Clean Energy at #CK2017 | Shankar Halder, SIDBI

1. SIDBIs Initiatives on
Clean Energy Adoption
6th April 2017
Shankar Haldar, Lead Technical Expert
SIDBI – Energy Efficiency Centre

2.  Objective – to promote sustainable development
in MSMEs leading to their enhanced profitability
& competiveness
 Created a dedicated team of experts housed at
“Energy Efficiency Centre” for focused approach
 Setting up technical arm “Indian SME Technology
Services Ltd. (ISTSL)”
 Entered into strategic partnership with BEE, World
Bank, DFID, JICA, KfW, GiZ, TIFAC, AFD, and many
others
SIDBI’s Initiatives

3.  Constitution
 Set up in 1990 – SIDBI Act
 Authorised share capital – Rs. 1000 crore
 Paid-up share capital -- Rs. 450 crore
 Shares held by Govt. of India & 33 GoI
owned/controlled Banks, Insurance Companies and FIs
 National Presence
 15 Regional Offices
 More than 85 Branches across all the states
 Mandate
 Promotion, financing and development of MSMEs and
to co-ordinate the functions of institutions serving the
MSME sector.
About SIDBI

4. Incorporated in November 2005 as a Joint Initiative of five banks
(SIDBI, IB, OBC, IOB and SBI).
Supporting in fields of technology upgradation and sustainable
development in MSMEs.
Empanelled with MNRE (under Govt./ PSU Category) for Grid
Connected Solar PV
Providing PMC Services for implementing
Implementing SIDBI’s End-to-End Energy Efficiency (4E) scheme
under which technical support is provided to MSMEs for adopting
energy efficiency practices.
Empanelled 65 Technical firms for energy efficiency and solar.
Grade 2 ESCO empanelled with BEE
About ISTSL

5. Two-Pronged Approach by SIDBI
Financial Assistance through Focused Line of Credit
 Concessional Finance for Sustainable Development Projects
in MSMEs
Developmental Support to MSMEs
 Setting up Exclusive in-house Energy Efficiency Cell (EEC) to
Cater to Internal & External Clients
 Cluster Focused Awareness & Capacity Building
Programmes for MSMEs, Industry Associations, Banks and
Other Stakeholders.
 Awareness Workshops in 100 + Industrial Clusters.
 Technical Support for Energy Audits, Implementation, etc.
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6. Innovative Financing Schemes
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 JICA (90 bn JPY through 3 Phases) - Japan
 AFD (EUR 50 mn) - France
 KfW (EUR 50 mn) – Germany
 KfW (aggregating EUR 53.74 mn) to promote
investment in Cleaner Production projects.
 Suitable TAs from these agencies for
 Capacity building,
 Awareness building, and
 Funding demonstration projects
Focus on concessional LoCs from
various multilateral agencies

7. SIDBI’s Clean Energy Adoption
End-to-End Energy Efficiency (4E) Programme
Partial Risk Sharing Facility (PRSF) Programme
Rooftop Solar PV Initiative in Faridabad Cluster

8. 4E Programe
To help MSMEs adopt Energy Efficient practices,
SIDBI has a model for extending end to end support
Technical Support Financial Support
Detailed Energy Audit
DPR Preparation
Implementation
Support
Post Implementation
(M&V)
Loans Rs. 10 to Rs. 150
Lakh
Loan upto 90% of total
project cost
Interest rebate
Project Coverage - EE Retrofit Projects - RE
Projects - Cleaner Production Projects

9. Partial Risk Sharing Facility for Energy Efficiency
(PRSF) Project
1. Empower and promote ESCO-implemented energy
efficiency projects
2. Encourage banks / FIs to finance ESCO projects through
credit enhancement
3. Energy Savings Performance Contracting (ESPC)
Objectives
1. Large industries (excluding thermal power plants)
2. MSMEs
3. Municipalities (including street lighting)
4. Buildings
Sectors
Covered
1. Extent of guarantee - 75% of the loan amount
2. Minimum loan amount INR 10 Lakh and maximum loan
amount of INR 15 Crore per project
3. Max INR 45 / 40 crores exposure limit
Risk
Coverage

10. Rooftop Solar PV Initiative in Faridabad Cluster
 Project Size: 20 kW to 200 kW
 Eligibility: MSME units having satisfactory track record of net profits
 Promoter Contribution
 15% (Project Cost up to INR 1 Crore)
 20% (Others)
 Repayment period
 Up to 7 years including moratorium of 6 months
 Collateral is not required
 Technical support through ISTSL
 Feasibility Assessment
 EPC Vendor Selection (demand aggregation & tendering)
 Quality Inspection

11. PMC Services
Activities for National Small Industries Corporation (NSIC)
 Based on open bidding process, Span Pumps Pvt. Ltd., Pune has been
identified as L1 bidder for implementing 513.8 kWp in 3 sites located in
Delhi, Hyderabad and Chennai under CAPEX Model
 Unit Rates:
 Delhi – INR 56,340/ kWp
 Hyderabad – INR 55,860/ kWp
 Chennai – INR 56,790/ kWp
 Power generation commenced by 15th March 2017

12. PMC Services
Activities in Ministry of Earth Sciences (MoES)
 Feasibility Assessment in 5 Institutions of MoES in Delhi, Noida, Pune,
Hyderabad and Chennai
 Selected Clean Max Enviro Energy Pvt. Ltd., Mumbai through bidding
for implementing 1266.5 kWp under RESCO Model
 Unit Rates (fixed for 25 years) range (INR 4.6 to 5.3)
 Delhi – INR 4.90/ kWh
 Noida – INR 5.20/ kWh
 Pune – INR 4.60/ kWh
 Hyderabad – INR 4.85/ kWh
 Chennai – INR 5.30/ kWh
 PPA has been signed with MoES (Delhi), NCMRWF (Noida) and INCOIS
(Hyderabad)
 Implementation of projects is expected by June 2017

13. Modes of Implementing Rooftop Solar Project
CAPEX (Self owned)
 Rooftop Owner invests in the Rooftop Solar PV System
 Engineering, Procurement and Construction (EPC) Agreement is
signed with Vendors and Payment is made by Rooftop Owner to
Vendors on kWp basis as per agreed payment schedule
 Vendors design, supply, install, test, commission the system and
provide operation & maintenance services for 5 years
RESCO (Third party owned)
 Selected Vendor invests in the Rooftop Solar PV System
 Power Purchase Agreement (PPA) is signed with Vendors and
Payment is made by Rooftop Owner to Vendors on the basis of
actual energy (kWh) supply
 Vendors design, supply, install, test, commission the system and
provide operation & maintenance services for 25 years

14. Business Models
 Self Consumption
 Invest in the System (CAPEX) and reduce the energy bills through self
consumption
 There is no limit on the size of the system
 Power could be stored in batteries (however, cost will increase)
 Sale of Electricity to DISCOM (Gross Metering)
 Invest in the System (CAPEX/ RESCO) and sell the total generated
electricity to DISCOM at tariff determined by SERC
 System capacity is limited by transformer capacity
 No banking facility
 Self Consumption and Sale of Electricity to DISCOM (Net
Metering)
 Invest in the System (CAPEX/ RESCO). Consume the power (whenever
there is demand) and export the power to grid (in case there is no
demand)
 System capacity is limited by contract demand/ sanctioned load
 Banking facility available within a financial year

15. Challenges in Rooftop Solar PV Sector
 Incentives/ Subsidy/ Availability of Finance
 Subsidy/ Incentive is available only for Residential, Institutional and
Government Customers and not for Commercial and Industrial
Customers.
 Non-availability of soft loans
 Net-Metering
 Though Net-Metering Scheme is envisaged as a game changer,
DISCOMs are still concerned about loss of revenue and high-paying
customers.
 Getting grid connection is a time-consuming process. DISCOMs are
not fully equipped for inspection and certification of rooftop
systems.

16. Thank You
Energy Efficiency Centre
Videocon Tower
Ground Floor, E-1, Rani Jhansi Road
Jhandewalan Extension
New Delhi - 110055
Tel: 011 - 23682473-77
Email id: shankarh@sidbi.in

17. Back up Slides

18. Govt of India’s Renewable Energy Targets
175 GW by 2022
• Solar – 100 GW (Large Scale – 60 GW, Rooftop – 40 GW)
• Wind / Bio-power / Small Hydro – 75 GW

19. Present Scenario
 30% Subsidy in the project cost for Residential/ Institutional/ Social
Sectors
 Up to 25% Incentive in the project cost for Govt. Buildings
 Technical Specifications/ Standards for the System
 Model Tender Documents (CAPEX & RESCO), EPC Agreement, PPA
 Benchmarking: Cost of the System
 Capacity from 1 kW - 10 kW: INR 70/ Watt
 Capacity from 10 kW - 100 kW: INR 65/ Watt
 Capacity from 100 kW - 500 kW: INR 60/ Watt
 Financial Support to DISCOMs for up-gradation, awareness
campaigns, training etc.
 State-level solar policies and gross/ net metering regulations in most
of the States/ UTs
 Online Portal (“SPIN”) for rooftop programmes, geo-tagging of
projects
 Empanelment of Channel Partners & New Entrepreneurs (~1,000 nos.)
and Expert PSUs (18 nos.)
 Customs/ Excise Duty Exemption for inverters etc.

20. Rooftop Solar PV System
Basic Parameters
 Area required: 10 sq. m of unshaded area/ kW.
 Orientation of Solar PV modules: South facing (inclination equal to latitude of the
location).
 Electricity generated: 1,300 units/ year/ kWp (considering 15% capacity
utilization factor).
 Type of Roof required: RCC/ Tin/ GI Sheet (generally, asbestos roof is not
recommended).
 Slope of the roof: Flat roofs are best suited. If the roof has slope, slope has to be
in North-South Direction for the systems to be installed.
 Shadow causing objects: Water tanks & pavement leading to steps within the
building and trees & other tall buildings in the surroundings.
 Nature of Surroundings: Surroundings have to be clean and non-polluting. Dust
reduces the efficiency of modules significantly.
 Lifetime: Solar modules have a life of 25 years. Inverters, cables have 7-10 years
warranty.
 Cost of the System: INR 70/ Wp (< 10 kWp), INR 65/ Wp (10 – 100 kWp), INR 60/
Wp (100 – 500 kWp). This is the maximum benchmark cost of MNRE.

21. Ministries Allotted to ISTSL

22. PMC Services
Collation of List of Sites from various Offices/
Institutions/ Departments of Ministry
Site Visit, Solar Potential Assessment, Technical
Evaluation and Finalization of Feasibility Report
Collation of State-wise Projects and
Finalization of Bidding Documents (CAPEX/
RESCO)
Submission of Project Proposals in MNRE’s
SPIN Portal and getting sanction

23. PMC Services
Undertaking Bidding Process and
Selection of Vendors
Monitoring Implementation and
ensuring Net-Metering as per the
State/ UT policies
Quality Control and Supervision
during O&M Period
Dispute Resolution and Contract
Management

24. Modules
• Warranty Certificate for
Material (3-10 years) and
performance (25 years)
• I-V curve
• Test Reports (for e.g. flash
test, immersion test etc.)
• Compliance to set of IEC/ IS
standards/ codes

25. Inverter
• Warranty Certificate
• Test Reports
• Compliance to IEC/ IS
standards/ codes

26. Civil Foundation and Mounting Structure
• STAAD report
• Galvanization/ Anodization
Report along with
Guarantee for Mounting
Structure
• Compliance of structure
material/ fasteners to IEC/ IS
standards/ codes

27. Others
• Cables
• Copper (Armoured) multi core cables for AC
• Copper Single core cables for DC
• Covered with cable trays
• Earthing
• DC Earthing
• AC Earthing
• Lightning Arrester
• Remote Monitoring System (for viewing power generation
details online) and Weather Monitoring System
• Enclosures (ACDB, DCDB, Energy Meter) should be IP65 standard

28. Summary of Net-metering Policies
S. No. State Maximum Capacity of the Project
Cost/ kWh provided by
DISCOMs for net-exported units
1 Andhra Pradesh Related to Contract Demand -
2 Assam 40% of Contract Demand APPC
3 Bihar 100% of Sanctioned Load APPC
4 Chhattisgarh Related to Contract Demand APPC
5 Delhi 100% of Sanctioned Load APPC
6 Goa 100% of Contract Demand -
7 Gujarat 50% of Contract Demand APPC
8 Haryana 100% of Connected Load APPC
9 Jharkhand 100% of Contract Demand -
10 Karnataka 150% of the Sanctioned Load 5.63
11 Kerala 100% of Contract Demand APPC
12 Madhya Pradesh 100% of Contract Demand -
13 Maharashtra 100% of Contract Demand APPC
14 Manipur 80% of Total Consumption APPC
15 Odisha Related to Distribution Transformer 0.00
16 Puducherry Related to Contract Demand -
17 Punjab 80% of Sanctioned Load -
18 Rajasthan 80% of Contract Demand -
19 Tamil Nadu 100% of Sanctioned Load APPC
20 Telangana Related to Contract Demand -
21 Tripura 100% of Contract Demand APPC
22 Uttar Pradesh 100% of Sanctioned Load 0.50
23 Uttarakhand Related to Contract Demand -
24 West Bengal Related to Contract Demand -