ACME Presentation To Forum of Indian Regulators. 2 2 Private & Confidential The ACME group was...

ACME Presentation

To

Forum of Indian Regulators

ACME Presentation

To

Forum of Indian Regulators

2 2

Private & ConfidentialPrivate & Confidential

• The ACME group was founded in 2003

• ACME Tele Power Limited (ATPL), the

flagship company of ACME Group, is a

leading provider of energy management

solutions for telecom sector

• Presently has an employee strength of 1500

• Global presence

• 7 Patents Awarded & 100% commercialized

ACME Group – Overview

CAGR >300%

Revenue Growth Path

(in INR million)

ACME’s products and solutions are innovation drivenACME’s products and solutions are innovation driven

0

5000

10000

15000

20000

25000

FY-03 FY-04FY-05 FY-06FY-07 FY-08FY-09

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The ACME Group: Diversified Businesses

• Provides complete water, waste-water and waste management solutions

• Offers both point-of-entry and point-of-discharge solutions

• Distributed power generation through various state-of-the-art technologies like Micro Solar Thermal, Microturbines, fuel cells etc

• Focused on commercializing technologies for environmentally-friendly and efficient energy generation system

• Provides technology solutions to the telecom industry both in India as well as around the world

• Energy management solutions for various industrial sectors

Telecom Distributed Power Generation

Solar Energy Waste Water Treatment

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• Abundant solar energy of 5,000

trillion kWh/year

• Major regions of India enjoy strong

radiation almost throughout the year

• A predictable, reliable, perennial

source of energy and has got

potential to meet the total energy

requirement of the country

• Clean, environment friendly green

energy

Solar Potential in our Country

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Solar Thermal : Globally promising technology

• 1200 MW of Solar Thermal capacity already under construction• 13900 MW of Solar Thermal projects announced for 2014• Wide array of operational international installations:

• Solar Energy Generation Systems plant, USA (354 MW)• Nevada Solar One, USA (50 MW)• Andasol 1, Spain (50 MW)• PS20, Spain (20 MW)• PS10, Spain (11 MW)

• 3 World bank projects for Solar Thermal approved in Egypt, Morocco and Mexico

• eSolar technology: While other plants still offer high tariffs (e.g., Rs. 21/unit for PS10 in Spain), with eSolar technology, tariff is approximatelyRs. 14/unit currently

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ACME in Solar Thermal

• ACME was first to introduce the cutting-edge modular Solar Thermal technology in India • Exclusive agreement with leading technology provider eSolar of USA• ACME Solar Thermal:

• 2.5 – 50 MW modules for power generation

• First 10 MW plant is under implementation and first module is likely to be ready by March 2010 in Bikaner

• 50 MW plant to be ready by Dec 2010 in Gujarat

• 150 MW being developed in Rajasthan for Northern regional states (Delhi, Haryana, Punjab, Rajasthan)

• 100 MW MOU signed with MP Govt.• 5 MW allocated by Maharashtra Govt

under MNRE scheme

ACME is building world’s cheapest solar thermal power plantsACME is building world’s cheapest solar thermal power plants

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Advantages of Solar Thermal

Parameter Solar ThermalEnergy Security • No dependence on imports

• Predictable & perennial power supplyManufacturing Potential • Manufacturing facility for all components exist in India

• Only incremental investment. Boilers, Mirrors, Turbines, TowersRaw material No raw material imported, as opposed to other solar technologies

Job Creation • Highly labor intensive• Creation of huge direct and indirect employment• Solar Thermal plants create 2.5 times as many skilled high paying jobs as other conventional power plants

Efficiency Greater than 24% (Higher than any other commercially available Solar technology)

Allied beneficiary industries

Steel, Glass, Software, Tools, Construction, Mining, Heavy equipment

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Component Suppliers Identified Manufacturing capacity

Solar BlockMirror Indian and MNC majors • 6 months delivery period

• Any capacity can be made available

Boiler Many local small & medium industries

• 6 months delivery period• Capacity can be ramped up as required

Tower Many local small & medium industries

• 3 months delivery period• Large production capacity in India

Power BlockTurbine Local SMEs, Maxwatt,

Turbotech, Triveni, BHEL, Siemens

• Multiple 2.5 MW to 50 MW units with 6-12 months delivery time • Capacity enhancement as required

Cooling Tower Local SMEs, Gammon, Paltech, Paharpur

• 5 to 50 MW modules with 6-8 months for commissioning• Capacity enhancement as required

Solar Thermal Equipments Manufacturing Capacity

In 12 months, capacity can be scaled up to few thousand MWIn 12 months, capacity can be scaled up to few thousand MW

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ACME’s Capability

• ACME proposes to set up multiple solar power projects at different locations as follows:– Utility – scale Solar Thermal Power projects of 100 MW each at different

locations– Solar Photovoltaic technology based power projects – Integrated solar combined cycle system (ISCCS) Power project of 210 MW

capacity, which will use both conventional and non- conventional energy sources.

– Micro- Solar technology based power projects:• Off-grid (domestic)• Off-grid non domestic• Grid –connected• Distributed generation

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• A field of sun-tracking heliostats reflects solar heat to a thermal receiver mounted on top of a tower

• The focused heat boils water within the thermal receiver and produces steam

• The plant pipes the steam from each thermal receiver and aggregates it at the turbine

• The steam powers a standard turbine and generator to produce solar electricity

• The steam then condenses back to water through cooling, and the process repeats

How Solar Thermal Technology works

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Aerial view of the 5 MW facility

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About Solar Thermal Technology

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Sun rays producing steam from receiver

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Integrated Steam Combined Cycle

• The ISCC plant will generate 210 MW of power for about 6 – 7 hours and when the solar steam stops at sundown, the plant will deliver 160 MW

• This will help in meeting the loads during peak hours as well as in optimal utilisation of solar capacity.

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Photovoltaic Power System

• A photovoltaic (PV) power system converts the sun’s energy directly into electricity. The main component of a PV system is a photovoltaic module which consists of a number of photovoltaic cells

• Photovoltaic modules and inverter and all the ancillary control and management equipment together make a photovoltaic power system.

• PV systems vary in size to suit different applications (for example houses, commercial and industrial buildings or centralized production).

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Micro Solar Thermal • A parabolic trough is a type of solar thermal energy collector. It is constructed

as a long parabolic mirror (usually coated silver or polished aluminum) with a Dewar tube running its length at the focal point. Sunlight is reflected by the mirror and concentrated on the Dewar tube. The trough is aligned on a death star, and rotated to track the sun as it moves across the sky each day.

• Heat transfer fluid (usually oil) runs through the tube to absorb the concentrated sunlight

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Acme’s perspective on Acme’s perspective on Regulatory Frame Regulatory Frame

work.work.

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ACME’s Observations

Project Cost and Tariff Determination • Acme has acquired eSolar technology, which is modular and scalable. The present project

cost is Rs 15 cr per MW and corresponding energy tariff is comparatively high. The initial high tariff needs to be supported and nurtured by feed in tariff . This initial support is needed so as the technology is developed and all the high cost projects equipments are indigenized.

• After achieving scale of say 500 MW the project cost is expected to attain parity with conventional coal based Thermal projects.

• The subsidy on new projects can be gradually reduced and brought to zero.

• CERC/ SERC to determine the project cost and the corresponding tariff in the spirit as enshrined in “The Electricity Act 2003” and the objectives/ strategy of Solar Mission document of National Action Plan on Climate Change. Cl. 86 (e) of Electricity Act 2003, mentions one of the functions of State Commission as “ promote cogeneration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity……..”

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• In order to utilize and harness the generous gift of Mother Nature i. e. Radiant Solar Energy optimally, the provision of Integrated Solar and Combined Cycle Power Project (ISCCP), has been envisaged. Acme has planned to set up at least two such ISCCPP. Honourable commission may consider these projects with view to encourage these projects.

• Definition of Solar Thermal Projects to be brought in line with ‘ California Electricity Commission.”

• CERC to decide the tariff , if beneficiaries are more than one state & SERC/State Govt to decide extent of share by various utilities with in the state.

• SERC to decide the tariff , if beneficiary is with in a state.

• Solar projects where MNRE is providing subsidy, those projects should be eligible for tariff determination by CERC.


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Solar projects to be kept exempted from Custom and Excise duties.Accelerated depreciation has been introduced by some of the SERC s, however

the same can only be availed by developers having income tax liabilities. It is requested to provide corresponding incentive in the tariff for the developers who can’t avail the benefit of accelerated depreciation. This will provide level field to develop the solar power projects.

Subsidized interest rate on loan.Speed up the process of tariff determination of each state and PPA.

Grid Connectivity

• Transmission of solar energy will not be subjected to Open Access charges from Central Transmission system in case of inter state transmission of power with in the same region.

• Transmission line/ power evacuation system to be provided by state governments) or its agency.


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Capital Cost for Solar Thermal Power Project

• Normative capital cost for Solar Thermal Project with STP technology is to be specified as 15 Cr/MW and above, depending on the technology adopted.

• Capital cost for :• 10 MW capacity PS-10 project at Seville, in Spain - Euro 35 Million i.e. >20

Cr/MW.• 20 MW capacity PS-20 project at Seville, in Spain - >21 Cr/MW.• Proposal to keep the capital cost of project with Solar Thermal technology in

India, not less than 15Cr/MW.

Capacity utilization factor

• CUF is linked to Direct Insolation Level of the area where project is located.• In best conditions CUF is not likely to exceed 22%, the same to be specified

as a normative figure for solar thermal power project .


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Return on Equity

• The pre-tax return to the level of 19% for first 10 years which gives effective post- tax return of 15 % revised as per our suggestion. We are thankful for the same.

Capital Cost of Solar PV• Proposal to keep the Capital cost of project with Solar PV in India,

not less than 18Cr/MW.

Capacity utilization factor

• Proposed CUF of 19% for Solar PV is on the higher side.• Reasonable figure of CUF with Solar Insolation level of 800-1000

W/m2 should be 16-18%.


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Summary

• India has got huge potential for development of MW class Solar Thermal power projects.

• Technologies are credible, reliable & simple.

• Biggest deterrent is high initial cost due to the fact that all critical components of solar block are imported.

• Technology needs initial support in the form of preferential tariff/feed-in tariff.

• Certain level of installed capacity in order to achieve economies of scale, critical components being imported can be localized 100%.

• Capital cost of Solar Thermal Power Project can be brought down by localisation.

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