Open Access Financial Calculation for Solar in Maharashtra
 

Open Access Financial Calculation for Solar in Maharashtra

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Analysis of IRR's that can be achieved under various scenarios for commercial & industrial consumers in Maharashtra.

Analysis of IRR's that can be achieved under various scenarios for commercial & industrial consumers in Maharashtra.

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Open Access Financial Calculation for Solar in Maharashtra Open Access Financial Calculation for Solar in Maharashtra Document Transcript

  •       Open Access Financial Calculations for Solar Projects in Maharashtra After a long wait & continuous effort by solar power developers, finally we have open access for solar projects allowed in Maharashtra. To go through the Maharashtra Electricity Regulatory Commission's order (click text in blue) Although there are many conditions like uni-sourcing (consumers can only take open access from one source i.e. wind or solar) & probably 15 min time slot matching, it still opens up doors for setting up many projects in the power guzzler & power starved state of Maharashtra. In an effort to ascertain the tariff at which it would be a win-win situation for both consumers & developers, we have done a calculation considering the following: a) Only Group Captive structure is considered as high cross subsidy in Maharashtra makes third party sales prohibitive. b) Injection voltage is considered as 33 KV and drawl voltage is considered as 11 KV c) Only areas under ambit of MSEDCL are considered. d) Assumptions for solar plants are : i. PLF of 18.75% with a deration of 0.5% ii. Debt - Equity ratio of 70:30 with an interest rate of 13.5% and repayment period of 7 years iii. Capex of Rs. 6.5 Cr per MW and Accelerated Depreciation considered iv. Annual Tariff Escalation of 3% and REC benefit considered at Rs. 1/- per KWH v. O&M expense at Rs. 8 Lacs per MW with a 5% annual increase vi. A discount of Rs. 0.5 has been provided to the consumer to make solar attractive
  •   Based on the above the following cases arise: Commercial Express Feeder Customers - a) Current Tariff - Rs. 10.45/- per KWH (Solar Supply Tariff - Rs. 9.95/- per KWH) b) Rate available to solar developer at bus bar (after considering all losses & charges) - Rs. 6.75/- per KWH c) Equity IRR for solar developer at Rs. 6.75/- per KWH - 22.80% Commercial Non Express Feeder Customers - a) Current Tariff - Rs. 9.83/- per KWH (Solar Supply Tariff - Rs. 9.33/- per KWH) b) Rate available to solar developer at bus bar (after considering all losses & charges) - Rs. 6.27/- per KWH c) Equity IRR for solar developer at Rs. 6.27/- per KWH - 20.43% Industrial Express Feeder Customers - a) Current Tariff - Rs.7.01/- per KWH (Solar Supply Tariff - Rs. 6.51/- per KWH) b) Rate available to solar developer at bus bar (after considering all losses & charges) - Rs. 4.09/- per KWH c) Equity IRR for solar developer at Rs. 4.09/- per KWH - 10.09% Industrial Non Express Feeder Customers - a) Current Tariff - Rs. 6.33/- per KWH (Solar Supply Tariff - Rs. 5.83/- per KWH) b) Rate available to solar developer at bus bar (after considering all losses & charges) - Rs. 3.56/- per KWH c) Equity IRR for solar developer at Rs. 3.56/- per KWH - 7.61% From above it can be clearly inferred that only commercial consumers shall be feasible for open access for solar project developers. However in case of commercial non-express feeders (where power cuts are dominant) the 15 min time slot matching may be difficult to achieve.