Distributed PV Generation and the Role of Utilities
Transcript of Distributed PV Generation and the Role of Utilities
Distributed PV Generation and the Role of Utilities
Dr. Omkar Jani
Principal Research Scientist (Solar), GERMI
Seminar on Net-Zero Energy Buildings (NZEBs) in India
New Delhi, INDIA
17 May 2013
Outline
GERMI’s first project.
Case: 5 MW Gandhinagar PV Rooftop Programme
Possible PV techno-commercial models
DisCom’s approach
Net-metering financial case studies
Proposed rooftop solar policy and implications
Comments
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GERMI’s First Project
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1-Week Energy Generation and Consumption data
at Auditorium Building, PDPU.
Courtesy: Ecolibrium Net Zero Energy Building
Demonstration:o An attempt to meet the
University Auditorium Building’s using solar.
“Is this building running on solar?”o NO!!! Better!o No batterieso No over-sizing redundancyo Will power others too.
Meets 50% of the building load.
Paved way for the 5 MW Gandhinagar PV Rooftop Programme.
Typical 2-Meter PV System Architecture
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Photovoltaic Modules
(Approx. 1 – 100 kWP)
Grid-tied
inverter Meter 2: Solar Electricity
Generation
Meter 1: Conventional
Electricity ConsumptionTransformer Grid
Advantages of PV System Architecture
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Relatively simple to install, operate and maintain.
Most popular and globally accepted configuration.
Disadvantage: No availability when grid is down.
Meter 1: Conventional
Electricity ConsumptionTransformer Grid
Photovoltaic Modules
(Approx. 1 - 100kWP)
Grid-tied
inverter Meter 2: Solar Electricity
Generation
5 MW Gandhinagar Rooftop Solar Programme
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Rooftop Solar Project
Developer
DisCom (Torrent Power)
GPCL (Govt. Agency)
for Viability Gap Funding
Rooftop/ Terrace Owner
Power Purchase Agreement (PPA)
Tariff determined by Regulator
Rooftop Lease Agreement
@ Rs. 3/- per kWh
Project Implementation
Agreement (PIA)
Quoted Tariff
Regulator’s Tariff VGF
Realized Tariff Rent
The Maths!
11.21
8.21 3.00
0.0711.14
PV Connectivity Options: No PV
A typical electrical connection to a building…
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GRIDX’FORMERBUILDING CAMPUSMeter 1
PV Connectivity Options: 2-Meter PV System
Technical Requirement:o Grid availability should be high.
Business Model:o Payback achieved through sale of power to the Grid.o Preferential feed-in tariff higher than conventional tariff.
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GRIDX’FORMERBUILDING CAMPUS
Meter 2
Meter 1
PV Modules Grid-Tied Inverter
PV Connectivity Options: Net-Metering System
Technical Requirement:o Grid availability should be high.
Business Model:o Payback achieved through savings in net-energy consumption.o Parity in solar and conventional tariff achieved by capital subsidy.o Generation-based subsidy also possible.
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GRIDX’FORMERBUILDING CAMPUSNet Meter
PV Modules Grid-Tied Inverter
Generation
Meter
PV Connectivity Options: Net-Metering System
Technical Requirement:o Should be used where grid is not available.
Business Model:o Payback achieved through utilization of energy.o High capital costs need to be supported with capital subsidies.o May be a good option for Utility to support if connectivity cost is high.
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GRIDBUILDING CAMPUSMeter
PV Modules Stand-Alone Inverter
Battery
Bank
PV Connectivity Options: Hybrid Net-Metering
Technical Requirement:o Should be used where grid-availability is low.
Business Model:o Payback achieved through savings in net-energy consumption.o Parity in solar and conventional tariff achieved by capital subsidy.o Towards a micro-grid concept…
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GRIDX’FORMERBUILDING CAMPUSNet Meter
PV Modules
PCU
Battery
Bank
Question in mind of the Utility
Do we need to buy additional power? Do we have any unfulfilled RPO?
What is the cost to us for supporting distributed generation?o One-time cost of capital subsidy?o Long-term cost of feed-in tariff?o Reduced revenue by not selling power? Losing Business?
Will my grid be able to handle the distributed power injection? (Today, YES)
Will my grid be able to commercially support the distributed power injection? (Ref. Grid Availability)
Can this power be predicated and scheduled? (Smart-grid)
What capacities do I need to handle the distributed power injection? Technical and Commercial?
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Case Study: 5 kW Residential Consumer
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Consumer Cash Flow
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DisCom Cash Flow
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Case Study: A Typical Urban Residential (RGP) Customer
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Consumer Data (before installing PV) DisCom Data
Contract Load : 5 kW Realization Cost : Rs. 5.17 /kWh
Load Factor : 12% Cost to Serve : Rs. 5.69 /kWh
Units Consumed : 438 kWh/ mo Profit from Sale : Rs. (-0.52) /kWh
Monthly Elect. Bill : Rs. 2,604 /mo T&D Improvement : 5%
PV System
PV Capacity : 5 kW System Cost : Rs. 4.00 Lacs
Subsidy : 60% Cost to Customer : Rs. 1.60 Lacs
Generation/ Month : 675 kWh/ mo Generation/ Year : 8,103 kWh/ yr
Consumer Results (after installing PV)
First Month Elect. Bill : Rs. (-622)/- Investment IRR : 28.12%
Breakeven Period : 3.90 years Investment NPV : Rs. 2.63 Lacs
DisCom Results (after installing PV)
Annual DisCom Reduc. : Rs. (-848)/- NPV Reduc. (25 yrs) : Rs. (-21,210)/-
Case Study: A Typical Low/ Medium Commercial/ Industrial (LMTD) Customer
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Consumer Data (before installing PV) DisCom Data
Contract Demand : 50 kW Realization Cost : Rs. 5.22 /kWh
Load Factor : 30% Cost to Serve : Rs. 4.49 /kWh
Units Consumed : 10,950 kWh/ mo Profit from Sale : Rs. 0.73 /kWh
Monthly Elect. Bill : Rs. 62,886 /mo T&D Improvement : 5%
PV System
PV Capacity : 60 kW System Cost : Rs. 45.00 Lacs
Subsidy : 30% Cost to Customer : Rs. 31.5 Lacs
Generation/ Month : 8,103 kWh/ mo Generation/ Year : 97,236 kWh/ yr
Consumer Results (after installing PV)
First Month Elect. Bill : Rs. 21,2376/- Investment IRR : 19.31%
Breakeven Period : 5.41 years Investment NPV : Rs. 21.64 Lac
DisCom Results (after installing PV)
Annual DisCom Reduc. : Rs. 17,249/- NPV Reduc. (25 yrs) : Rs. 4,31,231/-
Case Study: A Typical High-Tension Industrial (HTP) Customer
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Consumer Data (before installing PV) DisCom Data
Contract Demand : 500 kVA Realization Cost : Rs. 5.52 /kWh
Load Factor : 40% Cost to Serve : Rs. 4.49 /kWh
Units Consumed : 1,46,000 kWh/ mo Profit from Sale : Rs. 1.03 /kWh
Monthly Elect. Bill : Rs. 9,26,969 /mo T&D Improvement : 5%
PV System
PV Capacity : 600 kW System Cost : Rs. 420 Lacs
Subsidy : 0% Cost to Customer : Rs. 420 Lacs
Generation/ Month : 81,030 kWh/ mo Generation/ Year : 972,360 kWh/ mo
Consumer Results (after installing PV)
First Month Elect. Bill : Rs. 4,63,205/- Investment IRR : 15.83%
Breakeven Period : 6.55 years Investment NPV : Rs. 166 Lacs
DisCom Results (after installing PV)
Annual DisCom Reduc. : Rs. 2,65,848/- NPV Reduc. (25 yrs) : Rs. 66,46,194/-
Evolution of PV Generation w.r.t. End Use
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Source: International Energy Agency (IEA)
63%19%
11%
7%
56%23%
12%
10%
51%26%
11%
12%
47%27%
12%
13%
44%29%
13%
15%
Utility Scale and Rooftop Solar Share
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11,252 MW
RPO: 7.75%
CAGR: 33%
Utility Scale Solar Share (MW)
Rooftop Solar Share (MW)
Ro
bu
st
Ro
oft
op
So
lar
Po
licy
Cumulative: 3,613 MW
CAGR: 83%
Proposed Rooftop Solar Policy: Purpose
Fact: The viability gap for rooftop solar is diminishing.o Certain segments have already approached grid parity.
Fact: All entities are inherently capable of generating their own energy through solar. (Threat to DisComs?)o There is a growing number of inquiries for setting up rooftop solar PV.
Hence, a FRAMEWORK needs to be established through which such installations can be executed.o To avoid randomness and mismanagement.o Establish framework when (rooftop solar) demand is low.o Incentives are only a SECONDARY mechanism to ensure viability.
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Vision:
Make each consumer self-sufficient for Energy (Electricity).
Objectives: The Policy should…
Promote distributed generation through the Citizen User.
Take advantage of reducing cost of solar energy.
Streamline administrative approvals/ processes for connecting rooftop PV systems.
Trigger conducive designs for higher roof/ terrace area utilization.
Promote local manufacturing and employment.
Catalyze novel smart-grid and energy storage technologies.
Discover the real cost of distributed generation.
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Case Scenario: 300 MW in 3 Years
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2013-14 2014-15 2015-16
Policy Target: 300 MW 60 MW 90 MW 150 MW
Distribution…
Residential (33%) 20 MW 30 MW 50 MW
LT/ MT (33%) 20 MW 30 MW 50 MW
HT Indus. (33%) 20 MW 30 MW 50 MW
Cost to DisCom
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Year 2014 2015 2016
Annual Rooftop Installation (MW) 60 90 150
Residential Capacity (33%) (MW) 20 30 50
Cost to DisCom (Rs. Cr.) -0.34 -0.51 -0.85
LT/ MT Capacity (33%) 20 30 50
Cost to DisCom (Rs. Cr.) 0.69 1.03 1.72
HT Industrial Capacity (33%) 20 30 50
Cost to DisCom (Rs. Cr.) 1.06 1.60 2.66
Net Cum. Cost to DisCom (Rs. Cr.) 1.41 3.54 7.07
Baseline DisCom Revenue (Rs. Cr.) 23,091 23,784 24,497
Relative Reduction in Revenue 0.01% 0.01% 0.03%
Concluding remarks…
Solar is an obvious inclusion in Net-Zero Energy Buildings.
Business model for Distributed PV (and NZEB) should be selected through techno-commercial due diligence.
The cost to Utilities should be respected for the long run.
NZEB and DMS technologies can piggyback on the Solar Investment.
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Distributed PV Generation and the Role of Utilities
Dr. Omkar Jani
Principal Research Scientist (Solar), GERMI
Seminar on Net-Zero Energy Buildings (NZEBs) in India
New Delhi, INDIA
17 May 2013