EQ INT'L FEB'14 ISSUE by EQ Int'l Solar Media Group

Volume # 4 | Issue # 2 | February-2014 |

Pages#80 | Rs.5/-

I N T E R N AT I O N A L

Monitoring Solar Radiation to Improve Plant Performance Corrosion â&#x20AC;&#x201C; Solar Mounting Structures Perspective Interview with Reinhard Ling IBC SOLAR Innovative Electrical Balance Of Systems Solutions Exclusively From Schneider Electric From Vision to Action: Steady Progress in Renewable Energy Deployment across the GCC Countries

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EDITORIAL An Ultra Mega Solar Power Project (UMSPP) with a cumulative capacity of 4,000 MW will be set up in Rajasthan in the Sambhar Salts Limited (SSL) area close to Sambhar Lake, about 75 kms. from Jaipur. A Joint Venture Company (JVC) will develop the Solar Power Project on the surplus land available with SSL in Sambhar, Rajasthan with equity participation from Bharat Heavy Electricals Limited (26%), Solar Energy Corporation of India (23%), Hindustan Salts Limited (16%), POWERGRID (16%), SatlujJalVidyut Nigam Limited (16%) and Rajasthan Electronics and Instruments Limited (3%). The project set up on land provided by SSL will have equipment supplied by BHEL, power evacuation by POWERGRID, sale of electricity by SECI, O&M by REIL and project management by SJVNL. The Ministry of New and Renewable Energy has submitted a proposal to the Department of Economic Affairs (DEA) for posing to World Bank for loan assistance of USD 500 million for implementation of fi rst phase of 750 MW of an Ultra Mega Solar Power Project of 4000 MW cumulative capacity to be set up on vacant land of Hindustan Salts Ltd. at Sambhar, Rajasthan at a total estimated outlay of USD 1085 million. Nuclear vs. Solar in India As the cost of electricity generation by nuclear power plants, to be set up with the help of French and American companies, is turning out to be on the higher side, the Department of Atomic Energy is in a fi x over how to bring down the cost. The estimated cost by the DAE for Jaitapur Nuclear Power Plant (JNPP) in Maharashtra is around Rs 9 per unit while the cost for MithiVirdhi nuclear power project is around Rs 12 per unit. JNNSM Phase II Batch I Bidding Outcome Solar Energy Corporation of India (SECI) opened bids for the allocation under batch one of phase two of the National Solar Mission (NSM). A total of 68 bids were received from 58 developers, covering 122 projects with a cumulative capacity of 2,170 MW. Of this, 36 projects with a capacity of 700 MW opted to bid under the Domestic Content Requirement (DCR) part of the bidding process and the remaining 86 projects with a capacity of 1,470 MW opted for the open bids. Each part will eventually be allocated an equal 375 MW. With the DCR part of the bid being oversubscribed twice over and the non-DCR (open) part four times over, it is likely that the entire capacity of 750 MW will be converted into Letters of Interest (LoIs) by 10th March 2014. The results of the financial bid are to be announced by 20th February 2014. SECI allocates 8.75 MW of rooftop PV capacity Solar Energy Corporation of India (SECI) announced results for third phase of allocations under the rooftop PV projects scheme in select cities. A capacity of 8.75 MW has been allocated across 21 projects in nine cities: Chennai, Coimbatore, Delhi, Kolkata, Mumbai, Pune, Palatana, Chandigarh and Gwalior. Capacities allocated to individual project developers range between 250 kWp to 1.75 MWpwith highest capacities allocated to TATA Power Solar (1.75 MW), Ravano Solar India (1.5 MW) and Waaree (1.25 MW). Tamil Nadu solar market in peril In Tamil Nadu (TN), the Solar Purchase Obligation (SPO) order, mandating HV power consumers to buy 3-6% of solar power, has been set aside by a TN appellate tribunal on technicalities. In a recent move the state has drafted guidelines to increase the solar RPO from 0.5% to 2% for the next two years. CERC Proposes Revised CAPEX & Tariffs of Solar PV Projects As part of its annual revision of Renewable Energy tariffs, the Central Electricity Regulatory Commission(CERC) has proposed a generic levellised generation tariff for solar PV for FY 2014-15 as Rs. 6.99/kWh(without Accelerated Depreciation) and Rs. 6.33/kWh(with Accelerated Depreciation). This tariff was arrived at, on the basis of the capital cost of Rs. 6.12 Crore/MWp. This capital cost has seen a steep, almost 25% drop of the capital cost from the previous year.

Anand Gupta Editor & CEO

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SOLAR ENERGY

CONTENTS SOLAR ENERGY

VOLUME 4 Issue # 2

Dr. Jaya Singh 16

ANAND GUPTA anand.gupta@EQmag.net

Monitoring Solar Radiation to Improve Plant Performance

Milind Arbatti 18

PUBLISHER:

Gefran India Pvt. Ltd.: Solar Pump Controllers a unique and methodic solution for AC Water Pumping Systems.

ANAND GUPTA

TRENDS & ANALYSIS

SAUMYA BANSAL GUPTA saumya.gupta@EQmag.net ARPITA GUPTA arpita.gupta@EQmag.net

PUBLISHING COMPANY DIRECTORS:

SOLAR ENERGY

PRINTER:

SOLAR ENERGY

ANAND GUPTA

ANIL GUPTA

ANITA GUPTA

Consulting Editor:

Ruud Ringoir

Editorial Contributions:

Sales & Marketing:

GOURAV GARG gourav.garg@EQmag.net

Subscriptions:

PIYUSH MISHRA piyush.mishra@EQmag.net

Layout and Design:

The Use Of Pyrheliometers And Pyranometers In Solar Monitoring

MENA REGION

Dr. Jaya Singh, Milind Arbatti, Dwipen Boruah, Dr. Ali Nourai, Franz Xaver Boessl, Ruud Ringoir, Chandan SINGH , Harish Krothapallli, Anurag Garg, Dr Umashankar S , Saketh Dogga, Sumanth kumar, Dr Saima Munawwar, Vaibhav Singh, Vibhash Garg, Smt.Romila Dubey, Shri Virinder Singh, Shri Gurinder Jit Singh, Alok Gupta, A.B.Bajpai, Rakesh Sahni

Harish Krothapallli 34

Corrosion – Solar Mounting Structures Perspective

SOLAR THERMAL

SURENDRA BAJPAI

MD SUHAIL KHAN

Printing Press:

PRINT PACK PVT. LTD. 60/61, Babu Lalbhchnad Chajlani Marg, Distt-Indore, (Madhya Pradesh)

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Disclaimer,Limitations of Liability While every efforts has been made to ensure the high quality and accuracy of EQ international and all our authors research articles with the greatest of care and attention ,we make no warranty concerning its content,and the magazine is provided on an>> as is <<basis.EQ international contains advertising and third –party contents.EQ International is not liable for any third- party content or error,omission or inaccuracy in any advertising material ,nor is it responsible for the availability of external web sites or their contents

From Vision to Action: Steady Progress in Renewable Energy Deployment across the ....

Vibhash Garg 46

Solar Concentrators For High Temperature Applications

The data and information presented in this magazine is provided for informational purpose only.neither EQ INTERNATINAL ,Its affiliates,Information providers nor content providers shall have any liability for investment decisions based up on or the results obtained from the information provided. Nothing contained in this magazine should be construed as a recommendation to buy or sale any securities. The facts and opinions stated in this magazine do not constitute an offer on the part of EQ International for the sale or purchase of any securities, nor any such offer intended or implied Restriction on use The material in this magazine is protected by international copyright and trademark laws. You may not modify,copy,reproduce,republish,post,transmit,or distribute any part of the magazine in any way.you may only use material for your personall,Non-Commercial use, provided you keep intact all copyright and other proprietary notices.If you want to use material for any non-personel,non commercial purpose,you need written permission from EQ International.

EQ February 2014

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Dr. Ali Nourai 22

INTERVIEW Reinhard Ling 39

Business Manager

8-15

A New Nine Level Symetrical Inverter Derived From Seven Level Inverter

POLICY & REGULATION

Suo-Moto Proceedings Initiated By The Uttarakhand ERC For Non-Compliance By UPCL Of RPO APTEL Set Aside Tamil Nadu’s Solar Rider MERC Directs BEST To Fulﬁl The Solar Target On A Cumulative Basis By FY 2015 - 16

SOLAR INVERTERS 36

Using Distributed Architecture Inverter Systems In Large Scale Solar Arrays To Maximize Performance

SOLAR THERMAL 50

High-Vacuum Flat Solar Thermal Panels: Proven High Efﬁciency and Insensitive to Dust for Air Cooling Applications

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Dr Umashankar S 42

SOLAR ENERGY BMD Solar Pv Power Plant India Connector Are Essential Factors in PV plant

Security systems for PV parks, a normative approach

Innovative Electrical Balance of Systems solutions exclusively from Schneider Electric

Business Manager

EQ BUSINESS & FINANCIAL NEWS

Franz Xaver Boessl 26

Anurag Garg

IBC SOLAR

Impacts of Distributed Renewables and Storage on Energy Delivery Systems

SOLAR INVERTERS

Earthing of PV Systems

SOLAR INVERTERS

Dwipen Bor 20

SOLAR ENERGY

CONTENTS

Before The Haryana Electricity Regulatory Commission In The Matter Of : RPO Punjab State Electricity Regulatory Commission Sco No. 220-221, Sector 34-A, Chandigarh MERC Allows Tata Power-D to fulfill Solar RPO by end of Control Period i.e. FY 201516 CERC : Benchmark Capital Cost Norm For Solar PV And Solar Thermal Technologies, For FY 2014-15 Madhya Pradesh : In The Matter Of Fulfillment Of Solar RPO By Obligated Entities For FY 2011 - 12 & FY 2012 13 And Punishment For Non - Fulfillment Of The Same.

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PRODUCT REPORT-75

EQ February 2014

& EQBusiness Financial World Bank Finance for Solar Projects The Ministry of New and Renewable Energy has submitted a proposal to the Department of Economic Affairs (DEA) for posing to World Bank for loan assistance of USD 500 million for implementation of first phase of 750 MW of an Ultra Mega Solar Power Project of 4000 MW cumulative capacity to be set up on vacant land of Hindustan Salts Ltd. at Sambhar, Rajasthan at a total estimated outlay of USD 1085 million.

The project is envisaged to be set up by a Joint Venture of six PSUs: Bharat Heavy Electricals Limited, Solar Energy Corporation of India, Hindustan Salts Limited, POWERGRID, SatlujJalVidyut Nigam Limited and Rajasthan Electronics and Instruments Limited. AnMoU in this regard has been signed amongst these PSUs recently.

DEA is processing the case and this can be considered by the World Bank once DEA forwards to the World Bank. The Government has not availed any loan from the World Bank in the 11th and 12th Plan period for the development of solar energy sector in the country.

Welspun Energy signs MoU with Government of Punjab to set up 150 MW solar project WEL to invest INR 1350 crore as part of the MoU India’s leading clean energy developer Welspun Energy Limited (WEL) today announced an MoU with Punjab govern ment to set up solar power project of 150 MW capacity. WEL will invest over INR 1300 crore fo r setting up this solar project over the next three years. WEL is already developing a 35 (DC) MW solar project in the state of Punjab. This 150 MW project, slated to begin commercia l operations by 2017, will bring relief to the state of Punjab that has been facing insufficient and erratic power supply and been battling high power tariffs. A recent report by the Cent ral Electricity Authority (CEA) claimed that the State of Punjab is likely to experience an overall power shorta ge of 19.7% and the peak shortage of 25.6% in 2013-14. Mr. Vineet Mittal, Managing Di rector Welspun Energy Ltd. said, “ The partnership with Government of Punjab is in line with our commitm ent

of lighting India with clean, sustainable energy. Our position as the leading clean energy developer in the country makes us the ideal partners for this project. We look forward to working in close collaboration with the local authorities to develop efficient and world class solar capacities for the state. ” This 150 MW project would put P unjab in race for renewable ener gy with leading states like Gujarat and Rajasthan. The Photovoltaic project will supply clean energy to power 0.72 million families. With the commissioning of this proj ect, an estimated 24,96,602 tonnes of carbon dioxide emissions will be mitigated each year. Presently, Punjab has an installed solar cap acity of around 9 MW. The state government is aggressively working towards increasing its de pendence on non-conventional sources of energy for power generation. As part of these efforts, th e state awarded projects to 26 private players for setting up 250 MW solar power units in 2013. Welspun Energy has built expertise in constructing mega

capacity projects and is one of the largest renewable energy plant developers across the country. It holds th e unique distinction of bagging the Asia’s largest and world’s second la rgest solar power project of 151 (DC) MW at Neemuch. According to independent industry reports WEL’s solar projects are outperforming those developed by other IPPs in similar environment and capacity. Welspun Energy has successfully de veloped it’s projects well befo re their scheduled deadline and at a lower cost ratio as compar ed to other players in this se ctor. WEL has more than 600 MW clean energy projects in the pipeline and most of these are already operational. The organization envisions developing power projects pan India, with Gujarat, Andhra Pradesh, Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, Tamil Na du being major states of focus. WEL’s power projects aim to contribute to the nation’s energy security agenda.

GOI Cabinet Committee on Economic Affairs: Amendments to the Guidelines for appraisal/approval of projects/schemes eligible for financing under the National Clean Energy Funds The Cabinet Committee on Economic Affairs has approved the proposal of the Ministry of Finance to amend the following guidelines for appraisal/approval of projects/schemes eligible for financing under the National Clean Energy Funds (NCEF): i. Amendment in the “guidelines for appraisal and approval of projects to be financed from the National Clean Energy Funds (NCEF) to enable financing of schemes / programmes of the Ministry of New and Renewable Energy (MNRE) already appraised through SFC/ 8

EQ February 2014

EFC channels if balances are available with the NCEF after financing projects are approved by Inter Ministerial group. This will be done with the approval of the Finance Minister. ii. In pursuance of the above amendment, two programmes of the MNRE namely Grid Interactive and Distributed Renewable Power and Research Design, Development in Renewable Energy will be financed from NCEF in 2013-14. By these amendments of the NCEF

guidelines, existing appraised and approved schemes / programmes for the new and renewable energy sector with objectives and purposes consistent with the purpose laid out in the Act for levying clean energy cess, are also made eligible for financing from the NCEF. As a consequence, financial resources with NCEF will be unlocked and made available for financing programmes / schemes in new and renewable energy sector. Fiscal resources freed up in the process can then be redeployed for other social sector programmes.

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& EQBusiness Financial 4,000 MW Ultra Mega Solar Power Project to be set up in Rajasthan; To be the largest single location solar electricity generation project in the world; BHEL, SECL, SSL, Powergrid, SJVN and REIL sign historic MoU An Ultra Mega Solar Power Project (UMSPP) with a cumulative capacity of 4,000 MW will be set up in Rajasthan in the Sambhar Salts Limited (SSL) area close to Sambhar Lake, about 75 kms. from Jaipur. Signifi cantly, with the commissionong of this plant and commercial utilisation of the harvested energy therein, this would become the largest single location solar electricity generation project in the world. A Joint Venture Company (JVC) will develop the Solar Power Project on the surplus land available with SSL in Sambhar, Rajasthan with equity participation from Bharat Heavy Electricals Limited (26%), Solar Energy Corporation of India (23%), Hindustan Salts Limited (16%), POWERGRID (16%), SatlujJalVidyut Nigam Limited (16%) and Rajasthan Electronics and Instruments Limited (3%). The project set up on land provided by SSL will have equipment supplied by BHEL, power evacuation by POWERGRID, sale of electricity by SECI, O&M by REIL and project management by SJVNL. The plant shall be set up in two phases over a period of 7 years with Phase I comprising 1,000 MW and the balance 3,000 MW in subsequent phases.The JVC shall be incorporated as a public limited company under the Companies Act, the JVC, under DHI and will have at its registered office in Delhi/NCR. To this effect, a Memorandum of Understanding (MoU) was signed among the six companies in the presence of Sh. Praful Patel, Hon’ble Union Minister of

Heavy Industries and Public Enterprises, Government of India, Dr. Farooq Abdullah, Hon’ble Union Minister of New and Renewable Energy and other dignitaries. Sh. B. PrasadaRao, CMD, BHEL; Sh. Mr. RajendraNimde, MD, SECI; Mr. R.K. Tandon, CMD, SSL; Mr. R.N. Nayak, CMD, Powergrid; Mr. R.P. Singh, CMD, SJVN and

Mr. A.K. Jain, CMD, REIL, signed the MoU. Directors on the board of BHEL as well as officials of the Ministry of Heavy Industries & Public Enterprises, BHEL, SECI, SSL, Powergrid, SJVN and REIL, were also present on the occasion. The solar Power Plant will rely on proven and reliable Crystalline Silicon technology supplemented by refinements in encapsulation hardware and Mounting configuration to surmount the harsh tropical environments. With an estimated plant life of 25 years, the generation potential of the 4,000 MW Solar plant is estimated to be 6400 million units of (Solar) electricity per year. This is expected to reduce the Carbon footprint by over 4 million tons per year. The mega

scale project will not only demonstrate the reliability of Solar PV power but also provide further impetus to this clean, cheap and abundant source of power. The implementation and commissioning of a utility scale 4000 MW Solar power plant presents critical design challenges and logistical planning strategies. The land development, alignment and topology of Solar arrays, Design of Power electronics, Electrical Power Distribution , evacuation strategy and the safety and statuary regulations all need to be diligently planned and worked out to also pave way for establishing a green corridor. The proposed Ultra mega solar project will not only demonstrate the utility of large scale Solar PV Power generation in Indian context but will also serve as peak load sharing in the existing grid especially in regions deprived of continuous reliable power. India, due to its geo-physical location, receives solar energy equivalent to nearly 5,000 trillion kWh/year. This is far more than the total energy consumption of the country today. Currently, India has about 2 GW of grid connected solar PV capacity. While India receives solar radiation of 5 to 7 kWh/m2 for 300 to 330 days in a year, power generation potential using solar PV technology is estimated to be around 20 MW/sq. km. and using solar thermal generation is estimated to be around 35 MW/sq. km. The above data suggests that there is tremendous scope for growth in the solar energy sector.

Frost & Sullivan Perspective on India and the UAE signing Cooperation Agreement for Sustainable Energy India and the United Arab Emirates’ (UAE) energy demands are expected to soar at a fast pace over the next couple of years, making the share of renewable energy pivotal to meet the increasing energy demands. This cooperation between the nations is clearly beneficial for both countries. Aspects like providing and training scientific and technical personnel would assist UAE in addressing the issue of qualifi ed manpower for this sector, which we see as one of the greatest 10

EQ February 2014

challenges facing the renewables sector in the country. On the other hand, the UAE has been able to commit substantially to areas like research and development and can hence, contribute positively to India when it comes to aspects like equipment and technology.

best practices and technical know-how considering India’s progress towards ramping up solar generation, post the announcement of Jawaharlal Nehru National Solar Mission as well as State specific Solar policies. With these synergies, both the countries are most likely to benefit mutually and enhance their capabilities significantly.

Apart from collaboration in workshops, R&D and technology areas, this cooperation also serves as a platform for learning and sharing

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Complies M with JNNS s regulation

& EQBusiness Financial Strong Growth Forecast for Solar PV Industry in 2014 with Demand Reaching 49 GW, According to NPD Solarbuzz Solar photovoltaic (PV) demand is poised for explosive growth in 2014, and is set to reach 49 gigawatts (GW), up from 36 GW in 2013, according to findings in the latest NPD Solarbuzz Quarterly. “The solar PV industry has reached a critical tipping point, with end-market demand hitting record levels almost every quarter,” added Finlay Colville, vice-president at NPD Solarbuzz. “This growth is being driven by leading module suppliers and project developers that returned to profi tability during 2013, and which have now established highly-effective global sales and marketing networks.” Q4’13 will be another record quarter for the solar PV industry, exceeding the 12 GW barrier for the first time ever. Furthermore, demand in Q1’14 will also achieve recordbreaking status, as the strongest first-quarter ever seen by the PV industry.

5 MW solar farm being completed every hour of the day. The record solar PV demand in Q4’13 is heavily weighted towards the three leading countries for end-market demand today: China, Japan, and the United States. Twothirds of all solar panels installed in Q4 will be located in China, Japan, and the US. The new record level of demand in 2014, along with increased outsourcing of solar PV wafers, cells, and modules to keep up with end-market growth, will drive production utilization rates above 90% for tier-1 manufacturers,. By the end of 2014, many of the leading

Chinese crystalline silicon module suppliers will be reporting silicon and non-silicon costs below $0.50 per watt. The resulting growth in operating margins will then provide a solid foundation upon which to guide new capacity additions that have been on hold now for 18 months. “Manufacturing over-capacity and pricing erosion within the PV industry was previously a key factor in limiting annual growth to 10-20% between 2011 and 2013,” added Colville. “With a more stable pricing environment and the prospects of increased end-market globalization, NPD Solarbuzz forecasts a return to annual growth above 30% for the PV industry in 2014.”

Figure: Solar PV End-Market Demand from 2008 to 2014

Over the six-month period from October 2013 to March 2014, the solar PV industry will install almost 22 GW, which is greater than all the solar PV installations that occurred between 2005 and 2009, during the previous high-growth phase of the industry that was driven by the European market. This 22 GW of demand is equivalent to 120 megawatts (MW) of solar PV installed every day for six months, and equates to one new Source: NPD Solarbuzz Quarterly, December 2013.

Vikram Solar And Cencorp Consider Opportunities For Business And Partnership Collaboration Vikram Solar Pvt, Ltd (“Vikram Solar”), an Indian company, and Cencorp Corporation (“Cencorp”) have started to review collaboration opportunities for using Cencorp’s MWT (Metal Wrap Through) technology for photovoltaic modules in Vikram Solar’s solar energy projects. MWT technology refers to Conductive Back Sheet (CBS) based module structure. The parties have signed a Term Sheet on collaboration on 7 February 2014. As agreed in the Term Sheet consideration of collaboration options shall take max. six months. During that 12

EQ February 2014

time the parties negotiate both business opportunities in photovoltaic module business and opportunities for ownership arrangements between the companies. Vikram Solar is the leading provider of solar energy projects in India and it belongs to a technology group Vikram Group (www. vikram.in). The negotiations for business and partnership collaboration between the parties, including detailed terms, are still under negotiations, thus it is not yet certain that the transactions will be materialized. Further, realization of the transactions

defined in the non-binding Term Sheet is subject to several issues such as due diligence and especially to Cencorp’s short and long term financing. Therefore, Cencorp is not yet able to estimate possible realization and effective date of the transactions, the transactions’ influence in Cencorp nor risks relating to them. Cencorp will announce further information as soon as the negotiations have been finished.

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& EQBusiness Financial Top 10 PV Module Suppliers in 2013 Based on existing company guidance and downstream channel checks - and supplemented by various estimates by company through to the end of 2013 - NPD Solarbuzz can now reveal the Top-10 PV Module Suppliers for 2013.

Figure: Top 10 PV Module Suppliers in 2013

Rankings are done specifically by full-year recognized module supply volume in MW (as opposed to revenues, for example). Full data covering the Top-20 suppliers will be featured in the next quarterly release of the NPD Solarbuzz Module Tracker Quarterly report at the end of January 2014. The Top-10 supplied over 18 GW of PV modules in 2013, representing a 40% increase compared to 2012. With global PV demand in 2013 only growing by 20%, it is clear that the industryâ&#x20AC;&#x2122;s leading players expanded market shares considerably in 2013. Yingli Retains Number 1 Ranking Position Yingli Green Energy maintained the number 1 position during 2013, and was the clear market-leader last year, by a considerable margin. Furthermore, during 2013, Yingli became the first ever module supplier to exceed more than 3 GW of supply in a single year. Qualification criteria to feature within the Top-10 list increased significantly during 2013, with all the entrants now being in the GW-supply category for the first time ever. Eight of the Top-10 companies in 2013 were also in the 2012 Top-10 list. During 2013, Renesola and Kyocera replaced Suntech and Sunpower, each of whom had featured in the 2012 listing. China and Japan Dominance Similar to 2012, seven of the Top-10 companies were public-listed, verticallyintegrated, c-Si manufacturers located in China. Sharp Solar, First Solar and Kyocera were the only non-Chinese based suppliers in the rankings for 2013. Therefore, nine of the Top-10 companies were headquartered in either China or Japan, with First Solar being the exception

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Source: NPD Solarbuzz Module Tracker Report

to this categorization. Once again, First Solar was the only thin-film producer in the Top-10, with healthy project pipelines providing strong pull on internal module supply. Trina Poised to Challenge for 2014 Top Spot Trina Solar became the second largest module supplier during 2013. Trinaâ&#x20AC;&#x2122;s module volume in 2013 grew by more than 60% compared to 2012. In fact, with aggressive targets being set for 2014, Trina is likely to challenge Yingli for the top ranking position in 2014. Japanese Resurgence, Courtesy of Domestic Market Pull The explosive growth of the Japanese PV market in 2013 provided the basis for strong growth in module supply from the leading Japanese brands.

not feature in the overall Top-10 listing, they were both among the Top-20 globally, with much higher shipment volumes compared to 2012. (Geographic shipments by quarter for Solar Frontier and Panasonic will be featured in the January release of the Module Tracker Quarterly.) Further Chinese Activity Jinko Solar and Renesola each made impressive progress in module supply during 2013, occupying positions 5 and 6 in the rankings. Their supply volumes were actually very close to one other. Hanwha SolarOne and JA Solar were ranked in positions 8 and 10, respectively. Each exceeded the 1 GW level for annual module supply for the first time in 2013. According to NPD Solarbuzz, Yingli Green Energy maintained leading module supplier ranking in 2013. Seven of the Top-10 were c-Si module makers based in China.

Sharp Solar increased its ranking to number three in 2013, providing a strong reversal in fortunes compared to a few years ago when Sharp was losing market share abroad. Sharpâ&#x20AC;&#x2122;s inclusion is all the more interesting, given its strategy to outsource large quantities of its production to OEM partners, and is one of the leaders in fab-lite operations in the PV industry today. Kyocera also enjoyed strong domestic demand and featured in ninth position. Although other major Japanese module suppliers, such as Solar Frontier and Panasonic, did

EQ February 2014

& EQBusiness Financial This is an IHS News Flash covering the top predictions for the global photovoltaic (PV) market in 2014, from a new white paper issued by the IHS Solar service at information and analytics provider IHS (NYSE: IHS). “After two years of a punishing downturn, the global solar industry is on the rebound,” said Ash Sharma, senior research director for solar at IHS. “Worldwide PV installations are set to rise by double digits in 2014, solar manufacturing capital spending is recovering, module prices are stabilizing and emerging markets are on the rise. However, challenges remain, including changes in government incentives and policy, an on-going backlash to the rapid rise of renewables and razorthin margins throughout the solar value chain.” Below are the top predictions for 2014 from the IHS solar research team. Double-Digit Growth Yet Again in 2014 as PV Installations Top 40 GW Despite multiple risks, IHS remains bullish about the development of the PV market in 2014 and fi rmly believes that global installations will be in the range of 40 to 45 gigawatts (GW), based on a bottom-up analysis of more than 100 countries. Against a backdrop of reduced support and incentives in major European markets, a still-fragile global economy and major trade disputes rocking the industry, the projected level for next year is a remarkable achievement for an industry that just four years ago installed less than half this amount. The attached figure presents the IHS forecast of PV installations in 2014 by country. PV Energy Storage Moves Beyond Hype in 2014 With the cost of solar energy plunging, demand for PV energy storage systems (PVESS) is booming, with installations set to quadruple in 2014. Worldwide installations of PVESS in 2014 will amount to 753 megawatts (MW), up from 192 MW in 2013. Strong growth will be generated by all three major segments of the market—i.e., residential, commercial and utility-scale PVESS. The largest growth will be in the commercial sector, driven by demand for intelligent electricity-consumption systems in buildings.

Persisting manufacturing overcapacity for PV modules will result in a 10 percent decline in average selling prices (ASPs) in 2014, prohibiting any further increase in profit margins for suppliers during the year.

NEM policies, the impact of any potential changes on the U.S. distributed PV industry is expected to be negligible in 2014.

2014 to Trigger Technology Upgrades and Return of Capital Spending

The rise of solar markets in Japan and China is spurring the rapid growth of the PV inverter business in those countries, boosting market share for domestic suppliers in 2013. Four of the world’s Top 10 inverter suppliers during the first nine months of 2013 were from China or Japan when ranked on a revenue basis, up from two in 2012. As Chinese and Japanese suppliers start to expand their international presence, IHS predicts that those that survive the intense competition will be well-placed to increase their global market share.

IHS predicts global capital spending in 2014 by producers of PV ingots, wafers, cells, modules and polysilicon will rise by a robust 42 percent to reach $3.3 billion. With demand shifting away from the developed solar regions of the United States, the European Union and China, PV manufacturers are gaining interest in running operations in emerging markets, a phenomenon expected to result in new factory openings and boosting local capital spending in areas such as the Middle East, South America and parts of Africa. Latin America to Install More Than 1 GW of PV Capacity in 2014 In 2014 Latin America will surpass a new milestone in the deployment of PV. IHS forecasts that installations in the region will soar to 1.4 GW in 2014, up from 300 MW in 2013. The majority of additions will take place in Chile and Mexico, countries without any conventional subsidies for PV. U.S. Net-Energy Metering Debate Continues in 2014 In mid-2013, net-energy metering (NEM) became one of the most contentious issues in the U.S. solar PV industry. However, while states including Arizona, Colorado and California are re-evaluating their

Asian PV Inverter Suppliers to Advance in 2014

China Unlikely to Reach Ambitious Distributed Solar Target in 2014 In November, China’s National Energy Administration (NEA)—a subsidiary of the National Development and Reform Commission (NDRC)—announced huge plans for 12 GW of PV projects in 2014. These consist of 8 GW of distributed PV and 4 GW of ground-mount systems. While the announcement is hugely encouraging for both the Chinese and global PV industry, IHS firmly believes that such an ambitious target for distributed PV installations is not achievable, and the reality is that actual totals will fall far short of this goal. PV Module Prices Will Continue to Decline Over the Long Term One solar industry thought leader is positing

PV Module ASP Declines to Keep Margins Slim in 2014 14

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& EQBusiness Financial the theory that PV module prices should stabilize or even increase during the period from 2013 to 2017. IHS begs to disagree. In its own investigation of market pricing trends and price correlation of innovation and learning effects, IHS has concluded that PV module prices will not remain ﬂat in the coming years. Rather, IHS believes that cost and price will decline by more than 40 percent in 2020 compared to 2013.

Unsubsidized PV Market to Take Off in 2014 High electricity prices and the falling cost of PV will allow 700 MW of unsubsidized PV to be developed worldwide in 2014, especially in regions with high irradiation and intense electricity demand.

feed-in tariffs (FITs), tax credits and tender schemes. In recent years, these subsidies have been scaled back as PV installations have grown rapidly, because lower system cost has made the original schemes very attractive and also costly to support for 20 years or more.

Historically the PV market has been driven exclusively by government subsidies, including

The Switch PVI 1000 (1 MW) outdoor inverter successfully commissioned as first for Tamil Nadu solar power plant in India The Switch, a leading supplier of megawattclass permanent magnet generator and fullpower converter packages for wind power and other renewable energy applications, successfully commissioned its 1 MW single module PVI 1000 solar inverter for Ultra Cosmic Solar Energy, a newly established Indian solar energy company. The Switch PVI 1000 solar inverter series features a totally sealed power and controls enclosure section rated IP65/NEMA 4. The inverter panels are installed outdoors on a simple concrete foundation. The inverters have a built-in, totally self-contained cooling system with no need for external cooling water or refrigerant. Therefore it is selfsustained; no site plumbing or external auxiliary power supply is required.

“We are excited to be onboard and support a new player in the Tamil Nadu solar business with equipment for their first solar power plant,” says C. Sundar, Country Manager for The Switch in India. “We have now established our local service resources to support our various renewable energy installations in India.” “India is a challenging market where the features of The Switch PVI 1000 inverter fit very well,” he continues. “In addition to the reliability and simplified installation, the fault ride-through and grid support capabilities are very valuable in locations where the grid is weak. The Switch has big plans to expand its solar inverter, wind converter and permanent magnet generator business in India by working with local partners for manufacturing.”

Dr. M. N. Sadasivam, Managing Director of Ultra Cosmic Solar Energy Private Limited, comments: “With our previous experience in wind power, we are happy to now add solar to our renewable power generation assets.” Mr. Ravi R S, Director of SJ Renewables, which is both the developer and the EPC (engineering, procurement and construction) contractor for this plant, justifies the selection: “Analysing from an owner’s perspective, the primary reason for choosing The Switch PVI 1000 is because it is an outdoor solution and requires no additional buildings with its integrated cooling system. We also expect low maintenance costs and very reliable operations.”

Cost of nuclear power proving high, DAE in a fix As the cost of electricity generation by nuclear power plants, to be set up with the help of French and American companies, is turning out to be on the higher side, the Department of Atomic Energy is in a fix over how to bring down the cost. On one hand, it is involved in hard negotiations with the companies and on the other hand, sources said, if the cost per unit turns out to be too expensive, then it may not even pursue the project with collaborators. The estimated cost by the DAE for Jaitapur Nuclear Power Plant (JNPP) in Maharashtra is around Rs 9 per unit while the cost for Mithi Virdhi nuclear power project is around Rs 12 per unit. Currently, the DAE is in negotiations with

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French company Areva to build six EPR reactors of 1650 MW each at Jaitapur. Sources pointed out that initial estimates state the cost of the project to be around Rs 27-30 crore per megawatt and the cost per unit to be around Rs 9 per unit in 2021.Speaking to reporters in Mumbai last month, R K Sinha, DAE Secretary, had said a competitive per unit tariff of Rs 6.50 has been estimated in the year of completion of Jaitapur project in 2020-21. In the case of Mithi Virdhi project where American company Westinghouse Electric is providing AP-1000 reactors, the cost per megawatt is coming to around Rs 40 crores while the cost per unit is around Rs 12.Although this project is yet to reach the

advanced negotiations stage, the DAE has already signed an Early Works Agreement with Westinghouse Electric. The DAE is skeptical about the proposal due to its high cost. It states that the cost per unit from the Kudankulam Nuclear Power Plant (KKNPP) unit 1 and 2 is around Rs 3.50 to Rs 4 per unit. “If we take inﬂation into consideration, even then the cost is very high. We are also answerable to people. Plus, there is a lot of opposition to nuclear projects where we have foreign collaborators.If nothing works out, then we will, perhaps, have to back out because of the high electricity generation cost from the project,” a senior DAE official said.

EQ February 2014

SO L A R ENERGY

Monitoring Solar Radiation To Improve Plant Performance Dr. Jaya Singh, Director, BKC WeatherSys Pvt. Ltd.

Performance Evaluation without Accurate Radiation Measurement is Meaningless. A critical component for any solar power project is solar radiation monitoring and measurement. Although this equipment presents a negligible fraction of total project cost (less than 0.1% of total project cost), it is the component most overlooked and over shadowed over other more capital intensive components. However, in this more mature phase of the Indian solar power industry, we are starting to see a shift in market needs when it comes to solar radiation measurements. Whatâ&#x20AC;&#x2122;s driving the shift? The focus on plant performance where the premise of performance depends on the amount of solar radiation incident on panels and how well the plant is able to convert and harness that radiation into energy. This sounds simple, but unfortunately conversations around performance tend to focus on the best way of evaluating it. The bottom line is this: plant performance must be benchmarked against the incoming irradiation. If there is an error in measurement of incoming radiation, calculations and estimates of losses are meaningless.

PV Module Performance varies from Standard Test Conditions Extrapolation of performance ratios based on Standard Test Conditions specified for PV panels is prone to error. As Standard Test Conditions (1000 W/mÂ˛ of solar radiation, 25 Â°C, Air Mass 1.5 and no wind) vary widely 16

EQ February 2014

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from real world field conditions, additional measurements using pyranometers and/or reference cells are required to monitor PV performance. Monitoring solar radiation under field conditions is not only is critical for evaluating performance, but also gives important inputs for maintenance and operational decisions. For example, pyranometers mounted at the tilt angle of the panel array can be used to calculate the arrayâ&#x20AC;&#x2122;s efficiency. While a gradual decline of efficiency may indicate a need for cleaning panels, a sudden drop of efficiency could signal failing panels.

Installation, Maintenance and Calibration are Important It is not sufficient to procure good quality instrumentation. Installation becomes key.

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We encounter situations in the field where an incorrectly mounted pyranometer (and the instances of how a pyranometer can be incorrectly installed are too many to list in this document), poor cabling, or poor site selection, shading with change of seasons, leads to nonsensical values of performance ratios as the input radiation parameters for calculation of performance is incorrect. Seemingly minor things purlin mounting for a pyranometer should preferably be powder coated in light color, as darker colors like red absorb the heat which radiates and can affect the output of the radiometer. Routine maintenance such as cleaning dust from the dome of a pyranometer, and changing desiccant where applicable, also becomes critical. Furthermore, all radiation measurement equipment require calibration after certain years of use in the field.

currently installed solar radiation monitoring equipment and our recommendations have a large bearing on the accuracy of measurements and consequently, on the evaluating performance of a plant.

Summary Solar energy may be a solution for addressing Indiaâ&#x20AC;&#x2122;s energy deficit. Given that solar power plants are capital intensive projects, ensuring project viability over the long term is key. Accurate measurement of incoming radiation is critical to assessing plant performance. WMO certified, NIST traceable instruments when installed, maintained and calibrated correctly, represent perhaps the highest yielding component on investment in solar plants. nnn

We routinely get requests for assessing

EQ February 2014

SO L A R ENERGY

Gefran India : Solar Pump Controllers A Unique And Methodic Solution For AC Water Pumping Systems. Milind Arbatti, Sales Manager - PV market, Gefran India Pvt. Ltd.

ising draught situations and inaccessibility to power have been one of the predominant challenges for rural economic progress in the country. Addressing this scenario, the nation also needs to act upon concrete developmental plans of promoting off-grid solar systems for the betterment of life. Solar pumps are poised to deliver a tremendous role in rural electrification especially in the areas suffering from accessibility of water and energy. In the present energy and political scenario, many state nodal agencies are declaring and announcing about projects and policies of great magnitude. However a methodical study and systematic design of pumps in this embryonic market will fetch greater success to the PV as well as Pump industries. At Gefran India Pvt. Ltd., a 100% subsidiary of Gefran SpA, we have thoroughly developed a Solar Pump Controller in line with the existing AC Pump market in India. As a part of this organic growth we would like to highlight our core technology and our factual experiences in the market as all our numerous installations have proven as true concept solutions. The overall success or efficiency of an AC Solar Water Pumping system is perfectly linked with the efficiency and performance of the pump, the pump controller and the PV Modules. In an existing submersible or a borewell pump it is very important to study and propose an exact required power in line with the pump rating. Moreover pumps with better efficiency play a vital role in higher water deliveries and overall cost. As a general overview, it is always suggested to power an existing Pump system with PV 18

EQ February 2014

Controller and Solar Panels however a better efficiency pumping system can reduce down the overall cost of a project as you need lesser energy to power the pump even at greater water depths. Many state electricity boards India are presently offering subsidized power to farmers operating below 5 HP Pumps; in reality their pumps are always of a higher capacity. This needs to be critically addressed while sizing a system and decide if replacement a pump with a better efficiency pump can bring down overall cost as against powering an existing inefficient pump with higher PV capacity. Another ambiguity with the developers is right choice of Pump Controllers as present market is fairly unaware of the variable frequency drive (VFD) technology and is still an open issue between price and technology for the cost sensitive market. Any regular VFD with specified amount of input power can run solar pumping systems. However the challenge lies in adaptability of the pump controller systems for variable insulation levels, deeper water conditions, long running hours, higher water throughout and protections against harsh conditions as

solar water pumping systems are generally prevalent in remote locations. It is only in the scope of systems capable with high level of PLC and adaptive power tracking to deliver these needs. Proper choice of PV modules is pivotal decision for Solar Pump Controllers as they need to be operational with a consistent power curve unlike other PV application. The reason because pumps are demanding constant power from the modules without spurious tripping for a healthier operation and one must ensure right choice of voltage and current levels for the controller for the same. Modules with lower sensitivity to ambient temperature and stable output voltage promise a much higher performance. Based on our experience, thin films can be a best solution for solar pumping systems considering the Indian scenario. Gefran Pump Controller systems ( ADV200-KBX Series) have been specifically designed and tried on fields for any type and/ or make of AC pumps in various capacities. At the heart of the system lies a tri-core processor (Infineon) with very advanced level of programmability and speed. The unit has been designed as Field Oriented Vector control Inverter with “Built in”‘Smart Logic’ to control the motor to be operated from Solar Panels, together with Auto Start, Auto Restart, Dry Run Protection and Restart, OnOff Programmable timer function - as a single composite unit. (Patent Pending - Application No: MI2013A000822). Some of the unique features of our product include: 1. 2. 3. 4.

Direct interface with PV Array Guaranteed Performance even at deep water levels (400+ feet) Unmatched pump output/delivery Long operational hours; in some cases

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even under cloudy conditions+. Unique Smart logic to calculate maximum power every 1 millisecond.* 6. Fully programmable system. 7. Compliance to regulatory standards. 8. Remote monitoring feature (optional) We offer our standard systems ranging from 0.75 HP to 50 HP and can extend up to any higher size as tailor made solutions.

Case Study

5 HP Solar Pump Installed near Pune:

â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘

Conclusion:

The system can be easily designed / configured with help of the basic configuration guidelines. With numerous installations in remote locations we are catering to various critical end use applications. There is also a provision of switching the pump from solar power to grid power at night or when required. This can be simply followed up by use of a change over switch as an optional feature.

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â&#x20AC;˘ â&#x20AC;˘

Land Size â&#x20AC;&#x201C; 1.5 Acre Delivery Head â&#x20AC;&#x201C; 35 Meters Pump Type â&#x20AC;&#x201C; 5 HP Open well submersible pump ( Make: Kirloskar Brothers, India) Gefran Pump Controller : ADV2002055-KBX Modules: 270 Wp, Number of Modules in Series: 18 Plantation â&#x20AC;&#x201C; Red Onions

Delivery: n

Water Delivery : 4.1 Litres/second ( 15000-17000 Litres/Hour @ Wp Conditions)

Water Pressure at Delivery : 4 Kg/ cm2 Number of operating hours â&#x20AC;&#x201C; 7.5 Hours (Under Wp Conditions)

For a country with strong agricultural backbone, solar pumps can have a phenomenal contribution towards availability of clean and free power. With a disciplined activity and solutions; solar AC pumping systems can certainly take off the rising power demands on commercial and industrial grids. A strong push from the industry and administration can change and overall Solar Pump scenario to moderate the power crisis than additional coal based power capacity.

Government of India

INTERNATIONAL CONFERENCE & EXPO ON RENEWABLE ENERGY Indiaâ&#x20AC;&#x2122;s Number 1 Renewable Energy Event Â&#x2021; 2YHU &RPSDQLHV Â&#x2021; %XVLQHVV 9LVLWRUV Â&#x2021; 6SHFLDO (PSKDVLV RQ 6RODU 39 DQG 6RODU 7KHUPDO as TN has the most Ambitious Solar Policy in India Â&#x2021; )RFXV RQ &RPSDQLHV 3URYLGLQJ 8QLTXH DQG Innovative Solutions in all Sectors

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Marketing and Knowledge Partner

12 - 14 June 2014

Chennai Trade Centre Nandambakkam, Chennai Tamil Nadu, India

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CONTACT DETAILS Rajneesh Khattar M: +91 9871726762 E: rajneesh.khattar@ubm.com

Julian Thomas M: +91 9940459444 E: julian.thomas@ubm.com

Gaurav Singh M: +91 9008018873 E: gaurav.singh@ubm.com

Iyer Narayanan M: +91 9967353437 E: iyer.narayanan@ubm.com

SO L A R ENERGY

Earthing of PV Systems Dwipen Boruah - Managing Director, GSES India

arthing of solar PV systems is important as it is for other electrical power systems. Solar PV systems are not different from other electrical power systems and earthing should be installed as required by the National and International Electrical Code.

Why Earthing is required? Generally PV modules have aluminum frames and conductors. PV systems installed on the roofs of buildings may be the highest metallic objects in the vicinity. As such they are subject to lightning strikes and may act like a lightning rods. The inverter of grid connected PV systems operates up to 600 volts DC input voltage and it could be lethally dangerous during fault condition. If PV systems are installed near to power transmission lines, during severe weather condition or in case of any accident, these transmission lines may come into contact with the PV array.

Earthing of PV Systems: There are two areas in a PV system where the issues of earthing should be addressed. The first is the earthing of the frames of PV modules and the second is earthing of the circuit conductors. PV systems have DC circuits and AC circuits and proper earthing must be provided to both side. 20

EQ February 2014

Earthing of AC side: In case of an isolated inverter where a transformer isolates the DC side of the system from the AC side makes the PV systems separately derived. In that case, proper earthing must be provided to both sides. There is usually no internal bond between the AC earthing circuit conductor and the earthing system inside either stand-alone or grid-interactive inverters. Both of these PV systems rely on the neutral-to-ground main bonding jumper in the service equipment (grid-interactive systems) or the bonding jumper in the first load center (stand-alone systems) for earthing the AC side of the system.

Earthing of DC side: The DC side of the system must be grounded when the system voltage above

50 volts. The system voltage to be considered is PV open circuit voltage multiplied by the factors for lowest expected operating temperature as per IEC 62548. Normally, all grid-interactive PV systems operate with a nominal voltage of 48 volts or higher so there must be an earthing on the DC circuit conductors.

Earthing of PV Modules: To reduce or eliminate shock and fire hazards earthing PV modules is necessary. Copper conductors are generally used for electrical connections and the PV module frames are generally made of aluminum. These aluminum frames are mill finished, coated or anodized for color. The mill finish aluminum and any aluminum that is scratched quickly oxidize. This oxidation and any clear coat or anodizing form an insulating surface that makes low resistance electrical

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installed stainless steel washers separating copper and aluminum. •

Inadequately protected connections after long-term exposure to leakage current, water, salt-humidity, and/or other corrosive agents.

Best Practice in Earthing:

connections for earthing of the module frame. The oxidation/anodizing is not a good enough insulator to prevent electrical shocks, but it is good enough to make good electrical connections difficult.

Use of proper connections and compatible metals is the best way to ensure reliable earthing. Screw/bolt/nut/clamp assemblies used for earthing must be of compatible metals, durable, properly sized, optimally torqued, and sealed gas-tight. Best practice may also include the use of a protective coating on the connection, which extends the useful life of the bond.

Earthing Failure: Earthing failure includes disconnections, loose connections in which continuity are intermittent or weakening at an unacceptable pace, and connections exhibiting corrosion of the material’s sacrificial layer and reduced continuity. One of the common failures of module earthing is corrosion of the bonds and connections. Failures due to corrosion can be attributed to the following general causes: •

Improper selection of materials for the bonded connection. Copper and aluminum bonds are the most common and have faster breakdown.

•

Dissimilar metals in close proximity causes corrosion when exposed to water, soil, or other conductive elements.

•

Insufﬁcient barriers between dissimilar metals, such as undersized or badly

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EQ February 2014

SO L A R ENERGY

Impacts of Distributed Renewables and Storage on Energy Delivery Systems Dr. Ali Nourai, DNV KEMA

he global energy mix is shifting rapidly towards renewable energy, particularly solar. A recent study by Citi Bank concurs and points to the challenges that electric utilities, as well as consumers and exporters of fossil fuels may face as a result (http://reneweconomy.com. au/2013/darwin-69517). Figure 1 provides a sample illustration from the study regarding movement to renewable energy. This rapid evolution presents a challenge for electric utilities due to the fundamental change in their business nature. Ergon Energy chairman Malcolm Hall-Brown suggests that renewables and storage will be cheaper than grid power in Australia within a decade and, thus, the company is moving away from investing in the traditional “poles and wires” (http://reneweconomy.com.au/2013/ ergon-says-renewables-and-batteries-maybe-cheaper-than-grid-21838). As Victor Hugo once said, “You can resist an invading army, but you cannot resist an idea whose time has come.” Another very notable trend is that much of today’s supply, fossil fuels or renewable, is extending to the edge of the grid. For example, the 2012 annual report of Interstate Renewable Energy Council shows that while the MW size of solar energy installed by utilities is higher than those installed by customers, the activity or number of PV installations on the customer side of the meter is significantly more than the ones installed by the utility (see figure 2). A noticeable historical and expected price drop in solar photovoltaic (PV) relative to other centralized resources, has reinforced 22

EQ February 2014

Figure 1 – Historic substitution of fuels and projected expansion of renewable energy

Figure 2 – Number of Annual PV installations by Utilities and Customers

this trend. In particular, chairman of the Federal Energy Regulatory Commission (FERC), Jon Wellingh off, announced that total PV installation in the US is doubling

every two years but the growth rate is much higher for the residential PV. He is forecasting that distributed solar installations may overtake wind energy installation in

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fundamental reasons behind this, including the potential to offer “more ﬂexibility”. As shown in Figure 4, energy storage, like renewable resources, offers value at all grid locations but it is capable of offering even more value at the edge of the grid.

Figure 3 – NREL forecast of Residential PV Systems Capital Requirement

Figure 5 shows one vision of how future energy systems or networks would look like with the distributed generation closer to the load centers and renewables making a substantial portion of the total energy generation. In this model distributed energy storage has also moved closer to the loads or load centers. With the decreasing cost of

10 years. While wind is often installed in farms or off shore, PV has deeply penetrated into the customer side of the meter and has become one of the key factors for pushing energy storage to the grid edge. National Renewable Energy Laboratory (NREL) published their Renewable Energy Future study in 2010 where they forecast the required capital (installed cost) of PV systems under different scenarios (see figure 3). This cost reduction would certainly accelerate the rate of PV installations to the point of becoming a disruptive technology that could get the grid in a vicious economic

Figure 5 – A vision of future energy systems with almost net-zero population centers

renewables and energy storage, as well as advances in energy efficiency programs, cities and even some neighborhoods will become self-sufficient for energy and would rely on transmission lines as a backup or a pathway to the open market place. In this vision of the future energy systems, in most places, the role of large central fossil burning power plants will be reduced.

Figure 4 – Value of energy storage at different locations on an electric grid

A recent survey of global electric utilities has shown that 76% of utilities believe the generation becomes a mix of central and distributed and only 9% believe it will be completely replaced with distributed

cycle (loss of electricity sales, leading to higher prices for other customers, leading to more customers using their own renewable generation, leading to further loss of electricity sales). Source: American Electric Power Company (AEP) As such, in tandem with strong gains for centralized renewables, there is a strong expectation for explosive growth in distributed renewables, on the utility or customer side of the meters. In tandem, we expect to see increased demand for distributed storage to support its integration. There are many

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Figure 6 – Survey of Electric Utility Vision of Future Generation Market

EQ February 2014

Figure 7 – Failure of Distributed Transportation

generation (www.pwc.com/gx/en/utilities/ global-power-and-utilities-survey/index. jhtml). Figure 6 compares the survey results from different parts of the globe including Middle East and Africa.

RISKS The expansion of renewables and energy storage to the grid edge is welcome as it offers more flexibility, higher reliability, grid independence, and many other benefits. However, there are a few inherent risks associated with the uncontrolled growth of distributed resources that could threat both utilities and consumers. There are risks at both the system operation level as well as the utility business structure. To better understand the nature and significance of the two main risks associated with distributed resources, one only needs to look at the history of the telephone or transportation utilities. Not long ago, the main form of transportation was passenger trains between cities (like transmission lines) and inside cities (like distribution feeders). Trains were convenient as long as people were living near terminals. This lack of flexibility was tolerated until technology offered personal cars (distributed transportation). This higher flexible option, to become free from rigid train paths and schedules, brought the demise 24

EQ February 2014

of the railroad utility industry in the US and many parts of the world. Today’s transportation map looks like what microgrids would most likely look like in a decade; many self-sufficient cities connected together with bullet trains and jets. To get a good sense of what was the risk in the poorly controlled transition from bulk to distributed transportation; one only needs to look at today’s traffic jams like the one shown in figure 7. Inadequate preparation of the transportation infrastructure to handle the distributed transportation (cars) is causing traffic jams in many large cities that erode the promised ﬂexibility and freedom. In other words, inadequate planning defeated the main purpose of distributed resources. It is not hard to foresee that rushing towards distributed resources without preparing the distribution and transmission infrastructure would produce similar undesirable results for the energy system such as production curtailment or low power quality that erodes the expected ﬂexibility and grid independence. This is a very high risk as, to date, many large utilities are either denying this fact or, if reluctantly agreeing, they have no long term plan to preempt the impact of solar PV at the edge of the grid. As in old established cities where roads cannot be made much wider, many

distribution infrastructures have been pushed to their limits and building new lines is not always possible or cost-effective. Fortunately, electric networks have an option available to them that can be used to minimize or even mitigate the risk of such traffic jams. Properly sized and strategically located distributed energy storage can help to shift the power ﬂow from peak times to off peak or improve the intermittency challenges of renewables. In short, storage offers ﬂexibility where it did not existed before, and it can prevent the ‘traffic jams’ associated with fixed infrastructure investments. While it is possible to estimate the needed storage sizes and their approximate locations for small circuits, it becomes increasingly challenging to do it for metropolitan or large distribution circuits without the help of advanced tools that consider the capability of each line and all electrical resources that are connected to them. As in the case of cities, there will be a large difference between the future networks that reluctantly accepted and tried to tolerate the renewables versus the networks that were planned to benefit from them. All facts and trends are indicating that distributed renewables are growing very fast. It is up to us to either deny and tolerate or plan to accept them and enhance the benefits of renewable energy.

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Figure 8 – Survey of Electric Utility Vision on their Current and Future Business Models

Recognizing the significant risk from potentially losing out on the benefits of distributed resources due to poor planning, some companies, including DNV KEMA, have developed tools that facilitate distributed resource planning. In particular, the tools can help determine cost-effective amounts of and strategic locations for distributed storage. Poor and uncontrolled power flow is not the only risk in poorly managed deployment of distributed resources. Like railroad utilities that gradually lost their business and profitability, electric utilities are at a high risk to lose control of their cash flow in addition to the power flow. Like the airline and trucking industries that cut deeply into the market of railroad utilities, independent power producers and other more efficient businesses are posed to push the traditional electric utilities out of business. If electric utilities do not road map their future today and conduct advanced planning around strategic steps, they will be replaced with new businesses offering services of much higher value as digital photography did to film business and wireless smart phones did to wired phones. The Above Mentioned Global Survey Of Utilities Shows That Less Than 10% Of Utilities Believe That Their Current Business Model Will Remain More Or Less The Same By 2030 And About Half Believe It Would Be Totally Transformed. This, Of Course,

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Depends On The Regional Markets. Figure 8 Shows The Diversity Of The Answers By Geographical Locations. In Middle East And Africa, 70% Of Utilities Surveyed Believe That Their Business Model In 2030 Would Be Mainly The Same But With Important Changes. Meanwhile, In October 2013, The World Energy Council (Wec) Issued Some Statements Before Its 22nd World Energy Congress That “Current Market Designs And Business Models Are Unable To Cope With The Increasing Renewable Shares, Decentralized Systems, Or Growing Information Architecture”. In Particular, Wec States That “The Middle East Will Struggle With Increasing Demand And Energy Intensity” (Www.Worldenergy.Org/ News-And-Media/News/World-EnergyCouncil-Issues-Official-Statement-AheadOf-22nd-World-Energy-Congress). I Think It Is Time To Have An Unbiased And Thorough Risk Assessment For The Impact Of The Coming Changes On Our Businesses And Be Prepared.

Geographic Location. Such Assessment, If Done Properly, Would Yield Detailed And Tailored Recommendations And Action Items To Help Utilities Transform Towards Sustainable Business Models That Gain From Distributed Resources Rather Than Being Left Behind. At The End, It Is Up To Us To Let The Coming Changes Be Either A “Risk” To Threaten Our Businesses And Life Styles Or Become Yet Another “Opportunity” To Help Us Advance Our Goals. Let’s Plan To Be Prepared.

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Utilities That Do See A Substantial Change Or Total Transformation Of Their Business Model Around The Corner Need To Develop Both Technology And Corporate Strategies To Make A Safe Business Plan. There Are Established Processes To Assess The Strengths And Weaknesses, Threats And Opportunities For Any Utility With Respect To Its Unique Situation And

EQ February 2014

SO L A R ENERGY

Security Systems For PV Parks, A Normative Approach Franz Xaver Boessl - R&D Manger & Perimetral system specialist at I.D.S. Security

larm and CCTV systems for Solar Parks, an introduction to European

EN - 5 01 31 Standard.

and

EN - 5 01 3 2

Actually, in many countries, thefts in PV parks are a pressing problem. Insurance companies are arising premium and deductible amount; a typical ground PV parks offer a lot to steel, not only panels but also inverters and copper wires. During sites inspection on behalf of insurance companies (or court expert), I often get to see improper intrusion protection of PV parks and undersized video-surveillance system; both unable to provide real security of the site and so to get evidence regarding robbery or theft attempts. In the same time video-surveillance systems are unable to correctly enforce the alarm system and does not permit remote validation of an attack from the security services. For many years, high government production incentive caused a “PV gold rush” and the theft problems were not well focused. We attend on various and very creative security systems installation and realization. After a couple of successful thefts the insurance companies menace to quit and the banks to withdraw investments. Many times intrusion detection systems functionalities are frustrated by a high nuisance alarm rate, that causes loss of credibility, at the same times videosurveillance systems are often unsuitable and 26

EQ February 2014

undersized; poor images do not permit remote validation of an alarm and security service intervention may increase in number and costs, up to become an important additional value in PV operating and maintaining costs. Often security system devices are chosen following the immediate economic burden (lower price) avoiding consideration on TOC (total cost of ownership); typical examples are active IR beams or bi-static microwave links: the prices are lower at the moment of installation but the needs of periodic maintenance of the soil, grass cutting tend to quickly increase costs during time (in springtime a couple of grass cut per month could be necessary) even the snow, the fog (for IR beam and thermal cameras) could cause distressing nuisance alarms. Similar is the situation for videosurveillance system. Cameras are often too far from each other, images could be useless for the security service in order to remotely validate alarm and many times a local patrol intervention is unavoidable, increasing costs and reducing ROI.

This is the context where expert security designers were called to engage the challenge and design a protection for wide perimeters often in (hard to reach) isolated areas, away from security service stations. In order to have a start-up we need to follow up with the rules and regulations. There are two important European standards for intrusion detection system (EN-50131) and video-surveillance (EN-50132) that permits good results for alarms and predictable CCTV results; Italian normative, CEI 79-3 represent from many years a “state of the art” even for external perimeter protection too. Let’s have a look at it: every site could be looked and composed of, at least, three layers: border perimeter, proximity perimeter and internal areas. In a PV parks the three layers are identified as : border perimeter=fence that delimit the park; proximity perimeter and internal areas= Doors and windows of the buildings that hosts inverters, transformers and so on. The most of the value, and therefore subject at attacks, is contained between

Image 1: Circles of protection as described in CEI 79-3 Norm

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border and proximity perimeter (i.e PV panels and copper electrical backbone), so the protection of the border is the first (and usually last) defense line in order to protect the (most) value contained in a PV park. The CEI 79-3 normative was a pioneer for analyzing this aspect and contains all the regulations for the designing of border security system, this states, that external area is composed by a fence and an area between the fence and the internal buildings, the fence protection should be capable to detect breakthrough attacks (that include fence cutting too) and climbing for the entire length. If there are any gates and doors, the climb detection should be maintained (usually with IR or MW links) and the open/closed status of the gates should be monitored and cause of alarm. In this way every ground attack can be revealed when the intruder is still outside the protected park, gaining time for the security service to adopt countermeasures. This is the first “circle” of the external protection; the second circle provides the protection of the halfway area, for definition this is a volumetric protection and can be realized with various technologies, for example microwave link, active infrared link, passive IR detector, and so on; even the buried pressure or electromagnetic cables are a volumetric protection too. At the moment, camera video analysis with particular characteristics (e.g. I-LIDS primary certification) can be considered a volumetric detector too. There could be many considerations to do regarding the pros and cons of every detection technology, but, at the moment, this go beyond the scope of this article, and will be treated further, if ever. The volumetric protection needs to

sending patrol or not; how the images need to be in order to make those decisions is described in the En-50132-7 norm. The CEI 79-3, for a quantitative method, describes the level of the protection with a mathematical model where at the end, we obtain a numeric result. This final value explains the effectiveness of the protection, higher the value, higher the skills needed by the intruder in order to deal with the protection system. This value has legal relevance, insurance companies asks for a minimum CEI 79-3 protection level in order to insure the site (and himself) against theft and vandalism, usually higher the protection level lower is the insurance premium. Video-surveillance system performances are evaluated by the EN 50132 norms, in particular the application guidelines (Part 7) allow to design systems with predictable results; thanks this normative it is possible to correctly size the system regarding number and nature of the cameras, taking into

account resolution and target dimension. In particular, to permit a remote validation of an alarm, the “observe” feature described by the EN-50132-7 is good choice. This feature states that intruders image need to be the 25-30% of the height of the monitor screen (Analog system with D1 resolution). Similar images permit, a security operator, to recognize peculiarity of the focused target as for instance clothing peculiarities. In the same time, the non excessive zoom rate permits to understand what’s happening around the intruder and in which way he interacts with the surrounding environment. “Observe” compliant image size permits a high level of confidence with the alarm coming from the intrusion detection system: a nuisance alarm caused by wild animals will be immediately recognized and treated in the right way; otherwise compliant intruder images become evidence of violation

Image 2: from left to right, Monitoring, Detecting and Observing EN 50132-7 compliant images.

Image 3: Examples of image properties vs camera distance; the Observe compliant image is between 17 and 48 meters ca.

be continue around the total area, without lacks; (eg. microwaves link needs to be superimposed in order to avoid unprotected zones, etc.) This two circle of protections realize a redundant protection based on different technologies with different detection features; alarms are integrated together and sent as independently information to security services, in order to have an early alarm with event confirmation. Images taken from CCTV system are the discriminating factor in order to validate received alarm data and take decisions if

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Image 4: results for the example, targets at 17 and 48 meters

EQ February 2014

this could be immediately used to inform public security and suitable for further investigation. How to obtain this level of confidence with the CCTV images? There are substantially two ways: Install a camera every 30 meters ca. (Pal D1 context) or to install a pinpoint capable intrusion detection system, this latter solution is usually a better way because speed dome cameras could be driven directly and automatically to the point of intrusion, that permits the security service to focus their attention only on the alarmed zone, recognizing the intruder or eventually the cause of the nuisance alarm (animals, wing, etc.).

Image 7: Alarm and image association in dark conditions (0 visible lux) with IR illuminator and “observe” compliant image.

Here an example of an extracted image

from real behavior of a pinpoint capable intrusion detection system: Attention needs to be posed in case of poor enlightenment (night mode) where cameras tend to generate noisy images; even with electronic features (Sens-UP, DNR, etc.) that cause blurred moving objects. I usually test the system before validation in night mode, in order to verify system behavior in theft-like conditions. In this article I showed the existence of standards in IDS and CCTV, and how a well designed intrusion detection system, could be integrated to CCTV in order to gain remote confidence on alarms and useful evidence of violation, economizing time and money.

Image 5: Panoramic camera (context image) the intrusion attack is barely visible.

nnn

Image 6: Same situation of Image 5 but a PZT camera is driven directly on the point of intrusion tanks the resolution of the alarm system. This image is EN 50132-7 compliant with “observe” characteristic, allowing remote validation of the alarm

EQ February 2014

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SO L A R ENERGY

BMD Solar PV Power Plant India

POWER PLANT installation

n Maximum yield for more tradable Renewable Energy Certiﬁcates (RECs) n First solar plant for India’s LNJ Bhilwara Group, through subsidiary BMD n Start-to-ﬁnish installation time of just four months

REC Solar Germany GmbH

This 5.8 MW solar power plant, owned and operated by BMD Pvt. Ltd. of India, was constructed with precision by AEG Power Solutions Group, and is powered by high-performing solar panels from REC.

ndia’s BMD Pvt. Ltd., a market leader for automotive furnishings and part of the LNJ Bhilwara Group, now also owns and operates a 5.8 MW solar plant that is powered by REC solar panels. The ground-mounted system is located at Gajner, southeast of Bikaner in India‘s Rajasthan province and is the first solar plant for the LNJ Bhilwara Group, through subsidiary BMD. “The solar panel supplier has to meet specific criteria of performance and reliability and we are happy that REC fulfills all of them,” said Shantanu Agarwal, Executive Director, BMD. “One of the decisive factors for selecting REC solar panels was that we get the maximum yield which in turn translates to more tradable Renewable Energy Certifi cates (RECs). Since these certificates have a fixed price in a specific time frame, the aim is to maximize the return on investment within this time period and therefore, REC is the right choice.” Built with precision by AEG Power Group, the clean and well-arranged installation consists of more than 23,000 REC Peak Energy Solar panels and was completed in just four months from start to finish. In the early months of the plant’s operation, the electricity output has already been high – a strong indicator of how the plant will perform over the rest of its lifetime, which is also guaranteed by REC’s industry-leading linear power output warranty. The plant also already sees a high PLF (plant load factor). As the plant

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“One of the decisive factors for selecting REC solar panels was that we get the maximum yield to maximize the return on investment. REC is the right choice.” SHANTANU AGA RWAL, EXECUTIVE DI RECT OR, BMD

is expected operate effi ciently for more than 25 years, it will offset CO2 emissions by around 7,272 tons each year.

EQ February 2014

SO L A R ENERGY

The Use Of Pyrheliometers And Pyranometers In Solar Monitoring Ruud Ringoir Product Manager , Kipp & Zonen B.V.

he monitoring of a solar power plant is a complex process with many stages, from solar energy input to electrical power output. For all these stages separate sensors and associated software are is available to monitor the whole process. The importance of monitoring the available input from the sun is often underestimated, or thought of as less relevant, because the solar radiation cannot be controlled or improved. The following article will explain the importance of accurate solar monitoring with the right equipment.

Location Monitoring It all starts with prospecting, or finding the optimal location. Because most countries have mountains, lakes or sea shores the (micro) climate will change over these areas and therefore cloud formation and the received solar radiation are different. The decision to build the power plant at location A or location B is based on the local solar radiation conditions. Monitoring in advance will not only help you choose the optimal location, it will also give you a good estimate of the available solar energy for calculating the bankability of a project.

Both the pyranometer and pyrheliometer radiometers measure the irradiance in W/ m2, and when integrated over a day the exact amount of available solar energy in Watt Hours or Joules can be determined. Compared to the electrical output of that day this will give you the overall efficiency of the power plant. Apart from the efficiency, additional information can be derived from the data. Gradual changes in efficiency may indicate pollution of panels or mirrors, so cleaning actions can be scheduled. More sudden changes may indicate a defective section, or a cable and connection problem, so further service actions are required to investigate the problem.

Monitoring Differences for PV, CPV and CSP To monitor a power plant, in fact only one accurate radiometer is required. But often two are used for redundancy. When one is out for calibration, the second will still supply the required data for monitoring.

The difference between Photovoltaic (PV) and Concentrated Solar Power (CSP) or Concentrated PV systems is not only the technology used but also which part of the solar radiation is used. Concentrating power plants use mainly the direct solar radiation because the direct beam of the sun is focused with mirrors (CSP) or lenses (CPV). The direct radiation is measured with a pyrheliometer pointed at the sun. This radiation is called Direct Normal Irradiance, or DNI. PV panels with a fixed construction are located with an optimal tilt angle to catch the maximum amount of sun during the whole year. These ďŹ&#x201A;at panels not only use the direct part of the solar radiation but also the Global Diffuse Irradiance or GDI. In this case a pyranometer is used that measures both direct and diffuse radiation. This radiation is called Global Horizontal Irradiance, or GHI, when measured horizontally. For fixed PV panels an additional pyranometer is mounted tilted at the same angle as the panels, and then the Global Tilted Irradiance (GTI) is measured. One axis or two axis moving PV

Monitoring in Operation The next step is monitoring when the power plant is in operation. In this stage the efficiency, or performance ratio, is the most important factor. Independent of the technology used (PV, CPV or CSP) a thermopile radiometer will provide accurate and independent solar radiation data.

EQ February 2014

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radiometer, mounted on a mast or located at a remote site, this can require significant time and cost. There is currently one pyranometer available with internal desiccant that has a guaranteed lifetime of 10 years. This means no regular inspection and change of desiccant is needed. Moreover, with every re-calibration or service by the manufacturer the desiccant is replaced and will last for a further 10 years. panels follow the sun and make more efficient use of the direct radiation. Many meteorological stations measure the Global Horizontal Irradiance and when there is a station nearby (< 25 km) this data can be used for reference or for historical comparison at that location. The relationship between the Global, Direct and Diffuse components of solar radiation is as follows: GHI = GDI + (cos x DNI) where is the solar zenith angle as shown in the diagramme below.

In order to simplify this process there are pyranometers and pyrheliometers available with a Smart interface built-in. This means that the radiometers have both an amplified analog output and a digital output, to make it easier to interface with existing computer networks or PLCâ&#x20AC;&#x2122;s. This Smart series of radiometers has RS485 digital communication with ModbusÂŽ protocol and temperature correction over the whole operating range. The Smart interface also provides faster response times and access to the radiometer model, serial number, calibration data and history.

Monitoring Maintenance

Larger solar monitoring stations often measure all three components and crosscheck using the formula above to verify the individual components.

Because maintenance is often a major part of the cost of ownership, extending the maintenance interval will lower these costs. High accuracy radiometers normally have drying cartridges filled with a desiccant to keep the interior of the instrument dry. This prevents condensation of water inside the dome or window and prevents measurement errors. They must be inspected by regularly checking the color of the desiccant material. Orange means that it is still active, whereas transparent indicates that it needs to be changed. Depending on the location of the

To further minimize the pyranometer maintenance interval and improve data quality, a ventilation unit can be added to keep the dome free of dew, raindrops, pollution and dust. Frost and snow will be removed because of the built in heaters. One of the latest developments is a ventilation unit with a radial ventilator that provides a continuous rotating ďŹ&#x201A;ow of clean air around the dome that keeps even the top clean.

Monitoring Compared to Satellites In addition to local ground-based monitoring, satellite data is often available. This is a useful tool to get an idea of the available solar radiation in a certain area. However the uncertainty of this data is about 10%. The time interval of the satellite data is 1 hour or more and the spatial resolution is usually over 10 km2. To monitor the efficiency of a 100 MW power plant this 10% error is 10 MW. The best well-maintained pyranometers and pyrheliometers can provide measurements of solar radiation with an uncertainty of 1 or 2%. This shows the importance of accurate local measurements with high quality and precise instruments.

Smart Monitoring Thermopile radiometers generate an output signal from the incoming solar radiation. This means they do not need a power supply, but consequently the output signal is rather low. A typical radiometer gives about 25 milli-Volt output on a bright sunny day. These signals have to be recorder by a sensitive data logger, or an extra amplifier is needed to increase the signal level. This also means that every re-calibration of the radiometer also requires a modification of the amplifier or data logger.

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EQ February 2014

SO L A R ENERGY

Connector Are Essential Factors in PV plant Chandan SINGH - Business Unit Manager, STÄUBLI TEC SYSTEMS INDIA PVT LTD

Multi-Contact tests and research Swisssolar (Basler & Hofmann AG) analyzed PV-System errors to determine reasons why applications fail. We discovered that the interface between the module, connectors, wires, and the combiner boxes caused up to 50% of the errors in PVSystems. This research shows the importance of a quality connection. One crystalline module has at least twelve interfaces between the Junction box, the connector, and its cable branch. Each interface has potential for error and the risk of high contact resistance. These problems lead to profit loss due to replacement, reinstallation, and service-hours.

source of error occurs if the wrong crimping tools or inserts are used. The installer has a high inﬂuence in the quality of parts used in the connection. Using certified Multi-Contact crimp pliers and inserts, this enables the user to crimp accurately. Reducing the sources of human errors further, Multi-Contact is selling pre-assembled strings as well as having partnerships with cable assemblers to reduce the manual crimping in the field where possible.

Multi-Contact minimizes the risk of •

Crimping onto the isolation n

•

Scorching, risk of fire

Crimping without a MC-tool

According to Swiss solar (Basler & Hofmann), 59% of the errors at a PV-System will occur within the first two years.

Deformation of engaging area

Not correctly engaged contacts

Scorching, risk of fire (heat, arcing)

Additional outcomes of this investigation showed that between the 4th and 8th years in service the errors in the PV-System increase significantly. These errors occur due to material aging or low quality not well dimensioned parts at the interfaces.

Multi-Contact sets its focus on the following points: •

reducing the potential error at each interface in short term. => Human factors

•

enhancing long term performance. => electromechanical series, design, and the Multilam

Human factors / crimping: Potential risk of errors exists in the field. Installers are often driven by time pressure to be profitable. This can have an inﬂuence on the crimp quality as mentioned by the PV branch association in Germany. Another 32

EQ February 2014

low pull-out force.

Connector and Multilam Multilams are specially formed, resilient strips of copper alloy that are ﬂoat mounted into a groove. By its constant spring pressure the Multilam maintains continuous contact with the contact surface resulting in a low and constant contact resistance. Multilam technology allows us to meet a very broad range of requirements allowing us to find solutions to the most severe constraints, including electrical, thermal and mechanical. In harsh environmental testing under accelerated aging our Mulitlam connectors

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can expect to have: • High return of investment by avoiding downtimes of the PV plant • Durability during lifetime, saving maintenance cost. • Simple and fast installation for high profitability nnn

Source: www.swisssolar.ch / Basler&Hofmann AG like the MC4 and MC4-EVO 3 show the best long term performance in low contact resistance compared to the connectors of our competitors. These performance tests are important indicators for in field long term performance due to the long lifespan of solar plants. Not only do the MC4 and MC4-EVO 3 excel in lifespan, but also in safety. Low quality connectors have short life spans and age faster. This might enhance the temperature of the connector to a higher contact resistance that can result in arcing and possible fire. Multi-Contact uses its knowledge to enhance the safety of your PV-system and reputation if you use our connectors.

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Advantages of Multilam Technology n

High current-carrying capacity

Minimal power loss

Minimal contact resistance in short and long term

High corrosion resistance

Conclusion: Quality and design of the connector are essential factors in this context, as its electrical performance immediately inﬂuences the overall performance of the power plant. By using Multi-Contact products you

EQ February 2014

SO L A R ENERGY

Corrosion â&#x20AC;&#x201C; Solar Mounting Structures Perspective Harish Krothapallli, Director â&#x20AC;&#x201C; Projects Nuevosol Energy Pvt. Ltd.

t is no exaggeration to say that in a solar power plant, one mounts all their

Observtions

exposed to enviromnent in terms of wear and tear are maintained to be of HDG material

investments on a steel structure which

(i) Standard Codes: Research on

supports the energy generating solar panels

corrosion of steel and its prevention, has

for three decades. The role of mounting

been an ongoing execrise for many years

structures is two fold, one is to optimize

now and the codes and guides used to design

the costs involved and make a solar power

structrues and fabricate them have been

Limitations: Hot dip galvanization being

plant economically viable and the other is to

developed by our academicians based on

a semi-automated process with lot of manual

ensure the durability of a solar power plant.

this thorough research. First step towards

intervention, calls for quality manaegemnt at

In this context we dedicate this article to

prevention of corrosion is to employ these

every level. In this semi automated process

explore the mutliple aspects of corrossion in

codes with precision through stringent quality

one must be aware that there cannot be

the mounting structures perspective.

norms.

machine made perfection in the coating

(ii) Indian Codes and New Materials:

Corrosion the Process: Corrsion, in simple terms is degradation of ferrous material due to environmental

Many newer variations of steel which are equally or even more capable of resisting corrosion need to be explored to optimize for

with 70 micron coating thickness, while the rest of the components can be pre-galvanized or other newer material.

thickness, leading to uneven surfaces. Hot dip galvanization is possible only at higher thicknesses, and can prove to be pricey, if it has to be used for complete strcuture.

economic viability. Codes and Standards for

(iv) Pre-galvanized Steel: Pre

these newer material may or may not exist

galvanized steel has been in use for many

and have to be verified with testing centers.

years now in developed countries for solar

We at Nuevosol as a part of our continuous

mounting. It comes in three main varieties

Corrosion is a process of metal

research to optimize have conducted several

namely 250 GSM, 375 GSM and 550 GSM.

degradation, where the metal when it comes

tests at reputed laboratories like TUV to

Pre gavlanized steel has been used in many

in contact with an electrolyte, a localised

ensure the same. These results have been

industries, mainly the automobile industry and

battery is formed and the metal being anodic

shared in this article as a case study.

pre-engineered buildings as it is known for

condidtions. In this process, metal loses its strength and does not serve its design life and capability leading to material failure.

loses it electrons and thus its properties. The electrolyte can be rain water that is acidic, high humidity and saline air i.e. air having high amount of dissolved or suspended minerals like Calcium, Magnesium, etc.

Protecting the Mounting Structures- Theoritical and Practical 34

EQ February 2014

(iii) Post-galvanization: Theory and practice suggests that, a 70 micron and above coating thickness is required for 20 year or above corrosion proofing for components which are highly exposed to corrossive environments. This is achieved via hot-dip galavnization (HDG) of processed material. However in mounting structures base posts/ foundation memebers which are the most

its formability. The features of availability at lower thicknesses and formability have made it a favourite for design of solar structures. Caution has to be exercised in the design and manufacturing using pre galavnized steel as the galavnization coating thickness is a maximum of 20 micron each side for 550 GSM steel. However the usage of these steels in solar structures is restrictired to components which are not very exposed to

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corrosive environment nor are prone to water

components tested and certified against

Four spray periods each of 2 hour

stagnation. This has been ongoing practice for

corrosion by many laboratories. One such test

Humidity storage period between 20 to

several years in Europe, where a maximum

we have conducted to compare corrosion in

of 350 GSM steel is being used which proved

various types of steel used in solar structures,

to be resistant to corrossion. At Nuevosol

we took the assistance of TUV Rheinland.

we use 550 GSM pre galvanized material. Caution has to be exercised when bending, punching and handling the material, as any kind of wear and tear can expose unportected steel to atmosphere. (v) Accessories:

Accelerated Salt Spray and Cyclic Corrosion Test. To phrase it in simple manner, the test is to accelerate the corrosion process by simulating the harsh conditions to test for 25

panels, there will be vibrations due to wind

years durability in a span of a few thousand

loading; these vibrations in turn cause

hours.

the components at the mounting points, this sliding leads to rupture on the surface of the fastener and the component being fastened at the place of contact, exposing them to the elements and thus causing corrosion. This can be avoided by providing washers at the point of contact or providing appropriate spacing allowing a partial movement or by lubrication. As a practise solar structures are to be assemebled using galvanized accessories or even better stainless steel accessories. Generally prefered grades are HDG 5.6 for structure assembly and SS 304 for module assembly.

Afterwards one storage period of 3 days under a standard atmosphere for testing at 23Âą2 0 C and 45% to 55%

In structures that are used for mounting

sliding of fasteners against the surface of

22 hours after each spray period;

It is a standardized method used to check corrosion resistance of metals/alloys

humidity. There are a number of such cycles followed to test the sample.The following are the components that we got tested recently and the results and conclusions follow:

Observations of the experiment: n

Hot Dip Galvanized 80 Micron

(HDG 80MS) coated steel is the most

and inorganic and organic coatings. It is a

corrosion resistant material. Zinc Alum

tool for evaluating the uniformity of thickness

Coated Steel and Pre galvanized 550 GSM

and degree of porosity of metallic and non-

material have comparable resistance to HDG

metallic protective coatings. A number of

80. Lower grade Pre-galvanised materials

samples can be tested at once depending

are corrosive compared to both HDG 80 MS,

upon their size.

Zinc-Alum and Pre-Galvanized 550 GSM

This method is considered most useful

Steel.

for measuring relative corrosion resistance of closely related materials (comparative test). It is widely used for process qualification and quality acceptance. The test method

nnn

provides a controlled corrosive environment representing accelerated marine type atmospheric condition.

Pre Galvanized and Post Galvanized Steel; A Comparative Study. Nuevosol provides warranty on all the

One test cycle consists of

supplied material and therefore gets all its

Sample

Result.

Column Post 550 GSM with Zn

No sign of corrosion even after 2000

Spray

hours of exposure.

Column Post HDG 80 MS

No sign of corrosion even after 2000 hours of exposure

Column Post 550 GSM

No Sign of corrosion after 2000 hours of exposure.

Column Post 350 GSM

Sign of corrosion after 960 hours of exposure.

Zinc Alum Coated Steel

No sign of corrosion even after 2400 hours of exposure.

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EQ February 2014

SO L A R I NV ERT ERS

Using Distributed Architecture Inverter Systems In Large Scale Solar Arrays To Maximize Performance Nextronex Inc.

System Architecture In many applications, engineers and designers face a decision to specify one largecapacity unit, or multiple smaller units. This can apply to heating, ventilation, and air conditioning equipment, generators, pumping systems, and other engineered systems. Many times, reliability and availability dictate the use of multiple smaller devices. There are several benefits from this approach including: 1.

Under light or intermittent loading, a minimum amount of capacity is brought on-line. This reduces energy consumption, and often can improve regulation and efficiency.

Reliability is enhanced because units are allowed to rest when not needed. There is less wear and tear on all the units when they are rotated.

The failure of an individual unit will not bring the entire process to a standstill.

In a solar field application, the inverter is the most critical component. The inverter is the only component with active electronics containing protection circuitry that will trip or fault to protect itself, givingit the highest likelihood of failure. The solar panels and the transformer make up the other significant components in the field. As passive pieces of equipment, they are less likely to cause any drastic performance issues based on usage, weather or reliability. So it is with solar inverters; one central unit can be specified and sized to harvest the peak amount of energy available from an array. That unit will often be very lightly loaded, with subsequent inefficient operation. If that unit does fail, the entire array is offline, and no revenue is generated.

EQ February 2014

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In the solar application, it is not uncommon to use multiple inverters; for example, a 2 MW array may have (4) 500 kW inverters, with 25% of the array dedicated to each inverter. This provides some buffer against failure, because a single inverter fault will affect 25% of the array, and not the entire field. However, each inverter must always be on, so that each inverter will still spend a high percentage of the time lightly loaded and inefficient. In a conventional array with either one larger inverter, or three or four central inverters, the conditions that inhibit maximum output are inefficient operations during low light levels, high impact of downtime, and increased downtime during service. In the midsection of the U.S., 35% of the time, the array is generating less then 20% of its rated capacity. That is a considerable amount of time to have all the inverters operating in an inefficient state. Refer to the chart for the associated percentage of time the capacity of an array is used throughout the year. The chart shows typical conditions in the most populous areas of the U.S.. This data reveals that the majority of the time is spent at low energy output levels. D i s t r i b u t e d Architecture Inverter Design Maximizes the Solar Field Performance D i s t r i b u t e d Architecture means dedicating multiple inverters to an array such that the entire array, up to

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EQ February 2014

2 MW, is available to feed every inverter via a DC Bus. In this configuration, all the available energy is available to feed as few inverters as needed at any instant in time. Using a multiplicity of modest size (165kW) inverters, this example shows each inverter connected to the DC bus, and each inverter in turn feeds a dedicated input on a load center transformer. In this case, there are three load center transformers, each with 4 inverter inputs. Field mounted combiner boxes each feed one of the breaker boxes, where the current is monitored (combiner level monitoring), and these breaker boxes are physically and electrically connected to the DC bus. A smart controller takes care of the operation and monitoring. Here is what happens: At the end of each day the smart controller reads the operating hours of each inverter and establishes a sequence for the next day’s operation. Each inverter has three modes; standby, Master, or Slave. The unit with the least amount of operating hours begins the day as Master, and subsequent slave units are brought on as needed in the order of their operating hours. The next day, the sequence is rotated, insuring equal run times for all units. It takes as little as 650 Watts of solar power to start exporting energy to the grid. So, every morning, every evening, and during overcast conditions, the system expands the operating window by funneling all the available energy to only one inverter, which starts exporting energy at 650 Watts. With a 2 MW, 12 Inverter System, the “composite” efficiency curve is shown. Note that the inverter system is operating at peak efficiency at less than 2 % of the system output. The “Master” inverter is responsible for the MPPT function for that day. Using a classic “Perturb and Observe” routine, the Master inverter sets the operating current for the entire array, communicating those instructions to every inverter. However, only the inverters that are on are acting on that signal. When the 1st inverter reaches 85% of its capacity, the next one is brought on, in slave mode. This is repeated until solar noon when all inverters are on. As the day wanes, inverters are pulled off, until at the end of the day, the only one left running is the one that started the day. This describes a fully sunny day; it gets more interesting on a 38

EQ February 2014

partly cloudy day. The inverter system must not only follow the changing sunlight level via the MPPT function, but it must add and shed inverters in response to the available energy. In order to minimize switching transients, the current is ramped to zero prior to switching inverters, and hysteresis is used such that power and time thresholds are used to determine the switching behavior. All of this results in excellent MPPT tracking, and an operating sequence that results in each inverter spending approximately 40% of the available (daylight) time operating and 60% of the time resting.

The Importance of Monitoring A Solar Array is a complex low-energydensity system consisting of many solar panels and circuits. Consider that a 1 MW array built of 250 W (60 cell) panels will have 4000 individual panels, wired either 14 in series for a 600 V system (286 strings), or 22 in series for a 1000 V system (182 strings). Each string lands on a fused input in a combiner box. The predominate nature of a solar panel failure is an open circuit as opposed to a short circuit. Such a failure will result in a failure of the entire string. The % reduction in power for that 1 MW array due to a panel (string) failure is 0.35% for 600 V stringsor 0.55% for 1000 V strings. Neither of these are large enough to catch based on the array output. It is important to monitor the DC output at the combiner box level. In this case, a string failure will result in a nominal 5.5% reduction in output of that combiner box as compared to a non-faulted condition. This level of reduction is easily observed and ﬂagged at the combiner box level. Monitoring at the string level becomes very expensive, and may result in more “noise” rather than useful information. In the Inverter(s), AC and DC parameters should be monitored along with critical temperatures and fault history. Performing a trend analysis on critical temperatures, typically the IGBT Heat Sinks and the internal ambient, may head off fan failure or warn of clogged inlet filters prior to any curtailment or shut down. Fault history may indicate interconnect issues (phase-to-phase balance, neutral faults). Repeated Ground

Fault trips, especially in the morning with panels covered with Dew, may indicate broken panels.

Issues Addressed: Reliability and Availability It is a given that distributed architecture results in improved reliability, uptime, and availability. If an inverter faults, it is bypassed, such that there is no impact on energy production except for a small amount of clipping near Solar Noon on a sunny day. With a 12 inverter system and 1 faulted, the possible energy loss ranges from zero on an overcast day to less than 3% of nominal production on a sunny day. Service, either scheduled or unscheduled, is a requirement over the lifetime of the array. The ability to isolate an inverter (or any component) to service with minimal disruption of the output will minimize disruption during these events. The design of a distributed architecture system is modular. Each inverter has both DC and AC disconnects to allow it to be completely isolated for service. A blown fuse, or loose termination can be fixed quickly with no interruption of array output from the other inverters. A problem in the “core” inverter would result in that unit being replaced with a spare unit, and repaired at the factory; not in the field. Replacing a “core” inverter takes 30 minutes or less.

Conclusion Using a distributed inverter architecture design maximizes the field performance and return on investment of any given solar field between 500kW and 10 MW. The built in reliability of multiple inverters, the lower power threshold needed to start the energy production process and the lower per unit use of each inverter presents the distributed architecture design as a superior solution for solar installations.

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I NT ERV I EW

Reinhard Ling

Business Manager IBC SOLAR EQ : What potential do you envision in India’s Market in near and Mid-Term Future? RL : I expect there will be new PV installations with approx. 1 GW per year in average in the next few years. I do not expect a big change in the ratio of open space systems / rooftop systems / backup systems

EQ : What changes have your experienced in selling PV in last 5 years RL : The price pressure increased heavily. Margins are very low these days. The competition is very intensive. At the same time the PV market became more professional.

EQ : What’s the roadmap for production ramp up for your co and further growth in terms of technology, output of your products RL : We are EPC contractor, we do not manufacture components. We are system integrator. For 2014 we want to reach 10+ MW in sales. In the next few years we want to achieve a minimum growth of 15% per year.

EQ : The Volumes in India will ultimately come from Rooftop/ Off Grid or Large grid Connected Systems RL : They will come from Large grid Connected Systems in the next few years.

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Offgrid could make an important step forward. There is a demand in solutions for the power cuts in India.

EQ : Start of 2013 we saw many states coming up forward with tenders close to GW of Projects…How much do you think is possible to achieve in 2014 RL : 1 to 1.5 GW

EQ : JNNSM new guidelines, VGF & DCR Rules…Whats you comments on the same.

RL : Some experts have forecasted this already last year. This approach was also tried in other countries in Europe, without any significant success. I personally do not believe in REC mechanism with the overall conditions we have in Indian energy market at the moment.

EQ : Open Access, Concessional Wheeling, Transmission, Cross Subsidy etc…is the key to achieve huge installations in India…What are your views on the Private PPA Market

RL : The government learnt its lessons from phase I. The made changes make sense.

RL : First of all we do not believe in the very huge GW systems. In Europe there was the same idea, a project called DESERTEC. So far it seems not be a successful story, there are many, many problems.

EQ : REC Mechanism has disappointed Investors…What are your views on the future of the same.

PV is an decentralized energy source, which should be produced there the energy is needed. As closer to the consumers as better. Transmission losses will be minimized.

EQ February 2014

SO L A R I NV ERT ERS

Innovative Electrical Balance Of Systems Solutions Exclusively From Schneider Electric Anurag Garg, Vice President, Solar Business, Schneider Electric India

chneider Electric’s latest Conext Core XC series inverter is designed for ground-mounted solar farms and large commercial buildings. The Conext Core XC series has best in class efficiency of upto 98.9% and field proven industrial design based on Schneider Electric power drives. Conext Core XC inverter provides ﬂexibility for any photovoltaic type and installation. The Inverter comes with integrated AC and DC switchgears which provide more ﬂexibility for interconnecting with AC and DC system and also reduces the requirement for external switchgears. Conext Core XC series inverters captured market very fast worldwide. Schneider Electric launched this product in 2012 in India and since the launch Schneider Electric has become a major player contributing significantly in overall solar inverter sales. Apart from India, Schneider Electric Conext Core XC series solar inverters are available in other major Solar focused countries. Schneider Electric has also announced the availability of another version of Conext Core XC inverter XC-NA for American market in the year 2013. Conext Core XC series inverters are manufactured locally in India at our state of art global manufacturing facility with production capacity of 1.4GW per annum. Schneider Electric is the first company which started local manufacturing of solar inverters in India to ensure that we meet our commitment of providing fast deliveries to our customers.

EQ February 2014

The Conext Core XC inverter complies with latest safety and compatibility standards of grid which are essential for large PV plants. Recently the inverter passed seismic test which is required in areas which are highly prone to earthquakes like Japan. In India, almost the entire northern belt comes under seismic zone. The Conext Core XC Series includes an innovative fast sweep MPPT algorithm (Maximum Power Point Tracking) which enables it to operate in difficult environmental conditions and helps to generate optimum yield from PV arrays. Also the inverter has been qualified for use in harsh environmental conditions through rigorous custom reliability testing.

Key features of Conext Core XC inverter include: High return on Investment: The Conext Core XC inverter has best –in class efﬁciency and increased uptime due to high reliability and comprehensive global service network. Design and reliability: The Conext core XC inverter has a robust design through rigorous customer reliability testing which ensures the optimum performance and uptime. Flexible: Conext Core XC inverter has variety power outputs from 540KVA to 680KVA. It provides full grid management features including voltage/frequency high and low ride through, reactive current support, VAR control, and frequency based

active power control. The inverter has fully configurable firmware based on different utility requirements. Easy to Install: The inverter has a compact size to accommodate in compact enclosures. The integrated AC and DC switchgears with lockout and tagout feature and inbuilt 1000V startup capability also helps. Easy to service: Conext Core XC inverter has inbuilt AC and DC switchgear using Masterpact NW air circuit breaker. The inverter is full suited to alarms and troubleshooting tools allowing remote diagnostics. Within a short span Conext Core XC inverter has a list of satisfied customers. We are proud of the fact that our XC series inverters are being used by the plants which have highest CUF%. Schneider Electric introduced Solar Inverter Sub-station (SISS) in 2012 which is factory integrated, tested and validated ‘plug and play’ power conversion system , built around two XC series inverter along with MV transformer (both 11KV and 33KV range), medium voltage switchgear, monitoring devices and DC re-combiner. This solution gives customer more ﬂexibility, reduced construction lead time, fast installation, lower cost of commissioning etc. The capacity of one SISS is up to 1360KVA and it is easily suited for multi MW plants with multiple quantities to connect them all in ring network via Ring Main Unit. The solution is outdoor type and gives

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protection from direct sun light, dust, humidity to equipments fitted under the enclosure. The Solar Inverter Sub Station is designed to face harsh climatic conditions in India. Suitable ducting has been provided on each inverter unit to exhaust hot air directly outside the box. The design includes separation to Inverter section, RMU section and Transformer section and their separate access. Solar Inverter Sub Station can further be expanded by adding components for climate control as well as function modules for safety, monitoring installed equipment and voltage measurement.

Key features of Solar Inverter Substation include:

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High return on investment: Solar inverter Sub Station has compressed construction lead times through factory integration. It provides benefits of reduced transportation, ofﬂoading cost at site and labour cost. Design and Reliability: Solar Inverter Sub Station is designed to withstand harsh environmental condition for both tropical and desert environments. Easy to Install: Solar Inverter Sub Station can be transported on standard carrier due to its compact and light design. It is suitable for “standard roads and bridge clearances.” The solution is delivered preassembled, pretested and validated and this reduces onsite labour cost and project duration.

Easy to Service: Enclosure design is safe and convenient for maintenance purpose. Schneider Electric provides local service and maintenance support available in 100 plus countries. The SISS itself says its success story having completed one year of installation in adverse weather conditions in areas like Rajasthan. During this one year it has undergone high temperature, high humidity, dust etc.

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EQ February 2014

SO L A R I NV ERT ERS

A New Nine Level Symetrical Inverter Derived From Seven Level Inverter Dr Umashankar S , Saketh Dogga, Sumanth kumar A.V School of Electrical Engineering, VIT University, Vellore, Tamilnadu, India

The main objective for a grid-tied Photo Voltaic (PV) inverter is to feed the harvested energy from PV panel to the grid with high efficiency and high power quality. This paper proposes a new topology of cascaded multi-level inverter that utilizes 6 switches and 4 sources which is less than conventional topology. In this paper, a CMLI is controlled with Sinusoidal PWM technique with Alternative Phase Opposition, phase Disposition, Phase Opposition and Disposition, and a new hybrid PWM technique Alternative Phase Opposition and Disposition with Variable Frequency (APOD +VF) are used. Variation of Total Harmonic Distortion (THD) in the outputs and switching losses of the new MLI is compared with conventional cascaded MLI and other existing 7 level reduced switch topologies. To validate the proposed topology the circuit is simulated and verified by using MATLAB/Simulink

rid connected inverter systems are gaining importance due to the increase in demand on renewable energy sources. For power conversion the concept of utilizing multiple small voltage levels was patented by an MIT researcher twenty years ago. The multi-level inverter system usage became very prominent where there is a need of high voltage and reduced harmonic content. The major advantage of cascaded Multi Level Inverter is the switching frequency and device voltage rating can be much lower than those of a traditional two level inverter for the same output voltage level. Now a days renewable energy sources like photovoltaic, wind and fuel cells, interfacing with high power applications became feasible with introduction of multilevel inverters. MLI’s are generally classified into: •

Flying-capacitor inverter

•

Diode-clamped inverter

•

Cascaded H-bridge inverter

From these inverter topologies cascaded H-Bridge multilevel inverter is widely used. In symmetric MLI all the DC voltage sources used are of equal magnitude, whereas in asymmetric MLI magnitudes of DC voltage sources are unequal. 42

EQ February 2014

Figure (1): Conventional Cascaded N-level MLI

(1)Conventional Topology. This topology is designed by using 3 H Bridges each H Bridge contains 3 dc voltage sources and 4 switches together forms 12 switches in total. Expression for output voltage for m level = (n+2)/2 where n is the number of switches in configuration. Each H Bridge produces an output as 3 levels, +Vdc, 0,-Vdc.By cascading these 3 bridges in such a fashion to produce stepped 7 level staircase waveforms. Figure (1) represents the Conventional Cascaded H bridge inverter. (3) Proposed 9 Level, 6 Switch Topology. The proposed 9 level MLI is redesigned

from existing 7 level 6 switch topology. By using same number of switches and same number of dc voltage sources with added 1 diode attaining “9 level 6 switch configurations”. The circuit thus obtained is simplest design compared to conventional and all other existing topologies. It consists of 4 dc voltage sources, 6 switches, 1 diode. The fig[2] shows the proposed topology.

In this proposed topology the arrangement of switches differs entirely from the existing topologies. To obtain the unique pulse pattern switches should be triggered at proper instant. This topology gives a higher level output waveform from the same number of switches as in existing topology. Thus a less distorted waveform is produced in the output. Amount of THD produced is very much less when compared to the existing topology. 4 dc sources are used for generation of 9 level results in less utilization of sources. Only 2 switches conduct in an instant in the positive

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TABLE (1): Switching scheme for 9 level 6 switch topology

Figure (2):9-level 6-switch proposed topology

half cycle and one switch and a diode in the negative half cycle in an instant.

TABLE (2): Comparison of THD Content

Simulation Results In the proposed 9 level multi-level inverter the circuit is built of 6 bidirectional switches and a diode. The load is resistive with a value of 10 ohms. Four 100 volts symmetric D.C input sources are used. Figure (3) represents the simulation circuit of proposed topology. Note that in order to develop a 9 level output waveform without any distortion, mosfet block parameters in MATLAB should be varied across the load. Here for 10 ohm resistive load, mosfet block parameters should be as follows: FET resistance= 0.01ohms, Internal Diode Resistance=10kilo ohms

TABLE(3) Comparision of switching stress

Conclusion: The proposed topology of cascaded H bridge multi-level inverter using APOD+VF hybrid PWM technology gives a reduced power loss, low THD ,improved power quality, with less number of switches by optimizing the total cost . The switching stress on the switches is less compared to conventional topology. The development of economic power conversion for solar energy will have high impact in the future. More than that, the proposed topology can be easily extended to higher level with introduction of less number of switching devices.

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By using APOD+VF PWM technique a THD of 10.16% is obtained

Fig(3): Output voltage waveform

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EQ February 2014

M ENA REGI O N

From Vision to Action: Steady Progress in Renewable Energy Deployment across the GCC Countries Dr Saima Munawwar - Post-doctoral Researcher, Research Center for Renewable Energy Mapping and Assessment (ReCREMA), Masdar Institute of Science and Technology

istorically reliant on fossil fuels for their economy, the six GCC nations- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates (UAE) - are now determined to foster a meaningful renewable energy share in their energy mix. Among the countries with discrete renewable energy targets are the two Emirates of Abu Dhabi and Dubai with an aim of 7% and 5% share in their total power generation capacity by 2020 and 2030, respectively. Several sizeable solar energy capacity additions are currently under way to meet the goal. Shams 1, a utility-scale CSP plant based in MadinatZayed (Abu Dhabi), is one such ﬂ agship joint venture of Masdar (60%), Total (20%) and Abengoa (20%). It extends over an area of 2.5 km² consisting of 768 parabolic trough collectors with a100 MW of renewable power generation capacity. Globally, solar technologies are emerging as strong proponents in resourcing various energy needs, remote or otherwise. The day is not far when solar power generation will reach parity with conventional electricity owing to continuous technological advancements and escalating fossil fuel prices. One of the most promising regions in the world for solar energy deployment is the Arabian Peninsula where the sun practically shines throughout the year with 80-90% cloudfreeskies. In order to successfully harness such potential, solar resource assessment is a key step towards proactive solar technologies integration. Solar radiation data, magnitude and variability inclusive, is quintessential in obtaining realistic performance estimates of a given solar technologyat a given

EQ February 2014

location. Economics and reliability of a solar system boils down to a simple fact involving complicated physics, which is, how accurately the incipient solar irradiance is estimated. The two components, direct and diffuse, and their total (global) irradiance are each equally significant and may find use in a broad range of solar applications.

time manner, i.e. updated every 15 minutes. Hourly, daily, monthly and yearly irradiation values are derived therefrom (cf. attached figure: annual global horizontal irradiation for 2008 and 2010). The resulting product, UAE Solar Atlas, was officially launched in summer 2012 and can be accessed here: http://atlas.masdar.ac.ae/

Although ground based solar radiation measurements comprehensively characterize the local solar climate, their set-up from scratch is cost-prohibitive, time-consuming and to a considerable degree impractical for prompt resource assessment needs. In the absence of sufficient ground measuring stations, developers within solar technology industry have to rely on models and modelled data. To help in improving the accuracy of estimation, we need to study the solar resource variability and address the challenges faced by the prevalent climate locally. For instance, dust and humidity are two major sources of irradiance attenuation in the case of UAE or, in general, the Gulf region.

However, the story does not end there. After resource assessment, we need to determine the potential for effectual deployment. In 2013, ReCREMA channelized its ongoing efforts on technology layer assessment. What that means is to determine the techno-economic feasibility of both PV and CSP technologies and integrate such tools in the infrastructure of the UAE Solar Atlas. Currently, the solar technologyteam at the Center is developing the performance modelling tool based on Masdar’s PV test field data (I-V characteristics, module backsheet temperature, and weather parameters). A new set of PV modelling tools will further be developed to account for the effects of atmospheric and superficial dust. On the CSP front, future work involves simulation and validation of plants’performance representing four different technologies (parabolic trough, power tower, CLFR, and dish-Stirling) and several different capacities under typical UAE climatic conditions. Advanced tools such as solar technology simulation, and solar resource and power production forecasting will eventually be integrated into the solar atlas platform.

To this end in 2012, the Research Center for Renewable Energy Mapping and Assessment at Masdar Institute (ReCREMA) was mandated to develop an interactive solar resource mapping and assessment tool in collaboration with the International Renewable Energy Agency (IRENA). A statistical (artificial neural network) model using historical satellite imageswas developed in-house to retrieve irradiance over UAE. The estimated irradiance was validated using ground measurements at several local sites. The model producesdirect, diffuse and global irradiance maps at a 3 km spatial resolution and in a near real-

ReCREMAand K.A. CARE (King Abdullah City for Atomic and Renewable Energy) of Saudi Arabia have recently signed a 3-year agreement with plansto

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extend the Center activities to the whole Arabian Peninsula. As part of this agreement, ReCREMA will perform solar resource and technology performance modelling and forecasting using data derived from weather stations and test fields in Saudi Arabia. Steady growth of renewable energy market in the GCCis a sign of strong foresight, political will and timely progress. However, while there have been innumerable feasibility studies on solar and wind energy in the region, actual deployment is fairly limited. In fact till date, Shams-1, 10 MW Masdar PV-facility and Dubaiâ&#x20AC;&#x2122;s recently commissioned 13 MW PV plant (as part of the proposed Mohammed

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bin Rashid Al Maktoum Solar Park) are the only sizeable up and running projects. Others are either pilot/ demonstration programmes or mostly in pipeline with equivocal timeframes.Nevertheless, renewable energy targets can realistically be met through development of legally binding regulatory framework, adequate financemechanisms and country-level market strategies. Localized technology clusters which orient and diffuse RE technology in the right direction, not only create awareness but also act as catalysts for other countries in the region to follow suit. Masdar, a wholly-owned subsidiary of the Abu Dhabi Governmentâ&#x20AC;&#x2122;s MubadalaDevelopment Company, is one

such pioneering exampleat the forefront of clean energy drive. It comprises three business units--including Masdar Capital, Masdar Clean Energy and Masdar City-and is complemented by Masdar Institute, an independent, research-driven graduate university. As a matter of fact, Masdar can be touted as the epicentre of renewable energy activity in the GCC region.The hydrocarbonrichcountries have clearly started to see the manifold benefits of developing renewable energy technology. To turn this vision into a success story all that is needed is long-term commitment.

EQ February 2014

SO L A R T H ERMA L

Vaibhav Singh, Consultant, PricewaterhouseCoopers Pvt. Ltd.

Vibhash Garg, Senior Manager, PricewaterhouseCoopers Pvt. Ltd.

Solar Concentrators For High Temperature Applications

ndia’s energy consumption during 2011-12 stood at 280934 Peta Joules (PJ) and Industrial sector with 47% of the total consumption was the largest consumer of energy. It is estimated that of the total fuel consumption in India, almost 25-30 % is consumed by industries for low & medium heat processes ranging from 60˚C to 250˚C. With its large population and rapidly growing economy, India needs access to clean, cheap and reliable sources of energy. India by virtue of its geographic location is bestowed with a healthy solar resource and lies in the high solar insolation region,

with most of the country having about 300 days of sunshine per year with annual mean daily global solar radiation in the range of 4.5-6.5 kWh/m2/day. Since India depends on fossil fuels to meet its energy needs and with increased volatility in prices in fuel markets an increased use of solar energy can help maintain the country’s energy security and reduce its exposure to price rises. Solar thermal based energy generation technologies find huge areas of application, especially in industrial, commercial and residential sectors. Global solar thermal capacity worldwide was 282 GWth at the end of 2012, and is

expected to reach 500 GWth by 2017. The current market is dominated by China with almost 68% of installed capacity, followed by Germany, Turkey, Brazil, India and Japan. International Energy Agency (IEA) technology Roadmap for Solar Heating and Cooling estimates the long-term potential for solar thermal applications in industrial applications at 7.2 EJ/year and 1.5 EJ / year for solar cooling. In order to show the magnitude of these figures, the solar collectors for low-temperature process heat (<120°Celsius) could reach an installed capacity of 3200 GWth (producing 7.2 EJ solar heat per year) by 2050, which would be

Figure 1. Prominent CST technologies

EQ February 2014

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the equivalent of 20% of energy use for low temperature industrial heat by that time. Solar thermal includes solar water heaters (glazed), pool heating (unglazed), solar space heating (district heating), solar air conditioning and process heat applications. Industrial process heating and cooling is one of the least developed solar thermal applications so far with about 250 operational installations worldwide. Industrial heat is characterized by a wide diversity with respect to temperature levels, pressures and production processes to meet the many different industrial process demands. Concentrated Solar Technologies (CSTs) track the sun’s incoming radiation with mirror fields, which concentrate the energy towards absorbers, which then transfer it thermally to the working medium. The heated fluid or steam may reach high temperatures and may be used for various processes requiring heat. For industrial processes where temperatures in the lower temperature range (less than 120 °C) are required, technologies such as Scheffler dish and Non-Imaging concentrators are common and for higher temperature range applications, technologies such as parabolic trough, Linear Fresnel, paraboloid dish and ARUN dish are preferred. CSTs based on single axis tracking mechanism like Linear Fresnel and Parabolic trough can generate anywhere from 30003500 Kcal/m2 of solar concentrators area on a clear sunny day (In a region with good solar irradiation like Gujarat, Rajasthan, Tamil Nadu etc.). Technologies based on Dual axis tracking like Paraboloid dish and ARUN may have higher heat delivery by approximately 5% in comparison to single axis tracked dishes due to avoided errors in manual North-South adjustments. These systems yield payback periods of anywhere from 2-4 years when replacing fuels like Diesel, Furnace Oil etc. and payback period of 6-9 years for cheaper fuels like Coal, Briquette, firewood etc. Paraboloid Dish (Scheffler) Parabolic Trough ARUN- Double axis tracker CSTs can produce a range of temperatures, between 50°C and up to over 400°C, which can be used in a variety of these heat applications. The industries showing good potential for implementation of solar

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concentrators are food processing, dairy, paper and pulp, chemicals, textiles, fertilizer, breweries, electroplating, pharmaceutical, rubber, desalination and tobacco sectors. Table 1 lists out various industrial sectors and corresponding processes with potential for application of CSTs.

chillers, which could utilize the steam or hot water produced from CSTs to satisfy the cooling demand. Such CST driven solar cooling installations are already installed at various industries like Turbo Energy Limited (TEL), Chennai with 40 TR VAM capacity; Magneti Mareilli, Gurgaon with 30TR VAM; Mahindra & Mahindra, Pune with 100 TR

Table 1. Industrial sectors and processed with potential for CST application

Sector

Processes where application possible

Food processing

Chilling/cold storage, Cooking, extraction, baking, Pasteurization, Sterilization, Bleaching, Drying etc.

Breweries

Boiling, mashing, Cold conditioning, heat for processes like fermentation

Rubber

Heating, Digestion, Vulcanizing

Pulp & paper

Pulping, Digestion & washing, Bleaching, Evaporation, Drying,

Tobacco

Steam conditioning, drying, Softening

Electroplating

Post plating treatment, water heating, drying,

Pharmaceutical

Distillation, drying, evaporation, fermentation,

Textiles (Spinning & weaving,

Preparing warps, Sizing, De-sizing, Scouring, Bleaching,

Finishing)

Mercerizing, Dyeing, Drying, Finishing

Chemicals and Fertilisers

Primary reforming, Ammonia synthesis, CO2 removal, Methanation, Steam stripping

Refining

Desalting, Coking, Thermal cracking, Cleaning, wastewater treatment

Ceramic tile & pottery

Benefication, Drying, Presinter thermal processing, Glazing

Desalination

Multiple effect distillation, Multi stage ﬂash distillation

Others (Plaster of Paris, Steel Augmenting steam to boilers, boiler feed water heating, re-rolling, Brick making, Cement,

Drying

Mining)

Any industrial/commercial establishments currently using Steam/Hot water for process applications can also employ CSTs with a minimum tinkering to the existing setup. Further potential and promising applications of CSTs include solar based cooling (air conditioning, freezing, refrigeration and cold storage). A strong argument for the use of solar cooling systems is that the highest cooling demand occurs at the time of the highest solar energy availability. The pharmaceutical, food processing, dairy and breweries are the largest industrial users of process cooling in India. Cooling can be achieved with concentrated solar technologies in combination with absorption chillers which use hot water or steam at 100250 ºC and provide cooling anywhere from 5 Ton of Refrigeration (TR) to 250 TR. Most of the cooling in these sectors is currently provided through absorption

VAM and NTPC, Greater Noida with 50 TR VAM etc.

Incentives for installation of CSTs Coherent and consistent policy and regulatory frameworks, conducive to growth are central to the successful dissemination of solar technologies in India. Recognizing the huge untapped potential for solar thermal applications in Industries and commercial sector, MNRE has supported development and installation of concentrated solar technologies, through its subsidy schemes. MNRE subsidy program provided up to 30 % subsidy for CSTs (60 % for special category states like Sikkim, J&K, Himachal Pradesh, Uttaranchal and North-East states), subjected to maximum benchmarks, as provided in Table 2. Units installing solar thermal systems also have an added advantage of claiming

EQ February 2014

Challenges and Barriers to uptake of CSTs in India

accelerated depreciation (AD) under the IT Act. The IT act allows for an 80% depreciation benefit for each of the first two years on a residual basis up to an upper limit of the 90% of the overall capital cost incurred.

Despite the obvious potential for solar industrial process heat, the technology is not yet widely adopted in India. The technology

Table 2. MNRE subsidy benchmarks for CSTs Solar thermal systems/devices

Subsidy (Rs./ sq.m.) or 30% of project cost whichever less

Concentrators with manual tracking

2100

Non- imaging concentrators

3600

Concentrators with single axis tracking

5400

Concentrators with double axis tracking

6000

MNRE subsidy has supported installation of CSTs and has contributed to the overall objective of commercialization of solar

involves high costs when compared with other conventional sources and requires technical and financial supports to make it a profitable

healthy and growing industry. The key barriers for industrial applications are low awareness about CST being a potential energy source for industrial process heat, lack of confidence that the technology works in local conditions & applications, and payback periods that are considered unattractive by potential customers using cheaper fuel like Coal and briquette. There are financing barriers as well and consumers are still to begin to approach these technologies as long-term investment to offset their dependence of fossil fuels. A few other barriers are tabulated in Figure 2 below. There are also a growing number of international support programmes focussed on applications of CSTs. United Nations Development Program (UNDP), United

Table 3. Installation and capacity addition targets

S. No.

Category

Status

Target (Phase 2: Upto 2016-17)

No. of Systems

Concentrator No. of Systems area (m2)

Concentrator area (m2)

Cooking systems (Steam and Direct)

126

12,000

Atleast 100 institutions

Industrial, Hospitality, commercial etc.

10,000

400

100,000

Solar Cooling

8000

200

60,000

thermal technologies in India and help in satisfying solar thermal collector targets for Jawaharlal Nehru National Solar Mission (JNNSM) of 7 million sq meters by 2013, 15 million m2 by 2017 and 20 million m2 by 2022. The installed solar collector area stands at 7.31 m2 (as of October 2013), which include 150 CST installations, making India the leader in CST installations globally. Table 3 shows the installed capacity and the capacity addition targets for CST .

venture for heat/cooling generation. It is seen from practical experience in introducing new technologies that most of the barriers disappear when a critical market mass is achieved which, in a sense, is the level of market deployment necessary to support a

Nations Industrial Development Organization (UNIDO) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), with support from MNRE are implementing or developing well-resourced programmes that target or include the scaling up of

Figure 2. Barriers to uptake of CST applications

The majority of Indian concentrated solar installations are for cooking; very few are in air conditioning and for satisfying heat requirement in dairy, food processing, metal treatment and chemicals etc. For community kitchens, low temperature steam (below 150 °C) has traditionally been supplied through Schefﬂer dishes, but a paradigm shift is visible with more installations coming up in the Industrial sector and targets also being revamped to provide a push to CSTs in Industries. 48

EQ February 2014

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solar energy in the industrial context. The most relevant of these is the UNDP-MNREGEF programme on “Market development and promotion of solar concentrators based process heat applications in India”, focussed entirely on CSTs for industrial, hospitality and institutional cooking applications.

The aim of the project is to facilitate installation of 45,000 sq. m. of solar concentrator area in India by March 2017 through 30 demonstration and 60 replication projects. During the 5 year period, these projects will help to reduce the direct emission of CO2 by 39,200 tonnes. To develop demonstration projects, a UNDPGEF support of 15% of the project cost (to a maximum of Rs. 30 lakh) will be available for selected demonstration projects. For Replication Projects, support up to Rs. 4 lakhs will be available for each of the selected replication projects which will cover performance monitoring of the system and expenditure incurred on feasibility study, if any. This support will be in addition to 30% support being provided by MNRE for installation of systems and an accelerated depreciation benefit, making CSTs a highly incentivised renewable energy technology. To address the barriers pertaining to low awareness and lack of confidence, the UNDP project aims to build an evidence base of performance data, collected from both specific technology assessments and also from the demonstration systems that the project will fund. The project is also supporting development of performance measurement norms and measurement equipment specifications, establishment of test facility and guidelines, development of national standards and component specifications, training for stakeholders relevant to CST, development of case studies and organizing awareness generation workshops in various industrial clusters in India. There is a strong case for political and institutional support to the CSTs until critical mass of the market is reached. Many of the manufacturers have now started providing guarantees on performance of CSTs and are also providing performance monitoring data from previous installations, hence instilling confidence among potential beneficiaries. Through this project, MNRE has also been devising new and innovative support mechanisms and additional support

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of 10% of the cost (a maximum of Rs. 15 lakh) is available to ESCOs to encourage manufacturers/entrepreneurs to execute projects on CSTs. Projects generated in ESCO mode are expected to help develop confidence among beneficiaries and generate more proposals as they will be win-win positions for both the manufacturers/ entrepreneurs and beneficiaries. Another scheme has been developed for repair of 5 year old non-functioning systems. The support to such systems is on cost sharing basis, wherein 10% of the project cost (a maximum of Rs 15 lakh) for repair & renovation can be provided to beneficiaries with the proviso that an equal amount or more is also spent by them.

application of CSTs in Industries and a number of well established technologies are now available. In order to realise the full potential of this novel technology, steps need to be taken in the direction of developing a policy framework conducive to technology penetration and financial incentives to be given to technology initiatives. Addressing the barrier of low awareness plays a key role in assisting this technology reach maturity in the Indian market. Taken such pro-active measures, we would be able to see this sector gradually change itself from luxury to a necessity.

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Another GEF supported initiative is UNIDO-MNRE-GEF program on “Promoting business models for increasing penetration and scaling up of solar energy” which targets the low to medium temperature range to satisfy both heating as well as cooling demand for both Industrial and commercial sectors. Specifically, this project seeks to establish the applicability of solar technology to processes that take place in the temperature range of 90°C to 450°C and eventually develop pilot projects to further demonstrate technical and economic viability of such projects and in the process bring the target interventions to a financial closure. The project aims to develop around 25-30 demonstration projects and an equal number of replicated projects based on solar thermal technology applications over a horizon of 5 years and make inroads in selected industrial sectors and commercial establishments. Both these initiatives aim at supporting the current MNRE subsidy scheme to encourage the widespread uptake of solar for industrial heat (and cooling) and therefore to avoid GHG emissions and provide industries with an additional source of energy. The benefits of CSTs are multiple, emission reductions, diversity of fuel supply and energy security, reduction in fuel costs and reliance on fossil fuels, a reliable energy supply, economic growth, job creation, as well as the global potential for technology transfer and innovation. India is the world’s leading market for CSTs with a massive potential demand and range of domestic manufacturers, most of which have developed their products indigenously. A vast potential exists for

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SO L A R T H ERMA L

After two years running at Masdar City, TVP Solar released performance data regarding its solar air cooling pilot plant. This is a paradigm shift in air conditioning energetics and economics.

High-Vacuum Flat Solar Thermal Panels: Proven High Efficiency and Insensitive to Dust for Air Cooling Applications TVP Solar

A Global Issue With Regional Concerns The world’s most energy-intensive applications is air conditioning (A/C). In regions where A/C is needed the most, the sun shines brightest and unfortunately electricity costs tend to run the highest; there are only two solutions: (i) run compression-based electric air conditioning machines; (ii) use a thermally-driven alternative, such as double effect absorption chillers, which require a thermal input via heat transfer ﬂuid of 180°C and have a high coefficient of performance (COP). Recently these thermal air conditioners have seen resurgence worldwide, being tested with mirror-based concentrating technologies, traditionally able to achieve the industrial temperatures required, but negatively affected by the environments where these machines are needed. Most importantly, sand covering the mirrors and hazy conditions in the sky scattering the sun’s rays disrupt operation. In general, due to their physical properties, mirrors require normal light (aka “direct normal irradiation,” or DNI) in order to reﬂect the energy to the receiver. If sunlight does not fall at 90° to the surface

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plane of the mirror, it is effectively “lost” in relation to the heat generated. While some non-imaging optics may be used to reduce this issue, the fact remains that if there is sand, cloud, pollution or haziness in the air, more that 30% of available light is lost (aka “diffuse” or “hazy” light). The total light falling on the Earth’s surface is therefore the DNI + diffuse light, which is usually quoted as “Global Horizontal Irradiation,” or GHI. The higher the total input, the higher the output and the lower the US$/W ratio. Thus concentrators cannot compete, simply in terms of total input… Mirrored concentrators will use tracking systems to follow the sun to mitigate this,

increasing the collector efficiency. While this is very helpful, tracking adds mechanical factors to the system, increasing build and maintenance costs, as well as increases susceptibility to harsh environments (e.g. corrosion). Of course, it must not be forgotten that a dirty mirror, be it from dust or other, will also lose reflectivity and reduce system efficiency. This graph generated by METEONORM (world-class global weather data software) distinctly shows that in some cases, such as Abu Dhabi, only 54% of the light can be received by concentrating collectors. To put this in perspective, for a global average of 1’000 W/m2, the maximum radiation collected by concentrators is only 540 W/ m2.In turn the energy converted to thermal energy at whatever the peak efficiency of the system is in some cases below 40%! One way to overcome these issues is to eschew mirrors and use traditional flat plate solar thermal collectors. These flat plates not only receive both direct and indirect sunlight, but also do not require regular or specialized cleaning to operate. Until TVP Solar, no static thermal collector could achieve the industrial-level temperatures (e.g. 180°C) to drive the chillers.

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New Solar Thermal Panels Proven In-Field for Air Conditioning TVP Solar, SA, a Swiss designer and manufacturer of innovative high-vacuum solar thermal panels, has recently released results from its solar air cooling pilot installation at Masdar City in Abu Dhabi (UAE), where their flat panels successfully reach the 180°Crequired for the 2E absorption chiller. At Masdar, three different mediumtemperature (100°C – 200°C) solar thermal collectors were compared:the stationary flat plates by TVP Solar pitted against a Compact Linear Fresnel Reflector (CLFR) and Compact Parabolic Trough (CPT) tracking concentrating collectors. Each field feeds into a single tank, which in turn feeds a 50 TR double effect absorption chiller coolingonsite offices.

TVP Solar Solar Field Description: Aperture Area: 42 m2 across 4 independent strings of 10 panels Operating Temperature: 180°C Solar Field Output: 29,082 kWh/yr Peak System Effi ciency @180°C: 50% solar-to thermal; 70% solar-to-cooling with COP 1.41

tested through 200°C and have the globally recognized Solar Keymark™ certification, TVP Solar demonstrated peak system efficiency (net of piping losses) of well over 50%, with the MT-Power panel outputting almost 500W/m2 at 180°C.With a doubleeffect absorption chiller having a COP of 1.4, this means that the actual efficiency of the system, sunto-cooling, is 70%, with 700 W/m2! Over the course of one year of testing, one issue became clear: the concentrating mirrors had to be cleaned every few days in order for them to maintain peak efficiency levels.

The first obvious point regarding the high-vacuum ﬂat solar thermal collector field is the size; not requiring precision tracking mechanics and large mirrors, the solar field is much smaller, and therefore easier to install and manage. Second, and perhaps less clear, is the need for additional balance of system components, such as concrete base plinths to even out the installation surface. While this is important for the calibration of the trackers, in the case of stationary ﬂat plates, again there is the benefit of simple installation and design. The only solar thermal collectors to be

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The process not only requires specialized training, but also several washings with demineralised water. This means that concentrating technologies require additional maintenance expenses to maintain peak performance, using a scarce, expensive resource in a desert environment.

Maintenance-Free & Insensitive to Dust TVP Solar’s goal at Masdar City was to demonstrate not only the performance of MTPower, cost and energy savings,and reductions in CO2 emissions, but also to measure the effects of difficult desert environments. Over the period of one month, the panels were left uncleaned and measured daily to evaluate any performance changes. The results demonstrated predicted performances (both peak and average), which have always been superior to those of the concentrators installed at the same site. Effectively TVP can now correctly simulate and predict the effect of dust on the panels and compensate for dust deposits via the solar field size. At the core, this means that fields of TVP Solar high vacuum, ﬂat solar thermal

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panels can be completely dust-indifferent simply by increasing the size of the solar field by 20-30%! In addition, the TVP Solar panels are truly maintenance-free, given that they are stationary and have no mechanical moving parts. In the absence of tracking systems in constant need of recalibration, TVP fields effectively never have down-time and can be left to run with the automated control software.

Developed for Large Deployments TVP panels have been designed for largescale deployments; this fits perfectly with the optimal COP and US$/Wcool of absorption chillers (>100TR, or >350kWcool). Target clients include: shopping malls, hotels, data centers, office buildings and warehouses. Large installations also lend well to the hybridization of the absorption chiller by means of a backup combustible burner. This hybridization allows for 24/7 operation of always-on cooling in hot countries and a cooling/heating mix in temperate countries all in the same installation; saving on overall fossil fuel costs and emissions.

What About Electric Alternatives? 52

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One question arises: what about a photovoltaic (PV) driving electric chillers, which will even work where electricity prices are high? A valid point, the fact remains that the higher the ambient temperature, the higher the thermal collector efficiency, since the overall T° lift to reach 180°C is lower due to the ﬂuid’s starting temperature at Tambient. This is exactly the opposite of PV, which from recent publications, performance in hot countries is reduced by >0.4% for every 1°C over 25°C. Effectively, for PV, for regions like India, in-field performance is reduced to <10%; even if sold at US$ 1.00/Welec, PV is not competitive in terms of overall US$/Wcool…

Conclusions The results are clear: TVP Solar panels outclass concentrators in US$/W ratio.

in this makesconcentratorsuneconimcal for civil/urban applications in such regions. Counteracting this, by nature of ﬂatplate design, TVP panels capture 100% of sunlight, both direct and diffuse. Thanks to the high-vacuum insulation that makes up part of its patented technology, each panel also benefits of complete suppression of convection heat losses. This allows for both higher peak power and yearly output, at lower initial installation cost and significantly lower maintenance and operating costs over the solar field’s lifetime. Effectively the TVP solar field solution is already competitive with electricity in regions where the electric cost is >US$0.12 /kWh, such as Brazil, California and India! Simulations run off the data from the pilot test demonstrate that without incentives, the payback of a solar field of TVP panels is within 6 years…

In short, TVP Solar panels are the only proven solution for solar-assisted cooling and industrial processes in the sometimes polluted and always dusty, hazy environments in the sun belt worldwide, such as the Middle East, Brazil, and of course, India. The two primary factors of solar thermal performance in any environment, but deserts in particular, are the direct-todiffuse sunlight ratio (DNI:GHI), as well as the effect of dust accumulation. Clearly

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P O L I CY & REGUL A T I O N

Before The Haryana Electricity Regulatory Commission In The Matter Of : RPO

etition dated 8.06.2012 filed by Uttar Haryana Bijli Vitran Nigam (UHBVN) seeking review / or modification of Renewable Purchase Obligation (RPO).

Brief Background of the case

Petition dated 19.10.2012 and Supplementary filing dated 25.01.2013 filed by the Uttar Haryana BijliVitran Nigam (UHBVN) seeking review and / or modification of the Haryana Electricity Regulatory Commission (Terms and Conditions of Determination of Tariff from Renewable Energy Sources, Renewable Purchase Obligation and Renewable Energy Certificate) Regulations, 2010.

All the matters brought before this Commission by UHBVNL / HPPC relates to amendment and / or modification of Haryana Electricity Regulatory Commission (Terms and Conditions of Determination of Tariff from Renewable Energy Sources, Renewable Purchase Obligation and Renewable Energy Certificate) Regulations, 2010 and its subsequent amendments (hereinafter referred to as RE Regulations, 2010). Hence the Commission has considered it appropriate to dispose of all these petitions vide the present common order.

Petition dated 20.08.2013 filed by the Chief Engineer, Haryana Power Purchase Centre (HPPC), Panchkula seeking modification / amendment / deletion in sub – regulation (3) of Regulation 64 of the Haryana Electricity Regulatory Commission (Terms and Conditions of Determination of Tariff from Renewable Energy Sources, Renewable Purchase Obligation and Renewable Energy Certificate) Regulations, 2010.

Further, as the parties vide their respective prayers had sought amendment of RE Regulations, 2010 and relaxation or carry forward of Renewable Purchase Obligation (RPO) for FY 2011-12 and FY 2012-13 which could be done only after following due process laid down for the purpose, the Commission hosted the petitions on its official website and invited comments / suggestions / objections from the stakeholders and general public.

Petition dated 20.08.2013 filed Chief Engineer, Haryana Power Purchase Centre (HPPC), Panchkula seeking relaxation or carry forward of Renewable Purchase Obligation (RPO) for FY 2011-12 and FY 2012-13.

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Commission’s Analysis and order: At the outset the Commission observes that the intervener i.e. HAREDA has raised preliminary objections regarding non – maintainability of the present petition as the same is time barred as the same is being filed

after a delay of nearly nine years. Further, the petition in its present form does not qualify for review under Regulation 78(2) of the Haryana Electricity Regulatory Commission (Conduct of Business) Regulation, 2004. The Commission has considered the above preliminary objections and is of the view that HAREDA is probably referring to order dated 15.05.2007 passed by this Commission in the matter of Renewable energy Tariff and Other Issues for FY 200708 to FY 2012-13. However, the fact is that the Petitioner is seeking amendments in the RE Regulations notified by this Commission on 3.02.2011 and its subsequent amendments dated 3.02.2011 and 5.09.2011. These are certainly not far too back in the past as HAREDA would like us to believe. The Commission further observes that the proviso to Regulation 67 (2) of the RE Regulations, 2010 provides as under: “Provided that in case of genuine difficulty in complying with the renewable purchase obligation because of limited availability of renewable energy or non availability of certificates, the obligated entity can approach the Commission for relaxation or carry forward of compliance requirement to the next year”. In view of the above, the Commission finds no merit in the contention of HAREDA that the present petition is time barred / no petition has been filed for condonation

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of delay and does not meet the review criteria. Thus the Commission dismisses the preliminary objections and shall now proceed to examine the petition on merit of the case. The Commission notes that in all the four petitions before this Commission filed

by UHBVNL / HPPC the following issues have been raised for our consideration and order. Accordingly the issues framed and the findings / order of the Commission on the same are as under: Issue A: Whether the RPO target determined by the Commission vide RE Regulations, 2010 and its subsequent amendments need downward revision. The above issue framed by us have been examined and analyzed in depth. The Commission observes as also pointed by HAREDA that this Commission first determined the RPO targets in its order dated 15.05.2007. The trajectory fixed then was 3% in FY 2007-08 going up to 10% in FY 2009-10 of the total electricity consumption (sales) of the Discoms. This was done keeping in view the fact that a large number of Letter of Intent (LOI) was issued by HAREDA to the prospective renewable energy power project developers in Haryana. However, as per information available in the Commission and the PPAs approved, only about two micro hydel projects namely Puri Oil Mills and P&R have seen light of the day in the past about nine years. Further, only three biomass based power projects developed by Starwire, Gemco and Sri jyoti have been commissioned or are being commissioned including a few

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bagasse based co-generation projects by the Sugar Mills. Apart from these no wind, biogas power projects have been set up in Haryana. As far as solar power projects are concerned except for 7.8 MW solar power projects set up under JNNSM, Government of India scheme, none has come up on the ground

including the proposed solar power project of HPGCL mentioned by HPPC/Discoms. Given the aforementioned ground realties and the fact that not many renewable energy power projects are in the pipeline in Haryana due to various reasons including lack of wind and hydel generation potential, low solar insolation levels, expensive land and cost of biomass etc. the Commission, suomotu, lowered the RPO target in the RE Regulations, 2010 to 1.5% in FY 201011 & 2% FY 2011-12 and 3% thereafter and for solar the RPO target was 0.25% of the overall RPO which was subsequently amended to align with the National policy and benchmarks to 0.05% for FY 2012-13 and 0.10% for FY 2013-14 of the total energy consumption instead of a percentage of overall RPO. The Commission has also perused the RPO targets fixed by the different State Electricity Regulatory Commissions (SERCs). The same are tabulated below. It is evident from the table above that the RPO (solar as well as non â&#x20AC;&#x201C; solar) prescribed by the Commission is much less when compared to the RPO in other States mentioned in the table. This is primarily due to the fact that the renewable energy potential in Haryana is limited and the

Commission kept this in mind while setting RPO targets. The Commission also notes that the National Tariff Policy notified by the Central Government, in pursuance of the provisions of the Electricity Act, 2003 was amended in January 2011 to prescribe solar-specific RPO

of a minimum of 0.25% 2012 to be scaled up to 3% by 2022. Further, the National Action Plan on Climate Change (NAPCC) suggests increasing the share of renewable energy in the total energy mix at-least up to 15 percent by 2020. Further the National Solar Mission also provides that the solar power purchase obligation for States may start with 0.25% in the phase I and to go up to 3% by 2022. This could be complemented with a solar specific Renewable Energy Certificate (REC) mechanism to allow utilities and solar power generation companies to buy and sell certificates to meet their solar power purchase obligations. As far as availability of REC is concerned, the data cited by HAREDA, is sufficient to conclude that sufficient RECs are available at a reasonable rate in the power exchange. Further, the RPO quantum fixed by this Commission as a percentage of total consumption (sales) of Discoms is so low that it would have only marginal impact on the average power cost of the Discoms which is a pass through cost to be ultimately borne by the electricity consumers of the State. The issue raised by the Discoms regarding time lag in incurring any such expenses and its recovery has been already addressed by the Commission by way of FSA mechanism

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incorporated in the MYT Regulations, 2012 notified by the Commission. Thus relating RPO to the renewable energy generating capacities or planned capacities in Haryana would be against the spirit of National Policies including REC mechanism. In view of the above discussions the Commission answers the issue framed at ‘a’ in negative i.e. at this stage there is no need to lower the RPO from the levels prescribed in the RE Regulations, 2010 and its subsequent amendments. ISSUE B ) whether RPO shortfall in FY 2011-12, FY 2012-13 and FY 2013-14 can be carried forward to FY 2014-15. As per the data provided by the Discoms the shortfall in RPO in FY 2011-12 and FY 2012-13 add up to 561.04 MUs. The final status of FY 2013-14 would only be known after close of the financial year on 31st March, 2014. The Commission observes that the RE Regulations, 2010 provides as under: “ (2) Where any obligated entity fails to comply with the obligation to purchase the required percentage of power from renewable energy sources or the renewable energy certificates, it shall also be liable for penalty as may be decided by the Commission under section 142 of the Act. Provided that in case of genuine difficulty in complying with the renewable purchase obligation because limited availability of renewable energy or non availability of certificates, the obligated entity can approach the Commission for relaxation or carry forward of compliance requirement to the next year”. In view of the fact that the Discoms /HPPC in their petition has pointed out some genuine difficulty in meeting the RPO as speciﬁed by the Commission i.e. non – materialization of a lot of renewable energy power projects for which LOI was issued to the Developers by HAREDA and other difficulties cited in the petition as well as the willingness shown by the Discoms to purchase solar power offered under Batch – I, Phase – 2 of JNNSM scheme, the Commission answers the issue framed at ‘B’ in affirmative and orders as under: The Discoms / HPPC are allowed to carry forward the shortfall, on actual basis, the RPO compliance for FY 2011-12, FY 2012-13 and FY 2013-14 to the next 56

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financial year i.e. FY 2014-15. However, it is clarified that the RPO carried over to FY 2014-15 shall be in addition to the RPO for FY 2014-15. The Commission is in receipt of Memo No. 621 / HPGC / FIN/ Reg-200 dated 25.10.2013 from Haryana Power Generation Corporation Limited regarding Western Yamuna Canal and Kakroihydel power stations, and observes that given the fact that respective capacities of the five powerhouses is lower than 25 MW and the energy accounting of these powerhouses are kept separately, they are to be treated as renewable energy power projects in line with the provisions of the RE Regulations, 2010. Hence the Discoms / HPPC may, if not already done, take into account the actual energy available to them in FY 2011-12, FY 2012-13 and FY 2013-14 from these hydel powerhouses while calculating the total renewable energy available for meeting their RPO (non – solar). Issue C : whether amendment / modiﬁcation / deletion of sub – regulation (3) of Regulation 64 of the RE Regulation, 2010 to the extent that it should not be obligatory to the State Discoms to purchase power at the rate determined by the Commission, is required. The Commission has examined the above; the relevant regulation is reproduced below: “2. The following sub regulation (3) shall be inserted in continuation of regulation 64: In case the renewable energy generating company offers to sell energy generated by it from its renewable energy generating station located in Haryana to the distribution licensee at the rates determined by the Commission, the distribution licensee shall not refuse to purchase power from such generating company, without prior approval of the Commission”.

network and reduced transmission losses. This advantage becomes considerably enhanced when such RE is generated and consumed locally. Therefore the Discoms in Haryana should prefer to purchase RE generated in Haryana. This is also the spirit behind regulation 64(3) support of which has been sought by the Petitioner. In view of the above discussions the Commission answers the issue framed at ‘C’ in negative. However, it is clarified that the tariff determined by the Commission is the ceiling tariff. In case the Discoms / HPPC is able to procure renewable energy (solar and non – solar) at a rate lower than that determined by the Commission by way of reverse bidding or otherwise, they may do so. However, the Discoms / HPPC, may not evade their responsibilities of achieving the RPO specified in the RE Regulations, 2010 for the respective years on the plea that they are in the process of inviting bids or merely making a statement that renewable energy is available at a tariff lower than that determined by the Commission. In view of the above discussions the Commission is of the view that the amendments to the RE Regulations, 2010 sought by the Discoms / HPPC are not warranted at this stage. The Petitions are disposed of accordingly. This order is signed, dated and issued by the Haryana Electricity Regulatory Commission on 20th November, 2013.

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The Commission is of the view that it is always preferable to purchase renewable energy because of fact that such generation projects as per the statutes has to be encouraged, rather than to purchase REC wherein the amount paid for purchase of the same goes to the generator without even getting the benefit of power availability. Further because of its distributed nature, RE generation is considered advantageous in terms of reduced cost of transmission

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P O L I CY & REGUL A T I O N

Punjab State Electricity Regulatory Commission Sco No. 220-221, Sector 34-A, Chandigarh Smt.Romila Dubey, Chairperson - Shri Virinder Singh, Member - Shri Gurinder Jit Singh, Member

ndian Yarn Limited has filed this petition for carrying forward of compliance of Renewable Purchase Obligation(RPO), Solar & Non-Solar, under 1st proviso of Regulation 6(2) of the Punjab State Electricity Regulatory Commission (Renewable Purchase Obligation and its compliance) Regulations, 2011 (RPO Regulations, 2011). The petitioner has submitted that it started purchasing power through Open Access in November, 2012 and placed bid for purchase of Solar & Non-Solar Renewable Energy Certificates (RECs) in the Indian Energy Exchange on 28.03.2013, for fulfilling RPO for the year 2012-13. As a proof thereof, the petitioner has also attached a copy of the communication (E-mail) sent for the purpose. It has been further submitted that due to unknown reasons, the bid could not be registered. Accordingly, the petitioner has requested the Commission for exemption to purchase Solar & Non-Solar RECs for complying with the RPO for the year 2012-13 and allowing the same to be carried forward to the next year i.e. FY 2013-14 to avoid levy of penalty without any fault on its part. The Commission vide Order dated 14.06.2013 admitted the petition and made Punjab State Power Corporation Ltd. (PSPCL) and Punjab Energy Development Agency (PEDA) as respondents and while issuing Notice directed the respondents to file reply to the petition by 16.07.2013. PSPCL submitted reply vide CE/ARR & TR memo no. 5941/TR-5/581 dated 15.07.2013 and PEDA submitted its reply vide memo no. 2401-3 dated 16.07.2013. The arguments of the petitioner, PSPCL and PEDA were heard by the Commission on 23.07.2013. During the hearing on 23.07.2013, the petitioner requested the Commission to allow carry forward of the RPO compliance for FY 2012-13 to FY 2013-14 and that compliance of the same would be made by 31.12.2013. 58

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PSPCL in its reply dated 15.07.2013, submitted that under 1st proviso of Regulation 6(2) of the RPO Regulations, 2011, in case of genuine difficulty because of non-availability of RECs or otherwise, the obligated entity (petitioner) can approach the Commission for carrying forward of RPO compliance to the next year and that under 2nd proviso the Commission is empowered to allow carry forward of the RPO compliance to the next year in addition to the RPO for that year. PSPCL has further submitted that the Commission vide Order dated 28.03.2013 has allowed the obligated entities (other than PSPCL) to carry forward the shortfall in Solar RPO compliance for FY 2012-13 to the next year i.e. FY 2013-14, in addition to the RPO (Solar) for next year. PEDA in its reply dated 16.07.2013, while referring to the aforementioned Order of the Commission dated 28.03.2013 submitted that the same is applicable in the petitioner’s case in respect of Solar RPO. For compliance of Non-Solar RPO by the petitioner, referring to the relevant Regulation 6 of the RPO Regulations, 2011, PEDA submitted that the petitioner can be allowed to carry forward the compliance of RPO, either due to genuine difficulty due to non-availability of certificates or keeping in view the performance, citing the petitioner’s effort to purchase RECs on 28.03.2013. PEDA has further submitted that as per the above Regulations, the petitioner can also be directed to deposit the cost of RECs not purchased, in a separate account and direct the State Agency to procure the RECs on petitioner’s behalf. PEDA further submitted that Non-Solar RECs are trading at the minimum ﬂoor price of 1500 per REC for the last many months and around 20 lac RECs are available for sale against the buy bids varying from 50,000 to 75,000 only and this trend is likely to continue in future also. PEDA has also submitted that the petitioner can be directed to purchase Non-Solar RECs on the next bidding date in

case the Commission allows carry forward of the Non-Solar RPO to the next year i.e. FY 2013-14. The Commission notes that under the RPO Regulations, 2011, the obligated entities i.e. the Distribution Licensee(s), Open Access customers and Captive Power consumers / producers are required to comply with the RPO specified in the said Regulations. The Commission has specified the RPO (Solar & Non-Solar) for the years 2011-12 to 201415 in the ibid Regulations. The Commission also notes that if the obligated entity does not fulfil the renewable purchase obligation as provided in RPO Regulations, 2011, the Commission may direct the obligated entity to deposit into a separate fund, to be created and maintained by such obligated entity, such amount as the Commission may determine on the basis of the shortfall in units of renewable purchase obligation and the forbearance price of RECs decided by the Central Commission. The Commission further notes that if an obligated entity fails to comply with the prescribed RPO, either through purchase of renewable energy or RECs, it is liable for penalty under Section 142 of the Electricity Act, 2003 under Regulation 6 (2). However, in terms of the first proviso, in case of genuine difficulty because of non-availability of RECs or otherwise, the obligated entity can approach the Commission for carrying forward of RPO compliance to the next year and the second proviso enables the Commission to provide relief in such circumstances. Regulation 6, ‘Effect of default’, reads as hereunder: “If the obligated entity does not fulfil the renewable purchase obligation as provided in these Regulations during any year and also does not purchase the certificates, the Commission may direct the obligated entity to deposit into a separate fund, to be created and maintained by such obligated entity, such amount as the Commission may determine on the basis of the shortfall in units of renewable purchase obligation and the forbearance price

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decided by the Central Commission; Provided that the fund so created shall be utilized, as may be directed by the Commission, for purchase of the certificates; Provided further that the Commission may empower an officer of the State Agency to procure from the power exchange the required number of certificates to the extent of the shortfall in the fulfilment of the obligations, out of the amount in the fund; Provided also that the distribution licensee shall be in breach of its licence conditions if it fails to deposit the amount directed by the Commission within 15 days of the communication of the direction. Where any obligated entity fails to comply with the obligation to purchase the required percentage of electricity from renewable energy sources or the renewable energy certificates, it shall also be liable for penalty as may be decided by the Commission under section 142 of the Act; Provided that in case of genuine difficulty in complying with the renewable purchase obligation because of non-availability of certificates or otherwise, the obligated entity can approach the Commission for carrying forward of compliance requirement to the next year; Provided that on being so approached, the Commission may review the fulfillment of the renewable purchase obligation by the obligated entity, keeping in view its performance and allow the shortfall to be carried forward to the next year in addition to the renewable purchase obligation for that year. At the end of 3 years period, the Commission may, if deemed appropriate, review the fulfillment of renewable purchase obligation by the obligated entity and pass suitable order(s); Provided that where the Commission has consented to the carry forward of compliance requirement, the provision of clause (1) of the Regulation or the provision of section 142 of the Act shall not be invoked.” The Commission notes that RPO can be met either through purchase of renewable energy from respective sources or purchase of respective RECs from the Power Exchanges. As obligated entities other than the distribution licensee(s) would require only a small quantum of electricity from renewable energy source(s) for fulfilment

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of their RPO, although not brought out in the submissions, the Commission feels that it may not be feasible for the petitioner to arrange small quantum of electricity from renewable energy power projects for the purpose and would rather meet their RPO through purchase of RECs. The Commission has examined the request of the petitioner for allowing it to carry forward the compliance of Solar and Non-Solar RPO for the year 2012-13 to the next year (FY 2013-14). The Commission notes that the attempt of the petitioner to purchase RECs at Indian Energy Exchange, New Delhi on 28.03.2013 was belated as the same happened to be the last day of trading RECs for FY 2012-13. Also the petitioner appears to have not made any attempt to purchase RECs from the Power Exchange of India Ltd., Mumbai, the other Power Exchange operating in the country. The Commission is of the view that the petitioner should have endeavoured to act in-time to ensure purchase of required quantity of RECs to comply with the respective Solar and NonSolar RPO. The Commission further notes that in the past, on representations made by the Open Access customers, it has in its Orders dated 22.03.2012 and 28.03.2013 allowed the obligated entities other than PSPCL to carry forward the shortfall in the compliance of Solar RPO for the year FY 2011-12 to next year i.e. FY 2012-13 and for the year FY 2012-13 to next year i.e. FY 2013-14 respectively, in addition to the Solar RPO for the particular next year. The Commission also notes that vide its Order dated 04.05.2012 in petition no. 7 of 2012 filed by PSPCL, it allowed PSPCL to carry forward the shortfall in compliance of the RPO for FY 2011-12 to the next year i.e. FY 2012-13, in addition to the RPO specified for that year. In this regard, the Commission also notes that the Central Electricity Regulatory Commission vide its Order dated 11.02.2013 in petition no. 266/SM/2012, has extended the validity of RECs for one more year and the RECs issued on and after 01.11.2011 shall remain valid for a period of 730 days from the date of issuance, primarily to prevent the RECs from lapsing in view of sluggish market demand. The net effect of the CERC direction is that the RECs would now be available for trading for a longer period. It has been stated that CERC in its Order dated 19.12.2012 took cognizance of the lapsing of RECs arising out of the non-

redemption within the permissible timeline, apparently due to reluctance/apathy of the distribution licensees to purchase the RECs to meet their RPO. Accordingly, in exercise of the powers vested with the Commission under Regulation 6(2) and upholding the principle of equity and considering that the validity of RECs has been extended by CERC to 730 days, the Commission allows the petitioner to carry forward the Non-Solar RPO compliance for FY 2012-13 to the next year i.e. 201314, in addition to the RPO for the next year, either through purchase of electricity generated from renewable energy power projects or RECs, the extension for Solar RPO compliance having already been allowed in the Order dated 28.03.2013. However, the petitioner is directed to comply with the Non-Solar and Solar RPO for the year FY 2012-13, allowed herein above and in Order dated 28.03.2013 respectively to be carried forward to the next year i.e. FY 2013-14, by 31.12.2013 positively failing which further action as per the Regulations may be initiated. The petitioner is further directed to submit the RPO compliance report (Solar and Non-Solar) for FY 2012-13 and FY 201314 at the end of each quarter to PSPCL and PEDA in the first week of the month following each quarter. As regards PEDA’s suggestion for exercising the option by the Commission to direct the petitioner to deposit the amount (equivalent to the shortfall in RPO compliance at the forbearance price of the RECs) by creating a separate fund for purchasing the requisite quantum of RECs, as per provision in Regulation 6(1) of the RPO Regulations, 2011 wherein an official of the State Agency can be empowered by the Commission to purchase RECs on petitioner’s behalf, the Commission would look into the option at the appropriate time in case of non-compliance/ repeated default of the RPO Regulations, 2011 by the petitioner/obligated entities. The Commission takes this opportunity to direct the Distribution Licensee PSPCL, entrusted with ensuring the RPO compliance by the obligated entities being its consumers and PEDA, the State Agency, mandated to monitor the specified RPO compliance by the obligated entities in the State to strictly implement the provisions of the RPO Regulations and get the RPO compliance by the obligated entities fully effected.

EQ February 2014

P O L I CY & REGUL A T I O N

MERC Allows Tata Power-D to fulfill Solar RPO by end of Control Period i.e. FY 2015-16 he Tata Power Company Ltd-

Condone any inadvertent omissions/

2014. Therefore TPC-D approached various

Distribution, (TPC-D) has submitted

errors/shortcomings and permit Tata Power

solar developers for short term solar RPO

a Petition on 23 October, 2013 under

to add /change/modify /alter this filling and

requirement. But none of them came forward

MERC (Renewable Purchase Obligation,

make further submissions as may be required

for short term supply. Solar REC traded

its compliance and Implementation of

at a future date.

during FY 2012-13 were also very low.

REC Framework) Regulations, 2010 for Cumulative fulfillment of Solar RPO target by FY 2015-16. TPC-D submitted that, vide Suo-MotuOrder dated 5 December, 2012 in Case No. 99 of 2012 the Commission had directed TPC-D to fulfill the RPO targets for the years FY 2010-11, FY2011-12 and FY 2012-13 cumulatively by the end of the FY 2012-13.

TPC-D submitted that, there will be surplus of 0.65 MUs of non-Solar RPO till FY 2012-13. However, there is total shortfall of 35.35 MUs against cumulative solar RPO of 8.88 MUs.

Reasons for not meeting Solar RPO Target; a) Tata Power had tied up solar

Following were the prayers of TPC-D before MERC Take into consideration the efforts taken

generating capacity at Mulshi, Pune for 3 MW and at Carnac, Roof top solar of 60kWp. But due to sudden rise in sales in FY 2012 tied up capacity became insufficient.

Against total bid of 3850 RECs by TPC-D, it received only 306 against total 14646 REC traded in the market during FY 2012-13. (As per NLDC monthly report). As against 35 MUs of RPO obligation for TPC-D, only approximately 14 MUs were available in the REC market.

In view of the above Petitioner submitted following Action Plan to meet RPO target by FY 2015-16; a. TPC-D has cumulative shortage of

by Tata Power-D in procuring the RE for FY

b) There is inherent shortage in solar

35.35 MUs upto FY 2013. As per MYT order

2011-12 & FY 2012-13 and the inherent

generation in the country. As against

in Case No. 179 of 2011 for TPC-D, it has

shortage of solar generating capacity in

requirement of around 3500 MW capacity

obligation to purchase 120.01 MUs for FY

the country, allow Tata Power-D to fulfill

to meet solar RPOs of all States, there is

2013-14 to FY2015-16. Hence TPC-D has

Solar RPO by end of Control Period i.e. FY

only about 1440 MW of installed capacity

total Solar Obligations of 155.37 MUs.

2015-16.

i.e. only 41 % of total requirement.

b. Considering Industry standard of

Condone the levy of Regulatory Charges

c) TPC-D made long term contract of

1.5 MU/ MW/ year output for Solar PV

for the quantum of shortfall in Solar RPO

25 MW Solar power at Dinganchi,Satara

projects the annual requirement work out to

target till 31st March 2016.

which is going to be commissioned in Year

be 34.53 MW approximately for FY 2013-

EQ February 2014

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14 to FY2015-16. Therefore to meet this

done by TPC-D, cumulatively at the end of

in RPO targets for non-solar (including mini/

requirement, TPC-D has made long-term

FY 2012-13, was 623.17 MU’s including all

micro hydro targets) for FY 2010-11 and FY

contract with 25 MW, Solar Power Station

shortfalls of Solar and Non-solar RPO.

2011-12 and RPO targets for FY 2012-13

of Tata Power at Dhiganchi in SataraDistrict which is expected to commission in FY 2014.

3.5 Status of Dhiganchi Solar Project till October, 2013;

cumulatively before 31 March, 2013, the

Commission’s Ruling:

and Compliance of RPO targets for FY 2012-

considering the relevant material placed on

13 as specified under MERC (Renewable

record, the Commission is of the view that

Purchase Obligation, its compliance and

with the proposed addition of Solar power

Implementation of REC Framework)

from 25 MW Dhiganchi Solar power plant,

Regulations, 2010.

Petitioner has given adequate justification

finalised and equipment has been mobilised

to demonstrate that it has undertaken the

to the site.

efforts in procuring Solar power in order

After commissioning, the plant is expected to produce 37.5 MUs annually.#

to meet its RPO targets and in spite of the efforts undertaken by it, it faced a genuine difficulty in meeting its solar RPO target. Further, the Commission opines that any

3.6 Expected Solar Energy available

constraint regarding availability of Solar

during FY 2013-14 to FY 2015-16; Total

power or Solar RECs for meeting Solar RPO

Solar generation available to TPC-D during

targets in future could be mitigated by tying

FY 2013-14 to FY 2015-16

up adequate quantum and sources for Solar power in a timely manner through advance

3.8 Petitioner has submitted that, considering above scenario there is still shortfall of 51.51 MUs till FY 2015-16. Hence, TPC-D has considered following points for meeting shortfall; a) Considering the Solar Generation capacity addition as per MNRE projection

actions and/or timely purchase of Solar RECs from the market. As per Regulation 18.1 of MERC (Renewable Purchase Obligation, its compliance and Implementation of REC Commission has powers to relax or waive any of the provision of the said Regulations

or special order, for reasons to be recorded in writing, and after giving an opportunity of

that, the shortfall in RPO compliance in FY 2010-11 was 57.97 MU’s which was including all types of Renewable sources, whereas in FY 2011-12, the shortfall of 11.19 MU’s was only in Solar Obligations. Petitioner further submitted that, vide Suo-Motu Order dated 5 December, 2012 in Case No. 99 of 2012 the Commission had directed TPC-D to fulfil the RPO targets for the years FY 2010-11, FY 2011-12 and FY 2012-13 cumulatively by the end of the FY 2012-13; accordingly the total RPO compliance required to be

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its compliance and Implementation of REC Framework) Regulations, 2010, for TPC-D for FY 2010-11, FY 2011-12 and FY 201213 and directs TPC-D to fulfil the Solar RPO target on a cumulative basis by FY 2015-16. However, since TPC-D’s license is expiring on 15 August, 2014 this relaxation will continue subject to grant of licence to TPC-D for distribution of electricity. With the above, the Petition filed by TPC-D in Case No. 159 of 2013 stands disposed of.

nnn

of said Regulations is as under:

available.

During the hearing, Petitioner submitted

MERC (Renewable Purchase Obligation,

parties likely to be affected. Relevant extract

“18.1 The Commission may by general

generation as per its strategy plan.

as stipulated under Regulation 7.1 of the

after giving an opportunity of being heard to

may be sold through REC, which may be

add additional generating capacity in Solar

In this Order, the Commission has relaxed/waived the Solar RPO targets

Framework) Regulations, 2010, the

of about 3000 MW in country, certain %

b) Petitioner submitted that it may

in the separate proceeding for Verification

Having heard the Petitioner and after

a. Vendors for plant equipment have been

b. PPA has been signed with TPC-D.

same shall be reviewed by the Commission

hearing to the parties likely to be affected may relax or may waive any of the provisions of these Regulations on its own motion or on an application made before it by an interested person.” Thus, the Commission hereby relaxes/ waives the Solar RPO targets as stipulated under Regulation 7.1 of the MERC (Renewable Purchase Obligation, its compliance and Implementation of REC Framework) Regulations, 2010 , for TPC-D for FY 2010-11,FY 2011-12 and FY 201213 and directs TPC-D to fulfil the Solar RPO target on a cumulative basis by FY 201516. Regarding the shortfall/surplus, if any,

EQ February 2014

P O L I CY & REGUL A T I O N

CERC : Benchmark Capital Cost Norm For Solar PV And Solar Thermal Technologies, For FY 2014-15

he proposed benchmark Capital Cost norm for Solar PV and Solar Thermal project, for FY 2014-15 are discussed below: A. Solar PV Power Projects: Capital cost of Solar PV projects

Figure 1: Spot Photovoltaic Module Price Trends in Europe

1. Module Price 1.1 PV Insights in its report dated 4/9/2013 on solar module spot price reveals that silicon module prices are being traded in the range of 0.55 US$ to 0.99 US$ with an average of around 0.709 US$. The Table 1 below shows solar module spot prices in the month of August 2013.

Source: Mercom’s Solar Market Intelligence Report (September, 2013)

polysilicon makers have been raising Item High USD Low USD Average USD / their selling / Watt / Watt Watt prices since the Silicon Solar Module 0.99 0.55 0.709 announcement Thin Film Solar 0.94 0.49 0.606 of the Chinese Module polysilicon Source: PV insight, Report dated 4/9/2013 antidumping case. Under the new 1.4 The Table 2 below shows the China policy announced by Government of China, /Taiwan PV module average spot prices any imported polysilicon needs to provide prevailed during the month of August, 2013 a certificate of manufacturing origin and and changes in prices in percentage term without the certificate the imported polysilicon with respect to previous month: will be imposed the highest antidumping rate at 57%. This new Table 2: China/Taiwan PV-Spot Price in US $ (August 2013) policy introduced in Particulars Average % Change August, 2013 against the Poly Price (per kg) 17.43 5.89% backdrop of EU launched Multi-Si wafer ( 156mm) 0.86 -1.15% anti-dumping and antiCell Price (Per Watt) 0.39 -2.50% subsidy investigations Module Price (Per Watt) 0.69 -1.43% against China’s PV products in 2012. Europe Thin Film Price (Per Watt) 0.62 No Change is the most important Source: Mercom Capital Group, Digitimes, PVinsights, August 2013 market for China’s solar products, comprising 90 The module price shown in the above percent of total shipments. After several Table 2 reveals that silicon module prices rounds of negotiations, the EU agreed to are being traded in the range of 0.69 US$/ stop the investigations and insisted China to sign a “price undertaking” agreement. Watt. China, in turn, committed to a minimum price 1.5 The reason for increase in the of 0.56 euro/ Watt and to limit the number module price compared to last year, as per of exports to the EU. Figure 1 below shows Mercom’s Solar Market Intelligence Report price trend in the spot market of Europe till (September, 2013), could be that the Chinese September, 2013. Table 1: Solar Module spot price

EQ February 2014

Above Figure 1 reveals that as compared to Chinese Module makers, NonChina Module prices fallen in Europe since January, 2013 as the demand impacted by European market shrinkage. Non-China module manufacturers could supply cells to EU customers at cheap price, without adding high anti-dumping tariffs cost. 1.6 However, based on the interaction with the various EPC contractors it is found that the prevailing module prices offered by the Chinese manufacturers in India are around 0.57/US$. Since we are determining benchmark capital cost for the FY 201415, any future expected reduction cannot be ignored. Therefore, the Commission has decided the average module cost of 0.54 US$/Wp for determination of benchmark capital cost of Solar PV for FY 2014-15. Considering the Exchange Rate at ` 60.00/ US$ (average of daily exchange rate data available of RBI website of past six months), the Commission propose to consider the module cost at ` 324 Lakh/MW. In addition to the above proposed module cost, the Commission also proposes to consider an additional 0.5 % of the modules cost (i.e. 5 kW of module per MW) every year after 4th year to 25th year of operation on notional basis considering module degradation as allowed in the past based on the study carried out by the Commission. Accordingly, the Commission proposes to consider the total module cost at ` 334 Lakh/MW.

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2. Non-Module Cost Component: The non-module cost components comprise cost towards land, civil & general works, ground mounting structures, power conditioning unit, cabling & transformer/ switchgears and preliminary/pre-operating expenses & financing costs. Each component of above referred non-module cost of Solar PV based power plant is estimated as under for the determination of benchmark capital cost of Solar PV projects for FY2014-15.

2.1 Land Cost The land requirement for Solar PV based power project depends upon the technology employed i.e. Crystalline or Thin film, conversion efficiency and solar radiation incident in respective area. The Commission, while determining the benchmark capital cost for Solar PV projects for the year 2013-14, had considered land requirement of 5 Acre/ MW for crystalline PV project and its cost was considered as ` 16.8 Lakh / MW. The Commission also considered that the land acquired for setting up solar power projects is mostly arid/barren or of no commercial use. Therefore, the Commission proposes to escalate the normative land cost of FY201314 at 5% and proposes the land cost at ` 18 Lakh/ MW for the determination of benchmark capital cost of Solar PV projects for FY2014-15.

2.2 Power Conditioning Unit (Inverter) Power conditioning equipment is an important component of the balance-ofsystem. Power conditioners process the DC power produced by a photovoltaic system to AC power and match the same with utilityâ&#x20AC;&#x2122;s power. Based on the interaction with various solar PV project EPC service provider it is found that currently in the country various prominent Inverter suppliers are supplying inverters for MW scale projects in the range of ` 40 Lakhs to ` 70 Lakhs /MW depending on the type and brand of the inverter. Some of the inverter manufacturers such as AEG, ABB and Schneider are already manufacturing solar inverters in India. The Commission proposes to consider normative inverter cost at ` 50 Lakhs/MW.

2.3 Civil and General

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Works: The cost associated with civil works includes testing of soil, preparation of soil/ ground with all necessary works like earth moving, digging holes for the foundations/ pilings and leveling, fencing of the land, development of approach road, cable trenches, water supply arrangement in solar farm, control room etc. The General works include security of solar farm, setting up of power back-up generator; yard lighting, Earthling Kits, etc. Based on the interaction with the project developers, the Commission proposes to consider the cost for Civil and General work as ` 40.00 lakh/MW, for determination of benchmark capital cost of Solar PV projects for FY2014-15.

2.4 Ground Mounting Structures: This expenditure includes cost associated with manufacturing, delivery, installation and calibration of hot galvanized steel structures including all necessary material, works and installation on prepared foundations/pilings. Based on the interaction with the project developers, the Commission proposes to consider ` 50.00 Lakh/MW towards the cost for Ground Mounting Structures for benchmark capital cost of Solar PV projects for FY2014-15.

2.5 Cables and Transformers This expenditure includes EPC cost towards DC caballing between Solar PV panels & Inverters including junction boxes, AC cabling between Inverter & sub-station, Earthling arrangements and Transformer.

The transformer cost includes the EPC cost of a step up outdoor type transformer, breaker, Current Transformers, Potential Transformers, Isolators, LAs, protection relay and TOD meter. The Commission, based on the interaction with the various project developers proposes to consider ` 60 Lakhs/MW as expenditure towards cables and transformers for solar PV projects for the determination of benchmark capital cost of Solar PV projects for FY2014-15.

2.6 Preliminary/Preoperating expenses and Financing Costs The preliminary/pre-operating expenses include transportation of equipment, storage of equipment at site, insurance, contingency, taxes and duties, IDC and finance charges etc. Detailed breakup of Preliminary and Pre-operative expenses and financing cost, lump sum in percentage of total capital cost is proposed as under: i. Insurance Cost: 0.5% ii. Contingency: 0.5% iii. Interest during Construction (IDC): 5% iv. Financing cost: 1% v. Project management cost: 1% vi. Pre-operative Cost: 1.0% Preliminary/Pre-operating expenses and Financing Cost contribute to around 10% of total capital cost on average basis. Accordingly, Rs. 60.00 Lakh/MW is proposed to be considered as preliminary / Pre-operating expenses and Financing cost. The Table 3 below presents the breakup of benchmark capital cost norm for Solar PV projects for the FY 2014-15:

Table 3: Breakup for Capital cost projection

Sr. Particulars No.

Capital Cost Norm for SolarPV % of project (Rs. Lakh/MW) totalcost

PV Modules

334.00

55%

Land Cost

018.00

Civil and General Works

050.00

Mounting Structures

040.00

Power Conditioning Unit

050.00

Evacuation Cost up to Interconnection Point(Cables and Transformers)

060.00

10%

Preliminary and PreOperative Expenses including IDC and contingency

060.00

10%

Total Capital Cost

612.00

100%

EQ February 2014

1. Parabolic Trough 2. Central Receiver Tower 3. Dish Engine 4. Linear Fresnel As per NREL Report the CSP projects of both parabolic trough and tower technology, as of 2011, have been deployed mostly in Spain and U.S. Some projects are also operational and under development in the Middle East and North Africa region (MENA). CSP projects that use linear Fresnel reďŹ&#x201A;ector and dish/

Rs/kWh

Rs/kWh Levellised

Int. on working capital

RoE

Total COG

6.99 6.99

Rs/kWh

Int. on term loan

Discount Factor Fixed Cost Levellised Tariff

Rs/kWh

Depreciation

auxiliary consumption and O&M Expenses, for solar thermal projects have been discussed. Solar Thermal technologies use systems of mirrored concentrators to focus direct beam solar radiation to receivers that convert the energy to high temperatures for power generation. There are four commercially available CSP technologies:

0.20

2.21

0.21

2.21

8.43

0.19

2.34

6.99

Rs/Unit

2.86

3.13

1.50

1 116.26

2.14

1.78

0.902 116.26

8.20

0.78

0.74

1.18

0.814 116.26

7.96

2.21

0.20

2.59

2.14

0.83

0.735 116.26

7.74

2.21

0.20

2.32

2.14

0.87

5.51

Levellised

Karnataka Phase II

Unit

7.67

Rs/kWh

Punjab

O&M expn

6.45

Per Unit Cost of Generation

6.49

Rajasthan

0.663 116.26

7.51

2.21

0.19

2.04

2.14

0.92

5 15.36 35.68 34.00 3.22 36.72 124.99

0.599 116.26

7.29

2.21

0.19

1.77

2.14

0.98

6 16.24 35.68 29.47 3.17 36.72 121.28

0.540 116.26

7.07

2.21

0.19

1.50

2.14

1.03

7 17.17 35.68 24.94 3.12 36.72 117.62

0.488 116.26

6.85

2.21

0.18

1.23

2.14

1.09

8 18.15 35.68 20.40 3.07 36.72 114.02

0.440 116.26

6.64

2.21

0.18

0.95

2.14

1.15

9 19.19 35.68 15.87 3.02 36.72 110.48

0.397 116.26

6.43

2.21

0.18

0.68

2.14

1.22

10 20.28 35.68 11.33 2.98 36.72 107.00

0.358 116.26

6.67

2.65

0.19

0.41

2.14

1.29

11 21.44 35.68 6.80 3.10 44.06 111.09

0.323 116.26

6.47

2.65

0.18

0.14

2.14

1.36

12 22.67 35.68 2.27 3.07 44.06 107.75

0.292 116.26

4.80

2.65

0.15

0.00

0.57

1.44

13 23.97 9.43 0.00 2.50 44.06 79.96

0.263 116.26

4.89

2.65

0.15

0.00

0.57

1.52

14 25.34 9.43 0.00 2.57 44.06 81.41

0.238 116.26

4.98

2.65

0.16

0.00

0.57

1.61

15 26.79 9.43 0.00 2.65 44.06 82.94

0.215 116.26

5.08

2.65

0.16

0.00

0.57

1.70

16 28.32 9.43 0.00 2.73 44.06 84.55

0.194 116.26

5.18

2.65

0.17

0.00

0.57

1.80

17 29.94 9.43 0.00 2.82 44.06 86.26

0.175 116.26

5.29

2.65

0.17

0.00

0.57

1.90

18 31.65 9.43 0.00 2.91 44.06 88.06

0.158 116.26

5.41

2.65

0.18

0.00

0.57

2.01

19 33.46 9.43 0.00 3.01 44.06 89.97

0.142 116.26

5.53

2.65

0.19

0.00

0.57

2.13

20 35.38 9.43 0.00 3.11 44.06 91.99

0.128 116.26

5.65

2.65

0.19

0.00

0.57

2.25

21 37.40 9.43 0.00 3.22 44.06 94.12

0.116 116.26

5.79

2.65

0.20

0.00

0.57

2.38

22 39.54 9.43 0.00 3.34 44.06 96.38

0.105 116.26

5.93

2.65

0.21

0.00

0.57

2.51

23 41.80 9.43 0.00 3.46 44.06 98.76

0.094 116.26

6.09

2.65

0.22

0.00

0.57

2.66

24 44.19 9.43 0.00 3.59 44.06 101.28

0.085 116.26

6.25

2.65

0.22

0.00

0.57

2.81

25 46.72 9.43 0.00 3.73 44.06 103.94

Stirling Energy Systems are very few and still under developmental stage. Parabolic Trough technology has achieved close to full commercial status while cost data for the power Tower, Fresnel and Dish Stirling technologies are in the process of being

Levellised COG

Andhra Pradesh

6 7.90

4 14.53 35.68 38.54 3.28 36.72 128.75

5 5.97with 5% escalation for first 10years

3 13.74 35.68 43.07 3.34 36.72 132.55

Tamil Nadu

2 13.00 35.68 47.61 3.40 36.72 136.41

1 12.30 35.68 52.14 3.47 36.72 140.30

Madhya Pradesh

Unit Year---> Rs Lakh Rs Lakh Rs Lakh Rs Lakh Rs Lakh Rs Lakh

Lowest bid

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 1.66 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 1.664 1.664 1.664 1.664 1.664 1.664 1.664 1.664 1.664 1.664 1.664 1.664 1.664 1.664 1.664 1.664 1.664 1.664 1.664 1.664 1.664

Table 4: Lowest Bid prices in various solar programme

Fixed Cost O&M Expenses Depreciation Interest on term loan Interest on working Capital Return on Equity Total Fixed Cost

7.94

4 1 1.66 0.00000 1.664

7.49

Karnataka Phase I

3 1 1.66 0.00000 1.664

Batch II, Phase I

2 1 1.66 0.00000 1.664

1 1 1.664 0.00000 1.664

Sr. Solar Programme No.

Year--->

B. DETERMINATION OF BENCHMARK CAPITAL COST FOR TYPICAL CSP (SOLAR THERMAL) PROJECTS FOR THE PERIOD 2014 â&#x20AC;&#x201C; 15 SOLAR THERMAL OR CONCENTRATED SOLAR THERMAL (CST) TECHNOLOGIES Under this section, technology specific parameters such as capital cost norm, capacity utilization factor,

Unit MW MU MU

Considering the above facts into consideration, the Commission proposes to consider total cost of Solar Photo voltaic power projects for the FY2014-15 as ` 612.00 Lakh/MW as benchmark project cost of Solar PV projects.

Units Generation Installed Capacity Gross Generation Auxiliary Consumption Net Generation

The CERC has determined Solar PV Tariff for the Year 2013-14 at ` 8.75 (without AD benefit) and ` 7.87 (with AD benefit). The Solar photovoltaic projects are allocated, through competitive bidding, under JNNSM and as well as under the State specific Solar Policies at the tariff rate quite lower than the above referred CERC determined tariff . The lowest bids quoted under different solar programme are shown in Table 4 as under:

Determination of Tariff for Solar PV

3. Capital Cost of Solar Photovoltaic projects established. Therefore, available cost data of Parabolic Trough technology is considered for the determination of benchmark capital cost norm for solar thermal projects for the year 2012-13.

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Annexure 5A

Assumpion for Solar PV Power Projects Parameters S. No. 1

Assumption

Sub-Head

Head

Sub-Head (2)

Unit

Asumptions

Power Generation Capacity Installed Power Generation Capacity Auxiliary Consumption Capacity Utilization Factor Useful Life

MW % % Years

1 0.00% 19.0% 25

Power Plant Cost

Rs Lacs/MW

Tariff Period

Years

Debt

70%

Equity

30%

Total Debt Amount

Rs Lacs

428.40

Total Equity Amout

Rs Lacs

183.60

Loan Amount Moratorium Period Repayment Period(incld Moratorium) Interest Rate

Rs Lacs years years %

428.40 0 12 12.70%

Equity amount Return on Equity for first 10 years RoE Period Return on Equity 11th year onwards Weighted average of ROE

Rs Lacs % p.a Year % p.a

183.60 20.00% 10 24.00% 22.40%

2 Project Cost Capital Cost/MW

612

3 Financial Assumptions 25

Debt: Equity

Debt Component

Equity Component

Discount Rate 4

10.81%

Financial Assumptions Fiscal Assumptions Income Tax MAT Rate (for first 10 years) 80 IA benefits

% % Yes/No

Depreciation Rate for first 12 years Depreciation Rate 13th year onwards

% %

32.445% 20.000% Yes

Depreciation

Years for 5.83% rate 5 Working Capital For Fixed Charges O&M Charges Maintenance Spare (% of O&M exepenses) Receivables for Debtors For Variable Charges Interest On Working Capital

5.83% 1.54% 12

Months % Months %

1 15% 2 13.20%

6 Operation & Maintenance O&M Expenses (2014-15)

Rs. Lacs

12.30

O & M Expenses Escalation O&M Expenses (2013-14)

% Rs. Lacs

5.72% 11.63

122

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EQ February 2014

P O L I CY & REGUL A T I O N

Madhya Pradesh : In The Matter Of Fulfillment Of Solar RPO By Obligated Entities For FY 2011 - 12 & FY 2012 - 13 And Punishment For Non - Fulfillment Of The Same.

RDER (Date of hearing : 17th September, 201 3 ) (Date of order : 20th November, 201 3)

M/s M and B Switchgears Limited , Petitioner Survey No. 211/1, Opp. Sector C And Metalman Industrial Area, Sanwer Road, Indore - 452 015. M.P.Power Management Co. Ltd. Respondent No.1 , M.P. Madhya Kshetra Vidyut Vitaran Co. Ltd.,Bhopal - Respondent No. 2 M.P. Poorv Kshetra Vidyut Vitaran Co. Ltd., Jabalpur - Respondent No. 3 M.P. Pashchim Kshetra Vidyut Vitaran Co. Ltd., Indore - Respond ent No. 4 All Open Access Customers in the State of MP - Respondent No. 5 All Captive Power Consumers in the State of MP - Respondent No. 6 Shri Anurag Mundra, Jt. M.D. and Shri Ashu Gupta, V.P.( Corporate) appeared on behalf of the p etitioner . Shri N.K.Sharma, DGM,MPPCL appeared on behalf of the Respondent No. 1 to 4. 2. The petitioner, M/s M&B Switchgears Limited has filed this petition in the matter of fulfilment of solar RPO by obligated entities for FY 2011 - 12 & FY 2012 - 13 and punishment for non - fulfilment of the same. 3.

The petitioner has stated that:

(a) M/s M& B Switchgears Limited is a company engaged in generation of electricity through non - conventional source of energy (solar power) under REC mechanism. The company is constructing solar power plants for self and others under REC mechanism and also operating and maintaining its existing units. (b) The Commission had specified Renewable Purchase Obligations (RPO) for 66

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solar power at 0.40 % and 0.60 % for the FY 2011 - 12 and FY 2012 - 13 respectively. The Renewable Energy Certificates issued under the CERC Regulations, 2010 are valid instruments for the discharge of the mandatory obligations set out in these Regulations for the obligated entities to purchase electricity from renewable energy sources. (c) With the non - participation in the procurement of these certificate by the obligated entities, the RE producers are suffering major financial losses. Hence, this petition. 4. In its petition, the petitioner has prayed the Commission for the following: (i) Since the obligated entities have failed to fulfill their solar RPOâ&#x20AC;&#x2122;s as provided in the Regulations for the FY 2011 - 12 & 2012 - 13 they should be asked to fulfill their RPO by buying solar RECâ&#x20AC;&#x2122;s from the power exchange within a period of 3 months. ii) The Commission should ensure that the state agency MPUVN/MPNRED (Madhya Pradesh New & Renewable energy Department) shall submit quarterly status to the commission in respect of compliance of renewable purchase obligation by the obligated entities and may suggest appropriate action to the Commission if required for compliance of the renewable purchase obligation. iii) The Commission shall ask the obligated entities to confirm with sufficient proof thereof on the action taken to fulfil their RPO obligation in the form of : a. Have they opened the REC Trading Account ?

b. Have they participated in REC Trading ? c. Details of the bidding performed by them ? iv) The Commission should ensure that each obligated entity shall indicate, with sufficient proof thereof, the estimated quantum of purchase from renewable energy sources for the ensuing year also. v) Since the entities have failed to fulfil the renewable purchase obligation as provided in these Regulations during FY 2011 - 12 & FY 2012 - 13 and also do not purchase the certificates, the Commission is requested to instruct the state agency MPUVN/MPNRED to open an account and direct the obligated entity to deposit into the same, such amount as the Commission may determine on the basis of the shortfall in units of RPO and the forbearance price decided by the Central Commission for the purchase of the certificates. vi) The Commission may empower an officer of the State Agency MPUVN/ MPNRED to procure from the power exchange the required number of certificates to the extent of the shortfall in the fulfilment of the obligations, out of the amount in the fund. vii) If the obligated entities fail to deposit the amount directed by the Commission within 15 days of the communication of such direction, the obligated entities shall be in breach of their licence conditions . 5 . The matter was heard on 17.09.2013. Respondents made written submissions. By order dated 18.09.2013, the Commission had directed the petitioner to file written submissions within 7 days giving details of

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energy generated from solar plants commissioned under REC mechanism in Madhya Pradesh. In response, the petitioner submitted the details of generation up to August, 2013along with expected generation from September, 2013 to March, 2014. The Commission enquired from the respondent no.1, which is also representing respondent nos. 2 to 4 whether any of the power projects enlisted by the petitioner had expressed any interest in signing PPAs with the respondent no. 1 at any stage and whether any PPAs were , indeed , signed with any of them. The Commission also enquired whether any of these projects had competed in any competitive bidding for solar power. 6. The respondent no. 1 has submitted the reply on 13.11.2013. In its submission, respondent no.1 mentioned that all the 51 solar power projects as per given list had opted for third party sale/captive consumption under REC mechanism and none of the solar power projects had expressed any interest in signing PPAs with the respondent no. 1 at any stage. Also, none of the project proponent had participated in competitive bidding for solar power undertaken by respondent no.1. 7 . From the facts presented before the Commission it is clear that the petitioner and the other parties adverted to it earlier in this order have never had any intention of selling power to state utilities despite being located within the state. In these circumstances, the utilities are being deprived of solar power procurement which would go towards fulfil ling their obligations under the RPO regime. While the Regulations in vogue do seek to incentivise renewable energy generation via the REC mechanism, this scheme of incentivisation cannot be allowed to be perverted to the extent that the obligated entities are left with no alternative but to purchase RECs in order to fulfil their RPOs. 8. Notwithstanding the aforesaid, the Commission is constrained to express serious concern on the lack of effort on the part of the utilities in fulfilling their respective RPOs. More than four months of the current financial year still remain and the respondents are directed to pursue renewable energy procurement to the maximum so that the shortfall against the RPO is minimised. Continuous failure on the part of utilities in this regard cannot be allowed to go unpunished . 9. In the above stated view of the matter, the Commission is not inclined to issue any specific directions against the prayer of the petitioner at this stage. If the Commission deems it appropriate, suitable directions shall be issued in due course taking the then current facts into account. 10 . With these directions, this petition is disposed of.

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P O L I CY & REGUL A T I O N

Suo-Moto Proceedings Initiated By The Uttarakhand ERC For Non-Compliance By UPCL Of RPO

he Commission had issued an Order dated December 19, 2012 wherein, UPCL was directed to carry forward the unmet RPO for FY 2011-12 for both solar as well non-solar sources to 2012-13 which were to be met alongwith the RPO for FY 2012-13. UPCL vide its representation dated March 28, 2013 submitted that due to less development of RE generators in the State, power to be procured from these sources during FY 2012-13 would be less than the targets fixed by the Commission. UPCL again vide its letter dated May 03, 2013 submitted that due to its poor financial condition it was not in a position to buy RECs. Further, UPCL submitted the details of RPO for FY 2012-13 including carry forward RPO of FY 2011-12 and requested the Commission to reduce the RPO of UPCL to the level of actual obligation met from non-solar & solar sources or to allow it carry forward of unmet RPO of FY 2012-13 to ensuing year. The Commission initiated suo-moto proceedings and issued an Order dated September 11, 2013 vide which UPCL was directed to procure RECs for unmet RPO of 59.12 MUs of non-solar sources for FY 2011-12 within 2 months, i.e. by November 15, 2013 failing which UPCL would be liable for appropriate action u/s 142 of Electricity Act, 2003. The financial implication of the same was estimated to be around Rs 8.87 Crore which was to be met by UPCL out of the surplus of Rs 13.94 Crore allowed to it over and above its ARR for FY 2013-14 in the Tariff Order dated May 06, 2013. In the Order dated September 11, 2013, UPCL was also allowed to carry forward the unmet RPO of FY 2012-13 for both solar as well as non-solar sources to FY 2013-14 which was to be met with its obligation for FY 201368

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14 by March 31, 2014 failure of which may attract action against it under Section 142 of the Electricity Act, 2003.

Commission’s views and decision The Commission vide its Order dated September 11, 2013 had issued the following directions to UPCL: a.

To procure RECs for unmet RPO of 59.12 MUs of non-solar sources for FY 2011-12 within 2 months, i.e. by November 15, 2013.

To carry forward the unmet RPO of FY 2012-13 for both solar as well as non-solar sources to FY 2013-14 which was to be met with its obligation for FY 2013-14 by March 31, 2014.

To show-cause within 15 days of the date of the Order as to why penalty may not be imposed upon it under Section 142 of the Electricity Act, 2003 for its default in complying with the RE Regulations, 2010, RPO Regulations and also for its failure in submitting the information in the manner and within the time frame specified in the Regulations and formats prescribed in the Procedure to the State Agency.

The Commission observes that UPCL has been time and again making repeated noncompliance of the directions issued to it under the Act & Regulations inspite of the fact that numerous opportunities has been provided to it to mend its affairs. The Commission vide its Order dated December 19, 2012 had allowed UPCL the carry forward of the unmet RPO of FY 2011-12 to FY 2012-13 which was to be met alongwith the RPO for FY 2012-13 by March 31, 2013.

UPCL vide its letter dated March 28, 2013 again requested the Commission to review the RPO targets specified in RE Regulations, 2010 on the grounds of nondevelopment of renewable energy resources in the State and weak financial position of UPCL and allow it the carry forward of unmet RPO of FY 2012-13 to the ensuing year.

Infact the Commission in its Order dated September 11, 2013 had held as under: “…How ever, the Commission would like to mention again that financial conditions of the Company can in no way be the ground for not meeting the obligations cast upon it under the Act and Regulations. The Commission in its Order dated 19.12.2012 had held that any financial implication of purchase of RE certificate and RE energy, if prudently incurred, would be allowed as pass through in the ARR, despite this UPCL still did not comply with the Regulations/Orders of the Commission.” Further, the Commission in its Order dated September 11, 2013 gave another opportunity to UPCL to procure the RECs equivalent to 59.12 MUs of unmet nonsolar RPO of FY 2011-12 by November 15, 2013. UPCL instead of complying with the directions preferred to make a belated request for extension of time for procurement of RECs on grounds of poor financial health which had already been held untenable by the Commission. In this regard, the Commission, had in its Order dated September 11, 2013 had already held that the cost of purchasing the RECs for meeting the RPO shortfall for FY 2011-12 could be met by UPCL out of the surplus of Rs. 13.94 Crore allowed to it over

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and above its ARR in the Tariff Order dated May 06, 2013 for FY 2013-14. Further, the Commission in its Order dated December 19, 2012 and September 11, 2013 had held that any financial implication on purchase of RE certificate and RE energy, if prudently incurred, would be allowed as pass through in the ARR. However, despite this UPCL still did not comply with the Regulations/Orders of the Commission. Now as the position emerges, the respondent Company did neither comply with the order dated September 11, 2013 for procurement of RECs nor sought a review or filed an appeal. The representative of the respondent Company during hearing agreed that this is an act of non-compliance. The Electricity Act, 2003, as per provision in Section 86(1)(e), assigns the Commission a function of promoting renewable sources of energy as also of prescribing a certain percentage of total consumption to be procured from such sources. In the instant case, there have been repeated failures of respondent Company to comply with the directions of the Commission. In the last instance failure to comply, as informed by the Company, was for reasons which were already held untenable by the Commission. The Commission, therefore, holds that non-compliance is wilful contravention of the directions of the Commission. Besides, it also obstructs discharge of functions of promoting renewable sources of energy assigned to this Commission by the Electricity Act, 2003. Now therefore, the Commission decides to impose a penalty of Rs. 20,000/- on Managing Director of the respondent Company.

It is further ordered: a. The aforesaid penalty be deposited within 30 days of this Order. b. The pending procurement of RECs ordered vide order dated September 11, 2013 be done expeditiously but before March 31, 2014. Noncompliance will attract an additional penalty of Rs. 2,000/- per day thereafter.

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P O L I CY & REGUL A T I O N

APTEL Set Aside Tamil Nadu’s Solar Rider The brief facts of the case are as under:

these Appeals.

(A) In pursuance of Section 86(1) (e) of the Electricity Act, 2003, the State Commission notified the TNERC Renewab le Energy Purchase Obligation Regulations 2010 specifying that every obligated entity mandated under clause 86(1)(e) of the 2003 Act shall purchase not less than the defined minimum percentage of its consumption of energy from renewable energy sources unde r the Renewable Purchase Obligation (RPO) during a year as specified in the Commission’s Regulations/Orders issued from time to time.

As the impugned order as well as the issues raised in th e same Appeals are the same , a common Judgment is being rendered.

(B) On 29.7.2011, the above Regulations were amended by defining the obligated entity and specifying the minimum quantum of total Renewable Purchase Obligation including the minimum quantum of Solar Renewable Purchase Obligation out of the total RPOs, etc. ( C ) On 19.10.2012, the Government of Tamil Nadu released the Tamil Nadu Solar Energy Policy, 2012 and notified various procedures in the matter of implementation of the policy including Solar Purchase Obligation (SPO) . V ide letter dated 6.11.2012, the State Government issued a policy directive under Section 108 of the 2003 Act to the State Commission for necessary action o n its policy. (D) Pursuant to above policy directive, the State Commission on 10.12.2012 released Consultative Paper on the issues related to the State Government’s Solar Energy Policy of 2012 . The Appellants submitted their comments on the Consultative Paper. (E) The State Commission issued the impugned order dated 7.3.2013 notifying the various procedures and modalities for administration of the scheme and various other mattes relating to the State Government’s Solar Policy to be administered by the T ANGEDCO, the second Respondent herein. The members of the Associations and other High Tension (HT) consumers have been notified as obligated consumers in the impugned order fastened with obligation of Solar Purchase Obligation. (F) Aggrieved by the impu gned order dated 7.3.2013, the Appellants have filed 70

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The Appellants have made the following submissions : (A) The impugned order dated 7.3.2013 is contrary to law and is in violation of the provisions of the Electricity Act, 2003. The entire order has been passed by the State Commission based on the policy direction issued under Section 108 of the Act and not on any independent consideration. The State Commission has proceeded on a mistaken belief that the directive of the State Government is binding upon it without any independent consideration and without any discussion whatsoever on the merits and demerits of the same. As such there has been no application of mind by the State Commission. The State Commission did not even examine if the percentage of Solar Purchase Obligation ( SPO ) mandated by the State Government is realistic, practicable, achievable and is in consonance with the relevant Regulations. The State Commission is to be guided and not bound by the directive issued by the State Government under Section 108 of the 2003 Act . Further, the power needs to be exercised only in the matter of discharge of functions of the State Commission. SPO is not without the functional scope of the State Commission B) The State Commission has already put in place Regulation with respect to Renewable Purchase Obligation (RPO) and the same has been in force from 2010. Solar Purchase Obligation (SPO) already forms a part of the RPO. The obligated entities are obliged to purchase not less than 9% of their consumption from renewable energy sources out of which 0.05% has to be from solar sources and balance 8.95% from non - solar renewable energy sources. Further, SPO cannot be imposed without amending the existing Regulations. By way of having one

Regulation as RPO obligation and another order for SPO as per the Solar Policy of the State Government, the Commission has exceeded its powers. (C ) SPO is impossible of fulfillment and is a numerical stipulation without any relation to reality and would only create confusion. As on 31.1.2013, the installed capacity of TANGEDCO (R - 2) is about 10,722 MW. There is no solar capacity at all in this. Only 7MW of power is from Solar Power Plants in the State of Tamil Nadu. The State Commission being aware of the fact that sufficient solar power is not being generated and available in its RPO Amendment Regulations , 2011 dated 29.7.201 1 , reduced the solar power obligation from 0.15% to 0.05%. The State Commission suddenly in March 2013 has increased the obligation to 3 % for the year ending 2013 and 6% for the year commencing from 2014 in addition to RPO obligations. This would require an installed capacity of 720 MW for the year 2013 and 1500 MW of solar plants in the year 2014 which does not exist. (D) The State Commission has erred in imposing SPO when several issues as set out in the impugned order in paragraph 5 relating to banking mechanism, transmission and wheeling charges, cross subsidy surcharge, etc., are yet to be even dealt with, leave a lone finalized. (E) The order is discriminatory in nature as SPO has been imposed on HT and LT Commercial Consumers only. The distribution licensee has not been made obligated entity unlike the RPO Obligation Regulations, 2010 wherein the distribution licensee has to purchase a minimum quantum of 9% of energy from renewable energy sources . (F) The obligated entity under the RPO Regulations besides meeting 9% of RPO is also mandatorily go with another SPO under the impugned order which is against the whole scheme as enumerated under Section 86(1)(e) of the 2003 Act as for the same purpose of renewable purchase obligation there are two separate legislations independent of each other.

TANGEDCO (R - 2) has submitted as under in

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support of the impugned order. (A) The National Tariff Policy was amended in January 2011 to prescribe solar specific RPO to be increased from 0.25% in 2012 to 3% by 2022. The National Electricity Policy also stipulates that adequate promotional measures would have to be taken for development of technologies and a sustained growth of non - conventional energy sources. The NEP also stipulates that the State Governments have a major role particularly in creation of generation capacity. The Regulatory Commissions have the responsibility of ensuring that the regulatory process facilitates the attainment of this objective. The direction of the State Government is consistent with the National Electricity Policy and the Tariff Policy. (B) The State Government under Section 108 of the 2003 Act is entitled to give directions to the State Commission and the State E Appeal No. 92 of 2013 & IA no. 151 of 2013 and Appeal No. 109 of 2013 Page 14 of 50 Commission under Section 86 of the Act has to be guided by such directions in discharge of its functions u/s 86 of the Act. It is in pursuance of its functions under Section 86 that the State Commission has issued the Consultative Paper and under Section 86(1) (e) of the Act fixed Solar RPO . (C) The impugned order is legally sustainable and consistent. In the Amendment Notification of RPO Obligations dated 29.7.2011, it was provided that the State Commission may fix the RPO for the future years beyond 2011 - 12 taking into account the future developments in REC market and aug mentation of Non - Conventional Energy Sources. In view of the State Government directive to bring in capacity addition and E Appeal No. 92 of 2013 & IA no. 151 of 2013 and Appeal No. 109 of 2013 Page 15 of 50 considering the financial viability of Solar Generators, there is no inconsistency in the decision of Regulatory Commission to increase the Solar Purchase Obligation from 0.05% in 2012 to 3% in 2013. The State Commission is empowered as per the RPO Obligation Regulation of 2010 to refix the RPO after 2012. (D) The RPO obligation of 0.05% solar was valid until a new order for solar obligation, the solar order 2013 was issued. After the coming into effect of the solar order envisaging SPO, the 0.05% of SPO under RPO ceases to have effect. Thus, there is no inconsistency between the impugned order

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and the RPO Regulations of 2010 . The two relate to different time periods. E Appeal No. 92 of 2013 & IA no. 151 of 2013 and Appeal No. 109 of 2013 (E) The quantum of 3% upto 21.12.2013 and 6% SPO from 2014 would be appropriate considering the availability of equivalent solar installations. TANGEDCO (R - 2) has already issued Letter of Intent for 700 MW Solar Projects. Permissions for another 450MW of projects to be set up under REC Scheme have also been received by TANGEDCO (R - 2). Even if 50% of these projects get commissioned by 2014, Tamil Nadu will have over 500 MW Solar Projects sufficient to meet the SPO. It is in the above circumstances, TANGEDCO has take n a decision to file an application before the State Commission to defer the implementation of SPO till 2014. E Appeal No. 92 of 2013 & IA no. 151 of 2013 and Appeal No. 109 of 2013 (F) In the absence of SPO as per the impugned order, many of the bidders for the Solar Projects may withdraw their bids.

The State Commission has also made submissions supporting the impugned order stating that the impugned order is not contrary to the Electricity Act, 2003 and the SPO does not violate the RPO Obligation Regulations, 2010 and these are not contrary to each other and ought to be read in a harmonious fashion. Further, the impugned order is also not discriminatory. On the above issues we have heard the learned counsel for the Appellants, TANGEDCO and the State Commission. Summary of our ďŹ ndings: The State Commission in discharge of its functions under the Electricity Act, 2003 has to be guided by the directions of

the State Government u/s 108 of the 2003 Act but the same are not mandatory and binding . The State Commission being an independent statutory authority is not bound by any policy directions which hampers its statutory functions. ii) The State Commission has to be guided by the directions of the State Government u/s 108 of the Act only in discharge of the functions assigned to it under the 2003 Act. Such directions have to be implemented only under the functions and powers assigned to the State Commission under the 2003 Act. The Act only provides for specifying the purchase obligation from the renewable energy sources under Section 86(1)(e). Thus, the directions of the State Government for SPO can only be considered by the State Commission in exercise of its powers under Section 86(1)(e) of the Act. The contention of the State Commission that SPO and RPO are two different obligations and the RPO has been fixed under RPO Regulations 2010 under Section 86(1) (e) and SPO as per implementation of Policy directions of the State Government under Section 108 is not legally valid. The State Commission has to consider the directions of the State Government under section 108 in the matter of discharge of its functions under the Act and not in a general way outside the functional scope of the Act. The State Commission had no power to issue an SPO order as per the directions of the State Government u/s 108 in addition and contrary to RPO obligations specified in the RPO Regulations 2010. The State Commission can specify the RPO/SPO on the total consumption of the distribution licensee and not selectively and directly on some categories of consumers of the distribution licensee. The SPO obligation as provided in the impugned order is contrary to the State Commissionâ&#x20AC;&#x2122;s Renewable Energy Regulations 2010 and is beyond the powers of the State Commissions . The impugned order is also discriminatory to some categories of consumers of the distribution licensee. v) The State Commission has simply tried to implement the directions of the State Government by passing the impugned order without considering its own functions and powers under the 2003 Act and its own Renewable Energy Regulations notified under the Act and even without considering the other important issues raised by the objectors .

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P O L I CY & REGUL A T I O N

MERC Directs BEST To Fulfil The Solar Target On A Cumulative Basis By FY 2015 - 16 R

eview Petition filed by BEST Undertaking regarding Order dated 26 December,2012 in Case no. 100 of 2012, in the matter of Verification and Compliance of Renewable Purchase Obligations targets by BEST Undertaking for FY 2010-11 and FY 2011-12 as specified under MERC ( RPO-REC) Regulations, 2010.

The Commission has specified RPO targets for Obligated Entities for FY 2010-11 to FY 2015- 16. The RPO targets specified in the Regulations are as given below:

The shortfall in procurement of total renewable energy in MU terms for FY 201011 and FY 2011-12, to be carried forward to FY 2012-13 in respective categories worked

Further, distribution licensees are mandated to procure 0.1% per year of its non-solar RPO obligation for 2010-11 and 2011-12 and up to 0.2% of from FY 201314 to FY 2015-16 by way of purchase from mini-micro hydro power projects.

out as per details provided by MEDA and subsequent submissions by BEST is as given below....”

The main prayer of the Petitioner is as under:i) “Condone the delay of 2 days and admit petition in accordance with Reg. 85(a) of MERC (Conduct of Business) Regulations 2004 and Registry may be directed to register this Review Petition on its file. ii) Take into consideration the earnest efforts taken by BEST in procuring the RE for FY 2011-12 & FY 2012-13 in spite of various constraints and difficulties mentioned above while abiding by the Regulations and exercise its powers as per Section 94(1) (f) of the Electricity Act 2003 and Reg. 85 (a) of MERC (Conduct of Business) Regulations, 2004 to review its Order dated 26th December 2012 in Case No, 100 o 2012 in the matter of BEST’s RPO compliance for FY 2010-11 and FY 2011-12 and allow BEST fulfilment of the cumulative Solar RPO by end of Control Period i.e. FY 2015-16. iii) Condone the levy of Regulatory Charges for the quantum of shortfall in Solar RPO target cumulative till 31st March 2016.

3. BEST submitted that: a) Being the distribution licensee BEST has filed a Petition requesting cumulative fulfilment of Solar RPO by FY 2015-16. b) The Commission has notified the MERC (RPO-REC Regulations’2010) on 7 June, 2010 under the said RPO Regulation. 72

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c) The Commission had initiated suomotu proceedings vide Case No. 100 of 2012 for verification of RPO compliance by BEST with the RPO targets specified for FY 201011 and FY 2011-12 and issued the Order dated 26December 2012. The Commission directions to the BEST are reproduced as below: “....The Commission directs BEST to fulfil the shortfall in RPO targets for both solar and Non-Solar (including mini/micro hydro targets) for FY 2010-11 and FY 2011-12 and RPO targets for FY 2012-13 cumulatively before 31 March, 2013. Further, BEST may consider availability of NonSolar RECs, as one of the options amongst various available options, for fulfilment of its cumulative shortfall in Non-Solar RPO targets for FY 2010-11 and FY 2011-12.

The Commission also decided that “no RPO Regulatory Charges shall be applicable on BEST for non-fulfilment of RPO targets during FY 2010-11 and FY 2011-12 provided that the same shall be fulfilled on a cumulative basis in addition to the RPO target for FY 2012-13 before 31st March, 2013.” . The Commission vide notice dated 11 March, 2013 scheduled a hearing in the matter on 18 March, 2013 and directed BEST to serve a copy of the Petition on authorised Consumer Representatives. . During the hearing, Shri N. V. Bhandari, divisional engineer appeared on behalf of BEST. BEST made detailed presentation on the efforts undertaken by it to fulfil the cumulative RPO Targets as per the directives of the Commission in Case No. 100 of 2012. . BEST submitted the details of action taken by BEST in order to abide by the Commission’s directive to fulfill the

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tor fulfilling RPO for FY 201213. Based on these EoIs, it has entered into short term contracts with RE developers for supplying non-Solar RE on short term basis. . Accordingly, the overall RE procurement scenario for FY 2010-11 to FY 2012-13 is as follows: • Considering the number of non-solar RECs available in the market, the shortfall of 262.88 MUs of non-solar RPO till FY 201213 is likely to be met by BEST to achieve its cumulative non-solar RPO target for FY 2010-11 to 2012-13 by 31 March, 2013 as directed by the Commission. • Further, BEST submitted that as per the directives of the Commission, it has to fulfil its Solar RPO target for FY 2010-11 and FY 2011-12 and RPO targets for FY 2012-13 cumulatively before 31 March, 2013. Considering the carry forward of total 24.23 MUs for FY 2010-11, FY 2011-12 and estimated Solar RPO target for FY 2013-14 as 13.18 MUs the total Solar RPO of 37.41 MUs is required to be fulfilled before 31 March, 2013.

RPO targets cumulatively by FY 2012-13 as below: • BEST has purchased 66,884 nos. (66.884 MUs) of non-Solar RE Certificates and 140000 RECs (140 MUs) at the ﬂoor price of Rs.1500 /REC on 26 December, 2012 and 30 January, 2013, respectively. Thus it has fulfilled its non-solar RPO for FY 2010-11 and 2011-12. BEST has further

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decided to purchase non-Solar RECs in the remaining trading session during February and March 2013 to fulfil its cumulative nonSolar RPO by 31 March, 2013. • BEST has also advertised Expression of Interest (EoI) on 8 April, 2012, 8 October, 2012 and 8 January, 2013 for procurement of non-Solar Renewable energy on short term basis at MERC approved Tariff

• BEST further submitted that in view of the considerable delay in the establishment of Solar PV project by MahaGenco, BEST has decided to terminate the PPA entered with it on 16 May, 2011 for procuring 10 MW solar power from their proposed project at Shivajinagar, District Dhule. Thus, it is unlikely that BEST will be able to meet the cumulative Solar RPO for FY 201011, 2011-12 and 2012-13 by 31 March, 2013. • BEST has also tried the option of buying RECs for fulfilment of its Solar RPO. As BEST’s Cumulative solar power shortfall for FY 2010-11, 2011-12 and 2012-13 is

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37.41 MUs, BEST will have to purchase 37,410 Solar RECs. However, not enough Solar RECs are available in the market. As per the latest REC Registry report available on REC Registry website, 1251 Solar and 1876936 non-solar RECs are available in the market presently. Hence, it is not practicable for BEST to adopt the REC route for fulfilling this cumulative Solar RPO shortfall of 37.41 MUs. BEST prayed that the Commission should allow carry forward of the shortfall in Solar RPO target (from FY 2010-11 to FY

2004 for the Commission to review its Order dated 26 December 2012 in Case no. 100 of 2012 in the matter of BEST’s RPO compliance for FY 2010-11 and FY 2011-12 to the extent of allowing sufficient time to BEST to fulfill its Solar RPO. . BEST also prayed that there has been a bona fide and inadvertent delay of two days in filing of the present review Petition and prayed for condonation of this inadvertent delay. Commission’s reasons:

Decision

with

As per Regulation 18.1 of MERC (RPOREC) Regulations, 2010, the Commission has powers to relax or waive any of the provision of the said Regulations after giving an opportunity of being heard to parties likely to be affected. Relevant extract of said Regulations is as under: “18.1 The Commission may by general or special order, for reasons to be recorded in writing, and after giving an opportunity of hearing to the parties likely to be affected may relax or may waive any of the provisions of these Regulations on its own motion or on an application made before it by an interested person.” Thus, the Commission hereby relaxes/ waives the Solar RPO targets as stipulated under Regulation 7.1 of the MERC (RPOREC) Regulation 2010 for BEST for FY 2010-11 and FY 2011-12 and directs BEST to fulfil the solar target on a cumulative basis by FY 2015- 16.

2015-16) cumulatively up to FY 2015-16. In support of its submission, BEST submitted actual / projected energy requirement for FY 2010-11 to FY 2015-16 and submitted that estimated the cumulative Solar RPO target (for FY 2010-11 to FY 2015-16) would be about 121.48 MUs. BEST also submitted that based on the industry standard of 1.5 MU/MW/year output for Solar PV projects, BEST will have to contract 27 MW of Solar power starting from FY 2013-14 onwards to meet the estimated Solar obligation of 121.48 MUs till FY 2015-16. BEST also submitted its way forward to achieve this estimated cumulative Solar RPO target of 121.48 MUs. BEST has entered into Memorandum of Understanding with the lowest successful bidder (M/S Welspun Energy Maharashtra Pvt. Ltd.) for supplying approximately 28 MUs per annum of solar energy from FY 2013-14 onwards for 25 years. Future Solar RPO Scenario during Control Period submitted by BEST 7. BEST submitted that considering the above submissions, there is sufficient reasons as per provisions under Regulations 85 (a) of MERC (Conduct of Business) Regulations, 74

EQ February 2014

. The Commission observed that BEST has given justification for the delay of two days in filing of the present review Petition, so two days’ delay is hereby condoned and the Petition is admitted. Having heard the Petitioner and after considering the relevant material placed on record, the Commission observed that BEST has already fulfilled its non-solar RPO target for the FY 2010-11 and 2011-12. It is also observed that BEST is likely to fulfil the non-solar target for FY 2012-13 before 31 March, 2013.

Regarding the shortfall in RPO targets for non-solar (including mini/micro hydro targets) for FY 2010-11 and FY 2011-12 and RPO targets for FY 2012-13 cumulatively before 31 March, 2013, the same shall be reviewed by the Commission in the proceeding for Verification and Compliance of RPO targets for FY 2012-13 as specified under MERC (RPO-REC) Regulations, 2010.

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The Commission is of the view that BEST has given adequate justification to demonstrate that it has undertaken all the efforts in procuring Solar power in order to meet its RPO targets and in spite of the efforts undertaken by it, it faced a genuine difficulty in meeting its solar RPO target. Further, the Commission opines that any constraint regarding availability of Solar power or Solar RECs for meeting Solar RPO targets in future could be mitigated by tying up adequate quantum and sources for Solar power in a timely manner through advance actions and/or timely purchase of Solar RECs from the market.

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PRODUCTS Solectria Renewables Introduces a New Transformerless Residential Inverter Solectria Renewables, LLC, a leading U.S. PV inverter manufacturer, the introduction of its new PVI 3800TL transformerless residential inverters today. The new 3.8kW single-phase inverter is the best residential solution available in the inverter market today. The PVI 3800TL features the highest peak (98%) and CEC (97.5%) efficiencies, as compared with other major inverter suppliers. Its small, compact, lightweight design with integrated fused combiner and disconnect makes for a quick and easy installation. It can withstand the harshest weather conditions with a NEMA 4 enclosure rating.

“Solectria was an early entrant into the residential market in 2005. Since then, we have expanded the line to cover 1.8-7.5kW single-phase inverters to keep up with the continuous development and improvement of the residential PV market,” said James Worden, CEO of Solectria Renewables. “Adding this new transformerless inverter is evidence to our commitment to be at the forefront of the PV inverter market.” The PVI 3800TL is the first in this new line of transformerless residential inverters. In Q2 2014, Solectria will add 5.2, 6.6 and 7.6kW inverters. These inverters will have performance specifications as impressive as the PVI 3800TL as well as dual MPPT.

skytron energy’s Power Plant Controller for Renewables Now Certified to UL skytron energy, the internationally renowned developer of monitoring, control and supervision systems for renewable energy power plants, has successfully completed the cETLus product safety test for their sky control power plant controller. The controller’s cET Lusapproval to the UL/ CSA 60950-1 equipment safety standard rounds off UL certifi cation of skytron’s entire instrumentation and control range for renewable power plants and particularly for utility-scale photovoltaic installations. The system solution for solar applications covers the Array Guard series of industry-standard combiner boxes for DC distribution and realtime string current measurement; skyCONNi field sensors for irradiation, weather and

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status monitoring; sky log data loggers; the sky control plant controller for grid stability and balancing functions; and the PV Guard remote supervision platform. The control aspect of the system ensures the power plant’s ﬂexibility in meeting local TSO/DSO grid connection regulations. Itsadd-on sky control RItele control interface allows renewable power plants to leverage the various forms of electricity dispatching and trading, which is particularly important in regions without a national FIT. “To date, in collaboration with international EPC companies, we have installed our monitoring and control system in more than 4.5 GWp of solar power plants, 3 GWp of which are equipped with our plant controller”, says Alberto Gallego, Product Marketing Manager at skytron energy. “With cETLus listing now completed across our entire functional range, we are happy to be part of the exciting, fast growing U.S. solar market.”

EQ February 2014

7th International Photovoltaic Power Generation Expo Date: 26-28Feb2014 Place: Tokyo, Japan Organiser: Reedexpo Tel.: +81 3 33498518 Email: pv@reedexpo.co.jp Web.: www.pvexpo.jp

MiaGreen Expo & Conference (6th edition) Date: 27-28Feb2014 Place: Miami, Florida, USA Organiser: MiaGreen Tel.: +1 305 4120000 Email: mail@MiaGreen.com Web.: www.miagreen.com

Philippines Power & Electricity 2014 Date: 3-6March2014 Place: Manila, Philippines Organiser: IBC asia Tel.: +65 6508 2401 Email: register@ibcasia.com.sg Web.: www.philippinespower.com

The Solar Show Africa 2014

Date: 11-12March2014 Place: Johannesburg, South Africa Organiser: Terrapinn Tel.: +27 11 5164015 Email: enquiry.za@terrapinn.com Web.: www.terrapinn.com/exhibition/solar-show-

africa/#sola...

North India Solar Summit

Date: 11-13March2014 Place: Lucknow, Uttar Pradesh, India Organiser: NISS Tel.: +91 76666 47373 Email: contact@niss.org.in Web.: www.niss.org.in

POWER-GEN Africa 2014

Date: 17-19March2014 Place: Cape Town, South Africa Organiser: Pennwell Tel.: +1 918 8319160 Email: registration@pennwell.com Web.: www.powergenafrica.com

Intersolar Summit New Jersey 2014 Date: 20-20March2014 Place: New Jersey, USA Organiser: Intersolar Tel.: +49 228 9714345 Email: Web.:

Silicon PV 2014

Date: 25-27March2014 Place: â&#x20AC;&#x2DC;s-Hertogenbosch, The Netherlands Organiser: Siliconpv Tel.: +49 761 479140 Email: info@siliconpv.com Web.: www.siliconpv.com

Intersolar China 2014

Date: 26-28March2014 Place: Beijing, China Organiser: Intersolar Tel.: +86 10 84600392 Email: yuliang@ciec.com.cn Web.: www.intersolarchina.com

SOLARCON China 2014

Date: 18-20March2014 Place: Shanghai, China Organiser: Semi Tel.: +86 21 50270909 Email: solarconchina@semi.org Web.: www.solarconchina.org

Africa Photovoltaic Solar Energy Conference and Exhibition 2014

New Energy Husum 2014

Power & Alternative Energy Asia 8th International Exhibition & Conference

Date: 20-23March2014 Place: Husum, Germany Organiser: Messehusum Tel.: +49 4841 9020 Email: info@messehusum.de Web.: www.new-energy.de

Date: 27-29March2014 Place: Durban, South Africa Organiser : Africapvsec Tel.: +49 89 72012735 Email: info@africapvsec.com Web.: www.africapvsec.info

Date: 29-31March2014 Place: Karachi, Pakistan Organiser: Powerasia Tel.: +92 21 111222444 Email: info@powerasia.com.pk Web.: www.powerasia.com.pk

Solar Operations & Maintenance North America Date: 25-26March2014 Place: San Francisco, USA Organiser: Solarplaza Tel.: +31 10 2809198 Email: s.cruccu@solarplaza.com Web.: www.solaromnorthamerica.com

International Green Energy Expo & Conference Korea 2014 Date: 2-4April2014 Place: Daegu, Korea Tel.: +82 53 6015371 Email: energy@excodaegu.co.kr Web.: www.energyexpo.co.kr

For Listing of your Event : Conference and events are listed free-of-charge, so please feel free to get in touch to tell us about your event. We would also be happy to provide you with free copies of magazine for distribution at your events.(while stock last). Please send your conference information to : Mr. Gourav Garg at gourav.garg@EQmag.net

EQ February 2014

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Energy world in ur inbox Subscribe EQ International Weekly eNewsletter Energy Business, Technology & Financial Updates email to Piyush.Mishra@EQmag.net INDIA Tel. + 91 731 255 3881 | Fax. +91 731 255 3882 anand.gupta@EQmag.net

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EQ International Magazine Editorial Advisory Board

Shivanand Nimbargi MD & CEO Green Infra Limited

Rajesh Bhat - Managing Director juwi India Renewable Energies Pvt Ltd

Oliver. Behrendt Managing Director - REFU Solar Electronics Pvt Ltd

Ravi Khanna - CEO Solar Power Business Aditya Birla Group

Gyanesh Chaudhary Managing Director Vikram Solar Private Limited

Gaurav Sood Managing Director Solairedirect Energy India Pvt Ltd

Inderpreet Wadhwa CEO Azure Power

Sunil Jaini Chief Exe. Off. & Exe. Director Hero Future Energies Pvt Ltd.

Pashupathy Gopalan Managing Director MEMC-SunEdison

Paulo Soares CFO & Director Inspira Martifer Solar Ltd

K Subramanyam Former CEO Tata BP Solar

Shaji John Chief Solar Initiatives, L&T