Indo-European Workshop on Solar Energy 21 April, 2011 IIT Jodhpur Policy, Regulatory & Financing Issues

Topics Mission Road Map Phase-I Targets –1000 MW >=33 kV –100 MW < 33 kV –200 MW Off-Grid Scheme Funding Requirements Policy Enablers Standard Project Appraisal

Mission Road Map PhasesIIIIII ApplicationsUnits Grid including roof top MW Off-GridMW Thermal Collector Area Million m

Phase-I Targets Total target for 1 st Phase : 1,300 MW –Grid Connected (>=33 kV) : 1,000 MW –Rooftop Systems (<33 kV): 100 MW –Off-Grid Applications  Solar PV Projects: 200 MW  Collector Area: 7 Mn m 2

1000 MW Grid Connected Projects Project Size  PV: 5 to 25 MW  Th: 20 to 100 MW To be purchased by CERC tariff NVVN to get equivalent MW from NTPC Annual tariff review by CERC Utilities need to pay at bundled tariff rate Evacuation at >= 33 kV Utility can meet their Solar RPO

Funding Requirements – 1000 MW Envisages equal share b/w PV & Thermal PV Capex Requirements = Rs 7500 Cr Cost- PV = Rs 15 Cr/ MW (appx) Th Capex Requirements = Rs 7000 Cr Cost- Th = Rs 14 Cr/ MW (appx)

100 MW Grid Connected Projects Project categories (Connected to Distribution Side) –HT Level (< 33 kV):100 kW-3 MW (90 MW Capacity) –LT Level (440/ 230 V):<100 kW (10 MW Capacity) State Led programme –Selection of Projects by State Competent Authority –Issuance of Tariff Order by concerned SERCs –PPA with State Distribution Utility GBI for 25 years through IREDA Tariff = CERC tariff - Rs. 5.50/unit with 3% annual esc Solar Developers to get SERC determined tariff rate

Funding Requirements 100 MW Projects (Rooftop & Small Solar Power Plants) –Capex Requirements = Rs Cr –Cost = Rs per Watt (appx)

Off-Grid Projects (200 MW + 7 Mn m 2 ) Implementation through multiple channel partners for rapid up-scaling Bouquet of Incentives –Capital Subsidy upto 30% of Cost –Soft Loans upto 5% interest rate –Viability Gap Funding –Green Bonds/ RE Vouchers IT enabled monitoring and verification

Funding Requirements Off Grid Scheme –Solar PV (200 MW) Rs 300/ Watt Capex = Rs 6000 Cr –Solar Thermal (4 Mn m 2, ETC & FPC) Rs 10000–11000/ m 2 Capex = Rs 4500 Cr

Policy Enablers Bundling of Power (NVVN) GBI (Roof-top & Small Plants) Fiscal Incentives –10-year tax holiday –Custom & excise duties exemption –Capital & Interest Subsidies (Off-Grid) Solar specific RPO

Project Appraisal Applicant’s Profile Project Profile –Technology used –Policy Enablers –PPA/ Tariff –Estimated Generation –Securities –O&M

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