World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to...

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An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance, capacity building, hand-holding and media & outreach. World Bank SBI Grid Connected Solar Rooftop PV (GRPV) Technical Assistance Program October 2018 Senior Management Consultation on Development of Grid Connected Rooftop PV (GRPV) Program in Nagaland - Policy Session

Transcript of World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to...

Page 1: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance, capacity building, hand-holding and media & outreach.

World Bank – SBI Grid Connected

Solar Rooftop PV (GRPV) Technical

Assistance Program

October 2018

Senior Management Consultation on Development of Grid Connected Rooftop PV (GRPV) Program in

Nagaland

- Policy Session

Page 2: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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Content

01

02

03

04 Best Practices that the State can adopt

Analysis based on State Specific Challenges

Need for GRPV Policy in Nagaland

GRPV: Current Status and Hurdles in Scaling up

05 Contours of Draft GRPV Policy

Discussion and Way Forward

Page 3: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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GRPV : Status, Component and Hurdles

Page 4: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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GRPV Status- State wise

Source: BTI, Idam Infra Secondary Research

Regulations, 2015 Regulations, 2015

Bihar GRPV Regulations, 2018

Regulations, 2014

Jharkhand GRPV Regulations, 2015

Regulations, 2016

Regulations, 2015

Regulations, 2015

Regulations, 2016

Regulations, 2015

Regulations, 2016

Nagaland GRPV Regulations, 2016

Regulations, 2014

Regulations, 2015

Regulations, 2015

Regulations, 2016

Regulations, 2016

APERC Orders/ approvals to AP DISCOMs

TNERC Orders/ approvals

Regulations, 2016

Policy, 2015

RE Policy, 2015Policy, 2012

Policy, 2014

Policy, 2017

Policy, 2014

Policy, 2016

Policy, 2016

Policy, 2014

Policy, 2015

Policy, 2016

Policy, 2012

Policy, 2017

Policy, 2015

Policy, 2018

Policy, 2014

RE Policy, 2016

15 MW

79 MW

126 MW

167 MW

170 MW

47 MW

309 MW

182 MW

253 MW

95 MW

89 MW

103 MW

146 MW

► NER and Sikkim–32 MW

9 MW

20 MW

17 MW

38 MW

► Others (PSUs/ Railways/ etc.) – 40+ MW

24 MW

Total Installed Capacity ~ 2.5 GW

Page 5: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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Hurdles for GRPV: Parliamentary Committee Report

The 28th Report titled “National Solar Mission – An Appraisal” of the 16th Parliamentary Standing Committee on Energy attributed multiple reasons hampering GRPVs growth.

► Reasons linked to Utility Preparedness

❑ Need for standardized and time bound interconnection framework

❑ Need for standardized agreements, applications forms and formats

❑ Capacity building of DISCOMs staff

❑ Streamline commissioning process

❑ Need of change in utility’s billing system

Slow Growth of

GRPV

• Involvement of multiple approval agencies

• DISCOMs reluctance to operationalize GRPV.

• Non uniform framework and agreements

across States

• Lack of consumer awareness. Skill and

knowledge gap.

• Tedious process for project commissioning and

subsidy disbursement

• Frequent changes in Government Policies or

lack in Policies for GRPV promotion.

TA support under the WB-SBI Program would facilitate creating enabling environment for

investment opportunities for GRPV sector in the State to move towards market mode

Page 6: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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Way to Scale-up GRPV deployment in the State

01 02 03 04

Policy and

Regulatory• Develop Solar Rooftop Policy

• Update Metering Regulations

Standardized

Processes

Monitoring &

Verification Framework

Capacity Building

& Outreach

• Empanelment of Vendors

• Interconnection Procedure

• Helps in developing market

• Approach to business models

• Implementation support

• Incentive mechanisms

• Well defined technical standards

• Robust interconnection process

• Consumer-friendly

Interconnection process

• Execution in timely manner

• Web based procedures

• Online monitoring

• Error reduction

• Save of time and money

• Technical knowledge to

developers and DISCOMs

• Awareness to consumers

• Strengthening the state

government

• Unified Web Portal

• Database creation

• Training Program

• Media Outreach Programs

It is important to adopt & implement Progressive policies, Standardized procedures, and robust frameworks, to

enable Rooftop Solar sector.

Page 7: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 7 12 October 2018

Profile of the State

Page 8: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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About Nagaland

Source of Data: Census 2011, CEA Reports, MNRE Annual Reports, SECI List of Successful Bidders, LGBR Eastern Region 2018-19. Nagaland Tariff order)

NERC SLDC DPGN

Generation Transmission Distribution

NREDA EI

General Information

Area 16,579 Sq.km.

Total Population

(Census 2011)19.80 Lakh

Per Capita Electricity

Consumption 277 kWh

Solar Statistics

Estimated Potential 7 GWp

Target for GRPV 50 MW

Current Installation MW

Power Statistics

Installed Capacity 177.30 MW

Energy Sales (Approved FY

2018-19) 695.13 MU

Peak Demand (LGBR FY

2018-19) 156.55 MW

Actual T&D Losses (FY 16) 26%

DISCOM :

Department of

PowerTotal Domestic Commercial Industrial Others

Consumer break

up (numbers)3,01,706 2,69,973 24,220 5,156 2,357

Energy Sales:

2018-19 ( MU)695.13 359.06 109.99 67.72 159.36

0

1

2

3

4

5

6

7

8

9

10

Domestic Commercial Industrial

Tariff

in I

NR

/ kW

h

Tariff Structure

Lowest Tariff discovered for RESCO for Government Buildings

Lowest Tariff discovered for RESCO for Residential Sector

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Nagaland: Peak Demand

Source :

CEA’s Annual LGBR Report for FY 2016-17,

Web report LGBR for NER for FY 2018-19

CEA Monthly reports for FY 2017-18

Projected Peak Demand

deficit throughout the

year except for the

months of July &

August, 2018

-70

-50

-30

-10

10

30

50

70

0

20

40

60

80

100

120

140

160

180

Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

Surp

lus/

Deficit

Peak D

em

and in M

W

Projected Peak Power: Surplus and Deficit

SURPLUS(+)/DEFICIT(-) NET TOTAL POWER AVAILABLE MAXIMUM DEMAND

December, 156.55

80

90

100

110

120

130

140

150

160

170

April May June July August September October November December January February March

Peak P

ow

er

in M

W

Trend: Monthly Variation in Peak Demand

2016-17 2017-18 2018-19

Projected Peak Demand

for 2018-19 is 156.5 MW

Page 10: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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Nagaland: Energy Requirement

Source :

CEA’s Annual LGBR Report for FY 2016-17,

Web report LGBR for NER for FY 2018-19

CEA Monthly reports for FY 2017-18

Projected Energy

requirement for 2018-19 is

872.64 MU

Energy deficits projected in

the months of December to

May 2018

40

45

50

55

60

65

70

75

80

85

April May June July August September October November December January February March

Energ

y R

equirem

ent

in M

U

Trend: Monthly Variation in Energy Requirement

2016-17 2017-18 2018-19

-25

-20

-15

-10

-5

0

5

10

15

20

25

0

20

40

60

80

100

120

Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

Surp

lus d

eficit in M

U

Energ

y R

equirem

ent

in M

U

Projected Energy Requirement: Surplus and Deficit

Surplus/ Deficit Energy Available Energy Requirement

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Solar generation peak does not coincide with

peak demand.

Nagaland: Mapping Demand Curve to Solar Generation

Source :

PVSyst Simulations

Energy Demand Pattern : POSOCO

Solar Generation is higher in the months of November to April when State faces

energy deficit. Solar Generation can supplement energy requirements during

winter and summer months.

CUF: 15-16%

Simulated Monthly Energy Generation from a 48 kW plant in Kohima

Page 12: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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Key Incentives and Exemptions

INC

EN

TIV

ES

03

01

04

02

EX

EM

PT

ION

S

07

05

08

06

Energy Credits

Feed in Tariff

Capital Subsidy

Generation Based

Incentive

Wheeling and

Banking

Open Access

Cross Subsidy

Charges

Electricity Duty and

Cess

State Incentives Incentives for Batteries Incentives for Maintenance Exemptions from Charges

Page 13: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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Scheme of incentives for North Eastern States

Central Financial Assistance

State wise lowest Price discovered for NER & Sikkim for residential sector

• Subsidy :70% of benchmark cost

• Not CFA for commercial and Industrial establishments

• Applicability:

• Grid connected solar rooftop power plants

• with captive/hybrid consumption

• with or without net metering/gross metering

Size <25 kWp 25 to 500 kWp

Capex cost per

kW

INR 65,000 INR 45,100

Tariff INR per

kWh

NA 4.81

Achievement Linked Incentive

Achievement Incentive per kW

Above 80% Rs 39,000/-

50-80% Rs 23,400/-

40-50% Rs 15,600/-

CAPEX Competitive Bidding

RESCO Tariff based reverse

bidding

State Project cost per kWp

in INR

Tariff per Kwh in

RESCO Mode in INR

Nagaland 69,500 2.960

For Installation of Solar panels on rooftops of government

institutions

Residential Institutional Social

Page 14: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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MNRE Guidelines on transparent bidding process

Implementation of Grid Connected Rooftop Solar

power projects through transparent bidding process

• Implementing Agencies must adhere to the guidelines

(vide OM no. 03/88/201S-16/GCRT dated 08.09.2016)

• Selection of bidders and discovery of project cost for

rooftop solar under Ministry's scheme must be through

a transparent competitive bidding process.

• Any violation of these guidelines shall make the project

ineligible for availing CFA from MNRE

Competitive Bidding

Central Financial Assistance

Despite economically attractive case, GRPV deployment has not picked up in the State till now

Page 15: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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Way to Scale-up Solar Rooftop

The WB-SBI assignment’s aims to address challenges faced by GRPV sector and help sector’s growth by following constructive approach .

The above mentioned approach under the WB-SBI assignment would help in improved

investment opportunities in the solar rooftop sector

Elements to scale up

State level engagement with SNA,

DISCOMs, and ERCs,

Consultative approach among various

stakeholders

Amalgamation of experts knowledge

Ground level involvement at state

levels

Feedback and knowledge of past

programs

Policy and regulatory

environment

Standardized processes

Capacity building

Monitoring & verification

framework

• Helps in developing market

• Provides framework to developers

• Thoughtful approach to business models, financing options

• Implementation support and incentive mechanisms

• Well defined technical standards

• Robust interconnection process

• Consumer-friendly Interconnection process

• Execution in timely manner

• Web based procedures

• Online monitoring

• Error reduction

• Save of time and money

• Technical knowledge to developers and DISCOMs

• Awareness to consumers

• Strengthening the state government

Page 16: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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State Specific Challenges

Page 17: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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Existing scenario: Net Metering Regulations

► Grid Interactive Distributed Solar Energy Systems Regulations, 2016

► Key highlights of the Regulations include:

Cumulative capacity: 15% average minimum

load of distribution feeder

System size: 1 kWp to 1 MWp

Max. size of system 100% of sanctioned load/

contract demand

Excess energy capped at 90% of electricity

consumption

Settlement Period: April - March

Regulatory policy framework based on FOR’s 2013

Draft Model Regulations. The same is under

revision with the assistance of WB-SBI TA

What the State can adopt?

Role of Utility as a proactive member in entire transaction

Aggregate demand and facilitate tendering

Innovative business models

Empowered committee/ DISCOM rooftop cell

Simplify interconnection process

Web based application system

Gross metering framework.

Empanelment of vendors.

Standardized forms/ formats and agreements.

Page 18: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 18 12 October 2018

Snapshot of Policy: Solar and Solar Rooftop

State Policy Notified in Key Features

Objectives Target

Assam Assam Solar

Energy Policy 2017

January, 2018 • Enabling environment for business

• Incorporate Solar in Building Bylaws

590 MW of which

rooftop-110 MW

Delhi Delhi Solar Policy,

2016

September

2016

• Use regulatory mechanisms to drive

demand such as

▪ mandatory deployments on

government rooftops

▪ Modify Building bylaws

▪ Demand Aggregation

145 MW

Uttar

Pradesh

Draft Solar Policy

2017

- • Promote R& D, innovations and skill

development

• Encourage participation of Private Sector

10700 MW of

which rooftop is

4300 MW

Madhya

Pradesh

MP Policy for

Decentralized

Energy Systems

October 2016 • Reduce distribution losses

• Improve tail end Voltages

• Encourage job creation

495 MW

Target based on:

• Peak demand

• Energy

Consumption

GOI defined

Targets

8 % of electricity

consumption

Targets defined

for consumer

categories

Technical

Page 19: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 19 12 October 2018

Existing Policy/Regulatory Framework

2014 Sikkim Solar regulations, Manipur Rooftop Solar Policy

2015 Meghalaya, Assam Net Metering Regulations 2016 Net Metering Regulations in

Manipur, Mizoram, Arunachal Pradesh, Nagaland

2017 Mizoram Solar Power Policy

2018 Assam Solar Energy Policy

State Solar Power

Policy

Solar Rooftop

policy

Net Metering

Regulations

Feed in Tariff

determination

for Gross

metering

Interconnection

Procedure

Application

Portal

Innovative

Business

models and

Metering

arrangements

Meghalaya Yes

Assam Yes Yes

Manipur Yes Yes Yes

Mizoram Yes Yes

Nagaland Yes

Arunachal Pradesh Yes

Sikkim Yes

Best Practice Yes Yes Yes Yes Yes Yes Yes

Page 20: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 20 12 October 2018

Off GridSolar Park• MW to GW Scale

• Ground Mounted projects

• Suitable Land requirement for 25 years

• Dedicated Transmission Infrastructure

• T& D Losses same as conventional

• 23 MW pipeline capacity approved

GRPV• kW to MW Scale

• Unutilized Rooftop space

• Existing Grid Infrastructure used

• Contribute in T&D Loss reduction

Solar Deployment Methods

Policy focus for harnessing Solar Potential

Feasibility in Nagaland:

Low due to small size, hilly terrain

and high forest cover

• kW Scale

• Back up Supply

• Use of Grid Infrastructure not applicable

Off-Grid Solar PV Systems in

Nagaland are under utilized

1,506

kWp1

Feasibility in Nagaland:

Reasonably high and can further be

improved with appropriate Policy

Interventions

► 1MNRE Annual report 2016-17

Page 21: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 21 12 October 2018

Net Metering with/without Storage

Excess Generation is fed into grid.

Grid is used as Storage

Works well in areas with Day time Peak

Benefits

Net Metering : with battery

Net Metering: without battery

► Supplementary generation when Peaking Plants Shutdown mid-day

► Replace thermal power in the Energy Basket

► Reduce Peak Demand at the consumer end

► Additionally serves as Back Up Supply source

Excess Generation is stored in batteries

first and later fed to grid when batteries are

full

Benefits

Page 22: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 22 12 October 2018

8:00 AM, 60

6:00 PM, 80

Existing Demand curve

0

10

20

30

40

50

60

70

80

90

12:00 AM 4:00 AM 8:00 AM 12:00 PM 4:00 PM 8:00 PM

Po

we

r in

MW

8:00 AM, 49.9

Case 1: Only PV

Case 1: Only PV

Case 2: PV+ Back up storage

Case 2: PV+ Back up storage

Case 3: PV+ Peak Management Storage

6:00 PM, 75

Case 3: PV+ Peak Management Storage

Impact of Different PV+ Storage Deployment Scenarios

Impact on Consumer Only PV PV + Back up Peak Management

Cost of the system Low Moderate Higher

Self consumption (Solar) Low Higher Higher

Back Up Power No Yes Yes

Reduce demand charges No No Yes

Impact on DISCOM Only PV PV + Back up Peak Management

Morning peak demand Reduced Reduced Reduced

Ramping rate High Lesser Lowest

Grid Support

(reduce overvoltage)

No Yes Yes

Page 23: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 23 12 October 2018

NER – Promote GRPV + Storage

432

1

Peak Demand Management

Increase Self consumption

100 % Renewable Future

Back up during grid failure

State endowed with hydro resources can offset thermal power procurement combing Solar PV + Storage

Inclusion of Storage helps in shifting energy from the time of availability to the time of requirement in the evening

Allowing grid connected systems to have storage component reduces the grid injection during low demand from the consumer

Back up power is a requirement in the region prone to climatic and seismic sensitivities

State should explore benefits combining PV + Storage by adequate policy provisions to solve

challenges

Page 24: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 24 12 October 2018

State (NER) specific Capex Benchmarking

Source: MNRE office memorandum No. 318/38/2018-GCRT

Benchmark costs are basis of central

government’s incentives/ subsidies

Benchmark cost varies significantly from lowest bids determined by SECI

Higher cost of O&M, Logistics,

Supply chain

Larger number of residential consumers

Subsidy for PV with/without

Storage

Value of NER, Hilly states are 10% higher

A separate Benchmark Cost assessment may be performed for the State for GRPV

For NER and Hilly states:

• No separate benchmark cost for GRPV

• Separate benchmark cost exist for Standalone

systems

Page 25: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 25 12 October 2018

Best Practices and Learnings

Page 26: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 26 12 October 2018

Best Practice: TEDA Incentive Scheme for Apartments

Under CM’S SOLAR ROOFTOP CAPITAL INCENTIVE SCHEME

➢Implementing Agency: Tamil Nadu Energy Development

Agency (TEDA)

➢ Model: Capital Incentive Scheme for Domestic: Group

➢Supporting Policy: Tamil Nadu Solar Policy, 2012

Source: TEDA website

State Incentive: Rs. 20000 per kWp

Capacity and Subsidy Cap1 kWp per applicant (average)

Common FacilitiesPV Plant can also cater to common service

connection such as lift, pumps etc.

Eligible for Net MeteringJoint Ownership of a Solar PV Plant

Benefits are shared by all the participants.

For Flats and Apartments

TN Solar Policy,2012 says “All domestic consumers will

be encouraged to put up Solar rooftop installations”

Page 27: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 27 12 October 2018

Best Practice: UPNEDA PV + Storage Application

Project : Siwaya Toll Plaza

➢ Implementing Partner: Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA),

Amplus Solar, Leclanche

➢Model: Diesel Offseting

➢Supporting Policy :UP Solar Energy Policy 2017 (Draft)

“.. To support in providing environment friendly and affordable Power for All.”

Objective of UP Solar Policy

Before After

Problem

• Unreliable Grid

• Multiple Outages in a Day

• Fossil fuel based and Expensive Back up

Solution

• 100 kWp PV

• 96 KWh Battery Storage

• Energy Management system

Benefits

• Reduction in operating expenses

• Clean Back Up

Source: Amplus Solar, Leclanche

Page 28: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 28 12 October 2018

Best Practice : AEDA Local Entrepreneurship Promotion

GRPV Target:

14 MW

Capex:7 MW

Open Category:

1 MW<10 kW

Tender : 6 MW >10 kW

RESCO: 7 MW Tender

Reservation for • Local developers

• Registered office in the

State

➢ Implementing Agency: Assam Energy Development Agency (AEDA)

➢Model: Local Entrepreneurship promotion

➢Supporting Policy :Assam Solar Energy Policy 2017

Encourage participation of Local Developers

Relaxation in technical criteria

Match L1 financial bid of Tender Category

Meet annual turnover required for 50 kW

1

2

3Minimum Criteria for all :• Must have office in Assam or

• Set up the same at least 10

days after signing of LOA

Combined Tender

for CAPEX and RESCO

Financial Quotation Simplified design

Source: AEDA

“..create an enabling environment for businesses and

developers to participate and invest in the process of targeted

solar power capacity expansion”

Objective (5.a) of Assam Solar Policy

Page 29: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 29 12 October 2018

Best Practice :APEPDCL Financing model

Roles• Discom recovers the loan as EMI through consumer bills.

• Regulator approves the loan recovery as a part of bill.

• State Nodal agency manages Subsidy allocation

Utility based Business Model

Utility as Facilitator

➢ Implementing Agency: Andhra Pradesh Eastern Power Distribution

Company (APEPDCL)

➢ Model: On-bill-financing model

➢Enabling Policy: AP Solar Policy 2015, AP Solar Rooftop

Policy/Guidelines

Source: Case Study on APEPDCL Scheme

Consumer

APEPDCL

Developer/

VendorNREDCAP

Andhra

Bank

Loan

Application

50% Subsidy

MNRE : 30%

GoAP: 20%

50% Loan

Tripartite Agreement

Disburses

Loan Amount

Balance 50%

payment to vendor

Domestic

Monthly

consumption

< 200 units

Subsidy

Application

Pays EMI

Consents for

system set up

system. Pays EMI

The development of the Scheme was aided by the policy

framework which allowed provisions such as Subsidy

from State Government

Page 30: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 30 12 October 2018

Best Practice: BSES Solarize Dwarka

➢ Implementing Agency: BSES Rajdhani Power Limited in

collaboration with USAID –PACE D and GIZ

➢Model: Consumer Demand Aggregation

➢Policy: Delhi Solar Policy, 2016

Utility based Business Model

Utility as facilitator

Source: News articles on Solarize Dwarka

Benefits to DiscomRESCO mode

Third Party Installs and maintains

the systems

Benefits to ConsumersMonthly Savings : Rs 750 per kWp

Generation Based Incentive: Rs 2 /kwh

Aggregate DemandResidential Consumers living in

• Apartment Buildings

• Housing Societies

One GRPV plant for a group

• Minimize overloading issues

• Capital deferment for line replacement

• Meeting its renewable purchase obligation

Delhi Solar Policy has innovative provisions such as demand

aggregation, Virtual net metering, and generation based

incentives for targeting domestic consumers

Page 31: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 31 12 October 2018

Draft HERC Net Metering Regulations, 2018

➢Policy and Regulatory framework help create an investment climate for a sector’s growth.

➢Policy provides the vision of the Government whereas Regulations help create rules of the games to fulfil the vision for the Sector.

➢ In many cases Regulations are guided by both the applicable policy framework and the market dynamics.

➢HERC recently published the Draft Net Metering Regulations, 2018 to create a facilitative environment for GRPV’s off-take in Haryana.

➢Many of the provisions addressed in the Regulations, may be incorporated in the Policy document for Nagaland. These provisions may

then guide the NERC amend/ draft GRPV Regulations encompassing the State Government’s visions for the sector.

1. Increasing 1 MW limit to 2 MW

2. Virtual Net Metering – with multiple variants

3. Utility driven Business Models

4. Extending Net Metering benefits to Metered

Agriculture Pumpsets

5. Grandfathering Clause for exemption of various

charges for 25 years

6. Constitution of State Level Co-ordination Committee

and DISCOMs Rooftop Cell

► The WB-SBI TA Program recommends to include such sector friendly provisions as part of the Nagaland GRPV Policy

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Best Practice : NREDCAP: Unified Web Portal

➢ Implementing Agency: New and Renewable Energy Development

Corporation of Andhra Pradesh (NREDCAP)

➢Model: Unified Solar Rooftop transaction Portal

➢Supporting Policy: Solar rooftop Net Metering Policy, 2015

Key Features of UWP:

➢ Enables inter and Intra Stakeholder interaction

➢ Facility to apply for GRPV and Subsidy

➢ Provides State specific information to the consumer

➢ GRPV application status Dashboard for key stakeholders

➢ Time Schedule report generation

➢ Geo-tagging allows tracking from “Application” to

“Synchronisation” stage in real-time

Source: NREDCAP

Objective: “A single window access to consumers for

information and interaction with Multiple Stakeholders”

“the Net Metering Policy, 2015 emphasizes that the State

Should have an online mechanism for Application process and

approvals”

Page 33: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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Best Practice: MPUVN Data room in Tender➢ Implementing Partners Madhya Pradesh Urja Vikas Nigam Limited (MPUVN), WB-SBI TA program

➢Model: Demand Aggregation and Vendor Facilitation

➢Supporting Policy :MP Policy for Decentralised RE systems 2016

“. Framework for Implementation through RESCO

(Renewable Energy Services Company)

Section 13 of MP DRE policy

Problem

Information Asymmetry

Identify

LocationAssess

Potential

Create

Database

,Source: GSES, EQ

250 Sites 22 MWSite co-ordinates, Solar PV layout

and generation data, Energy Bills

Indicative Solar PV array layout superimposed on Google image at an identified location

Page 34: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 34 12 October 2018

Need for Dedicated State Specific GRPV Policy

Page 35: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Page 35 12 October 2018

Need for dedicated GRPV Policy

Off-Grid to GRPV

To clearly provide guidance on

converting existing Off-grid systems to

GRPV with storage subject to

appropriate safety measures.

Clarity on RoleTo bring in the clarity on Roles and responsibilities

of various Government Institutions in accelerating

GRPV deployment. Also, provide guidance towards

time bound action plan for achieving the Policy

Objective.

ClimateWith lesser sunny days, lower solar

irradiance and heavy rainfall,

promotion of solar technology would

require special measures and

incentives.

Target SettingSetting of target capacity to be installed in the State,

taking into consideration the present scenario. Setting

of Category-wise, Sector-wise, year-wise targets along

with guidance on facilitative eco-system.

TerrainNagaland being a hilly state with large

forest cover need focused approach

towards GRPV as against Utility Scale

Solar which need large land tracts and

investments.

Supply Chain Management /

Local Employment To successfully install GRPV in the State, the policy

is required to establish a robust supply chain system

management system to make it reach to the far flung

areas of the State. Policy to further provide guidance

on promotional measures for localized start-ups,

employment opportunities.

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Key Elements of Proposed Solar Rooftop Policy

01

03

05

07

02

04

06

08

Preamble

Governance and

Institutional Structure

Technical

Requirements

Role of stakeholders

Vision, Objective &

Control Period

Implementation Plan

Information for

Consumers

Procedures for Revisions

and Amendments

GRPV Policy

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Objectives

Target Setting

Incentives

Operation Modes

Metering Arrangements

Best practices

01

02

03 04

05

06

Key Decision Variables / Discussion Points

What should be the Key

Objective of the Policy?

• Local Employment generation

• R&D and Manufacturing

• Capacity Building

• State’s overall Target till 2022

• Category wise, Sector wise,

Year wise Trajectory for -

Domestic, Commercial,

Industry, Institutions,

Government Departments

What state specific incentives should

be adopt?

• State Level Fund

• Generation based Incentives

• Subsidy for Batteries

• With / Without Battery back-up

• ToD Tariff design for promoting

Peak Demand Management

• Converting Off-grid systems to

GRPV

Should the state go beyond

net metering?

• Gross metering

• Net Metering

• Virtual Net Metering

Which all innovative ideas/ best

practices should the policy adopt?

• Utility based Business Models

• Aggregator

• Facilitator

• Super RESCO

• Online Unified Portal

Page 38: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

Thank you

Dr. Amit JainRenewable Energy SpecialistEmail: [email protected]

Nithyanandam Yuvaraj Dinesh BabuTeam Leader, EY Consortium / Senior AdvisorEmail: [email protected]:9560719349

Page 39: World Bank SBI Grid Connected Solar Rooftop PV (GRPV) … · 2018-10-12 · An initiative to bolster grid connected rooftop solar deployment in 14 states via policy & regulatory assistance,

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Contours of Proposed GRPV Policy (1/2)

Key Elements

Preamble • Preamble

Rooftop Solar PV System Policy:

Vision, Objective & Control Period

• Title of the Policy

• Objectives

• Legislative Framework for Policy

• Eligible Entities

• Target Capacity

Governance and Institutional

Structure

• Nodal Agency

• Implementing Agency

• Regulatory Agency

Implementation Plan for Solar

Power Systems and Plants

• Operating Modes

• Metering Arrangements

• Schemes

• Incentives

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Page 40 12 October 2018

Contours of Proposed GRPV Policy (2/2)

Key Elements

Technical Requirements • Technical Standards for Electric Components, Connectivity, Metering

• Standards for Interconnection

• Safety of Grid and systems

Information for Consumers • Process of Interconnection framework

• Process of Empanelment of vendors

• Financial arrangement and support

• Monitoring of projects

Role of stakeholders • Role of Consumers

• Role of Nodal Agency

• Role of State Distribution Utility

• Role of CEI

• Role of Electricity Regulatory Commission

Procedures for Revisions and

Amendments

• Empowered Committee

• Power to Clarify and Amend

• Power to Remove Difficulties

• Powers to Interpret