relating to accumulated losses/ debt equity ratio shall be eligible for financing if Bank Guarantee / FDR is provided as security for the entire loan.
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
CHAPTER-7
Key Sections
7.1 Introduction 7.2 Preparing Prefeasibility and Detailed Project Reports 7.3 Meeting Government Departments 7.3.1 Lists and Contact Details of Government Departments (SNA) in Various States 7.3.2 Central Government Relevant Department Details and Contacts 7.3.3 Other Associations for Solar Energy in India 7.4 List of Integrators of Solar PV Captive Power System
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
CHAPTER-8
Key Sections
8.1 Introduction 8.1.1 Introduction to Alternative Energy Sources 8.2 Solar PV Technology 8.2.1 Solar PV Crystalline Solar Cells 8.2.2 Solar PV Thin Film Solar Cells 8.2.3 Solar PV - Concentrating Photovoltaic 8.3 Solar PV Market Status and Trends 8.3.1 Market Share of Thin Film Photovoltaics 8.3.2 Solar Photovoltaic in India A Snapshot 8.4 Solar Energy Potential in India 8.4.1 Regional Potential for Solar Power 8.4.2 Current Solar PV Scenario in India 8.4.3 Future Solar PV Scenario 8.4.4 Solar PV Future Contribution in Indian Electricity Supply 8.5 Status of Solar PV Technology in India 8.5.1Solar Cells and Solar PV Production 8.5.2 Foreign Trade of Solar PV 8.6 Prominent Solar PV Power Projects & Companies in India 8.6.1 Solar PV Power Projects Installed 8.6.2 Proposed Solar PV Projects 8.6.3 Solar PV Projects in India News and Updates 8.7. Key Challenges to Growth of Solar PV in India 8.8 Brief Highlights of Solar CSP and Solar Thermal for Heating and Drying 8.8.1 Solar CSP 8.8.2 Solar Thermal for Heating & Drying Purposes
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
India lies in a sunny tropical belt (High insolation) Total theoretical potential annually over 5000 trillion kWh Exploited potential (production/installed capacity) is very little; total installed capacity (grid and off grid) is approximately only 110 MW, and of that only about 17.82 MW (as of Dec 2010) is grid-connected (as of Jan 2011) For solar CSP and PV together, National Solar Mission attempts to reach an installed capacity of By 2013: 1-2 GW By 2017: 4-10 GW By 2020: 20 GW Moreover, large areas of the Thar Desert has been set aside for solar power projects, sufficient to generate 700 to 2100 GW National Solar Mission and other Generation Based Incentives (GBI) are available through Ministry of New and Renewable Energy
Future expected production/installed capacity Specific government incentives Amount of investments happening in this now, expected in future
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
CHAPTER-9
Key Sections
9.1 Captive Solar PV Systems Experience of L&T, Chennai 9.2 Captive Solar PV Systems Experience of SSN College of Engineering, Chennai 9.3 Stand-alone Solar PV Installation in India
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
Name of Customer
Location
Project capacity
Impact The 100 kW Peak Solar Array provides power to satisfy the energy requirements of the building and the housing facilities of the government offices. The solar power generation system used on the ONGC wellhead offshore platforms powers telemetry, gas detection, lighting and navigational aid systems. BIPV installation in India, SIMS successfully satisfies most of the institutes power requirements internally Solar Power Generated is utilized to power audio visual equiment which are used in interactive teaching in these schools
100 kWp
Mumbai High Field Samudra Institute of Maritime Studies, Mumbai. 100 rural schools in all provinces of Sri Lanka
90kWp
BIPV Systems
3.85 kWp
NA
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
List of Tables
Chapter 1 1. All India Captive Power Plants of Industry (1 MW and above) 2. Wind Power Plant Installed Capacity and Generation at Captive Power Facilities 3. Renewable Energy Installed Capacity and Generation by Industry Industry-wise Installed Capacity of Captive Power Plants (1 Mw & Above) in MW Chapter 3 1. Comparison of PWM and MPPT charge controllers 2. Types of Batteries 3. Trackers and Sensors 4. Inverters Chapter 4 1. Central Financial Assistance & Eligibility 2. Envisaged Deployment across the Application Segments 3. Other Off-grid Small Solar Thermal Systems 4. Wind-Solar Hybrid Systems Chapter 5 1. Cost break up of a 100 kW solar captive system without batteries 2. Cost break up of a 100 kW solar captive system with batteries 3. Government subsidies 4. Costs and Financing Pattern 5. Performance of Solar PV System -6. Results of the Financial Model
7. Summary of Returns from Cost Savings
8. Equity IRR, Project IRR, Equity Payback Period, Project Payback Period, for Different Capex and Diesel Price Escalations Chapter 6 1. Project Debt Financing for Renewable Energy Highlights 2. Financial Institutions that Fund RE Projects in India Chapter 7 1. List and Contact Details of State Nodal Agencies (SNA) in Various States
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power 2. Central Government Relevant Department Details and Contacts 3. Other Associations for Solar Energy in India Chapter 8 1. Solar Photovoltaic in India A Snapshot 2. The top 5 districts with the best solar irradiation in Gujarat 3. The top 5 districts with the best solar irradiation in Rajasthan 4. The top 5 districts with the best solar irradiation in Madhya Pradesh 5. Renewable Energy Installed Capacity in India 6. India: Projected Installed Capacity (GW) 7. India: Projected Installed Capacity (GW) 8. National Solar Mission Targets 9. India: Projection of Solar Electricity Generation Capacity under the Energy Revolution Scenario 10. India: Projection of Solar Electricity Generation Capacity under the Reference Scenario 11. Trends in Production of Solar PV Cells and Modules (MWp) in India 12. Application of Solar PV Cells (MW) in India Sectorwise 13. Foreign Trade of Solar PV 14. Imports of Solar PV Cells 15. Exports of Solar PV Cells 16. Grid-tied Solar PV Power Projects Commissioned 17. 5 MW Solar PV Power Projects Approved by the Central Government under Phase I of NSM Scheme 18. Rooftop and Small Solar Power Plant Projects Registered for Generation Based Incentives under Phase I of NSM Scheme 19. Solar PV Power Projects Coming up in Gujarat 20. Developers Selected for Establishing Solar Power Projects by Rajasthan Government 21. Solar PV Project at Kolar 22. Highlights of Solar CSP Chapter 9 1. List of SPV captive Power Installations in India
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
List of Figures
Chapter 2 Direct-coupled System PV System with a Battery Bank Grid-interactive PV System without Battery Backup Grid-Interactive with Battery Backup A Schematic of a Stand- alone Hybrid System Solar Photovoltaic-Wind Hybrid System Chapter 3 PV-hybrid System Block Diagram PV-Generator Mix Plot for Omaha Relationship between the Current and the Voltage during the 3 Phases of the Charge Cycle Chapter 7 Next Steps to be taken by a Solar PV Captive Power Developer Chapter 8 Classification of Energy Sources Solar Energy Technology Historical Evolution of Technology Market Share and Future Trends % 2010 and 2011 Regional PV Market size Forecasts Thin-Film Vs. Crystalline Solar Panel Production Annual mean daily global solar radiation in India Solar irradiation data for Patan Solar irradiation data for Jaisalmer Solar irradiation data for Neemuch Trends in Production of Solar PV Cells and Modules (MWp) in India
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
Talk to Us Now
Sumukhi Sreevatsan Mobile: +91-99621-40666 (India) Email: Sumukhi@clixoo.com
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Replacing Diesel with Solar A Complete Guide to Installing Solar PV for Backup Power
EAI is part of Clixoo Solutions Pvt. Ltd (www.clixoo.com), a leader in providing sustainability solutions. Our various divisions have been critical catalysts for specific domains within cleantech for instance, our EAI division is considered the thought leader for the Indian renewable energy sector, and our Oilgae division is considered to be the global leader for algae fuels business intelligence.
EAI
EAI is the foremost research and consulting company for the Indian renewable energy industry. We have a dedicated focus on the Indian renewable energy sector We are unique in our focus on market and strategy research for renewable energy Our team has assisted businesses large and small on a variety of renewable energy projects. Our expertise has been sought by Fortune 100 companies Our team comprises professionals from premier institutes such as the IITs and IIMs The cumulative wisdom of our team, derived from extensive research and hands-on consulting, has provided us with deep insights about the industry which few, if any, have. To know more, visit - http://www.eai.in/
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