The presentation throws light on the commercial aspects of developing a solar project in Maharashtra with a view to supply power to a third party through open access. Specifically, it probes into the spectrum of open access charges that are applicable while the generated power traverses through the state transmission and local distribution grid, starting from the plant end to the consumer end.

1. Solar Power Purchase Services
Gensol Engineering Pvt Ltd

2. The Document
Feasibility of a Solar PV
Project for Third Party
Sale in Maharashtra

3. Open Access in Maharashtra

4. Enabling Policy in Maharashtra
Maharashtra Electricity Regulatory Commission
(Distribution Open Access) Regulations, 2014.
3.1 Subject to the provisions of these Regulations, a consumer having contract
demand of 1 MW and above and where the minimum power to be made
available for Open Access at any time is 1 MW and above, shall be eligible for
seeking Open Access to the distribution system of such Distribution Licensee for
obtaining supply of electricity from a Generating Company or Captive Power
Plant or from a Licensee other than such Distribution Licensee or through the
Power Exchange :
Provided that the necessary conditionality mentioned in Regulation 3.1 about
minimum power to be made available for Open Access at any time is 1 MW and
above, for being eligible for seeking Open Access shall not be applicable for
Open Access getting supply from a Renewable Energy generating plant
identified as ‘Non firm power’ under MERC (Terms and conditions for
determination of RE Tariff) Regulations, 2010, as amended from time to time

5. Consumer Categories and Tariffs
Consumer Category
Tariff
(Rs./kWh
)
Source
HT II - Commercial Express Feeder 11.40 ANNEXURE II
Revenue from revised Tariffs effective from 1 April, 2017
http://www.mercindia.org.in/pdf/Order%2058%2042/Order-
48%20of%202016-03112016.pdf
HT II - Commercial Non-express Feeder 11.40
HT I - (Industrial Express Feeder) 7.07
HT I - (Industrial Non-express Feeder) 7.07

6. Calculation of Open Access Charges: HT II - Commercial Non-Express
Feeder
Units Notations Charges/losses kWh
Price @ Generator Bus Rs/kWh A 5.00
Consumer category HT II - Commercial Non-Express Feeder
Select Voltage Level kV 33
Group Captive/third party Thiry party
Energy injected into transmission system kWh B 1,600,000
Transmission Charge Rs/kWh C 0.71
Transmission Losses % D 3.89% 62240
Energy injected into distribution system kWh E 1,537,760
Wheeling charges Rs/kWh F 0.09
Wheeling losses % G 6% 92266
Cross subsidy surcharge Rs/kWh CSS 0.68
Additional surcharge Rs/kWh AS 1.11
Units Injected at Buyer's Bus kWh H 1,445,494
Open access charges Rs / kWh 3.85

7. Calculation of Open Access Charges: HT II - Commercial Express
Feeder
Units Notations Charges/losses kWh
Price @ Generator Bus Rs/kWh A 5.00
Consumer category HT II - Commercial Express Feeder
Select Voltage Level kV 33
Group Captive/third party Thiry party
Energy injected into transmission system kWh B 1,600,000
Transmission Charge Rs/kWh C 0.71
Transmission Losses % D 3.89% 62240
Energy injected into distribution system kWh E 1,537,760
Wheeling charges Rs/kWh F 0.09
Wheeling losses % G 6% 92266
Cross subsidy surcharge Rs/kWh CSS 0.71
Additional surcharge Rs/kWh AS 1.11
Units Injected at Buyer's Bus kWh H 1,445,494
Open access charges Rs / kWh 3.88

8. Calculation of Open Access Charges: HT II - Industrial Non Express
Feeder
Units Notations Charges/losses kWh
Price @ Generator Bus Rs/kWh A 5.00
Consumer category HT II - Industrial Non Express Feeder
Select Voltage Level kV 33
Group Captive/third party Thiry party
Energy injected into transmission system kWh B 1,600,000
Transmission Charge Rs/kWh C 0.71
Transmission Losses % D 3.89% 62240
Energy injected into distribution system kWh E 1,537,760
Wheeling charges Rs/kWh F 0.09
Wheeling losses % G 6% 92266
Cross subsidy surcharge Rs/kWh CSS 0.44
Additional surcharge Rs/kWh AS 1.11
Units Injected at Buyer's Bus kWh H 1,445,494
Open access charges Rs / kWh 3.60

9. Calculation of Open Access Charges: HT II - Industrial Express Feeder
Units Notations Charges/losses kWh
Price @ Generator Bus Rs/kWh A 5.00
Consumer category HT II - Industrial Express Feeder
Select Voltage Level kV 33
Group Captive/third party Thiry party
Energy injected into transmission system kWh B 1,600,000
Transmission Charge Rs/kWh C 0.71
Transmission Losses % D 3.89% 62240
Energy injected into distribution system kWh E 1,537,760
Wheeling charges Rs/kWh F 0.09
Wheeling losses % G 6% 92266
Cross subsidy surcharge Rs/kWh CSS 0.48
Additional surcharge Rs/kWh AS 1.11
Units Injected at Buyer's Bus kWh H 1,445,494
Open access charges Rs / kWh 3.64

10. Financial Feasibility of Solar PV Projects

11. Project Economics of a 10 MW Project
DASHBOARD
AD Benefet Availed NO
Project Execution Mode PMC
Area required per MW (acres) 4.5
Land cost per acre 0.045
Land Cost (Rs in Cr) 2.025
Permitting and commissioning costs (Rs in Cr) 0.02
EPC Cost per MWp (Rs in Cr) 3.8
EPC Cost (Rs in Cr) 38.20
USD/INR 66
AC Capacity (MW) 10
DC Overloading 20.0%
DC Capacity (MW) 12.00
Generation (MWh) 21000
Total transmission losses 0.10%
Generation net of transmission losses (MWh) 20979
PLF 23.97%
Interest rate 11.25%
Refinancing after 1 year of COD No
Debt 70%
Equity 30%
Tariff 4.5000
Equity IRR 18.05%
PIRR 13.28%

12. Possible Solar Tariffs for Consumer Categories
Consumer Category
Grid Tariff
(Rs./kWh)
Open Access
Charges
(Rs./kWh)
Ceiling of Possible
Solar Tariff
(Rs./kWh)
HT II - Commercial Express Feeder 11.4 3.88 7.52
HT II - Commercial Non-express Feeder 11.4 3.85 7.55
HT I - (Industrial Express Feeder) 7.07 3.64 3.43
HT I - (Industrial Non-express Feeder) 7.07 3.60 3.47

13. Savings for Consumer Categories at Rs 4.5/kWh of Solar Tariff
Consumer Category
Final Landed
Tariff (Rs./kWh)
a = b + c
Open Access
Charges
(Rs./kWh)
b
Solar Tariff
(Rs./kWh)
c
Cumulative
Savings for
25 years
(Rs in Cr)
NPV of
Savings
@10%
discount
rate
(Rs in Cr)
HT II - Commercial Express
Feeder
8.38 3.88 4.5 459.93 119.13
HT II - Commercial Non-
express Feeder
8.35 3.85 4.5 462.08 119.83
HT I - (Industrial Express
Feeder)
8.14 3.64 4.5 N.A N.A
HT I - (Industrial Non-
express Feeder)
8.10 3.60 4.5 N.A N.A

14. Cross Subsidy Surcharges
EHV Consumers HT Consumers HT Consumers
(66kV & above) (33kV) (22/11 kV)
Industry
HT I - (Industrial
Express Feeder)
1.9 1.9 1.9
HT I - (Industrial
Non-express
Feeder)
1.77 1.77 1.77
Commercial
HT II - Commercial
Express Feeder
2.85 2.85 2.85
HT II - Commercial
Non-express
Feeder
2.71 2.71 2.71
Table 8-36: http://www.mercindia.org.in/pdf/Order%2058%2042/Order-48%20of%202016-03112016.pdf

15. Sources
Transmission Charge
Table 8-35:
http://www.mercindia.org.in/pdf/Order%2058%2042/Order-
48%20of%202016-03112016.pdf
Transmission Losses
Table 3-10:
http://www.mercindia.org.in/pdf/Order%2058%2042/Order-
48%20of%202016-03112016.pdf
Wheeling charges Table 8-27/8-14:
http://www.mercindia.org.in/pdf/Order%2058%2042/Order-
48%20of%202016-03112016.pdfWheeling losses
Cross subsidy surcharge
CSS -->Table 8-36:
http://www.mercindia.org.in/pdf/Order%2058%2042/Order-
48%20of%202016-03112016.pdf
CSS for renewable energy is 25% of applicable to conventional
sources:
http://www.mercindia.org.in/pdf/Order%2058%2042/DOA%20Regul
ations%202015%20-16092015.pdf
Additional surcharge
Table 8-45:
http://www.mercindia.org.in/pdf/Order%2058%2042/Order-
48%20of%202016-03112016.pdf