Solar Monthly Update Feb 2016 -...

SOLARMONTHLY UPDATE

Issue III February 2016Vol. I

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SECI TO RE-OPEN 50 MW DCR TENDER IN

MAHARASHTRA FOR BIDDING AMID

SUBDUED INTEREST IN ROUND 1

Bids were submitted last month for a 500 MW tender under the Viability Gap Funding (VGF) scheme to Solar Energy Corporation of India (SECI). In this tender, 50 MW was reserved for Domestic Content Requirement (DCR) category and remaining 450 MW was for open category. However, the bidder interest in this tender was highly subdued as compared to other recent tenders. Only one participant (Adani Power) bid for the 50 MW under DCR category. This tender for DCR category will now be re-opened for bidding.

The main reason is believed to be the downward revision in tariff for VGF based projects to a fixed `4.43/kWh from the earlier ̀ 5.43/kWh for the first year with an escalation of `0.05/kWh for next 20 years (equivalent to a Levellised tariff of INR 5.79/kWh).

INDIA TO TENDER PROJECTS OF ALMOST 4

GW IN FEBRUARY –MARCH 2016

During the remaining period of the current fiscal, as much as 3,790 MW of solar power generation capacity is expected to be added by March-end, taking total installed solar power generation capacity of the country to 9,038 MW from existing 5,248 MW, by FY 2016-17 according to a status report by MNRE. Of the 4,431MW that the Government is expected to tender in 60 days, starting 1 February, 3,156 MW will be tendered by the SECI, while 1,050 MW will be by NTPC, 150 by the Bihar Government and 75MW by the Central Government's PSU's.

Tendering for solar projects totalling a capacity of 15,177 MW have already been completed and a total capacity addition of 12,161 MW is expected during the FY2016-17.

INDIA APPROVES 33 SOLAR PARKS ACROSS 21

STATES WITH A TOTAL CAPACITY OF 19.9 GW

MNRE has now approved a total of 33 solar parks in 21 states with a total capacity of 19.9GW. This is an increase of six from the 27 solar parks that had been approved at the end of last year with an aggregate capacity of 18.4GW according to the Parliamentary Consultative Committee of the MNRE and Ministry of Power.

lSolar News Round Up

lSolar State Focus - Andhra Pradesh

lCompany Limelight - Welspun

Renewables

lForeign Investor Corner - India Budget

2016 : Solar Round-up

lTechnology Update - Grid Connected

Solar Storage Systems - Re-emerging

Trend

lSolar Tender Tracker -

January-March 2016

Inside this Issue:

INDIA'S SECI ANNOUNCES WORLD'S FIRST

SOLAR TENDER WITH ATTACHED BATTERY

STORAGE CLAUSE IN AP STATE

For the first time, solar storage will be part of a tender that state-run Solar Energy Corporation of India (SECI) has floated for 750 MW of installed capacity at Ananthapuramu Solar Park in Kadapa district of Andhra Pradesh, India.

It is the first hybrid tender of the SECI in which every bidder will have to include a small storage system alongside its solar plant, adding up to a total of 100 MW installed storage capacity. This tender is probably the first of its kind in the world.

WORLD'S LARGEST SOLAR PLANT TO

SUPPLY POWER TO 1.1 MILLION PEOPLE

Morocco's initiative to build the largest solar plant in the world has moved a step forward with the first phase of the Noor Concentrated Solar Power (CSP) plant Noor 1, going live on February 9, 2016. Noor 1, in the town of Ouarzazate, will provide 160 MW of the ultimate 580 MW capacity due from the plant by 2018. Once completed, the US$ 9 billion solar array will supply energy to 1.1 million people and cut carbon emissions by 760,000 tons per year. The solar plant is funded by the World Bank and is expected to eventually export energy to Europe.

SOLAR NEWS ROUND UP

SOLAR MONTHLY UPDATE | February 2016 3

2.82 10


During the year 2014, APTransCo (Andhra Pradesh Transmission Corporation) has entered into agreements with IPPs to install 619 MW of solar power. NTPC also entered into agreement in the year 2015 with APTransCo to install 250 MW plant (first phase of the 1,000-MW ultra-solar power project) in the economically backward Anantapur district.

Andhra Pradesh has an installed capacity of 475.74 MW of solar power as of January 1 2016.

Prior to 2010, Rajasthan generated power only from traditional sources and required to procure power from other states. Since implementing an initial round of 46 solar projects under Jawaharlal Nehru National Solar Mission (JNNSM), solar power acted as a springboard for Rajasthan to turn into a power surplus state and overtake Gujarat as the state with the largest commissioned solar capacity at the end of 2015.

Since 2014, Andhra Pradesh Government, with a focus on the carbon credit market, embarked on an ambitious green power programme. The State unveiled plans to produce 9,000 MW solar and wind power by 2019 to earn clean development mechanism (CDM) benefits from carbon credit exchanges. It plans to establish a 'Green Corridor' with several 'clean energy' power projects. The target is to produce 5,000 MW solar power and 4,000 MW wind power through joint ventures with major companies, according to the Principal secretary-energy, AP. Major Government-owned companies such as NTPC and SECI have also added their might to this project by planning their own large scale solar power projects in the state.

SOLAR STATE FOCUS – ANDHRA PRADESH

Total Commissioned Solar Capacity till30-11-15 (MW) by Scheme

Source: MNRE

MNREProjects

StatePolicy

RPO RECScheme

CPSUsPvt. initiative(Rooftop)

Andhra Pradesh

Rest of India

The Andhra Pradesh edge in Solar Power

Key Advantages of AP as a key solar power destination are:

lAvailability of about 300 sunny days in a year with solar insolation of more than 5kWh/m²/day.

lAmongst the best performing power distributing companies in India (APEPDCL (Andhra Pradesh Electricity and Power Distribution Company Limited) and APSPDCL (Andhra Pradesh State Power Distribution Company Limited).

lAn eff ic ient and strong evacuation infrastructure that can facilitate distributed generation.

AP is also chosen to be the home of 4 of the 35 solar parks that are being developed by the Government of India.

98.03 109.51

658.72

38.70

1,409.03

94.75329.47

2,347.19

150.00

Andhra Pradesh - Grid Connected Solar Projectssanctioned up to 31.12.2015 by Capacity (MW)

Source: NREDCAP, Renewable Energy Status as of 31.12.2015- http://nedcap.gov.in/PDFs/RE_Status.pdf

l

SCHEME

lGRID CONNECTED SOLAR PROJECTS SANCTIONED BY DISTRICT

lTHE ANDHRA EDGE IN SOLAR

lSOLAR PARK

lANDHRA PRADESH SOLAR DISTINCTIONS

AP COMMISSIONED SOLAR CAPACITY BY

* Excludes projects commissioned after December 2015 including UMPPs totalling 2.5 GW capacity.

Kurnool, 1

Nellor, 5.7

Ananthapur, 123.4

WestGodavari, 3

Kadapa, 5

Guntur, 1

Krishna, 3.15

Chitoor, 10.7


Name Year Capacity onOffer (MW)

Highest Bid

(`/KWh)

Lowest

(`/KWh)

Bid Weighted Avg.

Price (`/KWh)

Andhra Pradesh Solar Distinctions

lAPSPCL has achieved the distinction of sanctioning 4,000 MW of solar power generation parks under the Ministry of New and Renewable Energy. In doing so, it has been chosen as the best Government nodal agency for solar energy push.

lPivotal Role in lowering tariffs in Indian Solar Market: In the Kurnool Park, a lowest tariff of `4.63 per kWh was quoted by Sun Edison for 500 MW in Phase-1. In Phase-2, SB Energy

promoted by SoftBank of Japan made its debut in Indian solar market with a tariff of `4.63 per kWh for 350 MW in open category. For its role, the Corporation has bagged the Best Government Nodal Agency award for Solar under NSM-Solar Excellence.

The following table gives the trend in solar power project bids by state till date. The table highlights AP bids over the years and how it remains a trendsetter in lowering bids over the years.

*5% escalation for 10 years** 3% escalation for 10 years. Separate L1 for 9 districts*** EPC Bids with Domestic content requirement. Capital subsidy of Rs. 1 Cr/MW

Source: MNRE

Table 2 : Trend in Solar Power Project Bids since 2010 to January 2016

NSM Batch 1

NSM Batch 2

Orissa Phase 1

Orissa Phase 2

Karnataka

Madhya Pradesh

Tamil Nadu

Rajasthan

Andhra Pradesh

10.95

7.49

7.00

7.28

7.94

7.90

5.97

6.45

6.49

6.45 (L1)

6.49 (L1)

Punjab (Capacity 25-100 MW)

NTPC Anantapur

Uttar Pradesh Phase 2

Madhya Pradesh

Telangana Group 1****

Telangana Group 2****

Punjab

Uttarakhand

AP-500 MW Bundling scheme******

AP-350 MW Bundling scheme*******

AP-150 MW Bundling (DCR)********

scheme

Haryana (State scheme)

Rajasthan-420 MW Bundling

UP-100 MW Bundling

6.88

5.00

4.35

4.78

-

6.88

-

7.02

5.05

5.50

5.20

5.09

5.57

4.63

4.63

5.12

6.16*** (L1)

Karnataka

Telangana

Punjab (Capacity 5-24 MW)

6.71

6.46

Punjab Phase 1

Uttar Pradesh Phase 1

Karnataka Phase 2

Madhya Pradesh Phase 2

Andhra Pradesh Phase 2

Dec '10

Dec '11

Mar '12

Dec '12

Apr '12

Jun '12

Mar '13

Mar '13

Apr '13

Feb '15

May '15

June '15

June '15

August '15

August '15

Sept '15

Oct '15

Nov '15

Dec '15

Dec '15

Dec '15

Jan '16

Jan '16

Nov'14

Nov'14

Feb'15

June '13

Aug '13

Aug '13

Jan '14

Oct '14

150

350

25

25

60

125

150

75

226

100

250

215

300

500

1500

500

170

500

350

150

150

420

100

500

500

100

270

130

130

100

500

12.76

9.39

8.98

9.50

8.50

12.45

14.50

8.25

15.99

7.45

5.00

4.36

4.78

7.56

8.60

5.64

5.90

5.90

5.98

5.99

4.63

4.63

5.13

7.12

6.90

8.75

9.33

8.05

6.97

5.99**(7.03 Level.)

7.20

8.01

5.50

6.47

5.25**(6.17 Level.)

12.16

8.79

8.36

8.73

8.34

8.05

6.48*

7.17

7.16

8.04

5.36

5.73

5.62

5.65

5.80

4.63

4.63

5.12

5.00

4.35

4.78

6.94

6.72

8.41

8.90

6.87

6.86

5.75**(6.75 Level.)

The policy also gives directions about migrating projects from solar policy 2012 i.e. projects commissioned after 30th June 2014, to the new policy. The policy has given a good scope for availing OA due to exemption from all major charges and losses, besides providing deemed scheduling and banking facility.

Source: Reconnect Energy


Name Location Proposed Capacity (MW) Identified Land Area

Anantapur Solar Park

Kurnool Solar Park

NP Kunta (Anantapur) Galliveedu (Kadapa) 1500 9000 acre (Approx.)

Pinnapuram (Kurnool) 1000 5000 acre (Approx.)

Source: MNRE

Solar Park

A joint venture between SECI (Solar Energy Corporation of India), APGENCO (Andhra Pradesh Power Generation Corporation Limited) and NREDCAP (New & Renewab le Energy Development Corporation of Andhra Pradesh Ltd.)

Has been formed for development of Solar Park in Andhra Pradesh. The equity of 50% shall be held by SECI, 41% by APGENCO and 9% by NREDCAP. The JV company is known as Andhra Pradesh Solar Power Corporation Limited (APSPCL). Details of the solar parks are given in table below:

A.P. Solar Policy 2015

Andhra Pradesh Solar Power Policy Highlights 2015

Particulars Description

Applicable for 5 years. SPP's* will be eligible for incentives for a period of 10 years.Operation Period

NREDCAP

All approvals/clearances will be disposed within 30 days from date of registration.

Nodal Agency

Single Window Clearance

Eligibility for REC

Land Availability

Evacuation Facility

All projects developed with the below incentives will be eligible for REC benefits.

The project developer will be responsible for acquiring the land required for the project.

Entire construction cost of evacuation facility to be borne entirely by developer.

Incentives Offered

Wheeling Charges

Distribution losses

For captive use or third party sale within the State, wheeling charges will be exempted.

Distribution losses for injection at 33 kV or below will be exempted.

Open access

100% banking for all Captive and Open Access year round. Banking charges @2% ofenergy delivered will be adjusted.

Intra-state clearance for the whole tenure of the project or 25 yearswhichever is earlier will be granted.

For third party sale CSS exempted for captive projects for a period of 5years.

Banking

CSS

SPP’s* shall be treated as eligible industry under the incentives available toindustrial units. PPP status will be provided for projects selling power to DISCOM.

Injection from Solar Projects will be considered to be deemed scheduled.

Industry Status &PPP Status

Must Run Status

Pollution Clearance SPP's will be exempted from obtaining pollution clearances.

Solar Power Projects (SPP's)*

Government will promote setting up of SPPS's for sale of power to DISCOM's. DISCOM'swill procure around 2000 MW of solar power capacity in a phased manner withinthe next 5 years.

Sale of Power toDISCOM's

Power producers will be encouraged to set up SPP's for captive use within the State orthird party sale within and outside AP State.

AP Govt. will develop Solar Parks and add capacity of 2,500 MW over the next 5 years.

Third Party salefor captive use

Solar Parks

The Govt. will promote solar rooftop systems on gross and or net meter basis. A max. of1MWp will be allowed at a single location.

50,000 solar powered pump sets will be operational in the State within 5 years.

The Govt. will promote the solar manufacturing facility. Incentives like exemptionfrom electricity duty for 10 years, and priority land allotment.

Solar RooftopProjects

Solar pump sets

Solar manufacturing


COMPANY LIMELIGHT – WELSPUN RENEWABLES

l About the Company l Solar Projects l Director's Quote

About the Company

Headquarters

Products

Parent

Key Personnel

Installed Solar Capacity

Website

Welspun Renewables (A Pvt Ltd Company)

New Delhi & Mumbai

Renewable Energy Generation - solar and wind

Welspun Energy Pvt. Ltd.

Vineet Mittal, Vice Chairman

700 MW, Generated 1.737 billion units till date

www.welspunrenewables.com

About Welspun Renewables

Welspun Renewables is a leading independent developer of renewable energy projects. In line with Prime Minister Narendra Modi's 175 GW renewable vision, the organization is committed to establishing mega renewable capacities across the country. In the next few years Welspun Renewables plans to set up 5000 MW renewable capacities,of this 1000 MW capacity will be commissioned within this year.

In a short span of time, the clean energy generator has pioneered solar power generation, both in terms of plant size and total installed capacity. Its power plants are among the highest generating renewable energy projects in the country and have been built ahead of committed timelines, thereby helping the country meet its clean energy targets. Welspun Renewables holds the distinction of winning and operating one of the world's largest solar projects of 151 MW (DC).

Accreditations

lA+ Certificate from CARE Credit Ratings

lThe first organization in the clean energy space to be ISO 9001:2008 certified

lThe only corporate in India with a renewable energy program registered with UNFCCC (United Nations Framework Convention on Climate Change) as a CDM (Clean Development Mechanism) Program of Activities

Notable Investors and Funding of the Company

lGlobal institutions like General Electric Financial Services and Asian Development Bank have chosen to invest in the company, marking another First in India's solar energy industry.

lRecently Welspun Renewables received another

round of funding of USD 617 million through a combination of debt and equity infusion by the promoters, existing and new investors.

lGeneral Electric Financial Services: In April 2014, GE Energy Financial Services invested US$24 million in 151 MW (DC) solar photovoltaic project in Neemuch, Madhya Pradesh

lAsian Development Bank (ADB): In June 2014, ADB invested US$50 million equity into Welspun Renewables, making it their largest direct equity investment in the renewable energy sector

Solar Projects

Located in high solar irradiation sites, Welspun Renewables has establishedsolar power plants across the states of Gujarat, Rajasthan, Madhya Pradesh, Maharashtra, Karnataka, Punjab, Tamil Nadu and Andhra Pradesh. Some of its projects are laying benchmarks in clean energy generation across state territories.

1. Madhya Pradesh - 151 MW (DC) Neemuch solar project

One of the largest solar power projects in the world at the time of its commissioning. It catapulted the state of Madhya Pradesh from negligible capacity to one of the leaders in renewable energy generation

2. Rajasthan –126 MW Pratapgarh wind project

One of the largest wind power projects to come up in the state

3. Rajasthan - 55 MW (DC) Phalodi solar project

When commissioned this was one of the largest solar projects to come up in the county

4. Maharashtra - 52 MW (DC) Baramati solar project

Largest solar power project to be built under the Public Private Partnership model in the state


5. Punjab – 34 MW Bathinda solar project

The largest solar power project to come up in the state as yet

6. Karnataka - 19 MW (DC) Chitradurga solar project

Largest solar project to be commissioned in the state at the time of its commissioning, the

(DC) power plant is generating enough energy to help the state meet its summer power needs

The total generation from the company's solar & wind plants till date was 1.737 billion units. Through this the company managed to offset nearly 15,11,2784 tonnes of CO emissions.2

Company Milestones

2015Commissioned 126 MW Pratapgarh wind project

Bathinda 52 MW (DC) solar project inaugurated

Commissioned Baramati 52 MW (DC) power plant, Maharashtra's largest solar project under PPP Mode

Awarded IFC-Mint Strategy Award 2015 in the Utilities, Gas and Power Category

Vineet Mittal awarded Global Solar Leadership Award 2015

Welspun Renewables Recognized with Asia Renewable Energy Excellence - Outstanding Achievement Award

'Solar Project of the Year' awarded to Baramati 52 MW (DC) power plant

2014One of the world's largest 151 MW (DC) solar projects inaugurated

2013

General Electric's (GE) first Indian solar investment with Welspun Renewables

Commissioned Karnataka's largest 19 MW (DC) solar project

Welspun Renewables ISO 9001:2008 certified

Awarded 'Golden Peacock Innovative Service Award' 2014

Asian Development Bank makes its 1st equity infusion ever in Welspun Renewables

Foundation stonelaid by deputy CMfor 52 MW (DC) Baramati Project

Welspun Renewables marks entry into Solar Rooftop Business by commissioning 3 projects in record time

IPPAI Power Awards 2014 presented for innovations in solar project construction

Vineet Mittal named 'Solar Power Man of the Year 2014’

MNRE and Rajasthan Chief Minister dedicate Phalodi 55 MW (DC) solar project to the nation

MNRE's 'The Solar Power Developers Award' presented by Honorable Prime Minister of India

UNFCCC registers India's First Ever Dual Scale renewable energy PoA (Program of Activities)

Commissions 20 MW wind project in Rajasthan

Collaborated with Indian Council of Forestry Research & Education for increasing India's forest cover

'Best Solar Power Producer' Award by IPPAI

2012Commissioned 15 MW (DC), 5.5 MW (DC) and twin 5 MW (DC) solar capacities in Gujarat, Andhra Pradesh and Rajasthan

'Outstanding contribution as a Solar Power Project Developer' by Government of Gujarat's Energy &Petrochemicals Department

ASSOCHAM Global CSR Excellence Award 2012

'Solar Power Project of the Year' bestowed by Asian Power for its 15 MW Anjar solar project, Gujarat

Commissioned additional 30 MW (DC) solar capacity in Gujarat

Director's Quote

With the falling solar tariffs, what do you foresee as the future for solar power market in India in terms of financial viability?

“India has successfully managed to bring solar closer to grid parity with its aggressive implementation polices. With the setting up of 175 GW capacity target by the Honorable Prime Minister, the tariffs are sure to further reduce sustainably. However, the Government needs to arrest the current aggressive downward tariff spiral. In present circumstances, setting up projects at such aggressive tariffs will not be financially feasible for developers. We need to refer to historical coal based UMPP scenario. Aggressive tariffs were quoted by developers, but the projects are running into major losses. Such a scenario adversely affects the sector's growth and inadvertently the country's development agenda.”

- Vineet Mittal, Vice Chairman, Welspun Renewables


FOREIGN INVESTMENT CORNER

India Budget 2016 : Solar round-up

Budgetary allocation for Solar Industry : Rs.4000 crore

Physical Budgetary Target for Solar Power Capacity FY 2016-17: 12,000 MW

Key budgetary measures that are likely to directly or indirectly impact the Indian solar industry:

lAn increase in the clean energy cess or clean environment cess on coal from Rs.200 to Rs.400 per tonne – likely to impact solar power developers favorably as it is likely to drive up the price of coal by 6 to 7 % or 0.20 paise per unit and thereby that of power from coal fired plants, making solar power competitive alternative

lLowering of the accelerated depreciation (AD) benefit (while computing taxable income) from 80% to 40%. Until now renewable energy developers were allowed to claim 80% depreciation of the installation cost of a plant in the first year itself. The benefit currently being availed largely by roof-top developers could have a small adverse impact on the solar rooftop segment. However, the industry is deemed by experts to have matured enough to not be affected hugely by it

lIREDA to have more funds to finance solar projects: To augment infrastructure spending further, Government will permit mobilization of additional finances to the extent of Rs.31, 300 crore by NHAI, PFC, REC, IREDA, NABARD and Inland Water Authority through raising of bonds during 2016-17

lNew manufacturing units to be provided 5% tax incentive: The new manufacturing companies which are incorporated on or after 1.3.2016 are proposed to be given an option to be taxed at 25% + surcharge and cess provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation. This measure could help solar manufacturing companies being incorporated in India under the Make in India initiative

Grid Connected Solar Storage Systems – a remerging trend globally and in India?

According to a study by the US Government's Lawrence Livermore National Laboratory, more than 60% of the energy we generate is lost between the time it is generated and the time it is consumed. This continues to be true for grid connected solar PV power. Battery storage for solar power has always been an alternative that has not gained popularity till recently, owing to prohibitive costs and lack of ample research and development.

Once a dominant force in the solar market, batteries have been pushed aside in favor of grid-tied systems. SECI's new hybrid tender with a battery storage clause is again likely to change the market dynamics marrying grid connected solar power indelibly with battery storage systems.

In the mid-nineties, in a market as advanced as the United States, the only method of installing asolar PV system was through batteries. However, world over as Governments began incentivizing grid connected solar power, and US, Germany and Japan stepped up promotional campaigns, there arose a strong burst of activity for the grid-tied market globally. In 1997, nearly two-thirds of worldwide solar deployment was off-grid. Three years later, grid-tied installations outpaced off-grid installations globally for the first time. Consequently, battery storage systems went from being the core enabler of solar PV to a marginal technology. Battery storage systems now account for around 1 percent of the world's annual solar installations.

Now, interest has once more revived in this crucial segment of the industry with lithium-ion batteries getting cheaper and more abundant. Solar penetration has also reached high enough levels to worry utilities, and electricity markets have evolved enough to reward storage, and attention has suddenly shot turned back to batteries. The recent opening of a solar bid by India's Solar Energy Corporation of India (SECI), with a battery storage clause included in a 750 MW Grid Connected Solar Power project in the state of Andhra Pradesh in India, is a case in point.

In Germany, as feed-in tariff rates dipped below retail rates from the grid, batteries have become

TECHNOLOGY UPDATE


more popular to serve self-consumption. In the U.S., solar service providers like SolarCity and SunPower see batteries as a way to enhance their long-term relationships with customers, while also utilizing net metering and ancillary service payments to increase the value of the solar system.

Industry leaders in the US are betting that hybrid inverters that can handle switching demands between the grid and batteries will be the next big thing in residential and commercial solar. The market is just emerging. The timing of the surge is up for debate. GTM Research forecasts that distributed storage in the U.S. will grow to more than 700 MW over the next six years, partly driven by solar installers who can monetize batteries.

However, there is also skepticism whether it will be the solar companies that directly leverage the value of distributed storage. Installers and service providers may not be internally equipped to handle the complexities of storage regulation. Companies such as Sun Power in the US that have invested in battery storage technologies would have to get the model right.

America's biggest solar installer, SolarCity, could still buck that prediction. In April, the company announced it was creating a grid-engineering department specifically to work on the regulatory and technical complexities of integrating storage with solar. It showed how serious the company is getting about batteries.

SolarCity also benefits from its close financial ties to Tesla, which is preparing to break ground on the world's biggest factory for lithium-ion batteries. A handful of executives in the solar industry have moved into storage and are attempting to apply the financial innovation and cost-reduction lessons they learned from deploying PV. Top executives of companies such as Sun Edison and Sun Power are on the board of companies manufacturing batteries.

Studies by the US Western Electricity Coordinating Council have found that finding better ways to store energy could cut total transmission and distribution losses by about 18% and boost the efficiency of electricity use by up to 11%.

What is stopping a battery revolution is not a technological breakthrough, but a technological advancement. A solar battery costs around $450

for each kW hour of storage. More than $3 trillion has already been invested in small-scale solar and battery storage worldwide. Today, the solar battery market — estimated at $50 billion annually — is poised to increase 10-fold in just three years to 2,400 MW.

Even without any special effort, lithium-ion batteries would be cost-effective to be deployed on a large scale within five years as a result of a yearly cost reduction of 20% to 30%. Battery costs have seen substantial decline every decade since inception in the early 1990s.

The game changing SECI solar tender with storage clause

SECI has for the first time in India, come out with a tender for a solar plant that stipulates a compulsory storage clause for each bidder. Each bidder will have to include a small storage system along with the solar plant that they plan to build, as a part of the total 100 MW installed storage capacity. According to Ashvini Kumar, MD of SECI, “Mechanisms for forecasting how much renewable power will be available each day (and informing the grid in advance) are being put in place. Developers will have to work out how much deviation is there and how much it will be reduced by battery storage. You have to go beyond the present stage of technology. This tender may trigger many more similar ones in future.”

Naturally, he expects the bids received to quote prices much higher than in the `4-5 per unit band that other solar bids in the recent past have thrown up. They will also be eligible for viability gap funding (VGF). The obvious expectation is that though consumers will pay higher costs currently, storage cost will decline, as has been the case with solar LEDs.


SOLAR BIDS IN THE MONTH OF FEBRUARY - MARCH 2016

Source: LSI Financial Services Tender Monitor 2016

Technical BidDate

Bid SubmissionDate

01 16/02/20

01 16/02/20

22 16/02/20

29 16/02/20

08/01/2016(Extended)

25/02/2016

Organiser

NTPC

JREDA

SECI

SECI

State

Andhra Pradesh

Jharkhand

Madhya Pradesh

Karnataka

Capacity

1000 MW ultra-mega solar PV at NP kunta village

Setting up of Grid Connected Solar PV Projects of1200 MW capacity

200 MW (2x100 MW)

1000 MW

SECI Gujarat 250 MW Solar Park in Charanka 29/02/201630/12/2015(Extended)

JNNSM Andhra Pradesh 500 MW in Ananthapuramu Solar Park in AP, Phase-II,Batch-III, Tranche-IV

02/03/2016Last date extended

29/02/2016

08/03/2016

10/03/201615/01/2016(Extended)

18/03/2016

01/04/2016

18/03/2016

05/04/2016

05/04/2016

SECI

NeyveliLigniteCorporationLimited

SECI

NTPC

NTPC

NTPC

NTPC

NTPC

NeyveliLigniteCorporationLimited

Orissa

Tamil Nadu

Odisha

Karnataka

Karnataka

Karnataka

Karnataka

Karnataka

Rajasthan

500 MW

Setting Up of 4 Blocks of Grid Interactive Solar PVPower Project Of Each 65 MW AC capacity

10 MW, Paradip Port

Allotment of 240 MWs Grid Connected Solar PVProjects In 12 Taluks of Karnataka State

Development of 250 MW (5 blocks of 50 MW each)Solar PV projects at Pavagada Solar Park in Karnataka

Steel giant Arcelor Mittal plans to build a500-600 MW solar plant

Development of 750 MW (6 Blocks of 125 MW each)Solar PV Projects

Procurement of 200 MW power from Solar PVpower plants within the state of Kerala

Grid Connected

65 MW AC Grid Interactive Solar PV Power Projectwith associated 33kv Power System complete forGrid Interconnection

08/03/2016Last date extended

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Project Advisory Services

LSI Financial Services is a leading provider of innovative financial solutions to corporate India for over a decade.

It has successfully raised funds for companies through structured financial products, spanning various sectors. With in depth domain knowledge, LSI strives to add value to the client's financial supply chain ensuring an effective and efficient capital structure.

Creatingpartners in

value, growth

New Delhi

P FE

1201, 12th Floor, Chiranjiv Tower

43, Nehru Place, New Delhi 110019 011 46628817 011 46628851 [email protected]

Kolkata

P FE

Sagar Trade Cube 5th Floor

104, S P Mukherjee Road, Kolkata 700026 033 24863815 033 24863816 [email protected]

Mumbai

P FE

Unit 8, 4th Floor, Trade World B Wing

Kamala Mills Compound, Lower Parel, Mumbai 400013 022 66702000/04 022 66702005 [email protected]

www.lsifinance.com

New Delhi

P FE

1201, 12th Floor, Chiranjiv Tower

43, Nehru Place, New Delhi 110019 011 46628817 011 46628851 [email protected]

Kolkata

P FE

Sagar Trade Cube 5th Floor

104, S P Mukherjee Road, Kolkata 700026 033 24863815 033 24863816 [email protected]

Mumbai

P FE

Unit 8, 4th Floor, Trade World B Wing

Kamala Mills Compound, Lower Parel, Mumbai 400013 022 66702000/04 022 66702005 [email protected]

www.lsifinance.com

Solar Monthly Update Feb 2016 -...

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Transcript of Solar Monthly Update Feb 2016 -...