Implemented by Project Development and Business models for implementation of solar energy in Metro Rail Infrastructure Workshop on Promoting use of solar energy in Indian Metro and Rail Transport Infrastructure 10 Jan 2015, Metro Bhawan, New Delhi Sandeep Goel, Commercialization of Solar Energy in Urban and Industrial Areas (ComSolar), GIZ

Our profile Owned by the Federal Republic of Germany Implemented by Our profile Owned by the Federal Republic of Germany Operations in Germany and in over 130 countries around the world Around 17,000 employees Operates in India since 60 years, currently 250 staff members in India GIZ is working in areas in which demand in India’s emerging economy is high and in which Germany is particularly strong. GIZ is a German federal enterprise. The sole shareholder of GIZ is the Federal Republic of Germany, which is represented by the Federal Ministry for Economic Cooperation and Development (BMZ) and the Federal Ministry of Finance (BMF). GIZ is organised as a private-sector entity and can be contracted directly. The Management Board, the Shareholder and the Supervisory Board are the three organs required under German law for a GmbH (roughly equivalent to a limited liability company). The Chair of GIZ’s Management Board is Tanja Gönner. GIZ has a five-strong Management Board, with Tanja Gönner, Christoph Beier (Vice-Chair of the Management Board), Tom Pätz, Hans-Joachim Preuß and Cornelia Richter. GIZ supports the German Government in achieving its objectives in the field of international cooperation for sustainable development. To put it another way: GIZ is a federal enterprise which supports change – for Germany – around the world.

GIZ project “ComSolar” Implemented by GIZ project “ComSolar” www.comsolar.in Objective is to develop and demonstrate viable models for commercialisation of solar energy in urban and industrial areas in India Part of the International Climate Initiative (ICI) of the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) 100% financed by German government / ICI with the objective to support partner countries for climate protection ComSolar is based on a bilateral implementation agreement between the Governments of India and Germany (MNRE & GIZ) ComSolar/GIZ has been supporting DMRC to implement first light- house PV rooftop project

What is Rooftop Solar Electricity? Implemented by What is Rooftop Solar Electricity?

Rooftop Solar Electricity Implemented by Rooftop Solar Electricity

Implemented by How it works?

Key figures for Rooftop solar electricity Implemented by Key figures for Rooftop solar electricity Numbers for 1 kW PV system Area required 8-12 sq.m Electricity Generation Approx 1300-1600 kWh/year Life of the PV modules Normally guaranteed for 25 years Typical Costs Without battery costs about INR 80,000 - INR 1,00,000*. Larger the system size, less is the per kWp price. Government incentives Ministry of New and Renewable Energy now provides 15% capital cost subsidy depending on schemes and budget**. Savings/Payback The cost is mostly recovered in 6-8 years **Source: www.mnre.gov.in

How much PV capacity should you install? Implemented by How much PV capacity should you install? Depends on lot of factors e.g., Objectives - Meet internal consumption or install maximum as much as you can Internal electricity demand (load curves) Available finances? Technical details of the roof Load bearing capacity, area available, orientation, shadow causing objects etc Government policies - Is net metering allowed? What are the regulations in the state?

Snapshot about German Solar market Implemented by Snapshot about German Solar market

In spite of low radiation levels, Germany shows strong commitment towards solar energy 1100-1300 kWh/m2 1250-2150 kWh/m2

Why is Germany pushing the pedal? The energy transition – 80% RE 2050 & nuclear phase out until 2022 – is planned to: Fight climate change Reduce energy imports Stimulate innovation & green economy Strengthen energy security & local economy (More: www.energytransition.de) Targets as per National action plan of Germany Share of RE in total Electricity consumption until % 2020 35 2030 50 2040 65 2050 80

RE Development in Germany since 1990

German PV Market 2012 Subsidies to be phased out by 2020 – 52 GW (Source: BSW-Solar, own calculations) By 31.12.2012: Total installed capacity: 32,400 MWp Number of grid connected PV systems: 1,280,000 Subsidies to be phased out by 2020 – 52 GW

Implemented by How Solar Energy benefits Metro Rail Corporations and society at large?

Not only utilization of vacant space, but solar saves cost as well! Implemented by Not only utilization of vacant space, but solar saves cost as well! Estimated DISCOM tariff* Solar LCOE without subsidy Solar LCOE with subsidy *Considering the same escalation for 2014-2039 as it was during 2009-2013

Situation is the same for most of the cities of India! Implemented by Situation is the same for most of the cities of India!

Environmental and Social benefits Implemented by Environmental and Social benefits Reduction in CO2 emissions 1kWp rooftop solar plant saves about 1 tonne of CO2 emissions every year. Saves transmission and distribution losses Rooftop solar also saves electricity which is lost in long transmission and distribution lines Green local value creation Creation of jobs (e.g. local installers), generation of local tax and lease revenues – all without producing any emissions

How can rooftop solar energy be implemented on the roofs? Implemented by How can rooftop solar energy be implemented on the roofs?

Possible Business Models Implemented by Possible Business Models Metro Corporation will invest in the PV plant and consume the electricity within the Station/Depot Benefit will be the savings on electricity from the Grid 1. Invest, Own, Operate & Consume Metro Corporation will invest in the PV plant and sell the electricity to the local discom Benefit will be revenue from sale of electricity 2. Invest, Own, Operate & Sell Metro Corporation will purchase electricity from a third party, who will invest, own and operate the PV plant Benefit will be hedging the electricity cost 3. RESCO (PPA) model

1. INVEST, OWN, OPERATE & CONSUME

Solar Energy Corporation of India EPC/System Integrator Company Implemented by Capital subsidy Business Model 1 Solar Energy Corporation of India State Nodal Agency* / Investment/EPC contract Metro Corporation Local DISCOM EPC/System Integrator Company Savings on electricity bill PV plant installation The Metro Corporation invests in the PV plant, consumes electricity internally and saves on electricity bills EPC – Engineering, Procurement and Construction *State Nodal Agencies - http://mnre.gov.in/file-manager/UserFiles/list_sna.pdf

2. INVEST, OWN, OPERATE & SELL Implemented by 2. INVEST, OWN, OPERATE & SELL

Solar Energy Corporation of India EPC/System Integrator Company Implemented by Capital subsidy Business Model 2 Solar Energy Corporation of India State Nodal Agency* / Investment/EPC contract Metro Corporation Local DISCOM EPC/System Integrator Company Tariff set by Regulatory Commission PV plant installation The Metro Corporation invests in the PV plant, sells electricity to DISCOM and earn revenue EPC – Engineering, Procurement and Construction *State Nodal Agencies - http://mnre.gov.in/file-manager/UserFiles/list_sna.pdf

3. RESCO MODEL

EPC/System Integrator Company Implemented by Business Model 3 Capital subsidy Power purchase agreement (PPA) Metro Corporation Third party investor Benefit Hedging electricity price Investment Electricity from PV plant A third party invests in the solar plant and the Metro Corporation signs a power purchase agreement with the investor PV plant EPC/System Integrator Company

How to implement rooftop solar plant? Implemented by How to implement rooftop solar plant? 1 6 7 See if roof is available Conduct a techno-commercial feasibility study Define objectives and finalize the business model Arrange finances, apply for loan, subsidy Prepare request for proposal or tender and ask for quotations Issue a work order or sign PPA Monitor the construction and get the project commissioned Keep an eye on electricity generation and O&M from the plant Enjoy the benefits 2 5 8 3 4 9

Implemented by Thank you! As a federal enterprise, GIZ supports the German Government in achieving its objectives in the field of international cooperation for sustainable development. Published by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered offices, Bonn and Eschborn, Germany Commercialisation of Solar Energy in Urban and Industrial areas (ComSolar) Indo German Energy Programme B 5/2, 1st Floor, Safdarjung Enclave, New Delhi 110 029 T +91 11 4949 5353 F +91 11 4603 6690 E sandeep.goel@giz.de I www.giz.de, www.comsolar.in Responsible Timon Herzog Author(s) Sandeep Goel Photo credits © GIZ/ ComSolar In cooperation with 11/11/2018