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Implementation of rooftop solar photovoltaic plants in
Madhya Pradesh - A pilot initiative by MPMKVVCL, MNRE and GIZ
Conference on Rooftop Solar Power, 20th Sept 2016, New Delhi
Seite 2
Background
• In late 2013, MPMKVVCL approached MNRE to support them in developing
rooftop photovoltaic plants along with suitable central financial assistance
• MNRE sanctioned subsidy equivalent to 5 MW of capacity to MPMKVVCL as the
nodal agency (first time a distribution licensee was made the nodal agency)
• MNRE also asked GIZ to support MPMKVVCL in development of the required
implementation framework for the implementation of the projects
• GIZ team along with services from Deloitte developed the framework and
projects got implemented
• Government of Madhya Pradesh supported the initiative and offered Government
buildings
Seite 3
Key considerations – from the perspective of
distribution licensee
Policy/Political
Regulatory
Commercial
Technical
Environmental
• Policy/Political
• Contribution to solar capacity addition in
state
• Creation of pilot / demonstration projects
• Regulatory
• Adherence to Solar Purchase Obligation
• Commercial
• Lower ACoS (Solar Energy)
• Lower energy purchase and renewable
purchase obligation
• Technical
• Reduction in line/T&D losses
• Improved power quality and deferred
investment in network assets
• Environmental
• No land requirement
Seite 4
Large Scale Ground Mounted vis-à-vis rooftop solar
photovoltaic plants
For large scale projects, MPPMCL had conducted a bidding under category I in two
phases and it was expected that with the capital subsidy available from MNRE, the
cost to the distribution licensee would be lower
Bidding Year Requisitioned
Capacity (MW)
Capacity
Allocated (MW)
Weighted Average
Tariff (Rs/kWh)
Phase 1 2012 200 200 8.03
Phase 2 2014 100 100 6.84
Source: MP Solar bidding results
Results from tender of large scale ground mounted systems
Bidding Bhopal (Tariff in
Rs/kWh)
Indore (Tariff in
Rs/kWh)
Jabalpur (Tariff in
Rs/kWh)
Rattan India Apna
Solar
5.18 (1.5 MW) 4.9 (1.5 MW) 5.11 (2 MW)
Results from tender of rooftop solar photovoltaic projects
Seite 5
Benefit of Rooftop Solar Photovoltaic to the DISCOM
1 kWh generated at load centre can save generation of 1.5 kWh by fossil fuel based plants
Transmission
Network Distribution
Network
1 kWh 5%, 0.95 kWh 25%, 0.72 kWh
• Out of approx 1090 Billion Units consumed, approx. 400 BU is lost in wires
• 40 GW rooftop (generated at load centres) shall translate to 60-70 Billion units
On the other hand
• India shall be a power surplus nation soon. CEA anticipates 1.1% surplus electricity in 2016-17
• Keeping existing PPAs intact, avenues of further consumption of electricity should be discovered
(Electric Vehicles, Pumped hydro etc.)
• Distribution licensees should consider a separate, dedicated power trading team within their
organization (Some states have to sell surplus electricity)
Seite 6
Lower Energy Purchase – RPO/SPO
• Solar Rooftop PV systems provide energy at consumption end
• Savings in T&D losses => less overall energy purchase
• Less energy purchase =>less RPO/SPO
• Bigger the rooftop capacity, larger the commercial benefits
(Year 2013-14) Energy
Purchase (MU)
Solar Purchase
Obligation (SPO)
(MU)
Non -Solar Purchase
Obligation (RPO)
(MU)
Central Discom 17992.0 143.9 845.6
Central Discom
(with solar rooftop
PV -5 MW project)
17980.3 143.8 845.1
Savings in Energy
(MU) 11.7 0.1 0.5
Savings (in Rs. Cr) Rs. 3.36Cr* - -
* @ APPC of Rs.2.87/kWh
Seite 7
Implementation arrangement of the project
9/20/2016
Sanctioning of suitable CFA from MNRE
Technical Assessment of the sites (before organizing the competitive bidding)
Approval from Government of Madhya Pradesh for offering roofs of Government buildings to the developer at zero cost)
Competitive bidding including capital cost and tariff as parameters (requirement from MNRE and requirement from Distribution licensee)
Signing of lease agreements
Signing of Project Implementation Agreement (Agreement between nodal agency and developer)
Signature of Power Purchase Agreements (MPPMCL on behalf of respective distribution licensees)
Seite 8
Status of projects
9/20/2016
City Distribution Licensee Allocation
(kW)
Capacity Commissioned
No of
sites
Total capacity
(kW)
Bhopal
Madhya Pradesh Madhya
Kshetra Vidyut Vitaran
Company Ltd.
1500 19 983.78
Indore
Madhya Pradesh
Paschim Kshetra Vidyut
Vitaran Company Ltd.
1500 17 1340.38
Jabalpur
Madhya Pradesh
Poorv Kshetra Vidyut Vitaran
Company Ltd.
2000 22 1164.32
Total 58 3488.48
Seite 9
Key learnings / Challenges faced
9/20/2016
Lease Agreements
• Lease agreements attract payment of appropriate stamp duty as per
provisions in the state and generally linked with the value of the roof.
Competitive bidding
• Distribution licensees procure electricity based on tariff based Competitive
bidding and the subsidy from MNRE is on the basis of % of Capital cost ( A
mechanism had to be devised)
• Competitive bidding is a very time consuming process. Had it been a simple
fixed feed-in-tariff mechanism, implementation would have been quick
Capacity Building
• Capacity building and awareness at various levels within the state was not
there and hence further delays in project implementation.
Seite 10 9/20/2016
Pictures at Glance
Seite 11
Key Considerations - development of rooftop PV
9/20/2016
• Regulatory interventions may be devised to accommodate revenue
losses by distribution licensees, impact of cross subsidy, impact on
consumers
• Distribution licensees may be incentivised appropriately in case of any
impact
• New areas of electricity consumption / power trading by distribution
licensees may be developed, considering surplus electricity possibilities
in the future (Commissions are asking licensees to sell surplus
electricity at Rs. 2.5/kWh or so)
Seite 12
Thank you!
9/20/2016
For further queries, please contact:
Mr. Baljeet Singh Khanooja
General Manager (Commercial)
Madhya Pradesh Madhya Kshetra Vidyut Vitaran Co. Ltd.
E: [email protected] / [email protected]
Mr. Sandeep Goel / Mr. Hemant Bhatnagar
Indo German Energy Programme
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
