Partnership to Advance Clean Energy - Deployment

(PACE-D) TA Program

Consultation Workshop: Accelerating Solar Energy Deployment in

Public Sector Undertakings

15th September, 2015

Presented by

Anurag Mishra, Senior Clean Energy Specialist, USAID/ India

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• U.S. –India bilateral program with the Ministry of Power and the Ministry of New and Renewable Energy

• A 5-Year, $19.5 million Technical Assistance Program

• Three components of the program:

• Energy Efficiency

• Renewable Energy and

• Cleaner Fossil

The PACE-D TA Program aims to facilitate deployment of clean energy technologies via

development of enabling environment, institutional capacity building and financing

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Key Achievements

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Key Energy Sector Priorities

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De

ce

ntr

aliz

ed G

en

era

tion

Utilit

y S

ca

le

Solar parks

25 GW

Entrepreneur

scheme

10 GW

Rooftop

solar

40 GW

Other Utility

scale solar

25 GW

Target Key Achievements

36 PSU’s

committed for

19 GW of RE

Solar Parks and Solar Rooftop Programs

Solar PV implementation across the globe has followed two routes – large scale

centralized generation or smaller scale distributed generation

Solar Rooftop

Mainstreaming EE in Corporate Loans

• Solar - fastest-growing generation technology globally - key contributor has been solar rooftop.

• Large markets like U.S. and Germany - added more capacity through rooftop

A number of drivers have been pushing the development of solar

rooftop projects across the globe

Country Solar PV Installed Capacity (GW) Share of Rooftop PV (%)

Germany ~38 ~60%

US ~20 ~40%

Japan ~24 ~35%

Australia ~4 ~80%

Solar Deployment areas/

benefits

Supply gap

reduction

Energy

security

T&D loss

reduction

Stimulate

investments

Optimal utilization

of infrastructure

Large ground mounted solar

projects √ √ √

Large commercial solar

rooftop projects √ √ √ √ √

Small household based

rooftops projects √ √ √ √ √

Solar rooftop space has seen a number of models emerge – basically based on ownership,

metering and types of rooftops

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• India’s solar rooftop market potential ~124 GW

• 13 States have notified Solar Policy’s supporting grid connected rooftop

systems

• 19 states/ UTs have notified regulations for net metering/feed-in-tariff

mechanisms

• 15% Government subsidy for non-commercial and non-industrial categories

• Accelerated depreciation benefits for industrial and commercial buildings

• Loans available under Priority Sector Lending

• Provision of bank loans as a part of home loan/ home improvement loan

• Loans for system aggregators from Indian Renewable Energy Development

Agency Limited (IREDA) at concessional interest rate (9.9% to 10.75% per

annum)

India’s solar rooftop journey has just started and the government is providing various

incentives

Policy and Regulation

Program Design

Process Design and Standardization

Financing

Capacity Building

Knowledge Creation

Programmatic approach is working on policy advisory, program and process

design, capacity building of key stakeholders and knowledge creation

Rajasthan and Karnataka

Indian Oil Corporation & IR

BESCOM & JVVNL

(IREDA & TATA Cleantech)

NISE/ BESCOM/ JVVNL

MNRE & GERMI

S. No. Name of PSU Capacity (MW) State Status

1 Coal India 1000 Different states

including AP and TG

Planned (Mou

with SECI)

2 NTPC 1000 AP, Rajasthan Planned

3 ONGC 1 Goa Planned

4 OIL 5 Rajasthan Commissioned

5 BHEL, PGCIL,

SECI, SSL, REIL,

SJVNL

4000 Rajasthan Planned

6 BHEL 500 Maharashtra Planned

7 SJVNL, Hindustan

Salt

5000 Gujarat Planned

8 Neyvelli Lignite

Corporation

20 N/A Implemented

Planned Solar Capacity by PSU

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PACE-D TA Program’s current engagement with Central PSUs

Supporting IOCL in Developing Rooftop Projects at Refineries

Assisted IOCL in receiving allocation of 5 MW capacity.

Site assessment surveys at Barauni, Panipat and Vadodara

refineries

Prepared pre-feasibility reports (PFRs)

Detailed site assessment feasibility report (DFR) for Panipat

2+ MW project.

Impact

Tenders floated for Barauni

(for 1 MW) and Vadodara (for 0.5 MW)

Panipat tenders underway

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PACE-D TA Program’s current engagement with Central PSUs

Supporting Indian Railways in Developing 50MW Solar Rooftop

Projects under RESCO model

Standard Request for Proposal (RfP) for RESCO based

implementation

Standard Power Purchase Agreement (PPA)

Assessment of selected sites to establish rooftop

feasibility and evaluating challenges in program

implementation

Detailed financial models to understand economics of

solar rooftop systems and estimate acceptable range of

tariffs

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Future engagement with IOCL and Indian Railways

Supporting IOCL in developing

and/or investing in large scale

solar projects

PACE-D TA Program is developing a

strategy with IOCL for development of

large scale solar investments with a

focus on :

• Defining target size for proposed

project(s)

• Prefeasibility assessments and

business model design

• Revenue structure/s

• Land acquisition and financial

modeling, etc.

IR has a target of increasing its RE

share to 10% of its total energy

consumption by 2022.

The PACE-D TA Program is assisting

the Indian Railways in:

• Developing a strategy for

deployment of solar over the next

five years

Supporting IR in developing a

strategy for deploying 1,000 MW

of solar

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Solar Rooftop Evaluation

Tool (SRET)

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SRET works by first evaluating broad eligibility, followed by techno-

commercial viability and finally risk assessment

The SRET uses three stages for establishing the viability of Solar Rooftop Projects:

1. Screens the eligibility of the rooftop project based on a qualitative checklist

2. Captures and evaluates the technical and commercial parameters of the project

3. Assess the risks and conditions proposed for lending

Step 1: Evaluating Eligibility Step 2: Techno-commercial

Assessment Step 3: Risk Assessment and

Financial Appraisal

• Objective: Establish broad

viability by assessing key

risks

• Qualitative checklist –

analysis critical

shortcomings which impact

viability

• Utilizes key technical,

commercial & regulatory

parameters

• Objective: Analyze techno-

commercial viability of

project

• Focus on demand analysis,

technical architecture &

risks, costing & financing

• Utilizes technical &

commercial inputs from

applicant & lenders

engineer

• Objective: Analyzes risks &

financiability of the project/s

with basis for a Go/ No Go

decision

• Maps key risks associated

with the project, evaluates

whether appropriate

mitigation strategies

adopted

Thank You

PACE-D Partners

Design and development of

innovative financing mechanisms Microfinance Partners

Capacity to design and implement

supportive policies and regulations

Implementation of techno-commercially

viable pilots