Observer Research Foundation Mumbai Ideas and Action for a Better India

Mumbai Solar Mission is a conceptual proposal to the

government to undertake an ambitious effort, based on

Public-Private-People partnership, to enable large scale

use of solar energy in India’s commercial capital.

By Aditya Khandekar & Rishi Aggarwal

Should cities lead India’s renewable energy quest? YES!

Should Mumbai set an example for other Indian cities? YES!!

We are like tenant farmers chopping down the fence

around our house for fuel when we should be using

Nature’s inexhaustible sources of energy – sun, wind and

tide.

I’d put my money on the sun and solar energy. What a

source of power! I hope we don’t have to wait until oil

and coal run out before we tackle that.

THOMAS ALVA EDISON, 1931

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WHY MUMBAI SOLAR

MISSION?

A Mumbai that thinks small isn’t Mumbai at all

It’s a crime to aim small. This is what India’s former President Dr. A.P.J. Abdul Kalam

keeps telling young Indians.

Is this exhortation valid in the context of India’s energy security plans? Of course, it is. Our

country must aim big at achieving maximum possible levels of energy security, without

lowering our targets for economic growth and social development. At the same time, we

must also aim big at maximising the share of energy from renewable sources.

Neither of these two goals is easily achievable in the short term. Nevertheless, India simply

does not have the luxury of setting unambitious goals if it aspires to become a developed

nation in an all-round sense of the word. As a large and rapidly growing economy, India also

has an obligation to the world community to make its due contribution to reduction of

Green House Gas (GHG) emissions to save our planet from the ill effects of climate change.

India certainly showed ambition when the UPA Government launched the Jawaharlal Nehru

National Solar Mission (JNNSM) on 11th January, 2010. The Mission has set the big target of

deploying 20,000 MW of grid-connected solar power by 2022 and reducing the cost of solar

power generation in the country through a long term policy. Its objective is to make India a

global leader in solar energy.

JNNSM has surely given a boost to the coordinated efforts of the central government, state

governments and non-governmental players to move towards this target. However, these

efforts have not yet reached the tipping point, which is necessary for the Mission to reach its

milestones in a timely manner.

SUDHEENDRA KULKARNI

Chairman, ORF Mumbai

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What can give JNNSM the acceleration it needs? Among other things, the Mission needs

wholehearted participation of Indian cities. This is especially so since India is urbanising

rapidly and cities, anyway, are far bigger consumers of energy than rural areas.

Keeping this in mind, the Ministry of New and Renewable Energy (MNRE) has launched the

‘Solar Cities Initiative’. It says: “Several Indian cities and towns are experiencing rapid

growth in the peak electricity demand. The local governments and the electricity utilities are

finding it difficult to cope with this rapid rise in demand and as a result most of the

cities/towns are facing electricity shortages. In this context, the ‘Development of Solar Cities’

programme is designed to support/encourage Urban Local Bodies to prepare a Road Map to

guide their cities in becoming ‘renewable energy cities’ or ‘solar cities’.”

The Ministry has already initiated various programmes in the Urban Sector for promoting

solar water heating systems in homes, hotels, hostels, hospitals and industry; deployment of

Solar Photo Voltaic (SPV) systems/devices in urban areas for demonstration and awareness

creation; establishment of ‘Akshaya Urja Shops’; design of Solar Buildings and promoting

urban and industrial waste/ biomass to energy projects. The Solar City programme aims to

consolidate all the efforts of the Ministry in the Urban Sector and address the energy

problem of the urban areas in a holistic manner.

According to MNRE, the Solar City is one that aims at “minimum 10% reduction in projected

demand of conventional energy at the end of five years, through a combination of enhancing

supply from renewable energy sources in the city and energy efficiency measures. The basic

aim is to motivate the local Governments for adopting renewable energy technologies and

energy efficiency measures. In a Solar City all types of renewable energy based projects like

solar, wind, biomass, small hydro, waste to energy etc., may be installed along with possible

energy efficiency measures depending on the need and resource availability in the city.”

So far, 54 cities have been identified for developing as Solar Cities. Surprisingly, Mumbai is

not one of them. When we came to know about this omission, we at the Observer Research

Foundation Mumbai felt that we should proactively propose, to the central, state and local

governments, that our city should launch its own initiative called the MUMBAI SOLAR

MISSION.

Mumbai has been a proud pioneer in many areas of India’s development. It is the country’s

business and finance capital. Ambition is in the very DNA of Mumbai. Therefore, we believe

that it must take the lead in the government’s Solar Cities initiative.

Policy support needed for Mumbai to produce 10% of its power needs from solar

As our concept paper describes, Mumbai has taken some baby steps in urban solar

installations. Tata Power has already demonstrated the benefits of rooftop solar power

generation at its headquarters. The Indian Institute of Technology (IIT) Bombay, supported

by MNRE, has set up 1 MW rooftop solar power project. On a much smaller scale, Triratna

Prerana Mandal, a reputed community-based organisation in a slum in Santacruz (West) has

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installed a solar facility on the roof of a community toilet. ORF Mumbai is pleased to have

supported this project.

But these are baby steps. What Mumbai needs to take are giant strides.

In order to qualify as a Solar City, Mumbai has to generate at least 10% of its power

requirement from solar and other renewable energy sources ─ that is about 300 MW, given

that the city consumes about 3,000 MW of electricity. At present, its rooftop solar power

generation is less than 0.1 per cent.

Obviously, it is going to be a steep climb. However, ‘steep climb’ is never synonymous with

‘impossible to climb’ for those who are determined to reach the summit. Hence, here are a

few suggestions for the consideration of policy-makers.

1) All central, state and local government buildings and utilities must mandatorily install

rooftop solar facilities. To begin with, the newly renovated Mantralaya building, the seat

of power of the Government of Maharashtra, must have solar panels on its rooftop.

2) All buildings with large roof areas should be incentivised to install rooftop solar facilities,

and also to supply surplus power to the grid.

3) All bulk users of conventional power ─ commercial and industrial units, residential

complexes, hotels, hospitals, billboards for advertising, etc. ─ must be mandated to

produce at least 10 per cent of their power consumption through solar. If they cannot

produce 10 per cent of their electricity needs in situ, they should be encouraged to

support solar installations of double the capacity in rural areas or in urban slums through

a transparent compensatory mechanism.

4) There should be attractive subsidies and incentives for slum dwellers to install rooftop

solar panels to address their lighting and water-heating needs.

5) There should be a sustained mass campaign for the adoption of energy efficiency

practices, technologies and construction designs.

6) Today high-end users of electricity pay a much higher tariff than low-end users. This

policy of cross-subsidisation has created a lot of distortions. For example, cheap power

has led to misuse of water, another scarce natural resource. This is particularly hurting

the financial viability of state-run electricity generation and distribution companies.

Therefore, rationalisation of tariff is certainly called for, if JNNSM has to gain

momentum.

Nevertheless, this is not a big deterrent in the case of Mumbai, where most of the

electricity consumption is met by private power companies. Where state-run power

generation and distribution companies face losses because of rooftop solar installations

by high-end users in urban areas, governments may compensate them to the extent of

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the shortfall in their revenue. In no case, however, should state-run power utilities be

allowed to come in the way of widest possible promotion of solar power generation.

In other words, if free or cheap power for farmers and poor sections of society is a political

issue, the time has come to make solar power and sustainable development in general

also a political issue. This is possible only by making the common people aware of both the

short-term and long-term benefits of renewable energy-based energy security for them

and for India as a whole.

The Observer Research Foundation Mumbai is deeply committed to the ideal of India’s

sustainable development. Maximisation of the renewable energy component in our

country’s energy basket is one of the key strategies to realise this ideal. As part of our work

in this area, we have published a research report titled ‘Solar Mini-Grids for Rural

Electrification: A Roadmap to 100% Energy Access for India@75’. It is authored by my

colleagues Shruti Mahajan-Deorah and Dr. Leena Chandran-Wadia.

This concept paper on the ‘Mumbai Solar Mission’ is our contribution to the debate and

action on the implementation of the ‘Solar Cities’ initiative by the Ministry of New and

Renewable Energy. Authored by Aditya Khandekar and Rishi Aggarwal, this document is our

proposal for the consideration of the central government, state government, city

government as well as other stakeholders who are committed to the sustainable

development mission in Mumbai. We would like a serious debate over this concept, leading

to the adoption of the ‘Mumbai Solar Mission’ as a Public-Private-People-Partnership

initiative.

We thank Shri Pranav Mehta, Chairman Solar Energy Federation of India, for his presentation

at ORF Mumbai, at which he pointed out that deployment of Rooftop Solar ought to have

begun on a large scale in Mumbai ‘yesterday’.

Obviously, what we have proposed in the ‘Mumbai Solar Mission’ is ambitious. It is meant to

make a real difference in the renewable energy landscape in our city. We cannot be content

with celebrating cosmetic initiatives producing nano-scale change. We must set an example

for the rest of urban India to emulate.

It’s time for Mumbai, the City of Dreams, to Dream Big and to Impact Big.

After all, a Mumbai that thinks small isn’t Mumbai at all.

We welcome critical feedback on this concept paper.

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Powering Mumbai using Solar Energy

Introduction

Electricity is integral to the functioning of cities and economic growth. Mumbai has historically been

blessed with one of the most stable electricity supply systems in the country. At 3000 MW, Mumbai

consumes a sizeable amount of electricity due to its burgeoning population. At a time when energy

security, coal imports and curbing greenhouse gas emissions are topics of concern, it is important for

every city in the country to start including renewable sources of energy into the traditional mix of

sources which supply electricity.

Mumbai has abundant sunshine but the share of electricity from rooftop solar is miniscule. In light of

the concerns already highlighted, it is disconcerting that Mumbai does not show any widespread

interest and institutional framework in the adoption of solar energy in its electricity consumption

mix.

In this concept paper, we focus on the feasibility of adopting solar photovoltaic in the form of solar

panels on rooftops of various types of buildings. We start with exploring whether in the first place

there is technical and financial feasibility and then go on to understand what will enable a scaling up.

Mumbai already has some success stories which provide the much needed empirical data for doing

analysis and drawing conclusions and we are borrowing from them for this note.

Most importantly it should be kept in mind that in order to insulate the city from power shortages

the rest of the state has had to face severe power cuts. Therefore, there is a need to push for local

energy generation so that the rest of the state can benefit from a more reliable power supply,

especially considering the citizens are in a much better financial position to pay for this

transformation as compared to residents of rural Maharashtra.

Figure 1: Power Consumption in Maharashtra

(Source: 18th electric Power Survey of Mega-Cities, 2013)

Total Power Consumption of

Maharashtra = 16417 MW

Total Power Consumption

of Maharashtra =

16,417 MW

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Maharashtra’s total energy requirement for 2011-12 was 1,41,382 million units (MU) while the

availability was just 1,17,722 MUs. The peak demand during the same period remained at 21,069

MW while the demand met was 16,417 MW. In the same time Mumbai’s total energy consumption

was 22,107 MU’s; almost 19% of the state’s total supply.

Energy scenario of the country

Figure 2: India’s Total Primary Energy Production (TPEP), Consumption (TPEC) (Source: Daniel et. Al. 2008)

In 2011 India’s primary energy consumption was 6.9 x 10 12 kWh rising from 2.7 x 10 12 kWh in 1993, a

two and a half times increase in a span of 18 years.

The Thermal Power Sector snapshot

Total Installed Capacity – over 200 GW as of 2012

75 GW more capacity is planned to be added in 12th Plan.

Coal has remained and is expected to remain the dominant fuel by far. With 74% of the 12th Plan

additions being based on coal, its share of the total generation portfolio is expected to be over

60% by the end of 2017.

Power sector is facing a major challenge due to shortage of both, coal and gas.

Problems due to Coal shortage

Coal is the dominant fuel in India’s power generation mix and coal shortage is a major threat to

India’s development story.

Domestic coal production has been stagnant for the last three years, at around 530 MT, with Coal

India failing to ramp up the production for meeting the increasing demand.

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With 75% capacity addition in 12th Plan being coal based, we are headed towards a shortfall of

more than 250 MT by 2017.

22 GW of generating capacity in 2011-12 was underutilised on account of coal shortages.

Coal shortage has forced the end consumer to switch to backup power which primarily uses

diesel. The per unit costs are 12 INR/KWh or more. This makes Indian industry very

uncompetitive in global markets. Diesel burning for power generation means extra diesel subsidy

burden on the government and causes forex outflow from India.

The total volume of seaborne traded thermal coal in 2011 was only 750 MT. If Indian imports

ramp up to 250 MT, it will result in a very tight coal market resulting in price spike and further

make power generation on imported coal unviable.

Coal shortage will also result in many developers defaulting on their debt, thus further stressing

banks and making financing for new power projects very difficult.

There was once a time when lack of available generation capacity was cited as the reason for

rampant load-shedding by the utility companies. However, now the reason for demand-supply

mismatch is the massive amount of red-tape which prevents the country from achieving maximum

utilisation of its resources.

Energy scenario of Mumbai

As mentioned earlier, Mumbai is the crown jewel in Maharashtra and has always been viewed in

isolation with respect to rest of the state as far as power is concerned. However it is imperative to

realise the potential of Maharashtra achieving self-sufficiency in power with bold initiatives like

Mumbai Solar Mission, which could go a long way in improving the power scenario in the rest of the

state. For example, if the consumption of the neighbouring cities is compared, it can be clearly seen

that Mumbai consumes much more energy, compared to Pune and Nagpur.

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Figure 3: Per Capita Power Consumption Source: 18th Electric Power Survey of Mega-Cities, 2013

When the graphs above are seen in combination with the per capita consumption, it can be seen that

while the total demand is much more than other cities, the per capita demand is lesser than Pune

and only slightly more than Nagpur. Therefore, if even a part of this individual demand is provided

for, using solar energy, the net generation will result in a sizable generation using solar. That is what

the Mumbai Solar Mission proposes: promote individual establishments to drive the push for solar

which will result in a multiplicative effect and help ramp up the adoption of solar in urban cities.

In the graph below, it can be seen that there is going to be an exponential rise in the demand for

power in Mumbai. This is indeed the right time to consider a Mumbai Solar Mission. A resource

(sunlight) which is abundantly available daily, but is wasted can be put to effective use, contributing

to Mumbai’s energy security and also to address environmental concerns.

Figure 4: Predicted Power Demand in Mumbai over the next decade. Source: 18th Electric Power Survey of Mega-Cities, 2013

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Solar Policy in India

With the launch of the Jawaharlal Nehru National Solar Mission in January 2010, India embarked on a

focused programme of large scale solar adoption. The mission was part of the efforts under the

National Action Plan for Climate Change and set a target of creating 20 GW of capacity by 2022. Most

of the capacity in this mission is to be created by setting up large grid-scale solar PV power plants.

The mission did not give either capacity targets or an enabling framework for large-scale adoption of

solar PV on the millions of rooftops in the country.

While the thrust for large scale solar power plants is justified, it overlooks the unique selling point of

solar technology: its ability to be used as a distributed source of generation. It is radically different

from a thermal power plant whose design does not make it conducive for distributed generation. It is

therefore important to be very ambitious about having millions of solar rooftops in the country,

generating electricity through solar PV. It needs no reiteration that the quality and quantity of

sunshine that India receives is far superior to that in other countries like Germany, which have

managed to do far more than India. It stands to reason that India should aim for another 20 GW (if

not more) of solar power from rooftops alone.

In the urban context, one can at regular frequency read in the papers about the concept of solar

cities, but in Mumbai that has never been a topic of discussion. Supply of reliable electricity at all

demand levels has never provided supply shock as a reason for looking at renewable energy. Thus, if

solar rooftop has to become a significant component of Mumbai’s electricity mix then the reasons

will clearly have to be in the nature of financial advantages for adopting solar energy. Mumbai is still

not a city with an interest in sustainability and hence, environmental reasons driving adoption will

not happen in the current scenario.

WHAT IS A SOLAR CITY?

The Solar City aims at minimum 10% reduction in projected demand of conventional energy

at the end of five years, through a combination of enhancing supply from renewable energy

sources in the city and energy efficiency measures. The basic aim is to motivate the local

governments for adopting renewable energy technologies and energy efficiency measures.

In a Solar City, all types of renewable energy based projects like solar, wind, biomass, small

hydro, waste to energy etc. may be installed along-with possible energy efficiency measures

depending on the need and resource availability in the city.

A total of 60 cities/towns are proposed to be supported for development as Solar Cities

during the 11th Plan period. At least one city in each state, to a maximum of five cities in a

state may be supported by the Ministry.

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Developments in the solar world

The past decade has seen rapid and tectonic changes in the world of renewable energy and

especially solar. Till as little as four years ago, questions were being raised about the financial

viability of power generated from solar against conventional power derived from thermal and hydro.

But the past two years have seen a rapid fall in the price of solar panels – the key input to generating

solar energy – and rising cost of conventional power, thus narrowing the gap to the extent that in

some tariff slabs like commercial and industrial, the cost of power generated from solar is equivalent

to that from conventional sources. If trends continue, solar power is heading towards costing

cheaper than conventional power.

Figure 5: Fall in Solar energy prices per watt Source: Bloomberg New Energy Finance

There has been great interest in grid-connected utility scale solar plants in India since the launch of

the National Solar Mission with the Maharashtra state utility company, MAHAGENCO recently

commissioning a 125MWp solar plant in the Dhule district of Maharashtra. While such efforts will go

a long way in augmenting India’s bulk generation capacity in an eco-friendly manner, there is no

reason why millions of units of potential power should be left untapped. Therefore there is a need of

a separate comprehensive strategy for promoting rooftop solar in a rapidly urbanising country like

India.

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Global best practices

Many cities in the world have embarked upon major solar energy initiatives. Here are a few

examples.

As part of the International Solar Cities Initiative (ISCI), Daegu, the third largest city in South Korea,

plans to increase the consumption of clean energy to 25 per cent by 2025. It is set to become a

“smart solar city” through the development of green energy projects, energy efficiency, clustering

renewable energy industries and training eco-friendly citizens. The city has built an array of

renewable energy facilities including the world's largest hydrogen fuel cell power plant (11.2MW)

and Korea's largest tower-type solar power plant (200kw). The target power generation volume from

renewable sources is 1 million kilowatts by 2025, equivalent to electric power generated by one

nuclear power plant.

Recently, London has built a solar-powered bridge on the River Thames. The solar energy company

Solarcentury has installed 4,400 photovoltaic panels in stages to cover the roof of the Blackfriars

station. It provides half the electricity needs of the Blackfriars station. Furthermore, it reduces the

station's carbon dioxide emissions by 511 tonnes per year.

Solar City Daegu, South Korea

Solar Bridge across the Thames in London

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Rio de Janeiro, which is hosting the Olympic Games in 2016, is planning to build an iconic 105-metre

tall solar tower and urban waterfall that will provide power to the city. Designed by RAFAA, the world

famous Swiss architectural firm, the tower will function as a solar power generator during the day,

and will run as a hydropower generator and power storage unit at night. The Olympics is certainly

the ideal venue to project such innovations in green energy.

Kaohsiung Stadium in Taiwan is an example of how stadiums, which are always big energy users, can

adopt sustainable architecture. This spectacular, dragon-shaped structure generates 100 per cent of

its electricity from 8,844 solar panels lining its exterior. This largest solar-powered stadium in the

world holds 55,000 spectators. Since games are not played inside the stadium every day, the stadium

becomes a power plant during its "off" days, capable of generating 1.14 gigawatt hours of electricity

every year, enough to supply power to 80% of the surrounding neighbourhood!

Adelaide in Australia became a Solar City in 2013. The project has helped Critical Peak Pricing

participants reduce their electricity usage by an average of 14 per cent during the peak period. It has

also had an effect on Time of Use; participants shifted 7 per cent of their consumption from peak to

off-peak periods. Recipients saved around $8,050,000 on their energy bills and avoided the release

30,900 tonnes of greenhouse gas emissions. Businesses saved an estimated 6,808,000 kWh.

Freiburg Solar City in Germany is one of those rare cities that produce more green and clean energy

than they consume. A city of 220,000 people, it was an early stronghold of the Green Movement in

the 1970s. Solar energy panels can be seen on almost every public or private building in Freiburg. Its

150,000 m2 of photovoltaic cells produce over 10 million kWh/year. The economic benefits are

especially noticeable in the sectors of manufacturing, research and education, and tourism. Overall

the “environmental economy” employs nearly 10,000 people in 1,500 businesses, generating 500

million euros per year.

Solar-powered stadium in Taiwan

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In Mumbai itself, an iconic new solar-powered structure is proposed to be built in Bandra-Kurla

Complex. When completed, the ‘Cybertecture Egg’ will become a new architectural jewel in the city.

Designed by James Law Cybertecture International, the 32,000 sq. m building will be self-sustainable

and environment friendly as it will make use of solar-photovoltaic panels and wind turbines on the

roof.

‘Cybertecture Egg’, BKC, Mumbai

Freiburg Solar City in Germany

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Some roofs in Mumbai which have shown the way

Tata Power Company, Carnac Bunder, Mumbai

It is with this idea in mind that the Tata Power Company (TPC) installed a 60.48 kWp Rooftop Solar

Power Project at Tata Power’s Carnac Receiving Station, in 2009. It was the first attempt by a big

industry house to develop a

demonstration project

involving grid-connected solar

energy in order to better

understand the possibilities in

this field. The company

wanted to establish a proof of

concept in the field of clean

energy by showing that with a

clear focus and proper

execution; it is possible to

develop an economically

viable solar installation even in

urban areas like Mumbai.

The project commissioned in 2009 consists of 336 Photovoltaic (PV) panels on top of their Carnac

Bunder office. From the table given below it can be seen that the installation has reaped massive

benefits to the company purely in terms of the economics of the system.

Table 1 Project Specifications

Particulars Remark

Technology Photovoltaic Panels

Plant Rating 60.48 KWp

Total Installation area 549 m2

Total number of Panels 336

Area of Each Panel 1.5 m x 0.79 m

Area required/KW 9.02 m2

Area/KW 97.09 square feet

Total Annual Output of TPC Installation 74529 kWh

Average monthly production 6125.67 kWh

Purpose Handling the lighting load of the Building

Total System Cost (2009 prices) Rs. 92,00,000

Cost of the Plant (2013 prices) Rs. 55,00,000

Cost per KW (2009) Rs. 1,51,216.31

Cost per KW (2013) Rs. 90,401.05

Total Annual Savings Rs. 5,70,617.26

Total Payback Time 9.64 Years

An aerial view of Tata Power’s rooftop solar installation.

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Triratna Prerana Mandal, Mumbai

Triratna Prerana Mandal (TPM) is a Community Based Organisation that has pioneered the use of

solar energy. It has deployed solar PV

(Photovoltaic) panels to provide

lighting to a pay-and-use toilet block

being run by them as well as to their

offices. In order to minimise the

capacity and expense of the PV panels,

they decided to minimise lighting costs

by installing energy-efficient bulbs.

TPM’s project has been executed with

the support of the Department of

Environment, Government of

Maharashtra and ORF Mumbai.

They have also installed a solar water heating system for their showers. This is a huge boon to their

users. Previously they did not supply hot water in their showers due to the prohibitively high costs

associated with electric water

heaters. Motivated by

environmental considerations as

well as financial ones, TPM had

already switched over the water

supply to their toilet block from the city’s supply to a local rain-fed bore-well.

During their efforts at organising an awareness programme on ‘Changes in the environment and its

effects on man’s standard of living’, which they conducted jointly with the United Nations University,

Tokyo, they realised the value of awareness at the grass-roots level of environmental issues. By

providing a proof-of-concept with their two installations, they hope to further disseminate

knowledge of the benefits of using solar energy based systems to other organisations like themselves

as well as to the residents of the urban slums around

them.

TPM has provided a quickly scalable model for the use

of solar technology for public sanitation in

underdeveloped urban areas. The unmitigated

success of this project yields compelling financial

arguments for this model. Extrapolating the costs over

the lifetime of the solar systems shows this model to

be even cheaper than ones incorporating traditional

grid power. This, in addition to the benefits of using a

clean and renewable form of energy.

Inspired by this, TPM has taken on the role of being a

flag bearer of using renewable technologies to

improve the lives of the urban poor. Already, they

have initiated plans to set up a bio-fuel facility in their

neighbourhood. Typically forward-looking, the

Recognition/awards received by

Triratna Prerana Mandal

1. Urban Age Award, Deutsche Bank,

Germany.

2. Sant Gadge Maharaj Clean-Up award for

the Best CBO in Mumbai, MCGM.

3. Subsidy from government of Maharashtra

for solar installation project.

4. Financial Help from SEPCO-III, a Chinese

power company based in Mumbai, as part

of their CSR initiatives, in 2011.

5. Best community toilet block in Mumbai

award from Clean India Journal in 2013.

TPM’s rooftop solar installation

Electricity saved through the

project from Dec 2011 to Mar 2012

Money saved through the project

from Dec 2011 to Mar 2012

1,504 units Rs 12,067.13

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organisation is already looking ahead to widespread application of their model by working with

ENVIS to disseminate their story in the hopes of inspiring others. They are also taking concrete steps

to propagate this model beyond their immediate surroundings, and plan to build a public toilet using

solar technology in association with the Rotary Club of Bombay West, Juhu.

Indian Institute of Technology, Bombay

IIT-Bombay was supported by the Ministry of New and Renewable Energy (MNRE), for a 1 MW

rooftop solar project within the IIT premises. The lead institute for this project is the National

Institute for Photovoltaic Research and Education (NCPRE). The average peak demand of IITB is 3

MW with the annual peak which occurs in summers being 5MW. The average monthly electricity bill

of the institute is Rs. 2.25 crore with the electricity tariff for the academic buildings being Rs. 10 /

unit. While the project is scheduled for completion early next year, the existing system has already

reduced the bills substantially so much so that there is now a plan in place to install another 2MW of

rooftop solar within the premises in the next two years.

IIT-B has set up the project on the rooftops of its 16 buildings. The plant will occupy a 12,000 m2 area

spread over the rooftops of 16 academic buildings. The energy generated by the solar photovoltaic

plant will be up to 25% of the total power requirement of the 16 buildings.

Table 2: Project Specifications

Particulars Remark

Technology Photovoltaic Panels

Plant Rating 1 MW

Average cost of solar power Rs. 5.5 / unit

Purpose Reducing the cost of electricity within the campus

Total System Cost 8.4 crores with a 5 year maintenance period

Estimated savings 1.5 crores / month

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What we know

1. As of 2013, solar energy from setting up rooftop photovoltaic cells is a financially viable source of

electricity when compared to the current industrial and commercial tariffs of grid connected

electricity.

2. Mumbai has high quality solar irradiation through a very large part of the year, providing for the

possibility of significant electricity production (compared to even Munich, as seen in the

following table).

Table 3: Comparison between Mumbai and Munich

Mumbai Munich

Average number of sun days 300 72

Irradiation per Square metre 5.83 kWh/ m2 3.13 kWh/ m2

Therefore, one can easily gauge the significant advantage Mumbai enjoys over the southernmost

German city of Munich which is a major adopter of large scale solar farms.

3. There is significant availability of rooftops in Mumbai.

Why net-metering is important

One key policy feature, which will increase the adoption of

rooftop solar in Mumbai, is an enabling net-metering policy. Net-

metering will provide valuable choice to potential adopters of

roof top photo voltaic, by allowing them to feed the electricity

generated into the grid and get credits for the same.

Today a person can technically feed power into the grid but

cannot be compensated for the power he or she contributes to

the grid. In a net-metering enabled scenario, the distribution

company will provide its consumer a bill which would display the

amount of power consumed and the amount of power

contributed to the grid by way of generation from the rooftop

solar.

The final bill will be the net power consumed, after offsetting the

power supplied. The challenging part to be resolved for net-

metering to be a reality is how the DISCOMs will look at having to

accept power generated in such a distributed manner and then

having to bear the financial cost of it. Will the tariff for such

consumers who are also contributing to the grid be slightly

higher, to compensate for the loss? In which case, the viability has

to be seen from the point of view of those who will install the

panels as well.

Net-metering will benefit considerably in a city like Mumbai which

sees a peak load during the daytime when offices are using power for air-conditioning and other

When a building is equipped

with a renewable energy

source and can supply the

energy generated back into

the grid, it is suitable for net-

metering. An inverter

converts the DC (direct

current) power coming from

the renewable energy source

into AC (alternating current)

power, which is then fed into

the grid.

The net consumption of the

consumer is decided after

deducting the number of

renewable energy units

supplied to the grid from the

number of units consumed

and is reflected in the

monthly bill from the utility.

WHAT IS

NET-METERING?

Page 18

needs. Peak generation from rooftop solar coincides with peak consumption times and hence

promises to be useful.

Phased adoption

Having all buildings to install solar photo-voltaic panels at one go, will be unrealistic and will not

happen. Therefore a phased adoption strategy will have to be designed which involves identifying

those buildings where the governance structure of the building and the tariff category under which it

is billed, allow for ease of installation and immediate financial viability. Rooftops where the following

criteria are met will provide greater chances for success:

1. The electricity tariff paid by the building is in the industrial or commercial category;

2. There is significant rooftop area to install the solar panels. In the first phase, it will be desirable

to go for larger rooftops, creating a capacity of at least 10KW;

3. Rooftops which are under a single management and where decision making is quick should be

identified and facilitated in the first phase.

Being the financial capital of the country, Mumbai is home to a huge number of commercial

buildings. Additionally, being the capital of Maharashtra, there are numerous government

establishments in the city. Due to this difference in the different buildings, not all will be in the same

position to utilise their rooftops for generating solar energy.

What we need to know

An initiative of this magnitude requires a leadership which will show the vision and path towards

large scale adoption of rooftop solar. The leadership could come from either a political entity of an

enlightened bureaucrat or even a determined advocacy group.

Currently, there is no barrier for self-consumption and therefore it is only the lack of awareness and

knowledge about rooftop solar which is delaying its large scale adoption, but this needs to be

investigated.

Our initial meetings with officials from various government agencies and utility companies have

proved that everybody has realised the value that solar rooftop can provide in reducing costs but

everybody is either on a wait-and-watch policy or they are carrying out small-scale experiments of

the same. However, we also realised that these are fragmented efforts and for tangible impact, there

is a need for a more organised and cohesive approach, involving the companies, policy-makers and

the end consumers in the planning and execution process.

Page 19

What should the role of a Mumbai solar policy be?

The Mumbai Solar Mission aims to facilitate creating a comprehensive framework to ensure large

scale adoption of rooftop solar in Mumbai. The aim is to collaborate with the Maharashtra Electricity

Regulatory Commission (MERC), utilities and the consumers with the aim of creating consensus on

the subject of net-metering and create an inclusive policy to ensure every citizen of Mumbai is able

to benefit from this initiative and create a showcase for the rest of the country to follow. The primary

targets of the Mumbai Solar Mission would be:

1. Develop a comprehensive policy framework for the implementation of rooftop solar in Mumbai;

2. Set up a single-window facilitation cell for anybody wishing to implement solar solutions in their

premises;

3. Provide high quality information on the complete gamut of options available for anybody wishing

to adopt solar.

At a time when India is emerging as a global economic power, with rapidly increasing energy needs,

adoption of renewable energy sources – especially solar energy – as the mainstay of our energy

security strategy is not an option, but an urgent imperative. This is also necessary for India to fulfil its

climate change obligations and move confidently along the path of low-carbon economic growth.

Since cities consume far more energy than rural areas, they must take the lead in adopting advanced

energy technologies in their path towards sustainable development. And Mumbai must be in the

forefront of urban India’s endeavours in this direction.

Hence, ORF Mumbai has proposed the launch of the MUMBAI SOLAR MISSION in a Public-Private-

People partnership mode.

Should cities lead India’s renewable energy quest? YES!

Should Mumbai set an example for other Indian cities? YES!!

Aditya Khandekar adityakhandekar@orfonline.org

Rishi Aggarwal rishiaggarwal@orfonline.org

Observer Research Foundation Mumbai

NKM International House, 5th floor,

Babubhai Chinai Marg, 178, Backbay Reclamation

Nariman Point

Mumbai – 400 020

Tel: 022 6131 3800

CONTACT

Page 20

References

1. http://www.mnre.gov.in/

2. 18th Electric Power Survey for Mega Cities, Central Electricity Authority, 2013

3. http://timesofindia.indiatimes.com/city/aurangabad/-Marathwada-Region-can-light-up-

entire-state/articleshow/28457276.cms

4. Joseph Daniel, Nandigana V. R. Vishal, Bensely Albert, and Iniyan Selvarsan Evaluation of

the Significant Renewable Energy Resources in India Using Analytical Hierarchy Process,

2008, Multiple Criteria Decision Making for sustainable Energy and transportation

systems, Proceedings of the 19th International Conference on Multiple Criteria Decision

Making, Aukland, New Zealand

5. The Tata Power Company, presentation, 4th Coal Summit, 2012

6. Bewildering Indian policies fuel needless coal imports, Reuters

http://in.reuters.com/article/2013/10/14/india-coal-tata-idINDEE99D00920131014

7. http://solarelectricityhandbook.com/solar-irradiance.html

8. IMD data 2012

9. http://www.climatedata.eu/climate.php?loc=gmxx0087&lang=en

10. http://timesofindia.indiatimes.com/city/mumbai/IIT-Bombay-goes-the-solar-

way/articleshow/29523331.cms

Think

Solar

Observer Research Foundation Mumbai Ideas and Action for a Better India

NKM International House, 5th Floor, 178, Backbay Reclamation,

Babubhai Chinai Marg, (Behind LIC – Yogakshema), Mumbai – 400020, India.

Tel: +91-22-61313800

Website: www.orfonline.org