Jawaharlal Nehru National Solar Mission

Transcription

1 Jawaharlal Nehru National Solar Mission National Solar Mission-Phase-I Journey so far NTPC Vidyut Vyapar Nigam Ltd. 1 11/5/2012

2 Background India is located in the equatorial sun belt of the earth, thereby receiving abundant radiant energy from the sun. About 5000 trillion kwh of energy is incident over India s land area with most parts receiving 4-7 kwh per sq. m per day. National Action Plan on Climate Change identified National Solar Mission as one of the eight Missions emphasising shift from non-renewable sources to renewable sources of energy. 2

3 The National Solar Mission is major initiative of the Government of India To promote ecologically sustainable growth; Addressing India s energy security challenge. The Mission is set in three phases- Phase-I (up to ) 1100 MW Phase-2 ( ) 4,000 MW Figure : Solar radiation on India (Source: TERI ) 3 Phase-3 ( ) 20,000 MW 11/5/2012

4 Key events Cabinet approved the Jawaharlal Nehru National Solar Mission on 19 th November,2009. Govt. of India designated NVVN as the Nodal Agency on 22 nd December,2009. National Solar Mission launched by the Hon ble Prime Minister on 11 th January,2010. Three sets of Guidelines issued by MNRE Migration Projects - 9 th February,2010. New Projects (Batch-1) of Phase-I- (Solar PV-150 MW, Solar Thermal-470 MW) - 25 th July,2010. New Projects (Batch-2) of Phase-I (Solar PV-350 MW)- 24 th August, /5/2012

5 Implementing JNNSM In order to facilitate grid connected solar power generation in the first phase, a mechanism of bundling relatively expensive solar power with power from the unallocated quota of the Government of India (Ministry of Power) generated at NTPC coal based stations, which is relatively cheaper, has been proposed by the Mission. This bundled power would be sold to the Distribution Utilities. For each MW of installed capacity of solar power for which a PPA is signed by NVVN, the Ministry of Power (MoP) shall allocate to NVVN an equivalent amount of MW capacity from the unallocated quota of NTPC coal based stations and NVVN will supply this bundled power to the Distribution Utilities. 5 11/5/2012

6 Bundling Scheme 6 11/5/2012

7 Guidelines for Migration of Existing Under Development Grid Connected Solar Projects from Existing Arrangements to the Jawaharlal Nehru National Solar Mission (JNNSM) Considerations made: i) Some of the grid connected solar power projects are at various stages of development; ii) It is important that the projects that have made progress may be considered for migration from their respective existing arrangements to the ones envisaged under JNNSM; and iii) Subject to the consent of the Distribution Utility/ State Government and willingness of the developer. 7

8 Scope of the Guidelines i) It is limited to the migration of existing under development grid connected solar project projects from their existing arrangements to JNNSM; ii) Not applicable for the projects, which have already been commissioned on or before November 19,

9 9 Eligibility Criteria for the Projects i) The Project Developer should have signed a Power Purchase Agreement, on or before November 19, 2009 for sale of entire power to any Distribution Utility with approved tariff; or ii) The Project Developer should have filed a Petition alongwith Power Purchase Agreement for determination of tariff with the concerned Electricity Regulatory Commission (ERC). iii) The Project Developer shall also submit the concurrence of the Distribution Utility /State Government for migration of the Project from the existing arrangement to JNNSM; iv) The Project Developer shall obtain the confirmation from the concerned Distribution Utility that they are agreeable to purchase the entire power from the solar power plant through NVVN.

10 Current Status Migration Projects 16 Solar Power Developers have been selected for 84 MW Solar Projects and PPAs were signed with them. State Solar PV Solar Thermal Total Rajasthan Punjab 7 7 Maharashtra Total Power Sale Agreements signed with Discoms of Rajasthan, Punjab and Maharashtra by 15 th October, /5/2012

11 State Commissioning Status of Solar PV Migration Projects Solar PV capacity to be commissioned as per PPA (MW) Solar PV capacity actually commissioned* (MW) Balance Capacity to be commissioned # (MW) Rajasthan Punjab Maharashtra Total * Based on confirmation received from SNAs and Committee # PPA with M/S EBS (5 MW-Punjab) and M/S Entegra Ltd. (1 MW-Rajasthan) terminated and these projects stand removed from JNNSM 11/5/2012

12 The status of allocation of solar capacity under JNNSM Solar PV Projects Migration Projects Region/State Solar PV Capacity set-up (MW) Allocation to State Discoms (MW) Northern Region: Rajasthan Punjab 2 2 Western Region: Maharashtra Total Solar Thermal Projects Region/State Solar Thermal Capacity being setup Allocation to State Discoms (MW) (MW) Northern Region: Rajasthan Total /5/2012

13 GUIDELINES FOR SELECTION OF NEW GRID CONNECTED SOLAR POWER PROJECTS Batch-I Capacity of Each Project i) The Project capacity shall be 5MW 5% in case of Solar PV Projects and no further variation in the capacity of the Project shall be permitted. ii) The minimum capacity of the Solar Thermal Project shall be 5MW and the maximum capacity of the Project shall be 100MW. 13

14 Phasing Allocation of Capacity i) In order to prevent bunching of large capacities and the difficulty that may arise in achieving financial closure, the selection of PV projects has been done in a phased manner; ii) Allocation of capacities has been done in two batches and over two financial years of Phase 1 i.e., and ; iii) First batch -FY : - Solar PV projects - 150MW; - Solar Thermal projects (500 MW - capacity of migrated projects) iv) Second batch -FY : - Solar PV Projects (500MW-150MW- Capacity of Migrated Projects) 14

15 Selection of Projects in First batch based on Discount in Tariff i) After short-listing, if the total aggregate capacity of the Solar PV Projects short-listed is upto 150 MW, all the short-listed Projects in the first batch i.e., in FY would be selected and Letter of Intent (LoI) will be issued to all the short-listed Projects. ii) If the total aggregate capacity of the Solar PV Projects short-listed is higher than 150 MW, the final selection of the Projects from the list of short-listed projects shall be done on the basis of discount to be offered by Project Developers on CERC Approved Applicable Tariff as detailed in the subsequent slides. 15

16 Selection of Projects in First batch based on Discount in Tariff The Short-listed Projects to submit Request for Proposal (RfP) bid indicating the discount in Rs/kWh on CERC Approved Applicable Tariff. The Projects offering the maximum discount in Rs/kWh on the CERC Approved Applicable Tariff would be selected first and so on. 16

17 17 Selection of Projects in First batch based on Discount in Tariff In order to discourage adventurous bids, Bid Bond on graded scale would need to be furnished along with the RfP bid in the manner detailed below: Sl.No. Discount offered on CERC Approved Tariff Amount of Bid Bond applicable for every paise of discount on CERC Approved tariff (per MW) 1 Upto 10% and 10% Rs.10,000/= 2 More than 10% & Upto 15% Rs.20,000/= 3 More than 15% & Upto 20% Rs30,000/= 4 More than 20% & Upto 25% Rs.40,000/= 5 More than 25% Rs.50,000/=

18 Selection of Projects in First batch based on Discount in Tariff In the eventuality of a tie in the bidding process, the applicant would be selected by draw of lots. At the end of the selection process, a letter of intent will be issued by NVVN to the selected Solar Project Developers. PPA shall be executed after 30 days of issuance of LOI. 18

19 Bank Guarantees The Project Developer shall provide the following Bank Guarantees to NVVN in a phased manner as follows: i) Earnest Money Deposit (EMD) in the form of Bank Guarantee along with RfS. -Rs. 20 Lakh/MW; ii) Bid Bond in the form of Bank Guarantee along with RfP bid (if applicable); iii) Performance Bank Guarantee at the time of signing of PPA-Rs. 30 Lakh/MW; iv) In case, the Project Developer refuses to execute the PPA within the stipulated time period, the Bank Guarantees towards EMD and Bid Bond shall be encashed by NVVN; v) In case the Project is not selected, NVVN shall release the Bank Guarantees within fifteen days of the issue of LoI to selected Projects. vi) All the Bank Guarantees shall be valid for a period of 15 months from the date of signing of PPA for PV Projects. 19

20 Commissioning In case of Solar PV, the Project shall be commissioned within 12 months of the date of signing of PPA. In case of failure to achieve this milestone, NVVN shall encash the Performance Guarantee in the following manner: Delay upto one month - NVVN will encash 20% of the total Performance Bank Guarantee. 2. Delay of more than one month and upto two months - NVVN will encash 40% of the total Performance Bank Guarantee. 3. Delay of more than two month and upto three months - NVVN will encash the remaining Performance Bank Guarantee.

21 Commissioning i) In case the commissioning of project is delayed beyond 3 months, the Project Developer shall pay to NVVN the Liquidated Damages at rate of Rs 1,00,000/MW per day of delay for the delay in such Commissioning. iii) The maximum time period allowed for commissioning of the Project with encashment of Performance Bank Guarantee and payment of Liquidated Damages shall be limited to 18 months from the date of signing of PPA. iv) In case, the Commissioning of the Project is delayed beyond 18 months from the date of signing of PPA, the PPA will be terminated and the Project shall be removed from the list of selected Projects. However, if as a consequence of delay in commissioning, the applicable tariff changes for the project, the project shall be paid the changed applicable tariff, incorporating the tariff discount, if any. 21

22 New Projects (Batch-I) Current Status PPAs signed with selected Solar Power Developers in January,2011- State 28 nos. Solar PV for 140 MW; and 07 nos. of Solar Thermal for 470 MW Power projects. Solar PV (MW) Solar Thermal (MW) Total (MW) Rajasthan Uttar Pradesh 5 5 Maharashtra 5 5 Gujarat Andhra Pradesh Karnataka 5 5 Tamil Nadu 5 5 Orissa Total /5/2012

23 New Projects Corresponding Power Sale Agreements (PSAs) were also signed with Buying State Utilities/Discoms of Andhra Pradesh, Karnataka, West Bengal, Rajasthan, Orissa, Punjab, Uttar Pradesh, Chhattisgarh, Maharashtra, Assam, Tamil Nadu and DVC. Financial Closure achieved by Solar Power Developers in July, /5/2012

24 Commissioning status of the Solar PV Projects (Batch-I) State Solar PV Capacity to be commissioned as per PPA (MW) Solar PV Capacity actually commissioned* (MW) Balance capacity to be commissioned (MW) Rajasthan Uttar Pradesh Maharashtra 5 5 Andhra Pradesh Karnataka Tamil Nadu Orissa Total * Based on confirmation received from SNAs and Committee 11/5/2012

25 Commissioning Status New Projects( Batch-I) CAPACITY (MW) UPTO DUE DATE DELAY OF 1 MTH DELAY OF 2 MTHS DELAY OF 3 MTHS DELAY > 3 MTHS NO. OF SPV PROJECTS CAPACITY(MW) TOTAL 25

26 The status of allocation of solar capacity under JNNSM Solar Projects New Projects (Batch-I) 26 Region/State Solar Capacity setup/being set-up (MW) Allocation to State Discoms (MW) Capacity being supplied (MW) Northern Region: Rajasthan Uttar Pradesh Punjab 35 Sub-Total (NR) Western Region: Maharashtra 5 5 Chhattisgarh 20 Sub-Total (WR) Southern Region: Andhra Pradesh Karnataka Tamil Nadu Sub-Total (SR) Eastern Region: Orissa West Bengal 50 DVC 20 Sub-Total (ER) NER-Assam 5 Total (All Regions) /5/2012

27 Second Batch of Phase I Guidelines for Second Batch for 350 MW Solar PV issued by MNRE on PPAs signed with 21 selected bidders for 27 Solar PV Projects (340 MW) by 27 th january,2012. State No. of Projects Project Capacity (MW) Rajasthan Solar PV (MW) Total (Rajasthan) Maharashtra Andhra Pradesh Total Commissioning 13 months from the date of signing of PPA i.e. February, /5/2012

28 Details of Bundled Rate for Projects under JNNSM (Phase-I) JNNSM Scheme Migration Projects Batch-I Projects Batch-II Projects Technology Type CERC Tariff (Rs./kwh) Discounted Tariff (Rs./kwh) Minimum Maximum Wtd. Avg. Tariff (Rs./kwh) Bundled Rate (Rs./kwh) Range between Solar PV Solar Thermal Solar Power Solar PV Solar Thermal Solar Power Solar PV /5/2012

29 Capital Cost vs Feed-in-Tariff for Solar PV Project (Rs./kWh) Solar PV 18,00 16,00 14, Capital Cost 12,00 10,00 8, Tariff 6,00 6 Period Capital Cost (Rs. Crore / MW Tariff (Rs./kWh) ,00 2,00 0, Capital Cost (Rs.Crore/MW Tariff (Rs./kWh) 29

30 Capital Cost vs Feed-in-Tariff for Solar Thermal Project (Rs./kWh) Solar Thermal 15, ,00 16 Capital Cost 14,50 14,00 13, Tariff 13,00 6 Period Capital Cost (Rs.Crore /MW Tariff (Rs./kWh) ,50 12,00 11, Capital Cost (Rs.Crore/MW Tariff (Rs./kWh) 30

31 Feed-in-Tariff vs Discounted Tariff for Solar PV Project (Rs./kWh) , , ,12 8,77 10, Feed-in-Tariff (Rs./kWh) Discounted Tariff (Rs./kWh)

32 Feed-in-Tariff vs Discounted Tariff for Solar Thermal Project (Rs./kWh) ,31 15, ,48 12, Feed-in-Tariff (Rs./kWh) Discounted Tariff (Rs./kWh)

33 30 Technology used by SPDs Migration Projects Solar PV Rajasthan Maharashtra Punjab Crystalline Silicon Thin Film

34 Technology used by SPDs New Projects-Batch-I Solar PV Orissa Tamil Nadu Karnataka Andhra Pradesh Maharashtra Uttar Pradesh Rajasthan 34 Crystalline Silicon Thin Film

35 Technology used by SPDs New Projects-Batch-I Solar Thermal Rajasthan Andhra Pradesh Gujarat Parabolic Trough Linear Fresnel

36 Performance of Solar PV Projects ( ) 25,00% 21,43% 21,99% 20,00% 15,00% 12,65% 12,25% 10,00% Min CUF(%) Max CUF(%) Solar Projects Migration Projects 12.65% 21.43% New Projects(Batch-I) 12.25% 21.99% 5,00% 0,00% Migration Projects New Projects(Batch-I) 36 Min CUF(%) Max CUF(%)

37 Performance of Solar PV Projects( ) 35,00% 30,00% 25,00% 20,00% 15,00% 25,39% 28,74% 17,48% 16,77% 10,00% 5,00% 0,00% 7,98% 1,40% Migration Projects New Projects(Batch-I) Min CUF(%) Max CUF(%) Avg. CUF(%) 37 Solar Projects Min CUF(%) Max CUF(%) Avg. CUF(%) Migration Projects 7.98% 25.39% 17.48% New Projects(Batch-I) 1.40% 28.74% 16.77%

38 38 Thank You