SolarQuarter Magazine August 2017

REI 2017 EXPO SPECIAL

www.solarquarter.com

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Volume 06. l Issue 8

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August 2017

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o xp E 7 7 01 201 2 ia ep Ind th S y 2 rg ne 0th-2 E le :2 ab ime w T e en 17 R 0. th 11 th:1 o Bo

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INDIA’S MOST READ SOLAR ENERGY MAGAZINE

Index

To book your space in the upcoming issue, please contact: Vipul Gulati / Vikas Khadtale M: +91 9920917193 / 8850567539  E: vipul@firstviewgroup.com / bd@firstviewgroup.

EXCLUSIVE INTERVIEWS

Mr. Mukesh Gupta, Mr. Collin Wang, BP International Co-Founder and Sales and Marketing, Managing Director, ZN Shine PV-Tech Co. Ltd Micromax Energy Ltd.

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40

Mr. Nick Boyle, Group CEO, Light Source

ADVERTISER’S INDEX

News ....................................................................... 6

� International

News ....................................................... 14

Ad Names Jinko

INDUSTRY INSIGHTS � Best

Practice Guidelines for Risk Identification, Assessment and Mitigation........................................ 10

� Socomec

has recently launched a new modular state of art Trip version, that incorporates class leading performance in a compact frame...........13

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46

44

NEWS AT GLANCE � Indian

Mr. Simarpreet Singh, Head Mr. Vineet Meetal, Director, Strategy, Navitas Hartek Group

Page no.

1

Ganges

Gatefold

Ganges

Gatefold

L&T Constructions

2

G-Sola

3

Micromax

5

TMEIC

7

Sova Solar

8

Goldie

9

Hartek

11

Socomec

12

Tata International

13

Novus

15

Goodwee

17

West Coast Engineering Works

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Ginlong

19

Tata Bluescope

20

Locus

21

STS

23

Sungrow

29

Navitas

30

Raychem

31

Relyon Solar (SiLeaf)

33

Rays Power Infra

35

Lapp India

37

Hero Future

38

Hero Future

39

Linuo

41

Phoenix

43

OPINION

Neosilica Technologies

45

� Scope,

Infineon

47

Su-kam

49

Waaree

51

Excelsior / Akshaya

52

Benara

53

� Top

5 Largest Solar Power Plants of the World.. 28

� Solar

Energy’s role in India’s developmen............ 36

� Current

Trends in Energy Storage Space............... 36

� Undulation

Management with Trackers ............... 52

� China’s

Investments To Scale Up In Indian PV Sector............................................................. 54

� Industrial

IOT for Utility-Scale Solar Plant SCADA & Grid Integration.......................................... 56

� Solar

PV Projects –The Case for Independent Construction Monitoring.................................... 62-63

� Solar

capacity has been growing at a jaw dropping pace in India......................................... 64-65

� Balance

of System to be the key to further reduction in solar development cost ............ 68-69

� Advances

in PV technology........................................ 71

INDUSTRY PERSPECTIVE � Financing

renewable energy projects through bond markets in India................................. 54

TECH INSIGHTS � Battery �

markets and outlook..................................... 12

Table 4.5 - Types of storage technologies.......... 29

ANALYSIS � Requirements

for Solar PV Development ............ 18

� Global

Growth of Auctions in the Solar Sector .............................................................32-34

� Value

Creation in the Photovoltaic Sector .......... 66

GLOBAL INSIGHT � Solar

Energy Projections Rise for 2017.................. 60

Prospects & benefits for greenfield Hybrid projects with Energy Storage...................... 30

INFOGRAPHICS � On

Pages....................................... 16,

20, 59, 67, 72

SQ POWER 100 LIST

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Mr. Vivek Benara, Director, Benara Solar Pvt. Ltd.

Mr. Kapil Maheshwari, CEO, Hinduja Renewables

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55

ERDA

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QC

56

Redington

57

Jakson

59

Newtronics / Paradise

60

Nano Solar

61

Parco Engineers / Nimoto

62

Sunslew

63

Insolation

65

Avi solar

67

MECO

68

Apar

69

Solar Quarter Event Calendar

70

Webdyn

71

Waaree

73

ZN shine

74

Trina Solar

75

Vikram

76

PUBLISHING: VIJAY KUMAR

EDITOR: VARUN GULATI

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HYBRID

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Indian News INDIA ISSUES NEW SPECIFICATIONS FOR SOLAR POWER MODULES

an effort to attract private investment in the electricity generation sector,

India’s Ministry of New and Renewable Energy (MNRE) has issued an order for new set of standard specifications for solar Photo-Voltaic (PV) modules which will come into force after one year from the date of their notification on Wednesday.

to enter into agreements with independent power producers (IPPs) for

”This Order may be called the Solar Photovoltaics, Systems, Devices and Components Goods (Requirements for Compulsory Registration) Order, 2017. It shall come into force on the expiry of one year from the date of its publication in the Official Gazette,” the ministry’s notification said.

thereby encouraging competition. OA allows bulk consumers (>1 MW) procuring electricity via power trading markets. The involved parties would use the existing electricity network by paying a nominal fee, per kWh, to the operators. In an effort to foster growth of renewable energy (RE) in Karnataka, the state government incorporated a clause in its RE policy in 2014 allowing OA for solar and wind without paying any fee till March 2018. The foundation has been laid for industries and others to access stable power at lower rates. However, implementation of OA in any state

RISING CHINESE MODULE PRICES A CHALLENGE FOR INDIA’S SOLAR INDUSTRY This may be a new challenge for the Indian solar industry. Will solar power tariffs, which have headed sharply lower to hover around Rs.2.50 per unit in the recent past, rise again? This price fall was based on the corresponding fall in the price of Chinese modules. It may no longer be so.

After falling by nearly 5 per cent in the second quarter of 2017, for the first time in years, the average selling price (ASP) of Chinese modules is increasing quarter-over-quarter in India, rising by almost 12 per cent as of August 2017 compared to Q2 2017. By comparison, module ASPs have dropped by 12 per cent from Q2 2016 to Q3 2016, according to a report by Mercom India.

“This is the worst-case scenario that Mercom has been warning the market about. For the past two years, we have stressed that aggressive bidding in an effort to capture market share, with the assumption that component costs will continue to fall no matter what, is a risky strategy,”

CHINESE SOLAR MODULE FIRMS RENEGING ON INDIA CONTRACTS In what has come as a shock to India’s solar power developers, Chinese module manufacturers are reneging on their contracts and are demanding an upward price revision to supply the equipment already contracted for, said several people aware of the development. Any price increase will impact the internal rate of return (IRR) from such projects, many of which have already signed power purchase agreements (PPAs). Some Chinese suppliers have sought an increase of around 6 cents per watt in module prices in a market which they dominate. Module prices are currently around 37 cents per watt. Modules account for nearly 60% of a solar power project’s total cost.

“Many Chinese manufacturers are going back on their contracts. They are completely reneging on the contracts signed with Indian developers,” said Hero Future Energies chief executive officer (CEO) Sunil Jain.

-- whether for solar or from any other source -- has not been smooth.

ENERPARC INDIA COMMISSIONS ROOFTOP SOLAR POWER PLANT AT KAESER COMPRESSORS Kaeser Compressors India Private Limited, a subsidiary of global leader, supplier of compressors and compressed air products KAESER KOMPRESSOREN SE, Germany announced commissioning of 120kWp captive Rooftop Solar PV power plant at their state of the art manufacturing facility at Pune in state of Maharashtra.

The whole concept of solar installation was to help Kaeser Compressors in energy savings and reduce its dependency on the grid energy, although the available roof space at Kaeser plant was more compared to the installed capacity, Enerparc with its team of expert engineer’s carried a detailed capacity analysis in terms of hourly and daily load consumption of the factory and narrowed to a capacity number of 120kWp with net metering, so that the excess power generated during the weekly off days can be exported back to the MSEDCL grid thus giving Kaeser Compressor, further benefit in addition to savings in energy tariffs.

MAHINDRA SUSTEN LAUNCHES INDIA’S FIRST MOBILE PV TESTING LAB Mahindra Susten, one of India’s largest and most trusted solar EPC Company, has announced the launch of India’s first Mobile PV laboratory for testing of the Solar PV modules on site.

The mobile PV lab, developed in-house, has an innovative design, which combines all the key tests required for PV modules in a compact lab. This

MADHYA PRADESH JUNKS PPAS OF SKY POWER SOLAR’S PROJECTS The Madhya Pradesh Power Management Company Limited (MPPMCL) had junked the power purchase agreements of Sky Power Solar’s projects citing delays in commissioning of projects.

In a letter dated August 11, MPPMCL rejected Power Solar for delays in commissioning of said, MPPMCL in its letter has said that Sky fulfilment of required conditions even during of 9 months.

the justification given by Sky the project. Official sources Power has failed to achieve the permissible delay period

MPPMCL also decided to encash the ₹15 crore Contract Performance Guarantee for the 50 MW solar power project that was to be located at Ghatakhedi village of Rajgarh district. Sky Power solar had committed a tariff of ₹ 5.109 per unit.

According to the initial commitment that was made in September 2015, Sky Power Solar was to commission the 50 MW project by May 11 this year. There was also a permissible delay period of 116 days during which portions of the performance guarantee was encashed.

STATE DISCOMS PLAYING SPOILER ON OPEN ACCESS FOR SOLAR POWER There is an increasing opportunity to innovate in solar markets in India thanks to the rapidly declining price of photovoltaics (PV). While largescale ground-mounted solar parks are seeing tremendous growth, an area that still remains largely untapped is open access (OA) for the sector. OA was one of the main components of the Electricity Act (2003), introduced in

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solution will make world-class testing facilities available to solar asset developers, EPCs and the O&M operators at the location of their own plant.

(Provisional patent No. 201721017370) PV modules account for ~ 70% of the capex for a Solar PV plant, and underperformance of the modules can be the single largest reason why an asset owner’s (lenders) financial model and actual cash flows may not match. Early detection can lead to immediate control of losses or redressal.

The role of the PV testing lab is critical across the life cycle of the Solar PV plant, right from construction to the end of life. The Susten Diagnostics fleet, are operated by the O&M and Analytics division of Mahindra Susten, which is was also adjudged Gold award winner “O&M Contractor of the Year” – Utility Scale, RE Assets, 2017.

WAAREE ANNOUNCES SHIPMENT OF 15MW HIGH EFFICIENCY MONO SOLAR MODULES FOR NSCBI AIRPORT, KOLKATA Waaree Energies Ltd a globally recognized leading solar energy solutions provider, specializing in high efficiency PV module manufacturers has supplied 15 MWp 330 watt solar panels for Netaji Subhash Chandra Bose International Airport, Kolkata, West Bengal.These solar panels are special designed to meet anti-glare requirements. Waaree has supplied solar panels to various other airports in India and aboard too.

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Industry Insights BEST PRACTICE GUIDELINES FOR RISK IDENTIFICATION, ASSESSMENT AND MITIGATION INTRODUCTION Solar Bankability is an active quality management process where all stakeholders in the approval process of a PV project attempt to identify potential legal, technical and economic risks through the entire project lifecycle. These risks need to be quantitatively and qualitatively assessed, managed and controlled.

Despite a wide overlap in this quality management process, the focus and the assessment criteria will vary depending on whether the stakeholder represents an investor, a bank, an insurance company or a regulatory body, as illustrated in Figure 1 below.

stakeholders in the PV industry for their inputs during this process. These stakeholders include financial market actors, valuation and standardisation entities, building and PV plant owners, component manufacturers, energy prosumers and policy makers.

In risk identification, we have compiled technical risks caused by incorrect technical assumptions in the calculation of the PV levelized cost of electricity (LCOE), and technical risks associated with PV plant failures.

The LCOE technical assumption risks were obtained from gap analyses on the technical assumptions used in samples of present-day PV financial models and

Figure 1: Solar bankability assessment from different stakeholder’s perspectives Stakeholders bankability assessment

Investor “Investibility”

Check list/ due diligence

Bank “Bankability”

Legal

Project life cycle

Development

Contracting parties

Building/ site owner

Component suppliers

Module

Regulatory Body “Efficiency of infrastructure”

Insurance “Insurability”

Technical

Design

Installations

Project developer

Inverter

In the Solar Bankability project, we have developed a set of best-practice guidelines and useful tools which could serve two functions: first, as de-risking tools to reduce the risks associated with investments in PV projects, and second, as standardisation tools which serve as guidelines for common standards for professional risk assessment in the PV investment sector. These guidelines and tools are to assist stakeholders to develop their own individual risk management strategy along the lifecycle of a PV project through the following steps (Figure 2):

Economical

Operations

EPC / installer

O&M

Mounting system

Balance of system

Decommissioning

Decommissioning

Monitoring

plant yield estimation reports. The plant technical risks were collected by going through databases of technical failures in samples of hundreds of MWp of PV plants and tabulating the different failures into a Risk Matrix organised by the project phases and plant components.

Focus was placed on technical risks during planning and during operation and maintenance, and those risks which are relevant to the calculation of the PV LCOE. The results of the risk identification work are two tools – a list of top 20 LCOE technical risks and a technical

Figure 2: Potential plan for the management of technical PV project risks Prevent

Residual risks

Bear Identified risks

Identified risks

Transfer Identified risks

Identified risks

TECHNICAL RISKS DURING PLANNING AND DURING OPERATION AND MAINTENANCE, AND THOSE RISKS WHICH ARE RELEVANT TO THE CALCULATION OF THE PV LCOE. new methodology (CPN methodology) which assigns a cost priority number (CPN) to each risk based on the associated economic impact on plant operation, an LCOE sensitivity analysis excel calculation tool, and cash flow risk categorisation. These tools will serve stakeholders in assessing the different technical risks and their impacts on the operation costs of their PV plants and what electricity cost should be set for profitable investment.

For risk management, a list of eight mitigation measures were put forward. Furthermore, the effectiveness of the mitigation measures was assessed by evaluating how their implementation changes the cost priority number and PV LCOE. Scenarios consisting of different mitigation measure combinations and market segments were studied and the mitigation measures were ranked based on their effectiveness in reducing the CPN and LCOE. For mitigation measures to reduce the uncertainty in the yield estimation, several scenarios on the P50 and P90 values were simulated.

Since the suggested mitigation measures consist of solutions at different phases of PV project lifecycle, the analyses of their effectiveness also allow for assessing the best PV project phase for implementation, thus the risk management is achieved by transferring risk from one actor to another. The transfer of risks can help to allocate these risks to those parties, which have the best control of each risk. Finally, we have developed six best-practice checklists relevant for EPC and O&M contracting, and yield estimation. The list of mitigation measures and the six best-practice checklists will assist market actors from PV system designers to plant owner to lenders and investors in minimising risks due to improper yield estimation and improper settings of EPC and O&M contracts.

For risk controlling, new financial market regulations have been introduced after the 2008 financial crisis to improve the transparency and stability for institutional investors from the banking, insurance and investment fund sectors. These enhanced controlling and reporting requirements apply also to large-scale PV investments.

The overview of these regulations is summarised and presented for informative purpose in the Solar Bankability project.

Reduce

Initial risks

FOCUS WAS PLACED ON

Unidentified risks (gaps)

IN RISK IDENTIFICATION, WE HAVE COMPILED TECHNICAL RISKS CAUSED BY INCORRECT TECHNICAL ASSUMPTIONS

� Risk identification; � Risk assessment; � Risk management; � Risk controlling.

These tools and guidelines were developed based on market data from historical due diligence, operation and maintenance records, as well as damage and claims reports. We have also engaged different relevant

Risk Matrix, which could be used by stakeholders such as PV plant component suppliers, EPC contractors, and O&M operators.

For risk assessment, we evaluated the risks in terms of how they impact i) the initial yield estimate (for risks from uncertainty during planning), ii) costs during operation and maintenance phase, and iii) PV LCOE. Three tools were developed for risk assessment: a

IN THE CALCULATION OF THE PV LEVELIZED COST OF ELECTRICITY (LCOE), AND TECHNICAL RISKS ASSOCIATED WITH PV PLANT FAILURES. Credits: Solar Bankability - www.solarbankability.eu

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R

TM

MAKING YOUR FUTURE POWERFUL

1 GW+

15 MW+

SOLAR GRID orders in 16-17

ROOFTOP SOLAR EXPERIENCE

ENGINEERING | RENEWABLES | TECHNOLOGY | CONSTRUCTION | FUEL | MANUFACTURING www.hartek.com

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Industry Insights SOCOMEC HAS RECENTLY LAUNCHED A NEW MODULAR STATE OF ART TRIP VERSION, THAT INCORPORATES CLASS LEADING PERFORMANCE IN A COMPACT FRAME Socomec innovative PV switching technology, offers a wide variety of switching solutions for use inside Array Junction box; String Combiner box and for safety DC side isolation of Solar Inverter.

The versatile PV product range spans across applications towards isolation of rooftop installation entailing 600Vdc as well as for ground mounted solar PV system, having 1000Vdc as well as the latest grid connected 1500Vdc systems. In addition to the most commonly used manual PV isolator, then the remotely operated motorized versions, Socomec has recently launched a new modular state of art Trip version, that incorporates class leading performance in a compact frame.

Typically, the 1000Vdc PV rated Isolators are available in 4pole execution wherein, sets of poles are connected in series via shorting links, for easy of positive (+ ve) and negative (-ve) PV cable termination. This design of PV switches relies on integrated Arc chutes to direct the flow of the PV Arc into the Arch chamber for a quick and effective dissipation. The design qualifies for 250Vdc breaking per pole. While further enhancing the operational performance envelope that is benchmarked with reference to the best that technological innovation may help achieve, there is a new range of PV Isolators that are even more compact, completely avoiding the shorting links, enabling 1000Vdc design with just 2 real poles. The exceedingly high 500Vdc/pole voltage break is achieved by a unique patented Magnet based

Arc chute, that effectively utilizes the Lorentz law for a quick and reliable arc extinction. The same design philosophy is effectively employed in the design of 1500Vdc PV isolators.

Both the designs are capable of proactively interrupting the Critical current and actually meet or exceed the stringent guidelines that are set forth in the IEC standards, associated with the Switch deration; self-generated heat dissipation, etc. However, the unique 2P, 1000Vdc design in fact Ups the ante and consolidates efficiency by offering well contained watt loss figures; nominal performance without any need of deration; option to have External operation handle that is tested up to UV 4X and with the operator safety factor well pronounced by an exceedingly optimized creepage distance that far exceeds the criteria set forth in the applicable switching standard, IEC 60947-3.

All this to offer valued a tough, reliable, aesthetically proportioned, ergonomic and energy efficient Isolation device for all direct and indirect customers in the entire PV value chain, be that System integrators, EPC Contractors, O&M agencies or the Promoters and End Users. There is no denying the booster shot in the arm by having an underlying device that is completely safe and maintenance free, giving an assurance of long periods of reliable performance and high PV power availability, thereby enhancing the plant efficiency and reducing the pay backs.

THE VERSATILE PV PRODUCT RANGE SPANS ACROSS APPLICATIONS TOWARDS ISOLATION OF ROOFTOP INSTALLATION ENTAILING 600VDC AS WELL AS FOR GROUND MOUNTED SOLAR PV SYSTEM, HAVING 1000VDC AS WELL AS THE LATEST GRID CONNECTED 1500VDC SYSTEMS

MR. VIKAS TYAGI HEAD – MARKETING, SOCOMEC

Visit us @ Hall # 1, Stall 1.3 20th -22nd September 2017, India Expo Center, Greater Noida

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International News CHINESE SOLAR MODULE PRICES ON THE UPSWING Chinese solar modules are seeing a hardening of prices for the first time in years, with the average selling price (ASP) going up in India on a quarterly basis.

According to the clean energy communications and consulting firm, this has posed a significant challenge to India’s solar industry. Developers not just in India, but across the world have been modelling their auction bidding strategies based on the assumed perpetual decline of Chinese module prices.Chinese module ASPs have risen by almost 12 percent as of August 2017 compared to Q2 2017. By comparison, module ASPs dropped by 12 per cent from Q2 2016 to Q3 2016

SUNPOWER OPENS PILOT PLANT AHEAD OF NEXTGENERATION SOLAR MODULE New production has already begun for SunPower’s next-generation solar panel -- and it’s being made in the U.S.A.SunPower Corporation is always pushing the envelope when it comes to solar efficiency, and that focus may finally be starting to prove valuable to the company and its investors. After years of fighting against rapidly falling prices for commodity solar modules from China, buyers are starting to value higher efficiency and better-quality modules. And SunPower is ready to extend its lead in that section of the market.

to Europe if Tunisia’s government approves an energy company’s request to build it.The 4.5GW mega-project planned by TuNur would pipe electricity to Malta, Italy and France using submarine cables in the grandest energy export project since the abandoned Desertec initiative. 60% of Europe’s primary energy is currently imported from Russia or the Middle East. Does the EU really want to be investing in infrastructure that lasts 50 years but which just enables more fossil fuel use?”

CANADIAN SOLAR ACQUIRES AN 80.6 MWP OF SOLAR POWER PROJECT IN BRAZIL Canadian Solar Inc. one of the world’s largest solar power companies, today announced an acquisition of an 80.6 MWp solar photovoltaic (PV) project in Guimarania, in the state of Minas Gerais, Brazil. Canadian Solar will build the project and provide the modules from its local factory in Brazil.

The Guimarania project received a 20-year Power Purchase Agreement from the second Reserve Energy Auction at R$290.00/MWh (approximately US$91.77/MWh). Once connected to the grid, the plant will generate approximately 143,664 MWh of electricity per year, which will be sold to CCEE (Electrical Energy Commercialization Chamber). Construction will start in early 2018 and reach commercial operation in Q4 2018.

AQUILA CAPITAL OPENS TOKYO OFFICE TO TARGET JAPAN SOLAR MARKET

PHANES OPENS AFRICAN SOLAR POWER INCUBATOR TO BOOST ENERGY

German headquartered investment firm Aquila Capital has opened an office in Tokyo to tap into Japan’s solar power market. Aquila has been active in the country for several years and started investing in Japanese photovoltaic projects in 2014. Yasuhiro Odajima has been appointed as Investment Manager of Energy & Infrastructure and is based at the Tokyo office. He joins Aquila Capital from Pictet Asset Management.

Phanes Group, an integrated end-to-end solar provider headquartered in Dubai, has launched its first Solar Incubator program, aimed at identifying PV projects of potential in sub-Saharan Africa by providing access to funding, and commercial and technical knowledge.

Aquila Capital opens Tokyo office to target Japan solar market.Japan has been transforming its energy system substantially for several years now and it has put in place a stable legal framework that provides attractive incentives for renewable energy projects. Japan’s strong demand for electricity and relatively high sunshine hours makes it one of the most attractive solar markets in the world.”

DEVELOPERS PREPARING PERMITTING APPLICATION FOR MASSIVE FAIRFIELD SOLAR PROJECT Plans for what could become the largest solar farm in the state are progressing, as the group developing the array plans to submit environmental permitting applications in the fall.

The proposed 20-megawatt array would be on 120 acres of privately owned land on U.S. Route 201, about a mile south of the Sappi plant in Skowhegan, according to Liz Payton, project manager for development for NextEra Energy Resources, the company developing the array. The project was originally proposed by Ranger Solar, but those assets were acquired by the Floridabased NextEra Energy. Payton said the company has 240 acres of land to work with, but were able to design the project to occupy less space. The land is currently an active farm and will remain so.

LAUNCH OF THE CONSTRUCTION OF TWO SOLAR POWER PLANTS IN FRANCE Voltalia an international player in renewable energies, announces the start of construction works at the French solar power plants of Canadel (10.4 MW) and Castellet 2 (3.8 MW) located in the southern-France region of Var. Awarded during the CRE III tender in December 2015, these projects are both located in the sunniest region of France.

The Canadel plant will be located in Brignoles and the second plant, called Castellet II, will be adjacent to the first plant of the same name commissioned

by Voltalia in July 2013, following the CRE I call for tender (2012). Each benefitting from a 20-year power sale agreement, the plants should be commissioned by year-end 2017, in accordance with the terms of the call for tender.

HUGE TUNISIAN SOLAR PARK HOPES TO PROVIDE SAHARAN POWER TO EUROPE An enormous solar park in the Sahara could soon be exporting electricity

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The initiative, ‘The PV Solar Incubator, Your Project, Our Expertise, For a Sustainable Future,’ will be held in partnership with Hogan Lovells, Proparco, responsAbility, RINA Consulting and Solarplaza, and invites PV developers to submit proposals for projects that are based in sub-Saharan Africa, and have a clear CSR (Corporate Social Responsibility) component.

A SOLAR POWERED LIFELINE FOR LIBYA’S HOSPITALS The United Nations is installing solar panels to power hospitals in Libya. They hope it will provide a solution to the long and frequent power outages that have become a problem for the country’s healthcare system.

POOR QUALITY CHINESE SOLAR MODULES FLOOD INDIAN MARKET In what may impact solar power generation, poor quality Chinese solar modules— rejected by developers—are being sold in the domestic market at a discount, said several people aware of the industry practice. With their project deadlines approaching, some Indian developers have taken recourse to this route to meet cost pressures and timelines. Modules account for nearly 60% of a solar power project’s total cost. These defects range from huge cracks (in solar panels) to low-efficiency equipment.

The Chinese suppliers know that there is a pressing demand here and, hence, these tactics,” said a New Delhi-based chief executive of a firm, requesting anonymity, whose rejected modules were sold recently in India by its Chinese supplier.

JAPAN COMBINES AGRICULTURE WITH SOLAR POWER GENERATION TO REVIVE UNEXPLOITED FARMLAND Sustainergy, a Tokyo-based renewable-energy start-up has partnered with Hitachi Capital and manufacturer Daiwa House Industry to deploy a new ‘solar-sharing’ business model, where Japanese farmers will be encouraged to make use of unexploited farms to produce mushrooms, while solar PVs will feed the operations and sell electricity to the grid at the same time.

The ‘solar-sharing’ business model constitutes an idea of Sustainergy, where crops that need little radiation can be yielded underneath solar photovoltaic panels, while the excessive electricity is exported to the grid, generating double income for farmers.

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Infographics

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Planning a 50 MW solar PV plant requires an estimated 2,120 person-days of labour.

Project development activity accounts for about 59 percent of this labour (1,250 person-days),

Analysis

Table 1

followed by site selection (17%), engineering design (12%), and feasibility analyses (12%). Table 1 presents a breakdown of the total workforce needed in project planning by activity.

Human resources required for the project planning of a 50 MW solar PV plant

REQUIREMENTS FOR SOLAR PV DEVELOPMENT (person-days) and breakdown by activity PROJECT PLANNING Activities at the project planning phase comprise site selection, technical and financial feasibility studies, engineering design and project development.

The first two activities involve measuring the solar resource potential and estimating the environmental and social impacts of developing a solar plant on an identified site. Engineering design involves identifying the technical aspects of the mechanical and electrical systems, the civil engineering work and infrastructure, the construction plan and the operations and maintenance (O&M) model. Project development consists of administrative tasks such as obtaining land rights, permits, licenses and approvals from different authorities; managing regulatory issues; negotiating and securing financing; negotiating and signing insurance contracts; contracting an engineering company; negotiating the rent or purchase of the land; and managing the procurement processes.

TYPE OF HUMAN RESOURCES Legal, energy regulation, real estate and taxation experts Financial analysts Electrical, civil, mechanical and energy engineers Logistic experts Environmental experts Health and safety experts Total (as %)

Site selection

Feasibility analyses

Engineering design

Project development

Total by occupation

180

60

85

500

825

–

30

–

500

530

120

130

135

–

385

250

250

– 60

30

–

–

90

–

–

40

–

40

360 (17%)

250 (12%)

260 (12%)

1,250 (59%)

2,120

(1,250 person-days), followed by site selection (17%), engineering design (12%), and feasibility analyses (12%). Table 1 presents a breakdown of the total workforce needed in project planning by activity.

Almost 40 percent of the total person-days needed are for legal, energy regulation, real estate and Planning a 50 MW solar PV plant requires an estimated 14 development 2,120 person-days of labour. Project taxation experts (see Figure 6), indicating the activity accounts for about 59 percent of this labour importance of the knowledge of the local context.

While some of these needs can be TM fulfilled by foreign experts, they offer considerable opportunities for domestic employment. About 24 percent of the total labour (515 persondays) requires engineers, environmental experts and health experts and safety experts (385, 90 and 40 person-days, respectively) (see Figure 6). These professionals can be hired from abroad on a Solar is one of the fastest growing and talked about ‘Energy Generation Technologies Globally’. temporary basis or skills can be We have successfully completed supplies of 36 km “Alugrate” Walkway for developed domestically as part RSSB Project (Radha Soami Satsang Beas) at Punjab which is the world’s largest of education and training policies designed to meet future needs in ‘Solar Rooftop Project’ with 27 Mwatt plant. This rooftop Solar Plant constructed by an human resources.

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Project planning requires equipment to measure solar resources at the site, such as pyranometers and pyrheliometers, along with solar energy simulators and programmes to predict the availability of solar resources.5 It also requires computers and software to run simulations and produce feasibility analyses.

Technical information is required to describe climatic features at the site that might affect a project’s structural and operational requirements or place limitations on the solar panels. Knowledge of policies and regulations related to support schemes for renewable energy, grid connection and land use is crucial for informing decisions about whether or not to proceed with the development of the solar plant.

In the project development stage, planners decide whether to procure domestically manufactured components (if available) or from foreign suppliers. The cost of technology and enabling conditions created by policies that support manufacturing, such as taxes on imports or local content requirements, affect this decision.

Credits: IRENA (2017), Renewable energy benefits: Leveraging local capacity for solar PV, International Renewable Energy Agency, Abu Dhabi.

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Solar Quarter • August 2017 20

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Solar Quarter • August 2017 21

Infographics

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Solar Quarter • August 2017 22

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Solar Quarter • August 2017 23

Tech Insights BATTERY MARKETS AND OUTLOOK Among the many technologies available for electricity storage, batteries have experienced the most significant growth in recent years and are receiving the most attention. An increasing number of actors representing diverse backgrounds – including utilities, battery manufacturers and renewable project developers – is helping to drive competition (Eller and Dehamna, 2016). Batteries are being deployed in four main applications to support VRE integration and improve reliability of electricity supply. These include households with solar PV; island systems and o -grid VRE for rural electrification; VRE smoothing

storage for electricity will increase from just 0.8 GW to around 250 GW (IRENA, 2015h). Di erent types of batteries have di erent uses, but recent years have seen a significant shift from sodium sulphur to other battery types, particularly lithiumion. Lithium-ion batteries have started to dominate the electricity storage market because of their high energy density, e¨ciency and relatively long life. In 2016, lithiumion batteries accounted for about half new battery deployments, with advanced leadacid, sodium sulphur and advanced flow batteries also having significant market shares (GlobalData,

Figure 4.5 Share of various storage technologies in global electricity storage system (MW)

while also expanding the use of renewable energy in other end-use sectors and increasing efficiency of energy use. Sector coupling can be achieved in a number of ways, including: � Electrification of heating and cooling in buildings

and industry. Thermal grids (district heating and cooling) and individual building systems (e.g., heat pumps) can serve as new markets for renewable electricity while also operating as demand bu ers for variable generation. This can be accomplished by shifting thermal demand somewhat to better coincide with the ebb and flow of variable output, and by equipping district systems to store thermal energy for later use. � Electrification of transport. Electricity is already

used for many trains, trams and other forms of transport. Electric passenger vehicles also are growing in number, with more than one million plugin electric vehicles estimated to be on the world’s roads as of 2015. Electrification of transport enables the use of renewable electricity in vehicles through on-board batteries or hydrogen fuel cells. It also allows for the opportunity to balance VRE generation by timing battery charging and hydrogen production to coincide with surplus renewable electricity generation. A third potential advantage is to utilise such vehicles as two-way storage devices that can return electricity to the grid during peak demand periods or serve other electricity needs of the owner, depending on the circumstances. � Use of smart energy networks. Timely and relevant

Figure 4.5 Share of various storage technologies in global electricity storage system (MW)

Source: IRENA based on Global Data, 2016

and energy supply shifting; and fast, short-term electricity balancing in ancillary markets. In Germany, for example, some 10,000 rooftop solar PV systems are coupled to battery storage systems. Batteries also play a major part in providing energy access in the developing world, particularly when combined with solar PV in lighting systems and solar home systems (IRENA, 2015g). Battery use is expected to increase substantially over the next few years, with the largest markets in North America, Europe and Asia-Pacific (see Figure 2) (Eller and Dehamna, 2016; GlobalData, 2016). Batteries are set to play an important role in VRE integration in existing electric grids and a key role in the ongoing effort to provide access to those still without electricity. IRENA estimates that pumped storage hydropower in 26 countries will increase from 150 GW in 2014 to 325 GW in 2030.

Over the same period, the total available battery

2016; Tokash and Dehamna, 2016; US DoE, 2016).

Lithium-ion batteries are used widely in consumer electronics as well as in plug-in hybrids and electric vehicles. Their benefits include the ability to provide large amounts of energy for short periods of time and lower amounts of energy for longer periods. This makes them suitable for stationary (e.g., solar PV systems) and mobile (e.g., electric vehicles) electricity storage for all scales and applications. They also can be deployed rapidly.

ROLE OF SECTOR COUPLING IN REALISING HIGHER SHARES OF RENEWABLE ENERGY The coupling of the power sector with heating, cooling and transporters significant opportunities for: integrating higher shares of VRE generation

information about supply and demand, and the flexibility thereof, will be an increasingly critical component of the production and distribution systems that couple renewable electricity with thermal applications and transport. “Smart” electrical and thermal energy networks will convey real-time information to both energy producers and consumers to optimise and synchronise supply and demand through a combination of supplyside flexibility and demand-side management and response. One component of this is to translate information on system imbalances into price signals so that the new transport and thermal demand can efficiently respond to changing conditions on the supply side by time-shifting demand, and even return stored energy to the grid when needed.

The potential synergy is substantial as the expanded use of renewables for transport and thermal applications, in turn, can balance grid power and perhaps offer other ancillary services for grid stability and security. Understanding how these services might be provided, and their economics, will be crucial to better assess the transition costs, or the savings, that can result from significantly higher shares of renewable energy.

The coupling of the power sector with the heating, cooling and transport sectors is likely to become the key to realising the full potential of renewable energy in the overall energy system. The concept has already been put into practice in California, Denmark, Germany and China now is encouraging coupling to reduce curtailment of wind and solar power.

Utility-scale systems were set up in a matter of months in 2016 for grid-based projects in North America. In addition, lithium-ion batteries are starting to appear in some solar home system markets, which up until now have relied primarily on relatively low-cost deep cycle lead-acid batteries. By 2025, it is expected that lithium-ion batteries will be included in up to 80% of all global electricity battery storage installations (IHS Markit, 2015).

Credits: IRENA (2017), REthinking Energy 2017: Accelerating the global energy transformation. International Renewable Energy Agency, Abu Dhabi.

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Solar Quarter • August 2017 24

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Solar Quarter • August 2017 25

“POWER 100”

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Solar Quarter • August 2017 26

“POWER 100”

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CHIEF EXECUTIVE OFFICER

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VICE-CHAIRMAN & MANAGING DIRECTOR

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HARSH AGRAWAL MANAGING DIRECTOR AND INDIA HEAD

I SQUARED CAPITAL

SUSHIL PALIWAL CEO

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Solar Quarter • August 2017 27

“POWER 100”

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RAJ PAI

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VIKRAM KAILAS MD & CEO

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DIRECTOR OF ARCTECH INDIAN MARKET

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(CEO) RENEWABLE DIVISION ,OPG GROUP

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MANAGING DIRECTOR AND CEO

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CHAIRMAN

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Solar Quarter • August 2017 28

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HONORARY MENTIONS COMPANY

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DESIGNATION

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Solar Quarter • August 2017 29

Industry Insights TOP 5 LARGEST SOLAR POWER PLANTS OF THE WORLD MOURA PHOTOVOLTAIC POWER STATION, PORTUGAL

This article has been Updated on 6/27/17 *As of June 2017 China and India have taken over as the leading developers of large scale solar projects.

U.S. demand for solar power is surging despite an economic recession, thanks to government financial incentives, some easing in credit availability, and increasing public recognition of its environmental benefits. Although the largest utility scale plants are outside the United States, 2 Plants currently in construction in California and New Mexico will balance the European dominance in large scale solar utility projects.

KAMUTHI SOLAR POWER PROJECT – 648MW – INDIA

The Moura photovoltaic power station is located in the municipality of Moura, in Alentejo, Portugal, which is one of the sunniest regions in Europe and also one of the most economically depressed. Its construction involves two stages, with the first one being constructed in 13 months and completed in 2008, and the other will be completed by 2010, at a total cost of €250 million for the project. statistics, from July 2016 to January 2017 , Datong generated a total of 870 million watts of electricity, equivalent to more than 120 million watts per month of power generation.

TENGGER DESERT SOLAR PARK – 1500MW – CHINA

The facility in Kamuthi, Tamil Nadu, has a capacity of 648 megawatts and covers an area of 10 kilometres squares. This makes it the largest solar power plant at a single location, taking the title from the Topaz Solar Farm in California, which has a capacity of 550 MW.

The 1547MW solar power was installed in Zhongwei, Ningxia is the world’s largest solar array by far. Know as the “Great Wall of Solar” in China. The Tengger Desert is an arid natural region that covers about 36,700 km and is mostly in the Inner Mongolia Autonomous Region in China. The solar field itself covers 1,200 Km (3.2%) of land.

LONGYANGXIA DAM SOLAR PARK – 850MW – CHINA

Previous Largest Sites as of 2009

ARNEDO SOLAR PLANT, SPAIN The plant produces an impressive 34 GWh every year, which will power 12,000 households and prevent 375,000 tonnes of CO2. The facility sits on seventy hectares and houses 172,000 panels. The project’s budget was around €180,000,000. La Rioja, a Spanish region known for its wine, already covers 62% of its electricity with renewable sources.

The Longyangxia Dam Solar Park is China’s latest in a long line of large-scale solar energy projects. A solar farm in the city of Cixi in eastern Zhejiang province made the news recently for installing 300 hectares of solar panels above a fish farm. The farm is expected to generate 220-gigawatt hours of electricity a year – enough power for 100,000 households – according to the state-run Xinhua news agency.

The power station will have an installed capacity of 46 MWp, counting a total of over 376,000 solar panels.

Almost 190,000 panels (32 MW) are fitted on fixed structures, 52,000 (10 MW) on single-axis trackers, which follow the sun across the sky, and a further 20 MW of power capacity will be added during phase two of the project. It will occupy an area of 320 acres (130 hectares), producing 88 GWh of electrical energy per year.

PUERTOLLANO PHOTOVOLTAIC PARK, SPAIN Renovalia developed this power station in Puertollano, Ciudad Real, housing an energy park with an installed capacity of 50 megawatts (MW). The power generated here is equivalent to the annual domestic consumption of electricity of about 39,000 households. The energy produced here will replace a theoretical discharge of 84,000 tons of CO2/year or, 2.1 million tons of CO2 over the 25 years during it’s production.

OLMEDILLA PHOTOVOLTAIC PARK, SPAIN The Olmedilla Photovoltaic (PV) Park uses 162,000 flat solar photovoltaic panels to deliver 60 megawatts of electricity on a sunny day. The entire plant was completed in 15 months at a cost of about $530 million at current exchange rates. Olmedilla was built with conventional solar panels, which are made with silicon and tend to be heavy and expensive.

KURNOOL ULTRA MEGA SOLAR PARK – 900 MW – INDIA WALDPOLENZ SOLAR PARK, GERMANY

With 900 MW of the 1,000 MW already commissioned at the Kurnool Ultra Solar Park, and the remaining to be fully operational next month, it has already become the largest such park outpacing 648 MWsolar park developed by Adani in Tamil Nadu and Topaz Solar Park of 550 MW in California.

DATONG SOLAR POWER TOP RUNNER BASE – 1000MW – CHINA With 1GW Phase I completed and a Total capacity is 3GW in 3 phases. Datong Solar Power plant in China has the potential to be the largest solar plant in the world once completed. According to government

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Waldpolenz Solar Park, which is the world’s largest thin-film photovoltaic (PV) power system, is built in on military air base to the east of Leipzig in Germany.

The power plant is a 40-megawatt solar power system using state-of-the-art thin film technology. current utc time . 550,000 First Solar thin-film modules are used, which supplies 40,000 MWh of electricity per year. The investment cost for the Waldpolenz solar park amounts to some Euro 130 million.

RANCHO CIELO SOLAR FARM, USA The Rancho Cielo Solar Farm is the largest proposed solar farm in the United States. It is located in an industrial community in Belen, New Mexico named Rancho Cielo, and is expected to provide the majority of the community’s power when it is completed. It’s cost expectation is $840 million and it will provide 600 MWp, and will cover an area of 700 acres (280 ha). The solar farm will be using thin film silicon panels will be built locally.

TOPAZ SOLAR FARM, USA Topaz Solar Farm is a proposed 550 megawatt (MW) solar photovoltaic power plant, to be built by First Solar, Inc. (thin film silicon solar module maker) in the Carrizo Plain, northwest of California Valley at a cost of over $1 billion. On August 14, 2008, Pacific Gas and Electric announced an agreement to buy all the power from the power plant.

Credits: SolarInsure - www.solarinsure.com

Solar Quarter • August 2017 30

Tech Insights SOLAR PV TECHNOLOGIES AND THEIR MARKET SHARES STORAGE TYPE

DESCRIPTION

Pumped storage hydro

Uses excess electricity (e.g., produced at night by coal or nuclear power) to pump water from a lower to higher reservoir; stored energy then generates hydropower during high-demand periods. Has largest power potential (per system) of any storage option, and longest life expectancy. Discharge time up to 24 hours or more.

Compressed air energy storage

Requires large, low-cost natural bu¦ers such as caverns to store energy by compressing air; the compressed air is used in gasfired turbines to generate electricity on demand. Discharge time is up to 24 hours or more. E‰ciency is relatively low. Expansion is limited due to lack of suitable natural storage sites.

Flywheel

Stores electricity as mechanical energy, which is converted back to electricity when needed. Discharge time is seconds to minutes.

Batteries

Store electricity as chemical energy. Several types of batteries are available (see Figure 4.5). New materials and technologies are under development to improve performance and reduce costs. Discharge time is mostly 8-12 hours.

Thermal storage

Includes a number of di¦erent technologies that accommodate a wide range of needs. Allows for excess electricity to be converted to thermal energy and stored (short-term or seasonal) for later use. Generally not converted back to electricity, except in the case of concentrating solar (thermal) power technologies.

Supercapacitor

Stores electricity as electrostatic energy; often combined with batteries. Relatively high e‰ciency, with discharge times below 3◇ seconds.

Superconducting magnetic storage

Uses superconducting technology to store electricity. More research is needed.

Power-to-power/gas

Involves the conversion of electrical power to gas by splitting water into hydrogen and oxygen; hydrogen is then used as a fuel when needed or combined with CO2 and converted to methane.

Hydrogen

Stored electricity is converted to hydrogen by electrolysis, and can be re-electrified when needed. Although it has a low range of roundtrip e‰ciency (3◇-5◇%), its use is growing due to much higher storage capacity in comparison with other energy storage technologies (e.g., pumped hydro, CAES, and batteries).

Credits: IRENA (2017), REthinking Energy 2017: Accelerating the global energy transformation. International Renewable Energy Agency, Abu Dhabi.

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Opinions Mr. Rajsekhar Budhavarapu

SCOPE, PROSPECTS & BENEFITS FOR GREENFIELD HYBRID PROJECTS WITH ENERGY STORAGE

COO IL&FS Energy Development Company Ltd.

Spill Management” held at Mumbai on 30 May’17.

Mr. Gadkari wanted India to be the first country to have the entire power requirements of government owned ports to be met with renewable energy. The combined Wind and Solar PV potential at all the 12 major national ports would be between 3.5 to 5 GW.

Wind-Solar hybrid projects offer couple of clear advantages in the utility scale that is economically difficult to overlook. Firstly, the complementarity of Wind & Solar (RE) resources over both the daily or seasonal time frame allows for significantly reducing the power evacuation and transmission cost per unit

of generation. Secondly, for a country like India where the pressures on land are immense, it allows for maximizing the utilization from the earmarked land area. Thirdly, allows for a more coordinated operation as a commercially competitive utility scale power plant with co-located Energy Storage batteries (with dispatchable power and fully automated to offer various grid ancillary services).

Infact, only such a storage integrated RE operation could allow power systems to optimally and sustainably function in high RE penetration situations.

Solar Parks (32 old and 50 new parks as proposed in early 2017) infrastructure projects present an easy big market for WindSolar hybridization, which would increase GW potential from 40 GW to between 50 to 60GW. Hybridization of Solar Parks, allows for power evacuation and transmission lines to be better utilized between sunset and sunrise, which could still be better utilized if storage batteries are employed.

The other niche but attractive market segment is at the National ports. This is directly pegged to the progressive vision plan of Mr. Nitin Gadkari (Minister for Road Transport and Highways and Shipping) as stated at the “Conclave on Green Energy & Oil

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India, thus, presents a huge market for greenfield Hybrid Projects and so can be a World leader in this field.

It would, though, need a suitable market oriented policy framework from MNRE to take full advantage of the opportunity. As regards Energy Storage batteries, new considerations needs to be introduced (a) in the EA 2003 (the proposed 2014 Amendment bill) to allow deployment of energy storage batteries (on account of the complexities arising due to its dual nature to operate both as a generator and as a load) and (b) as a regulatory treatment to allow the various valuable services offered by batteries to be monetizable.

Its worth noting that for the above mentioned green field Hybrid projects, there is at the very least 8 GWh of Energy Storage batteries to be deployed over a period of 4 years (over FY19 to FY22). Which, as a result, presents an yearly Energy Storage battery demand of 2 GWh per year.

Shouldn’t we then consider setting up a GW Energy Storage battery factory each at Vizag port and Kandla port?

The combined Wind and Solar PV potential at all the 12 major national ports would be between 3.5 to 5 GW. And this augurs well, with the progressive vision plan stated by Mr. Nitin Gadkari (Minister for Road Transport and Highways and Shipping) at the “Conclave on Green Energy & Oil Spill Management” held at Mumbai on 30 May’17. Mr. Gadkari wanted India to be first country to have the entire power requirements of government owned ports to be met with renewable energy.

THE COMBINED WIND AND SOLAR PV POTENTIAL AT ALL THE 12 MAJOR NATIONAL PORTS WOULD BE BETWEEN 3.5 TO 5 GW.

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Analysis GLOBAL GROWTH OF AUTIONS IN THE SOLAR SECTOR AUCTIONS IN THE POWER SECTOR

AUCTION DESIGN

The rise of auctions

Auction design continues to evolve and to become more complex. To increase deployment in a costefficient way while meeting development objectives, auctioneers are adjusting and combining a variety of design elements. These design elements can be categorised under the auction demand, qualification requirements, the winner selection process and the

Renewable energy auctions have become increasingly popular for expanding renewable power generation in developed and developing countries and are often implemented jointly with other measures to incentivise renewable energy deployment. Over the past decade, the number of countries that have employed auctions has increased eleven-fold from six in 2005 to at least 67 countries by November 2016 (adapted from REN21, 2010-2015; and IRENA, 2017a).

By 2016, solar PV bids in the most competitive countries came in below USD 60/MWh, as seen in Figure 2.3. The figure illustrates the sharp decline in (average) winning bid prices for utility- scale solar PV between early 2010 and mid-2016. It also reveals that prices are converging across a number of countries.

However, a wide range between the highest and lowest prices persists, due to the resource potential, costs and enabling country-specific conditions.

The growing interest in auctions is due largely to their ability to achieve deployment of renewable technologies in a well-planned, cost-efficient and transparent manner while also fulfilling a number of other objectives. Examples include job creation, local ownership and development (as in the South African Renewable Energy Independent Power Producer Procurement Programme).

The main strengths of auctions relate to flexibility, price and commitments. The flexibility of design allows policy makers to combine and tailor di¦erent elements to meet deployment and development objectives, while taking various factors into account, such as the country’s economic situation, the structure of its energy sector, and the maturity of its power market. The certainty on price and quantity ensures stable revenue guarantees for project developers (similar to the feed-in tari¦) while at the same time ensuring that renewable generation targets are met more precisely (similar to quotas and tradable green certificates). In addition, auctions allow for real price discovery, which is particularly relevant in fastchanging markets with rapidly declining technology and other project-related costs (e.g., due to evolving local supply chains and local market maturity). Finally, auctions lead to contracts that clearly state the commitments and liabilities of each party, including remunerations and penalties for under building and delays to ensure the projects deliver in line with the bid (IRENA and CEM, 2015).

sellers’ liabilities (see Box 2.1). In other words: what does the auctioneer want, who gets to bid, who wins the bid and how can the auctioneer ensure that winning bidders meet their commitments?

For an auction to be successful, its design should ensure that competition between bidders is optimal in order to drive prices down while it is limited to bidders with the capacity to implement projects at the contracted price within the given timeframe.

AUCTIONS IN 2015 AND 2016 Auctions also have potential weaknesses. The risk of project delays or cancellations is attributed to the potential for over-aggressive bidding in the competitive environment of the auction, which has a variety of causes. These include excessive optimism about the rate of technology cost reductions and the underestimation of the financial consequences of a project delay. Another potential weakness is the associated transaction costs, which can be relatively high for both bidders and auctioneer. Small or new players are particularly a¦ected by this. The administrative procedures necessary for them to participate in the auction (e.g., feasibility studies and qualification arrangements, deposits or bonds) may constitute a barrier to participation.

The extent to which these strengths and weaknesses a¦ect the ultimate result of an auction depends largely on policy design. This includes how well the process is adapted to the local context in terms of economic situation, energy sector structure, power market maturity and renewable energy deployment objectives.

In 2015 and 2016, prices resulting from solar and wind energy auctions fell sharply across the globe.

For wind power, some of the lowest prices were recorded in North Africa, where Egypt announced a winning bid price of USD 41/MWh in 2015. Soon after (in 2016), Morocco announced the lowest winning bid price at USD 28/MWh (with USD 30/MWh being the average price across all wind farms).

Prices also declined in auctions calling for new solar PV capacity. In Dubai in the United Arab Emirates, a record-breaking bid of USD 29.9/MWh for an 800 megawatt (MW) solar park was received in early 2016. A few months later, Abu Dhabi announced that it had received a lower price of USD 24.2/MWh10 for its 350 MW auction (Bloomberg, 2016a). In Peru, prices fell as low as USD 48/MWh, and later in the year Chile announced record low prices of USD 29.1/ MWh (IRENA, 2017a). Figure 2.2 illustrates the results of recent renewable energy auctions in different parts of the world. These projects are planned to be commissioned between 2018 and 2020, in most cases, with possible longer lead times for hydropower.

FACTORS CONTRIBUTING TO LOW PRICES What has driven the bid prices for wind and solar PV to such low levels? Two main reasons include falling technology prices and the competition created by auctions. However, the low bid prices are also attributed to access to finance and other country-specific economic conditions, investor confidence and a (perceived) low-risk environment, and additional renewable energy support policies. In addition, specific trade-off in auction objectives can raise or reduce bid prices (IRENA, 2017a) as follows:

ACCESS TO FINANCE AND OTHER COUNTRY- SPECIFIC ECONOMIC CONDITIONS A country’s overall macroeconomic conditions a¦ect project costs and hence the prices submitted by bidders. Conditions include the ease of doing business and access to finance, and the country’s credit rating. General soft costs associated with building and operating a project also a¦ect bid levels.

Examples include the costs of labour, land and input energy. One example is the third phase result of the Al Maktoum Solar Park (USD 29.9ƒMWh) in Dubai.

This was influenced by low soft costs, favourable loan terms (including relatively low interest rates and long loan tenure), and generally very low taxes in the UAE (Morris, 2016). Another important factor is the Emirate’s long-term vision to deploy 5 GW of solar power capacity. The promise of a long-term market for renewables created investor confidence while also intensifying competition among bidders wishing to enter the market, which resulted in low bids.

Credits: IRENA (2017), REthinking Energy 2017: Accelerating the global energy transformation. International Renewable Energy Agency, Abu Dhabi.

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Solar Quarter • August 2017 34

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Solar Quarter • August 2017 35

awarded to any single developer to minimise risk and encourage more than one company to enter the market, thereby advancing deployment. However, such restrictions can hinder economies of scale.

Greater government role: governments can take on the responsibility for some required tasks such as conducting resource assessments, selecting a site for the project and ensuring grid connections. If so, project risks and costs for potential bidders are reduced, lowering bid prices.

Clearly, bid prices are influenced by general macroeconomic and political conditions, the existence of additional renewable energy support policies and other considerations. However, it is important to gain a better understanding of the factors that led to record-breaking bid prices for solar PV and wind power in 2016 across different regions of the world to guide future policy design. In this light, it is also important to verify that the projects come online successfully and on time, and to gain an understanding of why they might not succeed (IRENA, 2017a).

With the rise of auctions, alongside other renewable energy support policies, ongoing cost reductions and rising electricity demand, numerous renewable energy projects (particularly solar PV and wind power) are being planned and are under construction around the world. The increasing share of variable renewable generation is prompting policy makers and regulators to reconsider power market designs and system planning and operation.

FOR AN AUCTION TO BE SUCCESSFUL, ITS DESIGN SHOULD ENSURE THAT COMPETITION BETWEEN BIDDERS IS OPTIMAL IN ORDER TO DRIVE PRICES DOWN WHILE IT IS LIMITED TO BIDDERS INVESTOR CONFIDENCE Auction bid prices are significantly affected by investor confidence in the renewable energy sector of a specific country and the risk level faced by project developers there. Where potential risks are mitigated by additional policies to support renewable energy, as well as by other factors, the cost of financing can decrease substantially. This lowers bid prices.

Investor concerns about demand-side responsibilities can be reduced by assigning a reliable off-taker and providing certainty and regularity in the procedures and schedules for auction rounds. The Dubai solar PV auction, for instance, succeeded in drawing low bids for a couple of reasons. The off-taker, the Dubai Electricity and Water Authority, was creditworthy, and both country and region had a long-term vision for solar deployment.

Public finance institutions can provide private developers with risk mitigation instruments such as guarantees, currency hedging instruments and liquidity reserves (see Chapter 3). In Chile, the contracts are denominated in USD and are adjusted periodically (according to the US Consumer Price Index) so that developers are shielded from interest rate risks and inflation risks.

ADDITIONAL RENEWABLE ENERGY SUPPORT POLICIES to support renewable energy deployment can contribute to low bid prices in two ways.

Deployment policies, such as tax breaks or import duties, implemented in tandem with auctions,

can reduce project costs and thus bid prices. Also, policies to develop local capacity through education and training can help create a local workforce that can both increase technology reliability and reduce the need to import talent.

TRADE-OFFS IN AUCTION OBJECTIVES The various choices made when designing auctions present trade-off between minimising bid prices and other objectives. Examples are described below.

Local content requirements: there can be a trade-off between developing a local industry, developing a local industry and achieving lower prices. Auctions with minimal to no local content requirements can encourage foreign players to enter the market. This means renewables may grow more rapidly and in some instances at lower prices than might otherwise be the case. However, the country might forgo the benefits of domestic development which brings with it such benefits as employment, local value, skills and know-how.

WITH THE CAPACITY TO IMPLEMENT PROJECTS AT THE CONTRACTED PRICE WITHIN THE GIVEN TIMEFRAME.

Bidding requirements and compliance rules: there is a trade-off between ensuring the successful and timely delivery of projects in line with the bid and achieving lower prices.

Limiting the volume awarded to individual bidders: some countries limit the volume that can be

Credits: IRENA (2017), REthinking Energy 2017: Accelerating the global energy transformation. International Renewable Energy Agency, Abu Dhabi.

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www.raysfutureenergy.com Solar Quarter • August 2017 37

Industry Insights SOLAR ENERGY’S ROLE IN INDIA’S DEVELOPMENT India transitioned from being the world’s seventhlargest energy consumer in the year 2000 to the fourth-largest one within a decade. Despite of this, nearly a quarter of India’s population has limited or no access to electricity. Today, India is one of the lowest per capita consumers of electricity in the world.

The power sector in India is highly diverse with varied commercial sources of power generation such as coal, natural gas, hydro and oil as well as unconventional sources such as solar, wind and bio-gas. The rapid growth of demand has overtaken the supply, leading to power shortages in spite of the manifold growth in power generation over the years. To meet this demand, India plans to ramp up solar power generation to 100GW by 2022. This step in the right direction will help bring sustainable, clean, climatefriendly electricity to millions of Indians. The World Bank Group (WBG) is helping India deliver on its plans with more than $1 billion in lending over FY 2017. This is the Bank’s largest-ever support for solar power in any country.

Solar energy will play a vital role in the development of India and a lot more needs to be done to realize the potential of this sector.

CHALLENGES IN THE SOLAR SECTOR Land prices and power generation: A 1 MW of solar power plant requires somewhere about 5 acres of land and sometimes more depending on the type of the PV technology used. With land prices rising in India, identifying a land and setting up a plant has become very expensive. Even with the help of the Government if an organization does set up a plant, the capacity utilization is low. The performance of a PV power plant is often denominated by a metric called the CUF (capacity utilization factor). It is the ratio of the actual output from a power plant over the year to the maximum possible output from it for a year under ideal conditions.

CUF is usually expressed in percentage. The energy generation of a plant primarily depends on two key parameters; solar radiation received and the number of clear sunny days experienced by the plant’s location. According to Bridge to India, the highest CUF recorded in India for a PV plant is 20 percent, which is very low in comparison with other forms of power generation including wind.

Lack of Research and Development: R&D in this space is on a slow track due to the lack of collaborative efforts on this front between businesses and the Government. Technological innovations to improve the efficiency, storage mechanism and transmission of solar energy is necessary to exploit the solar energy potential in India.

Lack of standardization: Another factor restricting the growth of this sector is the lack of standards, resulting in the fragmentation of the market among manufacturers, suppliers and installers.

Standardization of systems will lead to rationalization of cost as companies can invest in R&D and newer technologies to meet common specifications.

Consumer Awareness: Lack of consumer awareness on the benefits and utility of adopting solar energy is also one of the major challenges in this industry. The technological advancement also needs to be communicated to the consumers. Similarly, schemes like net metering offered in few states are not fully understood and utilized.

ACTION STEPS Given these challenges, the Indian solar energy industry can receive a major boost with the following action steps:

Efficient implementation of Renewable Energy Certificates (RECs): With RECs, low potential RE states can purchase RECs from high potential states and meet the National Action Plan on Climate Change’s (NAPCC) demands.

Additionally, the purchases will incentivize the high potential RE states which will in turn motivate higher production and enable overall increase in total RE production.

On-grid application implementation: Solar power is generated at 15-20% efficiency rate, as compared to other power sources. It is important to make high radiance land resources available through governmental support. India needs a framework for faster deployment of floating PV plants across ideal waterbody resources.

market forward with its intelligent innovations. Since 2012, Lapp India has catered to over 4 GW of grid connected projects with an array of highly efficient and reliable products like cables, connector, splitters and other accessories. For this financial year (Oct ’16Sept ’17), we hope to cater over 1 GW of PV projects.

At present, we cater to about 25 % of the total 13GW of installed grid-connected PV base in India.

Our PV system solutions around the solar module include: � ÖLFLEX® SOLAR XLR/XL WP: These cables are very apt for the cables that are routed through conduits during installations and are exposed to water for a longer duration and during flood or natural calamity. The water proof cable guarantees continuous system. � SOLAR AL FLEX®: These cables are flexible, lightweight and cost-competitive with aluminum fine wire stranded conductor. SOLAR AL FLEX® cables are UV, ozone and weather resistant with double insulated construction for outdoor DC applications. They are used for the fixed installation of photovoltaic systems. � EPIC® CONNECTORS: EPIC® SOLAR 4 Splitter & EPIC® SOLAR 4 Connector are solar industrial connectors specially designed for weatherproofing cabling of PV systems. � SKINTOP® SOLAR: SKINTOP® SOLAR is a specially designed plastic cable gland for PV applications which are UV and ozone-resistant, halogen-free, highly flame-retardant and are able to withstand extreme operating temperatures.

We also provide complete connectivity solutions with power, control and data cables across industries. Our products are globally certified as per latest standards and widely accepted.

Off-grid application: A major number of villages in India suffer severe electricity shortages throughout the year, which provides huge opportunities for off-grid solar application. Some of the applications that could be considered are solar power micro-grid, irrigation pumps and street lighting.

LAPP’S CONTRIBUTION TO THE INDIAN SOLAR SECTOR Lapp has been making a name for itself as a driving force for innovation in the photovoltaic (PV) industry.

For over ten years, the company has been successfully developing cabling & connectivity solutions for photovoltaic systems and has regularly pushed the

MR. MARC JARRAULT MANAGING DIRECTOR Lapp India

CURRENT TRENDS IN ENERGY STORAGE SPACE MINDSPACE Globally, Individuals and Industries are taking control of energy and its source. Increasingly, sustainability is linked to individual choices and business sustainability. Western European countries are leading with regard to energy sources and consumption patterns. Majority of these countries have energy sustainability goals that are linked to national policies. For example, Sweden has a goal to take fossil fuels out of energy mix completely by 2050 and they are working aggressively towards the same. Hitherto oil tankers and reserves along the coasts have been converted into museums and tourist attractions. USA, Western Europe, Australia, Japan, South Korea including India have specific government incentive and policies to promote generation and usage of cleaner energy generation.

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Distributed solar, small wind and energy storage solutions coupled with smart IOT based technologies have enabled people to have better control on their equipment at any time of day when they can optimally run equipment, thereby saving energy cost. Time of Day (TOD) based energy charge is leading exponential growth of home energy storage systems in Australia, USA, Germany and South Korea. In fact, South Korean government increases the PPA rate by 5 times, when distributed solar is coupled with a storage system.

India is the leader in terms of technology customization, localization and adoption. We see that similar technologies are proliferating in India wherein the combination of renewable energy, energy storage and digital technologies are enabling people to monitor their energy consumption and sources. We, at Raychem RPG, are proud partners of

this technology shift with our pilot smart grid project with PGCIL and are driving technology innovation to enable businesses and individuals make smart energy choices. Our smart controller based system helps users optimize diesel consumption while designing energy generation, using combination of solar power, grid connection, energy storage and back-up generators.

Wishing all readers energy independence and power on the GO! SEMS Imagination delivered!

MR. NITIN SHARMA VICE-PRESIDENT Solar & Energy Management Systems (SEMS)

Solar Quarter • August 2017 38

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In Conversation “WE WANT TO BE A COMPLETE SOLAR SOLUTION COMPANY BANKING ON COST EFFECTIVE INNOVATION”

MR. MUKESH GUPTA Co-founder & Managing Director Micromax Energy Ltd

Micromax Energy Ltd, a part of the 15-year-old Micromax Group, forays its journey in the renewable energy space in India in August 2010 with a strong focus on innovation while customizing the cost effective product as per Indian need. Mukesh Gupta, Co-founder & Managing Director, Micromax Energy, who has an illustrious career, spanning over several decades in the technology and innovation, tells us how he brings his rich experience into the renewable energy sector.

PLEASE SHARE YOUR JOURNEY SO FAR FROM AN INNOVATOR TO A SUCCESSFUL ENTREPRENEUR I began my journey from a humble background.

My education started from a simple school in Delhi and finally I completed my Graduation in electronics engineering & Masters in Instrument Technology from Indian Institute of Technology (IIT), Delhi.

My professional career started with HCL in 1986 and then I joined Shyam Telecom, which is today’s MTS Group. There as the Head, R&D, I got great exposure to understand affordable telecom technologies through a visit in Taiwan. After that I decided to venture in the power segment. I cofounded Su-Kam Inverter in 1996 as Technical Director. This venture taught me various valuable lessons that I used in all my later endeavours.

In 2001, I joined Microtek and developed an inverter. In just six months, I build up this new segment and within the next two years of time, Microtek stopped all previous operations and continued only with the inverter. It was a great confidence builder for me. After this success, I informed the company about my intention to go into solar space once my target in the inverter space is met. But, it was not accepted by Microtek due to some strategic reason.

At that point of time my idea was totally futuristic as renewable energy sector was quite nascent in India, in Europe too, talks were more on the line of renewable power generation, but certainly not on storage. I would share my idea on storing the solar energy during the day and feeding it to the grid to be supplied during night to investors. While many were impressed, there were several hurdles. For example, technology was very expensive in those days. The generation cost was very high and importantly commercial viability wasn’t clear to businessmen.

So, in 2007 along with four professors at IIT Delhi, I started, SUNURJA, a company to develop commercially viable solar technologies. Rather than producing energy, we were keener on storing energy in a battery from the Sun. In 2010, I discussed with Mr Rajesh Agarwal, Chairman, Micromax Group about the idea of investing in the solar space and got his full support and encouragement.

And, Micromax Energy was formed.

WHERE DOES MICROMAX ENERGY STAND IN THE INDIAN POWER SEGMENT? We started with products related to solar Power generation & Solar system design. We recently signed a contract for the development of Indigenous Solar Inverter technology to work in sync with varied Indian power grid conditions.

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Micromax energy main focus will be on energy sector weather it is an energy generation or energy saving or energy storage. As far as the team of Micromax Energy is concerned, the engineers are from the energy sector with a vast experience of more than 25 years. We have worked from the designing of the inverters to the end product. We understand the electronics and the power solutions for India. Present solutions available in India are with solar inverter, which are designed for stable grid conditions & are imported with the technology developed according to the need of developed countries where the grid conditions are very stable.

India Grid power condition are very unstable & hence these inverters are more likely to enter into disconnect mode even when the solar power is available & cause loss of energy generation. We understood this gap and started developing an indigenous design that will not cause the loss of Energy Generation even in Indian unstable Grid conditions.

We found that in the Indian solar power sector needs a serious focus on product side as 60% of the solar panels are imported and as far as inverters are concerned, there is no Indian manufacturing company & design available to work in 100% sync with Indian unstable grid conditions. Therefore, we decided to fill this gap and developed new ranges of solar and energy saving solutions which are cost effective as well as completely in sync with Indian grid condition. Our vision at Micromax Energy is to be a complete solar solutions company.

WHY ARE THE SOLUTIONS OFFERED

BY MICROMAX ENERGY UNIQUE WITH RESPECT TO THE OTHER SOLAR SOLUTIONS AVAILABLE IN THE INDIAN MARKET? In the solar business, all solutions can be bucketed under two broad categories – firstly, energy generation and distribution and secondly, energy storage for backup. At present, we focus on the second category.

Energy storage solutions have been evolved a lot in the past decade. I would like to categorize the storage solutions under different generations considering the evolution path.

India being a country with the shortage of power, simple inverters are in use for the last 15 years. Here batteries get charged through grid power and stored power is used as backup during power cut situations to ensure continuous supply. This off grid solution or the first generation solution is mainly used at residential premises.

The conversion efficiency of this kind of inverters is generally in the range of 60- 80%, Hence , the cost of power used during power cut through this back up increases almost two times of the normal electricity cost. There is also an extra energy load on the grid for power requirement to charge the battery further creating more shortage in electricity.

The second generation solution or off grid solar inverter technology successfully addresses the power cost and grid overload related issues. In off grid solar inverters, batteries get charged through solar energy and acts as source of free power back up. This in turn, saves energy costs and ensures ensure no overload on the grid to charge the battery. This solution is quite effective for residential and office premises.

However, the second generation solutions are not capable enough to suffice the 24X7 huge load requirements in commercial or industrial entities.

Therefore, the third generation or on grid solar solution comes into play. On grid solar solution also use solar energy as the free source of backup power and ensures uninterrupted power supply due to grid connectivity.

Here, the extra energy produced through the solar system is sold to the grid through “Net Metering’ system. These on grid solar solutions can be paralleled up to megawatt scale for production of electricity. This in turn, works as a source of income generation for

consumers. This solution is applicable for residential, offices, commercial and industrial spaces. Presently, government is also promoting on grid solution due to its effectiveness. In India when people talk about solar, they mostly mention about this generation.

However, this on grid solution works in sync with electricity fed into the system. It needs round the clock electricity and works only when electricity is available from the power distribution company. This does not support at the time of power failure. Therefore, needs the back up of a small generator. Moreover, the ‘Net Metering’ system is not always profitable for power distribution companies. It may lead to a situation where the user may sell solar power to grid without buying any power from grid but the entire system needs to be maintained by the power distribution company.

Considering the limitations of the third generation solution, a new ‘hybrid solution’, i.e – online solar system with storage facility has been introduced in the global market. This is the fourth generation solution. In this system the user can store the additional solar energy generated at his end for his own use. But the provision of selling extra energy to the grid is dwindling as it is not always profitable for power distribution companies.

This solution is already facing such problems in Ukrainian and European countries.

Just like most of the leading power solution firms, Micromax energy offers solutions which fall under the first to fourth generations. Moreover, considering the typical power shortage and cost sensitive situations in the Indian market, we have introduced two new generations of solutions which are quite unique but cost effective. We work on next generation technology on storage along with solar to provide a complete solar power house without any grid connectivity. This fifth generation or ‘Hybrid plus’ solution is an improvised version of the second generation off grid solar inverters.

This grid independent competitive solar solution is ideal for the Indian conditions and saves cost as it uses solar power as the source of free power backup. This highly scalable solution is applicable for residential spaces, offices, commercial spaces, industrial usage etc.

However, cost of this solution is also much lower than the previous two generations as there is no need for maintaining an online system.

We also think a step ahead to address energy and cost saving needs of entities which have no space for solar panel installation or no power failure condition.

We have introduced the sixth generation solution or Smart Energy Storage and Saving System (ESSS) for such cases. This revolutionary solution works both with and without solar as it can store energy both from solar and grid.

In commercial spaces, power tariff is different in the different period of time. Smart ESSS stores power from grid during the hours of low tariff and utilise the same during the peak tariff hours. This in turn lowers the total power cost of the user. Secondly the fixed charge for the peak load is very high at any commercial space though the peak load is required only for a very short span of time. Therefore, it incurs an unnecessary cost on the user and also the power distribution company has to be prepared with that extra load which usually remains unutilised. Smart ESSS takes away worries of peak load demands as it is taken care by the internal storage. This, in turn, saves cost for both consumers and power distribution companies. This solution is ideal for offices, banks, commercial, industrial and residential applications.

With this vast portfolio of solutions, Micromax is far ahead of the other power solution firms present both in the Indian as well as Global market. Along with the inverter, we are also working on the motor for agriculture purposes. My vision is to position ourselves as a complete solar solutions company. I am sure that we will be able to achieve it soon.

To read full interview please visit www.solarquarter.com

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In Conversation ZNSHINE SOLAR HAS CLIMBED A STEEP LEARNING CURVE SINCE COMMENCEMENT OF ITS BUSINESS ACTIVITY IN INDIAN MARKET TWO YEARS AGO TELL US A BIT ABOUT THE RECENT TECHNOLOGY ADVANCEMENTS IN YOUR SECTOR? MR. COLLIN WANG VP International Sales & Marketing ZNSHINE PV-TECH CO.,LTD

LET’S BEGIN WITH A GLIMPSE OF YOUR COMPANY’S PRESENCE AND OFFERINGS IN INDIA? ZNSHINE Solar has climbed a steep learning curve since commencement of its business activity in Indian market two years ago. Today, we are more confident than ever to offer our products and services that best fit the local requirements. The feedback received from our Indian customers has all been positive and encouraging, which indicates that we have done something right. It reflects, we believe, our insistence in providing only the quality modules at fair price to our quality-minded customers here, just like what we have been doing in all other markets. The temptation to make big-volume sales at potentially qualitycompromising low price is massive, yet we have resisted with perseverance. It is our belief that the Indian customers deserve high quality and excelling service. We also make sure the customers here have access to the latest technology we bring to the global market, such as 12BB high efficiency modules for one that ZNSHINE Solar is launching now.

WHAT HAVE BEEN SOME OF THE RECENT DEVELOPMENTS AT ZN SHINE SOLAR ?

Having endured fierce competitions in various markets and successfully maintained an average growth of over 15% p.a. as a global PV manufacturer, as well as an IPP and EPC contractor in selected markets, ZNSHINE Solar has reached a new level of manufacturing excellence along with its production lines migrated to complete automation at once in alignment with a plethora of new PV modules, which are being launched in phases. This important overall upgrade is well supported by the company’s broad base of new investors since its successful IPO at NEEQ stock exchange, China version of NASDAQ.

FROM AN INDUSTRY POINT OF VIEW, THIS WILL CREATE A SENSE OF UNCERTAINTY IN THE MARKET WHERE THE PV PROJECT DEVELOPERS IN INDIA MAY GET INVERSELY HURT FROM A LESS COMPETITIVE MARKET HENCE ANTICIPATED COST FOR PV PROJECTS IN THE COUNTRY.

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The market is witnessing a steady migration towards diamond wired cells from the existing common technology of slurry sawed cells, thanks to the clear benefits of this new technological advancement. This changeover entails certain adjustments on the downstream processes, the first movers mastering the new development will have their advantages. In the meantime, doubleglass modules are receiving increasing acceptance in the market due to its obvious advantages and esp. when the right racking gears are in place.

On the other hand, utility scale projects developers are increasingly interested in self-cleaning modules

THE TEMPTATION TO MAKE

thanks to the clear benefit of low O&M cost.

ZN Shine is one of very few manufacturers that can

BIG-VOLUME SALES AT

guarantee all the features required for all climate

POTENTIALLY QUALITY

Low light performance, minimising Micro crack

COMPROMISING LOW PRICE IS MASSIVE, YET WE HAVE RESISTED WITH PERSEVERANCE.

These new developments are implemented on ZNSHINE production lines already with running batch orders.

WHAT ARE YOUR GROWTH PLANS FOR THE INDIAN MARKET? WHAT ARE THE MILESTONES YOU WISH TO ACHIEVE

BY THE END OF THIS FISCAL? As a quality-conservative and brand-conscious Tier 1 PV manufacturer and supplier, we position our business in India through organic growth as opposed to often transient ‘big bang’ splash only at the beginning, a healthy and long term growth to be gained through perseverance in providing our quality-minded customers with purpose-fit quality product and second to none services.

We do not set, in a way, time-constraint volume target for this market, as we believe it puts undesirable pressure on gaining volume at the risk of quality compromise and subsequently deterioration of brand equity in long run. The quality of our products and excelling services will reward us over time through words of our customers’ mouth.

WHAT HAVE BEEN THE LATEST TRENDS IN DEMAND FOR YOUR PRODUCTS & SERVICES IN INDIA? WHERE DO YOU SEE THE NEXT DEMAND GROWTH COMING FROM? More and more enquiries we received ask for solar modules of higher wattage, purpose-fit features and specs. Some customers require high wattage modules such as 350Wp panels for rooftop system to maximize power output on limited roof space; while others are interested in double-glass modules for BIPV applications. This type of requirements indicate the upcoming demand increase for distributed generation systems in the commercial/ industrial and residential segments.

conditions, like PID free, Higher efficiency, Good and hot sports, etc., to name just a few.

ANYTHING ELSE YOU WOULD LIKE TO ADD FOR OUR READERS We are concerned of the recent initiation of GOI policy launching Anti-Dumping investigation into Solar PV manufacturing base in China, Taiwan and Malaysia.

ZN SHINE IS ONE OF VERY FEW MANUFACTURERS THAT CAN GUARANTEE ALL THE FEATURES REQUIRED FOR ALL CLIMATE CONDITIONS, LIKE PID FREE, HIGHER EFFICIENCY, GOOD LOW LIGHT PERFORMANCE, MINIMISING MICRO CRACK AND HOT SPORTS, ETC., TO NAME JUST A FEW.

From an industry point of view, this will create a sense of uncertainty in the market where the PV project developers in India may get inversely hurt from a less competitive market hence anticipated cost for PV projects in the country, especially those successful bidders holding very aggressive PPA rates. In a broad perspective, the indigenous PV manufacturing capacity is far from what is required to achieve GOV target of installed capacity by 2022.

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In Conversation OUR PROCESS IS HIGHLY REGIMENTED AND VERY DETAIL-ORIENTED- WE’RE GOING TO OPERATE OUR ASSETS FOR 30 YEARS Airport, Lightsource now has a significant portfolio of sites across Northern Ireland.

MR. NICK BOYLE Group CEO Light Source

LET’S START WITH THE RECENT DEVELOPMENTS AT YOUR ORGANISATION IN LAST ONE YEAR The past twelve months have probably been some of the busiest Lightsource has ever seen, which really is saying something.

WE’RE ALSO PAYING CLOSE ATTENTION TO THE SOLAR DEVELOPMENTS IN CHINA. WHILE LIGHTSOURCE ISN’T CURRENTLY LOOKING TO MOVE INTO THE AREA, WE’RE KEEPING A KEEN EYE ON THE INDUSTRY JUST IN CASE! Since the summer of 2016, we’ve launched several international business ventures,including offices in San Francisco, Philadelphia, Mumbai and New Delhi, and we’ve recruited two highly experienced executive teams with extensive regional industry expertise to lead our two new business units – Lightsource North America and Lightsource IMEA (India, Middle East and Asia). The Lightsource IMEA team has already successfully secured the company’s first tender, winning a bid for a 65MW ground-mount solar farm in the Indian state of Maharashtra.Construction is set to begin imminently, and we anticipate completion by the end of the financial year.

Late 2016 saw Lightsource’s industry-leading Operations and Maintenance division, the largest provider of solar O&M services in Europe, secure a 30 year contract for 365MW of solar assets previously owned by SunEdison yieldco Terraform.

These 24 fully operational solar farms are located across England and Wales, and are all now owned by Vortex, a European renewables investment platform of private equity firm EFG Hermes.

In the early months of 2017, Lightsource successfully planned, developed, constructed and connected more than 80MW of solar farms across Great Britain and Northern Ireland.These projects included a portfolio of 14 sites in England, Wales and Scotland, connected in time to meet the UK government’s final Renewable Obligations Certificate deadline in March. The ROC portfolio connection was followed by the completion of Northern Ireland’s largest solar energy development to date, consisting of five interconnected solar farms totalling 32MW across Country Antrim, wired in to one single point of grid connection.Adding this cluster of sites to our historic Crookedstone solar farm, the first ever large scale ground mount solar installation on the island of Ireland, providing power to Belfast International

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Perhaps our most significant achievement in the last year occurred in July, when Lightsource and BlackRock Real Assets have entered in to a strategic partnership with a value of £1billion. The partnership targets the acquisition and ownership of UK solar power generation assets, representing a total target installed capacity of circa 1GWp, which we seeded with 200MW of our own assets

AS A DEVELOPER, WHAT ARE YOU LOOKING FOR IN NEW GEOGRAPHICAL MARKETS? The decision to move internationally was not one that we took lightly. A great deal of thought, discussion and planning went into the development of our global expansion strategy. Rather than trying to break into 20 markets at a time, we’re focusing on just two new markets to begin with – North America and IMEA. We selected these regions based on two main criteria.

Firstly, we wanted markets where the rule of law is strong, where we can be sure that if we tick all the boxes and fulfil all stages of the process that we’re actually going to be able to achieve a positive result at the end. We’re not afraid of hard work; if the barrier for entry is hard work then that’s only a barrier for other people. Our process is highly regimented and very detail-oriented- we’re going to operate our assets for 30 years, therefore it’s in our interests to get things right from the very beginning.

The second criteria we took into account was market size.We looked for competitive, auction-oriented markets, capable of providing 1GW or more, in order to drive down costs. Our aim in new markets is to supply renewable energy to large corporates at a lower cost than that offered by traditional utility companies.

WHICH COUNTRIES DO YOU BELIEVE WILL SEE MAXIMUM SOLAR ENERGY INVESTMENTS THIS YEAR? We anticipate significant advancements in the solar industry in both America and India in the near future, which is another reason why we’ve chosen to expand into those markets.

The American energy landscape has reached a point where a large proportion of their grid and generation infrastructure will need to be retired in the near future, and the electricity supplied by that infrastructure will need to be obtained from other sources. Solar is perfectly placed to fill that need, using the existing networks and structures or creating new ones as necessary.

India has an enormous need for electricity generally – there are 300 million people across the country without electricity, so it is a fast-paced market with a great deal of room for the solar industry to grow.It’s a market that has already proposed to deliver over 100GW of solar and under Prime Minister Modi’s direction, the trajectory is looking extremely positive.

We’re also paying close attention to the solar developments in China. While Lightsource isn’t currently looking to move into the area, we’re keeping a keen eye on the industry just in case!

WHAT ARE YOUR PLANS FOR THE INDIAN MARKET? Lightsource hopes to build a multi-GW portfolio made up of a mix of SECI, local and SME installations, with a range of different financial upsides. We look forward to operating a portfolio of profitable projects from which we can drive efficient revenues, long into the future.

We intend to use not just the central government SECI tenders where the provisional development is essentially removed because they are ready to build, but also to actually develop sites in our own rights.

While we’re happy to have the critical mass of the business delivered via the SECI tenders, we want to use our foothold in the region to then develop and build sites ourselves from scratch.

PERHAPS OUR MOST SIGNIFICANT ACHIEVEMENT IN THE LAST YEAR OCCURRED IN JULY, WHEN LIGHTSOURCE AND BLACKROCK REAL ASSETS HAVE ENTERED IN TO A STRATEGIC PARTNERSHIP WITH A VALUE OF £1BILLION.

In order to realise these plans, we’re working with some of the members of the incredibly talented regional leadership team at SunEdison to create a foothold in the area. We firmly believe that the key to Lightsource’s success in any new market is to identify teams that are familiar with the market and have an excellent track-record of solar success.

WHAT ARE THE MILESTONES YOUR IMEA PLATFORM WISHES TO ACHIEVE

BY THE END OF THIS FISCAL YEAR? In the immediate future, Lightsource’s main goal in India is to successfully build and connect the solar farm in Maharashtra by the end of the 2016/17 financial year.

IN THE EARLY MONTHS OF 2017, LIGHTSOURCE SUCCESSFULLY PLANNED, DEVELOPED, CONSTRUCTED AND CONNECTED MORE THAN 80MW OF SOLAR FARMS ACROSS GREAT BRITAIN AND NORTHERN IRELAND.

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In Conversation THE FUTURE OF SOLAR ENERGY IN INDIA LARGELY DEPENDS ON ACHIEVING THE AMBITIOUS SOLAR POWER GENERATION TARGET OF 100 GW BY 2022 ROOFTOP HAS BEEN A GROWING SEGMENT. DO YOU SEE MORE BUSINESS FROM THE OFF-GRID MARKET IN INDIA OVER THE NEXT 5 YEARS? MR. SIMARPREET SINGH Head, Strategy Hartek Group

LET’S BEGIN WITH A GLIMPSE OF YOUR COMPANY’S PRESENCE AND OFFERINGS IN INDIA? The Chandigarh-based Hartek Group is one of India’s fastest growing concerns catering to the power sector through five strategic business units—Power Systems, Rooftop Solar, Power Distribution Products, Fuel Services and Value-Added Services. An integrated conglomerate contributing immensely to the entire power sector value chain, the Hartek Group also manufactures a complete range of power distribution equipment/solutions catering to the needs of the industry as well as utilities. Having a long-standing tie-up with reputed global suppliers like Siemens and Schneider Electric, we have secured more than 3,000 clients since our inception 26 years ago.

FOCUSED ON DEVELOPING A SUSTAINABLE POWER ECOSYSTEM, WE ARE ALSO FORAYING INTO RESIDENTIAL AND SMALL-SCALE SOLAR.

Our flagship company, Hartek Power Pvt Ltd, is one of the leading Engineering, Procurement and Construction (EPC) companies in the country with expertise in executing high-voltage substation turnkey projects and a presence across 17 states.

Held in high esteem for its uncompromising quality standards and timely execution of projects, Hartek Power provides complete EPC solutions on substations and transmission lines to the industry, independent power producers (IPPs) and utilities. It has created immense value in the T&D value chain, as reflected in its execution of more than 150 highvoltage and extra high-voltage substations and transmission lines.

An emerging player in renewable energy and a part and parcel of India’s solar sector, we also provide complete solar EPC, turnkey and rooftop solar installation solutions. Having connected about 600 MW of solar power to the grid for leading IPPs, we have recently been rated as the fourth largest solar EPC player in India by Mercom Capital Group, a leading market intelligence firm. Having commissioned 13.75-MW rooftop solar projects, our rooftop solar business vertical, Hartek Solar Pvt Ltd, has also been rated among the notable rooftop solar installers in the country with a 2% market share

by Mercom Capital. We aim to enhance our share in rooftop by laying more emphasis on commercial and industrial categories. Focused on developing a sustainable power ecosystem, we are also foraying into residential and small-scale solar.

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The rooftop segment is set to grow at a much faster pace than the market for utility-scale projects with net metering expected to emerge as a major game changer. While utility-scale projects will continue to play an extremely important role in contributing to India’s energy security, the potential of off-grid solar is immense, considering that the 100-GW target for 2022 includes an ambitious 20 GW from off-grid systems alone. This grand target brings a world of opportunities for companies like the Hartek Group which are focusing on micro-grids and off-grid solar. The private sector is ready to cash in on off-grid opportunities and with the right mix of policy incentives from the government, off-grid solar will thrive in years to come. It will, however, require meticulous planning and commitment to overcome challenges like high capital costs, poor subsidy disbursal, minimal guarantee of returns and operation and maintenance. Once that happens, the 20-GW off-grid target will look distinctly achievable.

PROJECT PERFORMANCE IS BECOMING AN INCREASINGLY IMPORTANT FACTOR FOR PROJECT DEVELOPERS. HOW DO YOU ADDRESS THE PERFORMANCE RELATED DEMANDS & CONCERNS OF THE PROJECT OWNERS? When it comes to solar EPC projects, we have always risen to the expectations of project developers by matching speed with quality, which is a real challenge. Solar projects have tighter deadlines with a lot of emphasis on design. It takes four-five months to execute a solar project as against 18-24 months that a conventional power plant takes. So there is always that deadline pressure. We address these performance-related demands and concerns of developers through coordinated teamwork to avoid last-minute glitches that can delay a project. We also have the expertise to synchronise substations of solar projects spread over a huge area, which requires an eye for detail. Since we also manufacture power distribution equipments, managing our supply chain well to meet deadlines is not hard.

WHAT ARE SOME RECENT TECHNOLOGY TRENDS THAT YOU HAVE OBSERVED IN THE UTILITY SCALE SOLAR SEGMENT? A lot of R&D is taking place the world over to come up with more efficient and cost-effective solar modules, and the results have been quite encouraging.

While new energy storage technologies are being introduced in the upcoming solar parks and mega solar plants, lithium ion batteries are still the most preferred. The concentrated solar power (CSP) technology is also gaining acceptance in view of its remarkable efficiency.

SOLAR TECHNOLOGY IS EVOLVING WITH TIME. IS THERE ANYTHING THAT YOU ARE LOOKING FORWARD TO HAPPEN IN THE NEXT FEW YEARS? HOW DO YOU THINK THE INDUSTRY WOULD SHAPE UP IN NEAR FUTURE? We are looking forward to more efficient and costeffective solar panels to make their way to the market as research on better solar module technologies is going on at a furious pace. The concentrated solar power (CSP) technology also holds a lot of promise.

Though expensive, it will come up in a big way in years to come in view of its higher efficiency. The next couple of years will witness a phenomenal increase in

AN EMERGING PLAYER IN RENEWABLE ENERGY AND A PART AND PARCEL OF INDIA’S SOLAR SECTOR, WE ALSO PROVIDE COMPLETE SOLAR EPC, TURNKEY AND ROOFTOP SOLAR INSTALLATION SOLUTIONS. the number of solar parks, bringing the focus on distributed solar and energy storage technologies.

The future of solar energy in India largely depends on achieving the ambitious solar power generation target of 100 GW by 2022. With the cumulative solar capacity going up to 15.6 GW, as on June 30, 2017, the market sentiment is upbeat because of the record number of installations. While 2017 is expected to register an addition of 8-10 GW, we could also face a slowdown in the short term as not many tenders are being released. While the drastic reduction in tariffs will lead to more demand, it has also left investors concerned. But with solar panel costs likely to plummet further and energy storage technologies changing the efficiency equation for the better, they should not have much to worry about. The government will majorly drive the demand with the NTPC, NLC, CIL, NHPC and Railways all inviting tenders for solar projects. According to the Bloomberg New Energy Outlook 2017 report, more efficient batteries will provide flexibility of use and boost the reach of renewables, cutting the cost of solar energy by 66%.

With energy storage picking up and costs becoming increasingly viable, this formidable combination will help create a truly sustainable ecosystem and reduce carbon footprint considerably.

ANYTHING ELSE YOU WOULD LIKE TO ADD FOR OUR READERS It gives me immense satisfaction when I look back and reflect how the Hartek Group has come a long way from a small electrical trading company to a diversified conglomerate in the past 26 years.

As India scripts its growth story, we rededicate ourselves to contributing to the greater cause of nation building through value creation in the power infrastructure and renewable energy space. Over the years, the Hartek Group has seen impressive growth, which reflects all the hard work put in by our industrious team. Sustainability being at the core of our strategies, we will continue to invest in sustainable technologies. Over the years, we have carved a niche for ourselves on account of our people-centric approach and a strong value system driven by transparency and ethical dealings. The key factors that have contributed to the success of the Hartek Group and enabled it to retain a prestigious clientele are timely execution of projects, unmatched quality standards, a high-quality product basket and focus on services.

WE AIM TO ENHANCE OUR SHARE IN ROOFTOP BY LAYING MORE EMPHASIS ON COMMERCIAL AND INDUSTRIAL CATEGORIES.

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In Conversation BUILDING ON THE GROWTH, WE HAVE DIVERSIFIED IN THE FIELD OF INVESTING IN ROOFTOP SOLAR PROJECTS UNDER RESCO MODEL

MR. VINEET MITTAL Director Navitas Solar

LET’S BEGIN WITH A GLIMPSE OF YOUR COMPANY’S PRESENCE AND OFFERINGS IN INDIA? Navitas Solar has presence across nation with warehouses and offices located strategically to maintain supply chain and offering our customers a swift and timely delivery of solar panels making it a hassle free experience. We also offer EPC services for turnkey delivery of Solar Power projects under both CAPEX and RESCO model leveraging in-house manufacturing of major components used such as solar panels, inverters, transformers and module mounting structure through group companies and partnerships established.

WHAT HAVE BEEN SOME OF THE RECENT DEVELOPMENTS AT YOUR ORGANISATION? We have expanded our state of the art module manufacturing facility to 200 MW p.a. capacity from existing 75 MW p.a., making us one of the biggest manufacturers of high quality solar PV panels. We have taken steps to ensure quality and reliability of modules manufactured at our facility by installing latest technology testing apparatus such as Pressure Cooker Test Chamber for testing quality of back sheets, Climate Chamber for Damp Heat, Thermal Cycling and Humidity Freeze tests and UV Chamber for UV Pre-Conditioning test. We continuously

evaluate available and upcoming technologies which enhance the manufacturing process and implement at our facility as it is the most important factor along with quality of raw material behind performance of the solar PV panels.

TELL US A BIT ABOUT THE RECENT TECHNOLOGY ADVANCEMENTS IN YOUR SECTOR? There has been a development in technology for increase of efficiency of cell and PERC is leading this development. These cells have an additional dielectric layer at the rear of the cell and it reflects unabsorbed light back to the cell thereby increasing the absorption of photons and in turn increasing efficiency of cell. There has also been development in Building Integrated Photo Voltaic (BIPV) modules which can be used instead of normal glass in buildings and produce electricity along with aesthetic development of the building.

We offer products using both of these technologies and have our R&D team working on developing products utilising latest technologies namely 1500 V solar PV panels which is an upcoming trend worldwide.

WHAT ARE YOUR GROWTH PLANS FOR THE INDIAN MARKET? WHAT ARE THE MILESTONES YOU WISH TO ACHIEVE BY THE END OF THIS FISCAL? We have been able to achieve turnover of 20 Million USD in 2 years and keeping in mind the potential of growth of solar sector in India and GOI’s ambitious target of 100 GW by 2022 especially 40 GW of rooftop solar from the total, we have expanded our manufacturing facility to 200 MW p.a. and plan to expand it to 500 MW p.a. by next year. In our opinion, solar sector is going to witness exponential growth and we have planned our growth to match the sector growth. By end of this fiscal, we are looking to cross turnover of 50 Million USD and build on the positive momentum.

WE HAVE BEEN ABLE TO ACHIEVE TURNOVER OF 20 MILLION USD IN 2 YEARS AND KEEPING IN MIND THE POTENTIAL OF GROWTH OF SOLAR SECTOR IN INDIA. WHAT HAVE BEEN THE LATEST TRENDS IN DEMAND FOR YOUR PRODUCTS & SERVICES IN INDIA? WHERE DO YOU SEE THE NEXT DEMAND GROWTH COMING FROM? We have seen steady growth in demand of our products and services. Building on the growth, we have diversified in the field of investing in rooftop solar projects under RESCO model. Majority of our demand comes from commercial and industrial sector and we expect residential sector to pick up in near future when returns from commercial projects would become more visible and their viability established.

It is our priority to add agricultural and rural sectors as a major proportion of our demand growth and we are working to establish partnerships with relevant stakeholders.

ANYTHING ELSE YOU WOULD LIKE TO ADD FOR OUR READERS. We’d like to cordially invite readers of SolarQuarter to visit our recently expanded facility and take a look at our testing and manufacturing infrastructure of our fully automatic manufacturing facility.

BENARA SOLAR SHALL BE EXECUTING PROJECTS IN HAND WORTH RS. 600 CRORES IN NEXT 12 MONTHS

MR. VIVEK BENARA Director Benara Solar Pvt. Ltd.

LET’S BEGIN WITH A GLIMPSE OF YOUR COMPANY’S PRESENCE AND OFFERINGS IN INDIA? Benara Solar is one of the fastest growing company in Solar Energy Business Segment - having its presence in Small Home Lighting Systems, Street Lights, Solar Pumps, Rooftop Solar Systems & Solar Parks. We plan to be amongst the top developers in Northern & Western India in next 3 years time.

challenging projects in UP & New Delhi which enables power solutions on Low cost housing & MCD Schools under various Government Schemes.

Government agencies to enhance and execute the roof top solar projects in tandem with government’s targets.

TELL US A BIT ABOUT THE RECENT TECHNOLOGY ADVANCEMENTS IN YOUR SECTOR?

ANYTHING ELSE YOU WOULD LIKE TO ADD FOR OUR READERS.

Benara Solar is contemplating technology tie ups in the field of Solar Module Manufacturing with leading manufacturers globally and will be investing upto Rs. 200 Crores in next 3 years towards manufacturing of Solar Modules.

BENARA SOLAR HAS

WHAT ARE YOUR GROWTH PLANS FOR THE INDIAN MARKET? WHAT ARE THE MILESTONES YOU WISH TO ACHIEVE BY THE END OF THIS FISCAL?

EXECUTED SOME OF THE

Benara Solar shall be executing projects in hand worth Rs. 600 Crores in next 12 months.

DELHI WHICH ENABLES

WHAT HAVE BEEN SOME OF THE RECENT DEVELOPMENTS AT YOUR ORGANISATION?

WHAT HAVE BEEN THE LATEST TRENDS IN DEMAND FOR YOUR PRODUCTS & SERVICES IN INDIA? WHERE DO YOU SEE THE NEXT DEMAND GROWTH COMING FROM?

Benara Solar has executed some of the most

Benara Solar is working closely with various

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Benara Solar is looking at various tie ups with companies in India to invest & execute the projects at various level in the Indian states.

MOST CHALLENGING PROJECTS IN UP & NEW POWER SOLUTIONS ON LOW COST HOUSING & MCD SCHOOLS UNDER VARIOUS GOVERNMENT SCHEMES.

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Tech Insights MODULE CLEANING – OPERATIONS & MAINTENANCE VIEWPOINTS INTRODUCTION A lot has been deliberated about module cleaning but it continues to a key area of interest at Solar Power Plants. The belief is cleaner Modules translate to better generations nos. and thereby higher revenues.

However, it needs to be seen in this perspective – “Different Strokes for Different Plants”. Module cleaning using water cannot be a clinically driven process scheduled once or twice a month. A more pragmatic approach is required to carry out this activity based on the dust levels on the panels, terrain, weather conditions, appreciable drop in performance ratio(PR) under no break down conditions. Many clients still go for a programmed schedule and expect the Operations & Maintenance(O&M) provider to do this activity religiously since it is a contractual obligation; the time has come to have alternate approaches and to use available technology to salvage a precious commodity, water. Yes, water, since Solar Plants may last 25 years but for how long will the water be available for this mundane activity across regions? Also, time should be devoted to inverter performance analysis to arrive at critical areas where performance is affected and to check whether it is attributed to deficiencies in module cleaning.

ECONOMICS A Silicon Polycrystalline module requires a conservative 2.5 litres of water/permodule during module cleaning.

So, a 10MWp plant typically will use 85,000 litres of water for every cycle. Add to this the cost of water, which is mostly bought in remote & barren sites and the cost of labour. For 9 cycles in dry months it can totally cost upwards of Rs3,00,000/annum. If water is scarce then the costs can be 25- 30%higher.

PROS & CONS OF MODULE WET CLEANING Cleaning with pressure hose can remove stubborn dirt & grime. However, the dirt can settle at the corners of the module if the water does not flow off properly.

Modules at a larger tiltangleareless likely to hold the water due to gravity. Softwater is recommended to be used to avoid scaling on the modules, post evaporation.

Availability of soft water cannot be guaranteed in remote areas with scarce resources and that puts a brake on the process at times. Reverse Osmosis(RO) plants installed at many sites also fail quickly because of the hardness of the water available in many parts of the country; this is an added cost to theclient.

Wipers can be used to remove any settled dirt but the cloth wipers used should not scratch the surface, which in the long term can be detrimental. The design of the wipers should be fool proof that there is no deposit of lint on the modules while or after cleaning.

A couple of other constraints are there for wet cleaning - it can be done for a short time-period, mostly before 10 AM and after 4 PM when the module temperatures are in the 30-35 degrees C range in the tropics. Many clients shrink the time to a 2 hour window between 5-7 AM and 5-6 PM, which can affect the cleaning cycle and can prolong for more days in a month. It is better to align to the manufacturer guidelines for cleaning

and follow a 15day cycle for cleaning at a medium size plant. Cleaning post dusk has its own risks of personal safety to the individuals and the cleaning quality may be erratic too though this is the most preferred time for clients.

APPROACHES Dust deposition pattern is to be studied in detail to organize the module cleaning activities better. It is usually dependent on weather conditions and the type of soil and vegetation at / near the site.Limited wet cleaning depending on the location can be carried out based on the assessment of the dust and the level of dipin performance ratio. If the O&M provider is meeting contractual obligationson Performance Ratio (PR) then a cycle can be staggered based on mutual consent between the O&M provider & the Plant developer.

That can indirectly save the costs of bought out water / power costs of running pumps, if water is available atsite. In India, the dust levels during the pre-monsoon months (Mar- May) are high and the cleaning will have to be more regular and practically daily whereas in the monsoon months it will not be required, and in the other months it can decided on a case to case basis.

CASE STUDY In a Rajasthan plant, it was noticed that module cleaning, when not done for 2 months in a row did not affect energy generation considerably; the loss of generation of about 3 percent in 2 months could easily amount to atleast 70% costs of doing module cleaning itself. If more cycles were planned each month, as some clients may insist, then then it will be reasonable business sense to not clean at all!

Data with respect to module cleaning for a Thin Film plant shown below is for a 6-month period where generation for 10 non-break down days have been considered. No Module cleaning was done in Months Sep & Oct and months Jan & Feb. Only during the Nov & Dec months two cycles of module cleaning was carried out in each month.The results showed up that there was only a 1.5% dipin generation/month on an average. This is at least 50% lower deviation than usually noticed if a plant is not cleaned once in a month. A general thumb rule in the industry is that Soiling losses are at 3% -4% between a plant not cleaned Vs the same plant being cleaned regularly. A point to note is that there is always a possibility of 1.5% -2% difference of generation on daily basis between an inverter having the maximum generation of the day and the median generation across all inverters in a medium / large size plant where module cleaning is regularly happening. This is because the cleaning cycle will be blockwise and will cover associated inverters day by day.So, aminimum 0.5% - 1% generation loss may be inherently seen at a plant level with inverters’ performance variations (as an example for a 10Mwp plant) even if module cleaning isregular. If plants have seasonal tilt it is better to concentrate more on the module cleaning in the seasons where the tilt is 3-5 degrees with an eye still on the Performance ratios.

The trigger points can be decided mutually as to when to do the module cleaning rather than adhere to a

Generation Data

300

8 7

250

schedule which starts on 1st of every month and ends on 15th/20th. Depending on the type of soil at site the cleaning cycle can be altered as some areas have clay like soil where the dust particles can stick more to the glass and it will be imperative to do cleaning regularly whereas in other areas where the soil or dust is hard sand and it may not stick. If there are unseasonal rains during each month the module cleaning cycles can be abandoned or continued a case to case basis. It is better to review site conditions after unseasonal rains as it leaves behind a lot of unwanted dust on the modules.

Selective cleaning can bed one on affected modules alone. Inverter wise PR measurements can indicate the blocks that may require cleaning.

MISCELLANEOUS ISSUES While doing module cleaning thepyrano meters must be cleaned as pera desired frequency. Usually these are cleaned once at the beginning of each cycle. This frequency should not be tampered since this can affect performance ratio measurements at the plant.

Cleaning it daily is not advisable as it may lead to disturbing the inclination settings, lead to inaccuracies in measurements and may indicate poor plant performance, which may not be thecase.

Additional Module cleaning may be required to be done if the bird population at the plant is high since bird droppings on solar panels will be very common.

This is more serious as the acidic nature of the droppings can affect performance significantly by shading and hot spot creation. Water is still the best agent for cleaning bird droppings as solvents are not usually recommended by module manufacturers.

Changing bird behaviour is the best approach or some deterrent is to be applied. Use of bird scare mechanism is suggested and has been seen to be an apt deterrent.

Dragon flies are other creatures that can affect Solar plant aesthetics a lot. These flies that thrive near water bodies can lay thousands of eggs on Solar panels, many a time mistakenly considering the panels to be water bodies. Cleaning the eggridden panel is a tough task though the effect on plant performance has been noticed to belimited.

Way forward for Module cleaning: Use of technology should be stepped up like use of drones for monitoring dust levels at the plants or dry cleaning using robots. The advantages of using robotic cleaning are significant as a consistent 3-3.5% higher output is possible daily over conventionally wet cleaned modules where cleaning schedules are staged over a fortnight /month. The pay back on the investment can be within a decent 5-7 years. Developers can think of working on these lines as it has always been a classic complaint in the industry on the quality and pace of wet cleaning of modules in large size plants. The suspicion mostly is that PRs are low because of inadequacy of Module cleaning.

Other technologies to be looked at here are dust sensors and a self-cleaning mechanism. Different methods – one as a trigger point to clean when dust reaches a threshold can be thought about; those arrays or blocks can be marked for wet cleaning b) to auto clean the panel by creating electrostatic charge to repel dust. Suitable technology needs to be scouted for and may be commercially available. Developers can also explore buying more superior modules with good Antireflection and Anti-Soiling properties for any future investments; it can surely cut the recurring costs of wet cleaning.

200

5 4

150

3

100

Insolation

Energy Generation

6

2 50

1

0

0 Sep-16

Oct-16

Nov-16

No Module Cleaning Actual Generation (Mwh)

Dec-16

Module Cleaning Cycle ON Months

Jan-17

No Module Cleaning

Normalised Generation (Mwh) for daily insolation of 6.0KWh/m^2 for 10 days duration

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Feb-17

Insolation (Kw/m^2)

MR. GANESH H AVP – ANALYTICS Avi Solar

Solar Quarter • August 2017 52

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Solar Quarter • August 2017 53

Industry Insights UNDULATION MANAGEMENT WITH TRACKERS Even though solar trackers appeared in the market nearly two decades ago, the utility scale solar market for tracker in India is still at its nascent stage owing to customer perception on need for extra land and higher grading.

level tolerances up to 1m. Through engineering design, a layout is provided which has a combination of posts embedded in RCC foundation and in plain concrete foundation. The muff of RCC foundation is raised to ensure that the top of the foundation remains the same.

However, with new innovations, and with entry of new tracker companies in the market, some of these perceptions and disadvantages of tracker have been eliminated. As timelines for solar plant development are crunching, most developers opting for Tracker want minimum grading at site. Thus, managing undulations with tracker has become the critical feature for developers. A traditional building block tracker which has a shaft running throughout the plant connecting almost 20-30 rows does have this disadvantage of requiring a flat land. The use of Single Axis trackers which doesn’t have any coupling in E-W direction helps overcome this disadvantage.

The solution has been implemented at CleanSolar Site in Telangana. As can be seen in the contour drawing, the land is extremely undulated, however without any grading work, 7.5 MW tracker was installed through a combination of RCC foundations & Piling.

MSAT -100, Mahindra Susten Azimuth Tracker is a testament to engineering improvisation and simplicity for managing site undulations. With MSAT-100 900mm slope for 60m span in North-South direction and 300mm slope can be managed in East-West direction for 5m pitch. The undulations can be managed through various means, some of the ideas already implemented on site are listed below:

COMBINATION OF RCC FOUNDATIONS & PILING This solution is conventional way of managing ground

VARYING STUB LENGTH RCC foundations could be a costly proposition and requires more time for land parcels with high undulations. Varying stub length from 2.7m to 3.5 m is another way to handle these undulations. As there is no E-W coupling between the rows, this solution becomes extremely viable for highly undulated sites. The stubs are color coded and all the foundation points marked clearly in the layout to ensure ease of installation at site.

undulations the torque tube is at a symmetrical position.

The additional advantage of Coupler over varying stub length is ease of installtion and lower costs.

The right mix of any/all of the three solutions ensure tracker can be installed at almost any site with ease, without need for grading. Also, with reliable technologies coming in, Solar tracker is now making sense more than ever. Mahindra Susten with its alternate and simple approaches ensure reliability and bankability of its products to ensure better rigidity and ease of installation.

GRADING PHILOSOPHY

USE OF COUPLERS Usage of couplers below ground is one of the other solutions for management of undulations on land. With this solution, even if the below ground level depth of the post is less than required, couplers ensure that the above ground level length remains the same, so that even with

MSAT100 is designed for a tolerance of 300mm level difference of ground topography. Installer and engineers should work out effective strategies for level difference above this level. Possible solution for accommodating the grading can be as follows, 1. Optimized local grading for min excavation quantity 2. Provision of RCC pile Note that a third provision with filling is possible only when detailed effective geotechnical study is conducted on the filled area and pull out tests are positive.

Following self-explanatory scenarios are acceptable for grading.

PRE-BID ASSISTANCE

CONSTRUCTION SUPERVISION

COMMISSIONING ASSISTANCE

THIRD PARTY REVIEW

PLANT AUDIT

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Solar Quarter • August 2017 54

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Solar Quarter • August 2017 55

Industry Insights CHINA’S INVESTMENTS TO SCALE UP IN INDIAN PV SECTOR BACKGROUND: DEVELOPMENT OF RENEWABLE ENERGY

commercial users. India is home to the world’s largest solar PV power plant, Kamuthi. Its capacity exceeds that of existing plants by over 100MW.

In India, coal still provides the lion’s share (up to 60%) of national energy production. As the world’s largest coal consumer and the third largest producer, India is faced with a great challenge in adjusting its energy structure.

GRADUALLY LIBERALIZED FOREIGN INVESTMENT ENVIRONMENT

India began to realize the importance of renewable energy during the 1970s. The Ministry of New and Renewable Energy (MNRE) has vigorously promoted the industry’s development. According to the Intended Nationally Determined Contribution, India is committed to promoting the long-term sustainable development of clean energy. It aims to increase the use of non-fossil fuel for power generation to 40% by 2030.

India is gradually liberalizing access for foreign investors. This creates a better investment environment and facilitates the development of a renewable energy industry chain. The manufacturing and transport industries serve as important energy-consuming sectors. They not only invigorate the renewable energy market, but also improve supporting infrastructure through their own development.

Renewable energy capacity rose from 2% to 13% between 2002 to 2016[1]. As of April 2016, India became the world’s third largest electricity market with installed capacity exceeding 300GW and renewable energy capacity of more than 40GW

Foreign investors may invest in most sectors in India.

Prohibited sectors are lotteries, gambling, banking and foreign exchange, urban real estate development and rural housing construction, tobacco and industries where private capital is not allowed (such as nuclear energy development and rail transport save for large scale rapid transit systems).

As shown in the chart below, India is expected to become the third largest renewable energy market by 2040, preceded by China and the United States.

THE RISE OF THE SOLAR PHOTOVOLTAIC (PV) INDUSTRY IN INDIA India’s Prime Minister Narendra Modi wishes to build a giant solar park to facilitate India’s shift from “carbon credit” to “green credit”. Goals include directing $100 billion to solar PV investments by 2022 and tripling renewable energy capacity.

These policies will bring a great amount of capital to the Indian market. SoftBank Group Corporation, a Japanese telecom giant and major investor, together with its co-investors, have revealed plans to invest $20 billion in the solar energy market in India. According to data from Energy Trend and Livemint (an Indian media company), India, following China, the United States and Japan, was the world’s fourth largest solar market in 2016. With an increased PV capacity of 8.8GW, it has the potential to surpass Japan and become the world’s third largest solar PV market in 2017.

The growth of India’s solar PV energy market has been stimulated by adequate sunshine, government policies, booming overseas investment and new finance channels (such as loans from the New Development Bank). Rooftop solar power devices are experiencing the fastest growth in India’s renewable energy sector due to a rapid rise in demand from both industrial and

There are two ways that foreign investors can enter the Indian market – via the “automatic” route or the “government approval” route. These are similar to the “filing” and “approval” requirements in China.

Foreign direct investment (FDI) policies restrict investment in certain industries. If foreign investment is below the threshold (usually identified by acquired shares or contribution to registered capital), no prior approval is required. Investment exceeding the threshold is either prohibited or requires government approval. Thresholds vary across sectors. For example, FDIs with an investment of over 74% in green-field airport projects, over 49% in national defense projects and over 49% in telecommunications services are subject to prior government approval.

In June 2016, the Indian government introduced reforms in some government approval route sectors, which significantly liberalized FDI limits in local purchasing.

These reforms affected retail, national defense and civil aviation, pharmaceuticals, agriculture, broadcasting, cable television media and other key sectors.

With respect to energy industry, except the nuclear energy sector which is prohibited for private investment and foreign investment, foreign investors can invest in renewable energy industries such as solar PV under the “automatic route “. There is no government approval requirement or investment limit.

BRAZIL26.3TABLE A9: WORLD CONSUMPTION OF HYDROELECTRICITY AND OTHER RENEWABLE ENERGY BY REGION, REFERENCE CASE, 2011-40 (QUADRILLION Btu) History Region OECD OECD Americas United Statesa Canada Mexico and Chile OECD Europe OECD Asia Japan South Korea Australia and New Zealand Total OECD Non-OECD Non-OECD Europe and Eurasia Russia Other Non-OECD Asia China India Other Middle East Africa Non-OECD Americas Brazil Other Total Non-OECD Total World

Projections

2011

2012

2020

2025

2030

2035

2040

Average annual % change, 2012-40

13.1 7.9 4.6 0.9 10.7 2.5 1.6 0.2 0.7 26.3

12.9 7.7 4.2 1.0 11.5 2.5 1.6 0.2 0.7 27.0

15.6 9.3 4.8 1.5 15.7 4.1 2.3 0.7 1.2 35.5

16.6 9.7 5.1 1.8 16.7 4.6 2.5 0.8 1.2 37.9

17.5 9.9 5.5 2.1 17.3 5.1 2.7 1.0 1.4 39.8

18.6 10.4 5.8 2.4 18.4 5.4 2.8 1.1 1.5 42.5

20.3 11.3 6.3 2.7 19.6 5.7 2.7 1.2 1.8 45.5

1.6 1.4 1.4 3.7 1.9 3.0 2.0 7.1 3.2 1.9

3.0 1.7 1.3 16.1 8.9 3.3 3.9 0.2 4.3 10.4 7.0 3.5 34.1 60.4

3.0 1.7 1.3 18.8 11.4 3.3 4.4 0.2 4.5 10.3 6.8 3.4 36.8 63.8

3.4 1.8 1.6 31.5 21.0 4.7 5.8 0.8 5.4 10.5 7.0 3.5 51.5 87.0

3.8 2.2 1.6 37.1 23.7 6.4 7.1 1.4 6.8 11.9 8.0 3.9 60.9 98.8

4.0 2.4 1.6 42.1 26.2 7.7 8.2 1.6 7.8 12.8 8.6 4.2 68.3 108.1

4.3 2.5 1.8 47.2 28.8 9.1 9.3 2.3 9.0 14.3 9.8 4.5 77.0 119.5

4.4 2.5 1.9 52.6 31.3 10.8 10.5 2.6 10.3 15.9 11.1 4.9 85.8 131.4

1.4 1.3 1.5 3.7 3.7 4.3 3.4 9.0 3.0 1.6 1.7 1.2 3.1 2.6

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ADVANTAGES OF THE INDIAN SOLAR PV INDUSTRY India has the following advantages for developing a successful solar PV industry: 1. Adequate illumination: India has the highest average sunshine amongst the world’s top 20 economies, particularly in Rajasthan which has a large area of desert; 2. Governmental policy support: India has developed an ambitious plan around solar energy and is implementing its policies through the INDC and its agencies, including � Funding: feed-in tariffs, solar bundling, adaptive compensation funds, classification incentives, tax free period, renewable energy procurement obligations, low-cost financing, etc.; � Production: an investment promotion plan, amendment of incentive plan, national manufacturing policy, etc.; � Indian states are both promoting and supporting development through solar parks, renewable energy infrastructure development funds, green energy tax funds and other incentives.

3. India’s domestic PV industry is decentralized and without monopoly power. This is a friendly environment for foreign investors.

THE BELT AND ROAD: NEW OPPORTUNITY

Lots of new energy enterprises, particularly those in the solar PV sector, were promoted during the “Belt and Road Forum for International Cooperation” in Beijing.

India, as a major market with great potential, has drawn a lot of attention from these enterprises. Investors such as Hareon Solar, Trina Solar and GCL-Poly, who already have a presence in India have shown interest in the sector.

The “Belt and Road National Strategy” supports relevant enterprises and overseas investment projects. They can enjoy the following unique preferential conditions when investing in India’s solar energy sector: � Regulatory approval: the Belt and Road investment policy enables relevant enterprises to obtain approvals from the Development and Reform Commission and the Commerce Commission, and complete cross-border fund transfers (despite tightened approval criteria for outbound investment since the end of 2016); � Infrastructure: The biggest challenge for renewable energy investment in India is their outdated public distribution system. This will be one of the major obstacles for India in achieving their capacity and climate goals. The Belt and Road projects promote the construction of oil and gas pipelines, crossborder electricity and power transmission channels in countries along the route; � Funding: The Belt and Road strategy provides financial support for relevant enterprises. China Development Bank and the Export-Import Bank will provide special loans equivalent to RMB 250 billion and 130 billion respectively. Other financial institutions have also promised to provide financing for supporting infrastructure construction and cooperation on capacity and finance in countries along the route; � Taxation: The State Administration of Taxation has established a bilateral tax cooperation mechanism with India. They have published an Indian Investment Tax Guide on their website; � Investment environment: Transaction costs have been reduced by various agreements, including visa facilitation agreements and other agreements between China and countries along the route. This creates a more favorable environment for capacity and investment cooperation.

CONCLUSION The Belt and Road Initiative and India’s clean energy plan create new opportunities for Chinese investors.

We believe that we will see rising Chinese investment in India, especially in the solar PV sector.

Solar Quarter • August 2017 56

In Conversation IN A SHORT SPAN OF ONE-YEAR COMPANY HAS BUILT PORTFOLIO OF 28MWP AND PIPELINE OF 100 MW THIS YEAR

MR. KAPIL MAHESHWARI CEO Hinduja Renewables Pvt Ltd

LET’S START WITH THE RECENT DEVELOPMENTS AT YOUR ORGANISATION IN LAST ONE YEAR Hinduja Renewables is a flagship company of Hinduja Group founded in 2016 with headquarters in Mumbai, India. In a short span of oneyear company has built portfolio of 28MWp and pipeline of 100 MW this year. We have completed one of India’s largest roof top solar plant of 5.7MWp capacity for one of the largest Automobile company. We have recently acquired two solar projects in Rajasthan accounting to 22MWp which are one of the best performing solar plants in India. With a aim to be a leading renewable IPP, we are pursuing opportunities in RESCO rooftop, Private PPA, Open Access projects and selective M&A.

business make these states an attractive investment destination for a large volume of upcoming solar projects.

on its own. Till Tariff as defined and agreed in PPA is honoured it is not a pain point for the industry.

However, Rajasthan, Gujarat, Madhya Pradesh, Andhra Pradesh, Telangana and Tamilnadu accounts for 80% of the capacity added, Maharashtra, Karnataka and Uttar Pradesh accounts for only 20% along with the remaining states.

WHAT ARE THE MILESTONES YOU WISH TO ACHIEVE BY THE END OF THIS FISCAL?

AS THE ASSETS BECOME OLDER, WILL AGGRESSIVE BIDDING TODAY BECOME A PAIN POINT FOR THE INDUSTRY A FEW YEARS DOWN THE LINE? Going forward portfolio management (O&M) will be very crucial for the developers and many companies have already started efforts in that direction. The Industry need policy support from government where States/Centre should not be allowed to change tariff

As a Group, we have just started Solar Business. We would be flexible to design our strategy for sustainable profitable growth in future.

ANYTHING ELSE YOU WOULD LIKE TO ADD FOR OUR READERS. We are looking at Renewable sector as an integrated approach and committed for providing innovative solutions in the area of Solar installations, Electrical Mobility and Energy Storage. Energy and Mobility will drive the future and we are committed for this.

AS A DEVELOPER, WHAT KEY CHALLENGES DO YOU FACE TODAY? The major challenge faced by Indian Developers is getting the financial closures in 3-6 months from signing PPA and getting secured land with time frame. Most Projects have 1218 months’ timeline to finish the project and start supplying power. The falling tariff has also made the process difficult as lenders are very cautious and secured returns is key to the business.

In last 2 months getting a binding quote from Module suppliers is also challenging. Prices for module are going north direction and this could impact IRR as modules are more than 50 percent of the total capital cost of the project. However, Industry has matured enough to take care of the challenges and obviously central government is also making policy changes to promote Solar Developments.

WHICH STATES DO YOU BELIEVE LEAD SEE MAXIMUM SOLAR ENERGY INVESTMENTS THIS YEAR? Mostly the southern states such as Telangana, Karnataka and Andhra Pradesh have taken a lead. The favourable regulatory environment and ease of doing

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Solar Quarter • August 2017 57

Industry Insights INDUSTRIAL IOT FOR UTILITY-SCALE SOLAR PLANT SCADA & GRID INTEGRATION SOLAR PLANT SCADA IN INDIA As India is making strong strides towards 2022 target of 100s+60w (100GW of Solar and 60GW of Wind), it is imperative to consider newer technologies that will help these plants achieve investor returns and grid stability over the next 25 years of operation.

India deployed 14GW of utility-scale solar projects

by June 2017, and the capacity addition increasing 50% annually so far. The ecosystem is evolving quickly to look at the operational phase of the plants, not just the build phase.

data-oriented operations of Industrial in 2012, India’s first Industrial IoT went live in a solar plant with hybrid cloudbased monitoring – deployed by an Indian OEM – NeoSilica.

NeoSilica went on to indigenously evolve their IIoT HW+Enterprise SW+Analytics based Plant SCADA & Central Monitoring Systems and deployed at over 1GW of solar plants across India. Few marquee projects are 10MW Canal Top plant in Vadodara (SSNNL) and 500MW plant in 1GW AP Solar Park in Kurnool.

FLEXIBLE AND EXPANDING FRAMEWORK WITH GRID INTEGRATION

Traditionally PLC based technology components are popular choice in Operational Technologies (OT).

This platform includes PLC hardware in the field sending data onto a field PC (and any controls), HMI package to view collected data (where the screens are designed for each installation) and an additional Historian package to store data for longer term with graphs to view historical data. Up to this point, the architecture is given and proven over 20-30 years.

And whenever the data is required to be shared with another system, use OPC DA package as a bridge.

This is the popular architecture used at many power plants.

REVOLUTION OF INDUSTRIAL IOT (2012) AND OT+IT INTEGRATION There is a massive shift in OT landscape across the world in 2012 with the advent of Industrial IoT – specialized systems for Industrial applications with a distributed architecture to bring focus on operational data, intelligence and insight, and strong integration of OT and IT. This new architecture bridged capabilities and strengths of two disparate groups – A) operators and managers with domain expertise in the Plant and the Control Center and B) IT people who are trained with sophisticated tools for data analytics and enterprise software to bring insight and transparency using the operational data up to the C-level. With IIoT deployed in the plants, even the CFO can monitor the daily performance of the plant and track asset performance and investment objectives.

Entire organization is in sync when they view the same operational data – presented in different views, reports, forecasting and analytics for different stakeholders.

While industry majors started investing several billions into IIoT and Analytics based technologies for

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Unlike point solutions designed by legacy technologies, Industrial IoT systems are designed as distributed and centralized framework with the ability to expand additional EMS functions to manage energy storage, grid integration, power plant control, and microgrid control seamlessly.

As Indian electric grid is adjusting to variable generation from solar and wind, plant system should have accurate forecasting and scheduling and also the ability to interlock with Load Dispatch Center (SLDC) with plant control to match grid requirements.

MULTI-SITE MANAGEMENT ACROSS THE PORTFOLIO As the plant sizes are increasing, solar plant ownership shifted from smaller individual groups (with a few plants of 5-10MW size) to large well-funded developers that are deploying large projects (100200-500MW) and also consolidating the markets by acquisition of other players. As a result, these large developers require a Central Management System (CMS) for MultSite Management for live monitoring, portfolio performance, asset management and operational insight.

The MultiSite System should be an automatic extension as and when the Plant Monitoring is deployed in with the plant, and not as an afterthought. In plants where they pursued PLC and HMI based systems, sending data to a CMS is a large and complex next phase, to be built using OPC bridges.

With deep integration of IT and OT, Industrial IoT systems have the potential to deploy Plant and Central systems in parallel – without needing additional resources or phases of development.

MANDATORY CYBERSECURITY With each plant spread across hundreds of acres of land, and data and systems that are designed for access to all stakeholders – plant operators, central O&M team, EPC, developer and investor –devices, data and applications are distributed across many networks. Considering the increasing threats of cybersecurity it is critical to consider layered and end-to-end security measures across the entire connected and distributed architecture.

NeoSilica uses best practices in distributed IT systems with secure and hardened OS for the server and IIoT gateways and encrypts data transfer and user access.

GOING FORWARD As solar plants and portfolios expand further, the developers need to partner with multidiscipline teams with both OT+IT experience and OEMs with proven track record with Industrial IoT and MultiSite system. As we all agree, we are still at the dawn of solar and renewables in India and the world!

MR. SATYAM BHEEMARASETTI CEO, NEOSILICA

Solar Quarter • August 2017 58

Industry Perspective FINANCING RENEWABLE ENERGY PROJECTS THROUGH BOND MARKETS IN INDIA Issuances of bonds, non-convertible debentures (NCDs) included have been witnessing record volumes for past 3 years. In FY 2017 total volume of new bond issues reached INR 6.9 lakh crore and in FY 2016 the volumes were approximately INR 4.5 lakh crore.

Long term project loans have been a traditional source of financing for infrastructure projects especially for renewable energy generating projects.

Though in recent few years several bond transactions have been structured for refinancing of project loans.

Bond markets are slowly emerging as a credible alternate source of financing. Enumerating some of the key advantages of bonds over term loans as-

to surplus cashflows not being repaid to bondfinancier for other uses. � Execution timelines for bond issues may be shorter � Diversification of investor base – mutual funds, insurance companies, pension and retiral funds, corporate treasuries, foreign portfolio investors (FPIs), dedicated climate / green funds, etc.;  Internationally,

dedicated green funds are growing at a stupendous rate; these are investing in ‘Green Bonds’ issued offshore, either as a USD-denominated or Rupee-denominated bonds (‘Masala’ bonds);

� Fixed rate term financing- mitigates floating rate nature of project loans for fixed priced PPA projects, often at lower than bank funding rates;

Several unique and first of its kind bond transactions have been executed in the renewable energy sector, including:

� Proceeds can be deployed to meet varied requirements - including refinancing of project loan, augmenting working capital, ongoing capex, share-acquisition, etc. implying ability to finance end-use over and above bank eligible end-uses;

LONG TERM PROJECT LOANS

� Coupon payment frequency can be structured – ranging from monthly-pay to annual-pay to coupon payment at maturity. Further, the coupon rate may be at lower-rate in the initial years which step-up during the later years. Bank loans need to pay interest on monthly basis; � Principal repayments can be structured differently than traditional project loan, e.g. principal servicing may be back-ended or bullet maturities. This provides project-sponsor flexibility

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a) IIFCL & ADB partial credit enhanced bond for an operating renewable power generating entity; b) Project bonds with typical cash-flow strapping; c) Corporate bond;

green

d) U S D - d e n o m i n a te d bonds by offshore holding entity to international investors and proceeds of these bonds refinancing domestic project finance;

Mr. Jayen Shah Head - Debt Capital Markets Commercial & Wholesale Bank

e) INR-denominated bonds to offshore investors, ‘Masala bond’;

HAVE BEEN A TRADITIONAL

f) Bonds being issued by holding-company for equity infusion in down-stream project SPVs.

SOURCE OF FINANCING FOR

SEBI has recently introduced guidelines for domestic ‘green bond’ issuances.

INFRASTRUCTURE PROJECTS

Given regulatory interventions for deepening of the corporate bond markets combined with multiple extraneous market factors, I can say that bond markets for RENEWABLE ENERGY SECTOR are making good progress, finally!

ESPECIALLY FOR RENEWABLE ENERGY GENERATING PROJECTS.

Solar Quarter • August 2017 59

Tech Insights SUNGROW’S SG125HV: THE WORLD’S MOST POWERFUL 1500VDC STRING INVERTER Fig-1: SG125HV Appearance (left) and the Virtual Central Solution

The SG125HV is the world’s highest power inverter in the string category. Weighing in at 72kg, so it stays in the two-man installation category. The key specifications for the SG125HV are listed below. The following paragraphs will describe the system design parameters that utilize these specs to connect them with utility scale system design and ultimately, the Virtual Central Solution.

running three cables (A, B and C phases) at 600V AC. In order to facilitate the recommended design scheme that uses external (i.e. mounted within or immediately peripheral to the PV array) combiner boxes with longer DC+/DC- ‘homeruns’ back to the inverter located near the POC, the Sungrow SG125HV inverter utilizes a single DC input architecture that allows larger homerun cables or even trunk bus

up some significant differences. Aside from the MV transformer, installing the string inverters and related BOS does not involve anything more than just manpower. There is no need for wide access paths or bringing heavy lifting equipment to the site.

For string inverters, especially the SG125HV at 72kg, there is no need for massive concrete structures or skid platforms. The inverters can be mounted to

Fig-2: DC input cable vs. AC output cable

HIGH EFFICIENCY Sungrow’s SG125HV was designed to have a power converter platform that was more efficient than previous generations of products. Utilizing 5-level converter bridge, the SG125HV provides extraordinary best-in-class efficiency, further increasing project ROI by maximizing input vs output power conversion efficiency and minimizing loss. The maximum efficiency of SG125HV can reach 98.9%, and the Euro. efficiency is 98.7%. Greater efficiency equals to greater AC power yield.

WIDE OPERATING TEMPERATURE RANGE Sungrow’s SG125HV has one of the widest operating temperature ranges available in the industry, with full power available from -25°C to 50°C and operation in power de-rate mode available up to 60°C. The SG125HV is rated for 125,000W at ambient temperatures up to 50°C. At temperatures above 50°C the inverter will ramp down power or ‘de-rate’ in order to maintain control of internal temperature and losses. The de-rated operation will continue until the ambient temperature exceeds 60°C.

LESS CABLE COST, SAVE CAPEX Sungrow’s in-depth project design analysis and Capex economics reviews have determined that in most cases it is overall more cost-effective to have the 1500V DC SG125HV inverter located nearer the AC POC than the PV array field. As previously explained, utility-scale project cabling costs are dominated by voltage drop concerns and longer runs of two cables (DC+/DC-) at 1500V are simply less expensive than

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cables to be connected directly to the inverter without the need for fusing or other maintenanceintensive components within the inverter.

AC OUTPUT CONFIGURATION In an effort to further reduce project Capex and push the inverter’s efficiency to the highest levels, a voltage level higher than 480V AC was required.

The SG125HV outputs a nominal 600V AC output voltage which reduces AC output current by 25% when compared to the same amount of power at standard 480V AC. Lower current yields smaller cable costs by the same percentage and greatly benefits project Capex.

In addition, the inverter does not require a neutral connection from the primary transformer, so only 3 phases plus a PE ground are connected to each inverter, further reducing cabling costs vs competitors which require a neutral conductor in addition to the three phases cables and PE ground.

SMALL AND LIGHT TO BRING THE SIMPLE INSTALLATION The SG125HV is comparably sized to inverters with half the power rating and was designed to be simple to install. A metal backplate is provided, along with fastening hardware, which gives installers flexibility with mounting options. The inverter can be hung on appropriately-rated strut supports, on concrete walls, or virtually anywhere the mounting bracket can be installed.

A comparison of the cost to install central inverters with the costs of installing string inverters brings

existing solar array structures or a relatively simple rack made of Uni-strut. Some shading should be considered as good engineering practice to reduce the thermal load and to reduce the overall weather impact on the units.

To create the Virtual Central Solution, it is not absolutely necessary for all the SG125HV inverters to be mounted right next to each other although it can save in integration costs in the long run. The inverters can be spread out individually or located in groups. This approach can reduce the DC wiring lengths without creating unreasonably long AC wire runs. However, the closer the groups are to each other, the easier it will be to integrate the communication and control system.

It is best to parallel the several SG125HV inverters via one or more AC breaker panels. Fused disconnect switches can be used as well. This helps in both circuit protection as well as in providing electrical isolation on the AC side which will facilitate the removal and replacement of individual inverters.

STABLE DISPLAY AND COMMUNICATIONS For user convenience, the SG125HV includes an LED HMI display panel to indicate inverter operating status and other system parameters such as Bluetooth connectivity, serial communications status, and fault and ground impedance status.

Customer communications to the SG125HV inverter are done through the serial RS485. Additionally, the inverter allows Bluetooth connection to smart devices enabling the Sun Access App to communicate with the inverter wirelessly to set parameters, check fault codes, etc.

Solar Quarter • August 2017 60

Infographics

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Solar Quarter • August 2017 61

Global Insights SOLAR ENERGY PROJECTIONS RISE FOR 2017 and 13 (climate action).

A study by Greentech Media indicates that China’s record solar demand has shifted global solar photovoltaic (PV) projections for 2017, raising global demand estimations from 7% global PV market contraction in 2017 to 9.4% growth. According to the report, up to 85 gigawatts (GW) of solar capacity could be installed in 2017, which is more than double the installed capacity in 2014.[Climate Action Press Release] [Green Tech Report]

STORY HIGHLIGHTS � A study by Greentech Media indicates that up to 85 gigawatts of solar capacity could be installed in 2017, which is more than double the installed capacity in 2014. � The Government of Saudi Arabia is appealing to renewable energy firms to bid for a combined total of 700 megawatts (MW) of wind and solar projects. � The annual workshop of the IEA’s Renewable Energy Working Group focused on the scalingup of renewables through decentralized energy solutions Demand from China is set to boost solar capacity in 2017, and Saudi Arabia is taking steps to implement its clean energy plan. The deployment of renewables was also the focus of a workshop of the International Energy Agency (IEA). This update brings you news on these developments, which contribute to Sustainable Development Goals 7 (affordable and clean energy)

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Solar energy was also in the spotlight in the Middle East in recent weeks. The Government of Saudi Arabia is appealing to renewable energy firms to bid for a combined total of 700 megawatts (MW) of wind and solar projects, as part of a programme that aims to invest US$50 billion in renewable energy by 2023 to reduce its dependence on oil and encourage renewable energy generation. This development will contribute to achieving to SDG target 7.2 (By 2030, increase substantially the share of renewable energy in the global energy mix).

DEMAND FROM CHINA IS SET TO BOOST SOLAR CAPACITY IN 2017, AND SAUDI ARABIA IS TAKING STEPS TO IMPLEMENT ITS CLEAN ENERGY PLAN.

The IEA workshop addressed the contribution that decentralized, local energy solutions can make to drive renewables deployment and decarbonize energy systems.

that decentralized, local energy solutions can make to drive renewables deployment and decarbonize energy systems. Such a transition will contribute to SDG 11 (sustainable cities and communities), target 11.6 (By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management).

As underlined by IEA, with urban energy use growing rapidly, cities will be key to a sustainable energy transition. The scaling-up of renewables through decentralized energy solutions was the focus of the annual workshop of the IEA’s Renewable Energy Working Group, which took place in Paris, France, on 28 March 2017. The event brought together over 180 government officials, industry representatives and energy experts, who discussed the contribution

According to IEA, current market designs and existing regulations hinder the development of a more decentralized energy model. Other obstacles identified during the workshop included: fossil fuel subsidies; the lack of a carbon price; diverse fiscal regimes; and uneven cost sharing for electricity grid costs. Participants also called for a more integrated approach to policy making, linking the power, heat and transport sectors.

Solar Quarter • August 2017 62

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Solar Quarter • August 2017 63

Industry Insights SOLAR PV PROJECTS – THE CASE FOR INDEPENDENT CONSTRUCTION MONITORING procurement, and construction (EPC) companies achieve acceptable solar power plant quality standards.

Solar PV power plants are often considered to be simple construction projects, but the reality is that essential methodology and implementation techniques are often ignored because of delays starting the project or the need to meet the commercial operational date (COD) deadline in the power purchase agreement (PPA).

A solar PV project is divided into various essential aspects of infrastructure such as: electrical engineering, civil engineering, module mounting structures, weather monitoring stations, and supervisory controls. In order for a solar power plant to achieve the desired generation values, it is vital that the design conceptualization translates into implementation on the ground. This means that every aspect of engineering and construction needs to be properly validated, documented, and easily accessible during the project cycle.

This article provides a high-level overview on the importance of independent monitoring during the construction phases and its implementation techniques with the help of site quality assurance documentation. The presence of independent engineers during various project phases such as initiation, planning, and execution will help solar power plant developers and engineering,

Basic health, safety and environment (HSE) site quality documentation such as the field quality plan (FQP), installation checklist, pre-commissioning checklist, and testing checklist are frequently treated as being unimportant. Even imperative guidelines that detail project construction activities such as the method of statements (MOS) or technical work procedures (TWP) are regularly ignored or neglected by the EPC. These plans and procedures can be implemented and adhered to as a project progresses with the help of independent engineers.

These actual images from project sites illustrate low quality civil engineering work that was executed in the absence of supervision or construction monitors.

Lack of supervision and underutilization of implementation quality checklists has resulted in structural post pile cap erosion after heavy rains in Figure (A). Improper grouting and insufficient finish to the foundation bolts of the structural pole can be observed in Figure (B).

Figure (C) shows deformed structural bracing members for the installation of module mounting structures that is the result of implementation quality checklists not being used along with independent oversight. Deformed bracing can be replaced, but in Figure (D) the support post has been installed at an incline, which will result in instability to modules.

These low quality mistakes are repairable, but at a high cost and the rework will consume precious time towards meeting project completion deadlines.

Such issues have been observed to be accepted by developers as defects. Quality lapses are commonly observed and noted in the electrical infrastructure as well. Modules can be damaged or even broken beyond acceptable limits, leading to higher costs for project installations. Compromised quality can lower

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Signifcance

Acceptance

Intiation Planning

Comissioning

Defining the problems or quality issues with potential hazards.

Assessment Weighing the options for resolving the issues.

Mitigation Choosing potential solutions to mitigate the problems.

Implementation Implementation of solutions to mitigate the problems.

Evaluation Evaluating the quality of the implementation

Execution / Construction

Conceptualization

energy generation, causing a project to fall short of the target output for which it was selected.

To mitigate the above concerns, solar PV project construction should typically progress through the following stages: planning, conceptualization, schematic design, construction design and drawings, and most importantly construction administration to ensure that quality control and assurance is implemented throughout the project lifecycle illustrated in Figure (E).

apply their knowledge, skills, tools, and techniques to project activities to assure they meet established project safety and quality requirements. They would also be proficient at helping EPCs in implementation aspects such as following quality plans; utilizing

check lists, completing compliance reports, resource management, etc. It is essential for the solar industry in India to appoint construction monitoring teams so that a standard level of project construction can be achieved and maintained.

Appointing a designated team of engineers for construction monitoring during the project phases to confirm the implementation of quality control and assurance systems would achieve acceptable quality plant standards at delivery.

These engineers would principally help contractors follow consultant, developer, and manufacturer recommendations during installation, testing, and commissioning for all the project components.

They would compile records of all the installation and testing results in the form of checklists, which will in turn make the project documentation stronger and more useful for future O&M. Construction monitoring of solar PV plants needs to be performed in the interest of quality control and to resolve issues that arise due to non-conformance to standard industry practices. In this model, every task is completed in a sequential manner and the steps include resolving common problem or lapses as shown in Figure (F).

Project construction monitoring teams would

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Solar Quarter • August 2017 65

Industry Insights SOLAR CAPACITY HAS BEEN GROWING AT A JAW DROPPING PACE IN INDIA

What is especially remarkable is the range of stakeholders that play a part in this story. The central government, national level policymakers, national & multilateral agencies, state level governments, central off-takers, state level Discoms, private developers taking equity risk, EPC folks, hardware suppliers, sources of debt finance, corporate customers, individual customers - the list is literally endless. I am a big believer in solar, and sure we will have some bumps along the road, but I am also certain that fairly soon we will all look back to the current times and say “that’s when everything began to change”.

Under the circumstances it is natural that a business with such a demonstrated potential to radically alter our way of life will attract strong opinions and views from its diverse range of stakeholders. As a result it can also be expected for certain misconceptions, or “myths” to creep in and firmly establish themselves in the discourse. In this piece I highlight the top 5 myths as I see them and provide my contrarian views on each.

MYTH #1: “PAYMENTS ARE SECURE AS THE OFF-TAKER IS AN A+ RATED STATE DISCOM” This kind of statement is often erroneously made in support of the credit worthiness of various state Discoms. For the past five years the Ministry of Power has been releasing its “State Distribution Utilities Integrated Rating”, an annual review conducted jointly by ICRA and CARE. This is clearly a big step towards filling a significant gap in our understanding of state level Discoms, but despite its title (which includes the word “Rating”), the 41 Discoms have not been assigned credit ratings but in fact rankings on a “grading” scale of A+, A, B+, B, C+, & C. It may seem like a fine distinction but it’s actually an important one. The principal objective of any credit rating exercise is to assess the ability of an entity to meet its financial obligations via an assessment of probability of default. On the other hand the purpose of the abovementioned annual grading exercise is to measure the operational & financial health of the individual Discoms, and that too only relative to the narrow 41 member peer group. No doubt an A+ graded Discom will be in relatively far better shape than one graded C, but such a grading does not

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throw adequate light on its credit worthiness per se.

Evaluating the ability to meet financial obligations is a far more onerous test than the measurement of operational & financial health.

MYTH #2: “SOLAR’S MUST RUN STATUS OFFERS PROTECTION FROM CURTAILMENT” Solar PPA’s in India are not “Take or Pay” but more in the nature of “Pay for what you Take”. So how come thousands of MW of solar capacity has been put on the ground without a watertight obligation on the state Discoms part to pay for deemed generation?

The answer lies in solar’s (and wind’s) “must run” status which is part of India’s Electricity Grid Code notified by the Central Electricity Regulatory Commission and which has further been adopted by various State Electricity Regulatory Commissions.

This means that in theory, renewable energy should not be made subject to merit order dispatch for commercial (read high tariff) reasons and therefore Discoms & SLDC’s are obliged to let these plants run without interruption. The reality is quite different and certain Discoms are in fact repeat offenders when it comes to forcing solar power generators to back down in the name of “grid security” – a loophole in the grid code which allows them to issue such instructions.

Whether the back down or curtailment results from genuine reasons arising due to infrastructure incapable of handling solar’s intermittent nature, or due to commercial considerations in the garb of grid security, the result to the generator is the same – a permanent loss of revenue which by the way is far more value destructive then any delay in payments.

The fact remains that some Discoms will always be riskier contractual counterparties than others so taking shelter under must run status cannot replace a 360 degree assessment of the Discom at the time of tariff bidding- which assessment in my opinion will continue to be crucial even when (if?) compensation for deemed generation becomes a reality.

It is for the above reason that I don’t treat Madhya Pradesh’s recent move to withdraw solar’s must run status with great alarm. It is for a similar reason that I also don’t think developers are necessarily immune from state specific risks even with a NVVN (NTPC’s

trading sub which executes solar PPA’s) off-take as we have seen in the case with Andhra Pradesh reportedly demurring from its share of purchase obligation from power generated in Kadapah solar park located within the state (as an aside it will be really interesting to track how this particular situation pans out!).

MYTH #3: “UTILITY SCALE SOLAR IS RIPE FOR CONSOLIDATION” M&A transactions in the utility scale solar space have already commenced and will undoubtedly pick up pace going forward. However, these transactions have nothing to do with consolidation. Consolidation takes place for reasons such as top line protection, cost savings, other scale benefits or to simply thwart a looming existential crisis. The reasons driving solar transactions are very different.

Let’s take the case of project SPV’s first. Whether you are a 5MW or 500MW solar project SPV with the same off-taker and tariff, there is no meaningful difference in survivability or other operational and financial metrics. Each of these projects will fare similarly and combining the two does not change the situation for either of them. Sure, there is an O&M cost saving that comes with scale, but it’s not a make or break type of figure. In reality project SPV level transactions take place because of “Push” & “Pull” factors. Developers seek to divest portfolio’s because they need to recycle capital and put it to play in a market where a massive amount of capacity is yet to be developed (the “Push”). On the other hand financial institutions (and not developers) with financial engineering and distribution capability seek out execution risk mitigated project SPV’s (the “Pull”) because they have access to an investor base who likes the underlying cash flow. This change of hands in ownership is a natural step in the life cycle of the solar project SPV and should not be confused with consolidation.

This brings us to the question of solar project developers. Development is the art of cobbling together the various pieces (bidding, EPC, financing etc) that make a project and in that sense it’s a very people centric business. However, this also means there is very little proprietary and of value at a developer apart from its people. Accordingly,

Solar Quarter • August 2017 66

with large solar developers pulling ahead of the pack there’s not much benefit for them to bring smaller development platforms under their wing on the one hand, and a questionable case for smaller development platforms to combine to fight the big boys on the other. So in the case of solar project developers, rather than M&A transactions at a corporate level, talent will simply move across platforms in a personal capacity and marginal development platforms will just vanish from the scene.

the Average Power Purchase Cost (APPC) of the Discom they sell to will increasingly be susceptible to curtailment particularly in the case of the less disciplined Dicoms. We are already seeing some of the creative ways in which Discoms are sidestepping off-take and this risk is only likely to increase.

MYTH #4: “FALLING TARIFFS MAKE PROJECTS WITH HIGH TARIFFS MORE ATTRACTIVE TO BUYERS”

In a nutshell, if secondary marketplace valuation expectations behave in a way that results in levelized acquirer returns irrespective of the underlying tariff, it is preferable to acquire a lower tariff project thereby securing peace of mind on the curtailment front – which is the biggest risk for any solar project. Or alternatively high tariff project valuation expectations need to moderate to allow for an implied return commensurate with higher risk of curtailment.

The complete opposite is more likely to be true, ie, falling tariffs make high tariff projects actually look less attractive and not particularly more valuable to a buyer.

MYTH #5: “FOREIGN BIDDERS WITH LOW COST OF CAPITAL ARE DRIVING DOWN TARIFFS”

Let’s address the value bit first. All other things being broadly the same (off-taker, technology, irradiance, cost of debt etc), the return for an owner of a solar plant is a broadly a function of the tariff at which he sells the electricity vs capital cost. Falling tariffs would result in reduced IRR’s for new developers if the fall in tariffs outpaced the fall in capital cost - which is indeed what has happened in India. Furthermore, from a buyers perspective projects with different tariffs (all other things remaining the same) should be priced at an IRR bench marked against returns from the latest discovered tariff just like you would for a bond. What this means is that a buyer going out into the solar market place should logically find that whatever project he looks at, and whatever the underlying tariff may be, the various asking prices should result in IRR’s to him in a very narrow range.

So no significant difference in “value” to the buyer.

However all other things are not really the same and the most important distinction is the tariff level itself. Projects with a tariff significantly higher than

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As I’ve argued in many instances, if a foreign company’s lower cost of capital was a sound enough reason to undercut its return expectations for third party assets and currencies irrespective of the target asset’s business and underlying inflationary risk, Japan would have acquired the whole world by now.

Looking at it from the opposite direction, it’s a bit like saying that a company with say an estimated 20% cost of capital should decline an opportunity to invest in NTPC bonds priced at a 15% yield just because 15% is way less than 20%. In reality NTPC bonds trade at a yield of about half of 15% so the investment actually represents a riskless 100% profit.

Discounting cash flows for a target asset based on acquirer cost of capital rather than the target assets independently calculated cost of capital (based on its own risk profile) will inevitably result in a portfolio of value destroying assets, missed investment opportunities or both. To the extent bidders (both local & foreign) have dramatically driven down tariffs it is not because cost of capital

or return expectations have suddenly come down, it is mainly because these developers are able to accurately evaluate and appreciate the underlying cash flow streams. These bidders were more than happy to enjoy the outsized returns in a high tariff regime, but also understand that lower tariffs may mean lower returns but that is not the same thing as negative or irrational returns. In fact NTPC’s chairman has just gone on record stating that a per unit solar tariff of Rs. 3.0 - Rs. 3.2 may be the new normal, and significantly, it can be achieved “without relying on cheap funds or compromising on quality”.

Those who erroneously claim that low cost of foreign capital is driving down tariffs to irrational levels very often appear to be ones who have been caught sitting on the sidelines while developers who understand the risk & return trade off for solar continue to grow, develop, attract capital and generate value for shareholders.

MR. GAGAN SIDHU RENEWABLE ENERGY FINANCE/ INVESTMENT BANKING PROFESSIONAL GMR

Solar Quarter • August 2017 67

TION I N

Analysis 1 . VALU E C RE ATI O N I N THE P HOTOVO LTAI C S ECTO R VALUE CREATION IN THE PHOTOVOLTAIC SECTOR

In designing policies to support value creation from the development of a domestic solar PV industry, a deeper understanding of the requirements in terms of labour, skills, materials and equipment is needed.

Solar PV value chain

Figure 2

COST BREAKDOWN OF A PV PROJECT

Project Planning

The total cost of a utility-scale ground-mounted solar system can be divided into three categories: the cost of modules, the cost of inverters, and balance of system costs (other hardware, installation and soft costs). In 2015, balance of system costs were the major cost component of solar projects, accounting for about 60 percent of total cost; modules accounted for 30 percent and inverters 10 percent (IRENA, 2016b).

Procurement

Transport

Installation

Grid Connection

Operation and Maintenance

Decommissioning

REQUIREMENTS FOR SOLAR PV DEVELOPMENT

2.

Consulting Administrative Activities

Hardware costs other than modules and inverters include cabling, Sracking THE P HOTOVOLTAIC ECTOR and mounting, safety and security, grid connection and monitoring and control.

Installation costs involve construction and electrical installation and health and safety inspection. Soft costs include those related to financing, permitting, system and engineering design (IRENA, 2016b).

Education

Support Services

Policy Making

2. REQUIREMENTS FOR SOLAR PV DEVELOPMENT R ENEWABLE ENER GY BENEFITS Financing Research and Development

Balance of system costs of solar systems in selected countries, 2015

Figure 3

In designing policies to support value creation from the development of a domestic solar PV industry, a % Balance of System deeper understanding of the requirements in (BoS) terms of labour, skills, materials and equipment is needed.

60

Balance of system costs vary significantly across countries. Figure 3 shows the average costs for utility-scale projects in 12 markets.

REQUIREMENTS FOR SOLAR PV DEVELOPMENT With a total at 229,055 person-days needed to develop a solar PV plant of 50 megawatt (MW), labour requirements vary across the value chain.

People working on O&M are needed throughout the project lifetime, and therefore represent the bulk of the labour requirements (56 percent of the total)4 (see Figure 4). Equipment manufacturing (22 percent) and installation and grid connection (17 percent) also require significant labour inputs.

Manufacturing

$

30 %

USD/kW

Modules

1,500

Cabling / wiring Grid connection Monitoring and control Racking and mounting Safety and security Electrical installation Inspection Mechanical installation Costumer acquisition Financing costs Incentive application Margin Permitting System design

1.2 Cost breakdown of a PV project 1,000

The total cost of a utility-scale ground-mounted solar system can be divided into three categories: the cost of modules, the cost of inverters, and balance of system costs (other hardware, installation 500 and soft costs). In 2015, balance of system costs With a total at 229,055 person-days needed were the major%cost component of solar projects, to develop a solar PV plant of 50 megawatt accountingInverters for about 60 percent of total cost; (MW), labour requirements vary across the modules accounted for 30 percent and inverters 10 0 value chain. People working on O&M are needed China Germany India UK percent (IRENA, 2016b). throughout the project lifetime, andLowtherefore cost

10

The composition of solar panels depends on the type of panel used. Silicon-based (c-Si) PV technology (including monocrystalline, poly and multicrystalline, ribbon and amorphous silicon) currently dominates the market, with a market share of about 92% (IRENA and IEA-PVPS, 2016). However, the materials used for the inverters, mounting structures and cables are often common regardless of the selected panel technology. Figure 5 illustrates the quantities of materials needed to manufacture and install 1 PM E NT megawatt (MW) of silicon-based solar PV plant.

Almost 70 tonnes of glass are needed for the PV panels, almost 56 tonnes of steel and 19 tonnes of aluminium go into the mounting structures 10 and panels, and around 47 tonnes of concrete are required for foundations. Other key materials, such as silicon, copper and plastic make up smaller share of total weight of material for a solar PV plant.

Source: IRENA, 2016b

Figure 4

Hardware costs other than modules and inverters include cabling, racking and mounting, safety and security, grid connection and monitoring and control. Installation costs involve construction and electrical installation and health and safety represent the bulk of the labour requirements inspection. Soft costs include those related to (56 percent of the total)4 (see Figure 4). Equipment financing, permitting, system and engineering manufacturing (22 percent) and installation and design (IRENA, 2016b). grid connection (17 percent) also require significant Italy Jordan France Chile Spain USA Australia Japan Balance of system costs vary significantly across labour inputs.

Mid cost High cost countries. Figure 3 shows the average costs for utility-scale projects in 12 markets.

Distribution of human resources required along the value chain for the development

of a 50 MW solar PV plant, by activity Soft costs and installations costs constitute a large percentage of total costs in many countries, suggesting opportunities for value creation beyond % the manufacturing of the main components. This Decommissioning study analyses the requirements for undertaking various activities, focusing on the seven core segments: project planning, procurement, manufacturing, transport, installation, grid connection, operation and maintenance and TOTAL decommissioning. 3

1%

2

Project planning

R E N E WA B L E E N E R GY B E N E F I TS

22

229,055

%

The composition of solar panels depends to manufacture and install 1 megawatt (MW) of Manufacturing and person-days procurement on the type of panel used. Silicon-based silicon-based solar PV plant. Almost 70 tonnes (c-Si) PV technology (including monocrystalline, of glass are needed for the PV panels, almost % % and amorphous poly and multicrystalline, ribbon 56 tonnes of steel and 19 tonnes of aluminium Transport Operation and maintenance silicon) currently dominates the market, with a go into the mounting structures and panels, and market share of about 92% (IRENA and IEA-PVPS, around 47 tonnes of concrete% are required for 2016). However, the materials used for the inverters, foundations. Other keyInstallation materials, and such as silicon, grid connection mounting structures and cables are often copper and plastic make up smaller share of total Analysis of support services is beyond the scopecommon of this study. regardless of the selected panel technology. weight of material for a solar PV plant.

The person-days required for the first year of O&M is estimated to be 13,560. The total is a cumulative person-days over a 25 years of project Figure 5lifetime, illustrates the quantities of materials needed assuming labour productivity improvement of 3.8% per year.

2

56

A more detailed breakdown of labour, materials, equipment and information required to undertake the various activities can be analysed at each segment of the value chain.

17

3

4

IN 2015, BALANCE OF SYSTEM

11

12

COSTS WERE THE MAJOR

Figure 5

COST COMPONENT OF SOLAR Glass

PROJECTS, ACCOUNTING FOR ABOUT 60 PERCENT OF TOTAL

Materials needed to develop a 1 MW Silicon-based solar PV plant (tonnes)

70 tonnes

56

Steel tonnes

47

Concrete tonnes

COST; MODULES ACCOUNTED

19 tonnes

7 tonnes

7 tonnes

6 tonnes

Aluminium

Silicon

Copper

Plastic

FOR 30 PERCENT AND INVERTERS 10 PERCENT (IRENA, 2016B).

Source: Results of surveys and questionnaires conducted for this study.

Credits:

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IRENA (2017), Renewable energy benefits: Leveraging local capacity for solar P, International Renewable Energy Agency, Abu Dhabi.

Solar Quarter • August 2017 68

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Industry Insights BALANCE OF SYSTEM TO BE THE KEY TO FURTHER REDUCTION IN SOLAR DEVELOPMENT COST IN USA, DURING 2010-11, 65% OF AN AVERAGE PROJECT’S TOTAL COST WAS IN THE PV MODULE, BUT TODAY (H1 2017) IT IS SEEN THAT MORE THAN 65% OF THE PROJECT COST RESIDES IN BOS, WHICH INCLUDES A VARIETY OF STRUCTURAL AND Year 2016 had a been a record breaking year for Solar PV industry globally. More than 70GW of new solar PV installations have been added during the year at CAGR of 48% Y-o-Y. The main reason behind such rapid development was due

to reduction in PV module prices, going down to

ELECTRICAL COMPONENTS,

0.30 to 0.35USD/Wp. It is further expected that

LABOR AND SOFT COSTS.

with increase in further installations, PV cost may reduce to 0.20USD/Wp by 2020.

In 2017, about 80 GW is expected to be added globally which will be higher than the previous year. India, planning to manage around 9GW of new solar installation.

Rapid fall in module prices is helping solar to be the new source of power in most the developing countries.

However, in the coming years it will not be only modules (which will be stagnant of prices) but also other components under Balance of System (BOS) such as inverters, cables, design work, installation etc will be looked upon for being competitive.

The ratio of BOS depends on the size of the project, but usually is around 40% for medium size ground mount installations at most of the places.

In USA, during 2010-11, 65% of an average project’s total cost was in the PV module, but today (H1 2017) it is seen that more than 65% of the project cost resides in BOS, which includes a variety of structural and electrical components, labor and soft costs.

According to reports. PV module costs between 2010 - 2016 decreased much faster than balance of system costs. While declining module costs remain important for the solar projects, however any major innovations in BOS as a whole was not seen to keep the prices controller and therefore

COSTS HAVE DECLINED BY 75% WHILE COMPARING THE COSTS DURING 2010.

THIS HAD RESULTED DUE TO AGGRESSIVE BIDDING PROCESS IN THE UTILITY SECTOR IN THE LAST 2 YEARS FOLLOWED BY GIGANTIC SOLAR TARGETS TO ACHIEVE 100GW BY 2020.

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TABLE 2: INDIA UTILITY SCALE SOLAR PRICING TREND (%)

reducing the system cost by keeping cost of BOS cheaper will now be the primary push toward more economically competitive solar in several countries.

It is expected that, BOS manufacturers especially electrical and structural components around the globe are being squeezed as the market landscape becomes more crowded with increasing demand of solar installations in all the sectors be it commercial, utility or residential. With continued focus, only 40% decline in costs will be expected by 2021 in USA.

FY

Module % of total

Inverter & Skid % of total

EBOS % of total

SBOS % of total

Labor % of total

Non-Labor Soft costs % of total

Total Cost (USD/W)

2010-11

60%

12%

6%

5%

6%

11%

1.81

2011-12

58%

11%

6%

7%

7%

10%

1.70

2012-13

51%

10%

10%

10%

9%

8%

1.15

2013-14

44%

8%

13%

13%

12%

10%

0.94

2014-15

56%

8%

10%

7%

8%

10%

0.71

2015-16

57%

8%

9%

9%

9%

8%

0.69

2016-17

66%

7%

1%

11%

12%

3%

0.46

While comparing the scenario of solar sector with India, PV module do remains the major contributor of the average utility scale project cost, but a steep decline in the project cost can been seen in the last 3 years due to reduction in prices of BOS. Costs have declined by 75% while comparing the costs during 2010.

This had resulted due to aggressive bidding process in the utility sector in the last 2 years followed by gigantic solar targets to achieve 100GW by 2020.

Table 2 shows reducing cost of projects especially due to BOS (apart from PV module cost) for a utility scale project installed at several locations in India.

It is now important to understand that the future cost reductions are expected to be highly dependent on BOS (e.g. inverters, racking and mounting systems, civil works, etc.) rather than PV modules, despite continued cost reductions expected from modules through 2022.

Although there is focus on innovations and development for different products based on the market requirements while keeping the cost of BOS competitive in India with cheap labor availability.

Even though with the inflow of large solar projects is also keeping the market crunched for further developments in new products to reduce the costs.

Credits: By Ganges Internationale

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Solar Quarter • August 2017 71

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Solar Quarter • August 2017 72

Industry Insights INNOVATIO NS IN TECHNO LO GY

ADVANCES IN PV TECHNOLOGY Figure 4.3 Solar PV global installed capacity 2010-2015 and projections

Figure 4.3 Solar PV global installed capacity 2010-2015 and projections to 2020 and 2030 to 2020 and 2030 GW 2,000

1,760 0 1,500

1,000

591 500

Several generations of solar PV technologies have seen significant progress on many fronts in recent years (see Table 4.4). The most established solar PV technology is wafer-based crystalline silicon (c-Si).

C-Si technology entered the market more than 50 years ago and continues to account for the largest market share by far. Since then, manufacturers have reduced costs and increased efficiency significantly. The efficiency of commercially available c-Si cells is now at 21%-23% (the theoretical limit is 29%) (IRENA, 2016i).

While silicon solar PV technology has achieved maturity, several non-silicon technologies are under development and remain a long way from their technical limits. These include more advanced thin films, such as CIGS (copper indium gallium (di)selenide) and CdTe (cadmium telluride), which together represent 6.5% of the market share. In addition, several emerging and novel technologies over the potential for even higher efficiency and lower cost (see Table 4.4).

Many technologies are experiencing major progress, passing new efficiency and other milestones on a regular basis. Cells are getting thinner, more flexible and easier to transport, with less resource-intensive and cheaper production techniques. Of the several emerging PV technologies nearing commercialisation (see Table 4.4), the most promising are perovskites and multi-junction cells (see Box 4.2).

39

69

99

135

172

219

2010

2011

2012

2013

2014

2015

0

2020

2030

Source: IRENA, 2016d; IRENA, 2016i

tonnes in 2030 and more than 60 million tonnes of waste is anticipated by 2050 under a regular loss scenario21 (IRENA and IEA-PVPS, 2016).

In addition to the environmental benefits of recycling, the recovery of raw materials and emergence of new solar PV related industries required to manage waste also raises new opportunities for creating economic value. It yields materials that can be sold into global commodity markets or employed to produce new solar panels. For these reasons, innovations in collection, recovery and recycling have the potential to play an important part in building up the cradle-to-grave supply chain for solar PV. Today, most end-of-life solar panels are treated in existing general recycling plants, which enable recovery of glass, aluminium and copper at cumulative yields exceeding 85% of panel mass.

However, solar PV-specific recycling processes will allow an even greater portion of embodied materials to be recovered, some of them hazardous (e.g., silver, cadmium and lead). For example, PV CYCLE (a non-profit PV waste management organisation in Europe) has achieved average recycling rates of 90% for silicon-based panels and 21

up to 97% for thin-film panels. In early 2016, PV CYCLE announced a new record recycling rate of 96% for c-Si panels (PV CYCLE, 2016), reducing the residual by half.

Improving the resource and environmental sustainability of PV production and use can be achieved through enabling regulatory frameworks. Examples include end-of-life management policies that establish treatment standards and recycling requirements. However, only the EU has adopted PV-specific waste regulations thus far (IRENA and IEA PVPS, 2016).

Other countries (e.g., China, Japan and the US) are investigating the institutional capacity to implement end-of-life policies. In addition, industry groups and solar companies in some countries have begun voluntary development of collection and recycling processes (US SEIA, 2016).

Rising shares of solar PV generation, as well as other variable generation such as wind power, will require significantly greater flexibility in power system infrastructure, operation and market design (see Chapter 2). Distributed and variable generation, such as solar PV, is catalysing

Assumes 30-year average panel lifespan.

74

Innovations continue in lightweight, adaptable and low-cost technologies, such as solar windows, solar roofs, spray-on solar and printed solar cells. Such developments will enable the use of PV not only on rooftops but also on building facades and windows, which will allow for large scale integration of solar into the world’s cities (IRENA, 2016i; Merck KGaA, 2016; REN21, 2016).

Credits: IRENA (2017), REthinking Energy 2017: Accelerating the global energy transformation. International Renewable Energy Agency, Abu Dhabi

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Solar Quarter • August 2017 73

MINISTRY OF EW AND RENEWABLE ENERGY

Conference Sessions

CONTACT MUMBAI Iyer Narayanan M: +9199673 53437 E: iyer.narayanan@ubm.com CHENNAI Julian Thomas M: +9199404 59444 E: julian.thomas@ubm.com

Media Partner

BENGALURU Amitava Sarkar M: +9193792 29397 E: amitava.sarkar@ubm.com

DATA Analysis and statistics Solar REC Price - Volume 3500

12500000

3500

3222.297352 2891.542624 2740.231302 2704.029795

10000000 2206.936508 2092.101174 7500000 1668.799647 5000000 2500000

424.8183799

0

July

Aug

Oct

Nov Dec

Jan

Feb

Market Clearing Price Total Demand

Total Supply

Cleared Volume

Weighted MCP

Registry Status of Issued RECs 20000000 15000000 10000000 5000000

Jul 2016

Sep 2016

Opening Balance

REC Issued

Nov 2016 REC Redeemed

Jan 2017 Closing Balance

Market Clearing Price

RECs (MWh)

Non-Solar REC Price - Volume 15000000

10000000

5000000

0 July Aug 2016 2016

Total Demand

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Oct Nov Dec Jan Feb 2016 2016 2016 2017 2017

Total Supply

Cleared Volume

Weighted MCP

Solar Quarter • August 2017 74

WAAREE 2

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Solar Quarter • August 2017 75

29-Y ear M mbe anuf rg Ti actur er 1 ing H PV C TUV istory omp Top any W Mod ule P orldw ower ide Outp ut Aw ard

Bloo

ZNSHINE PV-tech Co., LTD., ďźˆNEEQ Code: 838463), founded in 1988, is one of the experts in PV industry. In addition to manufacturing high-performance PV modules, ZNSHINE SOLAR dedicates to provide leading EPC services and works on projects development and operation. ZNSHINE SOLAR is listed in BNEF Global Tier 1 PV Companies and to date, has become one of the world-renowned largest project developers and PV manufacturers with 5MW per capita output. Its excellent products and services with cost advantage bring the best value to all customers and company itself.

Double-Glass Poly PV Module 30-year Life Span in Average Ultra Strong PID Performance in Humidity 1500V System Design for Lower LCOE 21% Higher Power Output Power Attenuation Rate at Only 0.5% Better Safety with Class A Fireproof Performance

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Solar Quarter • August 2017 76

170818_billboardad_3GWindia_print.pdf

1

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salesindia@trinasolar.com

Solar Quarter • August 2017 77

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