Indias Solar Thermal Market Lavleen Singal

7/27/2019 Indias Solar Thermal Market Lavleen Singal

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ISSUES AND EXPECTATIONS OF CSP

INTERSOLAR INDIA 2012

November 5, 2012


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AGENDA

1. Issues from Phase I

2. Expectations for Phase II

3. Initiatives for deployment, cost

reduction and global leadership


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ISSUES FROM PHASE I

1. Site selectiona. Low DNI

b. Dust

c. Deep foundations

2. Non recourse financial closure3. Low price bids (due to selection criteria?)

4. Land availability and consolidation

5. Grid Infrastructure

6. Auxiliary Power

7. Completion time

8. Water availability


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EXPECTATIONS FOR PHASE II

1. Split between CSP & PV

2. Accurate SRRA data (ground truth) for betterestimation from satellite (with known deviation)

3. Mechanism for non recourse financial closure4. Project feasibility

5. Selection criteria (to avoid low bids)

6. Special incentives for

a. Thermal storageb. Air cooled system (low water requirements)

c. Small systems with storage for remote rural


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SPLIT

1. Preference to CSP in splita. PV projects viable under REC mechanism

b. CSP technology provides better opportunities

i. Thermal storage for 24 x 7 operation, meet peakpower

ii. Integrate-able with conventional power plants

iii. Suitable for remote rural

2. Co generationa. Water purification & desalination

b. Cold storage


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SELECTING PROJECT SITES1. 51 CWET solar meteorological stations one year DNI data

published in paper presented* at Solar Paces 2012

a. 1,702 KWh/m2/year (highest in Rajasthan Phalodi)

b. 1,397 KWh/m2/year (highest in Tamil Nadu Chennai)

c. 1,600 KWh/m2/year (average from 13 stations in Rajasthan)

d. 1,300 KWh/m2/year (average from 9 stations in Tamil Nadu)

e. Cannot be considered Ground Truth

2. Unable to use ground data (ground truth) for satellite

estimations, the most popular methodology for

1. Site selection (solar GIS maps)

2. On-site estimation of solar resource for life of project (30 years)

3. Solar resource estimates required project design, feasibility leading

to financial closure

Solar Resource Assessment and Mapping of India

by Dr. A. Kumar, MNRE; Dr. G. Giridhar, CWET; I. Mitra, GIZ etc


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NON RECOURSE FINANCIAL CLOSURE

1. Empanel internationally recognized third parties, initially for

a. Yield estimation, project cost and feasibility calculations Solar

resource estimation

b. Technical DUE DILIGENCE

c. Develop and establish methodology for assessing bankabilityd. Develop local competence, encourage JVs

2. Develop mechanism for 3rd party guarantees to mitigate risk

to Lenders

a. Spain: EPC guarantees (hikes up project costs)b. USA: Loan guarantees, tax benefits

3. Viability Gap Funding will ease situation


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SELECTION CRITERIA

1. Unreasonably low bids (in reverse biddingscheme), many feel

a. Not a true representation of costs

b. Projects may not be successful (either financially or

technology)2. Has kept experienced foreign technology players

and investors outa. Good for indigenous development

b. May be bad for future growth: especially technologypenetration, project finance

3. Need strong pre-selection criteria for biddinga. Bankability

b. Technology


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PROJECT FEASIBILITY

1. CSP projects require at least one year of pre-project work at significant cost

a. Developers reluctant to invest due to

uncertainty in winning projects, leading toi. Unrealistic bids

ii. Lack of non recourse financial closure

2. Current REC scheme (5-year tariff) not viable

for CSP

a. 2 3 years for project commissioning


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SPECIAL CONCESSIONS

1. Notification of special Tariff by CERC fora. Air cooled systems

i. Lower efficiency, higher cost

b. Small capacity 24x7 systems for remote rural

i. With storage or hybridized for 24x7 operation

ii. Lower efficiency for smaller size

c. Hybrid systems (existing or new plants)

i. To encourage existing (and new) conventional plants to

reduce fossil fuel usage and increase deployment

2. Encourage thermal storage through specialmechanism (higher percentage of VGF)


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INITIATIVES FOR CSP

1. Solar resource assessment (based on satellite

estimation, in absence of ground data)

2. Benchmarking performance of CSP

projects/components

3. Test facility (CIEMAT, SNL)

4. Demo facility (PSA)

5. R&D investment support


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SOLAR RESOURCE ASSESSMENT

1. Development of

a. Quality monitoring and Data Correction

system/software for all available ground data

b. Satellite based modeling (with deviations fromground truth) from

i. Meteosat

ii. INSAT (Indian satellite System)

c. Solar resource GIS maps from 11-year satellite data(in the absence of accurate & reliable ground data)

d. Technology for nowcasting


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BENCHMARKING & TECHNOLOGY

1. Benchmarking

a. Test facility for testing & monitoring performance

b. Field data for on-site performance

2. Technologya. PSA type facility for evaluation and development of

new technologies

3. Committee to identify requirements

4. Awards to be on open tender system (IIT-J

example)


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R & D INITIATIVE

1. Committee to identify R & D technologies for

indigenous development

2. Ministry to provide partial funding for

development

3. Open tender system for award of projects,

based on existing infrastructure/experience

for manufacturing


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SUMMARY

CSP needs nurturing SRRA project

R&D, indigenization

Thermal storage technologies

Better split in Phase II REC mechanism, tariff, continuity

Reappraisal of CSP-specific issues from Phase I

Current initiatives in right direction, need better

quality of the results Better monitoring, more transparent processes


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CONTACT

LAVLEEN [email protected]

+91 99100 61150

+91 11 4156 2950
mailto:[email protected]:[email protected]

Indias Solar Thermal Market Lavleen Singal

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