Partnership to Advance Clean Energy - Deployment (PACE-D) TA Program
Consultation Workshop: Accelerating Solar Energy Deployment inPublic Sector Undertakings
15th September, 2015
Presented byAnurag 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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Dec
entr
aliz
ed G
ene
ratio
n
Util
ity S
cale
Solar parks25 GW
Entrepreneur scheme10 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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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