Blog



Tamil Nadu Solar Energy Policy 2012 – Full Text


I have gone through the entire text of the Tamil Nadu Solar Energy Policy released earlier today and providing the policy document in detail. I have deliberately left out some of the sections as they are not specific to the policy but general information on technology, global installations etc.

(Excerpts of the Consultation Meeting held for bidding up to 1000 MW over here)

Hope you find this document useful – Narasimhan

Tamil Nadu Solar Energy Policy 2012

Government of Tamil Nadu

Tamil Nadu Solar Energy Policy

 Contents

1. Preamble

2. Vision of the Government of Tamil Nadu

3. Title and Enforcement

4. Objectives

5. Target for promotion of solar energy in the state

6. Shortages and constraints in fossil fuel

7. Renewable energy installations in Tamil Nadu

8. Experience of Solar Energy in India

8.1  Global Solar Scenario

9. Technology Cost

10. Advantages of Solar Power

11. Solar Technologies

11.1 Solar Photovoltaic

11.2 Concentrated Solar Power (CSP) based Solar Thermal Power Plant

11.2.1 Parabolic Trough Systems

11.2.2 Power Tower Systems

11.2.3 Parabolic Dish Systems

11.2.4 Thermal Storage Systems

12. Development of Solar Power in Tamil Nadu

13. Solar Purchase Obligation (SPO)

14. Mechanism to Generate 3000 MW by 2015

15. Promoting Solar Rooftop Systems

16. Promotion of Solar Water Heating Systems

17. Development of Solar Parks

18. Procurement Policy of Solar Power

19. Single Window Agency (TEDA)

20. Solar Manufacturing Facilities

21. Establishment of Solar Power Plants in Industrial Estates

22. Policy Initiatives

23. Plant and Machinery

24. Formation of Empowered Committee

25. Research & Development and Capacity Building

 

Solar Energy policy 2012

Government of Tamil Nadu

Energy Department

 ==I am leaving out the general knowledge stuff and going straight to stuff that matters. So, some of the sections present in the Policy Document will not be here.==

2.     Vision of the Government of Tamil Nadu

The Honourable Chief Minister Selvi J Jayalalitha has a vision of developing Tamil Nadu as a world leader in Solar Energy by establishing 3000 MW  by 2015.

Tamil Nadu is committed to leading the country by generating 3000 MW of Solar Power by 2015 through a policy conducive to promoting solar energy in the state. This Government headed by the Hon’ble Chief Minister Selvi J Jayalalitha, intends to make Solar Energy a people’s movement just as it did earlier in the case of Rain Water Harvestig.

3.     Title and Enforcement

This policy will be known as the “Tamil Nadu Solar Energy Policy – 2012”. The Government of Tamil Nadu will undertake a review of this Policy as and when required in view of any technological breakthrough or any changes taking place in the policy at the National level.

4.     Objectives

  • To achieve energy security
  • To reduce carbon emissions
  • To project Tamil Nadu as a Solar Hub
  • To generate 3000 MW of Solar Energy by 2015
  • To achieve grid parity by 2015
  • To encourage indigenous solar manufacturing facilities in the State
  • To promote Research and Development in the solar energy sector and hybrid systems
  • To create skilled man power and employment in a new industry
  • Target for promotion of Solar Energy in the State
  • It is proposed to generate 3000 MW of Solar Energy by 2015

==We are jumping to Point 12, the rest of stuff in the middle is general knowledge stuff, not relevant to the policy==

12. Development of Solar Power in Tamil Nadu

Phase (2013-2015)                Target (MW)

2013                                          1000

2014                                          1000

2015                                          1000

Total (by 2015)                        3000

With average solar incidence of 5.5-6 kWh/m2/day, Tamil Nadu is amongst the states with the highest solar insolation in India. To retain its leadership position, Tamil Nadu will promote setting up solar power projects to the extent of 3000 MW over a period of 3 years, as furnished above.

Tamil Nadu will actively promote the solar energy sector by prescribing a certain percentage of electricity consumption through solar energy as mandatory. This will be progressively increased.

13. Solar Purchase Obligation (SPO)

The State will mandate 6% SPO (starting with 3% till December 2013 and 6% from January 2014) for the following category of consumers:

a.       HT Consumers (HT Tariff I to V)

This category will cover all HT consumers including:

  • Special Economic Zones (SEZs)
  • Industries guaranteed with 24/7 power supply
  • IT Parks, Telecom Towers
  • All Colleges & Residential Schools
  • Buildings with a built up area of 20,000 sq.m or more

b.      LT Commercial (LT Tariff V)

The following categories of consumers will be exempted from SPO:

  • Domestic consumers
  • Huts
  • Cottage and Tiny Industries
  • Powerlooms
  • LT Industrial consumers
  • Agricultural consumers

The SPO will be administered by TANGEDCO.

The above obligated consumers may fulfill their SPO by

  • Generating captive Solar Power in Tamil Nadu equivalent to or more than their SPO
  • Buying equivalent to or more than their SPO from other third party developers of Solar Power projects in Tamil Nadu
  • Buying RECs generated by Solar Power projects in Tamil Nadu equivalent to or more than their SPO
  • Purchasing power from TANGEDCO at Solar Tariff
  • Consumers desirous of availing SPO exemption by captive solar generation shall necessarily install separate meters to measure captive generation

This mechanism will require generation of 1000 MW by 2015

14. Mechanism to generate 3000 MW by 2015

The 3000 MW of Solar Power will be achieved through Utility Scale Projects, Rooftops, and under REC mechanism as follows

Utility Scale (MW) Solar Roof Tops (MW) REC (MW) Total (MW)
(a) (b) (c) a + b +c
2013 750 100 150 1000
2014 550 125 325 1000
2015 125 125 675 1000
Total 1500 350 1150  3000

 

In utility scale out of 1500 MW, 1000 MW will be funded through SPO and balance 500 MW through Generation Based Incentive (GBI) provided by the Government.

15. Promoting Solar Roof Top Systems

The Government of Tamil Nadu will promote Solar Rooftops through the following measures

i. Domestic Rooftop GBI

All domestic consumers will be encouraged to put up roof-top solar installations. A generation based incentive (GBI) of Rs 2 per unit for first two years, Re 1 per unit foe next two years, and Re 0.5 per unit for subsequent 2 years will be provided for all solar or solar-wind hybrid rooftops being installed before 31 March, 2014. A capacity addition of 50 MW is targeted under this scheme.

Consumers desirous of availing GBI shall necessarily install separate meters to measure rooftop generation.

ii. Promoting Rooftops in Government

  1. Solar Home Lighting is being installed in 3 lakh houses under the Chief Minister’s Sola Powered Green House Scheme (CMSPGHS) and will be completed by 2015-16.
  2. Energisation of Street Lights with solar energy. The State will be energizing 1 lakh street lights through solar energy by 2015-2016
  3. All new Government/Local Body buildings shall necessarily install solar rooftops.
  4. Existing Government/Local Body buildings will be provided with solar rooftops in a phased manner
  5. All Street Lights and Water Supply installations in local bodies will be energized through solar power in a phased manner

16. Promotion of Solar Water Heating Systems

i.                    Public Buildings

The Government of Tamil Nadu has issued amendments to the Building Rules through the following Government Orders, making the use of solar water heating systems mandatory for all designated new Houses/buildings/Marriage halls/hotels etc.

  • G.O. Ms. No. 112, Municipal Administration and Water Supply (MA1 Dept. dated 16.8. 2002
  • G.O. Ms. No. 277, Housing and Urban Development (UD 1) Dept. dated 14.11.2002

The State will promote Solar Water Heating systems by suitably amending the relevant Acts of Municipalities/Corporations

ii.                  Industries

Installation of Solar water heating systems will be made mandatory for industries having hot water boiler/steam boiler using fossil fuel

17. Development of Solar Parks

tility scale solar parks may comprise 250 MW in sizes of 1 to 5 MW, 600 MW in sizes of 5 to 10 MW and 650 MW of sizes above 10 MW. Solar Power projects will be developed through competitive/reverse bidding. Solar Parks with a capacity of about 50 MW will be targeted in 24 districts

18. Procurement Policy of Solar Power

18.1 Tariff based competitive bidding

As solar power is expensive compared to conventional/other renewable energy, a cost effective methodology needs to be evolved to promote solar power generation systems.

Tamil Nadu will select developers through Tariff based reverse/competitive bidding. The recent experiences of Germany and Spain also prove that competitive bidding is the best way for adoption by Governments. The Government of India through NTPC Vidyut Vyapar Nigam (NVVN) also follows the competitive bidding process.

Investments through Joint Ventures by State Public Sector Undertakings will also be encouraged at competitive tariffs

18.2 Renewable Energy Certificate and Carbon Credits

Renewable Energy Ceritificate (REC) mechanism promotes trading of solar power to meet solar purchase obligations (SPO). All the obligated entities committed to meeting SPO will necessarily will have to wither produce solar power (captive) or buy solar power from TANGEDCO or purchase solar RE certificates for an equivalent  quantity through the Power Exchange from the Promoters who have tradable RE Certificates.

Under this mechanism Solar power developers are eligible to possess one tradable RE Certificate per every 1000 units of energy (1 MWh) wheeled to the Distribution utility or to any other licensee.

All solar power producers are eligible to avail of the Clean Development Mechanism (CDM) benefits to enhance the viability of the projects.

19 Single Window Agency (TEDA)

Various statutory clearances that are essential for the development and commissioning of Solar Energy Projects will be handled by TEDA in co-ordination with the concerned departments/agencies. Guaranteed single window clearance will be provided through TEDA in 30 days so that the plants can be commissioned in less than 12 months

20. Solar Manufacturing Facilities

The Government of Tamil Nadu will promote integrated solar generation and manufacturing parks which will house the entire ecosystem for solar manufacturing including wafer, cell and module making, and Balance of System (BoS) component manufacturing. Local solar manufacturing industry (around 1000 MW/annum) will result in substantial direct and indirect job creation in the supporting sectors. Manufacturing of Solar Thermal components will also be encouraged.

The Government will encourage indigenous manufacturing of solar panels and other related equipment.

20.1 Incentives to Manufacturers

Appropriate tax incentives as per the Tamil Nadu Industrial Policy will be provided to attract investors from India and abroad

Tamil Nadu will actively support the growth of local manufacturing of solar components and ancillaries. A solar manufacturing ecosystem will be created that will include solar research centres, test facilities, resource assessment facilities, educational institutions, training centres, etc.

20.2 Global industry leaders in solar value chain

Global majors will be invited to invest in the creation of manufacturing facilities in Tamil Nadu, with appropriate incentives as detailed above. Tamil Nadu will position itself as the regional hub for integrated solar manufacturing and technology development.

20.3 Exclusive Solar Manufacturing Parks

Lands will be identified for development of exclusive solar manufacturing parks. The State will promote setting up of solar manufacturing industries in these exclusive solar manufacturing parks to be established in the State.

20.4 Requirements for Poly Silicon Manufacturing

A Poly Silicon capacity of 10,000 MT would be required to yield silicon wafers sufficient to produce 1000 MW.

20.5 Preference in Industrial Parks

Preference will be given for establishing Solar manufacturing industries in the SEZs/Industrial estates / Parks viz., SIPCOT, SIDCO and similar Government organizations

21. Establishment of Solar Power Plants in Industrial Estates

In order to reduce the Transmission & Distribution losses, Aggregate Technical & Commercial (AT&C) losses and other infrastructure expenditure, Solar Power Plants will be set up in all industrial estates subject to availability of land at reasonable cost

22. Policy Initiatives

22.1 Net Metering

Net metering will be allowed (at multiple voltage levels) to promote rooftop penetration

Net metering facility will be extended to Solar power systems installed in commercial establishments and individual homes connected to the electrical grid to feed excess power back to the grid with “power credits” accruing to the Photovoltaic energy producer.

Projects to evacuate power at suitable voltages as suggested below

Solar PV System Size Grid Connected
<10 kWp 240 V
10 kWp to < 15 kWp 240 V / 415 V
15 kWp to < 50 kWp 415 V
50     Wp to < 100 kWp 415 V
>100 kWp 11 KV

22.2 Wheeling and Banking Charges

The wheeling and banking charges for wheeling of power generated from the Solar Power Projects, to the desired locations for captive use/third party sale within the State will be as per the orders of the Tamil Nadu Electricity Regulatory Commission

22.3 Exemption from Payment of Electricity Tax

Exemption from payment of electricity tax to the extent of 100% on electricity generated from Solar Power projects used for self-consumption/sale to utility will be allowed for 5 years

22.4 Tax Concessions

Tax concessions as per the Tamil Nadu Industrial Policy will be provided

22.5 Exemption from Demand Cut

Exemption from demand cut to the extent of 100% of the installed capacity assigned for captive use purpose will be allowed.

22.6 Facilitation by the Nodal Agency

TEDA shall endeavour to facilitate the development of the projects in the following areas:

  • All statutory clearances from Govt. Departments / Agencies
  • Evacuation approval from State Transmission Utility
  • Connectivity to the substation of State Transmission Utility
  • Common clearances from TNPCB etc., whenever feasible for providing plug and play facility to Solar Developers

23. Plant and Machinery

Only new plant and machinery are encouraged as per international standards. Such machineries/components will be approved either by the Ministry of New and Renewable Energy, Government of India, or by approved test centers in India/International test houses. Only plants/machineries which give Plant Load Factor (PLF) as per the latest standards will be permitted.

24. Formation of Empowered Committee

An Empowered Committee under the Chairmanship of the Honourable Minister of Electricity with the following members will accord project clearances for the establishment of solar power projects to be bid out in the State:

  • Chief Secretary
  • Finance Secretary
  • Energy Secretary
  • CMD/TANGEDCO
  • CMD TEDA – Member Secretary
  • One Technical Officer from TANGEDCO

25. Research and Development and Capacity Building

Research and Development on solar technologies / solar thermal storage systems, testing facilities towards the development of solar technologies will be encouraged. Technology Demonstrations on innovative projects in association with reputed institutions will also be encouraged.

To effectively implement this policy and to achieve the intended objectives, the Tamil Nadu Energy Development Agency (TEDA) will promote capacity building in the area of Solar Energy.

==End of Policy Text==

Check out: EAI Consulting for Solar Energy – Solar PV & Solar Thermal



Devising Your EV Strategy: White Paper from EAI.


Check out: EAI Consulting for Electric Mobility – Electric Vehicles, EV Components & EV Charging Infrastructure 

About EAI & EVNext

EVNext, EAI's specialized consulting division, provides assistance in market research, strategy consulting, technology vendor/supplier finder assistance and more for the complete EV value chain - Li-ion & Lead Acid Battery Cells & Battery Packs, BMS, Battery Manufacturing equipment, EV charging station, battery swapping station, Li-ion & Lead Acid battery recycling, and for a range of electric vehicles - e-bikes, electric bicycles, electric scooters, electric motorbikes, electric autos, e-autos, e-rickshaws, electric trucks, electric LCVs, electric buses and more. Send a note to consult@eai.in if you wish to take EVNext assistance for the Indian electric vehicle market.

EAI's specialized consulting has benefitted clients all across India and select countries outside:

EAI has provided consulting & industry research assistance across India, having clients who have benefitted from our consulting or research from the following cities:

Ahmedabad | Amravati | Amritsar | Asansol | Aurangabad | Bangalore (Bengaluru) | Belgaum | Bhavnagar | Bhopal | Bhubaneswar | Bikaner | Chandigarh | Chennai (Madras) | Coimbatore | Cuttack | Dehradun | Delhi | Dhanbad | Durgapur | Faridabad | Firozabad | Gandhinagar | Gangtok | Ghaziabad | Guntur | Gurgaon | Guwahati | Gwalior | Hyderabad | Indore | Jabalpur | Jaipur | Jalandhar | Jalgaon | Jammu | Jamnagar | Jamshedpur | Jodhpur | Kalyan | Kanpur | Kochi (Cochin) | Kolhapur | Kolkata (Calcutta) | Kota | Kozhikode | Lucknow | Ludhiana | Madurai | Mangalore | Meerut | Mumbai (Bombay) | Mysore (Mysuru)| Nagpur | Nashik | Navi Mumbai | Nellore | Noida | Patna | Pimpri & Chinchwad | Pune | Raipur | Rajkot | Ranchi | Salem | Sangli | Solapur | Surat | Thane | Thiruvananthapuram (Trivandrum) | Tiruchirapally (Trichy) | Udaipur | Vadodara (Baroda) | Vijayawada | Vishakapatnam | Warangal

Countries worldwide where EAI has assisted clients through research reports or consulting

Australia | Austria | Bahrain | Belgium | Brazil | Canada | Chile | China | Croatia | Czech Republic | Denmark | Estonia | Finland | France | Germany | Hong Kong | Hungary | Greece | Iceland | India | Indonesia | Ireland | Israel | Italy | Japan | Kuwait | Latvia | Lithuania | Luxembourg | Malaysia | Malta | Mexico | Netherlands | New Zealand | Norway | Portugal | Republic of Korea (South Korea) | Russia | Saudi Arabia | Singapore | Slovakia | Slovenia | South Africa | Spain | Sweden | Switzerland | Thailand | Tunisia | Turkey | United Kingdom (UK) | United States of America (USA)

100s of Solar Questions Answered @ Ask Solar Mango - Read More

Narasimhan Santhanam

Thank you for reading this post – hope it was helpful. You can connect with me at narsi@solarmango.com . My detailed profile here and my LinkedIn profile here

Posted in: Policies and Regulations, Solar Energy

Leave a Comment ( 123 ) →



121 Comments

  1. Energy Alternatives India October 21, 2012

    A very interesting policy, in EAI’s opinion. And innovative as well, as for the first time I see a multi pronged approach to a reasonably large target like 3000 MW – decentralised, REC/SPO and utility scale.

    How easy would it be to get the whole thing implemented? Will be glad to have a detailed discussion with all those folks reading this blog post…

    (reply)
  2. SK Rajendran CitiSun Power October 21, 2012

    Sir, I yet to go through the plan in detail. meanwhile, I should honestly thank Madam C M to take this initiative. She is an iron-lady. She has proved well in rain-water harvest. She is now on solar Power preservation. May God give her the strength to catch hold of it strongly: Tamilnadu will be the role model for other State. regards.

    (reply)
    • Energy Alternatives India October 21, 2012

      I agree with you Rajendran on the fact that Jayalalitha has higher will power and determination to see projects through than many of her peers. Let’s hope she does it again…

      (reply)
      • Narayanaswamy Sahadevan October 23, 2012

        The discussion has gone on the right line but no response is received from any of the policy makers or Government Officials. Even TEDA has not put up a roof top Solar Power Plant for their office. They shall set an example to make their office a green building to show as a model to others.

        On our side of the public wastage shall be avoided. All tube lights shall be converted to CFL or LED lamps. A 1 MW solar power plant costs Rs.9 crore including land and grid connection. This will produce about 15 lakh units per year, which can be sold at Rs.2.54 per kwh to TANGEDCO and we will REC certificate which can be sold for RS. 12.50 today. Standing orders are available for this. 15 Lakh unit at Rs.14 will fetch Rs.210 L. After meeting interest, depreciation, operation and maintenance charges of Rs.180 L per year (20% of capital), we will save Rs.30 L. This will fetch a return of 10% on the equity of 30%. If additional concessions like 100% Depreciation is availed, the return will improve to more than 20%.

        Roof top solar plants of 25 KW to 100 KW can be installed by availing 30% subsidy from GOI. Out of the balance 70%, Accelerated Depreciation will fetch another 24%. Your net investment will be 46% only. Roof top solar power plants are available at Rs.1 Crore per MW. The funny part is if you install a 100 KW solar power plant at your house or office and connect to grid, TANGEDCO will collect Rs. 36,000 as Gird Connection Charge, Rs. 3,600 as meter reading charge. Hence we will loose Rs.0.4 lakh per year. Government should come forward to withdraw this charge.

        Immediate action is
        energy efficiency measures to reduce consumption, which we can do ourselves.

        (reply)
  3. Sakthi October 21, 2012

    Very Happy to see that the policy is out. Better late than never. From the Domestic consumer perspective, are they incentivizing the actual power generated (2rs per unit for first 2 year etc) by Netmetering? Or is it during the installation the total incentive would be calculated depending on the capacity and providing it upfront to take off some burden with the installation cost? Incentivizing installation cost is very important as a typical setup might cost 2-3 lakhs for an average household and that might be a big hurdle without any incentive from the government.

    (reply)
    • Energy Alternatives India October 21, 2012

      Sakthi – good question…while it has not been specifically mentioned, I guess it is fair to assume that the generation based incentive will indeed be paid based on generation.

      Yes, providing an incentive upfront will ease the investment decision for the consumer, but remember, we are in India. Any incentive provided upfront will likely be abused and I will not be surprised if I dont find the solar systems on houses six months after installation if the incentives were paid upfront :-)

      (reply)
  4. Durai October 21, 2012

    Deccan Energy Solutions Pvt.Ltd : we are very happy to receive this message, it is going to change the way energy is produced and consumed, we should see the possibilities of achieveing the target. Atleast now the financial Institutions should come forward to finance these projects

    (reply)
    • Energy Alternatives India October 21, 2012

      Dear Durai

      I agree with you, there are interesting points and the fact that the government seems to have enough homework to come up with something innovative should indeed make it that much easier for financial investors to take a look…

      Also, pl look at the response I made for Manoharan’s comment earlier on how the ambitious SPO policy could significantly alter the prospects for returns to developers and investors

      (reply)
  5. Manoharan.S October 21, 2012

    Thank you very much for the message Let us see How “Ener Tek” team will assist Madam Policy, Main think the financial Institutions should come forward to finance these projects.

    (reply)
    • Energy Alternatives India October 21, 2012

      Yes Manoharan, I completely agree with you on the role financial institutions need to play, both for the domestic rooftop phase (I guess industrial rooftops will likely not require much external financing from what we have seen so far) and for utility scale.

      To me, the landmark point in this policy that could make financial investors less hesitant could be the SPO regulations bought in. Should that get implemented properly, just imagine: Of the 11 GW that TN uses today, HT industries must surely be using at least 40%? So that would be about 5 GW. 6% of 5 GW = 300 MW, but if this is for thermal/conventional whose PLF is about 75% (as against 17% for solar PV). For solar hence, if the entire SPO were to be satisfied, it would mean a minimum requirement of 1200 MW from solar. This is obviously the logic with which the government has computed the 1000 MW from SPO for utility scale (see document text above)…

      Now, if, and this is a big IF, the SPO were implemented strictly (as Jayalalitha did for rainwater harvesting), then the guys who put up the utility scale power plants (even those who did who did not get allocation through reverse bidding) should have a fairly easy time getting a decent return through the SPO route…

      Of course, there are points that require clarifications, but overall, some good thought and work appear to have been put into this policy…

      (reply)
      • akshay pandey October 21, 2012

        @ EAI – I see one issue in the logic you have mentioned for SPO and how it could make investors more secure…

        The total SPO is, let us assume, what you have mentioned viz – 1200 MW equivalent. The government has allocated 1000 MW from the 1500 utility scale for this, and I see a further 1150 MW allocated under REC. This together makes the demand/requirement estimate of solar power from industries at 2150 MW. But the total SPO requirement from your assumption comes to only 1200 MW.

        Of course, industry % of demand could be more than 40% as you had assumed (I am not able to find the right number from google), otherwise how will 2150 MW of solar be consumed by industries through SPO route & RECs? ( I am of course assuming that only those obligated entities will ever buy RECs)…

        (reply)
        • Narasimhan October 22, 2012

          akhshay…you have a point, I am thinking….let me respond once I get some more clarity on data points

          (reply)
      • Ramanathan October 22, 2012

        SPO is a very welcome model. But we need to consider feasibility for a end consumer to put up a captive plant . Yes, they can put up a plant at far off places & wheel the energy but again it inccurs T&D losses. No change in Wheeling & transmission charges unlike AP. Where’s the incentive for a end consumer?
        National Action Plan on climate Change sees about 3% energy mix in the country from Solar through RPO. Currently TNERC hasn’t even implemented 0.05% Solar RPO in TN. We have High court cases pending on the topic.

        3% is highly ambitious and no clarity on implementing it.
        Tangedco is going to bill the customers in the solar tariff for 6% energy consumed (Premium price) in monthly billings. Govt says the money is for utility scale plants but it’s just an additional revenue for TANGEDCO immediately.
        It’s an indirect price hike for HT consumers

        It’s just my opinion and the way I see it. I may even be wrong. Request your suggestions.

        (reply)
        • Narasimhan October 22, 2012

          Ramanathan – you made a very interesting point there…got me thinking…in a hypothetical scenario, if no one puts up solar power plants in TN and as a result the SPO can be met only through increased payment to TANGEDCO, just that one organization will benefit immensely with no addition to solar capacity…is this even a theoretically likely scenario under this policy? That could be really funny!

          (reply)
  6. Raghav Suresh October 21, 2012

    How the netmetering will be done? Do the government has equipments to do that??

    (reply)
  7. Reena Roy, Delhi October 21, 2012

    Rajasthan, Gujarat and MP – who are the obligated entities for their SPOs? I thought discoms were ones who need SPOs but in this policy also end consumers need SPOs?

    (reply)
    • Mahadevan Srinivasan October 21, 2012

      Reena…fyi

      Who are obligated to purchase RECs?

      The entities mandated to purchase a defined quantum of renewable energy of their overall consumption are Obligated entities. Obligated entities may either purchase renewable energy or can purchase RECs to meet their Renewable purchase Obligation (RPO) set under Renewable Purchase Obligation of their respective States. Following entities are generally obligated in the State:

      * Distribution Licensees
      * Captive Consumers
      * Open Access users

      http://www.iexindia.com/rec.htm

      (reply)
    • Narasimhan October 22, 2012

      Hi Reena

      Obligated entities have traditionally (well, a short tradition of last 2 years that is!) have been only the 3 that Mahadevan has mentioned…but in the case of TN, we see that high tension consumers (who may or may not be open access consumers) have also been included…

      (reply)
  8. Narasimhan October 21, 2012

    I had some questions from one Mr Venkatasubramanian over email (thanks sir), thought I’d post it here as well so that others can respond too:


    Dear Shri Narasimhan Santhanam,

    Thank you very much for posting the TN Solar Energy Policy 2012. I was not able to get details either from Tamil Nadu Government websites or from EAI’s website yesterday. I thank you very much once again for making me to understand the policy fully.

    It appeared to my mind that;

    1. Though this is overdue from GTN, we would be happy for this appropriate timely initiative.
    2. The guidelines, procedures, rules and regulations are to be published early.
    3. The term of of office for Selvi J. Jayalalithaa is more than three years and therefore this initiative would get total support from her and definitely succeed.

    I need some clarifications from you from the point of view of domestic consumer as well as an entrepreneur of a small scale.

    1. Under Domestic Rooftop Generation Based Incentive, Rs.2 per unit for first two years and Re.1 per unit for next two years and Re.0.50 per unit for subsequent two years are given for commissioning rooftop solar or solar-wind hybrid units.
    · Is it exclusive of the subsidies and other financial support extended for installing such units or is it only the benefit for the roof top domestic energy producer?
    · Has the Government provided Grid connectivity throughout Tamilnadu?

    What is the arrangement for such new arrangement arising out of this policy?

    · What is current cost of providing such roof top domestic system?

    I will shortly provide my responses to these, others are welcome to share their thoughts too, thanks

    (reply)
  9. Dr.T.N. Venkatasubramanian October 21, 2012

    Thank you very much for posting the TN Solar Energy Policy
    2012. I was not able to get details
    either from Tamil Nadu Government websites or from EAI’s website yesterday. I thank you very much once again for making me
    to understand the policy fully.

    It appeared to my mind that;

    1.
    Though this is overdue from GTN, we would be
    happy for this appropriate timely initiative.

    2.
    The guidelines, procedures, rules and
    regulations should be published early.

    3.
    The term of of office for Selvi J. Jayalalithaa
    is more than three years and therefore this initiative would get total support
    from her and definitely succeed.

    I need some clarifications from you from the point of view
    of domestic consumer as well as an entrepreneur of a small scale.

    1.
    Under Domestic Rooftop Generation Based
    Incentive, Rs.2 per unit for first two years and Re.1 per unit for next two
    years and Re.0.50 per unit for subsequent two years are given for commissioning
    rooftop solar or solar-wind hybrid units.

    ·
    Is it exclusive of the subsidies and other
    financial support extended for installing such units or is it only the benefit
    for the roof top domestic energy producer?

    ·
    Has the Government provided Grid connectivity
    throughout Tamilnadu?

    What is the arrangement for such
    new arrangement arising out of this policy?

    ·
    What is current cost of providing such roof top
    domestic system?

    2.
    What is the approximate current requirement –
    both financial, land, technological – for setting up a 5 MW solar power plant? What is the capital margin required from an
    entrepreneur for getting funds from the financial institutions?

    (reply)
  10. harsha October 21, 2012

    What is Generation based Incentive? They say it is Rs 2 per unit of generation? So if a domestic consumer has 1KW system generating 4 units of power in a day, then it’s Rs 8 is paid, even if it’s self consumed? Or is it generating the solar power and giving it back to the grid via a on grid solar
    system.

    (reply)
    • Narasimhan October 21, 2012

      Good question (and am important one too) Harsha. I would presume it is the former – producing it and consuming for themselves.

      But I understand your point – if Net Metering is available and I am able to export power to the grid, I should be paid a much higher rate, which is not mentioned anywhere…

      Good question, hopefully we will get more clarity on this soon…

      (reply)
    • Brahmanand October 21, 2012

      It simply means that for every solar kWh that one produces, one gets Rs 2 a GBI. Moreover, since roof-top systems are allowed net metering, if the roof-top producer consumes that kWh, (s)he does not have to pay for that kWh to the power company. So in all, the end-user saves the money for that kWh generated and get a GBI of Rs 2. This is particularly interesting for domestic consumers with high electricity consumption as they avoid paying for electricity at the higher slab. It is however not attractive for domestic consumers with less electricity consumption. A feed-in-tariff would have been much more interesting and encouraging for all domestic consumers and not only the high-end consumers.

      (reply)
      • Narasimhan October 22, 2012

        Brahmanand – Interesting point u made there…but actually the policy appears to suggest that feeding to the grid is possible for excess power – see 22.1 second para…

        (reply)
        • Brahmanand October 22, 2012

          The policy allows you to feed in excess power into the grid only for the purpose of using it during the month the solar production is low (rainy season, for example). But there is no way one can ear any money from the excess electricity fed into the grid.
          My point was slightly different: for every kWh consumed beyond 500 kWh, the tariff applicable is Rs 5.75/kWh. So it will make sense for those who consume more than 500 kWh to offset the excess consumption by solar electricity because they avoid paying Rs5.75/kWh generated plus a GBI of Rs 2 for the first 2 years. I guess the logic behind reducing the GBI is that with the passage of time, solar will achieve grid parity, hence there is no need to provide any GBI after 6 years.
          On the other hand, why should someone who consumes less than 500 kWh install roof-top solar because the avoided cost for every kWh is only Rs 3 and with the GBI, it amounts to Rs 5/kWh, which is very low for anyone who makes solar investment.
          On the other lowest bidder for solar may be around Rs 7-8 per kWh. Is it not unfair to support big investor by agreeing to pay that amount whereas a household which consumes less electricity will only get Rs 5/kWh? Moreover, what a missed opportunity of covering all the roof tops in urban areas (which will keep the roof coolers, avoid the T&D losses and avoid the need for land needed for mega solar projects).
          To avoid such situation, government should have gone for feed-in-tariff for roof-top solar installations, as in the case of Gujarat where if a household cannot afford to set up solar can at least rent it to someone else and earn some money from it.

          (reply)
  11. Brahmanand October 21, 2012

    The vision of Tamilnadu
    Government to make Solar Energy a people’s movement is laudable. However, it
    falls short in making the vision comprehensive in terms of integrated approach
    to achieving energy sustainability. Just like the case of rainwater harvesting,
    the whole thrust is on the supply side and there is not a word about the demand
    side! Energy demand and energy supply are two sides of the same coin.

    While the document heralds
    the vision being a people’s movement, why is it that the roof-top system is
    allowed “net metering” with a regressive generation-based incentive over a
    total period of 6 years whereas solar power developers will be selected through
    a tariff based reverse/competitive bidding? Such pricing does not encourage
    roof-top installations, further considering the fact that roof-top systems avoid
    the T&D losses (energy is used where it is generated) in contrast with the
    solar power generated by the developers.

    While Rs 2 for the first
    two years seems low as GBI to encourage roof-top solar system, it certainly
    would make much more sense if innovative financial schemes were proposed to
    householders to achieve energy demand management such as the end-users getting
    credits to purchase high-efficiency electrical products and appliances and
    reimbursing the amount on installments to the DISCOM. Such schemes would need
    no subsidy but financial engineering that provides win-win solutions to all
    parties concerned (end-users, power utilities, financial institutions,
    government, country, global environment).

    It would therefore seem Tamilnadu has missed a golden opportunity to make
    solar energy really a people’s movement, favoring the businesses more and not
    encouraging adequately the involvement of all the electricity consumers, small
    or big.

    (reply)
    • Narasimhan October 22, 2012

      Brahmanand – thanks for your detailed inputs…while no one will disagree with your opinion that decentralized/rooftops should be encouraged to the maximum extent possible, I would feel that a Rs 2/kWh incentive over and above capital cost subsidies (which I assume can also be availed of) is not bad…

      Pl see my response to Raghu of Solkar in an earlier post…it is unrealistic to expect anyone to offer very high incentives for solar on residential rooftops…I think it is more realistic to expect that certain sections of the society in certain locations with long power cuts will find these incentives good enough to go for it…

      (reply)
      • Brahmanand October 22, 2012

        MNRE only provides subsidy for stand-alone roof-top solar system and not for roof-top grid-tie systems. I am not in favor of any kind of subsidy as in most cases it is misused and the intended results are not achieved. Following the Electricity Act, the tariff fixed by the regulatory commissions includes some amount to be collected through the electricity tariff so that power utilities can meet their RPOs. This is based on the sound policy of gradually increasing the share of renewables (solar) in the energy generation mix. Tamilnadu Government now seems to conveniently pass the bucks to the big consumers by imposing an SPO. I wonder how practical it will be to administer the SPO compliance of thousands of HT customers when the State ERCs is unable to mandate the DISCOMs to meet their RPOs (as reported in today’s Economic Times). Let us wait and see.
        It would have been good to introduce a feed-in-tariff and ask the power utilities to meet their solar obligations partially by purchasing roof-top electricity generated by their own customers instead of going out to REC or the Power Trading Platform to meet their solar obligations. It is only fair that the power utility which collects the the additional amount to cover the RPOs pays back to the same customer who is willing to invest in roof-top solar system. The relationship between the power company and the customer can only be better, not to overlook the fact that utility avoids the T&D losses for the roof-top solar electricity.

        (reply)
        • Narasimhan October 22, 2012

          Interesting points, Brahmanand…I was discussing with colleague earlier today about the obligated entities for SPOs and we thought exactly the same thing you had mentioned – how are they going to enforce RPOs / SPOs on so many thousands of HT customers (I believe TN has 4000+ such HT companies…)…

          As you rightly pointed out, if enforcing it on one discom or a couple of discoms has itself been only a partial success, one wonders….

          Many other valuable points too that you have mentioned, thanks

          (reply)
  12. SOLKAR RAGU October 21, 2012

    The policy doesnt address any immediate solution to the current power shortage and sufferings of the people. No doubt – the efforts will provide power from solar in next 3 – 4 years time. but what has not been done is to reduce the cost of the initial investmment. For example if a domestic user installs a 1 KW power plant it costs Rs. 2.5 lakhs and there is a GOI subsidy of Rs.75,000. The net cost to be paid by the user is Rs.1.75 lakh and he has to pay 5% VAT on 2.50 lakhs and net investment will be about Rs. 1.90 lakhs. This will generate 5 units a day and about 1500 units a year. With Rs.2 per unit as generation incentive – the user gets only Rs. 3000/ per year. Now tell me who can afford this??? it is like telling a person who is now walking – to buy a car and the govt saying i will give you subsidy for petrol.. how can they buy the car?? The govt should have abolished tax 5% on solar equipments and also given addl subsidy atleast for next 1 year so that they can install the system. Also on Geration based incentive – the main issue will be calculation of units generated. The Policy says there shd be a metering for this but if the system is with battery ( many want only this due to heavy power cut now) how it will be measured? where is net metering availble in TN now at all districts.. how will the thrid party sale for HT can be implemented without directions from Regulatory commission which doesnt have the head as on date?
    While the 3% and 6% mandatory is good , it doesnt help any short term solutions or encouragement for domestic or tiny/small scale industries to encourage having solar plant. Ther shd have been also financial schemes from TIDCO / SIDCO/TIIC/TNPFC at concessional rate of interest.
    These are my opinions based on my experiance in this field for 29 years.
    While i appreciate the policy by and large , this shd have few inclusions depending on present power situation of 3500 MW shortage in the day to day life
    K.E.RAGHUNATHAN
    MANAGING DIRECTOR
    SOLKAR SOLAR INDUSTRY LTD
    CHENNAI

    (reply)
    • Narasimhan October 22, 2012

      Dear Raghu,

      Good to have you here and sharing your insights

      I think there is one point where you could be slightly wrong…the Rs 2 incentive is on top of the savings the customer makes on not having to pay the utility for that unit of power, which obviously will be the rate at the highest slab. Let’s say this is Rs 4 per kWh. This implies that the total benefit to the customer is Rs 4 +2 = Rs 6 per unit and not Rs 2 per unit, while calculating payback etc.

      However, I agree with your overall contention that even at Rs 6 per unit benefit, the system is not economical enough (though I’d submit that the cost for 1 kW to be in the range of Rs 1.5 lakhs before subsidy). I think it is simply the high cost of solar, and the government can do only so much. I am not arguing for the government (!), but just pointing out some realities.

      I feel that the residential segment will use solar not based on economics but based on a need to have higher energy security. So. it is sensible to expect mainly the well-to-do in cities like Coimbatore to embrace it full time (At a 14 hour power cut per day, anything that gives them power will be affordable to a rich family), than middle class in Chennai (who will make do with no power or at best low capital cost inverters)…

      (reply)
    • Winston Jesudas October 24, 2012

      Dear Sir,
      Your arguements are not true. There is an acute shortage of power in Tamilnadu and the only survival tactic for a person in Tamilnadu is to generate his own power whether it is diesel or solar. As solar in the long run will be cheaper he has to do it at what ever its cost. Beggers cannot be choosers.

      (reply)
      • Energy Alternatives India October 28, 2012

        Winston, I do agree with your point. For those industries suffering from long power cuts, what is required is power for much longer durations, even if it is costly…

        Today, they are using diesel gensets which cost almost Rs 18 per kWh. Solar power is less costly even today. Two years down the line, diesel power will cost over Rs 20 while solar power would have come down even more…

        This is the power of renewable sources vis-a-vis the fossil sources

        (reply)
  13. arunagiri27@gmail.com October 21, 2012

    The incentives should be given in real sense, and that too then and there, I wish the government should immediately advertise in vernacular dailies about what should be done by the common man. where he will get the application form to get him self registered for Net metering??. LEt us jump into action.
    We should be grateful for the Govt, especially the CM for this bold initiative. BUt we also request her to use her administrative skills, and ensure that this kind of metering, registering, incentives etc does not get diluted by the rampant corruption that exists in the Electricity department now.
    Giri

    (reply)
    • Narasimhan October 22, 2012

      Giri – fully agreed, CORRUPTION, that is the real FOUR LETTER word for India…as well for Tamil Nadu. Let’s hope this time it is different

      (reply)
  14. Dr.T.N. Venkatasubramanian October 22, 2012

    Mr. K.E. Raghunathan, MD, Solkar Industries has raised practical questions.

    In order to get participation by an individual or a common man, the
    Government’s policy may have to encourage more and more cheaper, energy
    efficient user friendly products of daily use towards reducing
    consumption of electricity and using solar energy.

    Mere subsidies at current level shall not encourage people participation. A decent
    revenue generation methodology for the common man over and above the
    normal bank interest by selling electricity to Government through their Roof
    Top Projects may induce a greater participation by people.

    Instead of allocating the entire solar energy projects to private
    companies and public private partnerships, the Government may have to pave way
    for participation in the equity by small investors.

    With available information, it appears that the policy is non-inclusive.

    (reply)
    • Energy Alternatives India October 30, 2012

      Dear Venkat…

      I strongly feel that renewable power will be adopted for two reasons – One, for economics (where it fares quite poorly unless subsidised as you have rightly pointed out); Two, for energy security, especially if this renewable power comes from the rooftop or one’s own backyard…

      I would say solar, even with just moderate subsidies, will do reasonably well when it comes to energy security…what are your thoughts?

      (reply)
      • Venkatasubramanian T.N. October 31, 2012

        Thanks for your reply.

        The main issue is economics, which is the major stumbling block. The policy is out now and every effort will be taken by the Government to attract private investment and participation. For this, Government would come forward to ensure a minimum profit for the entrepreneurs through various measures. Unless this is done, no businessman or entrepreneur would show any interest for new solar power projects. Why not such benefits for Roof Top Projects?

        As the solar power plants are not economically viable on its own, the Governments through out the World are coming forward to fill the gaps in order to attract private investment and participation.

        The philanthropic approach as pointed out by you to achieve energy security may not attract enough participation and may be a short term solution. People may opt for Solar Energy Roof Top Plants only during the severe power cut periods towards meeting their personal needs and may not continue once the power crisis is resolved.

        The Government’s role has got many dimensions and my point was that if it is able to devise a plan for energy security as a mass movement by reducing the shortfall in investment and participation, Tamil Nadu can ensure energy security in the near future. We can recall the tremendous success of rain water harvesting to enhance the ground water recharge in Tamil Nadu and was a model for the entire World.

        The highlight of the current TN Government’s Solar Policy is the SPO – Solar Purchase Obligations which would make a huge impact in the coming years.

        The Government of Tamil Nadu may like to increase the percentage under SPO in an incremental manner over a period of time. Also, the Government may be interested to come out with a regulation to compulsorily include a double digit SPO for new HT power users while granting licenses.

        The term of a strong and willful government under the leadership of Chief Minister Selvi Jayalalithaa is there for the next three years and it is more than sufficient to see that Tamil Nadu achieves energy security and to become a role model for the World.

        (reply)
      • Venkatasubramanian T.N. October 31, 2012

        Thanks for your reply.

        The main issue is economics, which is the major stumbling block. The policy
        is out now and every effort will be taken by the Government to attract private
        investment and participation. For this, Government would come forward to ensure a minimum profit for the entrepreneurs through various measures. Unless this is done, no businessman or entrepreneur would show any interest for new solar power projects. Why not such benefits for Roof Top Projects?

        As the solar power plants are not economically viable on its own, the
        Governments through out the World are coming forward to fill the gaps in order to attract private investment and participation.

        The philanthropic approach as pointed out by you to achieve energy security
        may not attract enough participation and may be a short term solution. People
        may opt for Solar Energy Roof Top Plants only during the severe power cut
        periods towards meeting their personal needs and may not continue once the
        power crisis is resolved.

        The Government’s role has got many dimensions and my point was that if it is
        able to devise a plan for energy security as a mass movement by reducing the shortfall in investment and participation, Tamil Nadu can ensure energy
        security in the near future. We can recall the tremendous success of rain water harvesting to enhance the ground water recharge in Tamil Nadu and was a model for the entire World.

        The highlight of the current TN Government’s Solar Policy is the SPO – Solar
        Purchase Obligations which would make a huge impact in the coming years.

        The Government of Tamil Nadu may like to increase the percentage under SPO in an incremental manner over a period of time. Also, the Government may be interested to come out with a regulation to compulsorily include a double digit SPO for new HT power users while granting licenses.

        The term of a strong and willful government under the leadership of Chief
        Minister Selvi Jayalalithaa is there for the next three years and it is more
        than sufficient to see that Tamil Nadu achieves energy security and to become a role model for the World.

        (reply)
        • Energy Alternatives India October 31, 2012

          @ Venkatasubramanian – You said: “The philanthropic approach as pointed out by you to achieve energy
          security may not attract enough participation and may be a short term
          solution. People may opt for Solar Energy Roof Top Plants only during
          the severe power cut periods towards meeting their personal needs and
          may not continue once the power crisis is resolved.

          Agreed and, Not!

          Conceptually, what you are saying is right, agreed.

          Disagreement is because:

          Severe power cuts for many parts of India will be a reality for at least a decade, the country is growing so fast…

          And
          the other point is that there are tens of thousands of villages which
          have never seen electricity – there is no grid at all to them, period!
          For them as well, decentralized power (perhaps solar) is the only
          option.

          Well, post 2025, it could be a different country, but it is too far
          away to look. Until 2025 at least we will be having large swathes of
          population experiencing fewer than 5 hours of power from the grid…this
          is certainly not philanthropy for them…what do you say?

          (reply)
          • Venkatasubramanian T.N. November 1, 2012

            I think I need to explain the term philanthropy. This philanthropy term is from the point of view of common man who may be interested to invest in Roof top solar projects but unable to do so because of two reasons:- 1. Financial Constraints & 2. Return on Investment.

            All walks of life were severely affected by the recent power cuts in Tamil Nadu. No doubt the Tamil Nadu Solar Energy Policy 2012 is focused on eliminating this at the earliest.

            I feel that the current power crisis has made the entire population to come forward to do something positively. The economics on the roof top solar power projects in the current scenario is preventing some segments of the population, even though they are willing to participate in the renewable energy power projects.

            The role of Government has got many facet s and I feel if it includes all sections of the society in the noble cause of generating solar power, this would become a people’s movement, which is the need of the hour in
            respect of Tamil Nadu.

            This segment of people, who may be a commoner or from a middle class or any positive individual, a small trader, a factory worker, auto driver, a student, a govt. employee, etc., etc., is not in a position to participate, even though this segment of people have the willing mind and ready extend physical support. This entire group may not be in a position to invest to commission roof top solar power projects (there may be exceptions) which gives negative returns.

            The current policy, if it is enlarged, covering this segment of people would definitely resolve the power crisis in Tamil Nadu much faster.

  15. Navin Kumaar S October 22, 2012

    First and foremost, Mr. Narasimhan, Thank you very much for taking the effort of putting up the relevant portions of the policy for ease of access. Second, though delayed by almost a year, it is good to know that we finally have a solar policy for our state, which has almost been a blackmark given the potential of Solar Power here. In my opinion, more than anything else, awareness was/is the biggest hurdle for solar power in Tamil Nadu, not many knew what it was and how it worked. Definitely a great step forward.

    Few good points in the policy which we noticed were making a mandatory SPO for HT and LT consumers. Going for a roof top based application for an industrial/commercial entity entitles them to benefits such as Accelerated Depreciation, reduction in electricity consumption etc. If roof space is insufficient to meet the demand, RECs are the best option, which also helps spurt the growth of power projects under REC Scheme (which gives nearly 40% IRR on the long run).
    However, the schemes for households/domestic applications are not clear. The GBI of Rs. 2 / Rs. 1 should be more clear. I.e., whether the consumer can claim subsidy under JNNSM/MNRE schemes, consume the power and still claim the GBI, not clear. Another issue is with off-grid standalone units (i.e. battery backup based units), it would be a bit difficult to measure the units via a separate meter. We have seen solutions for this setup overseas. This wouldn’t be an issue with a grid connected system, with net metering facility. Fact cannot be denied that most domestic applications will be stand alone systems.
    For those who have a lack of space, I would suggest going in for a concept similar to carpools. Apartments, small industries can pool in their resources (in this case, space and money), and utilize it for generating power, either for own consumption, or selling to EB or so.
    It would be great if TEDA could organize a discussion forum for explaining the nuances of the policy in a meeting and publish the same.
    On the whole, it looks like a bright future ahead for Tamil Nadu.

    Best regards,

    Navin Kumaar. S
    Navsar Green Energy Systems
    http://www.navsar.in, facebook.com/navsargreen

    (reply)
    • Narasimhan October 22, 2012

      Navin, thanks for your detailed inputs…

      I agree with you overall on the attractiveness of REC projects, though I should note that not all financial investors are readily embracing this…they still have doubts on demand for RECs, which is essentially a reflection of their doubts about RPO implementation

      On your question of whether the consumer can get benefits under the NSM scheme as well, I presume they should be able to, if their installations qualify for all points under that scheme…

      Of course, the above are my thoughts, the best is for TEDA to have a full fledged meeting on this…

      (reply)
  16. sankar October 22, 2012

    Along with solar policy of generation use of lesser power required lightins like LED lights are also to be taken up by TN govt policy ,which will help in energy saving.

    (reply)
    • Narasimhan October 24, 2012

      Yes, as someone said, energy efficiency is the fifth renewable energy – after solar, wind, biomass and hydro because of its potential to release so much more extra energy…

      Yes, the schemes on LED etc need to be appreciated

      (reply)
  17. Rajkumar KVM October 22, 2012

    Indeed, Solar policy is a welcome move. Will solar alone be a solution for the power crisis? I think the Govt should come with comprehensive RE policy including biomass to find a long term solution for the issues.

    (reply)
    • Narasimhan October 24, 2012

      Rajkumar, you made a very interesting point.

      The peak power deficit in TN currently is about 4000 MW – this is in the world of thermal power whose PLFs are about 80%. 3000 MW of solar is equivalent only to about 750 MW of thermal in terms of output.

      So, the math is already there for all of us to see – even if all 3000 MW were implemented, it would still meet only about 20% of peak deficit (generously assuming the peak deficit does not increase by 2015!).

      Definitely, the government will need to look beyond olar – one simple way is to strengthen the wind power sector in which TN has a lead, by removing the bottlenecks that are stopping investments in this vital sector.

      Imagine, by 2015 TN could also have about 10,000 MW of wind from the current 7000 MW…wind PLF is slightly higher than solar, so an additional 3000 MW will add about the equivalent of 1000 MW of thermal…a good part of the deficit gets wiped out…

      Biomass might not have as high a potential as wind, but in select geographies and segments it could play a role

      (reply)
      • K.Periasamy October 25, 2012

        Please look at my comment posted else where in this discussion and reproduced below :

        It is unfortunate that thinking that we are ” progressive” and also by
        falling prey to popular sentiments, TN Government is yet again doing a
        mistake on the power front.

        In the past 15 years we encouraged Wind Mills in a big way. About
        Rs.50,000 crores has been invested to install about 6300 MW of Wind
        mills. From these Wind Mills, we are hardly getting
        about 3000 MW maximum for just few months in a year. The PLF is hardly
        14 % as against 70-80% for Coal / Nuclear plants.

        If only we had invested this Rs.50,000 crores in Coal / Nuclear plants
        we could have installed 7000 MW and we would be getting atleast 6000 MW
        for all 365 days in a year and for all 24 hours a day.

        Now we would not have had any power cut at all !

        But today, every one is unhappy.

        The State is struggling with power cut. The people are unhappy.

        The wind mill owners could not repay the loans as the PLF of wind mills
        is hardly 12-18% as against the promised level of 20-25% . TNEB is also
        not able to pay its dues to the wind mill owners in time due to higher
        cost of wind power. The CDM benefits are also practically nothing.

        So, the Wind Mill Owners are unhappy.

        The Accelerated Depreciation benefit has been withdrawn as originally
        announced. The Wind mills are not giving the projected PLF. So, there is
        no more demand for Wind mills.

        The result, the Wind Mill manufacturing companies are also unhappy.

        A similar situation is awaited for Solar power due to this Solar push !

        Please look at the following facts :

        1) The PLF of Solar plants can not be more than 20%. That means, this

        3000 MW solar is just equivalent to 750 MW of Coal / Nuclear plant (3000
        x 20/80). But we are going to spend close to Rs.25000 crores for this
        750 MW !

        2) Solar will be available only during day time. In another one year,
        after the commissioning of about 3000 MW of ongoing Coal / Nuclear
        projects, we will not have any
        shortage in day time. We may have peak time shortage only, unfortunately when Solar
        power will not be available.

        Hence this investment will become redundant after one or two years
        unless we are planning for atleast about 2000 MW Battery storage !

        3) To use the Solar power effectively, Coal / Nuclear plants will be
        proportionately asked to back down, like it is being done for utilising
        the Wind Mills today.

        Will this not affect the financial performance of Coal / Nuclear plants ?

        4) The life of the Batteries is hardly 5-6 years. The replacement cost
        and the disposal of batteries are going to be big challenges.

        5) In TN, we have a combination of dust and humid climate. With this
        combination, there is need for frequent cleaning of PV Cells. This adds
        to operating cost and also decreases the life of PV cells.

        In countries like Germany it is some what better due to frequent rain and clean air, though the PLF there is much lower.

        6) Regarding the cost of solar power, the story is awful. If we take a
        very optimistic figure of just Rs.1,50,000 per KW of installed capacity
        for a typical roof top plant, the interest alone works out Rs.18,000 per
        year @ 12% interest rate. The value of electricity produced is going to be just Rs.9,000
        (5x300x6).

        What about the Battery replacement cost, depreciation of the original plant investment, cleaning cost, etc ?

        Does it make any economic sense ?

        So, I fervently appeal to all the technical people to understand the
        power resource options in the right perspective and intervene in this
        matter.

        We may at best encourage CSP Solar power plants with Gas / Coal /
        Bagasse hybrid and reduce further investments in Gas Turbines to meet
        Peak demand.

        If at all we are bent on going Solar without the above hybrids, it is
        better to install them atleast as hybrids along with Wind Mills. This
        way we can utilize the infrastructure already created for Wind Mills in a
        better manner. Moreover, many of the Wind Mills which are installed 10
        to 15 years back are likely to be decommissioned soon.

        (reply)
        • Energy Alternatives India October 25, 2012

          Dear Sir,

          It takes a lot of courage to speak for coal and gas in
          this age when these are four letter words, so I fully appreciate your
          boldness in pointing out what are real weaknesses that renewable energy
          sources have today. In fact, there is a wonderful book written by a UK
          professor Sustainable Energy without the Hot Air which also points out
          similar issues, in the UK context.

          Currently, renewable sources
          contribute less than 5% of the total power (in units) generated in
          India. Will renewable energy contribute more than 20% by 2030? If we are
          lucky, it just might, but I agree, it is a question mark.

          All
          these, however, should not ignore the fact that coal and gas have
          troubles of their own. Ask the Tatas, who recently said there are so
          many problems sourcing coal that they would rather go for renewables.
          Natural gas fares much better, I agree…

          I feel a balanced
          strategy should be “dont remove your emphasis on gas based power plants
          for the short-medium term (until 2025), but place increasing emphasis on
          renewables with time”. Coal and gas, as you have rightly pointed out,
          are the only ones which can immediately solve the current power cuts
          until about 2020, but investing in them ALONE implies NOT INVESTING for
          the future of our country – beyond 2025.

          (reply)
          • K.Periasamy October 25, 2012

            In India we have limited Gas availability. Moreover we have other pressing needs for Gas like, Fertilizer feed stock and transport fuel. We need to import LNG. Today it may be attractive. But after few years, we may have problem similar to that of Indonesian Coal faced by Tata and few others. We have very little control on the pricing in the international market.

            Let us not loose focus of the main discussion by deviating like this.

            Will the Domestic players and the others who are going to invest for the 3000MW Solar power based on this Policy be happy after 2 to 3 Years despite the total subsidy component of Rs.12,000 crores ( 3000 MW x 10 x 0.40) by the Central Government and about Rs.450 crores ( 3000 x 1000 x 5 x 300 x 1) per year of GBI by State Govt ?

            Will this Policy of focusing on this 750MW (equivalent of 3000 MW solar) not deviate our main focus of setting up additional Coal / Nuclear power plants as has happened in the past 10 years of honey moon with Wind Mills ?

            Will this investment of about Rs.25,000 crores not come in the way of mobilising resources for other power plants, especially when Coal / Nuclear plants are forced to back down to accommodate Solar power ? If this Rs.25,000 crores comes by way of FDI from Green Supporters from outside, it will be excellent !

            Since day time shortage is only temporary and Peak load issue is going to persist, does it make sense to go for PV based Solar with Battery as a key element, given the high cost of investment / replacement and associated pollution ? Are we going to have 2000 MW of Battery back up ? (or) Are we going to again rely on Gas Turbines just for few hours to meet the Peak demand and keep it idle for rest of the time ?

            So, please do not look from the perspective of domestic users only, whose problem of few tube lights and fans in day time is only temporary ( and that also has been caused by relying too much on Wind Mills in the past ), which will be resolved very shortly.

            Please have a holistic picture. We need to triple our present per capita energy availability to get the standard of living atleast equal to that of China, if not better.

            If we pursue this kind of short sighted patch up solutions, we will never be able to get anywhere near China !

          • Energy Alternatives India October 28, 2012

            Sir, can you kindly tell what your suggestion is going forward, in terms of a blueprint that ensures energy security in a sustainable way?

          • K.Periasamy October 30, 2012

            The right choice will be Coal / Fission Nuclear power for the next 50 to
            100 years. Later on, Fusion Power will take over.

            All others will be patch up solutions which are thrust upon politicians by the common public, who understand only ” the free availability of sun power and wind power ” and certain intellectuals who give importance for perceived risks, rather than real risks.

            Other countries which have per capita energy consumption of 6000 units can afford to do Don Quixote exercises, but not India with 800 units.

            For a complete understanding on the pros and cons of various energy options for India please have look at the following Link :

            http://www.scribd.com/doc/103024651/Energy-Options-for-India-3-8

  18. R veluswamy October 22, 2012

    Writing is on the wall. The days of coal based power plants are gone once and for all. Public shall make their own power for their own consumption. Big firms to secure their own power needs. Electricity Board will watch the fun and enjoy some more time then weep about their future

    (reply)
    • Narasimhan October 24, 2012

      Ha-ha…let’s hope whatever you have said above comes true…Electricity board will still exist, for sure, their role could be quite a different one in future

      (reply)
  19. R veluswamy October 22, 2012

    Solar photo Voltaic system needs Batteries. it is the duty of the Government to set apart space where such highly polluting making , recycling of batteries will be set up. may be Pollution control board suggest some location as per their guide lines

    (reply)
    • Narasimhan October 24, 2012

      Good point made Veluswamy on the batteries part…

      One point I would like to make though is that batteries will be required only for the rooftop systems which form only about 350 MW of the total 3000 MW…utility scale, grid connected power plants, which form the bulk of the 3000 MW target fortunately do not use batteries today…

      (reply)
      • Winston Jesudas October 24, 2012

        Sir,
        We do not need batteries as netmetering allows us to supply
        excess to grid and draw from the grid and hence no need for
        batteris.

        (reply)
        • Energy Alternatives India October 28, 2012

          Winston, good point, but we will need batteries for the situations when there is no grid power and when there is little sunlight…though intuitively, it appears the battery requirements will be considerably less if net metering is introduced

          (reply)
          • Jason Joseph October 29, 2012

            One clarification required. From speaking to many companies dealing in solar roof top systems, i have been made to believe that in case a customer opts for a system without batteries which is a grid tied system, such a system will only serve to save electricity costs and will not serve as a back up when there is no EB power supply. Also, apparently, when there is no power, the system will not provide any electricity to the house as there are no batteries. Another version i heard was that the system will also shut down when there is no EB power supply as if its ON and the panels are generating energy, that power would feed back to the grid and might electricute anyone who is probably doing maintenance or any kind of repair work on the electricity lines. Would appreciate if some clarity could be provided on the above.
            Jason Joseph
            email: jason@designworks.in

  20. MANI S S October 22, 2012

    It looks odd to keep the same capacity as target all the 3 years. 1000, 1500, 2000 must atleast be attempted, if we are achieve something. When the govt itself is not willing to exert itself, I dont think it can expect the citizens to show required eagerness. And the subsidy shown is very little to encourage. if the incentive per unit can not be increased, atlest the periods must be made a minimum of 3-3-4 years.

    (reply)
    • Narasimhan October 24, 2012

      Mani

      The incentive is provided for 6 years (the rooftop GBI)…

      On the ambition part, while I would like to agree with you on increasing targets every subsequent year, I would say “let’s first achieve this”, that alone will provide the momentum to try for far bigger things…

      While 3000 MW is not humungous, it is not easy to achieve this even in three years…

      (reply)
  21. venkatarama sharma October 22, 2012

    with solar policy tamil nadu entering towards positive steps, i want to know if it mentioned total cost of electricity/unit, and back up plans for night electricity like bateries and salt

    (reply)
    • Narasimhan October 24, 2012

      Dear Venkatarama…

      Specifics and benchmarks such as the ones you have enquired about have not yet been provided…hopefully, we will have all these very soon

      (reply)
  22. Abraham Joseph October 22, 2012

    I was very much in need of the Policy Statement. Thanks to the founders of EAI. Very many thanks to them.

    (reply)
    • Narasimhan October 24, 2012

      Thank you Abraham, our pleasure

      (reply)
  23. Abraham Joseph October 22, 2012

    Saudi Arabia and Germany entered into a pact on a Project to tap solar energy from the Arabian derserts. The current stage of the project is now known. After the completion this project they may supply electricity to many countries. The percentage of users of solar power in Californa is considerable. The efficiency of solar cells converting solar energy to solarPV or solar thermal is still low. On an experimental basis the maximun coversion may be a little over 3o per cent. The Government of Tamil Nadu must ensure the efficiency before buying the modules or the whole fabricated panels. Otherise, the whole project of Tamil Nadu will be a failure. People’s participation in this project will be lukearm; this is primarily due to additional work by the way of inital cost, maintenance and replacement. To my knowledge to get the incentives one has to go from pillar to post in the Government officers.Entreprenuers are well aware of this ordeal. Now about companies! The area occupied by the panels will be very very large and Indian companies in the suburbans of the cities have very little space; they may not volunteer in any project on solar energy; but they will watch go for incentives accruing from the project. The countries such as USA, Canada and Australia having large tracts of land mass will be profitably get solar energy. So is the case with the desert filled Arabian countries. I am not a prophet of doom.
    Yet the efforts of the Tamil Nadu Government is laudable. There is no alternative for the Government. Kudamkulams are not possible in any State of India in futre. Therefore, “Better now than later” with solar energy.

    (reply)
    • Narasimhan October 24, 2012

      Abraham, I fully agree with you. While challenges do exist, it is wonderful for TN to have made a start in this

      (reply)
      • Jason Joseph October 29, 2012

        Narsi, Can you kindly send me the list of “approved vendors” of solar roof top systems in TN. And also, any info on how to become a part of this “elite list of approved vendors” would be much appreciated. Thanks a lot in advance for your help.
        Jason Joseph
        email: jason@designworks.in

        (reply)
        • Energy Alternatives India October 30, 2012

          This link provides ( http://www.teda.in/site/index/id/5j9q4z2i5v ) list of solar manufacturers/suppliers enlisted with TEDA

          From another EAI Club member page ( http://www.eai.in/club/users/Nithya/blogs/1086 ), I received a list of Solar Photovoltaic Systems/Solar Thermal Systems manufacturers/suppliers in Tamilnadu – not necessarily approved or registered with any body:

          KCP Sixvell Power Systems, Salem
          Vellore Agro Tech’s, Vellore
          Saravana Energy Systems, Cuddalore
          Alter Energy systems, Madurai
          Win Solar Industry, Salem
          Aditya Power Industries, Chennai
          Rashmi Industries, Erode
          Sree Nandhee’s Technologies Pvt Ltd, Chennai
          Sathiyan Sun Power Systems, Salem
          Win Power System, Salem
          KCP Solar Industry, Salem
          Mercury Solar Sequence, Dindigul
          Sai Sustainable Energy Equipment, Chennai
          Solson Solar Equipment Device Pvt Ltd., Madurai

          And finally, here is a list of channel partners approved by MNRE (all India) – List of channel partners accredited by the MNRE for Off-Grid and Decentralized Solar Applications under JNNSM – http://mnre.gov.in/file-manager/UserFiles/list_channelpartners_sp_jnnsm.pdf

          The lists together should be of some assistance?

          (reply)
    • Senthil Kumar K October 25, 2012

      Solar Junction Does it Again, Sets New CPV Efficiency Record
      http://www.renewableenergyworld.com/rea/news/article/2012/10/solar-junction-does-it-again-sets-new-cpv-efficiency-record

      In April of 2011, the company set a new standard for the energy efficiency of commercial-ready production solar cells, reaching 43.5 percent efficiency at 418 suns. Their new world record, announced on October 15 and verified by the National Renewable Energy Laboratory (NREL), brings that new standard up a significant notch, establishing 44 percent efficiency at 947 suns.

      So, the commercially available efficiency of concentrated solar photo-voltaic is 44%.

      (reply)
      • Energy Alternatives India October 26, 2012

        A bit of marketing, it looks to me…all the same, hope SJ commercialises this soon enuf, even though you mention it is commercial I doubt it has been commercially proven on a large scale under diverse circs to provide such a high efficiency

        (reply)
  24. Raja Muthayya October 23, 2012

    How do the RECs work as incentives? If my understanding is correct, the generating entity is issued RECs that are purchased by another entity to satisfy their SPOs. Doesn’t this result in a double counting of that portion of solar capacity?

    (reply)
    • Narasimhan October 24, 2012

      You might be right there, in fact that is one question I have too – why did they categorize REC and SPO separately, as in my opinion no one other than an obligated entity will buy an REC, though in theory I need not be obligated to buy an REC, I could also do it for my CSR…

      (reply)
  25. K.Periasamy October 24, 2012

    It is unfortunate that thinking that we are ” progressive” and also by
    falling prey to popular sentiments, TN Government is yet again doing a
    mistake on the power front.

    In the past 15 years we encouraged Wind Mills in a big way. About Rs.50,000 crores has been invested to install about 6300 MW of Wind mills. From these Wind Mills, we are hardly getting
    about 3000 MW maximum for just few months in a year. The PLF is hardly
    14 % as against 70-80% for Coal / Nuclear plants.

    If only we had invested this Rs.50,000 crores in Coal / Nuclear plants
    we could have installed 7000 MW and we would be getting atleast 6000 MW
    for all 365 days in a year and for all 24 hours a day.

    Now we would not have had any power cut at all !

    But today, every one is unhappy.

    The State is struggling with power cut. The people are unhappy.

    The wind mill owners could not repay the loans as the PLF of wind mills
    is hardly 12-18% as against the promised level of 20-25% . TNEB is also
    not able to pay its dues to the wind mill owners in time due to higher
    cost of wind power. The CDM benefits are also practically nothing.

    So, the Wind Mill Owners are unhappy.

    The Accelerated Depreciation benefit has been withdrawn as originally
    announced. The Wind mills are not giving the projected PLF. So, there is
    no more demand for Wind mills.

    The result, the Wind Mill manufacturing companies are also unhappy.

    A similar situation is awaited for Solar power due to this Solar push !

    Please look at the following facts :

    1) The PLF of Solar plants can not be more than 20%. That means, this

    3000 MW solar is just equivalent to 750 MW of Coal / Nuclear plant (3000
    x 20/80). But we are going to spend close to Rs.25000 crores for this
    750 MW !

    2) Solar will be available only during day time. In another one year, after the commissioning of about 3000 MW of ongoing Coal / Nuclear projects, we will not have any
    shortage in day time. We may have peak time shortage only, unfortunately when Solar
    power will not be available.

    Hence this investment will become redundant after one or two years
    unless we are planning for atleast about 2000 MW Battery storage !

    3) To use the Solar power effectively, Coal / Nuclear plants will be
    proportionately asked to back down, like it is being done for utilising
    the Wind Mills today.

    Will this not affect the financial performance of Coal / Nuclear plants ?

    4) The life of the Batteries is hardly 5-6 years. The replacement cost
    and the disposal of batteries are going to be big challenges.

    5) In TN, we have a combination of dust and humid climate. With this
    combination, there is need for frequent cleaning of PV Cells. This adds
    to operating cost and also decreases the life of PV cells.

    In countries like Germany it is some what better due to frequent rain and clean air, though the PLF there is much lower.

    6) Regarding the cost of solar power, the story is awful. If we take a
    very optimistic figure of just Rs.1,50,000 per KW of installed capacity
    for a typical roof top plant, the interest alone works out Rs.18,000 per
    year @ 12% interest rate. The value of electricity produced is going to be just Rs.9,000
    (5x300x6).

    What about the Battery replacement cost, depreciation of the original plant investment, cleaning cost, etc ?

    Does it make any economic sense ?

    So, I fervently appeal to all the technical people to understand the
    power resource options in the right perspective and intervene in this
    matter.

    We may at best encourage CSP Solar power plants with Gas / Coal /
    Bagasse hybrid and reduce further investments in Gas Turbines to meet
    Peak demand.

    If at all we are bent on going Solar without the above hybrids, it is
    better to install them atleast as hybrids along with Wind Mills. This
    way we can utilize the infrastructure already created for Wind Mills in a
    better manner. Moreover, many of the Wind Mills which are installed 10
    to 15 years back are likely to be decommissioned soon.

    (reply)
    • Winston Jesudas October 24, 2012

      Dear Sir,
      I have already put two solar panels of 120 watt each for my apartment as I was affected by 9 hr power cuts. Now I find that I am able to meet the power cuts without any discomfort as I have two fans running all day. I spent only Rs 15000/- extra for that. We have to spend only Rs 60000/- for a one KW installation. This makes the solar power very economical. The price quoted by most of the governmental organizations are all outdated and wrong. Sir the policy will succeed as there is no other power source like solar which is free and very predictable.

      (reply)
      • K.Periasamy October 25, 2012

        Is it true that one KW solar panel system is available just for Rs.60,000 ? Does this Rs.60,000 include batteries ? Without Batteries there is no usage for the solar panels in TN after about one year.

        Every one in this discussion have quoted Rs.1,50,000 to 2,00,000 per KW. In THE HINDU today it is quoted as Rs.2,00,000 per KW. Can anyone clarify what is the correct number ?

        (reply)
        • Energy Alternatives India October 28, 2012

          Sir, please see my response above..thank you

          (reply)
        • Jason Joseph October 29, 2012

          I would like to make one small comment here. Anyone who quotes 60k and all for a 1KW solar power generation unit is surely selling an extremely inferior product or is just making a false claim.
          Jason Joseph
          Design Works
          Chennai.

          (reply)
      • Aravind Subramanian October 26, 2012

        Dear Sir,
        Is the 60,000 including batteries?

        (reply)
        • Energy Alternatives India October 26, 2012

          I think it will cost Rs 60,000 just for 1 kW solar panels

          (reply)
          • K.Periasamy October 27, 2012

            The correct number is Rs.2,00,000 per KW without any subsidy !

            So, the interest cost itself is Rs.24,000 per year @12 %. It works out to Rs. 16 per unit [24,000 /(1 x 5 x 300)] for the nation. It is less for the public after deducting all subsidies / incentives, etc.

            If we add the battery replacement cost, cleaning labour, etc, it will be about Rs.20 per unit.

            Today, it is OK. But next year, you will crib when the grid power is available at Rs.5 per unit.

          • Energy Alternatives India October 27, 2012

            @kperiasamy:disqus – depending on who you buy panels and other BoS from, cost for 1 kW solar system can vary between Rs 1.3 lakhs to 2 lakhs (without subsidy)

      • Senthil Kumar K October 26, 2012

        With what I have enquired 1 month back, it was 95000 rupees for 1kW(Panels, battery, hybrid inverter).

        (reply)
    • sekar sc October 26, 2012

      This is exactly everyone will agree with you…. There is no economical cost and all those installed will be left with the investment disappeared in the air

      (reply)
      • Energy Alternatives India October 28, 2012

        @sekar – I think it is fair to say that solar power is not the right solution for domestic users if your decision is based primarily on economics…it is the right solution for those whose highest priority is energy security ( “my children SHOULD HAVE lights on at least 4 hours in the evening for their studies”, “my old parents need to have at least one fan running throughout the day” – these are basic necessities and people are willing to pay high costs to obtain these. If you are looking for solar to be used to play video games and chat with friends on Facebook, well yes, or use AC for extended periods, it surely is not worth it today unless you belong to the upper middle class/rich folks)

        (reply)
        • K.Periasamy October 30, 2012

          The right choice will be Coal / Fission Nuclear power for the next 50 to 100 years. Later, Fusion Power will take over. No one need to be unduly worried about the future energy needs.

          (reply)
          • Energy Alternatives India October 31, 2012

            @ K.Periasamy – If things were so easy, we wouldn’t all be sitting and discussing these. Energy security would not be such a big issue!

          • K.Periasamy October 31, 2012

            Yes, if the common people had not clamored for Wind power 10 years back ( and TUF Scheme @ 4% interest had not been allowed for Wind Mills !), TN Government would not have encouraged Wind mills so much and the private investors and wind mill manufacturing companies would not have burnt their fingers now after spending Rs.50,000 crores.

            We would have invested that money in setting up about 7000 MW of Coal / Nuclear power plants and TN will not be having power shortage at all. Ultimately there would have been no need for this discussion at all !

            If the public have not displayed their “expertise” on energy matters, by now, Kudankulam both Units would have been commissioned also.

            Now after 10 years of Wind Mill “success”, the Government is again listening to the general public opinion of ” why are we not utilizing freely available solar energy ? ” ( as if the engineers / officials are not knowing this !) and planning to repeat the same mistake by going in for 3000 MW of Solar which will give 750MW equivalent electricity and that also in day time when we do not want it !

            God save Tamil Nadu ( and India ) !

          • Energy Alternatives India October 31, 2012

            Just to let you know sir, tens of coal power plants today in the country are seriously running short of coal.

            And wind farms are not exactly a failure as you make them out to be. During Jul-Sep, if the wind mills dont operate in TN, our plight will be far, far worse.

            And by the way, it take 7-8 years to build a nuclear power plant under most circumstances, public opposition or no such opposition! This period does not include the planning and design stage

            Bottomline?

            There is no silver bullet when it comes to energy.

          • K.Periasamy November 1, 2012

            1) ” tens of coal power plants today in the country are seriously running short of coal.”

            a) None of the Coal power plants set up in TN in the past 10 years are suffering for want of Coal.

            b) The current fiasco on Coal supply is because of the public intervention in the coal mining. Since most of the coal is available in forest areas only, the public need to make up their mind whether they want to allow coal mining by creating double the area of new forests or they want to conserve the old forests only and forego the increase in electricity availability !

            c) We have enough coal upto a depth of 300 m, which can support about 2,00,000 MW atleast for 60 years.

            d) If we try to convince the public saying that we will avoid coal power plants in future just because we have this temporary set back in coal production due to a combination of factors like the public disturbance, some procedural issues followed in coal mining, etc, then we are cheating ourselves and the public !

            e) The tens of thousands MW power plants have to be commissioned shortly and they have to run for 60 years. We have no choice and we need to have no doubt on that.

            2) “And wind farms are not exactly a failure as you make them out to be.
            During Jul-Sep, if the wind mills dont operate in TN, our plight will be
            far, far worse.”

            a) How much are they failures ? I have given the numbers.

            b) So, we will give electricity between Jul – Sep every year when the Wind Mills are working and for the rest of period, we will keep saying that Wind Mills are not working what we can do. Will public accept this argument( even though they only clamored for Wind Mills !) ?

            c) It is a pity that even many of the educated people think that between Jul-Sep only Wind Mills have come to the rescue of TN !

            They are not able to appreciate the simple fact that in the past 10 years we set up these Wind Mills instead of setting up Coal / Nuclear power plants and that is how we have landed into this trouble today ! We could have set up 7000 MW of Coal / Nuclear power instead of the 6300 MW wind mills which were set up at a cost of Rs.50,000 Cr.

            So, the reality is that by relying on Wind Mills( which are known to serve only between Jul-Sep), as per advice from “experts” like us who have mislead the people and the politicians who in turn played to the music of the people, have ultimately put TN in trouble.

            My humble request is that please do not repeat the same mistake again by encouraging Solar now.

            We can always get into Solar when the PV panel prices fall or the cost of Coal / Nuclear power increases so that the Solar cost comes at least close enough that we do not unduly tax the Govt in terms of subsidies. It does not involve any great technology which takes time for us to learn or develop.

            Still if we want to do some betting on Solar, please look for hybrid options as mentioned in my earlier posts so that the peak load problem is addressed and also the investments made are effectively utilised.

            Please have a look at the data provided in the following Links :

            http://www.thegwpf.org/lies-damn-lies-and-green-statistics/

            http://scef.org.uk/news/1-latest-news/345-global-warming-scare-is-finished

            http://m.guardian.co.uk/money/2012/oct/12/wind-solar-ethical-investments-avoid?cat=money&type=article

            3) Regarding the 7-8 years for Nuclear power, yes it takes time. Hence, let us plan it immediately, not after learning a bitter lesson once again !

            Let us be practical. Let us not over react based on public sentiments, which keeps changing with time. The decision makers have to keep cool head.

          • K.Periasamy November 2, 2012

            The details of failure of our massive Wind Power initiative can be seen from the data given in the following Links which are taken from the Windpro magazine august 2012.

            http://www.scribd.com/doc/111882707/Region-Wise-Annual-Wind-Generation-Pattern-for-Re-Rich-Regions-During-2011

            From the above Link, it is clear that during 2011, for the southern Region, the generation was varying from 0 to 80 Million Units per day max. Only between Jul-Oct, the generation was varying from 40 to 80. In the remaining period, it was hardly 10-20 Million units. The annual average is about 45 Million units per day. That is annual total production was 16,425 Million Units.

            For the installed capacity of 15,705MW, the generation capacity is 1,37,575 Million Units ( =15705 x 1000 x 365 x 24 / 1000000).

            Which means, the Capacity factor had been hardly 11.9 %. Compare this with 70 to 80 % for Coal / Nuclear.

            Please note, Southern Region has the best Wind Mill sites. Then you can imagine what is the fate of other sites !

            Let us understand the numbers right before moving forward further with Wind / Solar.

          • Periasamy Kandasamy November 2, 2012

            Please ignore the above given calculation for the capacity factor of Wind Mills. There are some mix up in the numbers between Southern Region and All India Total.

            Sorry for the same.

            The correct data is given below :

            Average units generated per day in Southern Region : 35 Million
            Installed capacity of Southern Region : 8545 MW
            The capacity factor = 17% [ = (35 x 365) / ( 8545 x 1000 x 365 x24 / 1000000) ].

            Compare this 17 % with the capacity factor of 70-80 % for Coal / Nuclear power plants.

            Further, the issue of availability only during 4 months in a year and that also in an erratic manner even within any single day are major impediments for Wind Mills.

            Please note, the 35 million given above is approximate since it is taken from the Graph given in the above Link. If someone gives the correct total generation for 2011 and also the weighted average installed capacity for 2011, we can get an accurate capacity factor.

          • Energy Alternatives India November 2, 2012

            @ Periasamy – you are a walking encyclopedia! Do you have time to do anything else other than learning more energy stuff and data :-)

          • K.Periasamy November 5, 2012

            But still there is no word about the observations made by me about the failure of Wind Mill investments and the potential for the Solar to go in the same way !

            I have sent the Excel calculation for verifying the costing.

  26. Imran October 25, 2012

    Hi Narsimhan,

    Just wanted a clarification with respect to the obligation of this SPO on HT I-V consumers. The point is that these consumers would already be connected to the grid through their discoms. Effectively, the responsibility of meeting this SPO comes on discoms or in the case of Tamil Nadu these consumers have to additionally meet the 6% SPO. What is the right position in Tamil Nadu policy?

    (reply)
    • Energy Alternatives India October 28, 2012

      Imran – good question. To me, with the data available, it appears that the onus of the SPO is only on the corporates in the case of TN.

      Yes, as I had argued elsewhere in the comments, it seems to make more sense to place the onus on discoms as other states have done, so will be nice to know the rationale for having this on thousands of HT consumers, implementation and enforcement of which could require humungous efforts!

      (reply)
  27. Ts Venkataraman October 26, 2012

    Narsimhan Santhanam- that was a very helpful extract of TN policy on Solar power. The discussions are very lively and relevant. What is not explicit in this policy is that the Solar Captive generation should be min.6% of the annual consumption or hourly used? i.e if a unit has 10MW connected and consumes annulally say 60 Million units (75% of connected), it should install Solar power plant to generate 0.06X60X10^6= 3.6 million units. Since a SPV at a PLF of 25% can at best generate only1.5 million units per year, which means we require to install 2.4 MW SPV ? i.e 24% of Connected Power ?

    TS Venkataraman-MD, Esvin Tech, Chennai

    (reply)
    • Energy Alternatives India October 30, 2012

      Yes sir, you are right. Technically it will come to about 20-25% of connected power (capacity), owing to the low efficiencies of SPV…

      But again, SPV can be met by multiple means, not only by a company on its own installing a power plant. So, to that extent, the fact that it has to be 25% of Wattage is only of academic interest to many those who will be either buying RECs or obtaining the power through PPAs

      (reply)
  28. sekar sc October 26, 2012

    The renewable energy generation whether solar, wind or hydro are capital intensive project and highly depended on nature. Therefore it is necessary to make smaller generation from 5 MW or even smaller units should also to be encouraged. Since it is captive consumption, no need to route through government distribution net work to get subsidy. Instead equal to electricity if additional consumption may be allowed to draw in a subsidized by the government distribution net work. Capital incentive/subsidy is surely necessary to encourage to set up projects as most of the parts still imported and not available in India at a desired price.

    (reply)
  29. Sakthi Ganesh October 27, 2012

    @EAI – Are there any plans to do a story on commercially available Solar/Wind energy solutions for domestic consumers? Available options, approximate cost, how to leverage the incentives provided by Central / state governments, space considerations, contact points etc would really help those who are eager to embrace renewable technology.

    (reply)
    • Energy Alternatives India October 28, 2012

      @ Sakthi – good idea…will certainly try to do something on those lines. EAI will soon be releasing a white paper on similar options available for Indian corporates, makes sense to do one for domestic sector too

      Will try to get a first version of the white paper by end of Nov

      Thanks for the excellent idea

      (reply)
  30. Pratap M October 27, 2012

    I have been enquiring for a 1kW Solar home UPS with companys like Tata BP, Su kam and SNT. And they all have been quoting a very high price… Rs. 2.5 lacs approximately. The subsidy from MNRE is about Rs. 81000 for 1kW or 30% of capital whichever is lesser. In order for us to avail the Rs. 81000 for 1kW the vendors have raised the capital cost such that the 30% of it is greater than Rs. 81k. In that case with this subsidy i have to pay Rs. 1.7 lacs.
    The actual cost of the system is as follows if i buy the PCU battery and panel separately: PCU = Rs.50k ;
    Battery = Rs. 30k and
    Panels = Rs100k
    which adds to Rs. 1.8 lacs.
    If i apply for capital subsidy now, i’ll get back Rs. 54k back. Hence the cost of the system is Rs. 1.26k+tax
    Why is the govt. not restricting the cost of panels to a particular upper limit. Because of the subsidy we are actually paying extra because of some smart thinking by the player.
    I am a manger for design in a solar thermal R&D organization in coimbatore. Please share your views and let me know if it is wise to buy the system from these companies. It will be very helpful.
    Thank you.
    Pratap M.

    (reply)
    • Energy Alternatives India October 30, 2012

      Pratap – are you saying that companies have raised the price just so that the customer is happy he could avail the full subsidy benefit, while actually he shells out more money?

      I agree that a “clever” commercial company could do this, but I am surprised you are getting 2.8 lacs quote. Because surely, they will know that if the cost is actually much lower, some other firm could easily undercut them.

      I hear prices in the range 1.5-1.8 lacs per kW.

      (reply)
      • Pratap M October 30, 2012

        Yes Sir…The price ranges from 1.5-1.8 lacs per kW but this includes the deducted subsidy. Tata BP, Solariz and SNT have quoted so. I just had a conversation with SuKam Solar home UPS for 1kW yesterday and to my surpise they quoted around 1.3 lacs + 5% tax + 20K (Installation, wiring, steel support). This cost is without subsidy. Now if i apply for the subsidy I can get 30% of the overall cost which could be around Rs. 53.25k. The warranty for PCU is 2 yrs, panels for 15 – 20 yrs life and around 5 yr warranty. This looks like a good deal sir.

        Please share your view on this.
        Thank you.

        Pratap M.

        Manager – Design and Development

        KG Design Services Pvt. Ltd., Coimbatore.

        E-mail        : pratap.muthukrishnan@kggroup.com

        Mobile        : +91 9364107450

        Telephone : +91 422 2666187 Ext: 859

        —  In-house R&D unit recognised by

        Department of Scientific & Industrial Research ( DSIR )

        under Ministry of Science and Technology, GoI .

        P Save Paper, Save Trees, Save Earth !!!

        —————————————————————————————

        (reply)
  31. K.Periasamy October 27, 2012

    Please read the Article on “Energy Options for India” in the Link given below for a comprehensive idea on the various energy sources available and their pros and cons.

    http://www.scribd.com/doc/103024651/Energy-Options-for-India-3-8

    (reply)
    • Energy Alternatives India October 27, 2012

      An excellent report, a must-read for all the data and analyses presented

      But there are assumptions you are making which appear to be biased towards coal and nuclear…for instance, there is no more nuclear in Germany, I am sure you know that…a country like Germany, considered a pioneer in many technologies and thought processes, would not have taken a decision such as that without much analysis.

      Nuclear has a lot of unknowns, radiation risk is only a part of it. The capital cost for instance, it is still unclear whether it is 10 crores or 20 crores per MW. As just 5 large companies control this data (along with governments who have never been transparent), for all you know, nuclear might be costing much more than what we are told it does.

      I am not pro or anti-nuclear, but I think there has to a balanced approach in our march towards energy security. There is no quick fix over here, and sorry, nuclear cannot be the only answer, it is at best part of the answer.

      (reply)
      • K.Periasamy October 30, 2012

        “..for instance, there is no more nuclear in Germany, I am sure you know that..”

        Germany had 17 Reactors running before Fukushima incident. Out of this only 9 are closed as a knee jerk reaction to Fukushima. The remaining 8 reactors( which are almost 30 years old), are still operating and they will have nuclear power till 2022. Even beyond that also they will buy Nuclear power from France !

        “..a country like Germany, considered a pioneer in many technologies and
        thought processes, would not have taken a decision such as that without
        much analysis ”

        Germany has changed its Nuclear policy 3 times in the past 10 years. It is all purely political decisions based on the pressure from the co-alition partner, Green party. It is not based on any scientific basis. Let us wait and watch how many times they change their policy before 2022 !

        Even if you change the Nuclear power plant cost as Rs.20 Crores / MW,

        Regarding cost of Nuclear power, it is a generic loose statement made time and again by common people. I do not expect such statements in this enlightened forum.

        Please note, in the cost of Nuclear energy, about 50-60 % only is the nuclear part. The remaining is normal Turbine-Generator-Condenser-Swithyard sytem only. In the Nuclear part also, about 15-20% will be civil.

        So, there is nothing great which can be so much off which we can not understand / estimate. So, please do not go by this kind of statements made by common people. All Nuclear power companies are run as independent commercial establishments with financial audits. Only in the initial phase when NPCIL was not there, it was all mix up between R&D and commercial reactors. It is true in every country.

        (reply)
        • Energy Alternatives India October 31, 2012

          I will appreciate if you could provide the break-up of how the levelized cost of electricity for nuclear power is derived at less than Rs 3 per kWh. At a capital cost of Rs 20 crore per MW and a plant life of 40 years, any financial analyst will let you know that the capital cost and interest alone would amount to more than Rs 5 per kWh levelized cost, even assuming a modest 5 year gestation period in project implementation, which is being generous given that Kudankulam took more than 10 years from the start to become operational. (the planning to start the project was way back in 1988, if one considers expenses from then onwards, the returns look even more terrible)

          Remember, your interest costs and capital costs go out in the first 5-10 years, but you earn most of your money through power sales in the duration 10-40 years. In financial terms what you earn beyond 10 years is worth little in net present value terms, which essentially means that the returns, in financial net present value terms, is going to be terrible for Kudankulam because there have been no returns on the investments for the past 10 years!

          I am keen to know how the levelized cost of Rs 3 or less is arrived at. I have asked many “so called” experts and they have given me data on how the technology works, but clearly not even one of them had ever used even an excel spreadsheet to calculate returns.based on all financial costs.

          I will reassert – the levelized cost of power from nuclear power plants is a big unknown, and at Rs 20 crores per MW, and significant delays implementation, plus insurance costs added, it cannot be anything less than Rs 5 per unit. That is, if calculations are done as a financial expert would do it, not the way our so called technical experts who have no clue of how to calculate returns do it.

          (reply)
          • K.Periasamy November 1, 2012

            Please look at Table-4 in the following Link :

            http://www.scribd.com/doc/103024651/Energy-Options-for-India-3-8

            With Rs.20 cr / MW (Including interest capitalised for gestation period), the per unit cost works out to Rs.5.10 for nuclear power.

            If you need the native file of Excel calculations of Table-4, please contact : kp@pecpl.com

            Please note, since the Nuclear part is only 50-60 % of the total power plant cost and the remaining being conventional only ( Turbine-Generator-Condenser-Swithyard), there can not be such a huge jump in nuclear power plant cost as many are postulating.

            Also, since the Nuclear power plants are also owned by Private or Govt companies with proper audit, there is no need for any misconceptions on the costing. In earlier years when R&D was with power plants, there could have been some confusion. But not anymore.

          • Energy Alternatives India November 1, 2012

            Thanks, for the first time someone took the time and effort to respond for this question…please do send the xls to narsi@eai.in, and thanks for taking up the effort.

            I think firstly, appreciation to Periasamy for tackling this head on and providing data and inferences instead of saying vague things like “it

            depends”.

            That said, your inference essentially agrees with mine – that the cost is not the sub-Rs-3 that all our nuclear experts in the country would like us to believe, at Rs 20 crore per MW.

            Secondly, nuclear power costs can only increase, even if mildly. But remember, cost of capital for nuclear power plants is a tricky issue because the lending rates will be higher for projects “

  32. nagesh October 27, 2012

    Mr. Santhanam, Thanks for your presentation of total solar
    policy in simple and can be understand by any individual having basic knowledge
    of energy sector. I have gone through the entire policy and comments by all our
    friends below.

    The policy by and large is welcomed one since some initiation by the TN Govt.
    The question is how effective this policy shall be implemented?. It should not
    become another Wind sector in TN.

    Please clarify, The policy provides Electricity Tax exemption for Solar plants.
    Is it same of Electricity Duty or different one?. As per existing CERC &
    TNERC Regulations prevailing on REC Mechanism, Any RE Generating plant is not
    eligible to get registered under REC Mechanism, if it enjoys the benefit of
    Promotional/Concessional Transmission & Wheeling charges, Banking facility
    and waiver of Electricity Duty. Here the point is that, Exemption of
    Electricity Tax by TN Policy is contrary to the eligibility conditions of REC
    mechanism.

    Important: as some of the comments posted here are rightly said. TN is having
    high potential for wind power than any other RE power and already 50,000 crores
    have been invested for 6300 MW tapping. If I am not wrong, TNEB is not in a
    position to pay for wind power purchased from the private developers even after
    15-18 months which discouraged further any investment in the state. The
    developers are not in a position to repay loans to the bankers. Also the PLF is
    very low than promised by the wind mill manufacturers at the time installation.

    In my view, TN Govt. should have done some thing comprehensive measures for
    expanding wind sector instead of releasing solar policy as the major
    contribution of power for TANGEDCO is wind and the sector is doldrums. It is
    more evident that the recent regulations from the Central / State governments,
    with drawl of depreciation benefit, and GBI scheme further discouraged the
    investment and CDM is coming to almost O position, the viability of the sector
    is big question mark.

    M. Nagesh Kumar, Hyderabad.

    (reply)
    • Energy Alternatives India October 27, 2012

      nagesh – your comments on REC validity is relevant. By this policy, it appears that REC can be availed of even after concessions on tax etc are availed of…

      On TNEB non-payments, absolutely valid once more. The only difference is, if you are a developer going through a PPA with a third party industry keen on covering its SPO, TANGEDCO is not your payments – neither for the tariff nor for the REC. To that extent, I think investors will have fewer concerns.

      But I have to disagree with you on focussing on wind sector expansion. In the view of many experts, the wind sector in TN grew too fast and that is one of the reasons for the current impasse.

      (reply)
  33. prabhakaran November 1, 2012

    Can someone clarify my doubt?clause 22.1 NET METERING ,is it feasible? 240v,415v grid connection? can our distribution structure modified with in such short span.if yes can someone brief about pumping power to grid @240v,400v voltage levels

    (reply)
  34. Amlu December 26, 2012

    sir how to invest in solar power plants privately?

    (reply)
  35. Aravind September 18, 2013

    Hi..

    We are talking too much on the policies. But only one thing I afraid, ” until how many years this kind of polices will alive” ?? against the non productivity schemes(policies) such as Food security bill, Land acquitstion bill etc, Tablets for school children, TV’s for poor.next expected policy 2 Pegs of wisky with 1/2 KG of non veg twice per week in the event of non availability of proteins with foods supplied under food security bill.

    Once these all polcies pulled back from respective agencies, no one will be here or there.

    First we should think ” how to sruview in the market without depending on government subsidies. Sorry if anything hurts to some one.
    Regards.
    Aravind

    (reply)
  36. K.Periasamy January 31, 2014

    In reply to a request from Energy Alternatives I sent the Excel calculation substantiating the fact that even at Rs,20 Cr/MW, the nuclear is cheaper. There is no reply !

    Also, what is the current installed capacity of Solar PV / CSP after so much fanfare about the TN Policy ?

    I am happy to note that not many investors are not mislead by the wrong move by the govt on the power front.

    (reply)
  37. Claudio June 11, 2014

    In regions with rainfall of 40 or more inches a year,
    just multiply the monthly consumption by 150%. If you’ve purchased an enclosure that features no vents and you’re worried about
    the pump underneath, you can constantly purchase vents individually and install them your self.
    If the tidal volume is set at 500ml, the ventilator will continue to inspire
    gas until it reaches it’s goal.

    (reply)
  38. hartek May 11, 2015

    Hartek Power Pvt. Ltd. also wants to be part of this venture. Thanks for sharing this post. Resourceful.

    (reply)

Leave a Comment

X

Name

Email

Mobile

Company Name

X

Name(*)

Email(*)

Mobile

Company Name

X

Name(*)

Email(*)

Mobile

Company Name

X

Name(*)

Email(*)

Mobile

Company Name