Power Plus Solar

www.indianpowersector.comPower Plus Consultants.

SOLAR

A brief comprehensivehandbook for developersand investors tomaximize their returns.

How much can youexpect as returns fromyour investment intosolar.

Choose the best alternative

Know your Policy

Know your Buisness Model

Know your Open Access state

Choose the best alternative

Know your Policy

Know your Buisness Model

Know your Open Access state

A brief comprehensivehandbook for developersand investors tomaximize their returns.

How much can youexpect as returns fromyour investment intosolar.

2 Power Plus Counsultants

Why Solar Energy Make Sense in India

What is the difference between Indian solar PV market w.r.t solar markets in E.U and U.S.?

The answer is simple for E.U. and U.S. solar or renewable power is a green and safe alternateoption to Coal and Nuclear based production. However, for India it is utmost necessity for fuelingthe sustainable growth.

Key Drivers

•Energy Deficit of 12% of peak demand

•If India continues to grow at an average

rate of 8% for the next 10 years, the

country's demand for power is likely to

soar to 315 to 335 GW by 2017 which

will require a generation capacity of

415 to 440 GW (Mckinsey Report)

•About 68.1% of India's energy

generation capacity is from fossil fuels

with coal accounting for 58% of India's

total energy consumption (Central

Electricity Authority)

•High dependence on imports for energy

requirement , total imports represents

13% of the total primary energy supply

( Energy Statistics Report 2013)

•Rising price of electricity based on coal

and gas

•Environmental concerns

How Solar Fits in

•High Solar Irradiation (annual average

GHI of 5.1) in most of the parts of

country

•Large number of sunny days available

(apprx. 330 )

•Availability of large area of land at

comparatively low costs

•High solar potential near main load

areas in country (Western and

Southern India)

•Support from Government under

NAPCC and Renewable Purchase

Obligation (RPOs)

•In parity with other resources of energy

generation with costs still going down

•Can be used both for centralised power

generation capacity addition as well as

off grid for decentralised use of energy

Choose your Policy Right

3Power Plus Counsultants


Choose your Model: Business Models for Solar Plants

APPC + REC

•The power generated is sold to the discom at APPC.•The tariffs offered by various discoms are relatively low and thus the viability of the projectlargely depends on the revenue generated through REC sale.

Captive model

•The power is sold to the off-taker through a captive route.•It is a win-win proposition for both the parties as both can achieve significant profits by thistype of collaboration.

Third party sale through open access

•A lucrative market in states where industrial tariffs are in the range of INR 5 – 5.50.•The financial strength of the off-taker makes the PPA credible.•Open access clearances are a hurdle, as discoms do not wish to let go their high paying

consumers easily

Bidding in state policies/ NSM

•The biddings are crashing as new or strategic developers bid aggressively.•The PPAs are however one of the most bankable.•Also a lot of capital and time is invested in the bidding process.

Choose your Open Access state: Comparing the returns as per existing industrial tariffs

Source: PPC financial model

Average Capex for Open Access Project: INR 80-85 million

13.07%

16.67%

21.26%

27.06%

34.24%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

90 Mn 85 Mn 80 Mn 75 Mn 70 Mn

Equ

ity

IRR

CAPEX in Million INR

Most conducive state for

Open Access projects. 5 MW

project by Emvee already

instsalled

Andhra Pradesh :

The Upcoming “Solar Capital of the India”

flying high with promising returns

5Power Plus Counsultants



6.47%

8.84%

11.85%

15.76%

21.02%

27.98%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

90 Mn 85 Mn 80 Mn 75 Mn 70 Mn 65 Mn

Eq

uit

yIR

R


NPV become > 0 at

CAPEX 0f INR 79

Million for Rajasthan

Rajasthan :The leading state for JNNSM – InvestorAttractiveness slips to third position dueto low industrial tariffs.

9.57%

12.53%

16.32%

21.22%

27.56%

35.50%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

90 Mn 85 Mn 80 Mn 75 Mn 70 Mn 65 Mn

Equ

ity

IRR


NPV become > 0 at

CAPEX 0f INR 85

Million for

Maharashtra

Maharashtra :Industrial capital comes in second: ThoughOpen Access clearances still a bottleneck



The above states have their own pros and cons and will require in detail analysis for their viability

and priority for a particular project developers. For more information on the techno-commercial

viability and future of Indian Solar market contact us at [email protected].


Captive Model : A win – win situation for all the stake holders involved

14.80%

18.47%

22.77%

27.83%

33.81%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

90 Mn 85 Mn 80 Mn 75 Mn 70 Mn

Eq

uit

y I

RR

CAPEX in Million INRSource: PPC financial model

Highly Recommended• Captive model

• Third Party Open Access sale with highly bankable PPAs

Viable Options

• Projects under state policies through competitive bidding or through directallocation

Opportunistic Market

• NSM through Viability Gap Funding• APPC + REC

Upcoming Report

SOLAR INDIA 2013

INDIA MOST POTENTIAL MARKET FOR SOLAR ENERGY

SOLAR INDIA is a bi-annual report on the Indian Solar Energy Market. SOLAR INDIAprovides an extensive examination on the Indian solar market and indicating why India ismost potential market for Solar Industry.

ADVENT with support of IndianPowerSector.com is releasing te report in

November 2013 at the Intersolar Fair in Mumbai, India on November 12 - 14, 2013.

A single glance report providing information on:

State Wise & Policy wise break up of Projects

Upcoming State Policies and Expected capacity

expansion

Leading Developers

Technology Break-ups

Financial Viability

Leading Module and Inverter Suppliers

Indian Module manufacturing capacity

Featured successful case studies from India

Interviews of Corporate Heads & Stake Holders.

Factors affecting Output & IRR

Multiple

-

-

-

-

-

-

-

-

-

-

-

-

-

Installed Solar Plants

Upcoming projects

Business models for Solar Plants

Must buy report for ANY ONE and EVERY ONE in Solar Industry.

Outreach Partner :

Advent Contrivance,

Level 5, JMD Regent Square, MG Road, Gurgaon, Haryana - 122001

Source: Energy Requirement data from 18th EPS Survey

Solar Power Capacity Requirement by 2022

1505

34334

0

1000

2000

3000

4000

5000

6000

7000

0

5000

10000

15000

20000

25000

30000

35000

40000

2011-12 2012 -13 2013 -14 2014 -15 2015-16 2016-17 2017 -18 2018 -19 2019-20 2020 -21 2021 -22

Solar Capacity

Requirement (MW) at 19% CUF

Incremental Solar Capacity (MW) - YoY

~ 33,000 MW AdditionalCapacity Required

Mr. Saurabh,

Market Research Products

T: +91- 98711 01977

E: [email protected]

For Advertisement Opportunities or Report purchase queries kindly contact:

Ms. Kanika,

Market Research Products

T: +91 - 9650214090

E: [email protected]

A young and dynamic team of power managers providing high-quality financial and business research output.

We have core expertise in Coal Policy, Coal demand and supply predictions, trend analysis, sector analysisand best research abilities

Contact us for sponsorship opportunity in the Upcoming Reports

We use a proprietary database including expert witness testimony, full-text transcripts, depositions, and more

and pull together custom reports of the pertinent expert information you need.

We provide ROD services for Indian POWER Sector

Upcoming Events

Project Financing

in

Energy & Infrastructure SectorCHALLENGES & OPPORTUNITIES

November 23rd, 2013, New Delhi

Suitability of Water (Quality)

for Irrigation, 2014

March 14th, 2014, New Delhi

SOLAR INDIASUMMIT, 2014

January 23rd, 2014, New Delhi

For SPONSORSHIP Opportunities or Delegate Registration kindly contact:

Ms. Karuna Arora, Conference Secretariat

T: +91- 99993 00826 E: [email protected]

Outreach Partner :

Advent Contrivance,

Level 5, JMD Regent Square, MG Road, Gurgaon, Haryana - 122001

Power Plus Solar

Technology

Transcript of Power Plus Solar