1. D ISTRIBUTED G ENERATION SUCCESSFUL IMPLEMENTATION OF GRID-CONNECTED ROOFTOP PV PROGRAMMES 27 November 2013 ICORE 2013

2. Omkar.J@germi.res.in Outline  Introduction  Critical Aspects for Successful Implementation  Programme Structure for G’nagar rooftop o Govt. Roles o Transaction Structure o Financial Structure  Outlook of Rooftop Policy of Gujarat  Key Learning of 5 MW Gandhinagar PV Rooftop 2 Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

3. Omkar.J@germi.res.in Success of Grid Connected Rooftop PV Programme 3 Technical Configuration Implementation Long-Term Operation Commercial Viability Eventual Scalability Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

4. Omkar.J@germi.res.in Typical PV System Architecture 4 Photovoltaic Modules (Approx. 1 – 100 kW P ) Grid-tied inverter Meter 2: Solar Electricity Generation Meter 1: Conventional Electricity Consumption TransformerGrid Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

5. Omkar.J@germi.res.in Advantages of PV System Architecture 5  Relatively simple to install, operate and maintain.  Most popular and globally accepted configuration.  Disadvantage: No availability when grid is down. Meter 1: Conventional Electricity Consumption TransformerGrid Photovoltaic Modules (Approx. 1 – 100 kW P ) Grid-tied inverter Meter 2: Solar Electricity Generation Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

6. Omkar.J@germi.res.in Model II Net Metering 6  Relatively simple to install, operate and maintain.  Net Electricity consumed will be charged.  Issue of Non availability of grid is addressed Meter 1: Bi-directional Meter TransformerGrid Photovoltaic Modules (Approx. 1 – 100 kW P ) Grid-tied inverter Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

7. Omkar.J@germi.res.in Gandhinagar Photovoltaic Rooftop Programme  The Gandhinagar Photovoltaic Rooftop Programme (the “Programme”) marks the first distributed power generation programme in India in its true sense.   True Public Private Partnership, brings together… 7 o Government o Developers o Regulators o Home owners o Utility o R&D Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

8. Omkar.J@germi.res.in Aim of Programme  Gandhinagar Photovoltaic Rooftop Programme aims for… o net 5 megawatt of photovoltaic installations… o in distributed kilowatt-sized photovoltaic systems… o through a PPP mode… o to promote clean energy and energy security... o as a part of the Gandhinagar Solar City Initiative.  Greater outcome of this pilot Programme: o Establish a practice/ philosophy of distributed solar and other energy generation. o Bring a level of comfort to all stakeholders for further scale-up. o Encourage public participation. 8 Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

9. Omkar.J@germi.res.in Project Implementation Agreement (PIA) Transaction Structure among Stakeholders 9 GoG/ EPD (Project Proponent) GEDA (Nodal Agency) GERMI (Project Str., Bid Process) Azure Sun Energy (Capacity: 2.5 MW) SPV by SunEdison (Capacity: 2.5 MW) Torrent Power Ltd. (Off-taker) 2.5 MW GPCL (Implementing Agency) IFC & Consultants (Transaction Str. Advisor) GERC (For Regulatory Approval) GoG (For Govt. Approval) PPA, based on GERC solar tariff Approvals FundingG.R. Screening & Selection 2 MW Govt. Rooftops 0.5 MW Private Rooftops 2.5 MW Green Incentive Selection through RFP Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

10. Omkar.J@germi.res.in Project Implementation Agreement for ‘Viability’ tariff funding Financial Transaction Model 10 Torrent Power Ltd. (Off-taker) 2 x Project Developer (Capacity: 2.5 MW ea.) GPCL (Implementing Agency) Private Rooftops: 1 MW Govt. Rooftops: 4 MW -R&B -Education -Legal -Forest & Environment -Industries & Mines -Agriculture -Health & Family Welfare -Vigilance -Collectorate -Revenue -(Can be replaced by Commercial Rooftops/ Terraces) Power Purchase Agreement based on GERC solar tariff of Rs. 12.44 /kWh (w/o AD: Rs. 11.14 /kWh) P P A P I A ‘Green Incentive’ Agreement Generation-based, minimum Rs. 3 per kWh Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

11. Omkar.J@germi.res.in Implementation Process at G’nagar 11 Distributed Generation- ICORE 2013; 27 Nov. 2013 Developer Submits the Plant Drawing Developer Starts Installation A= Day 0 PV Capacity allotted to the Developers 1.GERMI approves Drawing 2. Once approved by GERMI CEI also approves it 1.GERMI approves Drawing 2. Once approved by GERMI CEI also approves it B=A+3 days Regular Inspections are done at the site Completes PV DC Installation 1.GERMI Inspects and give Installation Certificate 2. CEI simultaneously inspects and give Certificate 1.GERMI Inspects and give Installation Certificate 2. CEI simultaneously inspects and give Certificate C= B + 20 days( for 70 kw PV system ) D= C + Within 2 Days Pulkit.d@germi.res.in

12. Omkar.J@germi.res.in Implementation Process at G’nagar Distributed Generation- ICORE 2013; 27 Nov. 2013 12 Ask GERMI/CEI for Commissioning Test GERMI & CEI Performs Commissioning Test GERMI & CEI Provides Commissioning Certificate Submits it to DisCom and PV Plant becomes Live Start Paying Tariff to Developer Within 2 Days Submits Certificates to DisCom DisCom installs meter and connects the Plant to the Grid. Within 2 Days Pulkit.d@germi.res.in

13. Omkar.J@germi.res.in Consolidated Status as on 07 Nov, 2013 Sr.StatusAzureSunEdisonTOTAL 1Commissioned2,200.00 kW1599.77 kW3,799.77 kW 2Installed000.00 kW237.00 kW237.87 kW TOTAL2,200.00 kW1,830.77 kW4,030 kW 13 Installations on Private Residential Premises Total Energy Generated Till 23 July 2013 : 4,37,000 Green Units Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

14. Omkar.J@germi.res.in Installations under 5 MW Gandhinagar Programme 14 60.48 kW @ Lokayukta, Sector 10 80.61 kW @ Govt. Arts College, Sector 15 80.61 kW @ Govt. Arts College, Sector 20 264.04 kW @ Jivraj Mehta Bhavan Nos. 1, 2 and 4, Sector 10-b Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

15. Omkar.J@germi.res.in PV Installation on J.M. Bhavan 15 Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

16. Omkar.J@germi.res.in PV Installation on J.M. Bhavan (2) 16 Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

17. Omkar.J@germi.res.in Green Incentive: Aid to Roof-owners  ‘Green Incentive’ is the minimum generation-based incentive for participating Roof-owners specified by GoG.  Advantages: o Encourage awareness and participation among roof-owners. o Will be correlated to home-owner’s electricity bill. o Should not be compared to ‘constant’ (or ‘dead’) lease rental. 17 Plot Size (Sq. m.) Built-up Area (60%) Typical Solar Area (30%) Typical PV Capacity (kW) Monthly Generation (kWh) Green Incentive (Rs.) @ Rs. 2/ kWh @ Rs. 3/ kWh @ Rs. 4/ kWh 503091 135 270405540 704212.61.5 202.5405607.5810 8148.614.582 2705408101080 905416.23 40581012151620 1358124.34 540108016202160 200120366 810162024303240 250150457 945189028353780 33019859.48 1080216032404320 Distributed Generation- ICORE 2013; 27 Nov. 2013

18. Omkar.J@germi.res.in Future Outlook  New Cities – 5-10 MW each: o Bhavnagar o Mehsana o Rajkot o Surat o Vadodara  Incorporation of Rooftop Photovoltaics at Policy and Regulatory Level.  Explore different implementation models: o Feed-in or net metering? o Third party/ Developer driven or private ownership? 18 The Gandhinagar Solar Rooftop Programme is selected as on of the TOP 10 DEALS OF ASIA-PACIFIC by Infrastructure Journal. Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

19. Omkar.J@germi.res.in Learning of Critical Aspects  How appealing is the Green Incentive? o What is the value of my roof?  How appealing is the Third-Party Model? o Am I willing to sign a 25-year lease agreement? o Why can’t I get the full benefit of my PV system?  Interdependency of Contracts and Financial Closure: o Lease Agreement  PIA  PPA.  Implementation: o Coordination between Statutory Bodies, Regulator, Chief Electrical Inspector, DisCom, Building Owners/ Govt. Departments, Developer, Financer, Project Management, Social. 19 Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

20. Omkar.J@germi.res.in Evolution & Implementation of Rooftop Solar PV Installations for Gujarat  Model I: Capital cost borne by the Government o Advantage: Ease of implementation, and widely implemented. o Disadvantage: Ownership issues, and hence, maintenance suffers. o Example: Most rooftop solar installations by various governments throughout India (including GEDA).  Model II: Public Private Partnership o Example: 5 MW Gandhinagar Rooftop Solar Programme. o Advantage: Generation-based incentive ensures long-term utilization. Government interaction with limited number of credible Developers. Standard quality and optimization of PV installations. No upfront cost to Government/ Utility. o Disadvantage: Property owners unwilling to sign long-term lease agreements. Incentives from solar generation not enough compared to real-estate lease. 20 Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

21. Omkar.J@germi.res.in Model III: Individual Ownership (Proposed in Current Rooftop Solar Policy)  Advantage: o Equal opportunity to smaller rooftop owners. o Ownership of individual is well-defined. o Investors reap the direct benefit of electricity and also become energy aware/ efficient. o Investment yields definite returns. o Potential for widespread public deployment. o Successful model globally.  Challenge: o Investment expected from someone who does not understand technology. o Capital subsidies required to incentivize participation (under net-metering scheme). o Direct dealing of DisComs directly with Customers. 21 Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

22. Omkar.J@germi.res.in Policy Implementation: Preparatory Phase  DisComs: Obvious focal agency o Specify standards of interconnection and Net-Meter. o Set up internal process viz. accepting applications for interconnection, PV system commissioning, regulatory compliance, billing.  State Nodal Agency: GEDA o Empanelment of Channel Partners/ Installers. o Avail necessary funds from State Dept., Central Ministries. o Act as a single-window for disbursing subsidies. o Publicize and monitor overall progress.  Channel Partners/ Installers o Link between System Owners and DisCom/ GEDA for administrative procedures. o Comply with relevant guidelines of safety, standard, performance outlined by DisCom, GEDA, MNRE, GERC, CEA, etc.  Eligible Entities/ System Owners o Only employ Channel Partners/ Installers empanelled by GEDA. o Apply for interconnection of rooftop PV system. o Comply with any other approvals/ clearances required from time to time. o Shall be final beneficiaries of subsidies. o Shall own and be responsible for operation of PV systems. 22 Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

23. Omkar.J@germi.res.in Policy Implementation: Preparatory Phase 23 GEDA Empanels Channel Partners/ Installers. DisComs set up standards for Net-Metering. GEDA Educates Channel Partners with compliance requirements. GEDA publically promotes Rooftop Solar Policy/Programme DisComs set up internal processes for: 1.Accepting and scrutinizing customer applications, and 2.Commissioning PV systems. DisComs set up internal processes for: 1.Accepting and scrutinizing customer applications, and 2.Commissioning PV systems. Channel Partners commence their own marketing. Rooftop Solar Policy is Launched. Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

24. Omkar.J@germi.res.in Policy Implementation: Implementation Phase 24 Eligible Entity contacts Channel Partner. Channel Partners undertak- es feasibility of installation. Eligible Entity, via Channel Partner, applies to GEDA for subsidy. GEDA approves: 1.Subsidy subject to fund availability, and 2.PV System capacity subject to DisCom’s and CEI’s clearance. GEDA approves: 1.Subsidy subject to fund availability, and 2.PV System capacity subject to DisCom’s and CEI’s clearance. DisCom: 1.Verifies installation, and 2.Installs Net-Meter to commission the system. DisCom: 1.Verifies installation, and 2.Installs Net-Meter to commission the system. Channel Partner installs rooftop PV system. Eligible Entity, via Channel Partner, applies to DisCom for interconnection. DisCom bills System Owner based on net consumption. System Owner owns and operates the PV system. CEI’s Approves: 1.Capacity of installations CEI’s Approves: 1.Capacity of installations Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

25. Omkar.J@germi.res.in A Unit of Energy SAVED= 2 Units of Energy GENERATED

26. D ISTRIBUTED G ENERATION SUCCESSFUL IMPLEMENTATION OF GRID-CONNECTED ROOFTOP PV PROGRAMMES 27 November 2013 ICORE 2013

27. Omkar.J@germi.res.in Backup Slides… 27 Distributed Generation- ICORE 2013; 27 Nov. 2013

28. Omkar.J@germi.res.in Successful Developers  L1: Azure Sun Energy Pvt. Ltd. (“Azure”)  L2: Ananth Solar Power Maharashtra Pvt. Ltd. (“SunEdison”) o A subsidiary of SunEdison Energy India Pvt. Ltd. 28 AzureSunEdison Quoted Tariff:Rs. 11.21 /kWhRs. 11.793 /kWh GERC Relevant Tariff:Rs. 11.14 /kWhRs. 12.44 /kWh Torrent pays:Rs. 11.21 /kWhRs. 11.793 /kWh GoG-PIA (GPCL) Pays:Rs. 0.07 /kWh--- Distributed Generation- ICORE 2013; 27 Nov. 2013 Pulkit.d@germi.res.in

29. D ISTRIBUTED G ENERATION SUCCESSFUL IMPLEMENTATION OF GRID-CONNECTED ROOFTOP PV PROGRAMMES 27 November 2013 ICORE 2013