SolarQuarter December Issue 2020

Empowering, Insightful, Engaging

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INA H C LY P P U S E V I T C E P S R E P

HOW THE PLI (PRODUCTION-LINKED INCENTIVE) SCHEME WILL HELP INDIA TO BE A SIGNIFICANT MANUFACTURING DESTINATION AND LOG INTO THE GLOBAL SUPPLY CHAIN?

TRENDING The Need of the Hour - Energy Management Systems(EMS) for Industry 4.0

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CONTENTS CONVERSATION

NEWS 06

PROJECT MONTHLY

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TENDER TRACKER

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THINK TANK

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POLICY DEBRIEF

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DHRUBA PURKAYASTHA INTERIM INDIA DIRECTOR AND DIRECTOR OF US INDIA CLEAN ENERGY FINANCE (USICEF)

PERSPECTIVE 15

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HOW THE PLI (PRODUCTION-LINKED INCENTIVE) SCHEME WILL HELP INDIA TO BE A SIGNIFICANT MANUFACTURING DESTINATION AND LOG INTO THE GLOBAL SUPPLY CHAIN? TELL US HOW SUSTAINABLE IS THE NEW RECORD LOW TARIFF OF RS 2/UNIT?

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WHAT ARE THE EMERGING FINANCIAL MODELS FOR NEW SOLAR PROJECTS FOR DEVELOPERS TO MAXIMIZE RETURNS?

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HOW CAN ADVANCED DATA ANALYTICS HELP COST REDUCTION AND IMPROVE OPERATION & MAINTENANCE OF LARGE SCALE SOLAR PLANTS?

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IS NOW THE RIGHT TIME FOR SMART METERS IN INDIA? HOW WILL SMART METERING INFRASTRUCTURE HELP THE DISTRESSED POWER SECTOR?

C CHAUDHARY

COO, AMP ENERGY INDIA

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GS VENKATESH

DIRECTOR & CEO, AVI SOLAR ENERGY PVT. LTD.

INSIGHTS 36

THE NEED OF THE HOUR - ENERGY MANAGEMENT SYSTEMS(EMS) FOR INDUSTRY 4.0

COMPANY FEATURE 32

LONGI SOLAR

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KRANNICH

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SUNNY XU CEO, KEHUA TECH INDIA

PRODUCT FEATURE 27

ENERMAN

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PROJECT MONTHLY TATA POWER RECOGNISED AS ONE OF THE COUNTRY’S MOST SUSTAINABLE COMPANIES BY SUSTAIN LABS PARIS (SLP) Tata Power, Indi a’ s largest i ntegrated power uti li ty has emerged as one of ‘ Indi a’ s Most Sustai nable Compani es’ at rank 13 and an A+ rati ng, accordi ng to the annual survey conducted by Sustai n Labs Pari s (SLP), France. The most sustai nable Indi an compani es studi ed by SLP, an enterpri se based i n France, New Zealand and Indi a, i n associ ati on wi th Busi ness World, mapped and i denti fi ed 200 largest compani es i n the country by revenue and ranked them across vari ous parameters after an i n-depth analysi s. These corporate houses were ranked on parameters li ke resource effi ci ency, soci al entrepreneurshi p, fi nanci al management, employee well-bei ng, clean revenue and i nclusi ve supply chai ns.

Di vi ng deeper i nto these cri teri a, 31 aspects along wi th thei r Key Performance Indi cators (KPIs) were i denti fi ed, whi ch helped exami ne, assess and rank all the compani es. In addi ti on, i n-house experts at SLP provi ded detai led expert revi ews of these compani es.

TP RENEWABLE MICROGRID MARKS ITS FIRST ANNIVERSARY

BY COMMISSIONING ITS 100TH SOLAR MICROGRID PROJECT IN RATNAPUR, UTTAR PRADESH Whi le the Government of Indi a has achi eved 100% electri fi cati on under the Saubhagya scheme, communi ti es i n Indi an states, especi ally Bi har and Uttar Pradesh sti ll have unreli able power supply and face unscheduled power cuts. Many of the mi croenterpri ses sti ll use non-gri d sources of electri ci ty to run thei r machi nes such as atta chakki , oi l expellers etc. To bri dge thi s gap, TP Renewable Mi crogri d (TPRMG), a 100% Subsi di ary of Tata Power shall provi de a cheap and reli able power supply through an off-gri d AC Mi crogri d soluti on. TPRMG announced that i t has commi ssi oned i ts 100th Solar Mi crogri d proj ect i n a remote & small vi llage of Ratnapur, Uttar Pradesh coi nci di ng wi th i ts fi rst anni versary. Thi s 30kW Mi crogri d proj ect harnesses energy from the sun usi ng solar panels. The mi crogri d has a battery as an energy storage system. For the back-up power supply, a DG-set has been i nstalled i n the Mi crogri d i tself, enabli ng 24×7 power supply to the communi ty.

AMP ENERGY INDIA EXPANDS TATA HITACHI SOLAR PROJECT TO 10.5 MW Tata Hi tachi , a leadi ng constructi on machi nery provi der i n Indi a has partnered wi th Amp Energy to set up an onsi te solar power uni t at thei r faci li ty i n Kharagpur, West Bengal. Thi s proj ect i s a repeat order to Amp Energy Indi a from Tata Hi tachi . Amp has an operati onal 5MW solar proj ect supplyi ng power to Tata Hi tachi at thei r factory premi ses i n Kharagpur si nce 2018. Wi th thi s proj ect, Amp has expanded the capaci ty to 10. 5 MW maki ng i t the largest behi nd-themeter proj ect i n Eastern Indi a.

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TATA POWER BAGS SAP ACE AWARD 2020 FOR ADOPTION OF TRANSFORMATIVE TECHNOLOGIES Tata Power, Indi a’ s largest i ntegrated power uti li ty, has been conferred wi th the ‘ Adopti on of Transformati ve Technologi es (AI, ML, IoT, Blockchai n)’ Award at the recently held 14th edi ti on of SAP ACE Awards 2020. The award was accepted by Jayant Dabholkar, HeadD&IT (T&D & New Busi ness Servi ces) on behalf of the company at a vi rtual ceremony held for the same and recogni sed Tata Power’ s i nvestment i n technology to enhance SAP appli cati ons wi th transformati ve technologi es li ke Arti fi ci al i ntelli gence, Machi ne Learni ng, Internet of thi ngs and Blockchai n for best customer servi ce.

BOROSIL RENEWABLES LTD. ANNOUNCES SUCCESSFUL COMPLETION OF RS 200 CRORES QIP Borosi l Renewables Li mi ted (BRL) announced the successful completi on of fund rai si ng of Rs. 200 Cr through a Quali fi ed Insti tuti ons Placement (Issue). The Securi ti es Issue Commi ttee of BRL approved openi ng of the Issue on December 14, 2020 and approved the closi ng of the Issue on 17th December 2020. BRL allotted 1, 58, 04, 030 shares of face value of Re. 1 each at Rs. 126. 55 per share. Post the QIP i ssue, the holdi ng of promoter and promoter group wi ll be 61. 92%.

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TENDER T R A C K E R

TENDERS FLOATED BY CENTRAL AUTHORITIES

TENDERS FLOATED BY PSU

TENDERS FLOATED BY STATE AUTHORITIES

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IN CONVERSATION

"Climate Policy Initiative (CPI) undertook a first-of-its-kind study that presents the most comprehensive information on green investment flows in the country."

Dhruba Purkayastha Interim India Director and Director of US India Clean Energy Finance (USICEF) for Institutional Investment”, makes a case for institutional investors to invest in the renewable energy sector in India.

In an insightful interview with SolarQuarter, Mr Dhruba Purkayastha, Interim India Director and Director of USIndia Clean Energy Finance (USICEF) talks about how India is positioned in receiving green investments, how India's green sector has grown over time and the need of a comprehensive climate budget tagging framework.

Please tell our readers about the services CPI provides in the clean energy sector.

In India, CPI manages long-term climate, clean energy, and green finance related innovative programs such as The Global Innovation Lab for Climate Finance (the Lab) and the US-India Clean Energy Finance (USICEF) Facility. We are also building a Green Finance Program in India which includes tracking of green finance investment flows, developing a taxonomy for Green Finance in India, and organizing a banking, financial services and insurance (BFSI) collaborative. We have designed several investable structures/instruments to catalyse finance in the clean energy space in India.

Through the Lab, we have designed several financial instruments for the energy sector such as financing for low carbon autorickshaw, battery subscription facility for electric vehicles, and rooftop solar private sector financing facility. We have also undertaken several studies on India's renewable sector, particularly from the financial perspective, which has time and again influenced policy, regulation, and business decision making. Some highlights of our research include - “An Assessment of India’s Energy Choices'' which objectively compares renewable energy and fossil fuels and examines ways for India to transition into a low-carbon economy; “Getting to India’s Renewable Energy Targets: A Business Case .

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In the distributed energy space, we support the development and financing of distributed solar power projects in India through our USICEF initiative. It is India’s first project preparation facility to scale up distributed solar power projects and drive long-term debt financing. In just three years, USICEF has identified over 30 promising distributed solar power projects across 20 states in India and committed a total of $5.1 million in grantbased funding to these projects.

These projects are expected to commission over 500 MW of clean energy, avoid 660,000 MT CO2 emissions annually, create 17,500 new jobs, generate 710,000 MWh/a of electricity, and mobilize more than $225 million in project debt

Currently, what is India's position in receiving green investments and its deployment? What more can be done to scale up these investments?

Climate Policy Initiative (CPI) undertook a first-of-its-kind study that presents the most comprehensive information on green investment flows in the country. According to the study, the green finance flows in India over FY 2017-18 totalled USD 38 billion, an average of USD 19 billion per annum.

Although the number looks impressive on an absolute basis, it is way less than what is needed to reach India's NDC target, which is roughly USD170 billion per annum.

Renewable energy and transportation are the key recipients of green investment, while domestic, commercial banks and corporates are the key financers. We also observed that there is a limited flow of capital from the capital market and foreign investors.

There are several structural issues related to green finance in the financial sector. India needs to develop a Green Finance strategy roadmap to accelerate capital flows to the green sectors and make the economy resilient against climate change risks. The key measures are a common taxonomy of Green finance accepted at the policy and regulatory levels for banks and financial institutions, recognition and disclosure of climate change risk in the financial system, and developing financial market mechanisms, and designing policy and regulatory interventions to divert

capital to green sectors to address market and regulatory failures. In addition, we need to develop tools and frameworks to incorporate climate change risks and opportunities in financial/investment decision making and practices, design green financial products suiting the needs of different types of investors, and conducting awareness programs on climate risks in the financial sector.

How has India's green sector grown over time compared with overall GDP? The GDP of India grew at an average rate of 7.2% between 2016-2017 and 2017- 2018. In the same period, green investment increased by 24%. Between FY2017 and FY2018, India's Gross Fixed Capital Formation (GFCF) to GDP ratio was 28%, while green investments averaged ~1% of GDP. While the data is insufficient to develop a relationship between the two variables, it indicates that green investments have the potential to drive the economic growth of the country. We believe there are huge opportunities in the green sector as the Governments and corporations around the world have started recognizing climate change as a material risk, and only through large-scale investment in green sectors can mitigate these risks.

According to you, what is the requirement of a comprehensive climate budget tagging framework to track climate-related expenditures in national budget systems?

There are several challenges in monitoring, reporting, and accessing public data due to large variations in granularity, format, and categorization at the Central and State level.

Consistent and verifiable data on the use of proceeds is severely lacking. A budget tool with dedicated codes standardized throughout the process will best facilitate the measurement and reporting for national and international green finance to mainstream climate action through policy formulation. This exercise has taken precedence in countries such as Bangladesh, Nepal, Philippines, and Indonesia in recent times.

A budgeting exercise to mainstream action is not

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unprecedented in India. Indian government budgets have successfully adopted a powerful tool to understand the differential socioeconomic impact of gender policies.

However, what constitutes green must be defined first - the lack of availability of a harmonized green finance taxonomy in the country makes green tagging of domestic entries arbitrary and vulnerable to the user's discretion.

There are huge opportunities in the green sector as the Governments and corporations around the world have started recognizing climate change as a material risk, and only through large-scale investment in green sectors can mitigate these risks.

Do you think a stronger framework would enable dedicated institutions to assume a greater role in advancing the case for green investments?

We need a stronger framework related to green finance in India. The financial regulators in India, such as RBI, PFRDA, and IRDA, need to consider climate change in their financial risk assessment framework and possibly develop appropriate measures for directing capital to green investments. The incorporation of climate-related risks in risk assessment can help regulators and policymakers in the financial sector to take appropriate steps to mitigate this systemic risk and also incentivize green investments. SEBI and other financial regulators must set disclosure guidelines and governance frameworks to disclose climate change risk. There is a need for institutional framework and common taxonomy on green finance and a set of green standards on various economic activities. Better disclosure on climate change can help regulators and financial authorities make informed and appropriate policy and regulatory decisions to manage the risks emanating from climate change. The rating agencies must incorporate climate risk in credit risk modeling, which should incentivize the green sector and penalize carbon-intensive sectors.

Why does India need an integrated domestic Measurement and Reporting System for tracking Green Finance?

A systematic assessment to track current levels of investments would be the first step to gauge whether India is on track to achieve its set goals.

Effective, comprehensive, and nation-wide reporting of green finance flows will help to build trust with national and international investors.

The identification and measurement of existing sources of green finance offer numerous benefits: Identifying and tapping the right capital providers for green sectors; improving transparency and accountability of the Government's action plans on climate change; bringing better macro-level reporting on flows of green capital. The identification and assessment of means of financing will help in evaluating whether the right financial instruments are used to deploy capital in green sectors. The usage of finance can identify funding gaps in various green sectors that will help stakeholders, including policymakers, regulators, and investors, to take appropriate steps to bridge the financing gap.

Through the Lab, we have designed several financial instruments for the energy sector such as financing for low carbon auto-rickshaw, battery subscription facility for electric vehicles, and rooftop solar private sector financing facility. | DECEMBER ISSUE 2020

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IN CONVERSATION

"The pandemic has taught us a lot of things like the need of the hour is resilient infrastructure and a dependable power sector."

C Chaudhary COO, Amp Energy India

In an exclusive conversation with SolarQuarter INDIA, Mr.C. Chaudhary, Chief Operating Officer, Amp Energy, a renewable energy developer has briefed us on utility scale solar projects in India. His updates on recent technology and trends will help the readers understand the sector in greater detail..

How has Amp energy kept going during the ongoing pandemic? What have been some of the key learnings?

Covid-19 has created disruption across the globe and has affected businesses and industries. Renewables have demonstrated resilience to the pandemic and the impact of the economic shock generated has been somewhat cushioned. Amp has been able to sail through with initial disruption in construction activity due to the lockdown, we were able to quickly gear up and now construction is in full swing of course following all social distancing protocols. The pandemic has taught us a lot of things like the need of the hour is resilient infrastructure and a dependable power sector. This crisis could trigger the strongest momentum for power market reforms in the country. It has demonstrated that we need to work together to overcome any crisis situation and a steady, reliable power supply is high priority and significant progress is still needed

According to you, what are the current challenges and opportunities of the Solar Power Utility Sector In India?

How can the challenges be faced?

Large scale utility solar has been instrumental in driving India’s solar growth story riding on the world’s largest clean energy expansion programme. The government is serious about promoting and adopting renewable energy and has demonstrated that very well in the last decade.

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However, for the next level of growth, it has to overcome a few challenges. Some of these issues have been persistent over the years such as delays in land acquisition process, policy uncertainty, lack of coordination between central and state government but a few contractual issues have developed off late such as cancelation of bids, PPAs not getting signed timely, ISTS substations are either not identified or are under construction, inordinate payment delays, tariff re-negotiations, some state discoms curtailing RE despite them being ‘must run’ plants etc.

Now, these contradictions affect the ecosystem and hampers investor confidence impacting the economic attractiveness of the sector. The growth of solar has been mainly driven by support from government & foreign investors and we must provide comfort to the investors and take adequate measures to lower policy risks and boost investment.

Could you throw some light on how the solar industry is going to scale up in the near term?

The solar industry is definitely going to scale up further in the coming years with the government revising its target to 450GW of RE by 2030. But what is important to realise is that you must have your feet on the ground to get access to this massive energy dialogue. With the push for manufacturing towards creating an ecosystem, India has the potential to become a solar superpower with the right policies and framework in place. The states must be in complete alignment of the Centre’s plans and must aim for not just self- reliance but global dominance.

The government also needs to take adequate measures such as removal of imposition of SGD/ BCD on modules, international standard policy, and no red carpet conduct in terms of approval and regulatory policy, lowering curtailment and sufficient infrastructure to be developed for transmission of renewables.

How is Amp Energy planning to scale up its capacity in the near term? Please tell our readers about some of your upcoming projects.

Amp Energy India is well on track to double its capacity by 2021. We have built an industry leading team with a strong track record in line with our business strategy and have a unique capability to straddle Utility Scale RE projects, Power Markets, Battery Energy Storage and C&I RE projects in India and beyond.

Amp is one of India’s first truly balanced IPP supplying renewable power to C&I and utility customers. We have been instrumental in developing some of India’s largest Distributed generation projects for Skoda Volkswagen India Pvt Ltd, Tata Hitachi and L&T Metro Rail Hyderabad Ltd and are supplying power to customers across 8 sectors acting as a One Stop Shop for Energy for them.

Some of our upcoming solar capacity would be in Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Rajasthan and Haryana along with windsolar hybrids in Gujarat, Madhya Pradesh and a BESS project.

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IN CONVERSATION

"We intend to add another 200 to 300MW to our portfolio in next 5 to 6 months’ time and will be operating around 600 to 700Mw solar power plants in the next FY." GS Venkatesh Director & CEO, Avi Solar Energy Pvt. Ltd.

Please tell our readers in brief about the different services you provide.

Avi Solar Energy Pvt Limited was founded in 2010 with its headquarters in Bangalore and with a vision to contribute to Environment and Society by harvesting energy from sunlight.

It entered into solar O&M services as well as into solar EPC business in 2015 and in its last 5 years journey, Avi Solar has provided its O&M services to more than 2.2GW solar power plants ( both ground mounted and roof top) cumulatively , successfully executed 22+MW of EPC works and also provided its project management consultancy to 21MW Solar power plants.

GTM Research and SOLICHAMBA in their report Global Solar PV O&M 2017-2022: Markets, Services and Competitors, ranked Avi Solar as “ No. 3 Solar PV O&M Service Provider in the UtilityScale Segment in India” which itself is a testimony to Avi Solar’s technical and professional capability in this field.

Major customers of Avi Solar O&M Services for ground mounted & roof mounted projects are Renew Power , Shapoorji & Pallonji, Hero Future Energy, Oriano Power, Cleantech Solar, Cleanmax Solar, Berkeley Energy etc

How important is real monitoring of solar plants?

Could you explain your PV monitoring solutions offerings in brief?

What are some of the key advantages of having good quality maintenance systems? Can you tell us about your Operations and Maintenance services?

Good Quality Maintenance leads to Higher uptime, higher generation & better project ROI Longer equipment life and reduced OPEX Our O&M activities are system driven by annual and monthly O&M plan for each project with day to day maintenance activity is strictly driven by standardized checklist and SOP’s through mobile app.

Our O&M activities includes preventive , breakdown and predictive maintenance of the solar plant with battery limit of our service varying from switch yard within the solar power plant to the incomer bay of the interconnecting substation.

Please tell us about your major projects and future projects in the pipeline?

Currently we are providing our O&M services to around 400+ MWp solar power plants including both ground mounted and rooftop projects.

With many more projects in our pipeline, we intend to add another 200 to 300MW to our portfolio in next 5 to 6 months’ time and will be operating around 600 to 700Mw solar power plants in the next FY.

What are your plans for growth for the upcoming year 2021?

We will be achieving a portfolio size of around 500MWp by end of current FY and our portfolio size planning for FY 21-22 will be around 700Mwp in the current highly price sensitive market condition.

Highest priority is accorded to safety with continuous training of all our team on all safety aspects . We are enforcing strict implementation of all EHS guidelines of our company as well as our of customers to ensure safe work across all sites.

Real time monitoring of Solar power plants is a very critical aspect of O&M service which helps in improving plant performance as well as will help in optimization of manpower at site level leading cost optimization . Also real time monitoring coupled with AI & ML will help in predictive maintenance.

As Avi Solar is an independent O&M service provider, it uses the monitoring solutions already existing in its customer solar power plant. In whichever sites, effective monitoring solutions are not available, it recommends an IoT based SCADA system developed by its own subsidiary company, M/s EnerMAN Technologies.

We will be achieving a portfolio size of around 500MWp by end of current FY and our portfolio size planning for FY 2122 will be around 700Mwp in the current highly price sensitive market condition." | DECEMBER ISSUE 2020

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IN CONVERSATION

"As an energy solution provider with nuclear product qualification, Kehua has an excellent quality system and is highly recognized."

Sunny Xu CEO, Kehua Tech India

As the fastest growing inverter manufacturer, How do you increase brand recognition within the industry and outside of China?

In fact, Kehua is one of the inverter manufacturers who have the longest history in the market. Since its establishment in 1988, Kehua has over 32 years` dedication in power conversion technology which is the core tech in solar inverters. As one of the first several listed solar inverter companies in China from 2010, the current market cap of Kehua surpasses $1 billion US dollars and has over 3000 full-time employees.

As an energy solution provider with nuclear product qualification, Kehua has an excellent quality system and is highly recognized.

Kehua got an excellent evaluation from Dun & Bradstreet: D&B Rating: 5AFinancial Strength: 5A D&B EMMA Score: 3 Organization:4.9 Credit Health:4 Delivery:4.7 Quality Control:4.6 Productron:4.2 In the renewable energy industry, Kehua has shipped over 14GW solar inverters in the world. We devote to the “quality” which is seen as an important index.

On top of that, following the company’s strategy, we are carrying out an overseas brand promotion plan now and perform well in some markets, like in India, we got many awards and ranked NO.1 central inverter market share in Q1 2020, we keep ranking TOP10 inverter market share in Asia and is the fastest growing company.

Kehua will put much more resources into marketing actions that cover both online and offline activities. We have built connections with the most influential organizations in different countries. What’s more, numerous roadshows and regional promotion activities will be organized together with our local partners to further expand our brand reputation.

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Service is a point of great concern to the inverter industry. How does KEHUA provide service to customers?

The high quality and reliability products of Kehua have been highly recognized by customers. In the commitment to product quality, we also adhere to the customeroriented with quickly response service, Kehua has a completed 3A technical service system:

Kehua already had over 14GW PV and 700+MW ESS experience in many regions, we have completed many PV+ESS integration applications, the reliable solution had gained very high customer satisfaction and nowadays, PV+ESS is one of the core competitive advantages of Kehua.

Based on the deep understanding of the industry, plus the rich practices and experience, Kehua’s products and solutions will continue to solve the integrated PV and ESS technical issues, and play the important role and contribute its parts to the global renewable energy industry.

32 years of experience in power distribution solutions and product O&M Accumulation of maintenance practices for millions sets of equipment and systems 16 technical service centers 50 manufacturer technical service outlets nationwide and 20 overseas technical service outlets More than 500 engineers and O&M experts 24x7 service One-stop supply of spare parts to minimize rush repair/operation and maintenance time Now, Kehua has been serving more than 100 countries around the world. The core markets are equipped with dedicated service teams to fully support the needs of customers.

At the same time, Kehua adheres to the concept of common development with its local partners., we provide technical exchanges, seminars, webinars to train and qualify our local partners to ensure they have adequate product knowledge and capability to respond to the service needs of local customers including parts replacement .

The industry is concerned about technical issues around integrating PV with ESS. How does your product ensure a smooth integration?

As an energy service provider focusing on power electronics technology for 32 years, Kehua has profound technology accumulation and understanding of the industry. Our technical level ranks in the forefront of the market, and ranked No.1 ESS market share in China.

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PERSPECTIVE HOW THE PLI (PRODUCTION-LINKED INCENTIVE) SCHEME WILL HELP INDIA TO BE A SIGNIFICANT MANUFACTURING DESTINATION AND LOG INTO THE GLOBAL SUPPLY CHAIN?

The Production-Linked Incentives (PLI) scheme focuses on incentivising firms to grow fast. Some of these incentives are meant to help industries where India already has a comparative advantage, others for industries where India has the potential to become a world leader, and most importantly, the PLI scheme is for sectors where India has an uncomfortable dependence on Chinese imports.

The aim of the scheme is to provide a boost to the Indian manufacturing sector, promote exports and make India an integral part of the global supply chain.

Large imports of solar PV panels pose risks in supply-chain resilience and have strategic security challenges considering the electronic (hackable) nature of the value chain. A focused PLI scheme for solar PV modules will incentivize domestic and global players to build large-scale solar PV capacity in India and help India leapfrog in capturing the global value chains for solar PV manufacturing.

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AMOL ANAND Director, Loom Solar Pvt. Ltd.

How much is Module making capacity and Cells making capacity in India?

According to MNRE, India currently has 16 GW of annual solar module manufacturing capacity. However, only 9-10 GW of t he t ot al capacity is operational. The annual solar cell manufact uri ng capacity stands at 2.5 GW. Additionally, t he Cent re has recei ved requests from companies for setting up 20 GW of domest i c solar module and cell manufacturing capaci t y. Indi a has an ambi t i ous target of reaching 100GW of solar generat i on capaci t y by 2022.

How much Bn $ is import happening from the neighbouring country?

India has a huge demand for solar. The count ry i mport ed $2.16 billion worth of solar photovoltaic (PV) cells, panels, and modules i n 2018-19. However, India’s solar import s plunged by 83% i n Q2 2020.

The solar imports stood at $69 million i n Q2. Furt her, i mport s declined by 77% YoY, in Q3 to just ~$17 mi lli on. However, i mport s from China still accounted for about 88% of t ot al i mport s i n Q3. The slowdown in the imports is mainly due t o t he lockdown as a result of the COVID-19 pandemic as project development act i vi t y was halt ed due to labour and material shortages.

rising demand. In order to reduce thi s gap, t he government has come up with a production-linked incentive scheme t o grant i ncent i ves t o companies engaging in production. Indi a’ s MNRE recent ly announced production-linked incentives for solar panel and li t hi um bat t ery manufacturing companies. The subsi dy wi ll be avai lable t o Indi an as well as foreign companies manufacturi ng on Indi an soi l. The Indi an government plans to offer Rs 4,500 crore for solar modules and Rs 18,100 crore for batteries. The PLI scheme wi ll reward hi gh-effi ci ency and low-thermal-loss products as well as i ncent i vi ze local product i on.

The government has come out with the PLI scheme t o offer i ncent i ves to manufacturers in ten sectors, includi ng hi gh-effi ci ency solar module companies. The benefits are worth ₹ 1.97 t ri lli on. The PLI scheme wi ll also support domestic manufacturing, especi ally for bat t ery and solar photovoltaic cell manufacturing in Indi a. The government wi ll be working to triple the manufacturing capaci t y set t i ng up 4000 MW of solar cell manufacturing capacity in Indi a. The Cent re has also deci ded to provide additional incentives to manufact urers usi ng advanced technology.

What’s the advantage India will have over China if this succeeds and what were 3 major reasons because of which the cell] module factory was not established in India?

If the Production-Linked Incentive (PLI) Scheme for hi gh effi ci ency solar PV modules becomes a success, i t wi ll enhance Indi a’ s manufacturing capabilities and export s, maki ng t he count ry – Atmanirbhar Bharat. If India succeeds i n est abli shi ng large GW si ze solar factories in the country, it will be able t o put a st op t o t he large imports from China which sold solar goods wort h $1.3 bi lli on i n FY20 t o India. Moreover, China accounts for more t han 80% of t he market share of solar equipment in India. The PLI scheme wi ll also creat e more employment opportunities and reduce t he burden on t he forei gn exchequer.

To discourage solar imports from nei ghbouri ng count ri es especi ally China, the country will impose customs dut i es on solar panels t o t he tune of 40% and 25% on solar cells, as part of t he At mani rbhar Bharat or self-reliant India strategy.

China has been a multi-bagger of the boom i n t he solar i ndust ry. The country has been benefited greatly owi ng t o i t s economi es of scale, cheap prices and huge government support . Though India has set up a massive target of installing 100 GW of solar power by 2022, t he count ry still lacks a decent polysilicon manufact uri ng uni t whi ch i s t he basi c raw material for a solar cell. India lacks a suffi ci ent amount of R&D, specialization, and differentiation. Lack of core compet ence, innovation, and technology advancement s are t he mai n challenges for the Indian solar manufacturing indust ry.

Why was there a need to give incentives such as PLI – How much incentive amount government has proposed, how manufacturers will get it?

India is a fast-growing country with huge demands for power. Gi ven the rising level of air pollution and in order t o reduce i t s carbon footprint, the country is aggressively looki ng t owards clean energy sources like solar and wind energy. Gi ven i t s green credent i als and rapidly falling costs, the country quickly caught t he solar fever, however, it lacks sufficient manufacturi ng capaci t y t o cat er t o t hi s

India’s MNRE recently announced production-linked incentives for solar panel and lithium battery manufacturing companies. The subsidy will be available to Indian as well as foreign companies manufacturing on Indian soil." | DECEMBER ISSUE 2020

PG 16

VIKAS ARYA GM Solar Division, Jakson Group

With 37 GWp of installed solar capaci t y, t oday Indi a i s t he t hi rd fastest growing nation in Solar energy (aft er Chi na & t he US), demonstrating that power generation from sust ai nable energy sources is achievable. With the new power t ari ff, below Rs 2/uni t , i t also proves that Solar Power is cost effect i ve & wi ll be t he leadi ng technology amongst new power generat i on capabi li t i es for t he next decade. The annual demand of Solar Modules i n Indi a i s li kely t o be more than 20 GW for next 10 years.

However, despite this growth moment um and i ncreased demand, Indian Solar Manufacturing is still in t he nascent st age & st ruggli ng to survive the competition from Chinese Manufact urers. Module manufacturing capacities in India have remai ned underut i li zed i n the past. Cell supply is in shortage wi t h t he recent spurt i n demand of DCR Modules through Government Poli ci es. Thi s has result ed i n increased prices for DCR modules whi ch i s not i n t he growt h interest of the Solar sector.

This leads us to one very important quest i on - How can Solar Manufacturing in India become compet i t i ve & sust ai nable i n meeting the Indian market demand of superi or quali t y product s at competitive prices?

To address this issue, new PLI (Performance Li nked Incent i ve) schemes being introduced by the Government of Indi a for 10 sectors consists of “High Efficiency Solar PV Modules” as one of t he sectors identified for the Solar Indust ry. St at i ng hi s vi ews on t hi s scheme, Mr. Sundeep Gupta, Vice Chai rman & Managi ng Di rect or Jakson Group quoted “The PLI scheme wi ll fast t rack manufact uri ng in India, thus leading to the mission of our count ry bei ng self-reli ant – this is indeed the right step in the ri ght di rect i on. It will motivate industry to focus on innovation and wi ll help i ndust ry posi t i on i t self as the best alternative destination to Chi na from a supply chai n perspective.”

Under this scheme (to be implement ed t hrough MNRE/IREDA), incentives worth ₹ 4500 Crores will be provi ded t o manufact urers over a period of 5 years from commissi oni ng. It wi ll be provi ded based on achieving certain predefined paramet ers namely – new technologies , higher efficiency & bet t er t emperat ure coeffi ci ent for modules, manufacturing capacities, backward i nt egrat i on capabilities, local value addition and so fort h.

| DECEMBER ISSUE 2020

Although this step is in the right direct i on, t he quest i on st i ll li es on whether it will be sufficient to make solar manufact uri ng i n Indi a selfsustainable as the following limitations cont i nue t o persi st : Raw Material Availability Non availability of critical raw materi al i .e. i ngot s, wafers & li mi t ed cell capacity in the country increase our dependency on i mport s.

Even with increase in Module Manufact uri ng capaci t y, pri ces wi ll be controlled by Foreign Suppliers.

Technology Upgradation Last few quarters have seen new technologi es/ bi gger cell si zes/ bifacial emerging up rapidly making earli er t echnology and i nvest ment s unviable. Organizations need to have i n-house R&D capabi li t i es i n t he country, become leaders and not just followers of new t echnologi es.

Investments & Cost of Finance Downstream manufacturing (Ingots/ Wafers/ Cells) need huge i ni t i al investment. With higher cost of finance /rapi d t echnology upgradat i on, confidence in investors is limited as far as large i nvest ment s are concerned. Availability of funds at lower rat e of i nt erest should be provided.

Skilled Manpower Though India has a huge manpower base, i t lacks t he requi red ski lls t o take up specialised jobs. The need to revamp and upski ll i s pi vot al.

Reduction in Cost of Production Efficient use of all resources, availabi li t y of land, power & wat er for manufacturing processes at competi t i ve pri ces, solar manufact uri ng zones, etc., will help in reducing the cost of manufact uri ng.

With aim of achieving 100 GWp by 2022 & 300 GWp by 2030, we are on the verge of taking a fine leap in the growt h of Solar Power i n Indi a & becoming a major manufacturing dest i nat i on cat eri ng t o global requirements. This will help in not only boost i ng Indi an manufact uri ng, creating more employability but will also reduce t rade defi ci t significantly.

PG 17

DR. B.S.NEGI Adviser Ministry of New and Renewable Energy

India witnessed tremendous growth i n renewable power part i cularly SPV power in the last five years in its effort t o ensure 24x7 sust ai ned energy supply to its people linked wi t h cli mat e change mi t i gat i on.

This achievement is attributed to the government i ni t i at i ve i n 2015 to scale up deployment of renewable power t o a capaci t y of 175GW by 2022, which includes 100GW solar power, as follow up t o t he Paris Agreement, which was made on 30 t h November 2015 at COP21 of the UNFCCC. As a result, the share of RE i n t he t ot al installed generation capacity has increased from 6.47% i n 2015-16 to 23.5% in 2020-21, thereby attaining global posi t i on at number 4 i n renewable energy deployment.

Out of total installed renewable power generat i on capaci t y of 87 GW, solar has achieved cumulative 36 GW i nst alled capaci t y, whi ch is largely based on import of solar cells/SPV modules and i nvert ers.

For quality assurance, MNRE in 2017 brought out t echni cal regulation under BIS Act (Compulsory Regi st rat i on Order) for quali t y control of SPV Modules, Inverters and Bat t ery st orage syst ems used in solar photovoltaics power projects. The order was enforced i n April 2018. The regulation stipulates t hat t he above ment i oned products should conform to the speci fi ed Indi an St andards. As a result, more than 250 manufacturers from domest i c and overseas have obtained registration from BIS f or SPV modules t i ll now. Thi s i s a major step taken by MNRE towards quali t y cont rol i n SPV power projects in the country.

The abrupt eruption of Covid 19 pandemi c i n early 2020 and subsequent disruption due to lockdown gave devast at i ng experience of globalization, making everyone t urn t owards nat i onal in their orientation, and to reduce dependence on global supply chains for their needs. Effectively, we need t o develop and manufacture technologies/products i ndi genously for our needs.

from RE by 2030. In SPV, high efficiency wi t h manufact uri ng quali t y, reliability and warranty conditions are key element s for t he success of SPV power projects. Looking at global experi ence, huge i nvest ment on technology development and innovat i on have played a key role i n fast widespread deployment of SPV power across t he globe. The SPV technology is developing fast. Current ly, effi ci enci es of SPV modules i n the range of 20-22% have been report ed by t he lead manufact urers.

Atmanirbhar Bharat is an important st ep t aken by t he government of India to strengthen and augment manufact uri ng capabi li t i es and capacity in the country. For Solar PV, t he recent launch of t he Performance Linked Incentives (PLI) Scheme by t he Government of India for high efficiency SPV Module i s a great st ep t o boost domest i c manufacture of high efficiency SPV Modules i n Indi a. It gi ves ample opportunity to Indian SPV industry to i nvest on R&D for t echnology development and development of product i on t echnology scali ng up i t s manufacturing capacity of SPV Modules wi t h quali t y at global level.

Looking at the perceptible large market i n Indi a, export pot ent i al and t he rich experience, the industry has to gear up i t s effort s mobi li zi ng investment and collaboration with lead overseas manufact urers for development and manufacture of high effi ci ency advanced solar cells and modules. It would be advantageous i f t he product i on st art s from wafers with focus on higher efficiency wi t h i mproved t emperat ure coefficients. Ultimate goal should be si li ca t o module.

In addition, concurrent efforts are needed encouragi ng R&D for technology development in advanced hi gh effi ci ency solar cells and modules, SPV inverters and battery st orage syst ems wi t h quali t y and reliability at global level. Effectively, a robust poli cy wi t h an ecosyst em for support to R&D for technology development i nt egrat ed wi t h innovation and quality infrastructure i s needed for i ndi genous world class manufacture of SPV Modules for t he sust ai ned growt h of solar power for various applications in the count ry.

Recognizing the vast potential and the success i n SPV Power deployment, the government is aspiri ng t o achi eve 450 GW capaci t y

PAINTAMILSELVAN M S Sales Manager - BESS Product Solutions, L&T Constructions

AtmaNirbhar Bharat initiative by the Government of Indi a i s a t i mely decision on building core manufacturi ng capabi li t i es not only for self-consumption but to become an export hub for global market s.

PLI scheme under this initiative is the fi nest st ep forward t o pri ori t i ze manufacturing investments across 10 key sect ors. The approved financial outlay of INR 18100 Crores (~2.4 Bn USD) and INR 4500 Crores respectively for Advanced Chemi cal Cell (ACC) battery and High efficiency Solar PV Modules i s a game changer move in supporting India’s ambi t i ous t arget of havi ng 450 GW Renewable Energy by 2030. It also sends Indi a’ s i nt ent t o become a manufacturing hub of advanced RE t echnologi es. As per Indian Energy Storage roadmap released by NITI Aayog, bat t ery storage installed capacity shall reach 2000 gi gawat t -hours (GWh) i n next 10 years. ACC battery supports fast growi ng Elect ri c Vehi cle (EV) and Battery Energy Storage Syst em (BESS) based market s.

BESS system helps in stabilizing the nat i onal gri d under growi ng share of Renewable Energy (RE) technologi es i n any count ry’ s energy mix. Grid integration challenges of RE ari se mai nly due t o transient output, intermittency, and demand supply mi smat ch. BESS

| DECEMBER ISSUE 2020

stored with excess RE energy helps in respondi ng fast er i n comparison to conventional storage met hods for appli cat i ons of frequency regulation, peak shifting and RE smoot heni ng. St at i onary BESS in containerized design form enables plug n play implementation of technology. 10% of Indi an Energy st orage installed capacity by 2032 shall be towards such gri d support systems. Globally Grid support stationary bat t ery st orage i ndust ry i s predicted to grow with CAGR of 15% - 20% duri ng t hi s decade.

Currently developed nations like Nort h Ameri ca and Aust rali a are leading the race in BESS implementat i on. The penet rat i on of t he Electric Vehicle (EV) market is a drivi ng fact or for elect ri ci t y demand growth as well as battery technology research. Thi s provi des a unique opportunity for India to invest i n research and manufact uri ng infrastructure. Renewables Business Uni t of Larsen & Toubro has invested in one of its kind Container Int egrat i on Faci li t y of BESS inline to national interest of export promot i on. It also enables plent y of export opportunities to many MSMEs beyond Bat t ery Manufacturer. This facility situated on t he out ski rt s of Chennai i s positioned to cater Global markets. It i s equi pped wi t h world class testing equipment to ensure quality compli ance i nli ne t o IEC/IEEE standards and offer reliable Make in Indi a product s t o global customers.

PG 18

PERSPECTIVE

TELL US HOW SUSTAINABLE IS THE NEW RECORD LOW TARIFF OF RS 2/UNIT?

Falling solar equipment prices and increased participation of foreign and private equity-backed firms have dragged down the solar tariff in the country to a record low of Rs 2 per unit. This fall comes at a time when Indian solar power developers are facing import restrictions. As per Industry watchers, having an assured buyer for power was a key driver to the discovery of record low tariff. IDFC Securities said another reason for such low solar prices is that developers are looking to deploy “bi-facial modules and single axis trackers”. Let’s find out more about this.

SUNIL BADESRA

SUSHIL SARAWGI

Director, Sungrow India

Director, Kor Energy India Pvt Ltd.

Indian solar industry witnessed many lowest peaks t hi s year one after another in various reverse aucti ons. It st art ed wi t h Rs 2.36/uni t and then reached to Rs 2/unit followed by Rs 1.99/uni t i n t he lat est tender. The solar tariff has continuously been on downward t rend over the years due to multiple factors. And t here are also many ot her global tenders which have received si mi lar or less t ari ff.

With increasing project sizes, economy of scale and bet t er fi nanci ng coupled with regulatory clarity on Change i n Law have allowed t he developers to go aggressive to win t he proj ect s i n Indi a. Secondly the projects in Rajasthan and Gujarat have key advant ages of bet t er radiation to get higher generation. These benefi t s are equally augmented with rapidly improving technologi es i n modules and inverters to reduce the cost and improve t he yi eld wi t h opt i mi zed design. As bifacial modules combined wi t h t rackers are li kely t o increase the Capacity Utilisation Fact or (CUF) by a great ext ent , many projects are likely to bet on this combi nat i on i n fut ure t o reach such an aggressive number.

Sungrow’ s both central and string invert ers are well sui t ed t o integrate with latest module technologi es t o faci li t at e t he cust omers achieving such numbers while ensuri ng t he desi red ret urn.

These tariffs are highly competitive, yet feasi ble i n few st at es i f t he offtake risk is minimised. This will be sust ai nable i n fut ure, only i f t he critical and sensitive parameters remai n wi t hi n t hei r calculat ed li mi t s and the projects stay isolated from any t ype of poli cy or regulat ory or taxation setbacks.

Solar Tariffs have been falling consist ent ly si nce t he last many years and in the last 4 years it has fallen by almost 35 percent . In Year 2020 we have seen Solar Tariffs in auct i on falli ng down t o Rs 2 per unit in NTPC Auction and Rs 1.99 Per Uni t i n GUVNL Auct i on. The reason for Solar Tariffs falling to such low levels are may and include The PPA assurance available i n bot h above t enders reducing the risk associated and leadi ng t o loweri ng of ret urn expectations by Investors.

Module Prices have been falling down consi st ent ly and avai labi li t y of Modules with superior technology and hi gher effi ci ency leadi ng to reduction in cost of generation. Avai labi li t y of bet t er t echnology modules like Mono Perc and Bifacial coupled wi t h t racki ng solut i ons leading to further betterment in generat i on and reduct i on i n cost per unit generated. Developers are now usi ng superi or operat i ons and maintenance systems like robotic and aut omat i c cleani ng syst ems for better guaranteed generations.

With time Developers have optimized t he plant desi gns t o generat e more energy from available technology leadi ng t o furt her optimization of capital deployed.

The availability of finance at reduced cost from i nt ernat i onal financiers have also contributed to aggressi ve pri ce bi ddi ng by developers. In India NTPC has also aggressi ve plans t o be a dominant player in solar and also rai sed and can furt her rai se capi t al at a much reduced cost. This aggressi ve bi ddi ng by NTPC i s goi ng to remain in future tenders also leading t o ot her bi dders also working on matching it.

As Most of above factors are going to remai n i n effect i n near fut ure we can see the price in future solar auct i ons also t o remai n low i n India. But the effect of certain factors i s st i ll left t o be seen li ke t he imposition of safeguard duty in April 2022 and complexi t i es i n land acquisitions and costs associated wi t h t he same.

| DECEMBER ISSUE 2020

PG 19

PERSPECTIVE

WHAT ARE THE EMERGING

FINANCIAL MODELS FOR NEW SOLAR PROJECTS FOR DEVELOPERS TO MAXIMIZE RETURNS?

India’s target of achieving 175 GW of renewable energy might appear ambitious, but it is crucial as it will have a positive impact on the country’s economic growth, energy security and the fight against climate change. Financing is emerging as the key challenge to this vision, slowing down the pace of growth. The most critical issue facing India’s financing framework is the lack of innovative financing options that will offer larger sums at lower interest rates and for longer durations. Overall, sound financing will boost the number and size of the projects, ultimately translating to accelerated renewable energy growth. There are various types of solar power project finance models with different levels of complexity.

Let’s see what our experts have to say.

| DECEMBER ISSUE 2020

PG 20

MANOJ GUPTA, VP-Solar and Waste to Energy Business, Fortum India Pvt Ltd

India has set itself a target of installing 175 GW of renewable energy (RE) capacity, including 100 GW from solar power and 60 GW from wind power, by the year 2022. A working paper 1 by the Asian Development Bank Institute in 2018 had estimated that an investment of around $189 billion would be required to achieve it.

More recently, Prime Minister Narendra Modi extended India’ s RE target even further to 450 GW by the year 2030. It is obvious that huge investments will be needed, both domestic and foreign.

Proj ect financing, therefore, becomes even more important for India’ s RE story than before.

There is growing interest among investors in India’ s RE sector, which has been traditionally financed by concessional loans from multilateral agencies such as the Asian Development Bank and the World Bank. However, in recent years, many banking and nonbanking institutions have begun financing RE proj ects, even as the Indian government continues to play its part in mobilizing funds.

However, there are many countries in the tropical belt that are limited not only in their budgetary capabilities but also in their access to funding from multilateral development banks for energy proj ects. The latter is owing to their low credit worthiness, as determined by rating agencies. Many such countries are in debt and in need of loan tenors, long moratorium, and flexible repayment structures. The situation calls for identifying and developing new agencies and mechanisms for RE proj ect financing.

We are already making headway in this direction. There is more to domestic financing now than traditional debt and equity instruments. Banks are increasingly using bonds as a source of debt financing for solar proj ects. Some proj ect developers have taken to issuing bonds themselves to raise capital – an arrangement that enables them to refinance their existing loans at a lower cost. Mezzanine financing, although it accounts for only a small percentage of investments as compared to other instruments, is being used by a large number of proj ect developers for bridge financing and improving proj ect returns.

As we look ahead, there are some other ways, proposed by industry experts, in which proj ect financing can be enabled and accelerated in the country. One of them involves the creation of a proj ectsourcing platform that aggregates solar proj ects, uses their combined size to secure debt financing, and establishes standards for proj ect documentation. Or solar asset owners and energy access companies could explore securitization to refinance their existing proj ect portfolio at a lower cost. Because securities can be traded at unit sizes much smaller than whole proj ects, this approach would allow the asset owners to tap a wider base of investors.

Developers can also look to infrastructure investment trusts for lowcost capital. As operational proj ects present lower risk than yet-tobegin proj ects, developers can attract investors by offering shares in their operational proj ects. The capital thus freed from the sale of shares can be used for new proj ects. Dollar-or-Euro-denominated loans also present an attractive option for developers, owing to their lower interest rates as compared to Indian rupee loans. If there were to be a facility that offers a low hedging cost for such loans against the risk of currency devaluation, it would allow Indian proj ect developers to access a vast debt pool in countries such as the US, Japan, or EU member states.

Financiers, on their part, can consider the option of a “first loss protection guarantee” to cover potential losses. However, seeing as it could encourage the financier or the developer to act in riskier ways than they otherwise would, this instrument is more prudent if its coverage is limited and subj ect to very specific and carefully crafted conditions.

India has got off to a good start towards its RE targets, and there is still a long way to go. Now is the time to be j udicious and innovative, both at once, because the proj ect financing models that we develop and adopt will determine, to a considerable extent, the pace of our progress in the years ahead.

The advantage of these instruments is that they can be customized to meet the respective needs of each proj ect developer.

Over time, with banks gaining better understanding of the business models, the associated risks, and the expected returns of RE proj ects, much of the proj ect financing in India has started happening on a non-recourse or partial recourse basis.

Meanwhile, we are also seeing the rise of secondary financing, with some developers carrying the risk while the proj ect is being developed, and then selling off the proj ect to secondary investors for a premium once it is completed. This model isn’ t without its merits, as it allows them to free their capital from current proj ects and invest it in new proj ects. Even though this is a risky and time consuming model but very popular nowadays in India as well as many emerging markets.

| DECEMBER ISSUE 2020

PG 21

VAMSI GADDAM Joint Managing Director, Visaka Industries Limited (Innovator Of ATUM, The World’s First Integrated Solar Roof)

Solar power has become a trend in renewable energy, and i t i s not surprising given the abundance of sunshi ne avai lable i n vari ous parts of the world. However, what is really dri vi ng t he adopt i on of solar power as an alternate source of energy i s t he i mprovement i n storage capacities and the fact that, solar power generat i on and distribution, is finally making financial sense.

India remains one of the best bets for solar power projects. This is not only because of the country’s burgeoning population whose needs are not being met by conventional power sources, but also because, of its location and access to good sunlight, it has immense potential to generate solar energy."

Solar energy is free but to harness it for commerci al and i ndust ri al purposes is a capital-intensive exerci se whi ch can prove t o be qui t e a hurdle for end-users or EPC Contract ors. Therefore, havi ng a viable financial model plays a major role i n dri vi ng t he expansi on of solar energy. To better understand the i mport ance of havi ng vi able financial models for renewables, it is i mport ant t o underst and bot h the scale of the projects as well as the urgency of bri ngi ng renewable energy into the mainstream energy i nfrast ruct ure of t he country. The Government of India plays a key role i n mobi li zi ng funds for the renewable energy sector. The Nat i onal Clean Energy and Environmental Fund (NCEEF) uses proceeds from t he Coal Cess

to loan to banks which are further loaned t o renewable energy projects at concessional rates of interest . The Indi an Renewable Energy Development Agency (IREDA) also uses funds from international agencies such as the World Bank t o provi de support at reduced rates of interest. “Green Bonds,” are i ncreasi ngly becomi ng popular as a source of funding green energy proj ect s.

There are essentially three financial models whi ch are wi dely prevalent – Capital Expenditure Model, Operat i onal Expendi t ure Model, and the Loan Model. However, t here i s a fourt h model – t he Crowdfunding model – which is begi nni ng t o get adopt ed i n vari ous countries. In the Capital Expenditure Model, t he cost of i nst alli ng t he solar power plant is completely borne by t he consumer who owns the assets and can claim depreciation on i t .

In the Operational Expenditure Model, somet i mes called t he Bui ld, Operate, Own, Transfer model, the invest or and not t he consumer owns the power plant. The investor and t he consumer get i nt o a power purchase agreement, for the durat i on of t he PPA, post whi ch the ownership of the power plant is transferred t o t he consumer.

The Loan model is a relatively new model whi ch follows t he normal loan route of the client putting up 30-40% of t he t ot al proj ect cost with the balance being loaned by banks and fi nanci al i nst i t ut i ons.

The client pays back the loan in instalment s.

A fourth model, the crowdfunding model, i s slowly but surely gaining acceptance albeit in developed nat i ons. Crowdfundi ng brings together site owners (who have t he surface area t o i nst all solar panels) and end-consumers (who want t o use solar power but do not have access to surface areas where solar panels can be installed). Investors could use this model t o develop solar power projects as they have a ready market of consumers and t he proj ect can be viable much earlier than what convent i on di ct at es.

India remains one of the best bets for solar power proj ect s. Thi s i s not only because of the country’s burgeoni ng populat i on whose needs are not being met by conventi onal power sources, but also because, of its location and access t o good sunli ght , i t has i mmense potential to generate solar energy. What i s requi red are large investments, a favourable tax structure whi ch promot es t he use of clean and green energy sources, reduce t he reli ance on a debt equity financing model by exploring t he capi t al market s and promoting innovative financial models.

What is really driving the adoption of solar power as an alternate source of energy is the improvement in storage capacities and the fact that, solar power generation and distribution, is finally making financial sense."

| DECEMBER ISSUE 2020

PG 22

SUSHEEM PANDEY Head Solar, Vish Wind Infrastrukture

Structural factors are driving down solar tariffs in India

Improvements in PV panel designs and cost s, lower fi nanci ng cost s, and state-specific sectors such as the locat i on’ s solar pot ent i al and certain waivers have driven the decline i n Indi an solar t ari ffs. t he continuous decline in Indian solar power t ari ffs si nce t he st art of FY 2020-21 due to a mix of structural and st at e-speci fi c fact ors. Solar power tariffs declined to INR2.36/kWh i n June-July 2020 and furt her to INR2.0/kWh in November 2020. Thi s also put s a pressure on revenues of developers which necessi t at es new fi nanci al models for new solar projects to maximize returns.

Financial model basically involves two aspects: 1. The sources of cheaper finance so that cost of finance i s mi ni mum 2. Desi gn and modelling of the project in such a way as t o maxi mi ze t he effi ci ency and generation keeping the CAPEX and OPEX at t he lowest .

Financing aspects in modelling: market participants have become good at assessing the key risks in the sect or: Poli cy makers are mitigating off-take risks, banks and invest ors are more accurat ely assessing and pricing asset and market ri sks, and developers are decoupling project quality from compet i t i ve t ari ffs. As a result , i t i s easier for Indian utility-scale solar proj ect s t o be fi nanced.

Solar financing is becoming more diverse: Domestic financing has now moved beyond the plain vanilla debt and equi t y i nst rument s.

The use of bonds and mezzanine financing has become more popular for solar projects. These instruments are often tailored t o the specific needs of project developers and reduce t he overall cost of capital. Indian commercial banks and non-banki ng fi nanci al companies now recognize solar as an i mport ant and at t ract i ve infrastructure asset class. The government has begun t ackli ng offtaker payment default risk through new poli ci es.

As solar has evolved from a fringe infrast ruct ure asset class t o a mainstream option for domestic publi c and pri vat e sect or banks i n India, non-recourse financing has become more common. Thi s derisks the developer and he can deploy t he lat est and sui t able technology to boost generation even i f i t adds sli ght ly t o t he CAPEX. In a way the risk taking epitite of developers goes up by nonrecourse financing. Experienced proj ect ed developers are payi ng greater heed to project quality, leveragi ng new fi nanci ng opportunities and improving plant desi gn t o lower proj ect ri sk. As such the slowdown in industrial activi t i es has result ed i n surplus liquidity available with banks and financi al i nst i t ut i ons. They are keen to lend to solar and developers are t aki ng t hat advant age. On the equity side too, capital is readily avai lable for solar proj ect s.

Domestic corporations like Tata Power, Adani , Acme, Shapoorj i Pallonji and Hero Future Energies are i ncreasi ng t hei r i nvest ment s.

In addition, investment is growing from i nt ernat i onal players li ke Fortum of Norway, SoftBank of Japan, Engi e and EDF of France, Enel of Italy and FRV of Spain.

SOLARQUARTER | DECEMBER ISSUE 2020

The use of bifacial modules with trackers could increase CUF by around 4%.

Additionally, the panel costs declined. The AC:DC ratio for most solar plants has inched upwards to around 1.5x, resulting in a higher CUF and addressing degradation over time.

The lower interest rates have benefitt ed hi gh rat ed players who have sound access to financial markets and can t herefore enj oy low interest rates. Entities that are backed by forei gn parent s are also looking at exploiting foreign markets for proj ect debt t i e-ups, gi ven the prevailing low interest rates and hedgi ng cost s.

Furthermore, given the decline in the ri sk-free rat e, t he ret urn expectations have lowered by 0.5%-1%. Addi t i onally, t he fundi ng patterns adopted by these players ensure a capi t al churn and reduced refinancing risk. Once the const ruct i on phase i s over, t he financing pattern typically sees a shi ft wi t h proj ect fundi ng changi ng from a debt:equity ratio of 75:25 to 80:20.

Design of operative parameters to maxi mi ze revenue: Developers have improved project desi gn, dat a analyt i cs and proj ect monitoring resulting in greater energy generat i on. Proj ect st andards have been improved by using better cabli ng, racki ng syst ems and automated cleaning systems. The more experi enced developers are now acutely aware of execution quali t y i ssues, prot ect i ng t hei r reputation with lenders to ensure att ract i ve lendi ng condi t i ons.

The use of bifacial modules with trackers could i ncrease CUF by around 4%. Additionally, the panel cost s decli ned. The AC:DC rat i o for most solar plants has inched upwards t o around 1.5x, result i ng i n a higher CUF and addressing degradat i on over t i me.

PG 23

PERSPECTIVE

HOW CAN ADVANCED DATA ANALYTICS HELP

COST REDUCTION AND IMPROVE OPERATION & MAINTENANCE OF LARGE SCALE SOLAR PLANTS? TO MAXIMIZE THE VALUE OF AN ASSET, IT IS HELPFUL TO PREDICT AS ACCURATELY AS POSSIBLE ITS BEHAVIOR, PRODUCTION, EVENTS, RISK OF FAILURE, AND REMAINING LIFETIME. ACCURATE ESTIMATES OF SOLAR ENERGY PRODUCTION AND INSIGHTS INTO SOLAR EQUIPMENT PERFORMANCE HELP SOLAR PLANT OWNERS AND OPERATORS OPTIMIZE INSPECTIONS, SCHEDULE MAINTENANCE, IMPROVE THE OPERATIONAL PERFORMANCE OF THEIR EQUIPMENT, AND MAXIMIZE THE ENVIRONMENTAL BENEFIT OF THEIR INVESTMENTS IN RENEWABLE ENERGY. HOWEVER, DUE TO THE UNCERTAINTIES INHERENT IN THE UNPREDICTABLE NATURE OF RENEWABLE RESOURCES, MANY CHALLENGES ARE ASSOCIATED WITH ESTIMATION OF SOLAR POWER PRODUCTION AND DETECTION OF PERFORMANCE ISSUES.

BY APPLYING DATA SCIENCE TECHNIQUES DATA PREDICTIONS OF SOLAR INVERTER AND PLANT PRODUCTION CAN BE IMPROVED. MACHINE LEARNING MODELS CAN BE APPLIED TO CORRECTLY CLASSIFY MALFUNCTION CAUSES FOR SOLAR INVERTERS. REGIONAL WEATHER DATA CAN BE USED TO ESTIMATE (AND POTENTIALLY PREDICT) SOLAR ENERGY PRODUCTION. LET’S FIND OUT MORE ABOUT HOW ADVANCED DATA ANALYTICS HELP REDUCE COST AND IMPROVE PLANT O&M.

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GANAPATHI RAMASUBRAMANIAN, Head- O&M( Renewables), L&T Construction (PT&D)

O&M Digitalization

benefits of predictive maintenance i nclude reduci ng plant losses and optimising plant performances. Thi s enables asset operat ors t o make decisions in an effective manner for performi ng t hei r dai ly operations and maintenance activities, i mprovi ng t he performance of the portfolio and anticipating failures of t he devi ces composi ng these complex systems. Emerging t echnologi es such as t he IoT, robotics, and Machine Learning enable t o remot ely moni t or asset s, unearth insights such as underperformance, equi pment behavi oural pattern recognition, anomalies predi ct i on t o i mprove operat i onal performance of plants and ROI.

In a post-subsidy era and as assets increase i n si ze, pressure on t he lifecycle cost of utility-scale solar has i nt ensi fi ed. From development through to operations and mai nt enance (O&M), i t i s widely accepted that the industry needs t o embrace di gi t ali sat i on and technology to increase efficiency and aut omat i on across all stages of the asset’s life. One of the most effect i ve ways forward, from an economic point of view, i nvolves i mprovi ng t he act ual performance, and reducing the operat i onal cost s, of exi st i ng renewable power plants. An effecti ve st rat egy for achi evi ng t hi s goal is the application of digitali sat i on t echni ques – i ncludi ng artificial intelligence (AI), data mining, drone operat i on and robot i cs – to convert the immense amount of dat a t hat t hese plant s generat e into information that can be used t o make opt i mi sed operat i onal decisions.

Cloud based data storage

Various Maintenance techniques

As the solar sector becomes increasi ngly globali sed, wi t h servi ce expectations requiring cost reduct i on and revenue opt i mi sat i on, asset managers are beginning to rely on advanced di gi t al asset management platforms that enable effi ci ent and effect i ve management of diverse solar portfoli os.

Operational and Maintenance (O&M) cost s of t he PV plant s can have a big impact on ROI. Predict i ve mai nt enance t hrough dat a mining consists in retrieving vast amount s of dat a from one or more sources and combining them wit h t he ai m of underst andi ng ongoing anomalies and predicting t he fut ure behavi our, whi le conventional Preventive maintenance i n place. Bi g dat a analyt i cs add value at any stage of asset management : fault det ect i on, fault diagnosis and finally optimisation t hrough recommendat i ons. Thi s can be substantiated with many case st udi es, where problems unearthed and rectified. One such exerci se on i nvert er behavi oural pattern w.r.t. guaranteed values, t hrough remot e moni t ori ng & analytics, identified the anomaly and i mproved t he asset s operational performance. AI proposes advanced diagnostic through knowledge-based models, unsupervised and supervised learni ng met hods offer di fferent possibilities (e.g. neural networks) usi ng st at i st i cal approaches. The

NIRANKUSH PRASAD Project Head (Solar), Greencube Energies Pvt Ltd

“Data is the new oil.” — Clive Humby As the world is battling with adverse cli mat e-change condi t i ons and other environmental crises Renewable Energy i s t he Hope for a better future. Technology Geniuses are geari ng up t o i nvent bet t er ways to build robust solutions in t he fi eld of renewable energy.

Technologies such as Analytics and Bi g Dat a are here t o ext ract maximum benefits from renewable energy sect ors so i t can operat e more efficiently. Driven by the power of dat a and analysi s, solar plants can be fully optimized to funct i on bet t er i f capt ured dat a i s smartly used.

Energy analytics can be categorised i nt o basi c analyt i cs and advanced analytics. Basic analytics wi ll let us know only about how efficiently a plant is running and how much a plant i s produci ng as we forecasted with the help of typical key performance i ndi cat ors (KPIS) like performance index, avai labi li t y, capaci t y fact or and performance ratio. If we want to know about t he root cause of any underperforming issues, we have to use Advanced analyt i cs wi t h

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The key to an effective management of renewable asset s and portfolios consists in an easily accessi ble plat form, bui lt wi t h open architecture, which enables users to recei ve, st ore and process dat a from different kinds of on-site devices and dat a from ot her vari et i es of external platforms. Cloud comput i ng serves t hi s purpose by managing a large amount of data comi ng from on-si t e devi ces, and by collecting and sending information t o and from t he gri d, relayi ng operational dispatching and contract management dat a i n real t i me over the internet.

Lifecycle asset management can optimise Sol ar Projects

Way forward- Data Mining & AI The potential of data mining algorithms t o opt i mi se performance and reduce operational costs is widely demonst rat ed and i s consi st ent , robust and processed within the proper syst em model framework.

The impact of this approach to managi ng renewable port foli os goes beyond the immediate benefit of fully exploi t i ng t he capaci t y of t he plant, and further facilitates an overall i ncrease of profi t s (vi a a decrease in levelised cost of energy, LCOE), and t he mi t i gat i on of certain operational risks. This will ult i mat ely at t ract more i nvest ment s – both for renewable projects and gri d i nfrast ruct ure –t hat wi ll t ri gger new capacity deployment and a higher penet rat i on of renewables i n the energy mix.

the help of Machines, Artificial int elli gence (AI), Sophi st i cat ed algorithms allows us to get detailed loss charact eri zat i on analysi s.

A Big solar plant requires complex ground-level i nfrast ruct ure wi t h enormous amounts of solar panel i nst allat i ons i ncludi ng sensi t i ve equipment, sensors, wires, etc. Usually, such vast i nst allat i on of plants Brings a lot of operational and mai nt enance challenges. The ground level maintenance of these asset s i s t i me-consumi ng and challenging. To reduce downtime, compani es can use Advanced Analytics for performing preventive and predi ct i ve mai nt enance, through historical Data.

For example, IBM’ s Hybrid Renewable Energy Forecast i ng (HyREF) uses a combination of Advanced dat a, vi rt ual Weat her dat a & Modelling and predictive analysis, to predi ct t he vari able resources for Solar and Wind Energy product i ons. About 10% of energy generation increased with Grid integrat i on. By whi ch 14,000 Homes can be powered without any additional cost for i nfrast ruct ure. Usi ng Advanced Analytics, solar companies can bet t er underst and t hei r consumer’ s Demands and needs. Advanced Dat a Analyt i cs needed to revolutionize the renewable energy sect or.

“The goal of data analytics in the field of Solar Energy Syst em i s t o BECOME AWARE OF UNAWARENESS and t he well-known fact s and unknown facts which objectively aff ect t he worki ng of Solar Energy System. - Nirankush Prasad”

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DR KEYUR GANDHI Co-founder and CTO Apollo Energy Analytics

Renewable energy companies all over t he world now recogni ze t he importance of investing in data analyt i cs, such as solar di gi t al t wi ns, AI/ML based analytical engines, and IoT plat forms for keepi ng up with ever growing energy demands and t herefore i dent i fyi ng downtime, efficiency losses, which result s i n si gni fi cant energy losses in the power plant. According t o a report by t he Int ernat i onal Energy Agency, since 2018, global i nvest ment i n di gi t al power infrastructure and software has increased by more t han 30% annually. Newer and more efficient t echnologi es i n wi nd, solar on energy storage have played a very cruci al role i n t hi s growt h, most of which come from the solar industry.

As the renewable energy sector stri ves t o achi eve t ransparency i n the health and performance of plant asset s, di gi t i zat i on can make better use of existing grid infrastruct ure, reduce t he need for spare capacity, and greatly reduce dependency on renewable energy. It allows the company to make decisions based on reli able evi dence from the analysis of solar data at its plant s, whi le prepari ng for asset downtime and missed/breached SLAs. In addi t i on, i t can more easi ly connect digital assets, provide real-t i me vi si bi li t y of asset performance, and use a solar digital t wi n syst em t o opt i mi ze asset utilization.

analytics, all the above challenges are bei ng addressed. All we need is a highly scalable and smart model coupled wi t h several layers of AI/ML based automation. Using AI/ML based solut i ons, we can easi ly detect reasons behind energy loss, effi ci ency loss, anomaly detection as well as predict failures. Thi s helps i n get t i ng real-t i me O&M and Asset Management decisions for i ncreased effi ci ency and reduced downtime.

AI, ML and DL are becoming the cornerst ones of our planned enhancements to our solar digi t al t wi n based performance intelligence and health analytics solut i on. We are det ermi ned t o revolutionize the solar sector by helpi ng t hem opt i mi se t hei r solar assets & portfolio to streamline O&M, benchmark asset ’ s performance, effectively manage SLAs, i ncrease yi eld & i mprove overall plant’ s performance. We have used advanced dat a analyt i cs, AI/ML and Deep Learning models to assi st O&M t eams reduce t hei r cost by digitizing their power plants and provi di ng t hem wi t h ‘ Root Cause Analysis’ and predicting anomali es i n t hei r syst ems. The patented digital twin solution further provi des act i onable i nsi ght s on performance and health of their transformers, i nvert ers, PV modules and more to enable them in predi ct i ng fai lures, pre-empt i ve and predictive maintenance to increase plant ’ s overall effi ci ency.

Asset downtime and under performance have always been a challenge in the renewable industry. O&M and Asset Management teams need predictive maintenance as agai nst scheduled maintenance. For improved efficiency of t he asset s and t he plant , i t is essential to track the component s and t hei r i mpact on overall asset efficiency. Predicting failure i s far more valuable i n t hi s context than a sudden failure that mi ght result i n st oppage i n operations. Similarly, predictive mai nt enance also helps save t he solar power plants a fortune compared t o a sudden fai lure. Usi ng advanced data

SOMASHEKAR TH Managing Director, EnerMAN Technologies Pvt Ltd

If you look into the technicalities of Large-Scale Solar Plant s, i t ’ s not too complex. Except that you are deali ng wi t h ext remely Hi gh voltage & very large currents; Rest i s about t he volume of components used in the plants. Thousands of PV Panels, Ki lomet res of cables, numerous cable joints or termi nat i ons are t he fact ors t hat add to the complexity of operating and managi ng large solar power plants.

Technicians can always be used t o i nspect t he panels, check currents at each string, but given the magni t ude of work i nvolved, i t is not viable or may not be effective. That ’ s where dat a analyt i cs comes to play. Data from solar PV plant s can be collect ed from combiner boxes (string current), Invert ers, Swi t chyards (Trafo/HT panels), Weather Stations & several ot her sensors whi ch can gi ve insights on the performance of the plant .

The term Advanced Analytics is oft en used for t he aut omat i c exploration and depiction of meaningful pat t erns t hat may be found from the data acquired by PV plant s. The focus of Advanced Analytics is more on forecasting using t he dat a t o fi nd t he t rends t o determine what is likely to happen i n t he fut ure. Basi c Analyt i cs provides a summary of data whereas; Advanced Analyt i cs goes a step ahead in providing a deeper knowledge about dat a and helps in granular data analysis.

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Here is a real case study of 50X1MW Invert ers. (50MW-Ut i li t y Plant A.P) The Inverter performance analysi s showed a huge devi at i on between the best & worst performers. When t he si t e t eam root caused the problem, it was found t hat many of t he st ri ngs were down, hence the DC load on the i nvert er was low causi ng t hi s variation. Note: This particular plant di d not have st ri ng moni t ori ng SCADA. When all the strings were rest ored t here was a subst ant i al increase in generation which of course i s huge savi ngs t o t he customer.

Imagine, an O&M manager gets a weekly report clearly i ndi cat i ng t he name of a particular Inverter that is underperformi ng.

Also, if that report clearly mentions the reason and gives suggestions on what action needs to be taken. The actions to be taken might be module cleaning, String restoration, fuse failure or some ground fault issues. As the PV plants get older, Advanced data analytics tools will be of great help. Ask your SCADA vendor if this feature is available!

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PRODUCT FEATURE ENERMAN IS NOW WORKING WITH PARTNERS IN US, AUSTRALIA, POLAND, AFRICA TO DEPLOY ITS ET-SOL REMOTE MONITORING SCADA SOLUTION THE GLOBAL PV PLANTS. Did you know that the efficiency of power generation in Solar PV plants is largely influenced by failures in a fraction of the PV modules, equipment problems mainly Inverters, combiner boxes & transformers ? A reduction in power generation loss is a significant point with respect to return of investment. It is very important to minimize these losses through the quick detection of problems and analyzing the data.

You don’ t need a complex state of the art SCADA system to monitor the plant. You need a simple reliable system data logger that collects data from all the active equipment in the solar PV plant and pushes on to the local server or the Cloud.

ETi-SOL is one such IIOT logger based remote monitoring & control system, designed by EnerMAN technologies. Multi Plant View Homepage gives a comprehensive view of the health of the complete portfolio, while the Plant overview page shows all the KPIs of the PV plant.

Unlike PLC based SCADA, ETi-SOL does not have any limitations on the number of tags being monitored. You can read & display an unlimited number of parameters from all the equipments.

ETi-SOL can be integrated with third party SCADA using REST APIs or any other standard data exchange protocols like OPC / FTP. 5This means - if you have already installed a SCADA and that doesn’ t have remote access feature or your SCADA is nonfunctional, we can repair/upgrade and enable IOT based remote monitoring. EnerMAN’ s Made In India- data logger ETi-Log interfaces with all makes of Inverters, SMB’ s & other serial interface based equipment in PV plants.

ETi-SOL is deployed across India and is backed with a regional service support network.

EnerMAN’ s experience in designing these monitoring systems comes from the team which was part of its parent company Avi Solar , which has several Giga Watts of OMS experience. The team has hands-on knowledge on a number of SCADA systems and has great insights on what works & what doesn’ t!

EnerMAN is now working with partners in US, Australia, Poland, Africa to deploy its ET-SOL remote monitoring SCADA solution for the global PV plants.

Write to sales@enerman. in to fix your PV Plant SCADA issues. If you are about to set up a new plant, call us at +91 70229 49911to find out how much you can save by installing ETi-Log IIT based SCADA for your PV plant.

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PERSPECTIVE

IS NOW THE RIGHT TIME

FOR SMART METERS IN INDIA? HOW WILL SMART METERING INFRASTRUCTURE HELP THE DISTRESSED POWER SECTOR?

In times of COVID-19, smart meters can be highly beneficial to DISCOMs as they enable remote meter reading and bill generation along with remote connection and disconnection as per the government’s guidelines. Smart meters allow seamless online billing process, real time tracking of electricity usage, and reduction of billing errors. Additionally, smart meters enable time of day metering and thus contribute to the integration of renewable power in India.The Government of India too has shown considerable focus on smart metering and Energy Efficiency Services Ltd.’s (EESL) Smart Meter National Programme aims to retrofit 250 million conventional meters with smart variants.

VINIT MISHRA Director, Power & Utilities (Digital), Ernst & Young LLP

Globally, the Power sector is ushering in Digital Transition by undertaking Digital Initiatives leveraging Digital Disruptions to upscale the sector' s overall performance. Indian Discom in the last 2 decades have seen many ambitious drives of the Ministry of Power using Digital to focus on improvement of Discom’ s operational & financial health by targeting different performance indicators. Smart Metering is one of those key solutions which would help in resolving many of the perennial problem Sector was struggling with. Smart meters are a smart choice – for both the consumers and Discom. Globally, Smart meters as the latest technical upgradation in the distribution system has provided benefits to consumers & utilities.

Ushering Power Sector to the digital transition, the ongoing COVID-19 crisis have shown that the power sector needs a serious revamp, and time has come to adopt technology enabled solutions like smart meters to become part of the solution.

Largely, Indian Utilities constantly struggle with challenges like high AT&C losses, ARR Gaps, unavailability of real-time data to monitor and most importantly, real time tracking of electricity usage for consumers.

Smart Meter indeed provides solutions to all these problems and helps in a big way to improve Discom’ s financial & commercial health. Smart Metering in pre-paid mode will be a boon for Discoms financial health.

Smart meters are much needed and have other widespread benefits that will be felt across the entire power value chain.

Every reform requires a push to be a success. Current unprecedented Covid-19 crisis indeed helped Discom to realize the true value of Digital Transformation. Though Smart Meter journey has already been embarked with few Discom but the momentum which required for its success and manifestation of benefits to all stakeholders was largely missing so far. As Hon’ ble Minister for Power, Sh. R. K. Singh had announced to make it mandatory for all States to change all conventional meters to the more advanced prepaid smart meter within next 3 years,

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with this initiative, India is ushering in the biggest digital transition, witnessed by the Industry. This magnanimous approach comes on the backbone of the success that smart meters have seen in states like UP. As per recent article published by Energy Efficiency Services Limited (EESL)’ s SPV, IntelliSmart - the agency responsible for the implementation of smart meters in UP, Haryana, Bihar, Discom had good results with an average increase in billing of nearly 25%. In the New Delhi Municipal Council (NDMC) area of the national capital, with a billing efficiency of over 99%, revenue has gone up by ₹ 500 (~$7) per month per meter. The increase in revenue can help DISCOMs clear their dues to generators on time, as well.

Aside from bringing in additional revenue to DISCOMs, smart meters can also help consumers monitor and regulate their consumption so they can save money on power bills. Smart meters have far-reaching benefits within the entire power sector.

Globally, Smart Metering has manifested its true value with benefits delivered to Discom & consumers, which makes a stronger case for adoption of Smart Meter technologies in developing countries. Smart meter market in North America is mature. Both USA and Canada are early adopters of smart meters. Leading countries like Italy, Sweden, Finland and the Netherlands have already hit the 80% target and expect 95%+ penetration by 2020. While France, Spain, Greece and Denmark rollouts are proceeding at a steady pace and they are expected to reach the 80% target by 2020.

Asia Pacific region has also embarked on Smart Metering Journey. China, the leading country in the APAC Smart Meter market, back in 2011, began the deployment of smart electricity meters, installed over 348 million smart meters.

Every Smart Meter rollout engagement requires huge investment, and that has been the key challenge in taking off Smart Meter rollout in most of the cash strapped Discom of India. OPEX business model provides a solution for Smart Meter rollout as Discom are considering embarking Smart Meter journey without any initial investment upfront, and able to increase billing efficiency and thus increased revenue and making payments to OPEX partner in line with monthly rental. With such a trailblazer business model, it is easy for Discom to get approval from the State regulator for Smart Meter rollout in the State, which was still a dream for most of the cash strapped Discom of India. Industry is also reciprocating in positive for the OPEX model. Going forward, most of the Smart Meter rollout will likely be mostly on OPEX, with very few on Capex or hybrid. Smart Meter is indeed a reform for Power Discom to improve operational & financial health.

PG 28

ARUN KUMAR MISHRA Director, NSGM-PMU

Smart Meter & AMI – A Tool to alleviate present and future DISCOM challenges Measurements are crucial to know as is state. The power system is no exception. Ever since the Smart Meters were available there has been a debate on why DISCOM spend Rs 80-120 for measuring consumption when billing costs are one tenth in some pockets and average consumer bills are half of that cost. However it’ s important to understand that Smart Meters (SM) and AMI isn’ t about billing.

The traditional Grid measures Generation and Network nodes. However Renewable infested Smart Grids needs more visibility. This was aptly reflected in the Survey conducted by International Smart Grid Action Network (ISGAN).

When leading utility CEOs flagged SM as the Technology of first Choice for System Efficiency Improvement, Enabling New Product/ Service/ Markets, Customer Choice & Participation as well as one amongst top 5 Technologies for Reliability improvements and reducing O&M Costs.

The Variable Renewable Energy (VRE) Sources bring challanges to Grid Operations. The robust National Grid ensures minor to moderate impact on aggregate level. However operation. patterns in RE states - AP, TN, GJ, KA, TS and RJ is determined by VRE. The VRE needs flexibility which, when met by thermal, defeats the very purpose of “Greening the Grid”. The demand flexibility is most sensible as Negawatt is more than a watt. However to leverage it reliably for Grid Energy mismatch (not power balance), DISCOMs need to identify consumer groups which can be partnered, in terms of load pattern, incentive level to shift load and of course build relationships. The Smart Meters data analysis enables both identifying, on boarding as well as administering these transparently.

There is a good assessment of AMI technology maturity through 11 smart grid pilot projects, some within the DISCOM environment. Simultaneously NSGM conceptualised to test Pilot covering 1000 consumers based on Pay as you Use model at Ajmer in association with USAID to build confidence that Smart Meters can pay for itself. This paved the way for rollout of SM by Energy Efficiency Services Ltd. (EESL). In 2018 EESL started bulk procurement for SM through demand aggregation for price discovery. As of Nov’ 2020, EESL has succeeded in deploying close to 1. 5 million SM. Enthuse with it’ s PAYS (Pay as you save) model it now has a subsidiary IntelliSmart for ambitious rolling out 250 Million SM announced

by Hon Finance Minister in her budget speech. As of now SM has a footprint in more than 10 utilities covering 56 towns and around 10 million smart meters are under deployment https: //www. nsgm. gov. in/en/content/sm-stats.

The year 2020 has brought many lessons including crucial insight gained with SM serving as a hand off tool for revenue management and consumer interface. MPPKVVCL, which has successfully deployed more than 100000 SM in part of Indore didn’ t face any disruption in MBC and has seen all round improvement in performance. It has enabled, among other things, a penalty and reward mechanism for maintaining power factor and a successful implementation of customer facing regulatory compliance at no extra cost. Speaking of Regulatory burden, Government of India, MoP has recently released Electricity (Rights of Consumers) Rules in Dec’ 2020 setting limits and penalties for supply interruptions as well as quality of supply.

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The Consumption measurement goes a long way in building DISCOM consumers partnership for Demand Side flexibility, transparent monitoring and compliance of regulatory obligations and will be most critical for ever increasing VRE. It’ s time DISCOMS realize their potential through AMI as it' s the technology that will differentiate the winners from also run. NSGM released Model Standard Bidding Document for enabling DISCOMs in Appointment of AMI Service Provider based on OPEX model which can be accessed https: //www. nsgm. gov. in/en/amisp-sbd.

The Variable Renewable Energy (VRE) Sources bring challanges to Grid Operations. The robust National Grid ensures minor to moderate impact on aggregate level.

However operation. patterns in RE states - AP, TN, GJ, KA, TS and RJ is determined by VRE.."

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K N A T

K N I H T

DECEMBER ISSUE 2020

$231 MILLION ADB LOAN TO HELP INCREASE SUPPLY OF CLEAN ENERGY IN INDIA The Asi an Development Bank (ADB) has approved a $231 mi lli on loan to construct the Lower Kopi li Hydroelectri c Power (LKHEP) plant i n Central Assam, Indi a. Thi s loan i s the thi rd and largest tranche of the $300 mi lli on Assam Power Sector Investment Program approved by ADB i n 2014. The proj ect has so far upgraded the 70-megawatt (MW) Lakwa gas proj ect and i mproved di stri buti on networks i n the state. ADB i s commi tted to achi evi ng a prosperous, i nclusi ve, resi li ent, and sustai nable Asi a and the Paci fi c, whi le sustai ni ng i ts efforts to eradi cate extreme poverty.

Establi shed i n 1966, i t i s owned by 68 members - 49 from the regi on.

RENEWABLE ENERGY PLATFORM AYANA HITS $721 MILLION IN FUNDING AS CDC, NIIF AND GGEF AGREE TO INJECT FURTHER CAPITAL CDC Group, the UK’ s development fi nance i nsti tuti on and i mpact i nvestor, Nati onal Investment and Infrastructure Fund (NIIF), and EverSource Capi tal managed Green Growth Equi ty Fund (GGEF) announced addi ti onal equi ty fundi ng of $70 mi lli on / £52 mi lli on, $284 mi lli on / £212 mi lli on and $36 mi lli on /£27 mi lli on respecti vely i n Ayana Renewable Power (Ayana), a leadi ng Indi an renewable energy platform. The proposed transacti on envi sages NIIF to become the maj ori ty shareholder i n Ayana. The commi tment i s subj ect to fi nal approval processes.

INCREASING COMPETITION IN INDIA’S INTRA-STATE TRANSMISSION SECTOR WILL DRIVE RENEWABLES PROGRESS SAYS IEEFA A new IEEFA report recommends i ncreasi ng competi ti on i n the development of i ntra-state transmi ssi on i nfrastructure, to speed up deployment of renewable energy i n Indi a. “Intra-state transmi ssi on networks wi ll be key for evacuati on of power as we transi ti on to a sustai nable energy economy. Yet i ntra-state transmi ssi on i s the weakest li nk i n the gri d. ” Most of Indi a’ s renewable energy generati on capaci ty i s connected to state transmi ssi on uti li ti es (STUs) so the effi ci ency and reli abi li ty of i ntra-state transmi ssi on networks wi ll be key for evacuati on of power.

However, equi ty i nvestor returns expectati ons rose from around 14 per cent i n the fi rst half of 2019 to 16-17 per cent over the second half of 2019 and the fi rst half of 2020. The hi gher ri sk returns expectati ons are a reflecti on of hei ghtened ri sk percepti ons stemmi ng from poli cy and market uncertai nty over potenti al contract renegoti ati on by off-takers and the potenti al i mposi ti on or extensi on of duti es on solar PV i mports, further exacerbated by supply chai n uncertai nti es caused by COVID-19 and delays i n the si gni ng of power purchase agreements (PPA) i n 2020.

CLIMATE RESILIENCE OF TRANSPORT, TELECOM AND POWER SECTOR TOP PRIORITY FOR INDIA: DG, CDRI Gi vi ng an overvi ew of CDRI’ s ongoi ng efforts, Mr Sandeep Poundri k, Di rector General, Coali ti on for Di saster Resi li ent Infrastructure sai d, “We have launched a study to enhance the resi li ence of the power sector i n Odi sha based on analysi s of cyclone Fani . We are assessi ng ai rports that have been affected adversely and those that have successfully managed the ri sk of extreme events. ” He added that transport, telecom and power sector are the top three sectors whi ch the CDRI i s studyi ng i n Indi a and these studi es wi ll be extrapolated to benefi t stakeholders and communi ti es whi ch face si mi lar ri sks. The CDRI, whi ch currently has 18 countri es and 4 multi -lateral organi sati ons as members, was launched by Pri me Mi ni ster Modi at the UN Cli mate Acti on Summi t i n 2019.

GLOBAL ELECTRICITY DEMAND TO REBOUND MODESTLY IN 2021 SAYS IEA After experi enci ng i ts bi ggest decli ne i n decades, global electri ci ty demand i s expected to rebound modestly next year, led by growth i n Chi na, Indi a and other emergi ng economi es, accordi ng to a new report by the Internati onal Energy Agency. The hi stori c shock of the Covi d-19 cri si s i s set to result i n a 2% decli ne i n global electri ci ty demand i n 2020, accordi ng to the IEA’ s fi rst ever Electri ci ty Market Report. Wi th the recovery of the world economy i n 2021, electri ci ty demand i s forecast to grow by around 3%. That would be si gni fi cantly weaker than the rebound i n demand of over 7% i n 2010, the year followi ng the global fi nanci al cri si s. Chi na wi ll be the only maj or economy to see hi gher electri ci ty demand i n 2020. However, i ts expected growth of around 2% i s well below i ts recent average of 6. 5%. Other bi g electri ci ty consumers i ncludi ng the Uni ted States, Indi a, Europe, Japan, Korea and Southeast Asi a are all set to experi ence decli nes for the year as a whole.

AFTER ATTRACTING A RECORD $32 BILLION FROM ABROAD IN 2019, CLEAN ENERGY IN EMERGING MARKETS ENDURES A ROUGH 2020 As 2019 came to a close, the outlook for renewable energy growth i n developi ng economi es was excepti onally bri ght. Powergenerati ng capaci ty from solar plants such as photovoltai c proj ects reached 325 gi gawatts (GW), up from j ust 1GW a decade earli er, accordi ng to new fi ndi ngs from research fi rm BloombergNEF (BNEF). Wi nd i nvestment hi t an all-ti me annual hi gh, wi th $89 bi lli on deployed to bui ld proj ects i n 30 emergi ng markets, both onshore and offshore. Poweri ng the growth was the fundamental costcompeti ti veness of these clean technologi es compared to thei r fossi l-fuel ri vals, whi ch forei gn i nvestors duly noti ced. Total forei gn di rect i nvestment (FDI) i n support of renewables set a new record at $32 bi lli on i n 2019, up from a previ ous hi gh of $24 bi lli on i n 2018.

The vast maj ori ty – 84% – of the 2019 total came from i nternati onal proj ect developers, uti li ti es, commerci al banks and other pri vate sources.

POWER MARKET UPDATE FOR NOVEMBER 2020: IEX The Indi an Energy Exchange traded electri ci ty volume of 6164 MU i n November’ 20 regi steri ng a si gni fi cant 61% YoY growth. Accordi ng to the data publi shed by NLDC, the nati onal peak demand i n November saw an i ncrease of 3. 2% YoY whi le the energy consumpti on regi stered 3. 15% YoY growth. The si gni fi cant growth i n the electri ci ty trade volume at IEX despi te a moderate i ncrease i n consumpti on and peak demand i s a clear reflecti on that the di stri buti on uti li ti es as well as the open access consumers have a greater preference for competi ti ve and effi ci ent power procurement through the Exchange market.

COMPANY FEATURE

LONGi WINS RETC "HIGH ACHIEVERS" AWARD FOR OUTSTANDING MODULE PERFORMANCE The US Renewable Energy Testing Center (RETC) has released its "Photovoltaic Module Index Report” (PVMI) for 2020. Having won a "High Achievers" award in 2019, LONGi has once again carried off the award for outstanding performance following comprehensive evaluation of global photovoltaic modules by RETC. LONGi’ s performance in three indicators of reliability, performance and quality identified it as one of only three companies to achieve the award.

The company also became the only module manufacturer to perform well in all 8 individual tests, underlining the high reliability and excellent performance of its monocrystalline modules.

Being awarded as overall “High Achiever” and demonstrating solid top performance on all 8 indicators are good testament to LONGi’ s consistent philosophy of delivering reliable products to customers. As the world’ s leading solar technology company, LONGi focuses on product reliability, from design to production, providing customers with reliable and valueadded photovoltaic modules. Module design starts with theoretical simulation using relevant optical, electrical and mechanical models.

Module power, efficiency, energy yield and reliability will all be considered before design is finalized; For module BOM selection, the company has always maintained a highly cautious approach, ensuring long-term product reliability. In addition, LONGi uses Ga doping to control mono PERC module LID, and has also optimized the hydrogen passivation process to mitigate LeTID.

Figure 3: Fundamental of LONGi products: comprehensive approach ensuring high reliability

The PVMI provides a high-level overview of relevant tests carried out by RETC within reliability, performance and quality indicators, followed by a sampling of test data to recognize high performers and showcase high achievement in manufacturing.

To characterize reliability, the report presents performance distribution data based on a series of tests, including DH2000 HF30 TC600, DML, UV and PID196h. For the performance category, it presents data characterizing module conversion efficiency, PVUSA Test Conditions (PTC) ratings*, Pvsyst simulation (PAN file) and LID. In regards to quality indicators, the results of Thresher Test qualification protocols are listed, exceeding minimum requirements.

，

（

，

）：

*PVUSA Test Conditions PTC An elevated cell temperature of 45°C, an ambient temperature of 22°C, and a wind speed of 1 meter per second *PTC rating is related to a module’ s temperature coefficient of power, its nominal operating cell temperature (NOCT) and aperture area.

Figure 1

： performance distribution data for module reliability

Meanwhile, to ensure module reliability, LONGi goes beyond standard testing requirements, establishing a variety of differentiated testing methods based on the results of well-known research institutions and third-party experts. As for the production process, highly automated equipment not only improves efficiency, but also helps ensure production stability. A comprehensive quality control system guarantees product excellence.

LONGi focuses on product reliability, from design to production, providing customers with reliable and value-added photovoltaic modules."

About LONGi LONGi leads the solar PV industry to new heights with its product innovations and optimized power-cost ratio with breakthrough monocrystalline technologies. The company supplies more than 30GW of high-efficiency solar wafers and modules worldwide each year, about a quarter of global market demand. LONGi is recognized as the world’ s most valuable solar technology company with the highest market value.

Innovation and sustainable development are two of the company’ s core values.

Learn More: https: //en. longi-solar. com/

Figure 2

| DECEMBER ISSUE 2020

： An overview of RETC 8 individual indicators

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DECEMBER ISSUE 2020

POLICY DEBRIEF

CENTRAL: POLICY UPDATES MNRE ISSUES GUIDELINES IMPLEMENTATION OF PHASE – II OF ROOFTOP SOLAR PROGRAMME Mi ni stry of New and Renewable (MNRE) Gui deli nes on i mplementati on of Phase – II of Gri d Connected Rooftop Solar Programme for achi evi ng 40 GW capaci ty from Rooftop Solar by the year 2022. Ai m and Obj ecti ves of Phase-II of Gri d Connected Rooftop Solar Programme i s a. To promote gri d connected RTS i n all consumer segments, vi z. , resi denti al, i nsti tuti onal, soci al, Govt. , commerci al, i ndustri al etc. b. To bri ng DISCOMs at forefront as key dri vers for rapi d deployment of RTS. c. To create awareness, capaci ty bui ldi ng, human resource development, etc. d. To promote sustai nable busi ness models. e. To create addi ti onal RTS capaci ty of 38000 MW i n the country by 31. 12. 2022 out of whi ch a capaci ty of 4000 MW i n resi denti al sector wi th Central Fi nanci al Assi stance and 34000 MW i n other sectors (i . e. , Soci al, Government, educati onal, PSUs, Statutory /Autonomous bodi es, Pri vate Commerci al, Industri al Sectors etc. ) by sui tably i ncenti vi zi ng DISCOMs and f. To promote domesti c manufacturi ng of solar cells and modules.

THE UNION GOVERNMENT ANNOUNCES THE PROMULGATION OF “ELECTRICITY (RIGHTS OF CONSUMERS) RULES, 2020”, EMPOWERS THE CONSUMERS ACROSS INDIA The Union Ministry of Power has promulgated rules laying down the rights of power consumers in the country. While issuing these rules via Press Conference, Shri R.K.Singh, the Union Minister of State (Independent Charge) for Power and New & Renewable Energy, said, “These rules shall empower the consumers of electricity and added that these Rules emanate from the conviction that the power systems exist to serve the consumers and the consumers have rights to get the reliable services and quality electricity.” He said that Distribution Companies across the country are monopolies – whether government or private – and the consumer has no alternative – therefore it was necessary that the consumers’ rights be laid down in Rules and a system for enforcement of these rights be put in place. “This is what the rules provide for”, Shri Singh said.

“These rules are also an important step towards furthering the ease of doing business across the country. Implementation of these Rules shall ensure that new electricity connections, refunds and other services are given in a time bound manner. Wilful disregard to consumer rights will result in levying penalties on service providers.” He said that this is one of the major initiatives and yet another step by the Union Government to put consumers in the centre-stage of public utility services. The Rules will benefit about 30 crores existing and the prospective consumers in the country. Stressing upon the need for awareness of all consumers especially in rural areas/villages, he said, States and DISCOMs are being advised to provide wide publicity to these highly consumer friendly Rules of the Government.

INDIA APPROVES INR 6700 CR PROJECT FOR NORTH EASTERN REGION POWER SYSTEM IMPROVEMENT PROJECT The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has approved the Revised Cost Estimate (RCE) of North Eastern Region Power System Improvement Project (NERPSIP) at an estimated cost of Rs. 6,700 crore. This is a major step towards economic development of North Eastern Region through strengthening of Intra – State Transmission and Distribution systems.

The Scheme was initially approved in December 2014 as a Central Sector Plan Scheme of Ministry of Power and is being funded with the assistance of World Bank fund and by the Government of India through the Budget support of Ministry of Power on 50:50 basis except for the capacity building component for Rs 89 crore, which will be entirely funded by the Government of India.

MNRE ISSUES GUIDELINES IMPLEMENTATION OF PHASE – II OF ROOFTOP SOLAR PROGRAMME Ministry of New and Renewable (MNRE) Guidelines on implementation of Phase – II of Grid Connected Rooftop Solar Programme for achieving 40 GW capacity from Rooftop Solar by the year 2022. Aim and Objectives of Phase-II of Grid Connected Rooftop Solar Programme is a.

To promote grid connected RTS in all consumer segments, viz., residential, institutional, social, Govt., commercial, industrial etc. b. To bring DISCOMs at forefront as key drivers for rapid deployment of RTS. c. To create awareness, capacity building, human resource development, etc. d. To promote sustainable business models. e. To create additional RTS capacity of 38000 MW in the country by 31.12.2022 out of which a capacity of 4000 MW in residential sector with Central Financial Assistance and 34000 MW in other sectors (i.e., Social, Government, educational, PSUs, Statutory /Autonomous bodies, Private Commercial, Industrial Sectors etc.) by suitably incentivizing DISCOMs and f. To promote domestic manufacturing of solar cells and modules.

STATE: POLICY UPDATES ADB TO LEND INDIA $300 MILLION FOR UTTAR PRADESH’S POWER DISTRIBUTION NETWORK UPGRADE The Asian Development Bank (ADB) and the Government of India today signed a $300 million loan to upgrade rural power distribution networks to provide reliable electricity supply to consumers in the state of Uttar Pradesh. The signatories to the tranche 1 loan for Uttar Pradesh Power Distribution Network Rehabilitation Project were Dr. C. S. Mohapatra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance who signed for the Government of India, and Mr. Takeo Konishi, Country Director of ADB’s India Resident Mission who signed for ADB. “The project will establish separate feeders for electricity supply to agriculture and residential consumers to promote better rationing and utilization of unmetered power; strengthen financial management of the state power distribution entity and improve bill collection in rural areas through community engagement involving the women’s self-help groups,” said Mr. Konishi.

REGULATORY UPDATES CERC ISSUES DETAILS OF ASSETS SUBMISSION Central Electricity Regulatory recently issued details of assets submission pertaining to Generating and Transmission Companies through CERC SAUDAMINI e-Assets Module (Beta Version). The eAssets module (beta version) of SAUDAMINI has been launched w.e.f.

1st December, 2020 in order to facilitate the generating and transmission companies to submit information pertaining to their generating and transmission assets.

COMPANY FEATURE SMALL STEPS ON THE ROAD TO BECOMING A LEADING PIONEER

Kurt Krannich founded Krannich Solar in 1995 with the pure problemsolving idea based on practice, not theory. The family-owned company has 25 years of purely distribution experience in the Solar industry. During this time it has achieved consistent, sustainable, and exponential growth.

Krannich Solar is awarded as Europe’s “Top PV Supplier 2020” by EUPD Research. It is today the world’s most trusted global solar distributor. The venture is having a direct presence in 24 countries with 500 plus employees across the globe. Being a pioneer brand in the domain, Krannich Solar has always been the name synonymous with the solar distribution that has been far ahead of the times. It offers a wide range of revolutionary PV products for residential, commercial and industrial sectors.

The company envisions to plant seeds of 100% renewable energy. In India, it sees a huge potential for PV installation in the South.

Krannich has set sights firmly on delivering residential, commercial and utility projects in every region of the country without leaving any locality untouched. Within a year it opened 4 new warehouses taking the total to 6 warehouses in the country.

It has grown massively with a team of 500 plus employees worldwide.

It strategizes to grow organically by enhancing its set verticals and taping untapped potential markets across the globe. This will ensure its qualitative expertise worldwide.

Krannich portfolio comprises solar modules, inverters, mounting systems, storage devices, accessories as well as the latest selection of exclusive products for e-mobility. Its Indian portfolio includes highquality top brands like GoodWe, SolarEdge, Fronius, Fimer, Sofar, and SMA in inverters and Axitec, Luxor, Trina, Solarium, and JA Solar in modules.

Everything that is adopted in the Krannich portfolio is tested carefully beforehand. This means it not only buys the high quality and effective

| DECEMBER ISSUE 2020

PV products but also has random samples undergo strict quality testing. The quality requirements are ensured by independent third parties.

Krannich Solar not only just supplies products but delivers a remarkable experience. It conducts product training workshops, provides project assistance, technical support, and has the best after sales service. The free project consultation, support to small EPCs with project design, inspecting the suitability of roof for a system, solar generation report, and complete system design makes Krannich the first choice to every installer.

Krannich Solar has a very flexible and friendly work culture. There is no traditional hierarchy system. Krannich welcomes the ideas and suggestions of all its team members. Employees at Krannich enjoy their work due to being open-minded and the freedom of new ways of working.

2020 is the most iconic year we all have witnessed. Despite all ups down in the industry, 2020 proved as a year of development for Krannich in terms of revenue and operations. Krannich Solar is focusing on residential as well as C&I projects and will also supply in tenders like PGVCL, GEDA and RRECL, etc.

In the future, Krannich will continue to grow with its strong team.

2021 is the beginning of a new chapter, Krannich will reduce carbon footprints and contribute to building a better sustainable place for coming generations.

SANDEEP BANODIYA Director – Sales, Krannich Solar

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INSIGHTS

The Need of the Hour

ENERGY MANAGEMENT SYSTEMS(EMS) FOR INDUSTRY 4.0

NEERAJ CHAWLA Managing Director, Winnerspitch Energy Pvt

Ltd.

IoT based EMS for Industry 4.0 - Is it Productivity Enhancement or focus towards Revenue Increase or Environmental Contribution or Incentivisation to growth?

Industry 4.0 - is no Magic word - key is to align and help meet norms of the “New Normal”.

QUESTION IS WHAT IS “NEW NORMAL” ?

“HIGHER PRODUCTIVITY BETTER MARGINS LOWER COSTS” SOUNDS FAMILIAR - YES INDEED IT’S A WAY TO DO BETTER WITH LIMITED RESOURCES WHICH HAS ALWAYS BEEN THE MAIN THOUGHT PROCESS BEHIND EVERY SUCCESSFUL BUSINESS. SO WHAT’S “NEW” AND THE ANSWER IS “IT’S THE WAY OF HOW?”.

INDUSTRY 4.0 Energy Management Solution a must for monitoring and managing a Digital Supply Chain and Smart Manufacturing creating a clear business case for prediction of energy costs, revenue, solving optimisation problems leading to Productivity enhancement for functional enhancement and better organisation management. Using IoT Energy Management Systems is the way to meet our goals. A lot of claims around IoT platforms availability is very misleading. Most of the mechanics of such tools are working in an isolated decentralised manner. As a recall organisations moved from decentralised approach to process driven approach integrating Basic processes along with SCM. As always technology has been the backbone to a matured way of doing business- the way of how technology drives the business towards Business Case focused drivers has been the force to adopt to techniques for better decision making. Historically in-centivisation to output (production based incentive) was considered a role play towards higher production-better rewards, Finished Goods packing numbers would

SOLARQUARTER | DECEMBER ISSUE 2020

determine additional payouts for Staff, alongside techniques of ERP process driven for better managed organisation were adopted together with BI/DSS tools.

However these techniques are ever evolving and today IoT has become the prime way to do reporting and consolidation. Can this alone deliver the business case of Bettering margins creating better environmental focus ever or bettering the Revenue with higher margins?

IoT should be treated as a wrap around Industry 4.0 focusing on KRA -KPI of People managing the functional aspects.

So what is IoT EMS - a centralised solution Providing a single face/tool for Monitoring and Control of various parameters in a building for all utilities, integration with Fire & life safety systems, to offer precision control, automation, preventive maintenance/corrective maintenance, safety lockouts, energy usages-savings and advanced information management systems to enable take corrective actions – pre and post the events.

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KRA-KPI BASED DASHBOARD IoT should be treated as a wrap around Industry 4.0 focusing on KRA -KPI of People managing the functional aspects.

What are these drivers and how we can make better decisions with these drivers. Organisation should adopt to control KRA/KPI creating a continuous improvement loop.

Key result areas (KRAs) broadly define the job profile for the employee and enable them to have better clarity of their role. KRAs should be welldefined, quantifiable, and easy to measure. It also helps employees to align their role with that of the organisation as a strategic factor either internal to the organization or external, where strong positive results must be realized for the organization to achieve its strategic goal(s), and therefore, move toward realizing the organization's longer term vision of success.

KPI’s are defined measurable indicators benchmarks to monitoring and improvement They can be broadly defined under categories like Strategical, Tactical, Operations overall ensuring Costs, Performance, service, deliveries, asset utilisation, monitoring effectively ensuring governance and success across resources (Man to Machine) The answer lies within the question itself - self introspection viz. need to create KRA (Key Result Areas) and KPI(Key Performance Indicators) in such a manner that they are monitored along with processes of functional areas/by department by individuals and should be controlled in a cyclic never ending manner Audit, Plan-Manage, Optimize-Process & Control with ever improving benchmarks as optimisations standards.

EXAMPLES OF DASHBOARDS:

WHAT BENEFITS TO EXPECT : EFFICIENCY & COST SAVINGS Monitor and Control processes and industrial applications Greater automation Predictive Analytics for reducing Operating Expense Enables Statutory Compliance & AUDIT, PLAN-MANAGE, OPTIMIZE-PROCESS & CONTROL

Safety Energy savings

SUMMARY:

As a summary organisations need to jump forward to fast track progress especially in current times where unprecedented events created huge gaps in money pockets. Adopt to processes and align to Industry 4.0 via IoT EMS and accelerate growth and enhance productivity across Man and Machine to better individual and company revenues

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Alerts and Notifications for operational health AI driven business insights for distributed sites Optimised distribution network

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COMPANY FEATURE PRODUCT FEATURE

"FOX HAS BROUGHT TO MARKET AN EXCITING RANGE OF GRID-TIED INVERTERS OFFERING UNRIVALLED PERFORMANCE AND EFFICIENCY." Fox is a subsidiary of Tsingshan Group, a Fortune 500 company with annual sales revenues in 2019 of 37. 6 billion USD. It is the world’ s largest stainless steel manufacturer and operates the world’ s largest nickel mining and production hub in Indonesia, and now, the company is aggressively stepping into position for the energy transition with its investment in Fox, a new company specialising in the development, production, and distribution of distributed generation products and solutions for the residential PV and ESS market and the commercial solar and storage market.

Fox has brought to market an exciting range of grid-tied inverters offering unrivalled performance and efficiency. The product range is available for single-phase installations from 0. 7 to 6. 0Kw (S & F Series); and for 3phase applications up to 25kW (T Series).

In addition, Fox has launched a range of battery options, tapping into the deep supply chain of Tsingshan Group to provide advanced solar plus storage solutions to its customers around the world. One such offering is the LV5200; a high-performance, plug and play, deep-cycle battery.

Fox inverters are precision engineered to provide maximum performance, efficiency, reliability and longevity. They incorporate a unique heat-sink and cooling fin design that is integrated into the inverter casing to ensure optimal direct contact with heat generating components. The pioneering fin design creates a larger surface area and this larger contact surface greatly increases the cooling effect, increasing the heat transfer ability of the inverter by up to 30% when compared to other leading brands.

In addition to reducing heat stress, the R&D team at Fox paid special attention to the inverter capacitors, the most expensive electrical component, a Fox have selected the market-leading tier one brand for their inverters. A key factor impacting on capacitor lifespan is their capacity to store charge during each cycle, and Fox have scaled up the number of capacitors, decreasing the amount of charge stored and prolonging the lifespan of the inverter.

SOLARQUARTER | DECEMBER ISSUE 2020

Fox offers a range of flexible battery storage solutions for all applications. One of its flagship battery products is the LV5200, a highperformance, scalable battery storage module. The modular design allows for maximum flexibility, making it suitable for a broad range of storage applications. Up to twelve batteries can be installed in parallel, allowing for a maximum storage capacity of 61. 44kWh. Installation is easy, with a plug and play solution that can save valuable time for installers. This low voltage battery benefits from a 98% charge/discharge efficiency, a 90% depth of discharge and is rated for ≥6000 cycles.

Whether it be inverters, chargers, storage systems or battery cells - all system components are designed, developed and manufactured by Fox. This ensures total hardware and software compatibility and allows for warranties that are fully integrated. Unlike equivalent systems, there is only ever one aftersales point of contact, providing the customer and installer with the best possible after sales service and total peace of mind.

India has a good capacity of rooftop market. Fox is targeting the rooftop market through distributors. Also, some big EPC companies, some ODM with Fox inverter range of 1-25 Kw are more suitable for rooftop market.

Fox will soon introduce a range of 25-100 Kw for utility scale and MW projects.

India is a promising market. By controlling the supply chain, Fox is able to offer the high quality products with an attractive price to be more competitive in this market.

Fox believes India is a very promising market and wants to play a significant role in India' s solar demand. Fox is revolutionising the solar and storage sectors with ground-breaking product developments, a vertical supply chain that is driving up quality and driving down costs, and an unswerving commitment to after sales care.

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