Manish green infra ltd at the solar technology and project development

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Manish green infra ltd at the solar technology and project development

  1. 1. 10 MW SOLAR PROJECT IN GUJARAT - KEY CHALLANGES BY: MANISH NARULA ; GM – SOLAR BUSINESS GREEN INFRA LTD (IDFC PE FUND II & III) MAY 13, 2011
  2. 2. About Green Infra Key Challenges in Solar Project Development What is needed for Growth of Solar Power
  3. 5. Green Infra Verticals
  4. 6. <ul><li>AUTHENTIC SOLAR RADIATION DATA </li></ul><ul><li>LAND ACQUISITION AT APPROPRIATE LOCATIONS </li></ul><ul><li>POWER EVACUATION INFRASTRUCTURE </li></ul><ul><li>FINANCIAL CLOSURE </li></ul><ul><li>STATUTORY APPROVALS </li></ul><ul><ul><li>Key Challenges in Solar Project Execution </li></ul></ul>
  5. 7. <ul><li>AUTHENTIC SOLAR RADIATION DATA </li></ul><ul><ul><li>Limited availability of on-ground weather data across India. </li></ul></ul><ul><ul><li>Most common softwares NASA, Meteonorm, 3-Tier have huge data variation for same locations. </li></ul></ul><ul><ul><li>Actual site data varies between 10-20 % on Monthly Basis. </li></ul></ul><ul><ul><li>Key Challenges in Solar Project Execution </li></ul></ul>
  6. 8. <ul><ul><li>Key Challenges in Solar Project Execution </li></ul></ul>
  7. 9. <ul><li>LAND ACQUISITION AT APPROPRIATE LOCATIONS </li></ul><ul><ul><li>Limited land bank with Government. Have to resort to private land </li></ul></ul><ul><ul><li>Getting land close to highways, Sub-stations, water source is very difficult. </li></ul></ul><ul><ul><li>Most appropriate locations with high solar radiation are very costly </li></ul></ul><ul><ul><li>Getting proper land title clearance is a major challenge. </li></ul></ul><ul><ul><li>Change of Land use from Agriculture to Non-Agriculture is another challenge. </li></ul></ul><ul><ul><li>Old and new tenure (jantri) land have different policy for conversion </li></ul></ul><ul><ul><li>Key Challenges in Solar Project Execution </li></ul></ul>
  8. 10. <ul><ul><li>Key Challenges in Solar Project Execution </li></ul></ul><ul><ul><li>Project Location - Distt Rajkot, Gujarat </li></ul></ul><ul><ul><li>Distance from NH8B – 7 kms, Distance From Port – 60 kms </li></ul></ul>
  9. 11. <ul><li> POWER EVACUATION INFRASTRUCTURE </li></ul><ul><ul><li>Government has to provide Power Evacuation Line up to Plant sub-station. </li></ul></ul><ul><ul><li>Getting approval is very time consuming process. </li></ul></ul><ul><ul><li>Timely laying transmission line up to plant is not assured. All delays are to developer’s account including tariff reset and risk of BGs. </li></ul></ul><ul><ul><li>Key Challenges in Solar Project Execution </li></ul></ul>
  10. 12. <ul><li> FINANCIAL CLOSURE </li></ul><ul><ul><li>Few Financial Institutions support Solar Power Projects in the country. </li></ul></ul><ul><ul><li>Currently only IREDA, REC,PFC, IDFC and very few banks are supporting Solar projects. </li></ul></ul><ul><ul><li>Payment guarantee mechanism is missing and banks are not willing to take risk due to financial health of state discoms. </li></ul></ul><ul><ul><li>Non-availability of Owner’s Engineer / Consultant for project vetting/ evaluation. </li></ul></ul><ul><ul><li>No proven track record of technology in the country, which makes it difficult for bankers to close. </li></ul></ul><ul><ul><li>Real site solar data is not available for giving comfort to lenders. </li></ul></ul><ul><ul><li>Key Challenges in Solar Project Execution </li></ul></ul>
  11. 13. <ul><li>STATUTORY APPROVALS </li></ul><ul><ul><li>There are more than a dozen serious approval needed for a Solar Project. </li></ul></ul><ul><ul><li>No single window clearance made available. </li></ul></ul><ul><ul><li>Nodal Agency doesn’t even provide with list of approvals required. </li></ul></ul><ul><ul><li>Bureaucratic approval process is very painful and time consuming. </li></ul></ul><ul><ul><li>Key Challenges in Solar Project Execution </li></ul></ul>
  12. 14. <ul><li>Regulatory Policy certainty with long term horizon </li></ul><ul><li>Credible players with long term focus on sector </li></ul><ul><li>Economies of Scale for progressive cost reduction </li></ul><ul><li>Development of system integration capabilities. </li></ul><ul><li>Reliable After Sales Services </li></ul><ul><li>Attractive Long term Project Finance Options </li></ul><ul><li>Oil / Coal Subsidy to support Solar projects for payment Guarantee. </li></ul>What is needed for Growth of Solar Power
  13. 15. SUN will play a major role in defining India’s “Energy Security” objective Thank You for your attention [email_address]

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