SOLAR ROOFTOP PROGRAMME IN WEST BENGAL

Photo Credits: GIZ / ComSolar

Workshop on expediting solar power project development in West
Bengal, Eastern Region and North Eastern Region

Kolkata, October 25, 2016

Page 1
About GIZ

GIZ is a limited liability company, owned by

the Federal German government

GIZ is an implementing agency for International

Cooperation and Technical Assistance

Working on a public-benefit basis GIZ provides viable

solutions for sustainable development worldwide

GIZ works on behalf of

 the German government (BMZ, BMWi, AA, BMU etc.) as main client
 international organisations (e.g. EU, UN), private clients & governments
10/25/2016 Page 2
Commercialisation of solar energy in urban and
industrial areas (www.ComSolar.in)
Project Duration 2009 – 2016

Federal Ministry for the Environment, Nature Conservation,

Commissioning
Building and Nuclear Safety (BMUB) - International Climate
Ministry
Initiative
Ministry of New and Renewable Energy (MNRE), Government of
Partner Ministry
India
Focus sectors Rooftop PV & solar thermal in industrial process heat
• Demonstration lighthouse projects
Approach • Supporting regulative/policy framework
• Capacity & awareness building
Project team Seven National & International experts

Page 3
 Our focus areas

TRAINING AND CAPACITY BUILDING

› Installers / Design Engineers
› State Nodal Agencies / Bankers
›
Multi-Pronged

Distribution Licensees
Approach

PILOT PROJECTS / DEMAND AGGREGATION

› Piloting new Technologies
› Solarise India
› Promotion of rooftops at large scale

POLICY AND ADVISORY RECOMMENDATIONS

› Stakeholder consultations / Workshops
› Support to SERCS
› Support to MNRE / States

Page 4
 Opportunity across the world and in India

• Rooftop solar power market 25% of investments in PV<1 MW

offers an opportunity of more
than $30 Billion in 5 years in
India alone (Target 40 GW by
2022)
• In 2015, out of the $266 billion
investment in new RE plants,
25% investments went in to
small distributed solar PV plants
(<1 MW)
• India alone attracted $10 billion
investments in the renewable
sector
• By end of 2015, the cumulative
installed capacity of solar PV Source: Frankfurt School – UNEP Collaborating Centre for
Climate & Sustainable Energy Finance
was 227.1 GW globally

25-10-2016 Page 5
Development across the world

25/10/2016 Page 6
 Opportunity in the Indian rooftop solar power
market 45000
National targets (MW)
40000 MW
Particular Target Exhausted 40000
Size of the market (MW) 40,000 350
35000 9000
Size of the market (INR Cr) 2,40,000* 2,100
Available market (INR Cr) 2,37,900
30000
*@Rs 6Cr/MW
8000
Market Size 25000
Market Components Share
(Rs. Cr)
Module 47% 1,12,800
20000 7000
Mounting Structure 13% 31,200
Civil Works 10% 24,000
15000
Inverters 19% 45,600 6000
Electricals 3% 7,200
4% 10000
Consulting/PMC 9,600
Others 4% 9,600 5000
Total 100% 2,40,000 5000
O&M 1% 2,400 4800
0 200
40 GW is offering a total market of 33 billion euro 15-16 16-17 17-18 18-19 19-20 20-21 21-22
Page 7
 Opportunity in the rooftop solar power market in
West Bengal 2500 Rooftop PV targets as envisaged by
MNRE for West Bengal
Particular Target 2100 MW
Size of the market (MW) 2,100* 2000
Available market (INR Cr) 12,600
*Targets envisaged by Government of India for West Bengal
**@Rs 6Cr/MW
1500
Market Size
Market Components Share
(Rs. Cr)
Module 47% 5,922
Mounting Structure 13% 1,638 1000
Civil Works 10% 1,260
Inverters 19% 2,394
Electricals 3% 378
Consulting/PMC 4% 504 500
Others 4% 504
Total 100% 12,600
O&M 1% 126
0
15-16 16-17 17-18 18-19 19-20 20-21 21-22

Page 8
Distribution losses converted into green electricity
Description Parameter
Energy Requirement in West Bengal (MU) 473591
D-Losses (%) 17.5%
D-Losses (MU) 8288
5% of D-Losses converted to Green Electricity (MU) 414
5% of D-Losses converted to Green Electricity (MW) 296
1 Actual electricity requirement in 2015-16 as per Load Generation Balance Report 2016 – 17
2 Approved Distribution Losses by WBERC for WBSEDCL
3 CUF of solar power plant assumed as 16%

• Distributed generation plants offers saving in the distribution losses – not technical losses
inherent in the equipment but due to less electricity flow in the wires/equipment

• Aim to convert mere 5% of the current level of distribution losses every year may translate
to almost 300 MW each year  saving of electricity worth Rs 80 Cr per annum (computed
at 2 Rs/kWh)

• The electricity generation from 2100 MW (~ 2940MU) is merely 5-6% of the total electricity
requirement at State level

Page 9
Solar Potential in West Bengal

Potential in West Bengal – 6.26 GW

Assumptions

• 3% of waste land for Ground Mounted Solar

plants

25/10/2016 Page 10
 Smart City in West Bengal
• Newtown Kolkata mooted as the smart city of West Bengal
• As per Smart City Mission Guidelines, at least 10% of the proposed
Smart City’s energy requirement should come from solar
New Town Kolkata – Smart City
Particulars 2012-13
Sales to LV, MV and HT consumers (MU) 163*
10% of requirement to come from solar (MU) 16.3
Solar Capacity to meet the requirement (MW) 12
*Annual report of New Town Electric Supply Company Limited

Kolkata Mega City

Particulars 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Electricity Energy Requirement* 19,008 20,006 21,005 22,059 23,171 24,346 25,588
10% of energy requirement to come
1,901 2,001 2,101 2,206 2,317 2,435 2,559
from solar (MU)
Solar Capacity to meet the
1,358 1,429 1,500 1,576 1,655 1,739 1,828
requirement (MW)
*18th Electric Power Survey (EPS) of India (Volume-II) – draft report of EPS of Mega Cities
25/10/2016 Page 11
 Potential Estimation (Estimation based on Census)
450
% of Capacity on
Type of house houses each house 400 393 390 Factory/Worksh
considered (kWp) op/ Workshed
Residence 5% 1 etc.
350
Other non-
Residence cum-other
5% 1 160 residential
use 300
Shop/Office 15% 1 Residence
School/ College etc. 10% 10 250 275
Hotel/Lodge/Guest
15% 10 200 Shop/Office
house etc.
96
Hospital/ Dispensary
2% 50 150
etc.
School/ College
Factory/Workshop/ etc.
20% 50 100 30
Workshed etc. 83
Place of worship 2% 10 47 Place of worship
50 23
Other non-residential 5% 10 11 23
3
0
25/10/2016 Asansol Kolkata Page 12
 Impact on Consumer tariff
Particulars 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Electricity Requirement (2015-16)
MU 47,359 52,095 57,304 63,035 69,338 76,272 83,899
assumed from LGBR)
Growth Rate Assumed % 10%
Assumed Power Purchase Cost
Rs/kWh 5.00 5.03 5.05 5.08 5.10 5.13 5.15
(Expensive plants)

Growth Rate assumed % - 0.5%

Feed-in-tariff announced by Commission
Rs/kWh 8.22 7.81 7.42 7.05 6.70 6.36 6.04
(assumed)
Decreasing rate of Feed-in-tariff
% 5%
assumed

Y-o-Y RTPV Target MW 10 252 263 315 370 420 470

CUF % 16%
Y-o-Y RTPV Generation (MU) MU 14 353 369 442 519 589 659

Cumulative additional cost of power

Rs Crore 4.5 102.8 190.1 277.2 359.9 432.6 491.2
purchase
Impact Paise/kWh 0.1 2.0 3.3 4.4 5.2 5.7 5.9

25/10/2016 Page 13
Drivers for promotion of rooftop solar power plants
in West Bengal
• Anticipated shortfall in supply (CEA)
• Deficit in Electricity (in MU) – 13.7% shortfall
• Deficit in Power (in MW) – 3.6% shortfall

• High and inclining average cost of supply to consumers

• more than 7.39 Rs/kWh (WBSEDCL MYT 14-15 to 16-17)

• Decreased cost of generation from solar power

• Rs. 7-8/kWh (levelised for 25 years, without subsidy)

• Solar purchase obligation within the state

• 8% electricity of total consumption of energy, excluding Hydro Power, by March 2022

• Other benefits - Optimal use of roof, cooling of the roof, reduction in energy lost in wires etc

25-10-2016 Page 14
 Consumer tariff vs cost of generation from rooftop solar
power plant
Cost of generation of solar Cost of generation of solar
power (with ROE) power (without ROE)
10
9
8
7
Rs/kWh

6
5
4
3
2
1
0

Source: WBSEDCL Tariff Order for 2015-16

25/10/2016 Page 15
Issues and their remedies
• Simplified, unified, online processes

• Grid Connection

• Subsidy Management

• Other approvals

• Training and Capacity Building at all levels

• Active participation by the Nodal Agencies / State Governments in promotion of rooftop solar
plants

• Awareness creation

• Rate contracts / tenders

• Potential assessment

• Realisation of benefits by the Distribution licensees

• Innovative financing / risk mitigation approaches

• Quality management / Strict adherence to standards

25/10/2016 Page 16
 Consumer’s perspective

Interest to implement project

Attractive and assured incentive
Easy access to

Access to finance (Debt) – not necessarily low

Information

cost
Assurance of Quality
Hassle free project development
Awareness & trust building

Stakeholders

State Distribution Technology

MNRE SERC Banks
Government licensees providers

25/10/2016 Page 17
Promotion of rooftop PV – Responsibilities & Requirements
State Electricity
Regulatory Distribution Licensee State Nodal Agency Consumer
Commission
• Net Metering / Feed- • Protocol or • Application template • Insurance agreement
in-tariff Regulations procedure for for availing subsidy and list of insurance
or Order connectivity with the • Capacity building of companies
• Net metering / Feed- grid stakeholders • Easy to understand
in-tariff agreement • Safety procedure • Dispute resolution flowchart or
• Schematic of • Feeder/distribution schematic
• Potential and site
metering protocol & transformer loading assessment • EPC and O&M
metering location report agreement
• List of empanelled
• Model Connectivity • Details of metering venders of • Tool to compute
procedure/protocol companies equipment implementable size
• Technical • Net / Gross of solar plant on roof
• Announcement of
specifications, class metering bill scheme • Tool for computation
and accuracy of template of pay-back period
meters • Booklet for dos and
• Website for billing don’ts

Page 18
Summary

• West Bengal has a big, untapped potential for promotion of rooftop solar
power plants
• Generating electricity directly at the load centres saves energy - a no brainer
• With increasing cost of supply to the consumers and decreasing cost on
generation from the solar power plant, the wave of self generation and
consumption is inevitable
• The impact of promotion of solar power plants on consumers is miniscule
• All stakeholders have to create a conducive environment to enable consumers
implement rooftop projects – its in the interest of nation’s pride
• Promotion of PV is beneficial to all – employment generation, attracting
investment and business opportunities, hedging of future price rise, mitigating
climate change disaster

25/10/2016 Page 19
Thank you!

Sandeep Goel
Technical Expert
Indo-German Energy Programme
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
E: [email protected]
I: www.giz.de, www.comsolar.in

25/10/2016 Page 20