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World Institute of Sustainable Energy07 February 2009, GERC, Ahmedabad

Overview of RENEWABLES & SOLAR TECHNOLOGIES

2RENEWABLES: THE BIG BUSINESS OPPORTUNITY

Peak oil, price volatility of fossil fuels, projected depletion

Renewables changing from non-conventional to becoming mainstream

Reducing prices, Low Risk and Assured Returns for renewables, will be cost competitive with conventional power in near future

All large MNCs have entered or are entering renewables sector

Wind Power – CAGR ~ 25%

Solar Power – CAGR ~ 30-40%

Investment in renewables in 2007 was $100 billion (including corporate take overs)

Increasing venture capital flow into the sector

Maximum global research funding flowing to renewables

Renewables is and will be even bigger business in the future

3RENEWABLES – GLOBAL SCENARIO

(Figures exclude large hydropower, which itself was 15 % of global power generation)

Renewables represent 5 % of global power capacity 3.4 % of global power generation.

*$71 Billion is investment in power generation. Total R.E. Investments add upto $100 billion

*

4RENEWABLES IN INDIA

Estimated medium-term (2032) potential and cumulative achievements as on 31-09.2008.

No. Sources/SystemsEstimated

Potential (MW)Cumulative

Achievements (MW)

1 Biomass Power (Agro residues & Plantations) 61,000 656

2 Wind Power 100000 * 9521

3 Small Hydro Power (up to 25 MW) 15,000 2290

4 Cogeneration (bagasse) 5,000 993

5 Waste to Energy 2700 55

6 Solar Thermal Power (CSP) 200000** Nil

7 Solar PV and CPV 200000** 2.12

Total 5,83,700 13,450

* Industry estimate** Assuming only 4% of Indian desert area of ~ 2,00,000 sq. km (Guj, Raj)

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6WIND POWER LEADS THE RENEWABLE REVOLUTION IN INDIA

Wind Power Mainstay of Renewables in India

Mature Market & Technology, various project developers in India

~9645 MW installed capacity in India as on Dec. 08 : 5th Largest in the world, Third largest annual market after USA & China (1800 MW in 2008)

Large untapped potential in India ~ 65,000 – 100,000 MW

Technologies: Synchronous and Asynchronous Generators (with and without gears), New hybrid technology to be introduced

Turbine unit sizes: 500 kW to 1.65 MW, may go up to 2.0 MW in near future

Leading States: Tamil Nadu – 4200 MW, Maharashtra – 1800 MW, Gujarat 1400 MW

Costs ~ Rs 6-6.5 Cr / MW subject to project size, location, technology

7TARIFF / RPS/ GRID ISSUES

Project costs were going up due to rise in material costs, likely to come down because of recession, reduced demand

Coal, Steel and other metal prices increased substantially during last two years ( > 15 % increase)

Inflation touching 12 % , recently dropped to 5 to 6 %

Interest rates going up fast touching to 12-13 %

Project viability important, Tariff revision was must

Conventional power projects costs also increased during last 2-3 years

Grid expansion through proper planning is the key for future capacity addition

Global studies shows, NO TECHNICAL LIMITS for penetration, 100% renewable grid possible

Forecasting services available, Need to be adopted in India

BOOK: RENEWABLE ELECTRICITY AND THE GRID (2007), Earthscan publications

Higher RPS % must be considered

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9TYPES OF SOLAR POWER

Solar Thermal Power Generation

Concentrating Type ( CSP)

- Line Focusing system - Parabolic Trough Systems

- Fresnel Trough Collector Systems

- Point Focusing - Dish Stirling Systems / Concentrating Dish

- Solar Tower Plants using central Receiver System

Non- concentrating Type - Solar Updraft Tower Power Plants – Solar Chimney

- Solar Pond Power Plants

10A BRIEF LOOK AT CSP AND CPV

Two emerging breakthrough solar technologies

Solar thermal electric power generation (CSP) Total – 430 MW in operation

- Tower (11 MW in Operation in Spain) – 03%

- Trough (419 MW in Operation in USA)- 97%

- Dish (Centralized and Stand Alone)- Linear Fresnel (~ few MW under construction)- 11000 MW under construction or planned, globally

Solar Photovoltaics- Conventional Silicon based (Crystalline and thin film)- Concentrating PV (CPV): The latest to emerge on the scene

11CONCENTRATING SOLAR THERMAL POWER (CSP)

Has the possibility of supplying base and peak load due to storage option Lower costs than PV/CPV Storage options greatly increase Plant Load Factor and dispatchable

electricity

Over 11,000 MW CSP in development throughout the world; Bulk of Projects under development in USA / Europe Feed-in Tariffs announced in few countries

- Eg: Spain - 0.27 Euro / kWh for 25 years with adjustment for inflation. Re-look at Tariff once 500 MW installed.

In India, over 500 MW Thermal Power project proposals with MNRE under the new incentive scheme.

Max Rs 10/kWh incentive under MNRE policy About Rs 13/kWh as tariff including SERC tariff

12CSP - TOWER TECHNOLOGY

PS 10 , Seville, Spain

13CSP - TROUGH TECHNOLOGY, PROJECTS IN USA, SPAIN

14CSP - DISH TECHNOLOGY (CENTRALIZED AND STAND ALONE)

Dish-Sterling Engine

15CSP - LINEAR FRESNEL TECHNOLOGY, ALMERIA AND AUSTRALIA

1611,000 MW OF CSP CURRENTLY UNDER DEVELOPMENT

USA, Mexico, Spain, Italy, Portugal, France, Israel, Egypt, Algeria, Greece, Morocco, SA, China, Australia, Iran, UAE

Conservative projection of global installation targets: 5000 MW by 2015 and 40000 MW by 2020 Already crossing the target of 5000 MW set for 2015

17PROJECTED COST REDUCTION IN CSP

CSP Electricity Cost as a Function of Cumulative Installed Capacity

Huge electricity costs reduction potential in immediate future

18MNRE / SERC THERMAL – INCENTIVE/TARIFF

Particulars

Solar Thermal Depreciation benefit under IT Act 1961

Incentive for Plant commissioned up to Dec 2009

Incentive for Plant commissioned after Dec 2009

MNRE Incentives Max Rs 10 / kWh Max Rs 9.50 / kWh Not Allowed

RERC Rs 13.78 / kWh Rs 13.18 / kWh Not Allowed

HERC Not Declared Not Declared Not Allowed

WBERC Not Declared Not Declared Not Allowed

PSERC Rs. 7.00/ KWh Rs. 7.00/ KWh Allowed

Gujarat Up to 31.12.2009 Rs.10.00/ Kwh (1-12 yrs)

Rs. 3.00/Kwh (13-25 yrs)Rs.9.00/ Kwh ( 1-12 yrs)Rs. 3.00/ Kwh (13-25 yrs)

?

Maharashtra 31.12.09 Upto 31.03.10

Rs. 13.78 / kWh ( MNRE)Rs. 13.60 ( Non MNRE, 50MW)

Rs. 13.18 / KWh

Uttar Pradesh 31.12.11

Rs. 13.00/Kwh ( MNRE) Rs.13.00 ( Non MNRE)

MNRE has a notional cap of Rs 13/kWh as the maximum combined revenue inclusive of tariff and incentive

19SOLAR POWER – PV TECHNOLGY – Grid connected

20SOALR CELL TECHNOLOGIES

21CONCENTRATING PV (CPV)

CPV – Latest Emerging PV technology

Uses Space quality solar cell with high efficiency and optical lenses for concentration ( High Concentration Ratios: 200-1000)

Very High Efficiency ( 25-30%), higher energy output compared to PV (~ 12 -15%)

3 MW sanctioned in Puertallano, Spain by ISFOC. Partly commissioned and under construction. First CPV project in the world.

More than 20 MWp production line in Pipe Line

Also holds promise for cost reductions in the very near future.

(Disadvantage is: no possibility of storage)

Optics for concentrating Sunlight, HCPV

22PV- SILICON (CONVENTIONAL) NELLIS SOLAR PLANT 14 MW, NEVADA

23CONCENTRATING PV (LOWCPV AND HIGHCPV)

Seville, 1.2 MW LCPV Plant

HCPV Testing

24COST REDUCTION LEARNING CURVE AND POSSIBILITIES IN CPV

Energy Costs in AUS $/MWh

25WORLD’S FIRST CPV INSTALLATIONS, PUERTALLANO, SPAIN

26MNRE / SERC PV – INCENTIVE/TARIFF

Particulars

Solar PV Depreciation benefit under IT Act 1961

Incentive for Plant commissioned up to Dec 2009

Incentive for Plant commissioned after Dec 2009

MNRE Incentives

Max Rs 12 / kWh Max Rs 11.40 / kWh Not Allowed

RERC Rs 15.78 / kWh Rs 15.18 / kWh Not Allowed

HERC Rs 15.96 / kWh Rs 15.16 / kWh Not Allowed

WBERC Equivalent to Highest Tariffoffered from among the various

RE in WB(Rs 5/kWh – Biogas Power)

Equivalent to Highest Tariff offered from

among the various RE inWB with 5% reduction

Not Allowed

WBERC – non MNRE

Rs 11/kWh Rs 10 / kWh Allowed

PSERC Rs. 7.00/ Kwh Rs. 7.00/Kwh Allowed

TNERC Rs. 15.15/kwh Rs.14.65 / kWh Not allowed

MNRE has a notional cap of Rs 15/kWh as the maximum combined revenue inclusive of tariff and incentive

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