Economics of Solar Park

Cost Economics For Solar Parks

Anmol Singh Jaggi

An Aerial View of Gujarat Solar Park

Contact: [email protected] | Ph:+91 93270 16962

Infrastructure in a Solar Park


Land

Power Evacuation

Water Supply & Treatment

Common Infrastructure

Roads

Security

Infrastructure in a Typical Solar Park


But, what are these worth to a

Project Developer?

How much should the developer

pay to get this infrastructure?

Land


Facilities provided in a Solar Park

•  Land on Lease

•  Land Leveling & Grading

What it means for a Project Developer

Area required per MW: 5 acres

Average Land Cost per Acre for Solar Projects: Rs. 5 Lacs

Average Cost for Leveling of Land per acre: Rs. 50,000

Cost saved per acre

Cost of Land + Leveling Rs. 5.50 Lacs

Power Evacuation



•  Transmission Line

•  Ready Substation for Evacuation of Power


Assumed Capacity of Power Plant: 10 MW

Assumed Length of Transmission Line: 5 kms

Cost of Transmission Line per km (incl RoW): Rs 40 Lacs

Cost of Construction of Bay at Grid Substation: Rs 25 Lacs

Cost saved per acre

Cost of Transmission Line Rs 200 Lacs

Cost of Bay Rs 25 Lacs

Total Cost Rs 225 Lacs

Cost per MW Rs 22.5 Lacs

Cost per acre Rs 4.5 Lacs

Water Supply & Treatment



•  Treated Water Pipeline

•  Water Storage

•  Sewage Treatment

•  Proper Drainage around Plant Periphery



Cost of Good Quality RO Plant: Rs. 5 Lacs

Cost of Water Storage & Sewage Treatment: Rs. 2.5 Lacs

Cost of Construction of Drainage around Periphery: Rs. 20 Lacs

Cost saved per acre

Cost of Water Infrastructure: Rs 27.5 Lacs


Cost per acre Rs 55,000

Common Infrastructure


Optional Facilities:

•  Helipad

•  Entrance


•  Telecom Network

•  Fire Station

•  Township



Cost on creating basic infrastructure for O&M Staff: Rs. 10 Lacs

Creating additional Fire Protection Infrastructure: Rs. 1.5 Lacs

Telecom Infrastructure: Rs. 1 Lac

Cost saved per acre

Cost of Common Facilities: Rs 12.5 Lacs



Roads



Broad Access Roads upto and around the Site Boundary for easy

transport of equipment during and after construction.


Typical Length of Access Roads: 1 km

Cost of Construction of good quality Access Road : Rs. 10 Lacs

•  at least 3 meter wide for transport of 40 ft containers

•  Includes the cost of Right of Way for Access Road

Cost saved per acre

Cost per MW Rs 1,00,000


Security



Wire Gauge Fencing around periphery (approximately 6 feet high)

Common Security Towers for the Park



Outside of Solar Park, boundary wall is preferred: Rs. 1500 per m

Approximate Length of boundary wall: 2.5 kms

Cost of Boundary Wall: Rs. 37.5 Lacs

Cost saved per acre



Total Direct Cost Saving per Acre


Land Rs. 5.50 Lacs

Power Evacuation Rs. 4.50 Lacs Water Supply & Treatment Rs.0.55 Lacs Common Infrastructure Rs. 0.50 Lacs Roads Rs. 0.20 Lacs Security Rs. 0.75 Lacs Total per acre saving Rs. 12.00 Lacs

Indirect Cost Saving per Acre


Considering, ready availability of the infrastructure, the project

construction period could be reduced from 6 months to 4 months. Savings on account of 2 month reduction

Assumed Plant Capacity: 10 MW

Project Cost per MW: Rs 6.5 Crores

Total Project Cost: Rs. 65 Crores

Calculation of Interest During Construction (IDC) saved

Project Implementation Period reduced by: 2 months

Approximate Debt for Project: 70% = Rs. 45.5 Cr

Assumed Interest Rate: 12.5%

Approximate IDC Saved: (Rs. 45.5 Cr / 2) x 12.5% x (2 months / 12)

: Rs. 47.39 Lacs or Rs. 4.74 Lacs per MW

Approximate IDC saved per Acre: Rs. 1 Lac

Total Savings per Acre


Direct Savings Rs. 12.00 Lacs

Indirect Savings Rs. 1.00 Lacs Total per acre savings Rs. 13.00 Lacs Peace of Mind Premium Rs. 2 Lacs Premium you would want to give for peace of mind towards ease of getting permissions & not having to go through the process of Land Identification, Acquisition and Right of Way

For the Solar Park Developer

Estimates show that a 1000 MW Solar Park

costs around Rs. 600 Cr to build or Rs. 12 Lacs per acre

Considering a Project Developer willing to pay Rs. 15 Lacs per acre,

it is a win-win situation for both.


How is Gensol helping?

Cost of Construction Increasing Generation Customer Acquisition

Gensol boasts of being India’s

largest Solar Engineering

Advisory firm boasting of 1.3

GW of client base.

Gensol EPC has been able to

achieve the most competitive

prices in the industry because

of its engineering prowess.

Gensol has JV with Spain’s

Solarig with plants managed

across 6 countries for offering

truly world class Operation &

Maintenance services for Indian

Solar Power Plants.

India’s first solar marketplace

where you can order Solar

Energy Assessment Reports

and Solar Layouts online. Soon,

ezysolare will allow you to

upload roof data and order

installers and products online.


” “ About Gensol Consultants Pvt Ltd

Gensol, an ISO 9001:2008 certified company is a pioneer in Solar Power Advisory and Project Execution. Gensol is an advisor to 1000MW+ commissioned or under construction Solar PV Projects and has a cumulative portfolio of more than 1 MW of rooftop solar power plants under execution.

•  Solar Advisory & Project Execution

•  Carbon Advisory & Trading

•  Renewable Energy Certificate Advisory & Trading

•  Power Trading

360o Clean Energy Solutions:

About Gensol Consultants Pvt Ltd

Few Facts:

•  30+ Trained Team - all Graduates and Post Graduates in

Energy and Environment

•  800 MW+ Solar Power Projects under advisory

•  1 MW+ Solar Rooftop Projects under Execution

•  Recipient of multiple awards including BusinessWorld Hottest

Young Entrepreneur and Economic Times Power of Ideas.

Quoted In:

Business Dailies: Business Standard | Economic Times Business

Magazines: Business India | Forbes India

Industry Journals: Power Line | Energetica | EQ International

Empanelled With:

Ministry of New & Renewable Energy

ANERT, Kerala (10,000 solar rooftops program)

Central Bank of India, PTC Project Financial Services,

L&T Infra Finance & Other Banks

Solar Advisory & EPC Services

Owner’s Engineer: As Owner's Engineer, we guide our clients or investors through the complete process of project feasibility, financial closure, bid process management, vendor finalization and supervision of project execution up till successful project commissioning which meets our strict quality criteria. Lender’s Engineer: Being consultants to some of the leading lending institutions in the country, we assess the key parameters impacting the returns from the project like generation, cost and conditions of the EPC Contract, preparedness of Project Developer for execution etc. Detailed Engineering and Vetting of Drawings: Gensol Solar Division is staffed with experienced Electrical, Electronics, Mechanical and Civil Engineers who undertake detailed engineering of Solar PV Power plants on behalf of EPC Contractors and vetting of drawings for Project Developers and investors. Permits & Clearances: It takes more than 32 permits and clearances from Nodal Agencies, District Authorities, Distribution and Transmission Companies etc. Gensol has an experienced liasoning team well aware of process and people to acquire these permits in time and in sequence. Detailed Project Report: A Detailed Project Report is one of the most important documents to assess the feasibility of project and to get financial closure. Gensol with its sector expertise and established standing in the renewable energy consultancy not only gives the most exhaustive analysis of the project but also enjoys the confidence of industries, investors and banks alike. Solar EPC Services Gensol, being a channel partner of Ministry of New and Renewable Energy (MNRE) has attained amongst the highest allocation of subsidies for the Solar Rooftop Projects on account of its superior engineering, standardized procurement and quick execution. Gensol has executed projects in the range of 1 kW powerpacks to 400 kW single rooftop power plants.

” “ Experience Snapshot

Gensol is among the leading consultants to Project Developers, Financial Institutions and Investors. Total portfolio of Solar Power Projects commissioned or under construction under advisory at Gensol is more than 800 MW.

•  33 MW – Sterling & Wilson, Rajasthan •  25 MW – Alex Astral Solar Power Ltd., Gujarat •  20 MW – Essel Infraprojects, Maharashtra •  20 MW – SolaireDirect, Punjab •  17 MW – Sunrays Power Solutions, Rajasthan •  15 MW – NALCO, Orissa •  10 MW – Ghodawat Energy, Rajasthan •  6.5 MW – Haryana Power Generation Corporation Ltd,

Haryana Govt Enterprise •  5 MW – Alex Spectrum Radiation Pvt Ltd, Rajasthan •  3 MW – Par Solar, Rajasthan •  1.5 MW – Agarwal Infratech Ltd, Gujarat •  350 kW – Mapro Foods Pvt Ltd, Maharashtra

Owner’s Engineer: •  130 MW – Welspun MP Energy, Madhya Pradesh •  50 MW – Welspun Energy Ltd, Rajasthan •  25 MW – Sun Edison, Gujarat •  20 MW – PLG Power, Gujarat •  15 MW – MI Mysolar 24, Gujarat •  15 MW – Dreisatz Mysolar 24, Gujarat •  10 MW – Greeninfra Solar, Gujarat •  10 MW – Millenium Synergy, Gujarat •  6.5 MW – Sun Group, Gujarat •  6 MW – Indiabulls Power, UP & Maharashtra •  5 MW – ESP Urja, Gujarat

Lender’s Engineer:

•  20 MW – Client Confidential, Gujarat •  12 MW – Lanco Solar, Andhra Pradesh •  8.5 MW – Jain Irrigation, Maharashtra •  5 MW – ABB Ltd, Gujarat •  1 MW – L&T ECC Division, Rajasthan

Detailed Designing & Design Vetting •  20 MW – Sai Sudhir Energy, Andhra Pradesh •  10 MW – Sai Sudhir Energy, Karnataka •  5 MW – Chemtrol Industries, Rajasthan •  2 MW – Shri Bhagirathi Textiles Ltd, Maharashtra •  15 MW – Boyance Infrastructure, Rajasthan •  5 MW – Sattva Salarpuria Group, Karnataka •  1 MW – NIT Hamirpur, Himachal Pradhesh

Feasibility Analysis & DPR:

Experience Snapshot

•  163 MW Grid Connected Gujarat

•  130 MW Grid Connected Madhya Pradesh

•  129 MW Grid Connected Rajasthan

•  55 MW Grid Connected Punjab

•  35 MW Grid Connected Maharashtra

•  18 MW Grid Connected Karnataka

•  15 MW Grid Connected Odisha

•  6.5 MW Grid Connected Haryana

•  2 MW Grid Connected Uttarakhand

•  2 MW Grid Connected Uttar Pradesh

•  1 MW Grid Connected Himachal Pradesh

•  300 kW Rooftop Grid tied Andhra Pradesh

•  100 kW Rooftop Grid tied Karnataka

•  92 kW Grid Tied & Off Grid Gujarat

•  Empanelled with ANERT, Kerala for 10,000 Rooftops

Solar Program

Advisory:

Execution:

” “ Gensol is among the forefront of Solar Rooftop execution

with more than 1 MW as its clientele ranging from 1 kW power packs upto 400 kW single rooftop power plants.

Gensol: Engineering, Procurement & Construction

200 kW, IIT Kanpur, Uttar Pradesh

200 kW, VIT Andhra Pradesh 130 kW, NIMS Hospital, Kerala 100 kW, VVIT, Andhra Pradesh

100 kW, NCET Karnataka 5 kW, Raheja Residence, Delhi 1 kW, 70 systems, Kerala

About Gensol

Gensol Consultants, found in 2007 is India’s leading Advisory and System

Integrator for Solar PV Power Projects. Gensol is a channel partner to MNRE and

enjoys empanelment with most major Lending Institutions in India.

1,000+ MW 2,000+ kW

Gensol has an advisory portfolio of

more than 1 GW with every 5th MW in

India developed with our expertise.

Being an MNRE Channel partner,

Gensol has executed more than 2

MW of Solar Rooftop Projects across

India.

Gensol is based out of Ahmedabad in

Gujarat but has operational solar

projects across 16 Indian States.

With a 40+ Employee Strength –

Gensol prides itself on having the

best technical talent in industry.

AWARDS

BusinessWorld – India’s largest

weekly business magazine awarded

Gensol with “Hottest Young

Entrepreneur” in 2009.

Economic Times – India’s largest

financial daily awarded Gensol in its

“Power of Ideas” series in 2010.

Gensol was the only non-UK based

firm to be nominated for Global

Consultancy of the Year at

BusinessGreen Leader Awards,

London in 2014.


Gensol Engineering Pvt Ltd | Gensol Consultants Pvt Ltd

Corporate Office 108, Pinnacle Business Park Opp Royal Arcade, Prahladnagar Ahmedabad, Gujarat India - 380015

Email: [email protected] Website: www.gensol.in Phone: +91 79 40068235 Mob: +91 93270 16962 Fax: +91 79 40068239 Twitter: gensol_tweets

Gensol is one of the leading consultants and system integrators for Solar Power Plants. We boast of a portfolio of over

1000 MW of Solar Photovoltaic Plants. Gensol is also a channel partner to Ministry of New & Renewable Energy and

installs kW scale Solar Rooftop systems on a turnkey basis with more than 1 MW of cumulative installations across the

country.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular

individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such

information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on

such information without appropriate professional advice after a thorough examination of the particular situation.

Economics of Solar Park

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