Solar Energy India

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Solar Energy India

  1. 1. KVK Energy 22 FEBURARY, 2012
  2. 2. KVK Energy Ventures Private Limited PRESENTATION BY GOPAL LAL SOMANIKVK Energy 22 FEBURARY, 2012
  3. 3. Contents • Introduction- Overview • National Energy Scenario • Grid connected Solar Energy- Progress • NSM / NVVN Phase I – Bidding Results and Progress • Journey towards grid parity • Long term Development and Growth under NSM • Cost trends and predicted charts • Key Drivers • Concerns and limitation • ConclusionKVK Energy 22 FEBURARY, 2012
  4. 4. Renewable energy – Overview • Principal renewable sources of energy are : Solar, Wind, Biomass, Small hydro, Geo thermal etc. • Renewable energy capacity reached 23129 MW, accounting for 10.75% of the total installed power capacity in India • The Ministry of New and Renewable Energy (MNRE) plans to take the total renewable energy capacity to more than 30000 MW during 11th Five-Year Plan • Solar energy capacity development is miniscule at the moment • Indian Solar energy market is estimated worth 100000 MW in long term . • Currently solar energy accounts for a fraction (less than 2.5%) of the total renewable energy installed capacity in India.KVK Energy 22 FEBURARY, 2012
  5. 5. Renewable energy – Overview • Government is providing various direct and indirect incentives to encourage investment in solar energy. • Solar energy is at a nascent stage in India and the Solar Photovoltaic method of power generation is dominant at present • Solar energy can be harnessed through two methods – A. Solar Photovoltaic (SPV) - converts light directly into electricity. Cr. Silicon and Thin Film are the popular technologies in the market B. Solar Thermal/Concentrated Solar Power (CSP) - converts light first into heat and then into electricity Parabolic trough, Central Tower, CLFR and Dish technologies are popular.KVK Energy 22 FEBURARY, 2012
  6. 6. Source MNREKVK Energy 22 FEBURARY, 2012
  7. 7. National Energy ScenarioKVK Energy 22 FEBURARY, 2012
  8. 8. GRID CONNECTED SOLAR POWER - PROGRESS • Amendment in National Solar Policy for Solar Specific RPO set to 0.25% in phase I and to increase to 3% by end 13th Plan. • Announcement of separate solar policies by states and RPO’s by state Regulators. • Announcement of REC mechanism by CERC / SREC with floor and forbearance prices for trading through Renewable Energy Trading Centres. • Exemption from Environmental Clearances for Solar Energy Projects. • NVVN / NTPC authorised for allotment of solar energy projects of Phase I (Thermal and PV) for 1000 MW capacity.KVK Energy 22 FEBURARY, 2012
  9. 9. NSM/NVVN PHASE I BIDDING RESULT LEC TARIFF TRENDSKVK Energy 22 FEBURARY, 2012
  10. 10. NVVN/NSM-Phase I – Bidding Process • Solar Thermal CSP technology: 7 projects aggregating to 470 MW capacity selected in December, 2010. • Transparent reverse bidding process followed by NVVN resulted into average tariff of Rs. 11.48 against CERC bench mark tariff of Rs. 15.57 • Solar PV technology: 30x5 MW for 150 MW capacity selected in December, 2010.KVK Energy 22 FEBURARY, 2012
  11. 11. NVVN/NSM-Phase I – Bidding Process • Transparent reverse bidding process followed by NVVN resulted into average tariff of Rs. 12.16 against CERC bench mark tariff of Rs. 17.93 • Most projects are connected got synchronised and connected to Grid in January, 2012. • 350 MW Batch II projects: 28 projects got selected with minimum and maximum tariff of Rs. 7.49 and Rs.9.44. Weighted average tariff of Rs. 8.77 has further been achieved against CERC bench mark tariff of Rs.15.32 / unitKVK Energy 22 FEBURARY, 2012
  12. 12. Anticipated Commissining - Progress • Projects are scheduled for commissioning by end 2012 or March 2013. • Solar Power installed capacity: (+) 400 MW as on date and expected to reach 500 (+) by March 2012. (Combined under Gujarat Policy and JNSM). • Allotment of solar projects under JNSM Phase II and bidding process in states will continue for additional capacity of 2500 MW. • Solar energy heading to achieve grid parity by 2015 – 2017.KVK Energy 22 FEBURARY, 2012
  13. 13. Target for development- Grid parity • Phased development of additional 5000 – 7500 MW through competitive bidding will result solar energy into self sustainability and cost economic viable solution for large scale development. • Development at economy of scale in solar energy will allow explosive development through open access, REC, captive and IPP mode. • With 3% RPO mandate under the Electricity Act 2003, Solar energy expected to achieve grid parity in 2015 – 17, the solar energy will surpass NSM target and achieve capacity built up to 50000 – 60000 MW in 2022.KVK Energy 22 FEBURARY, 2012
  14. 14. Growth of Solar Power under JNSMKVK Energy 22 FEBURARY, 2012
  15. 15. Cost trends & predicted scenario. $3.19/W 0.18 0.41 $2.65/W 0.18 0.50 0.41 $2.17/W 0.17 $2.02/W $1.9/W 0.30 0.50 0.39 0.17 $2.00/W 0.16 $1.71/W$1.63/W 1.79 0.38 0.16 $1.56/W $1.5/W 0.36 0.15 0.15 $1.44/W 0.21 0.48 0.35 0.15 0.34 0.33 0.14 0.14 0.46 0.33 1.35 0.44 0.32 0.31 0.43 0.42 0.19 0.41 0.40 0.18 0.16 0.39 0.38 0.94 0.15 0.14 0.84 0.77 0.14 0.13 0.71 0.65 0.12 0.12 0.61 0.57 0.53 0.50 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Inverter Balance of plant Engineering, procurement & construction Other Source: BNEFKVK Energy 22 FEBURARY, 2012
  16. 16. Decreasing costs for Crystalline -Silicon 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 u u J J M M M M M n a n a N N l l J J S S a a p e o p e o v v a a a y r y r y u 4 0 u 8 1 O O J J 0 1 4 2 N N D D c c A A A l l n a 2 0 n a 6 1 S S J J g u 1 0 g u 5 1 g u 9 2 p e 2 1 p e 6 2 o 7 0 o 1 2 e 5 0 e 9 1 v v c c t t 2009 2010 2011 2012 5" mono wafers 6" multi wafers 6" mono wafers Mono cells Multi cells Source: BNEFKVK Energy 22 FEBURARY, 2012
  17. 17. Decreasing costs for Crystalline -Silicon 2.5 2.0 1.5 1.0 0.5 0.0 M A p M N D n a n u F a J J b e o e r v c a r y u 1 J O O O O O u 4 0 u 8 1 u 5 2 J J J 3 0 0 1 7 1 4 2 1 3 l c c c c c N N N N D D D D n a 2 0 n a 9 0 n a 6 1 n a 3 2 A A A A A l l l S S S S J J J J g u 1 0 g u 8 0 g u 5 1 g u 2 g u 9 2 p e 5 0 p e 2 1 p e 9 1 p e 6 2 o 7 0 o 4 1 o 1 2 o 8 2 e 5 0 e 2 1 e 9 1 e 6 2 t t t t t v v v v c c c c 2010 2011 2012 Multicrystalline silicon module (c-Si) Monocrystalline silicon module (c-Si) Source:BNEFKVK Energy 22 FEBURARY, 2012
  18. 18. Module Pricing – Current trendsKVK Energy 22 FEBURARY, 2012
  19. 19. Key Drivers in future market • Optimum solar radiations 5.5 – 6.5 Kwh / m2 / day • More than 300+ yearly Sunny days. • Strong infrastructure and policy support. • Overwhelming response by developers and investors expressed in NSM Phase I bidding. Applications worth 30000 MW already registered in various states for development.16000 MW applications alone in Rajasthan. • Silicon, wafer, cell and module prices crashed in recent past and continue to fall further. (Silicon price from $450 / kg in 2008 to $ 50 / kg in 2011 and cell price from $ 2 to $ 0.6/ W) • Declining cost on PV systems, innovations in technologies and efficiency gain will support rapid development and long term viable investment in Gujarat and Rajasthan • Abundant desert land available in Thar DesertKVK Energy 22 FEBURARY, 2012
  20. 20. Challenges • Solar thermal capital cost are still unaffordable and prohibitive. • Accurate solar resource assessment. High risk and serious concerns by FI’s. • Concerns on long term performance due to high temperature environment and fast degradation • High dependence on proprietary items and BOS supplies from import . • High finance cost in India. • Lack of human recourse and manpower in EPC/O&M. • Limited support on R&D activities and transmission infrastructure. • High dust level in maintenanceKVK Energy 22 FEBURARY, 2012
  21. 21. Concerns on quality and installationKVK Energy 22 FEBURARY, 2012
  22. 22. Concerns on quality and installationKVK Energy 22 FEBURARY, 2012
  23. 23. Concerns on quality and installationKVK Energy 22 FEBURARY, 2012
  24. 24. Conclusion Journey has started rapidly towards affordable and GRID PARITY SOLAR ENERGY in India with significant boost resulted in two bidding sessions carried out by NVVN / MNREKVK Energy 22 FEBURARY, 2012
  25. 25. We Envision “To be an integrated player across the Energy Value Chain, delivering quality power at competitive cost and creating superior value for all stake holders" Thank You Contact: GOPAL LAL SOMANIKVK Energy 22 FEBURARY, 2012 Mobile : 91 8800988699

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