INR. 100/-
RNI No.:MAHENG/2010/39548
Vol. No.9
n
Issue No. 5
n
December - January 2019
n
Mumbai
Cover Focus
Thermal Power- India
Fading Coal Power Shine
India require no capital expenditure in thermal capacity until FY22, given that 40 GW of capacity is under construction and the current stranded capacity is 25 GW, says a report. Industry Insight
Solar PV Inverters
Market Review
Special Feature
Wires & Cables Market - India www.powerinsight.vision-media.co.in
|
Solar PV O&M Trends in India Power Insight
|
December - January 2019
|
1
2
|
December - January 2019
|
Power Insight
|
www.powerinsight.vision-media.co.in
EDITOR’S NOTE Phasing out coal power will be challenging in short to medium-terms for India
G
lobally coal meets 28 per cent of the world’s energy needs and generates around 41 per cent of world’s electricity while emitting approx. 46 per cent of global carbon dioxide. In contrast, in India coal has about 70 per cent contribution to total power production, resulting in 65 per cent of national CO2 emissions. A recent report says that there is economic merit in closing down such power plants to meet the Paris goals. However, it will be challenging in short to medium-terms for India for its energy security concerns and national developmental targets, being a coal dependent economy. In addition, any coal phase down in India also has to consider the socio-economic-political implications on over 15 million workforce and their families. The only way out is that the country seriously takes stringent steps to ensure maximum efficiency of its existing coal-fired power plants to achieve nationally determined contributions under the landmark 2015 Paris Climate Change Agreement. Thus government notified the power producers to install necessary equipment’s for reducing emission to comply with new environmental norms. Here, power companies raised several concerns surrounding the costs of installing pollution control equipment for coal fired plants along with lack of clarity on the pass-through of the additional capital and the high operating costs for complying with these norms. On the other hand, with falling solar and wind power tariffs that have landed between INR 2.5-3.0/kWh - coal-fired power is increasingly losing market share as states are rightfully opting for the cheaper renewable energy option. While, as per India’s Central Electricity Authority (CEA) estimations, the tariff for a new emission controls compliant pit-head supercritical coal-fired power plant should be INR 4.39/kWh. This raises questions on the feasibility of new investments of thermal power stations, as it will find it hard to compete with the new renewable energy projects. In India, where its 32 per cent of the population residing in urban areas, there is a neverending demand for electricity. The fact that renewable sources of energy are nowhere near the scale that is required to substitute for conventional sources of power makes matters worse.....
Pankaj V Chauhan Editor - Power Insight
Email : pankaj@vision-media.co.in
www.powerinsight.vision-media.co.in
|
Power Insight
|
December - January 2019
|
3
What’s Inside
content
Volume No. - 09 ; Issue No. -05 : December - January 2019
14
Editor:
Pankaj V Chauhan
Cover Focus Thermal Power - India The prevailing scenario and perception at large is that the shine of thermal power sector in India is fading away - especially coal - the principal source of energy....
Marketing & Sales: Navin SIngh
marketing@vision-media.co.in
K. Pushpageetha
geetha@vision-media.co.in
Creative Head: Prashant S. Kharat
Graphic Designer:
Fading Coal Power Shine
G. Sanjay
Production Head: Shantanu Singh
16 Improved Thermal Generation 18 Emmission Check
Printed, Published & Owned by
If coal based power plants have to survive then they have to prepare & choose the most advanced coal based power generation...
PANKAJ V CHAUHAN
Printed at
MAGNA GRAPHICS (INDIA) LTD., 101, C & D GOVT. IND. ESTATE, KANDIVLI (WEST), MUMBAI 400 067
20
Published from
G-3A, JUNGLEE PEER DURGAH, K.A.GAFFARKHAN ROAD, WORLI, MUMBAI 400 018.
December - January 2019
Wires & Cables
Vinay Rathi Executive Director Gloster Cables India
An insight into Wires & Cables market and changing trends in India. ...
25 Industry Interaction
26 Solar Cables - Quality Matters
India has seen rise in demand for wires and cables suitable to solar energy. However, these need to be sturdy and of high-quality to withstand extreme conditions.
All right reserved while all efforts are made to ensure that the information published is correct, Power Insight holds no responsibility for any unlikely errors that might have occurred. The information on products & projects is being provided for the reference of the readers. However, readers are cautioned to make inquires & consult experts before taking any decision on purchase of equipment or investment. Power Insight holds no responsibility for any decision taken by readers on the basis of information provided herein. All disputes are subjected to Mumbai Jurisdiction only.
|
24 Industry Interaction
Market Review
Positive Market Trends
Editor: PANKAJ V CHAUHAN RNI. NO. : MAHENG/2010/39548
4
An insight into opportunities and key challenges faced by the thermal power sector in complying with new Emission Standards...
Sanjeev Vyas Senior General Manager Havells India
Regulars
08 03 Editor’s Note 06 Conventional Updates 12 |
Power Insight
|
Renewables Updates T&D Sector Updates
www.powerinsight.vision-media.co.in
42 46
Communication Features Events Diary
What’s Inside
30
Industry Insight
Solar PV Inverters Industry Overview & Outlook The solar inverter market is expected to see high growth while increasing electricity prices, rising investment in smart cities, and increasing awareness among consumers will boost the market.
33
String Inverters Making Inroads The share of string inverters is increasing in India. But, at the end when it comes to define core aspect for choosing between string and central inverters - it comes down to the size of the project...
36 Industry Interaction Honey Raza Head Sales - India Solis Inverters
38
37 Industry Interaction Sunil Badesra Head Sales Sungrow India
Special Feature
Solar PV - O&M The Solar O&M market in India is set for a decent growth over the coming years. Firstly, with lowering tariffs in India have been putting a lot of pressure on developer’s margins. Thus, the O&M of the plant has become all the more critical to ensure overall profitability of the plant.
40
Authored Column
Challenges for the Distributed Rooftop PV O&M Companies - Authored by : Paras Savsani Manager - Operation & Maintenance - Fourth Partner Energy Private Limited
Next Issue Editorial Attraction Sector Focus: Indsutry Insight Market Review Special Feature
Power Transmission Sector BoP - Solar PV Electrical Switchgears Mounting Structure & Trackers
www.powerinsight.vision-media.co.in
|
Power Insight
|
December - January 2019
|
5
Conventional News
NEWS UPDATES Thermal Power
India is emerging as a huge market for FGD and Air quality control systems India has emerged as one of the largest markets for FGD and air quality control systems and investments of over USD 10 billion would be required to put in place the requisite systems.
Thermal Power
In compliance of the new environment norms set out by the Central Pollution Control Board (CPCB), all thermal power companies in the country are rushing to install
India identified 200 potential thermal power sites The official said in view of these targets India needs to increase the installed generation capacity which would include fossil fuels based as well as renewable energy because clean sources like wind and solar do not generate electricity round the clock.
the FGD system units to meet the deadline of 2022. The timeline was set following a phased implementation plan prepared by the Central Electricity Authority to install FGD units in 414 thermal plants having a cumulative capacity of 1,61,402 MW and upgrade electrostatic precipitator in 222 thermal plants with a cumulative capacity of 64,525 MW.
Thermal Power
BHEL commissions 800 MW thermal power plant in record time State-owned BHEL said it has successfully commissioned an 800 MW thermal unit within a record time of 46 months in Telangana.
Besides, the official pointed out that thermal power is cheaper than other sources like hydro and nuclear, which also involve a lot of risk and rehabilitation of people in catchment areas.
The 800 MW set has been commissioned at Kothagudem Thermal Power Station (KTPS) of Telangana State Power Generation Corporation (TSGENCO).
The official said that coal-based thermal power plant is still a viable proposition and would continue in the energy mix of the country in spite of the addition of other clean and renewable energy sources like solar, wind and gas.
BHEL has executed this project on Engineering, Procurement and Construction (EPC) basis. Besides the 1x800 MW Kothagudem project, TSGENCO had awarded the 5x800 MW Yadadri project and the 4x270 MW Bhadradari project to BHEL, which are presently under execution.
Hydro Power
Government to bring in policy for revival 5,950 MW stalled hydro projects Currently in India, as many as 16 hydro power projects of 5,950 MW capacity are stalled due to financial constraints and other reasons. According to the Central Electricity Authority (CEA) estimates, the annual loss of energy generation from these stalled hydro projects is about 18,761 million units. According to media reports, a total of 37 hydro power projects of 12GW generation capacities are under construction in
6
|
December - January 2019
|
the country. Out of these, 16 projects are either stalled or held up due to financial constraints and other reasons. The government is working on a hydro policy that would provide for longer loan repayment period, lower interest rate and other incentives which would help bring down the tariff of these projects. The power ministry has informed about formulating a hydro policy to Parliamentary Standing Committee on Energy.
Power Insight
|
www.powerinsight.vision-media.co.in
Hydro Power
Mangdechhu hydroelectric project to start producing by end of next month After few episodes of minor delay, 720 Megawatt Mangdechhu Hydroelectric project in Bhutan is likely to come alive by the end of February 2019. The Rs 4000 crore worth power project that is planned to supply mammoth amount of energy to India at a favorable price. Against the initial project planning for completion in 2017, the project was set to get commissioned in the month of June 2018. Following few minor technical complicacies, the commissioning was shifted first to October 2018, then November and then January 2019. India is a major stake holder in the project as it is one of the ten hydroprojects planned by Bhutan to generate 10,000MW hydropower by 2020 with support from the GoI.
NEWS UPDATES Thermal Power
Nuclear Power
India-France making ‘satisfactory progress’ on nuclear power plant pact: Government
SEIL floated a tender to set up two flue-gas desulphurisation (FGD) units in Andhra Pradesh Sembcorp Energy India (SEIL) is in the process of setting up two FGD units and has invited bids for the same as per tender document. SEIL is Indian arm of Singapore-based Sembcorp group having a portfolio of 4.37 GW, including some under-construction plants. The FGD units worth over INR 1,000 crore are to be set up in its two power plants with a total capacity of 2,640 MW in
Andhra Pradesh. The adoption of cleaner technologies will help these power plants to reduce emission and attain higher efficiency and compliance of the new environment norms set out by the Central Pollution Control Board (CPCB).
Hydro Power
Hydro Power
JSW Energy betting big on hydropower
BBMB awarded best performing utility in hydro power sector
JSW Energy sees substantial growth opportunity in the hydropower sector in India on account of government impetus for renewable energy in the country.
Bhakra and Beas, multipurpose projects of India, BBMB that helps its partner states for meeting their Irrigation, power and drinking water requirements - has been awarded “Best Performing Utility in Hydro Power Sector” based on recommendations of the high level jury, Central Board of Irrigation and Power (CBIP).
The company entered the hydropower sector in 2015 by acquiring the Baspa (300 MW) and Karcham Wangtoo (1,080 MW) projects from debt-ridden Jaiprakash Power Ventures, a Jaypee Group subsidiary, for INR 9,700 crore. Earlier, the
company tried to enter the hydropower space eight years ago by building a 240 MW plant at Kuther in Himachal Pradesh, unfortunately the project could not take off due to policy issues and for want of a long-term power purchase agreement (PPA). JSW Energy is looking at reviving this project besides looking at other stressed hydro assets. Today, JSW Energy has a total power generation capacity of 4,531 MW—including thermal, hydro and solar. It supplies power to Haryana, Rajasthan, Uttar Pradesh, and Punjab at an average tariff of INR 4.39 per unit; and gives 12% of its total operational hydel capacity to the Himachal Pradesh government for free.
The national level award has been awarded outstanding perforamance of BBMB that run six power houses having installed capacity of 2918.73 MW and plays an important role in maintaining grid parameters such as providing peaking power besides supplying “Black Start Power” in the event of Grid Collapse.
The Department of Atomic Energy (DAE) has told the Parliament that India and France have made “satisfactory progress” on an agreement to develop six reactors of a 10,000 MW nuclear power plant project in Maharashtra. The Industrial Way Forward Agreement was signed between the Nuclear Power Corporation of India Ltd (NPCIL), which comes under the DAE, and the Electricite de France (EDF) on March 10 last year for the “implementation” of the reactors at Jaitapur in Maharashtra. Minister of State for Prime Minister’s Office (PMO) Jitendra Singh told the Rajya Sabha that “both the governments noted that satisfactory progress had been made in pursuance of the Industrial Way Forward Agreement in 2018 between NPCIL and EDF and adopted the status of progress for implementation.
Nuclear Power
France submits techno-commercial offer for Jaitapur nuclear power project According to media reports, French company EDF has submitted a technocommercial proposal to the government for the Jaitapur Nuclear Power Plant (JNPP). A techno-commercial offer is an important step in the negotiations process as it helps the two parties determine the cost of the project and tariff of the electricity generated from it. External Affairs Minister Sushma Swaraj stated that “Both countries are working to start the Jaitapur nuclear
www.powerinsight.vision-media.co.in
|
energy project as soon as possible. We are glad that NPCIL and EDF have made progress based on the Industrial Way Forward Agreement. Today, we have adopted the Status of Progress for Implementation of Industrial Way Forward Agreement,” after holding talks with visiting French Foreign Minister Jean-Yves Le Drian on December 15.
Power Insight
|
December - January 2019
|
7
NEWS UPDATES
Renewable News
Solar Power
Solar Power
BHEL wins order for 129 MW Solar (PV) Plants in Telangana
Top companies showed interest in 1,000MW floating solar plant in Solapur
Bharat Heavy Electricals Limited (BHEL) has won an order for setting up 129 MW Solar Photovoltaic (SPV) power plants in Telangana from Singareni Collieries Company Limited. Significantly, valued at Rs.565 crore, this is the largest SPV power plant order won by BHEL till date.
MSEDCL’s 1,000MW solar floating plant at Ujani dam in Solapur district has evoked tremendous response with 12 top companies participating in the pre-bid meeting held in Mumbai. The companies that participated in the pre-bid meeting are: Juniper Green, Solar Energy of India, EWGIE Solar, Shapurji Pallonji Infra, Adani Green, Adani Power, Marubani Corporation, Mytrah Energy (India), Giriraj Panawdle and Mahindra System. The plant will be developed through a private partner. The discom has finalized ten locations in the dam where panels having total capacity of 100MW would be installed. MSEDCL would sign a power purchase agreement (PPA) with the developer for for 25 years at maximum rate fixed at INR 3 per unit.
The plants are to be set up at four locations in Telangana - Ramagundam (50 MW), Yellandu (39 MW), Manuguru (30 MW) and Pegadapally (10 MW), on Engineering, Procurement and Construction (EPC) basis. With this order, BHEL’s solar portfolio has risen to more than 710 MW.
Solar Power
Solar Power
Goa’s amended solar policy 2017 to be notified by January end
KSEB plans to bet big on exploring the potential of floating solar in the state
In mid January, while hearing the plea of the consumers and solar installers - who brought to the notice of the Joint Electricity Regulatory Commission (JERC) that the government is dragging its feet over promoting solar power highlighting problems on the ground. The JERC has instructed the Goa electricity department to provide required assistance to consumers interested in generating solar power in the state.
The project would help reduce evaporation from the dam and save 1,000 million cubic feet (TMC) water while catering the need of power to farmers of Solapur and adjoining districts.
The member secretary of Goa energy development agency, Sanjeev Joglekar has informed the JERC that the solar policy 2017 is being amended and it will be notified by January 2019 end.
Renewable Power
India plans to auction 40 Gigawatts of Solar & Wind every year till 2028 15 gigawatts of other renewable energy The Ministry of New and Renewable Energy (MNRE) has recently stated that India will target an installed capacity of 500 GW’s across all renewable energy technologies by 2030. The 500 gigawatt target has been divided into 350 gigawatts of solar, 140 gigawatts of wind, and 10 gigawatts of other technologies. This medium-term target has a crucial short-term milestone to have 100 gigawatts solar, 60 gigawatts of wind, and
8
|
December - January 2019
|
The Kerala State Electricity Board Limited (KSEB), in association with the Union government, is planning in a big way to deploy floating solar power generation units, across state.
capacity operational by 31 March 2022. Auctions to ensure that this target is met on time shall be concluded by 31 March 2020. The balance of 325 gigawatts renewable energy capacity will be auctioned in the eight years between 2020 and 2028. This will include the auction of 250 gigawatts of solar, 70 gigawatts of wind include 30 gigawatts of offshore, and 5 gigawatts of other renewable energy technologies.
Power Insight
|
www.powerinsight.vision-media.co.in
The board has plans to use all major reservoirs for the deployment of floating solar units to which the Solar Energy Corporation of India Limited (SECI) has promised the board cutting-edge technology and support. The board hopes to cut down on the cost to half from current for generating solar power from floating units with the advent of new technologies and support of the central agency. The average price for power generation from floating solar panels is currently INR 8 per unit that could be brought down up to INR 4 per unit, accoring to the board CMD, N S Pillai.
BELIEVING THE
EXCELLENCE AND QUALITY
MODULES ARE BIS CERTIFIED
R-51000590
5BB
SOLAR PV
MODULE
DLF GALLERIA, Office No. DGK 917, 9th floor,New Town, Kolkata 700 156, West Bengal, India www.powerinsight.vision-media.co.in
|
Power Insight
|
December - January 2019
E-mail: info@sovasolar.com | Website: www.sovasolar.com
|
9
NEWS UPDATES Renewable Power
Solar Power
Gujarat to add 15,000 MW of renewable power by 2022
Adani to invest Rs 70,000 cr in solar powered data centres
The Gujarat government has announced INR 1 lakh crore investment in the renewable energy (RE) sector in the next three years and aimed at adding 15,000 MW capacity. Of the 15,000 MW additional power generation in the state, 10,000 MW will be from solar and 5,000 MW from wind power.
In a move that would bolster India’s technology infrastructure and boost the concept of green data centres, Adani group signed a memorandum of understanding with the Andhra Pradesh government.
power generation from the existing 28 to 53 per cent in next three years.
The state government also plans to reduce dependence on thermal power by increasing the share of RE sector in total
State energy minister Saurabh Patel also stated that the Gujarat government will purchase renewable energy directly from those who produce 500KW to 4MW and the government will sign power purchaseagreements for 25 years.
Solar Power
Solar Power
BEE and CPWD ink pact for energy efficient buildings
MNRE brings down the commissioning timeline for solar power projects The government has reduced the time allowed for commissioning and financial closure of solar power projects, a move that could accelerate the pace of renewable energy capacity addition in the country.
Bureau of Energy Efficiency (BEE) and Central Public Works Department (CPWD) inked a pact to make 150 buildings energy efficient, which would save 50 million units per annum. According to the MoU, BEE and CPWD will cooperate on promoting designs and construction of Energy Conservation Building Code (ECBC) compliant new buildings, star rating of the CPWDmanaged buildings with no registration or renewal fee, awareness on energy efficiency in buildings. In the first stage, approximately 150 buildings will be taken under star rating scheme and to promote energy efficiency in the CPWD managed buildings. It is anticipated that this initiative will result in energy saving of more than 50 million units in the first stage - stated the power ministry statement. The star rating scheme for buildings is based on the actual performance of a building in terms of its specific energy usage in kwh/sqm/year.
10
|
December - January 2019
|
In amendments to the tariff-based competitive bidding guidelines for solar projects, the MNRE said the timeline for commissioning of solar projects in a solar park and outside of it will be 15 and 18 months, respectively, against the previous timeline of 21and 24 months. It could put pressure on developers as acquisition of land and availability of transmission infrastructure continues to mount.
The Adani Group plans to invest Rs 70,000 crore over the next 20 years to build solar powered data centre parks of up to 5 gigawatts in and around Visakhapatnam in Andhra Pradesh, its single largest investment till date. The group will develop data centre parks across three different campuses with each offering complementing value and together providing required redundancy and reliability to datacentre operators. These data centre parks will be powered with 100% renewable energy to be generated within Andhra Pradesh. The ambitious project, touted as the first-of-its-kind 100 per cent renewable energy powered project in the world, is expected to make Andhra in the East Coast the data centre hub for India and South East Asia creating over a lakh of direct and indirect jobs.
Wind Power
GE Renewable Energy bags largest EPC project in India GE Renewable Energy has announced that it has been selected by ReNew Power, to provide 120 GE 2.5-132 turbines for the Gadhsisa Wind Farm in Gujarat. The wind farm will have a total installed capacity of 300 Megawatt, making it the largest full turnkey Engineering, Procurement and Construction (EPC) project by GE Renewable Energy in India. “GE’s 2.5-132 wind turbine was designed in India specifically for India’s
Power Insight
|
low wind speed conditions, lowering the cost of wind energy compared to similar turbines. We are excited to bring this wind turbine, as well as other new turbines such as the 2.7, to the India region,” said Mahesh Palashikar, Region Leader for GE Renewable Energy’s Onshore Wind business in Asia. ReNew Power had successfully bid for this project in the third round of auctions conducted by Solar Energy Corporation of India (SECI) in February 2018.
www.powerinsight.vision-media.co.in
www.powerinsight.vision-media.co.in
|
Power Insight
|
December - January 2019
|
11
NEWS UPDATES Power Distribution
NDMC replaces 50,000 old meters with ‘smart’ ones The New Delhi Municipal Council on Wednesday replaced 50,000 conventional electricity meters with smart meters, making NDMC the first distribution company in India to implement 100% smart metering solution.
T&D News
Power Transmission
Leh and Kargil region now connected to the national grid
The smart meters come with multiple user-friendly features like user’s profile, latest consumption and instantaneous reading, user’s consumption pattern for the last
PowerGrid has achieved a milestone by connecting India’s northernmost areas in Jammu & Kashmir into the national electricity network.
seven, 15 and 30 days and also allows users to register complaints for quick resolution, besides showing the load pattern of the household. The adoption of smart meters will enhance consumer convenience and rationalise electricity consumption. Minister for power, new and renewable energy R K Singh inaugurated NDMC’s smart meter project at an event where the smart meter feature was added on NDMC 311 mobile application , which enables consumers to access various services.
Power T&D
Generators outstanding dues on Discoms’ rose a 24.7 per cent
This will help improve the supply in Ladakh and Kargil regions that have remained 95 per cent power deficit regions due to their isolated locations.
According to official data, electricity generating firms outstanding dues on state distribution companies (discoms) rose to Rs 39,498 crore in October 2018, up 24.7 per cent from a year-ago levels.
The project is expected to improve the quality of life with 24X7 power supply in the region alongwith boosting the economic activity and employment through winter tourism.
Discoms of Uttar Pradesh (UP), Maharashtra, Telangana, Andhra Pradesh, Karnataka, Delhi and Tamil Nadu owe the major portion of dues to the power generating companies. While UP tops the list with 537 days in making payments, Delhi takes 519 days and is followed by Maharashtra (518 days), Karnataka (517 days), Rajasthan (516 days), Tamil Nadu (515 days), Telangana (514 days) and Andhra Pradesh (514 days).
Since 2013, NHPC has been supplying power to Leh and Kargil towns from its two hydel projects built at Nimmoo-Bazgo and Chutak. However, these hydel stations were running at sub-optimal levels in the absence of grid connectivity.
Power T&D
Power Ministry recommends Maharatna status to Power Grid The power ministry has recommended ‘maharatna’ status for Power Grid Corp of India Ltd (PGCIL), the country’s largest power transmission company. ‘Maharatna’ status allows state-run firms greater financial autonomy — they can decide on investments of up to 15% of their net worth in a project without govern-
12
|
December - January 2019
|
ment approval. In comparison, ‘navratna’ companies such as Power-Grid can invest only up to Rs 1,000 crore without government approval. If the proposal is approved by the Centre, PGCIL will become the eighth ‘maharatna’ public sector undertaking — and the second in the power sector. PowerGrid had applied for ‘maharatna’ status after it achieved the qualifying parameter of average annual turnover of Rs 20,000 crore for three years
Power Insight
|
www.powerinsight.vision-media.co.in
Power Distribution
Tata Power Delhi, Norway’s PIXII ink deal on grid Tata Power Delhi Distribution Ltd (TPDDL) has signed an agreement with Norwegian power technology company PIXII to explore the use of distributed pole-mounted storage to boost the strength of the distribution grid in the capital, recently. The project aimed to improve the health of the distribution network by significantly reducing technical losses and would augment the overall network integrity for addition of renewables and other energy resources, the statement said. With this distributed storage, Tata Power-DDL aims to reduce the strain on distribution transformers by smoothening the daily electricity peaking cycle. The integrated system will also help reduce technical losses and improve the asset health of feeders and distribution transformers.
NEWS UPDATES Power Distribution
CESC expects 25 per cent growth in revenue from its distribution business Kolkata-based CESC, is hoping to register a near 25 per cent growth in revenue from power distribution business outside Kolkata after bagging distribution licence for Maharashtra’s Malegaon. This year it is expecting an annual revenue of around Rs 1,700 crore from the segment.
Other location includes distribution franchise for Kota, Bharatpur and Bikaner in Rajasthan, apart from distribution in Uttar Pradesh’s Greater Noida which it has been serving for several years now. CESC, received power distribution franchisee from MSEDCL for Malegaon Municipal Area in Maharashtra for 20 years through a competitive bidding based on annualized input rate for purchase of power payable to MSEDCL.
At present, outside Kolkata, CESC serves retail power distribution in five locations including Malegaon in Maharashtra which it recently bagged.
Group chairman, Sanjiv Goenka said: “CESC is expecting a turnover of around Rs 322 crore annually to begin with from Malegaon distribution franchise.”
Power T&D
Power Transmission
No more blackouts from April 1, 2019: R K Singh
Sterlite Power bags power augmentation project in West Bengal
Consumers will get uninterrupted power supply from April 1,2019 and building blocks for this are all in place, according to power minister RK Singh. From this ‘zero date’, state distribution companies (discoms) cannot resort to wilful blackouts to avoid buying power. If they do, they will invite stiff penalty from state regulators, who will also tally area demand with PPAs (power purchase agreements) to see whether the utilities have lined up adequate supplies. Only blackouts due to technical issues or natural calamities will be exempted from penalties. Singh is banking on the revised tariff policy containing stringent provisions against wilful blackouts. But will that be enough to make discoms buy power since UDAY, the scheme to restore their financial health by improving key parameters such as losses due to theft and improving billing and recovery, hasn’t yielded the desired results. Singh aims to address these issues through a policy sequel, named UDAY-II, and infusing technology such as smart pre-paid metering regime and helping states to change naked overhead wires into aerially bunched insulated wires to stop ‘hooking’ – a popular method of stealing power. Power Minister also advocated for pre-paid metering citing it as pro-poor.
Sterlite Power has been awarded a power augmentation project for seven districts in West Bengal. The project will cover districts of Purba Medinipur, Murshidabad, Burdwan, Kolkata, North 24 Parganas, South 24 Parganas and Hooghly. Currently, there is a transmission capacity shortage of 150 MW power in the New Kolkata region. The upgraded line will ensure reliable access to power in this part of the region,” CEO Manish Agarwal said.
Power Distribution
Torrent Power bags distribution rights for Thane urban circle of Maharashtra Torrent Power has been appointed as electricity distribution franchisee for three sub-divisions under Thane urban circle of Maharashtra. The company has emerged as winner of competitive bidding process conducted by Maharashtra State Electricity Distribution Company Ltd (MSEDCL) for appointment of input based distribution franchisee for distribution of electricity in Shil, Mumbra and Kalwa sub-divisions under Thane urban circle, for 20 years. The total customer base of these three regions is 2.15 lakh. Torrent Power is expected to upgrade the infrastructure, improve quality of supply and lower AT&C losses, whereas MSEDCL is obliged to supply input power at annual input rates as agreed under the agreement.
Rapid urbanisation and longer commissioning time of greenfield transmission projects have resulted in more upgrade and uprate of projects of existing lines.
Power Distribution
Survey work on ambitious “Smart Grid Project” in Chandigarh begins The work on ambitious project of installation of smart electricity meters under the Smart Grid Project in Chandigarh has started. The company, which was allotted the work has started the survey in sectors and villages, which were identified for the first phase of project. The company which was allotted the work has started the survey and will check place of installation of meters, the connectivity of central server with meters and so on. After checking the connectivity, the company will then
www.powerinsight.vision-media.co.in
|
start installation of meters on large scale. In the first phase, the UT electricity department has allotted work to M/s Analogics Ltd for replacing 30,000 existing power meters into smart meters in Sectors 29, 31, 47, 48, Industrial area Phase I and II, and villages Faida, Ram Darbar, Hallomajra, Raipur Kalan, Makhanmajra and Daria.
Power Insight
|
December - January 2019
|
13
Cover FOCUS
Fading Coal Power Shine
The prevailing scenario and perception at large is that the shine of thermal power sector in India is fading away - especially coal - the principal source of energy. Unfortunately, the renewable energy is also nowhere near the scale - required to support a growing economy like India with uninterrupted electricity availability necessary - for a stable economic growth....
14
|
December - January 2019
|
I
ndia is facing stiff opposition at home and abroad over its carbon emission levels which are expected to double by 2030 due to country’s dependence on thermal energy. With a population of 1.35 billion, of which 32 per cent residing in urban areas, there is a never-ending demand for electricity in India, making it hard for the country to cater to the ever-growing electricity needs of its people. To counter this the Government of India, is running one of the world’s largest clean energy programmes targeting 175 GW of clean energy capacity addition by 2022. . The prevailing scenario and perception at large is that the shine of thermal power sector in India is fading away - especially coal - the principal source of energy. Unfortunately, the renewable sources of energy are nowhere near the scale that is required to substitute for conventional sources of power, makes matters worse. Thus,
Power Insight
|
India must carefully choose how to reshape its energy mix that involves sensibly scaling down thermal power dependency while making up on renewable energy usage, whose competency meanwhile has to be strengthened.
Importance Overlooked For a growing economy like India, uninterrupted electricity generation and availability are necessary - for a stable economic growth. Thermal generation plants have been the backbone of the power sector in the country for more than a century now, especially coal fired plant, which is an integral part of the country’s power sector as it serves as a base load. Thermal power has always accounted for more than 60 per cent of total generation capacity in the country contributing significantly to the economic growth of the nation. No doubt, India that aspires to continue
www.powerinsight.vision-media.co.in
Cover FOCUS to grow at a stable 7 per cent per annum - as it has been the past - a reliable electricity supply is essential and coal power plants is needed to support this growth. However, with India embarking on journey to achieve an ambitious renewable energy capacity addition targets by 2022, questions are being raised on the relevance of coal power in the present context. While there has been much concerted effort to increase generation of electricity from renewable energies such as solar and wind, the reality is that these capacities could take years to build. On the other hand, thermal plants have for long been the mainstay of power generation in India - especially coal. It is interesting to note that in power generation today, the share of coal in total capacity is about 62 per cent but the share in generation is about 80 per cent. Thus, looking at the criticality of the coal based power plants both to power sector and more generally to the economy as a whole, it is extremely important that sector remains competitive with active participation from the government, public and private place. Even the industry experts and analysts feel that renewable energy sources and coal should coexist, as the availability of coal is abundant in India - it can provide affordable power to propel India’s economic growth while bringing light to every household. However with prevailing trends in demand, supply and efficiency combined with weak policy support for conventional generation are posing difficult times for the sector and needs immediate attention.
Prevailing Uncertainty Prevailing challenges faced by thermal power sector – especially coal based plants - have been responsible towards increasingly putting them at risk of being stranded. These challenges can be broadly categorise into following heads.
Demand Side Constraints : Poor financial health of the discoms has
been a major bottleneck to increase in demand for electricity. In addition issues of high AT&C losses, insufficient tariff hikes and low subsidy collection from government continue to be a rampant ruining profitability. As a result a number of power generation companies without PPAs have been exposed to volatile prices of short term market. It should also be understood that renewable energy has become quite competitive due to falling project costs. In the past 15 months, solar and wind power tariffs have landed between Rs 2.5-3.0/kWh with zero indexation through reverse bidding auctions. Coal-fired power is increasingly losing market share as states are rightfully opting for the cheaper renewable energy option. This has led to the decline in the utilisation of coal fired power plants across the board, resulting into a significant drop in plant load factor, from 75 per cent in 2010-11 to 60 per cent in 2016-17. Although UDAY has improved the financial situation for discoms, however it is yet to drive confidence to invest in PPAs. With limited PPAs, prospects for future investment in the sector seem bleak with many of existing power plants now becoming standard assets. In addition, increasingly stringent RPO and RGO obligations imposed by the government have brought the sector into direct competition with renewable generation, adding further to the woes of coal based generation.
Fuel Supply Risk: The PPA often being a precursor to the allocation of FSAs and while discoms continue being reluctant to sign new long-term PPA’s with generation companies, plants without PPA are exposed to coal supply uncertainty. In addition, much of the coal produced in the country is of a relatively inferior grade. That poses a dilemma for the coal-fired thermal plants-to either use sub-quality coal that leads to lower energy generation or import a sizable tonnage of coal at higher prices to mix and improve the overall output. Thus generation capacity which does
www.powerinsight.vision-media.co.in
|
not have stable supply source of domestic fuel and with no or limited access to imported coal markets are at risk. According to a study carried out by Centre for Science and Environment (CSE) covering a total of 47 coal-fired power plants in India. Around 20 coalfired thermal plants with capacities of 2000 MW or above have an average energy efficiency of a mere 32.8 per cent.
Low Efficiency: Unfortunately, many projects in the Indian coal-fired sector are based on poor quality imported and out-dated subcritical technology. This is one of the reasons for low plant efficiency which not only leads to burning of more coal in the plants but also adds to the volume of CO2 produced. According to industry estimates, some of India’s power plants emit up to 120 per cent more CO2 than the average emissions by plants in European countries. Thus, there has been a crying need to raise efficiencies and energy output across the Indian coal-fired sector that will also help bring down emissions within acceptable limits. With the 2015 Paris agreement of global leaders on climate change, where India too has been a signatory, it has become even more imperative to accelerate a modernization program of coal fired power plants in the country.
Way Forward Unfortunately, the long-term outlook for coal seems far from promising with very limited scope for new investment in this sector as government policy directly and indirectly supports renewable capacity additions. In addition, with renewables achieving grid parity there has been a reversal in the merit order of discoms shifting toward renewables. However, industry experts and analysts feel that India cannot do without coal. Despite the ramping up of renewable capacity, both solar and wind energy cannot go beyond 40% of the energy mix. So, coal has no problem for the next 20 years in India unless some new source of energy is invented. n
Power Insight
|
December - January 2019
|
15
Cover FOCUS
Improved Thermal Generation
T
he Integrated Energy Policy of the Government of India envisages an ambitious program for power capacity addition to about 800 GWe by 2031-32 towards meeting the energy demands of the country for ensuring the required economic growth and improved standards of living. Meanwhile, considering the fact that thermal power caters to most of India’s electricity needs at present and a limited number of plants are being built or are in the pipeline, it will be difficult to cater to the approaching electricity demands. The situation is becoming critical to provide round-the-clock electricity across the country and increasing electricity demands. Thus, for a reliable supply of energy the government is pushing for super thermal power plants and other
16
|
December - January 2019
|
modern thermal plants to produce more energy from the same capacity. While, the Ministry of Power has issued instructions to the Central Electricity Authority (CEA) to prepare a phasing plan for installation of specific pollution control equipment at TPPs in the country.
Advance Technology: Though, the Central Electricity Authority (CEA) has projected to reduce the dependence on coal based power plants and has designed framework to adopt new renewable sources, yet the available renewable resources are not viable enough to meet the increasing domestic demand, and therefore, coal based power plants will continue to be a feature of Indian Power Sector at least for 50-60 more years. As it is known that the average effi-
Power Insight
|
ciency in prevailing sub-critical power generation technology in India is claimed to be 32 per cent in comparison to the world average efficiency of around 38 per cent. Thus to achieve the highest possible energy efficiency and reducing coal required per unit of power generated, the country has planned to adopt clean-coal-based power generation technologies such as supercritical, ultra-supercritical, advanced ultra-supercritical and integrated gasification combined cycle. The Government of India took various decisions to promote the use of such technology in our country by advocating a gradual shift to Supercritical Technology to Ultra Super Critical Technology. By 2032, India is also planning to convert the present sub-critical fleet of power plants to only Ultra Super Critical (USC) Technology having 4245 per cent thermal efficiency and 28
www.powerinsight.vision-media.co.in
Cover FOCUS R&D project to improve power plant efficiency to 45-46%, reduce CO2 emissions and reduce coal consumption, and establish a demonstration power plant 800 MW capacity. The cost is estimated at INR 1554 Crore and for financial year 201415, government made budgetary provision of INR. 100 Crore. Then in March 2015, the government of India approved an Advanced Super Critical Technology (A-USC) R&D Project for INR 1500 Crore to achieve enhanced efficiency of thermal generation, reduce carbon dioxide emissions, and reduce coal consumption for coal based power plants. Later, the following initiatives were taken to reduce carbon footprint of power sector –supercritical technology was made mandatory for Ultra Mega Power Plant (UMPP); all coal fired capacity addition in 13th plan are to be through supercritical units; A-USC technology was approved by the government. Decision was also taken for renovation, modernization and life extension of old thermal power units and retirement of old and inefficient thermal generation units, in phased manner. per cent CO2 reduction by staying at say 603°C-605˚C. Furthermore, the advanced ultrasupercritical technology is a pioneering indigenous technology and has potential enough to solve the bottlenecks of coal based power plants. The A-USC project will enable Indian industries to design, manufacture and commission higher-efficiency and low polluting coal-fired power plants. This in turn will also lead to establishment of new industries and generate employment opportunities in the country.
Key Developments In August 2014, Government of India announced, a new scheme for “Development of Advanced Ultra Super-Critical (A-USC) Technology for Thermal Power Plants” and was introduced in the Union Budget of 2014-15 as an
For bringing A-USC (Advanced Ultra Super Critical Technology) to India the Cabinet Committee on Economic affairs approved the R&D on AUSC with an estimated cost of Rs. 1554 Crore i.e. Rs. 270 Crore from BHEL, Rs. 50 Crore from NTPC, Rs. 234 Crore from ICAR, Rs 100 Crore from DST, and balance Rs. 900 Crore from DHI as a grant spread over three years, commencing from 2017-18, provided to BHEL as a plan Gross Budgetary Support for implementation of R&D. The project will enable Indian industries to design and manufacture higher efficiency coal power plants using advance technologies without any technological collaboration/ licensing agreement with foreign companies. Also, Enhanced Energy Efficiency is under implementation by Bureau of Energy Efficiency (BEE) for improving energy efficiency for 144 thermal sta-
www.powerinsight.vision-media.co.in
|
tions in the country. Government of India further took the steps in March 2017 and April 2017 to modernize and improve the efficiency of coal based thermal power plants and reduce pollution levels from these plants include Adoption of supercritical technology with design efficiency 5% higher, lower fuel consumption and CO2 emissions than that of 500 MW subcritical units. A capacity addition of 39,710 MW power based on supercritical technology already achieved and 48,060 MW of technology is in pipeline. A capacity of about 7751.94 MW units of old and inefficient unit has already been retired.
Summing Up: India is going in big way for the Renewable Energy resources for the supply of power. At present the coal route has taken a back seat. In-spite of that Coal inevitably will be on the scene for the power generation as thermal power has long been the backbone of the Indian power sector and will continue to be for the foreseeable future. Such technology developed indigenously would enable India to be among the first few countries in the world to demonstrate the technology. It will facilitate manufacture of large power plant equipment with advanced technologies and without Technological Collaboration/ Licensing Agreement from foreign companies. Further, the spin-off from this project will include benefits to other industries dealing with high temperature, high pressure exposure of metal objects. Once developed, use of these technology in future large thermal power plants will ensure energy security for our Country for a longer period, along with reduction in impact on the environment. If coal based power plants have to survive and to compete with Solar Power generation plants, and then they have to prepare & choose the most advanced coal based power generation n
Power Insight
|
December - January 2019
|
17
Cover FOCUS
Emission Check An insight into opportunities and key challenges faced by the thermal power sector in complying with new Emission Standards...
I
n December 2015, the Ministry of Environment, Forest & Climate Change (MoEF&CC) announced tighter emission standards for coal-based thermal power plants. The new standards aim to drastically reduce emissions of NOx, SO2, PM, and mercury. In order to comply with these revised standards, existing plants were given two years (upto December 2017), while plants commissioned after 1 January 2017 were required to comply from the start of their operations. The standards were to be implemented within two years of the date of notification—December 7, 2015. The notification categorises thermal plants into three categories—those installed before December 31, 2003, those installed after 2003 but before December 31, 2016 and those installed after January 1, 2017.
18
|
December - January 2019
|
While implementation was slow to begin with, FGD technology uptake gathered momentum after the Central Electricity Authority (CEA), along with regional power committees, drafted a plan last year for the phased implementation of FGD systems at plants. Power Insight endeavors to analytically look into the thermal power sector and allied industries preparedness to comply with these standards and norms.
The Opportunities: In order to comply with the Conference of the Parties (COP21) commitments, in December 2015 the environment ministry issued new norms to restrict the emissions of nitrogen oxide (NOx), sulphur dioxide (SO2) and particulate matter (PM) from thermal power plants (TPPs). Compliance with the norms by existing and
Power Insight
|
upcoming projects would require significant equipment upgrades and a large number of emission control systems. According to industry experts there is an estimated total potential of around 160-170 GW for the emission control market in the country. Thus, it opened up a huge business opportunity and stimulus for the hard hit equipment industry’s recovery and was welcomed by the industry. Since the announcement of the norms, the market has already begun to see a flurry of activity with tenders being issued by various utilities. Further, steps being taken at the policy and regulatory level for the implementation of the new norms in recent months have boosted confidence in the industry. Key among these has been the release of a
www.powerinsight.vision-media.co.in
Cover FOCUS phased implementation plan by the Central Electricity Authority (CEA), as per which a region-wise implementation strategy to install FGD systems in about 122 GW of capacity by 2022 has been announced (72 GW of projects that do not have space to install FGDs will be phased out).
The Challenges On the developer side, a big concern that has been raised since the announcement of the norms has been with respect to costs as coal-based power projects will have to invest in additional equipment capital expenditure to comply with the revised emission norms. This will result in raising the generating cost of generation company’s (Gencos) by 13 paise to 22 paise per unit. Gencos face uncertainty on the recoverability of such costs from the financially fragile state-owned distribution utilities. Though, industry experts believe that costs could come down once market competition intensifies. On the other hand an area of concern for the equipment industry is the excessive technical requirements being stipulated in the technical specifications, which poses serious impact on the price. Further, utilities often delay the release of tender documents or signing of contracts, which is compensated by shrinking the project execution time. This makes it difficult for vendors to execute projects within time schedules, often leading to a compromise in the quality of equipment installed or safety at the plant site.
Initial Hitches To comply with these revised standards, existing plants were given two years (upto December 2017) The CEA has sought details of preparedness and action plans for meeting the revised norms from all TPPs. All IPPs showed their interest of being fully on board to implement the norms. It seemed like the Initial apprehension about the two-year time frame for the implementation
Conclusion:
of norms being too aggressive is subsiding. However, power generation companies have reportedly sought tariff support from the central government to meet new emission control norms for power plants. It is estimated that retrofitting coal-based power plants with new emission control equipment would entail a cumulative investment of $38 billion by the private sector. This would result in an increase in tariff in the range of Re 0.50 to Rs 1.25 per unit. In addition, it has been reported recently that the domestic capacity for manufacturing emission control equipment is currently inadequate and in this respect MoP has taken up the issue with the MoEFCC. Though, earlier the domestic equipment industry players have emphasize that the existing manufacturing capacity is not a constraint for FGD or SCR systems and with their technical tie-ups with global solution providers, they are fully geared up to meet the power sector’s requirements. Keeping in mind these development, MoEFCC has extend the December 2017 deadline regarding stricter emission norms for coal-based power plants to 2022.
www.powerinsight.vision-media.co.in
|
It is an unquestionable reality that India’s emission standards are likely to get stricter over the coming years. Thus focusing on addressing key concerns will help ensure that the set targets are met as soon as possible. According to the CEA, as of September, FGD systems have been commissioned for 1,820 MW of capacity across three units at two private sector power plants – Tata Power’s 500 MW Trombay thermal power station (TPS) and CLP India’s 2×660 MW Mahatma Gandhi TPS (which is currently under renovation and maintenance). Meanwhile, bids have been awarded for 27 other thermal power units aggregating 13,540 MW of capacity. With all these units belonging to NTPC, the company is leading the way in FGD implementation. Since September 2018, NTPC has awarded three more projects – the 2×110 MW Tanda TPP, the 1×500 MW Unchahar TPP and the 4×210 MW Dadri TPP. In another significant policy development, the Ministry of Power (MoP), in May 2018, issued a notification stating that investments in the installation of emission control technologies would be considered for tariff pass-through.n
Power Insight
|
December - January 2019
|
19
Market REVIEW
T
Market Review
Wires & Cables
Positive Market Trends Due to growing emphasis on developing a robust T&D network in the country to meet the rising demand for reliable power, a number of government initiatives and programmes have been undertaken that have helped create a positive market trends for wires and cables .
20
|
December - January 2019
|
Power Insight
|
he increasing demand for power, light and communication has kept high demand for wires and cables segment that comprises of nearly 40 per cent of the electrical industry in India. Wires and cables play a vital role in every aspect of infrastructural growth and finds extensive usage and applications across a number of industries. The demand for wire and cables is directly reliant on the expansion of the industrial sector and infrastructure development in the power generation and transmission, telecommunication, and residential and commercial sectors. Thus the government’s initiatives on various fronts like - power, housing, infrastructure and digitization are sure to generate a lot of business for the wire and cable industry in foreseeable future. Likewise, with government’s emphasis on pushing renewable energy to the forefront, the industry is now looking forward to supply cables for solar and wind power applications in addition to oil and gas, railways and other specialized segments.
Segment Overview: Over the past two decades, Indian wires and cables industry has grown considerably in size and is fully established for all types of wires and cables. Indian power cable manufacturers have attained maturity in terms of technology for HV cable up to 220 kV and have been found competitive in the global scenario, despite having higher local costs, as well as local taxes and duties being paid on their products. In addition, some manufacturers have established a world class technology platform in EHV cables up to 400 kV, either through technical collaboration or through joint ventures. Notably, the industry has kept pace by
www.powerinsight.vision-media.co.in
MARKET REVIEW The year 2017-18 has recorded a growth of approx. 13 per cent. The economy is expected to embark higher growth in FY 2018-19 owing to many proactive Sanjeev Vyas, Sr. General Manager - Havells India measures such as “Electricity for all, Smart continuously upgrading the technolcities, Railway Electrification, emphaogy to meet the technical demand sizing on renewable energy segment, from the Power Sector. However, there the year ahead to take wire and cable is a burning need for standardization market to a new height.” of specifications across this seg-
“ The Electrical Wire and Cable industry In India has a market size of around 50000 Cr and the market has witnessed a growth rate of around 14-15 % CAGR over the recent years.“
ment, which would lead to improved efficiencies in this segment and also reliability of products.
As per various market estimates, there exist more than 25 major power cable companies in the organized sector and over 600 medium & small units across Indian wire and cables industry. Though, the industry has largely been able to transform itself into an organised segment and currently accounts for the major market shares and dominates this industry. Still, the unorganised sector constitutes a notable section of the industry.
Market Growth & Trends Commenting on the growth and market size, Sanjeev Vyas – Senior General Manager – Havells India, said, “ The Electrical Wire and Cable industry In India has a market size of around 50000 Cr and the market has witnessed a growth rate of around 14-15 % CAGR over the recent years.“ Also, as per various industry reports and industry experts, the market is expected to double in size to INR 1,00,000 crore in the next 5 years registering a 1516 per cent CAGR. Vinay Rathi, Executive Director - Gloster Cables said, “Forecast for electric wire and cable in our country is expected to grow at CAGR of approx. 16 per cent during the period from 2016-2020.
The growth in the market can be attributed to India’s large population base, increasing industrialization and urbanization, development in transmission and distribution networks, increased renewable energy production and supportive governmental initiatives for expansion or upgrade of existing infrastructure. Experts feel that increasing renewable power generation is one of the primary factors contributing to the growth of electric wire and cables market.
visaging India as the potential market for high voltage (HV) and extra high voltage (EHV) cables. They leverage their investments in the Indian cable market through technical collaboration with Indian cable manufacturers for production of EHV cables up to 400 kV. Talking on the key market and technology trends Rathi said, “Infrastructural development towards economic growth has taken a key role in almost all segments. Accelerated urbanization and growing concern over pollution have increased investment in metro rails for urban mass transportation. Government has planned to develop metro rails in at least 50 cities across. This besides, mining, power, oil and gas, cement industry and steel plants are seen to be active in form of new expansion or revamping. Different kind of cables like EHV, elastomer cables, solar cables are presently in use other than special application oriented cables and wires including new grade of conductors.”
“Owing to many proactive
Vinay Rathi added measures such as Electricity for all, Smart that, “The Indian cable industry with cities, Railway Electrification, emphasizing on market size of renewable energy segment, the year ahead to around Rs.16000 crores comprises of take wire and cable market to a new height.” around 40% off the Vinay Rathi, Executive Director - Gloster Cables entire electrical industry. It is expected to increase by a CAGR of 15% over the next three years to Rs.18000 There is a burning need for stancrores. Cables play a crucial part in all dardisation of specifications across the three aspects of the power sector – this segment, which would lead to generation, transmission and distribuimproved efficiencies in this segment tion, and as the government pushes and also reliability and replaceability for augmentation of transmission and of products. With increasing focus distribution connectivity, it would on renewables, the industry is now generate healthy demand.” looking forward to supply cables for solar and wind power applications in addition to oil and gas, railways and other specialized segments. Due to lack of congenial policies Vyas of Havells echoed the same, and technology for investments in “Since technology development is local manufacturing, the country still focussed towards renewable energy, depends on imports cables of 66 kV the development has greatly been and 33 kV. the domestic manufacturseen in Cables for Solar application. ers must explore the possibility of In addition to this, there is significant manufacturing these items to meet technological development witnessed likely demand Global investors are en-
Technology & Market Trends
www.powerinsight.vision-media.co.in
|
Power Insight
|
December - January 2019
|
21
in Halogen Free Electrical Wires for building application. Such wires provides Improved Fire performances and offer much reduced risk of Fire hazardous in Electrical Network due to short circuit.” While commenting on the market trends, Sanjeev Vyas, said that “Among the total market of around INR 50000Cr in India, 65% constitute power and control cables and 35% is for light duty cables. Currently around 65% cables are coming from organized manufacturer and 35% from un–organized manufacturer. After implementation of GST, organized sector share is rapidly in increasing trend and likely to be around 75% up to year -2020.
Key Market Drivers: Industry experts, foresees very encouraging growth figures for the Indian wire and cable industry over the coming years. The market growth can be attributed to growing population base, increasing industrialization and urbanization, development in transmission and distribution networks, increased renewable energy production, large automobile production, and supportive governmental initiatives for expansion or upgrade of existing infrastructure.
Power & Renewables: The Indian
power sector has an investment potential of INR 15 trillion
(USD 225 billion) in the next 4–5 years. Also, the government is planning to achieve targets of tripling per capita power consumption in India which would require an additional 455 GW of installed capacity along with significant investments and operational improvements in T&D networks. Sanjeev Vyas of Havells, said, “The investments undertaken by Govt. in power and infrastructure sectors will drive the demand of wires and cables in the near future as well. Also, projects such as DDUGJY, IPDS, Smart Cities plan and Saubhagya , “Power for All“ movement by Central Electricity Authority supported by Focus on renewal Energy is going to be certainly a key driver in India in coming future for Wire and Cable Industry.” In addition, around 293 global and domestic companies have committed to generate 266 GW of solar, wind, mini-hydel and biomass-based power in India over the next 5–10 years. The initiative would entail an investment of about USD 310–350 billion. Thus, power sector is all set will play a significant role in demand generation for the segment by providing immense opportunities in power generation, distribution and transmission.
Telecommunication: India is cur-
rently the second-largest telecommunication market and has the third highest number of internet users in the world. Internet is the most happening thing in India. More and more number of Internet users are increasing each day. Nowadays internet is being available in Rural India as well. India will emerge as a leading player in the virtual world by having 700 million internet users of the 4.7 billion global users by 2025, as per a Microsoft report. Moreover, as per media reports, India is expected to have over 180 million smartphones by 2019, contributing around 13.5 per cent to the global smartphone market, based on rising affordability and better availability of data services among other
22
|
December - January 2019
|
Power Insight
|
factors. All these developments seek tremendous growth in optical fiber cable (OFC) network, an appealing prospect for the Indian wire and cable market.
Infrastructure: India needs INR 31 trillion (USD 454.83 billion) to be spent on infrastructure development over the next five years, with 70 per cent of funds needed for power, Roads, Railways and Urban infrastructure segments. The Govt. plans to spend INR 850,000 crore in the next five years to modernize Indian Railways. The Cabinet cleared the INR 82,000 crore (USD 12.3 billion) dedicated freight corridor for decongesting existing network. Further, rapid urbanization, is boosting demand for wires and cables in the residential & commercial buildings and power distribution sectors.
Automotive: The Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the country’s Gross Domestic Product (GDP). India is also a prominent auto exporter and has strong export growth expectations for the near future. The rising demand for low-voltage wires in electrical installations of automobiles is another factor adding to the growth of the market. Vinay Rathi of Gloster Cables said, “Our Country, being at the threshold of major reforms, is expected to rank the world’s top three growing economies and among the top three manufacturing destination within next 2/3 years. 3-D concept as designed by our Union Govt Democracy, Demography and Demand is seen moving in its right phase towards implementation. “ Adding further he said, “Focus on Infrastructure, Emphasize on engineering thereby Skill India (multi skill development programme), Digitalization on B2B, B2C, various incentives for manufacturing units, additional social security ensuring removing poverty, incentive on agriculture seemingly to be the key elements towards growth achievement. With government focus on Electricity for all under Sobhagya scheme, and smart city initiative, we
www.powerinsight.vision-media.co.in
expect huge demand in coming years.”
Key Challenges The Indian cable & wire industry is witnessing rapid growth and major players have been expanding their operations rapidly to meet the growing demand. However, they face persistent problem related to counterfeit products in the market that creates a number of negative business implications. On the other hand, the
low quality cheap products from the unorganised segment plague the market. There is a burning need for standardisation of specifications across this segment, which would lead to improved efficiencies in this segment and also reliability of products. Meanwhile, the volatility in price of raw material also adversely affect the profit margins of the players. The rising price of copper has also becoming a major issue as it has squeezed the profit margins, and copper has become uncompetitive in the international market. Then there is lack of initiatives from the government to change the rules and regulations for wire manufacturers. Vyas comments, “One of the biggest challenges faced by the industry is volatility in raw material prices. Any
upward movements in the prices of raw material like steel, zinc, copper, and aluminium have an adverse effect on the profit margins.In addition to this, another challenge is to convince customer to pay for Quality. Due to lack of standardisation of the end product, there is serious challenge for the sector. Since Wire and Cable product is mainly Raw Material driven, unorganized manufacturer with substandard quality parameters also survives because of easy going functional performance with compromised quality parameters.”
Conclusion
“Also, delay in execution of projects due to the requirement of multiple clearances and approvals, poses a major impediment to the growth of the industry, he added.”
Sanjeev Vyas says, Increasing demand for power, light and communication will keep demand high for wire and cable. Also, the increase in the demand of reliable & efficient energy transmission & distribution systems will drive the growth of wires & cables market in near future. The wire and cable industry will eventually focus on supplying cables for specific application pertaining to the industry needs.
On the other hand, one of the biggest challenges for the industry is operation and service, including reduced lifetime of cables due to mishandling and deployment times. Increasing price and competition from Chinese imports also poses challenges for the industry. Vinay Rathi of Gloster Cables, is of view that - In spite of growth prospect as planned, high inflation and persistent trade deficit, slow electrical price index, low productivity and weak human capital etc are key hindrances.Firms rated low domestic demand followed by high commodity prices is main concern in CII’s Business outlook survey. “Similarly, uneven business competition regardless to quality is another aspect deserves attention at all levels. Various social developmental scheme as announced by union government, reformation in banking sector, upbringing of skill working knowledge through various engineering colleges, foreign direct investment would help for implementation of growth programme as envisaged, he added.”
www.powerinsight.vision-media.co.in
|
The government’s initiatives on the front of power, housing, infrastructure and digitization are sure to pay dividends to all the industries. Housing for all, power for all and internet for all means a lot of business for the wire and cable industry in the coming future. Not only the above mentioned industries, the emphasis the government is putting on non- conventional sources of energy like solar is also a positive step for the wire and cable industry.
The Government’s impetus on infrastructure sectors such as power, railways, roads and petrochemicals will in turn spur demand for more power, and hence more power cables. Growing market potential, increased adaption of new technologies by the utilities, growing importance of services that may be linked to digital technologies have generated further scope for the growth of wires and cables industry in India. In addition, introduction of Goods and Service Tax (GST) has brought unorganised players in the sector under the tax net which has helped narrowing the price difference between organised and unorganised market. Vinay Rathi feels that, since government has identified power sector as a key sector of focus so as to promote sustained industrial growth. Initiative by the government to boost country’s power sector will lead to increase in demand electrical industries. The second half (Q3 & Q4) of 2018-19 has shown a steady growth as compared to the first half and the next FY is expected to reach still high land mark. n
Power Insight
|
December - January 2019
|
23
Market REVIEW
Interaction Gloster Cables Vinay Rathi
Executive Director - Gloster Cables Limited
Briefly tell us about your Company and its product portfolio. How has been the current FY19 in terms of business, so far? GCL produces GLOSTER brand cables, a synonym in the field of cable in our country with cap of helm for few decades.Gloster Cables Limited (GCL) was incorporated in 1995. Over the past 23 years Gloster Cables Limited has made definitive advancements in its infrastructural capacities and market reach. GCL works have been accredited for conforming to the quality standards of ISO 9001:2008 by DNV also. Located at around 35 kms from Secunderabad on National Highway NH 44, the plant encompasses an area of 41,000 sq.mts., with a total built-up area of 23,000 sq.mts. Production facilities have been designed to match customer expectations and are compatible with the requirements of the National and International Standards. In its efforts to manufacture outstanding products, a state-of-the-art infrastructure equipped with sophisticated machinery and testing equipment has been created at its manufacturing units. A vigilant internal quality control cell ensures that every Gloster Cable is tested to conform to the highest standards in the state-of-the-art In-House Laboratory. Presently we emphasize on our existingCable up to 33 KV grade, Railway signalling cable, Instrumentation cable in addition to environmental friendly Low halogen and Low smoke cables domestic segment. The year 2018-19 has been a year of achievement having scored fairly well in terms of price index, better control on credit recovery. We expect to reach a top line of 415 Crs, which records the highest figure. Which all B2B segment do you serve? Are you planning to serve any new yet crucial segment with diversification in product range? Is there any new product in offing, or any new variant of the existing ones? B2B segment is an undeniable role that is played to
24
|
December - January 2019
|
Power Insight
|
achieve high rate of output, efficiency and Brand Value. Our present product range widely covers power distribution segment almost in all category of Industries. In recent past addition of Instrumentation cable has unveiled refineries and process Industries. Fire Survival cable, Solar Cable and Railway signalling cable are in our recent members in our range so as to expand our market segment. GCL prefers to bent upon its commitment to sustain its reputation in terms of product quality and service. Thereby further addition of new generation of cables is in our future plan of product mix. Tell us about your plans and preparedness to cater to the growing renewable segment and smart cities mission in India? Is there any new investment coming up, either for capacity expansion or plant upgrade? We, GCL, are tuned to meet customers requirement and our design and production team are competent to take over any change in form of specification, construction etc. Renewable segment and smart cities are grown quite popularly and we both user and manufacturers should develop a right specification application based to have techno economical advantages. Nevertheless, my team is alert to complement the need of days. There has been quite changes and synchronization of both the units in shape of reallocation of plants and machineries in order to achieve the best rated output. In terms of investment Company has planned for investment to meet new test field, new machineries installation to augment production output to meet market demand. Tell us about strategic plans that would help you remain relevant as well as competitive in the market, over the coming years? This cannot be addressed in a simple format. Our yearly business plan is planned well in advance taking into consideration internal and external resources and analysis of various business segment. Recovery of proceeds is earmarked as main thrust which helps Company to work out competitive prices for attaining the business target. n
www.powerinsight.vision-media.co.in
MARKET REVIEW
Interaction Havells India SANJEEV VYAS
Senior General Manager -Havells India Limited
Brief tell us about your company and its product portfolio. How has been the current FY19 in terms of business, so far? Located in midst of tranquil hills of Aravali, Havells has one of India’s largest Cables plant today. Set up in 1996, the plant today manufactures wide range of the cables which covers HT cables, EHV cables, LT cables, instrumentation cables, control cables, marine and offshore cables, single and multicore flexible wires, Aerial Bunched cable , Solar Cables , Fire resistance Cable and many more. The State of the Art Havells Cable Plant is certified with ISO: 9001, IS0: 14001, OHSAS: 18001, ISO: 17025 and ISO: 50001. The current FY19 has been very exciting for us in terms of business growth and we are expecting to close to 3500 crore this year with growth of 20% CAGR. Tell us about your plans and preparedness to cater to the growing renewable segment and smart cities mission in India? Is there any new investments coming up, either for capacity expansion or plant upgrade? Keeping in pace with increased demand of wires & cables due to renewable and Smart City mission, Havells is doubling its Capacity and will be investing in plant up gradation in year 2019-20 significantly. Innovation is one of the core values and way of life at Havells. Moving with this philosophy, the company has invested in extensive R&D to develop best-in-class products and address the ever changing requirements of our discerning customers. Our R&D team continuously strives to develop most innovative and safe products. While holding almost product certification from various utilities and Bureau of Indian Standard, Havells Cable is among handful of cable manufacturer in the world having BASEC (British Approval Services for Electric Cables) certification. BASEC is professional stamp of Quality in the field of Electric Cable worldwide. Tell us about strategic plans that would help you remain
relevant as well as competitive in the market, over the coming years? Our manufacturing plant is one of the most modern and automated plant and is equipped with best-in-class machineries and use best raw material from primary manufacturers which ensures quality. Being a part of latest technology Havells has come up with Improved fire and Heat performances insulation which ensured no risk of fire Hazards. HR-FR insulation, ROHS compliance & Anti-rodent/ antitermite Insulation make compaction with reduced electric losses. Havells is also working on development of such type of insulating material which can save energy with operating economy. Havells Solar Cables with special Polymer for solar application has been already developed and certified with TUV standard. Such cables can reasonably demonstrate service life of 30 years minimum under extreme weathering and fire conditions. Havells as Market leader and responsible Wire and Cable manufacturer in India has taken one step ahead towards business excellence in the Industry by setting up Diagnostic and Field Study Centre at Alwar. We aim to provide technological support to the Electrical industry setting up Havells initiate is the first of its own kind in the country by aiming to provide technological support to the Electrical industry in following activities. n Condition monitoring for aged Cables. n Develop and establish methodology for mapping test results to cable circuit failures. n Develop and establish the compatibility requirements of cable installation accessories with the cable to have reliable field performance. n A Knowledge-based Systems shall be developed and shared for selecting cable by overcoming installation issues by experiencing the field studies.n
www.powerinsight.vision-media.co.in
|
Power Insight
|
December - January 2019
|
25
Market REVIEW
Market Review
Wires & Cables
Solar Cables
Quality Matters The solar power generation in India has seen an unforeseen rise in the previous few years, creating enormous demand for special kind of wires and cables suitable to solar energy. However, these solar cables have to be sturdy and of high-quality to withstand extreme conditions.
I
ndia has seen a surge in solar power generation in recent years backed by number of initiatives to reach the mark of 100 GW by 2022 has helped place the country as the third biggest solar market worldwide. Consequently, it has created a never-seen-before growth in demand of solar power technologies and electrical products for the harvest, storage, and transmission of solar energy. Not to mention, it helped in creating enormous demand for special kind of wires and cables suitable to solar energy, during the past few years. However, solar photovoltaic (PV) projects require a highquality cabling system that connects all the electrical components together with minimum loss in energy.
SOLAR CABLING There are various kinds of solar cables which are required to interconnect the solar modules, string arrays, array junction boxes up to the inverter in D.C voltage circuit and A.C. armoured cables from inverter output to the transformer grid within solar network. DC and AC cables are an important part of Solar PV
26
|
December - January 2019
|
Power Insight
|
www.powerinsight.vision-media.co.in
MARKET REVIEW Quality Matters Cables are an important component of any solar projects. As solar projects have a minimum life of 25 years, the components used for solar projects should be bankable to support this expected life. Moreover, cable installations in any solar projects are subjected to direct sun radiations and withstanding both extreme temperatures and air humidity. Thus, these solar cables have to be sturdy and should be weather resistance. In addition they also have to withstand mechanical stress from pressure, bending or stretching as experienced during installations as well as chemical stress in the form of acids, alkaline solutions and salt water. In both the technology domains, viz. solar photovoltaic technologies and solar thermal power plants, the choice of solar cables is critical - as low efficiency, overheating, longevity problems (minimum life should be 25 years), and technical cabling losses have to be eliminated in such cables.
rooftop system, used in solar power plant for generating solar energy for home/industrial/commercial roof top or ground mounted. While solar PV panels and inverters (including junction boxes) are connected through direct current (DC) cabling, on the other hand connection between the inverter and the substation requires an alternate current (AC) cabling. There are three main types of DC cables and wires which are used in PV installations, namely earth wires, single core wires and twin core wires.
Meanwhile, systems with singlephase inverters require the use of three-core AC cables and systems with three-phase inverters require the use of five-core AC cables. Moreover, for a typical solar PV project, various voltage level from low to extra high are used as per requirement. While low-voltage power cables are used from the panel to the combiner box, from the combiner box to the inverter, and from the inverter to the transformer, on the other hand medium-voltage power cables are used for transferring electricity from the transformer to the substation and high voltage and extra high voltage ones from the substation to the grid.
Lots of developments are done by cable companies towards suitability of solar cables under toughest application to withstand mechanical stress from pressure, bending or stretching as experienced during installations ....
www.powerinsight.vision-media.co.in
|
Therefore, lots of developments are done by cable companies towards suitability of solar cables under toughest application such as highest resistance against environment like U.V., ozone and humidity; suitability of cables under extreme temperature (-40°C to 120°C); suitability in toughest weather condition; high resistant to abrasion, impact, tear and pressure.
Material Matters Copper and aluminium are two most common conductor materials used in solar installations. Though copper is more expensive than aluminium, its current carrying capacity is better than an aluminium wire of the same size. In addition, the solar power cable can be solid or stranded - since current tends to flow on the outside of the wire, stranded wires have slightly better. Thus this type of arrangement is recommended for projects of larger sizes. As solar wires and cables are subjected to harsh outdoors conditions, it
Power Insight
|
December - January 2019
|
27
Cover FOCUS cover. This will reduce the system performance and make system inefficient. On the other hand, choosing an optimum cable size helps avoid overheating and ensures very little energy loss. The size of a solar cable is directly dependent on the generating capacity of the solar module as well as the distance of the solar module from the load. Hence, the larger the capacity of the solar module or greater the distance, the bigger should be the cable size. The type of components to be connected also influences the cable size. However, to reduce the installation cost and increase their profit margin, many of the installers use very bad quality of cables – while some of them do not even size the cables correctly. The money saved by wrong sizing of cables and using low quality cables is not much, but the effect to doing this to the Solar PV system is adverse. needs strong insulation for protection from heat, moisture, ultraviolet light and chemicals. There are lists of important standards specifying certain quality requirements for the insulation and sheathing materials. Thus, there are a lot of cable specific challenges a compound has to pass for use in photovoltaic applications. Primarily neoprene for insulation was typically used by solar PV installers.
solar industry, as they do not melt or flow even at extreme temperatures.
Right Practices: However, the 25 years life of Solar PV system can be expected only when the cables used in solar power plant for generating solar energy are of appropriate voltage, size and quality. Commonly, solar cable and wire properties are determined by their cable-specific insulation and sheathing materials. When exposed to irradiation, the molecular structure of cable material can change.
The money saved by wrong sizing of cables and using low quality cables is not much, but the effect to doing this to the Solar PV system is adverse..... However, as these neoprene-insulated cables were susceptible to cracks and damages in harsh environments. Currently, insulation made from electron-beam, cross-linked polymers is gaining traction and are being considered as the ideal compound for
28
|
December - January 2019
|
The insulation and sheath material of solar cables and wires must meet several crucial requirements, including weather- and UV-resistance. If bad quality cables are used in solar power plant there may be a possibility of breakage of outer insulation
Power Insight
|
Way forward: The quality, safety, and profitability of a solar plant or project depend on the workmanship and the efficiency of its components. Choosing the right wire for your solar energy system is critical to project functioning properly and remaining undamaged. Therefore, ensuring best quality standards is a must for the system, which has a life of over 25 years. However, manufacturers are faced with challenge of balancing costs with long-term reliability along with looking into constant innovations in product line to match with the evolving installation practices. In addition, it has been observed the codes and standards for solar cables fail to keep pace with new technologies and applications. Since, cables are lifeline for solar electric network, proper selection of wires and cables are crucial in the longterm with low-quality cables resulting in higher maintenance costs. Thus, a significant investment in R&D activities is needed to ensure the long-term performance and reliability. n
www.powerinsight.vision-media.co.in
www.powerinsight.vision-media.co.in
|
Power Insight
|
December - January 2019
|
29
Industry INSIGHT
Industry Insight
Solar PV Inverters
Solar PV
Inverters
Overview & Outlook India has emerged as the third largest solar market in the world having grown at a CAGR of approximately 170 per cent since 2010. The the solar inverter market is expected to see high growth while increasing electricity prices, rising investment in smart cities, and increasing awareness among consumers will boost the market.
30
|
December - January 2019
|
Power Insight
|
U
nder global obligation to restrict carbon emission India has seen a surge in utilization of green energy resources, especially solar over the recent years. India has emerged as the third largest solar market in the world behind China and the United States, having grown at a CAGR of approximately 170 per cent since 2010. India’s push to use of more renewable and non-conventional energy sources to meet the increasing power demand - has open up immense opportunities for related renewable equipment’s market. Solar inverters are an important part of a solar PV project and the market is expected to increase in proportion with uprising solar industry. According to Global Data’s latest report Solar PV Inverters – Update 2018, the global solar photovoltaic (PV) inverters market is expected to hold an aggregate market value of $22.2 billion
www.powerinsight.vision-media.co.in
INDUSTRY INSIGHT verter market is primarily driven by utility grade projects. However, according to various market reports, over the coming years a substantial growth is anticipated in commercial space– across educational institutes, airports, railways, corporate offices, and other commercial buildings. In India, there are over 30 inverter suppliers meeting the demands of the rapidly-growing solar market. The top ten solar inverter supplier’s for the FY2017-18 were – ABB, Huawei, Sungrow, TMEIC, SMA, Hitachi, TBEA, Schneider, GE and Gamesa – which together accounted for over 85 per cent of the market share. Of these, ABB, Huawei and Sungrow together bagged approximately 50 per cent share of the total solar inverter supplied during FY 2017-18 in India, according to solar consultancy firm Bridge to India. According to one market report, India Solar Inverter Market is projected to grow at a CAGR over 25 per cent during the period 2018-2024. Since the solar inverter market is extremely competitive which is seeing new players on one hand and is prone to continuous shrink in margins on account of falling solar tariffs.
during the period 2018–2022. In India also, the solar inverter market is expected to see high growth as the country is aiming to achieve 100 GW of solar energy by 2022, under its National Solar Mission. In addition, increasing electricity prices, rising investment in smart cities, and increasing awareness among consumers have further led to the expansion of solar inverter market in the country.
Market Overview : Though, the Indian solar inverter market is in growth stage, however, the market has exhibited immense growth over the past few years owing to surging implementation of solar energy projects across the country. Currently, Indian solar in-
different mechanisms which in turn affect the efficient usage as per application. Currently central and string inverters are mostly in use across solar PV projects. Since, utility scale projects are driving the Indian solar market, central solar inverter has bagged the maximum revenue share in the country till date - owing to its significant deployment across large scale utility solar projects in the country. In utility space, the central inverters currently have over 90 per cent of the market share while string inverters make up the rest. Though, share of string inverters in the Indian solar market is increasing rapidly taking over central and micro inverters. It went up from only 1 per cent until 2016 to 9 per cent in 2017 for new utility scale solar capacity commissioned. Analysts expect the trend to accelerate even further in the coming years. While, a few industry experts feel that the string inverters market is expected to display the highest growth rate over the coming years for its smaller size and high power density. This growth can also be at-
The market for industrial/commercial solar inverters has remained highly concentrated amongst majority of organized players manufacturing heavy load solar inverters especially for large commercial level usage...
Thus to sustain growth and to stay ahead of the competition curve the manufacturers needs sound R&D infrastructure to keep pace with advancements in technology for a regular upgradation of their product offerings.
Key Market Trends With technology leap and profound innovation, there are on offer central, string and micro inverters in the Indian market. These different types of solar inverter involve
www.powerinsight.vision-media.co.in
|
tributed to rising demand and high growth expected across residential, industrial and commercial solar installations. It is also worthy of consideration that customers are exploring only central inverters for utility projects where the land is flat. While, for rooftop or small utility projects with uneven land, customers are exploring string inverters and this makes
Power Insight
|
December - January 2019
|
31
Industry INSIGHT
sense also due to multi Maximum Power Point Tracking (MPPT). However, as string inverters have high Capex/O&M costs and in addition monitoring challenges, central inverters still makes the best possible solution for utility scale projects. Meanwhile, in order to keep costs down and increasing efficiency, a few of the technology trends adopted by global inverter manufacturers are DC/AC ratio optimisation, increased voltages and neutral point clamped topology. On the other hand, the prevailing technical trend in the market is higher input voltage for solar
installers want inverter of 1,500V as it is the most efficient one.
Key Challenges : Inverter suppliers in the country have been sharing the burden of the on-going uncertainties in the market. The major challenge which the solar industry and inverter suppliers have faced in last one year is the uncertainty in the mind of developers and EPCs. This is due to confusion in tax and duty ambiguities, which has impacted the solar market and resulted in delay of tenders and orders from customers. Industry experts feel that the inverter players will be prone to experience a strong price pressure from developers and EPCs. However, it is difficult to analyse whether the pressure to lower down inverter prices from the developer and EPC side is due to falling tariffs and aggressive bidding on developer’s part to win projects or increasing competition or due to the on-going market uncertainties.
It is being observed that market is shifting towards 1,500V inverters and many of the companies are planning to make available their new range of 1,500V inverters in India....... inverters. Initially, the projects in the Indian solar market used to get executed at 600V that later moved to 1,000V. Currently, solar farm
32
|
December - January 2019
|
Power Insight
|
Market Outlook: Fortunately, the year 2018 witnessed a surge in auctions notwithstanding multiple tender cancellations. Thus there should be good news on the project implementation front during 2019 and most of the uplift is expected to come from utility scale solar although rooftop solar is also expected to register another year of fantastic growth. In addition, recent notifications from the Ministry of New and Renewable Energy (MNRE) on some big GW level floating and storage tenders which open up another door of opportunity to explore in the future. Considering the Indian market potential and growth, many overseas players are establishing a local manufacturing and R&D setup here in India to design and develop products to meet Indian requirements. However, continuous drop in tariff in India is leading to new developments in the inverter segment and this has been possible with inverter suppliers who have a strong R&D setup and capability to bring new innovative products in line with the market requirement in order to take this sector to the next level..n
www.powerinsight.vision-media.co.in
INDUSTRY INSIGHT
Industry Insight
Solar Inverters
String Inverters Making Inroads Currently string inverters have a low penetration across Indian solar market in comparison to central inverters. However, the share of string inverters is increasing in India. But, at the end when it comes to define core aspect for choosing between string and central inverters - it comes down to the size of the project.
I
nverters are essential components of PV systems which convert DC electricity produced by panels to AC electricity to power appliances. They come in various types; central, string and micro. While, central and string inverters have been around for a long time. Micro-Inverters made their entry to the solar industry recently. India is powering the growth of solar with its ambitious targets for clean energy and is currently the world’s third biggest solar markets. Thus there is a healthy demand for inverters in India to cater to the rapidly-growing solar market in the country. Once an easy job is now becoming difficult for EPC players and developers – when it comes for choosing an inverter for a large-scale solar project in India – since there is an increasing appearance of string inverters in the market over the recent years. However, string inverters currently have a low penetration across Indian solar market in comparison to central inverters, which enjoys a market share of approximately 90 per cent. Though, various market reports expect that the share of string inverters is all set to take a big leap in the Indian market, over the coming years.
Reason for Popularity: String inverters are slowly gaining popularity in the Indian solar market as they are considered more efficient than central inverters. The capacity of string inverters in the market has also increased in the past couple of years, and introduction of new models have made it more attractive for the project developers. There are various reasons for its increasing adoption in the market - like its relatively small size that has an advantage when it comes to transportation as compared to transporting large and heavy central inverters to the project. In addition, replacing a string inverter is both easier and inexpensive in case of failure. On the other hand, as string inverters are connected to a series of solar panels and not the entire system of panels, any failure or shading does not affect the performance of the entire system. Moreover, it improves energy harvest and cost savings for the project due to quick start time of a string inverter - in comparison to central inverters and with multi Maximum Power Point Tracking (MPPT). Most importantly, it provides greater flexibility in making design choices for the balance of system (BOS).
Installation Trends String inverters are mostly used in rooftop solar systems and not as much in utility scale projects because, installation of string inverters is not easy in large-scale projects. This is mainly because of the number of components that are used for installation of a string inverter and also it entails more activity on the site, which results in
www.powerinsight.vision-media.co.in
|
Power Insight
|
December - January 2019
|
33
Industry INSIGHT It should also be noted that stakeholders have different priorities. Whereas an inverter supplier is interested in making greater profit, EPC contractor is looking to achieve the lowest possible price per watt. At the same time, developers are concerned with the overall life of the project and return on their investment.
Advantages
escalating the overall cost of EPCs. In addition, due to more components, maintenance cost is also higher in string inverters. Meanwhile multi MPPT requires more sophisticated software for analysis of the data generated. Thus, string inverters are commonly used in residential and commercial applications. However, as technology improves - string inverters today have greater power density in smaller sizes. That is one reason string inverters are becoming a popular alternative over central inverters in small utility installations smaller than 1 MW. However, due to its higher cost as compared to central inverters, the ground mounted projects usually opt for central inverters as it reduces the balance of system (BOS) costs. The trend is likely to continue in the near future as initial investment costs deter developers in installing string inverters in a price sensitive market like India. Though few industry experts feel that the market is shifting towards string inverters and with the commissioning
of projects during 2019 there will be more clarity on the trend. However, India has set an ambitious target of installing 40 GW of rooftop solar - there is huge untapped potential for the growth of string inverters as they are more suited to rooftop solar systems than large scale utility projects.
Challenges in Adoption Solar panels are arranged into groups connected by “strings.� Each string of panels is connected to a single inverter. Since a string of solar panels will only produce as much electricity as its least productive panel. Thus, if one or more of your solar panels is shaded during any part of the day, the power output from that entire string would be reduced to its level. Though, Indian projects are mostly developed on flat lands and do not have such issues related to power generation losses due to shading. Thus, currently it doesn’t make much sense to install more expensive string inverters when developers are already witnessing shrinking margins. Though, string inverters are now becoming a universal accepted technology for solar power, but it is also sought not to be suitable for certain types of installations.
Both string and central inverters have their advantages and disadvantages. The defining aspect for a particular inverter comes down to the size of the project......
34
|
December - January 2019
|
Power Insight
|
One of the main advantages of string inverters is reduced project downtime in case of failure. In addition, replacing an old part after warranty is also easy on string inverters. It also has an advantage over central inverter in terms of maximum overloading, as repowering a part of plant is possible and easy. Thus, demand for continuous power supply without any interruptions and strict sustainability also favours string inverters. When using string inverters, there are multiple smaller inverters for several strings, so the DC power from a few strings runs directly into a string inverter rather than a combiner box and is converted to AC. String inverters are best applicable for systems whose solar arrays have different angles or orientation. Advantages of using a string inverter are plenty but not everyone in the market feels optimistic about the growth of string inverters for utility scale projects.
Conclusion: Finally, both string and central inverters have their advantages and disadvantages. The defining aspect for a particular inverter comes down to the size of the project. The conflict in decision happens only when the size of the project is around 20-30 MW, when both string and central inverters give similar value proposition. However, the cut down in component cost and rising want for sustainable energy can considerably contribute toward the escalation of market growth. But in the near future, string inverters will certainly see much greater market share with advances in technology and reduction in price. n
www.powerinsight.vision-media.co.in
Power Market in India has Witnessed Exponential Growth - in recent years ATTRACTING more & more New Players
Dont get LOST
Choose a Reliable Media Platform INR.
100/-
8 010/3954 AHENG/2 RNI No.:M
bai
e No.
Vol. No.9
Issu
2
June
- July
2018
Mum
RNI No.:M AHEN G/20 10/39548
A Vision Media Group Publication INR.
Since a decade now - Power Insight magazine has garnered a strong readership base across Indian Power sector and allied industries - to help our partners reach out to focused and targeted audience and key decision makers....
Cover
Cover
lar PV oftop So
Foc us
- India
oo S l ow F
Ro
Des
ow t h te d G r
n leads entatio ia. implem nt in Ind er policy deployme PV improp rts, the ftop Solar ious effo of the Roo pite var
to sluggi
al Electric
Insula
tor
Issue
No. 3
August
- Sept ember
2018
Mum
bai
Feature
Lost
Wind ene Industry
rgy dev eloper
Mome
s in Ind
Insi
Transfo ght Industr rmer y
Print Magazine I Online Magazine I Web-Portal I Social Media
Vol. No.9
a
wth sh gro
e& Turbin Boiler, tor Genera
Special
y Insight
iew
Rev Hydro Small r Powe
Market Industr
Foc us
Wind Po wer- In di
100/-
Rev
Solar PView EPC Mar ke www .pow
erinsigh
ntum
ia are stru connec ggling to add tivity to cap the grid acity amid low tar .
Market
t.vision-
med
Special
t
ia.co .in
|
iffs and
poor
Fea
Efficie ture in Therncy Drive mal Po wer Power
Insig
ht
|
August
- Sept
emb
er 2018
|
1
Contact Us: Navin Singh I marketing@vision-media.co.in I +91 7303355982 ; K Geetha I geetha@vision-media.co.in I +91 9321055982 www.powerinsight.vision-media.co.in www.powerinsight.vision-media.co.in
|
Power Insight
|
December - January 2019
|
35
Industry INSIGHT
Interaction Solis Inverters
Honey Raza
Head Sales - India , Ginlong (Ningbo) Technologies What is the current size of solar inverter market in India? How do you look at the growth witnessed by the market?
folio. Residential: 1kW – 5kW in Single Phase & 5kW – 10kW in Three phase. Commercial: 5kW – 60kW in Three Phase. Utility: 60kW – HV (480Vs) .
The current rooftop installation in the country shall be touching the 5GW mark and utility sector shall be around 30GW. String inverter market shall be 98% in the rooftop segment and place around 10% for the utility segment. We expect the deployment and acceptability of string inverters to rise further to 20% in the current FY. This is due to the acceptance amongst the key players for this technology in terms of better OPEX and concerns for total cost of ownership of the assets.
We are currently having fully vertically integrated manufacturing empowering better control on quality. Present capacity is 38000 inverters units per month.
What are current price and technology trends in solar inverter market in India? Constant innovation and optimization at product level is the only way to exist in the present competitive environment. Low bids translate the pressure on every level of the whole value chain. Support and collaborative efforts is what needed in the industry. Price we see shall remain constant, the shortage of power electronic semiconductors devices are still continuing from last year and are expected to improve this year. Multiple MPPT inverters technology shall dominate the rooftop sector and higher capacity inverters of 100kW and above shall dominate the utility segment. How much Inverters have you supplied to India market during the first three quarter of current FY 2018-19, what is your overall targets /expectation for FY 201819? The overall inverters supplied is around 180MWs catering to all the three segments of market – Residential, Commercial and utility. Commercial and Industrial segment shall be the driving force for this year. We expect to ship more than 400MWs this year. Successful adaptability of Solis Inverters by the rooftop developers is acting as a driving force for acquiring utility segment. Brief us on your product offerings and manufacturing capabilities? Wide variety of products catering to all the three segments of Residential, Commercial and Utility are there in our port-
36
|
December - January 2019
|
Power Insight
|
Your view on competition in this market? What helps you gain edge in the market? Every day we are facing new entrants in the market but they key is the sustainability and reliability. Good Service shall be the only way to move forward. In Solis Inverters we are constantly improving and optimizing the product adhered to the needs of the market without compromising on the quality. Our biggest strengths are use of best component which we import from Japan, USA, Europe etc. These accounts about 99% of the total components in the inverters. Our R&D team is the working continuously towards higher efficiency, extended uptime and better heat management in the inverters. What challenges are facing the inverter suppliers in India under prevailing uncertainty in India solar sector? Yes there was some uncertainty regarding the SGD and Rupee depreciation which resulted in delay of projects but now Government has taken adequate step in solving the issues. Other issue pertaining to GST is also now resolved and clear amongst the developers. This year we expect the sector to achieve 30% growth level as compared to last year. Timely redressal and addressing the issue of each stack holder was very well handled by MNRE. Your future plans and commitment towards the solar sector in India? We see India as the most important strategic market. The growth drivers like Government Policies, Financial support and increasing trust of the developers in the clean energy are conducive for the solar energy sector growth. We have long term plan for India and would abide by the commitment towards our customers. n
www.powerinsight.vision-media.co.in
INDUSTRY INSIGHT
Interaction Sungrow India
Sunil Badesra
Head Sales - Sungrow India Your view on solar sector growth in India, recently? Indian Solar industry is still very far from 100GW target which is supposed to achieve by 2022 and specially in rooftop it is lagging behind by large numbers. Though 2018 was bit slow than the predictions made by Industry specialists at the starting of the year 2018 however going forward in 2019 and 2020 it is expected that projects will be back on pace which is required to achieve the dream of 100GW by 2020. Could you throw some light on current price and technology trends in solar inverter market in India? Recently market has seen some stability in solar tariffs and the same we are expecting to get happen in Inverter prices. Prices has reached to the level where if further drop happens it will be a threat for the industry however in Sungrow, we are committed to bring out the solution which can optimize the project cost for the customers. In recent years, we have seen that market moved from 4MW block size to 12.5MW block size and 1000V to 1500V and going forward 2100V solutions may come soon. Storage is also going to happen at big scale in near future. Tell us about your Inverters shipment to India market during the first three quarter of current FY19, what is your overall targets /expectation for FY 2018-19? We have shipped over 1GW Inverters in the first three quarter of India and in the whole year of 2018, shipment is over 1.5GW shipment which has been done with both String and Central Inverters. With these shipments we have crossed 3.7GW in India and we are expecting to ship another 300MW of Inverters in this last Quarter which will help us to touch 4GW figure. Briefly tell us on your product offerings for Indian market and your manufacturing capabilities? We offer complete range of Inverters in India that includes String Inverters from 10KW to 125KW for commercial, Industrial and small utility projects and 3.125MW Central Inverter for big Utility projects. In near future we are also planning to launch our residential Inverter range as well. Our Bangalore factory has already started manufacturing String Inverters for both Indian and US Market. By the second half of 2019,
we are going to start manufacturing of Central Inverters and going forward we are planning to offer MV solution for utility scale projects as well from Indian factory. Your views on competition in this market? Tell us about technology & company USP’s that gives you an edge? Competition is increasing in market and if you ask us it is very encouraging not only for us but also for our R&D as well as it always motivates to do better. Sungrow is a technology driven company so we always believe to bring innovative solution to the market which can bring competitive advantage to our customers in the form of more generation and BOS saving. Last year we have been able to secure maximum market share in India because of our strength in technology of Inverters and over this more reliable and fast services always makes Sungrow the first choice for our customers. What challenges are facing the inverter suppliers in India under prevailing uncertainty in India solar sector? Challenges are always there in different forms like this time BIS is a challenge as labs are not ready which can do Inverter testing. Safeguard duty hasn’t impacted us much as it was more related to modules however yes there was bit delay in projects due to uncertainty and currency depreciation is a worry for everyone as major components even make in India are getting imported from outside. We hope that rupee gets better in future which will help in bringing down the cost of the projects for IPPs. Your future plans and commitment towards the solar sector in India? Going forward we are planning to introduce new Inverters for Indian market in both String and Central Inverters which will be disclosed as the time progress. We are already doing good business in storage in other countries like US and as the Indian market has also started getting Storage Tenders, we are ready for this transition with our complete range of PCS/EMS/Package solution that includes Batteries as well. Also, we are committed to bring more innovative quality solutions to Indian renewable market with the same reliable standard of services.n
www.powerinsight.vision-media.co.in
|
Power Insight
|
December - January 2019
|
37
Special FEATURE Special Feature
Solar O&M
Solar PV
O&M
An insight into Solar PV O&M market and changing trends in India....
C
limate concerns have brought the power generation from renewable energy sources to the forefront across the globe – especially solar power. According to industry reports, the global solar PV market is poised to see explosive growth over the coming years. The International Energy Agency (IEA) in its World Energy Outlook 2015 has predicted that investors may sink in around $2 trillion into solar PV between 2015 and 2040.
As India has targeted 100GW of solar power installed capacity by 2022, the country has been witnessing a surge in the installation of large-scale solar photovoltaic (PV) systems aptly backed by supportive policies. However, this growth also necessitates a unified operations and maintenance (O&M) activities for sustained energy generation from solar plants which has life of 20-25 years.
38
|
December - January 2019
|
Market Overview: The Indian Solar O&M market can be divided in three broad categories – Self O&M; EPC contracted O&M services and Independent O&M (Third Party) services providers. Self-O&M is where all activities related to operation and maintenance are carried out in-house, typically used by independent power producers. On the other hand, EPC contracted O&M is hired for projects that are undertaken by financial investors who have no technical knowhow and the O&M contract is given to the EPC contractor, during the warranty period. While, the third business model is where operation and maintenance services are carried out by the third party – the independent O&M service providers. Recently, there has been a spur in the independent O&M service providers market which has begun to
Power Insight
|
pick-up in the India. At the commercial and industrial level, mostly the asset owners outsource O&M to the third party. Industry experts feel that the high pressure on costs will be the key driver to boost this business model over the coming years. India stands at over 25 GW of grid connected solar power installed capacity as on December 31, 2018. Of this installed capacity, about 50 per cent of the asset owners have undertaken Self-O&M. While the remaining market is catered by EPC players and independent O&M service providers. Solar O&M market in India is set for a decent growth over the coming years. Firstly, with lowering tariffs in India have been putting a lot of pressure on developer’s margins. Thus, the O&M of the plant has become all the more critical to ensure overall profitability of the plant. A need for more efficient O&M practices becomes a necessity
www.powerinsight.vision-media.co.in
Special FEATURE now emerging as a separate market with its own landscape, trends and challenges. Meanwhile, the cost of O&M services has been declining over the past few years and the downward trend is expected to continue. However, the cost composition is seeing continuous change due to greater automation and use of advanced tools. Increasing plant sizes and falling tariffs putting pressure on margins has raised expectations levels of the developers. This has made the Indian solar O&M market highly competitive to operate in as developers are expecting higher performance guarantee and plant availability numbers at reduced prices. Thus to survive in the market necessitates best in class service offerings at competitive pricing satisfying the customer expectations.
that can impact the project IRRs significantly through better generation and reduced downtime - over the project lifetime. Secondly, looking at the current growth and government impetus to the solar power sector - industry analysts, expects an addition of around 80-90 GW of solar power capacity by 2022, just short of set targets of 100 GW. Such a kind of growth would open up opportunities of around INR 280-290 crores for the solar power operations and maintenance (O&M) segment at current market rate of O&M services that ranges between 4 to 5 lakh per MW.
Key Market Trends: The solar O&M market in India has matured significantly over the last few years. O&M was often coupled with EPC during the initial years of solar power development in India is
Today, advanced technologies such as drones with infrared thermography, centralised command and control centres, water-free robotic cleaners, and data analysis and visualisation to identify incidents across string arrays and panels are being used across the globe. While, the Indian solar market is relatively new and not much has changed in solar O&M space during these past years and the usage of these advanced technologies has seen a limited penetration in India, so far. Industry experts feel that the time has come that the industry should move beyond the regular O&M practices limiting to optimising plant generation levels. India should start introducing technologically advanced innovations to bring down O&M costs and to keep pace with global levels.
Market Challenges : One of the major challenges faced by the solar O&M in India is grid instability. A grid variation leads to under performance of solar equipment eventually resulting in increased downtime. In addition, with falling tariffs and shrinking margins, there is an increasing pressure to optimise processes in order to optimise costs. The three
www.powerinsight.vision-media.co.in
|
main contributors to the cost are security, site manpower and module cleaning cost. Thus, to stay competitive in the market - dependence on technological alternatives becomes necessary. Meanwhile, a lot many times local issues like theft, vandalism, protests, etc. are also reason for hindrance in smooth functioning of the plant. Thus dedicated efforts are needed to ensure local inclusion. Water sourcing also poses a challenge when it comes to plant maintenance. Keeping solar panels up and running requires cleaning them every fortnight, water for which is finding hard to procure, since most of the solar plants in India are located in arid areas. A study conducted by Bridge to India, recorded ‘very high’ water consumption at plants in Rajasthan, UP, Gujarat, Punjab and Haryana, where a quarter of India’s installed capacity is located. The rising cost of water is threatening the profitability of many projects. Some solar developers in Rajasthan have seen water costs almost doubling in 3-4 years.
Way Forward: India, currently absorbed in chasing 100GW solar targets, is more focused on project development. However, with increasing projects scale and plants getting older, it will become essential for developers to adopt new O&M practices to derive best results. The primary sources of O&M costs are people, vehicles and tools, none of which are getting cheaper over time. Today, solar O&M vendors are turning to technology innovation to move beyond corrective and preventive maintenance to predictive and prescriptive maintenance analytics in order to remain competitive and profitable. Thus, the adoption of better technology aimed at optimisation of O&M services will help opening up the market for technologically and strategically advanced players capable of offering the most cost-effective solutions. n
Power Insight
|
December - January 2019
|
39
Special FEATURE
Challenges for the distributed rooftop PV O&M Companies Authored by : Paras Savsani Manager - Operation & Maintenance at Fourth Partner Energy Private Limited
D
istributed solar solutions (installation of solar within client’s premises over rooftop, ground, carports, floating solar etc) is fast becoming the preferred choice for commercial and industrial clients because it offers upfront savings of 20-60% in energy costs, gives visibility and control over long-term energy costs and serves as means to achieve sustainable goals.
Inadequate off-taker infrastructure: In many cases the cli-
Moreover, when compared to other renewable options, distributed solar offers the benefits of ease of deployment, quick execution, no transmission issues, no land acquisition costs and minimal maintenance. It is no wonder that that the industry has been expanding at a rapid pace, and over the next 3 years it is expected to grow by 5-6 times to about ~15 GW.
ent’s Infrastructure does not confirm to the solar norms. It starts with client’s electrical infrastructure which sometimes causes in voltage fluctuations. To overcome the problem, the inverter starts pushing higher voltage which results in frequent tripping of the inverter. Even poor load balancing at the client’s end leads to inverter tripping and generation loss. Lastly, grid and load fluctuations affect the life and functioning of string inverters.
More so, a large proportion of this portfolio is expected to come from OPEX projects where the off taker enters into a long-term power purchase agreement (PPA) with the project developer who in turn finances and owns the solar plant and is responsible to ensure its upkeep and the generation thereupon. The onus of generating desired ROI (return on investment) thus lies upon the developer.
The above problem can be avoided by undertaking a comprehensive site-survey and ensuring a detailed load analysis is conducted at the client’s facility. Separately, at Fourth Partner Energy, our plant design team is segregated into structure and electrical team with specialist in each team and their designs are required to conform as per a detailed check list.
As one of the leading developers in the country with an experience of having executed over 1700 distributed solar projects across 23 states in India and managing a portfolio of over 150 MWp, through the course of our 8 years journey, we have encountered several challenges and taken several measures to overcome them.
Insufficient module cleaning: Perhaps, one of the simplest yet most ignored factor is timely cleaning of modules. Losses due to soiling (dust and bird droppings) depend upon the environmental conditions, pollution, and cleaning strategy as defined in O&M contract. The frequency of cleaning in areas prone to high dust (such as ceramic factories) should be higher rather than be subjected to some thumb rule as weekly / fortnightly.
Challenges: Shadow – the biggest enemy of a rooftop solar plant : Shadows
that can be caused due to surrounding obstructions such as chimney, pillars, surrounding building, overhead cables, surrounding vegetation, trees etc. Sometimes, in order to adhere by client’s requirements and maximise the capacity at their location, the plants are laid over regions of partial shadow. However, the resulting loss of generation due to the shadow effect can be huge and reduce your ROI drastically. We use state-of-the-art software which tracks sun’s move-
40
ment as per time of the day and also factors in different season and thereupon conduct 3D shadow analysis to design our plants optimally. Chemical treatment can help shunt the pace of growth of vegetation. Also, wherever applicable, regular trimming of trees is undertaken to ensure they do not cast shadows over the solar plant.
|
December - January 2019
|
Power Insight
|
One missed cycle of module cleaning, results in around 3%5% drop in generation and the loss on annual basis can be as high as 15% due to infrequent / ineffective cleaning. The above problem can be combatted by having robust cleaning contracts. Separately, with the assistance of our in-house plant monitoring app, we monitor plant generation and use generation from plants in close proxy as a metrics to identify plants where generation is not up to mark. We are also testing waterless robotic cleaning which will help
www.powerinsight.vision-media.co.in
Special FEATURE eliminate the use of water and stand to be more efficient than human labour.
Close proximity of Service Team to solar plants: During downtimes, the time taken to resolve the problem can play a huge factor in curbing the loss thereof. The resolution time is usually based on proximity of service engineer from the plant (time to travel) and technical prowess. At Fourth Partner Energy, we maintain dedicated service teams in 10 strategic locations across the length and breadth of India such that the team can reach the plants within 24 hours in case of any technical issue. Also, each engineer is subjected to extensive training to ensure their technical prowess. We also train client’s personals to tackle minor regular run of the mill problems.
Inadequate stocking of spare parts stock at individual sites and lack of standardisation : One of the challenges that distribut-
ed solar plants pose is that they are too small in size to maintain an adequate stock of spare parts. Moreover, they lack standardisation in terms of make of modules and inverters.
At Fourth Partner Energy, we conduct detailed evaluation of our suppliers and their support capabilities before we onboard them as registered vendors.
Security and Safety : Security of plant and components is critical as they may be subject to theft or vandalism. There might be adverse impact due to negligence of staff within the offtaker’s premises or due to wildlife surrounding the property. Presence of rats, pigeons, squirrels etc can cause damage to the cables in the plant.
As separate security personnel cannot be assigned to each rooftop asset, off-takers generally assume the responsibility of the safety of the asset, since they already maintain security at their premises. This is usually factored in the PPA.
Single point DISCOM Termination: In some states such as Maharashtra and Karnataka, the DISCOM permits only a single termination point for grid level injection. Most rooftop systems are distributed across multiple roofs/areas. This requires the developers to lay cables from each roof to the single point termination which leads to cable losses.
While stocking spare parts at the individual sites is not practical, we maintain adequate inventories at our strategically located stockyards in Gurgaon, Pune and Hyderabad to ensure the transit time is minimised as far as possible.
Standardisation of policy across states and make them more developer-friendly is required to overcome this problem.
Lastly, it is often wrongly assumed that only routine O&M costs will be incurred for entire contract period. Project owners must budget for refurbishment of projects in order to improve plant conditions and performance.
The following are a few policy measures that can help remove operational hurdles and support the growth of distributed solar industry:
Inadequate PF control systems: Power factor is the ratio
between the utilized power and the generated power. If the load is resistive, i.e., when there is no reactive power, the entire power generated is utilized. However, when the load is other than resistive, some generated power is consumed as reactive power and leads to power loss.
Policy support expected:
n Credit risk mitigation initiatives like instituting a CIBIL like score for utility payments and disconnection by DISCOMS on defaults will substantially improve the confidence of developers for installing OPEX projects in the premises of off-takers.
Solar power plants always inject active power and the requirement of active power from grid reduces but the overall reactive power remains the same. In places where inadequate PF systems are installed, this phenomenon leads to power losses.
n In the recent time, some of the government tenders give unfair benefit to the offtakers where deemed generation due to power outage or DG running is not applicable. This leads to the Developers taking a hit on their P&L due to no fault of theirs. The PPA needs to be amended to include deemed generation for effective pricing and control.
The above inefficiency can be combated by installing adequate capacitor bank into its APFC panel with the correct reactive power requirements.
n CEIG and net-metering process needs to be streamlined in order to ensure that plants can generate to their full capacity soon after installation of plant is completed.
Underdeveloped OEM technical support and expertise : The distributed solar energy industry is growing rapidly, which has attracted many players to enter manufacturing of major components like modules, inverters etc. While a lot of stress is laid upon the quality of components, many developers tend to oversee their service reliability and other aspects such as service network, technical skill, timely software/firmware updates, etc. This results in delays in providing timely service during downtime which can lead to unnecessary losses. This even extends to support om timely replacement of equipment and parts that fall under warranty.
n In states such as states such as Maharashtra and Karnataka, DISCOMs should allow for multiple termination within common premises in order to reduce cable losses. n There is a serious lack of technically skilled labour in the market. Considering the scale at which the solar market is growing and the opportunities it presents for job creation, the government and private institutes should initiate vocational courses where the necessary technical skillsets are imparted and industry-ready labour is churned out. n
www.powerinsight.vision-media.co.in
|
Power Insight
|
December - January 2019
|
41
cOMMUNICATION FEATURE
Intersolar India 2018
Successful conclusion of Intersolar India’s 10th Anniversary and bright outlook for the future with “The smarter E India”
I
ntersolar India, the most pioneering Exhibition and Conference for the Solar Industry closed its doors on December 13, 2018 and has well arrived in Karnataka’s technology hub. Business professionals and exhibitors from 13 countries had a vast time to network on various occasions.
Show Highlights Intersolar India 2018 celebrated its 10th anniversary in the capital city Bangalore of the key solar state Karnataka. Moving south was a strategic decision to follow the current market trends and was recieved with a great success. The event kicked off on December 11, 2018 with the official lamp lighting and opening ceremony that comprised keynote speeches of government officials and solar experts. The first exhibition and conference day ended with the 10th Anniversary networking event that welcomed key VIPs, conference delegates and exhibitors. The high-level event program and special knowledge partner workshops were packed with exciting and diversified topics that gave the delegates numerous opportunities to get insights on the latest trends and key drivers of the solar and energy storage industries during all 3-days at the conference
42
|
December - January 2019
|
centre and at the free of charge Innovation Stage on the exhibition floor. A complimentary white paper on the India Solar Market has been released by Intersolar India and its knowledge partner Mercom India Research at this year’s event, providing an in-depth look at the market drivers and challenges facing the Indian solar market. The Buyer-Seller Forum again increased focused B2B interaction during prescheduled business meetings between exhibitors and key buyers. Many country and state pavilions were present from China, Germany, Korea, Switzerland and Indian State Kerala. Furthermore, 5 start-ups have been welcomed at the Start-Up Pavilion showcasing their innovations and ideas. Intersolar India once again provided a perfect platform for all industry professionals to meet, exchange ideas, discuss challenges and solutions and promote the interest of the solar, energy storage and electric mobility industry.
The smarter E India The transition to renewable energy, decarbonization and digitalization is bringing lasting changes to the energy world. A new, decentralized system is now emerging which relies primarily on photovoltaics and wind power and
Power Insight
|
has many more active participants. An increasing number of homeowners and companies are becoming prosumers – generating, consuming and storing their own energy. In addition, the previously separate sectors of electricity, heating, cooling and mobility are becoming more and more interconnected. In November 2019 Intersolar India will return to Bangalore and deliver an even deeper view into the renewable energy future: It will be part of “The smarter E India” - India’s innovation hub for the new energy world - addressing the needs of a changing energy world in India. It will presents cross-sector energy solutions and technologies and reflects the interaction of the solar, energy storage and electric mobility industry. The smarter E India will bring together the renowned Intersolar India, ees India and Power2Drive India. The exhibition trio will take place at the Bangalore International Exhibition Centre in the capital state of Karnataka on November 27-29, 2019. With events spanning four continents, Intersolar is the world’s leading exhibition series for the solar industry and its partners. It unites people and companies from around the world with the aim of increasing the share of solar power in our energy supply. n
www.powerinsight.vision-media.co.in
www.powerinsight.vision-media.co.in
|
Power Insight
|
December - January 2019
|
43
Communication Features HPL Electric & Power introduces “Solar Inverter” range
H
from other OFF grid inverters.
PL Electric & Power an established electric equipment manufacturing company in India, with a diverse manufacturing portfolio of electric equipment, catering to consumer and institutional customers in the electrical equipment industry - in its endeavour to provide affordable & renewable energy products, has introduced the Solar Inverter range.
It comes infused with remote monitoring features that enable the user to use the product at any location and also ensures higher security. The inverter also has a twin MPPT charge controller that helps to optimize sun light utilization at all times with IP 65 being embedded in its design makes it suitable for outdoor applications. This transformer less solar inverter projects upto 97% efficiency thus making it cost effective and durable in the long run.
The Solar inverter comes equipped with an upgraded design and advanced technology ensuring higher performance thus, helping to maximize the total solar system power production. The inverter runs on solar power and is highly cost effective being a battery less inverter, that distinct it
The company’s manufacturing capabilities are supported by a large sales and distribution network with a pan-India presence comprising of 2000+ dealers & distributors & 27000+ that are managed by the carrying and forwarding agents.. They currently manufacture and sell its products under the umbrella brand ‘HPL’.. n
Solar – A Green Energy Alternate to Augment Dairy Farmers’ Income
S
hri Raj Kumar Singh, Hon’ble Minister of State for Power and New & Renewable Energy, Govt of India inaugurated NDDB’s workshop titled “Solar – A Green Energy Alternate to Augment Dairy Farmers’ Income” at the SCOPE Convention Centre, New Delhi.
Officials from MNRE, NITI Aayog, NDDB & its subsidiaries; MDs/CEOs of select dairy cooperatives/producer companies; industry representatives; representatives from donor agencies like World Bank, SDC and KFW; officials from research & consultancy firms; representatives from DISCOMs and Industry representative bodies participated in the workshop. In his inaugural address, the Hon’ble Union Minister said that the entire dairy value chain from village level milk pooling points to product delivery is energy intensive. Extensive use of solar energy in dairy value chain can significantly reduce operational cost and ensure usage of clean energy. Shri Raj Kumar Singh said that NDDB with its mandate of promoting cooperative strategy has played a pivotal role in creating a pan India network of dairy cooperatives. Though a lot needs to be done to curb air pollution, we sincerely believe that no problem is too big if all stakeholders come together and are determined to solve it. Through this initiative, we not only hope to create a transformational
44
|
December - January 2019
|
Power Insight
|
impact, but also create awareness for the need of a cleaner environment.” The Union Minister stressed on the need of creating an enabling policy framework to further propagate usage of solar energy utilising the dairy cooperative network for the benefits of farmers. He conveyed that the Union Govt is promoting solar pumps to ensure usage of clean energy and at the same time reduce the agricultural subsidy burden. GRID connected solar pumps is an alternative which while ensuring water for free to farmers will help them earn additional income through selling surplus energy. In his welcome address, Shri Dilip Rath, Chairman, NDDB said that NDDB has started application of Concentrated Solar Thermal (CST) technology in dairy processing plants to partly address the need of thermal energy in dairy cooperatives. CST can reduce the annual heat demand of the processing plant from 5 to 15per cent. With the help of capital subsidy support from MNRE and UNDP, NDDB have completed 15 CST installations in processing plants of dairy cooperatives across four states of Maharashtra, Punjab, Gujarat and Karnataka. With successful experimentation of installing GRID connected solar PV systems with storage (if required) in village level dairy cooperatives/milk collection centres, NDDB has started propagation of solar energy run village cooperatives across the country. Support under National Dairy Plan I was also provided to 125 such installations across 18 states and results have been encouraging. A uniform policy framework with suitable grant support can help solarise entire village level dairy operations, which would reduce energy cost and contribute significantly to environment protection. n
www.powerinsight.vision-media.co.in
Communication Features 54th SKOCH Summit takes stock of power sector reforms in India
S
KOCH Group, India’s topmost independent thinktank for socio-economic issues with a focus on inclusive growth, organized 54th SKOCH Summit on the state of Power, Oil and Gas to take stock of the power sector and discuss the reforms carried out in the last four years of the current government. The Summit witnessed a large gathering of eminent industry leaders and dignitaries from state and central government organizations. In his opening remarks, Sameer Kochhar, Chairman of SKOCH Group and an eminent reforms historian said, “Did Modi government deliver? As author of ModiNomics, this is the question I am often asked these days. With four and a half years of current government in power, it is critical for all of us to think that how the report card looks like. I promise to all of you that much before elections, my book “Did ModiNomics deliver?” will answer this big question. As a run-up to the upcoming elections, we are organizing a series of conferences and today’s summit is an attempt to discuss the emerging policies, reforms, challenges and innovations that made power sector one of the most talked sector. We also tend to salute the unsung heroes of various sectoral reforms. As per an in-depth and extensive
survey done by SKOCH Group, Renewable Energy has emerged as the best performing sector and ONGC Videsh as the best performing company in the segment.” Receiving the SKOCH Award, Mr. Anand Kumar, Secretary, Ministry of New & Renewable Energy said, “On this occasion, when Ministry of New & Renewable Energy has been recognized as one of the major player in power sector, we feel humble. We accept this award with a deep sense of gratitude. India made a commitment to the world that by 2030, 40% of our electric capacity would come from non fossil fuels and we will install 175 GW of Renewable Capacity by 2022. Today India is leading the growth in renewable energy on the world map. We have already installed 73.35 GW, projects worth 21.5 GW are under various stages of implementation and projects amounting to another 25 GW are under various stages of bidding.” SKOCH Group research is accepted across political spectrum and is used for parliamentary replies as well as policy formulation. SKOCH Group has instituted India’s highest independent civilian honours in the field of governance, finance, technology, economics and social sector. n
Senvion’s total order book in India exceeds 1 GW
S
envion has signed a conditional 300 MW contract with alfanar on the supply and installation of 131 Senvion 2.3M130 turbines for the Bhuj Wind Project. Alfanar is one of the leading developers for clean energy in Asia, Africa and Europe. The wind project in Gujarat is part of the Round 5 bidding of SECI - company of the MNRE, GoI. The project scope includes a full EPC and will be commissioned in the second quarter of 2020. alfanar and Senvion also signed a 10-year comprehensive operations and maintenance (O&M) contract. When connected to grid, this project will generate enough clean power to supply the power needs of almost 290,000 households. David Hardy, Executive Director and CSO of Senvion, said: “We are very pleased to have signed another order with alfanar. The order shows alfanar’s confidence in Senvion’s product portfolio and its suitability for different requirements. Senvion is proud of its contribution towards the vision of the Indian government to achieve an installed
capacity of 175 GW of renewable energy by 2022.” Jamal M. Wadi, CEO of alfanar Energy, said: “We have been advocating green energy and acknowledging its importance in mitigating the challenges of global warming. Our sustained partnership with Senvion, a leader in the wind energy segment, helps us in this green endeavour. We have a great working relationship with them and hope to continue this going forward.” Amit Kansal, CEO and Managing Director of Senvion India, said: “We thank alfanar for the trusting cooperation. To have won an experienced and leading company as alfanar is an important recognition for Senvion. We are very glad to further expand our market presence in India with such a highly respected partner. “ In 2018 Senvion India has built up a total turbine order book (firm and conditional) that now exceeds 1 GW of future installed capacity and additional supporting service contracts.n
www.powerinsight.vision-media.co.in
|
Power Insight
|
December - January 2019
|
45
Events Diary
Save The Dates 21-23
Feb 2019
2nd Renewable Energy Expo Chennai Trade Centre, Chennai, India
April 2019
Bombay Exhibition Centre (BEC) , Mumbai, India
Second Edition of RENEWABLE ENERGY EXPO will be held on 21st, 22nd & 23rd February 2019 at Chennai Trade Centre, Nandambakkam, Chennai. Organised by Renewable Energy Expo Team, a division of WT, the scope of exhibition is to stimulate the growth of renewable in the region through collaboration of technology and product sharing.
Intersolar India West is taking place in Mumbai, Maharashtra - India’s key western solar markets as the Indian state Maharashtra is the leading solar rooftop market and and being interesting and very promising market in the future. The event has a focus on the areas of photovoltaics, PV production and solar thermal technologies.
For Details Visit : http://www. renewableenergyexpo.biz
For Details Visit : https://www.intersolar.in/en/home.html
15-17
Apr 2019
Grid Tech 2019
India Trade Promotion Organisation Pragati Madian,New Delhi, India
POWERGRID with the support of Ministry of Power and in association with CBIP and IEEMA is bringing its 6th International Exhibition and Conference GRIDTECH-2019 from 3rd to 5th April 2019 at ITPO, Pragati Maidan, New Delhi on new technologies in Transmission, Distribution, Renewable Integration, Smart Grid, Communication etc. For Details Visit : https://apps.powergridindia.com/gridtech/default
22-24
May 2019
46
04-05
Intersolar India WEST 2019
Solar India 2019
19-20
Apr 2018
Hitex, Hydreabad , Hydreabad , India
RenewX 2019 intends to accelerate the growth of the South Indian Renewable Energy and contribute to the country’s sustainable economic development. The Expo will provide an excellent platform for organizations to capitalize & penetrate into the lucrative south Indian renewable energy market and will bring together professionals from the renewable energy industry. For Details Visit : http://www. renewx.in
05-07
Pragati Maidan, New Delhi, India
RenewX India 2019
June 2019
World Environment Expo 2019 Pragati Maidan, New Delhi, India
Realising the immense potential and emerging opportunities existing in solar industry. Exhibitions India Group is organising the 4th edition of Solar India 2019 expo which will be held at Pragati Maidan, New Delhi from 22-24 May 2019. The theme of the exhibition and conference is “Solar Energy for a Sustainable Future.”
WORLD ENVIRONMENT EXPO (WEE 2019) is a b2b business platform for the national and international environment technology and equipment manufacturers to find out the new business opportunities worldwide. This event is a great opportunity to network with the Industry. WEE 2019 is a premium trade exhibition for products and services dedicated to the environment and its protection.
For Details Visit : http://www. solarindiaexpo.com
For Details Visit : http://www.worldenvironment.in
|
December - January 2019
|
Power Insight
|
www.powerinsight.vision-media.co.in
ANSALI GROUP BH OVER Years of Quality, Innovation and Reliability
75
Profit from our cables. Become our dealer. Whether power or telecom, household or IT, industrial or broadcast, OEM or after-market, you can always rely on Bhansali cables for sustained performance. No wonder then that you are always a winner with our quality. So, go ahead and switch to Bhansali.
A-38/4 Mayapuri Industrial Area Phase I, New Delhi 110 064 +91 11 28113664/65 • info@bhansali.net • www.bhansali.net
LOOKING FOR GROWTH OPPORTUNITIES? BECOME OUR DEALER IN UNREPRESENTED AREAS. CONTACT US TODAY!
47
Single/Multi Core Flexible Wires • House Wires • Telephone & Switchboard CablesInsight • CCTV |Cables • Co-axial Cables • LAN www.powerinsight.vision-media.co.in | Power December - January 2019 | Cables Instrumentation Cables • LT Power & Control Cables • Solar Cables • Submersible Cables • Speaker Cables
48
|
December - January 2019
|
Power Insight
|
www.powerinsight.vision-media.co.in