India Solar, Wind, Biomass, Biofuels – EAI

Aathmika's Blog

Expand your network

Be part of the most happening Indian renewable energy community Join EAI Club - It's FREE

COST OF 1 MW SOLAR PLANT IN INDIA ESTIMATE, COST OF 1 MW SOLAR POWER PLANT BY CERC,COST OF SOLAR PV PLANT USING CHEAPER PANELS

LATEST NEWS AND VIEWS 
    * Innovative Solar power at the cost of Wind energy !! Looks for partners in India   Australian technology developer Vast Solar has begun construction of a 6MWth (1.1MWe) concentrated solar thermal power station with three hours storage – the first stand alone plant of its type to be built in Australia. The Jemalong project near Forbes, in western NSW, will be the first in Australia to integrate storage into a stand-alone solar power station and provide electricity to the grid, on demand at night as well as day. And, Vast Solar CEO Andrew Want suggests, it will be able to do it for around the same cost of wind energy. The company is already working on plans for larger plants, including a 30MW facility with four hours storage, but its ability to do that in Australia is now compromised because the Abbott government is removing the institutions (the Clean Energy Finance Corporation and the Australian Renewable Energy Agency) that could help finance those first commercial-scale plants. Want says the company is looking for opportunities in NSW and other sun-rich states such as Queensland, WA, and South Australia, but it is also looking at international markets such as the Middle East, US, Africa, South America and India, where such plants are being built. vast solar array CST technology with storage – and the ability to dispatch electricity on demand – is seen as a crucial component of future grids that will feature large amounts of variable generation from wind and solar PV. The International Energy Agency last week predicted that CST plus storage could account for 11 per cent of the world’s electricity needs by 2050. The key is bringing down costs. Vast Solar CEO Andrew Want said the company set out five years ago to develop a low-cost, high performance CST system that could compete commercially. “We believe we’ve done that, and this pilot project will demonstrate our system from ‘sun-to-storage-to-grid,” Want said. He said that within a few years, the technology could be delivering electricity on demand at around $100/MWh. This was close enough to wind, with the added advantage of being “dispatchable”. At that price, Want said, projects such as those aspired to in Port Augusta, where the local community wants to replace ageing coal-fired generators with solar power, would make economic sense, as it would in off-grid mining projects and other applications. “This has the potential to change the face of the CST market around the world,” Want told RenewEconomy in an interview.
The key, though, is government support if the next scale, commercial project is going to be developed in Australia, or follow other technologies overseas. The $10 million project is being backed by ARENA ($5 million), which the government announced last week it would close, despite pre-election promises to keep it open. Want said the plant could not have been developed without ARENA, which had been working with its private investors for the past three years, and had supported a smaller trial testing phase (pictured above). He said the support of ARENA or the CEFC was essential if the next phase was to take place in Australia. “It’s a huge leap for private investors to take all of that risk. Our main challenge is now, ‘how do we stay in Australia’?” Want said the company began with just three founders and no funds, and now employed over 20 people. “We’re growing fast. Our market is global, but we’ve developed all our technology locally. This is precisely what Australia should be doing – investing in new businesses, new employment and new industries for the future, to compete in global markets.” ARENA CEO Ivor Frischknecht said: “It’s an excellent demonstration of how ARENA invests along the innovation chain – from early lab research to pre-commercial deployment – to advance renewable energy technologies.” The Abbott government has vowed to close ARENA as part of its plan to close down all renewable energy programs to protect the coal industry, but it has to pass legislation to do so, and its fate will be decided by the Senate, Arena CEO Ivor Frischknecht said. vast solar towerThe Jemalong plant, which will supply electricity into the main grid by the end of the year, is rated as 6MWth (thermal) and 1.1MWe (electric). It features five solar arrays that comprise 3,500 heliostats or mirrors, 5 towers less than 30 metres high with thermal energy receivers, and a thermal energy storage system providing enough energy for 3 hours’ full power operation at 1.1MWe (3.3MW storage). The mirrors capture solar energy as heat, and the heat is stored and then released as needed to generate steam to drive a traditional turbine for electricity generation, or for industrial processes such as meat processing, brewing, or minerals processing. The key to Vast Solar’s technology – and its stated low-cost profile – is in the heat transfer fluid and how that is integrated into the system. Want is keeping details of that close to his chest. Other CST plants are using molten storage, and one Australian firm used graphite, but Want is not saying. CST systems were first deployed over 100 years ago, but recent advances have seen a resurgence of large-scale CST projects in the US, South Africa, and the Middle East, South America and Europe. The Crescent Dunes project in Nevada is the largest, and will be 110MW when it is opened next year and will be able to provide power 24/7. It is also looking for opportunities in Australia. Want said that CST power is important for Australia and for many sunny regions around the world.


“Solar thermal power plants store the sun’s energy very efficiently and at large-scale, so solar can be used to deliver power when it is most needed and most valuable, day or night.” Want says Vast Solar’s innovations come through the use of small array modules, with low-profile towers; a very different approach to the most recent large-scale, single tower projects, such as Crescent Dunes. The Jemalong plant will be mainly for R&D, but it will provide enough electricity (around 2,200MWh) for around 400 average homes.   source 23/5/14     * Rooftop solar thermal power systems are not only more efficient but also achieve considerable savings  The solar-thermal power plant installed on the roof of Wheels India in Padi has helped save Rs. 48. 60 lakh. Photo: Special Arrangement That energy systems must go non-conventional is quite apparent. But to do it in a manner that would be cost-effective and actually bear returns on investment would be the challenge. ‘Pay as you save’ is a concept that’s found its place in promoting solar energy in the city, and is generating quite a bit of enthusiasm. Aspiration Energy, a city-based firm, claims its simple payment mechanism Pay As You Save (PAYS) is becoming quite popular. The company has to chip in with a portion of capital amount of the total budget after deducting the subsidy quotient. The company’s CEO Bhoovarahan Thirumalai says the remaining capital amount would be paid as a fixed monthly amount equivalent to price of per Kilo Watt hour (kWh) for a period of five to 10 years. Industries have been keen on taking this up, in order to achieve substantial savings in energy expenditure. Mr. Thirumalai says this has worked very well in the 630 KW heating plant installed in Wheels India, Padi. Every year, he observed, an amount of Rs. 48. 60 lakh is being saved annually on furnace oil. No wonder he is convinced the system is way ahead of conventional heating technology that uses furnace oil.

Mr. Thirumalai adds that harnessing solar energy for industrial purposes is yet to gain currency mainly due to the fact that it involves huge capital costs and suffers from poor efficiency. This is where the rooftop solar thermal power system, which as is the case in Padi, can be employed for heating operations, comes in handy. The rooftop solar thermal power system is a technology used for high degree heating in several industries including milk, automobile, electroplating and chemical. Comparing the positive aspects of the solar thermal power system to the PV cells both cost- and efficiency-wise, he points out that the cost works out to only Rs. three per kilo watt and gives 100 per cent heating efficiency, whereas the efficiency level of PV cells is around 12-15 per cent. source 22/5/14   India Targets 1000MW Solar Capacity Addition For 2015 It will be interesting to know the Capacity of DCR to be added in the New Target Bloomberg reports that India just increased the amount of solar power plant licenses it plans to award next year by 30 percent — a move that adds one additional gigawatt of capacity to the government’s 2015 target.   The push is part of India’s Jawaharlal Nehru National Solar Mission (JNNSM), which was launched in 2010 by prime Minister Manmohan Singh. The goal is to install 10 gigawatts of solar by 2017 and 20 gigawatts by 2022. India’s current solar capacity now stands at 2.18 gigawatts — part of 27 gigawatts of overall renewable capacity that includes wind and hydropower — after it added one gigawatt of solar over the course of 2013.   However, the Indian government also downscaled its target for solar-thermal plants in the same decision, reducing its 2015 target to 100 megawatts of capacity from 1,080 megawatts originally. Rather than producing electricity from solar photovoltaic cells, solar-thermal plants use mirrors to concentrate massive amounts of sunlight on a single point, thus heating water to steam that drives electricity-generating turbines. Only one of the eight solar-thermal projects India had scheduled for completion last year is finished, while the other seven have faced delays and cost overruns.



India’s push for solar has not come without a few other bumps. The JNNSM raised the ire of American officials by requiring that half of the solar components purchased to meet the target come from domestic Indian suppliers. More recently, Phase II of the JNNSM expanded that requirement to the purchase of thin film solar panels, which the U.S. often exports to India. U.S. representatives say the requirement violates trade agreements the two countries agreed to under World Trade Organization (WTO) rules. India and the U.S. have until April 11 to come to an agreement before the WTO must move in itself to resolve the dispute.   “We are also clear that India has to create domestic manufacturing capacities,” India’s Commerce Minister told The Hindu in February. “India must have those capacities. Otherwise, we will end up importing for the rest of our lives.”   Two-thirds of India’s electricity currently comes from burning coal, and the country’s coal imports actually hit a record high in the last fiscal year. As a result, India’s smog problemcomes close to rivaling China’s, and the combined fossil fuel use of the two countries has made Asia the biggest territorial emitter of carbon dioxide in the world. On top of that, acquiring coal supplies is becoming both a more costly endeavor for India and a less reliable one.   Climate change driven by humanity’s carbon emissions is also a serious issue for India: the latest Climate Change Vulnerability Index determined the country is facing “extreme risk” from the droughts, floods, sea level rise, and the extreme storms global warming will bring. more..    More..   Solar power Industry growing faster than apple Inc. !?? :Reports        

Solar power is making a splash this year

Solar power is growing at such a rate that it had its hottest year for growth in the history of solar power, and the future still looks bright. According to Forbes top 25 growing business, solar is beating the tech company average as an industry. Already in the lead as the fastest-growing clean and renewable energy source in America, solar power is growing to account for 29% of new American electricity, trailing just behind natural gas at 46%. With the cost of solar power installations falling, and already down almost 10% from last year, there’s no question that the industry is growing rapidly. In the last year, solar power saw a massive 41% increase in installations. The previous 18 months solar’s growth outweighed its progress in the last 30 years.

Sunny Days for Solar

Changes in solar panel technology are making solar power installations easier, quicker, and cheaper. See how solar power has grown and changed in recent years:

The 80-Second Solar Power Installation

In 2006, a solar panel installation was occurring every 80 minutes. Now a solar power system is being set up every 4 minutes. By 2016 it will be every 80 seconds.

200 Gigawatts

In 2011, after 40 years of solar power, total installations were still only 50 Gigawatts. By 2012, they had doubled to more than 100 Gigawatts. By 2015, the size of global solar power should exceed 200 Gigawatts. 66%: Two-thirds of all solar projects worldwide were built in the past 2.5 years — the same proportion holds true in the United States. 

The Top 4 Solar Power Countries

The US had 930 megawatts of solar power installations in the third quarter of 2013 alone. It now has more than 10 gigawatts of solar power and is one of only 4 countries in the world to pass that mark. 51%: While much of solar power still relies on state subsidies, 51% of California’s residential PV systems were installed without assistance from California’s Solar Initiative.

The Solar Power Industry Spends $1 Billion on Marketing and Sales

GTM research forecasts that more than $1 billion will be spent by the solar power industry to acquire customers. This will account for about 10% of the total cost of installations. In order to stay competitive, top solar panel companies are working hard to have the best sales and marketing processes. There’s still lots of room for innovation in this space.

Growth of tech companies vs solar power

Solar Power State Champions

Solar Power is spreading its way across every corner of America, but for now California is still in the lead for new installations. More than half of last year’s solar power growth was from California alone, generating 2,621 MW. Not far behind California were Arizona (421 MW) and North Carolina (335 MW). Together, these states, with Massachusetts and New Jersey made 81% of the 2013 installs, says SEIA and GTM research. Markets for each state still have plenty of room to grow.

The Future of Solar Power

While 2017 will be a critical year for solar power, with the Federal solar power tax credit dropping from 30% to 10%, unless Obama is able to do something about it, even that won’t put a stop to the growth of solar installation. Today, there are already enough solar panel installs to power more than 2 million homes, and solar power is just starting to really ramp up. If things keep going this way, solar power might affect energy companies the way the internet killed the newspapers. more..
    Solar to become a Supply-driven market in 2014!!? Over the past three years, solar photovoltaic (PV) installed system prices, module prices, and module production costs have all fallen by more than 50%, while a shakeout of uncompetitive PV cell manufacturers has caused the number of suppliers to decline from 250 in 2010 to 150 in 2013. According to the latest edition of the NPD Solarbuzz Marketbuzz report, as a result of these falling prices, manufacturing consolidation, and a more balanced supply-demand picture, PV demand will continue to grow and the solar industry will shift from a demand-constrained market into a classic supply-driven market in 2014.

“Until recently the size of the PV industry each year was constrained by deployment levels across individual end-markets, with global forecasting performed by adding demand from each country,” said Michael Barker, senior analyst at NPD Solarbuzz. “Ultimately 2014 year-end demand will be determined by how much product can be produced and shipped, analogous to a classic supply-driven market environment.”   The demand-constrained environment of the past few years was a catalyst behind the industry’s over-capacity and over-supply problems that hindered capacity utilization rates, and resulted in capital expenditure declining to an eight-year low in 2013. Demand during 2013 was driven primarily by the booming Asian market, led by China and Japan, which are the top two markets globally. Adding in the United States, the third largest market, the top three countries accounted for almost 60% of total annual demand in 2013.   Figure: Solar PV Demand by Key Geographic Segments for 2013 and 2014     Source: NPD Solarbuzz 2014 Marketbuzz   “Looking at the global segmentation of the end-market demand in 2014, it is important again to consider the cumulative demand that is likely to be shipped into China, Japan, and the United States, rather than the specific number of gigawatts in each of these countries,” according to Barker. “A shortfall at any given time, in any one of these countries, will likely result in an uptick in demand from the other two.”       For example, any demand downturn this year in the United States, arising from the current investigation by the US International Trade Commission against China and Taiwan, may prompt the Chinese government to increase domestic demand, in order to absorb excess supply from its local manufacturers and enable them to maintain high factory utilization rates.   “The solar PV markets in China, Japan, and the United States are characterized by strong PV project pipelines, flexible and innovative financing vehicles, and proactive government policies that can be adapted to drive short-term demand upside,” added Finlay Colville, vice-president of NPD Solarbuzz. “Understanding the changing supply dynamics into each of these countries during 2014 will represent a key tactical challenge for all module suppliers serving the PV industry this year.” more..   

OFFICE OF THE CHIEF GENERAL MANAGER (GENERATION), ASSAM POWER GENERATION CORPORATION LTD. 


Request For Proposal 
For 
Setting up of a Grid Interactive Solar Photovoltaic 
Power Project at Amguri in Sivasagar District of 
Assam on JV mode read the document   Still solar wafer cost  key driver for Solar Industry   The fifth edition of the International Technology Roadmap for Photovoltaic (ITRPV) released today, continues to emphasise the critical need to reduce material costs from wafers to modules, but also highlights the need for increased cell efficiencies and higher throughput fabrication equipment as material cost reductions get harder to implement.   The latest ITRPV reports that the cost reduction learning curve, in which the doubling of cumulative PV module shipments results in the average selling price declining by over 20%, has continued and is expected to do so over the next few years.   However, increased global PV demand has seen polysilicon prices increase as well as solar cells, which the ITRPV noted have not been fully transferred to the price of PV modules, adding to the challenges of overall cost reductions.   Indeed, pricing of polysilicon, wafers, multicrystalline solar cells and modules has been stable throughout 2013, according to the ITRPV, which means that prices are not expected to compensate for cost increases. As a result, driving cost reductions in consumables and materials throughout the manufacturing process remains the key task for the industry during the current upturn.  

Polysilicon and wafers

  Although FBR technology is expected to gain further market share and provide lower cost polysilicon, the transition to FBR granular polysilicon is expected to take a further 10 years before accounting for over 40% of the market.   The latest ITRPV notes that polysilicon producers do not expect material quality reductions tp lead to any significant cost reductions and therefore PV-grade polysilicon of between 8N and 9N purity levels will remain as the standard for polysilicon supply.   Emphasis is therefore being placed on reducing wafer costs, which include a transition to larger ingots, diamond wire cutting and thinner wafers. Further improvements in recycling at the wafering stage were also said to be needed. 

Silicon wafers account for approximately 57% of the current solar cell price, according to the report.   Although diamond wire reduces kerf loss, further cost reductions are required, which should see the development of using smaller diamond sizes to enable thinner wafers and further kerf loss reductions.   Yet over the last few years little has been achieved in wafer thickness reduction, with the majority of the industry sticking with wafer thicknesses of 200 microns to 180 microns.   Wafer thickness reductions are expected but pace of development for conventional modules is slow. The interesting aspect is what is characterised by ‘alternative module technology', which opens the door to a rapid wafer thickness reduction.   Although the ITRPV doesn’t explain what these alternative module technologies are, it falls into the field of wafer cleaving such as GT Advanced Technologies ‘Hyperion’ tool which is expected to enable wafer thickness in the sub 50 micron range. Recommended Read: Guidelines and Steps Involved in MW- Scale Solar Installation   The ITRPV indicates that alternative module technology could enable the use of wafers as thin as around 25 microns by 2024, with significant thickness reductions starting in the 2016 to 2018 timeframe.   Emphasis is also placed on consumables such as crucibles, graphite parts, slurry and sawing wires that have a cost/price reduction potential of between 5% and 10% per year. However, diamond wiring pricing would need to reach 25% of 2013 price levels by 2023 to achieve the expected annual savings, according to the ITRPV.  

Solar cells

  Not surprisingly, metallization pastes/inks containing silver (Ag) and aluminium (Al) remain the most process-critical and expensive materials used in current solar cell processing with the ITRPV continuing to push for lower paste consumption as the price of silver is expected to remain relatively high.

The good news is that metallization paste reductions have increased substantially with the ITRPV noting only 100mg of paste is actually deposited on cells today. The key reason for this has been the introduction of new pastes as fine-line printing.   However, the migration away from silver to copper has been delayed due to the lack of progress in screen printing and lack of improvements in reliability and adhesion. As previously stated in the fourth edition of the roadmap, the introduction of copper into mass production is not expected to start before 2018.     SECI has changed its address!!!   With effect from 15th March 2014, the new official address of SECI is changed  to as below:   Solar Energy Corporation of India
(A Govt. of India Enterprise)
D-3, A Wing, 1st Floor
District Centre, Saket, New Delhi-110017
Email: corporate@seci.gov.in
Phone Number: 011-71989200        Cerc estimate of cost of Solar power plants falls by 25% The preliminary/pre-operating expenses include transportation of equipment, storage of
equipment at site, insurance, contingency, taxes and duties, IDC and finance charges etc.
Detailed breakup of Preliminary and Pre-operative expenses and financing cost, lump sum in
percentage of total capital cost is proposed as under:
i. Insurance Cost: 0.5%
ii. Contingency: 0.5%
iii. Interest during Construction (IDC): 5%
iv. Financing cost: 1%
v. Project management cost: 1%
vi. Pre-operative Cost: 1.0%

Preliminary/Pre-operating expenses and Financing Cost contribute to around 10% of total
capital cost on average basis. Accordingly, Rs. 60.00 Lakh/MW is proposed to be considered as
preliminary /Pre-operating expenses and Financing cost.
The Table 3 below presents the breakup of benchmark capital cost norm for Solar PV projects
for the FY 2014-15:
Table 3: Breakup for Capital cost projection
Sr.
No.
Particulars

Capital Cost
Norm for Solar
PV project
(Rs. Lakh/MW)

% of
total
cost
1 PV Modules 334.00 55%
2 Land Cost 018.00 3%
3 Civil and General Works 050.00 8%
4 Mounting Structures 040.00 7%
5 Power Conditioning Unit 050.00 8%
6 Evacuation Cost up to Inter-connection Point
(Cables and Transformers)
060.00 10%
7 Preliminary and Pre-Operative Expenses
including IDC and contingency
060.00 10%
8 Total Capital Cost 612.00 100% 

3. Capital Cost of Solar Photovoltaic projects
The CERC has determined Solar PV Tariff for the Year 2013-14 at ` 8.75 (without AD benefit)
and ` 7.87 (with AD benefit). The Solar photovoltaic projects are allocated, through
competitive bidding, under JNNSM and as well as under the State specific Solar Policies at the
tariff rate quite lower than the above referred CERC determined tariff . The lowest bids quoted
under different solar programme are shown in Table 4 as under:
Table 4: Lowest Bid prices in various solar programme
Sr.
No.
Solar Programme Lowest bid
1 Batch II, Phase I 7.49
2 Karnataka Phase I 7.94
3 Madhya Pradesh 7.90
4 Tamil Nadu 5.97 with 5% escalation for first 10
years
5 Andhra Pradesh 6.49
6 Rajasthan 6.45
7 Punjab 7.67
8 Karnataka Phase II 5.51

Considering the above facts into consideration, the Commission proposes to consider total
cost of Solar Photo voltaic power projects for the FY2014-15 as ` 612.00 Lakh/MW as
benchmark project cost of Solar PV projects.   2.COST OF A 1 MW SOLAR POWER PLANT :ESTIMATE  
ITEM Rs (in lakhs)  
Supply, Installation, Erection & Commissioning of Modules  370 (REC orEquivalent)
Module Mounting Structure and associated civil works 80
Installation, Erection & Commissioning of Inverters  60 (AEG or Equivalent)
Cables and associated civil works 40
Testing & Commissioning of Transformer 18
H. T. Panel and associated civil works 15
Meters with C.T. & P.T., Isolators, four pole structure & related evacuation system with switchyard lighting and civil works 18
SCADA, Weather station, Earthing & Lighting Protection 25
ACDB, DCDB, Batteries with Chargers, Control Panel etc. 08
String Combiner Boxes 12
Inverter & Control room, Boundary wall work, approach road with water tank 30
Insurance 09
Engineering & Men Power & Out of Pocket Expenses 15
Miscellaneous  
 Total                                                                       700 lakhs (7.00 Crores)  
Mounting Structurers (with tracking - Single Axis)                 80
Mounting Structurers (with tracking - Dual Axis)                 140
   
 Its a known fact that single axis and dual axis tracking technologies provide more than 15% additional generated power. However technical experts choose to operate without both single axis and dual axis tracking systems, simply to avoid any moving part in the plant. They want to avoid the risk of a breakdown ever.
Even CERC has estimated the cost of a solar power plant without taking tracking systems. There are some newer Tracking systems which claim lower costs and higher efficiencies. Costing less than 10 % of the project cost and providing more than 25 % efficiency. These seem pretty good to go.

Here’s aa breakup of the costs for Solar PV projects as recommended by CERC:  
SNO Particulars Capital Cost Norm for Solar PV project (Rs.Lakh/MW) % of total cost
1 PV Modules 344.50 43%
2 Land Cost 16.80 2%
3 Civil and General Works 94.50 12%
4 Mounting Structures 105.00 13%
5 Power Conditioning Unit 60.00 7%
6 Evacuation Cost up to Interconnection point (Cables and Transformers) 105.00 13%
7 Preliminary and Pre-Operative Expenses including IDC and contingency 80.00 10%
  Total Capital Cost 805.80 100%  
    COST OF 1MW WITH CNPV/ CSUN  
ITEM Rs (in lakhs)  
Supply, Installation, Erection & Commissioning of Modules 330
Module Mounting Structure and associated civil works 80
Installation, Erection & Commissioning of Inverters  60 (BONFIGLIOLI or Equivalent)
Cables and associated civil works 35
Testing & Commissioning of Transformer 18
H. T. Panel and associated civil works 15
Meters with C.T. & P.T., Isolators, four pole structure & related evacuation system with switchyard lighting and civil works 15
SCADA, Weather station, Earthing & Lighting Protection 20
ACDB, DCDB, Batteries with Chargers, Control Panel etc. 08
String Combiner Boxes 10
Inverter & Control room, Boundary wall work, approach road with water tank 35
Insurance 09
Engineering & Men Power & Out of Pocket Expenses 15
Miscellaneous    
   Total                                                                        650 lakhs  (6.50 Crores)     
WHAT IS THE REAL CAPITAL COST OF A SOLAR PV PLANT?(BY EAI NARSI)SOURCE You might say I should not be asking this question, rather, I should be telling you the answer. I agree and disagree. Yes, I have the basic data of the component costs for a solar PV power plants – the panel cost, the balance of system cost, land costs, installation & evacuation costs. But, you know what, it is not quite as easy. There is significant variability in practically all the  cost components Panels – could be thin film or crystalline (not to mention CPV), and could be made in India, or imported from high-quality, high cost countries such as Germany, or from our nice neighbor China at dirt cheap prices (with questionable quality of course)

Balance of systems – well, this is relatively predictable with precision, but not in absolute. It capital cost depends on whether you wish to use trackers or not, for instance. The cost of inverters can vary a lot as well, based on the brand. Thankfully here, many of the other commoditized components, cables, transformers etc., can be estimated with a fair degree of precision Land cost – Is it 3 lakhs per acre or 10 lakhs per acre. Depends on where you put it up, doesn’t it? Installation costs – EPCs come in many varieties, and so do their costs. Is it 5% of project cost or 7%? 2% is a lot of money when you are talking about project costs upwards of 100 crores. I am sure you get it. Taking low-end estimates for each of the above gives me the following number (all costs per MW)
  • Panels – Rs 3 crores (thin film, 60 cents per W)
  • Balance of system – Rs 4 crores
  • Land cost – 0.12 crores (3 lakhs per acre)
  • Installation cost & evacuation – 0.35 crores approx (5% of total cost)
The total comes to approximately 7.5 crores Now, zip to the high end (all costs per MW)
  • Panels – Rs 4 crores (crystalline, 80 cents per W)
  • Balance of system – Rs 5 crores (super quality inverters and trackers)
  • Land cost – 0.4 crores
  • Installation cost & evacuation – 0.65 crores (7% of total cost)
The total comes to approximately 10 crores Now, this is the band most of us have been talking about – Rs 7.5-10 crores. Of course, there are folks talking about sub-7 crores as well, and I would like to hear from them too how they arrived at those numbers.            

COST OF A 1MW SOLAR PLANT WITH TIER2 PANELS & PRACTISES     
ITEM Rs (in lakhs)  
Supply, Installation, Erection & Commissioning of Modules 300
Module Mounting Structure and associated civil works 90
Installation, Erection & Commissioning of Inverters  55
Cables and associated civil works 35
Testing & Commissioning of Transformer 18
H. T. Panel and associated civil works 10
Meters with C.T. & P.T., Isolators, four pole structure & related evacuation sistem with switchyard lighting and civil works 18
SCADA, Weather station, Earthing & Lighting Protection 15
ACDB, DCDB, Batteries with Chargers, Control Panel etc. 08
String Combiner Boxes 12
Inverter & Control room, Boundary wall work, approach road with water tank 30
Insurance 09
Engineering & Men Power & Out of Pocket Expenses 15
Miscellaneous    
Total                                                                        615 lakhs (6.15 Crores)   
This is avoidable  , solar power generation is a profitable project. with an investment of Rs.2 Crores one can earn upto 40 crores and more in the ensuing 25 years, so its better to go with tier 1 panels, BOS and practises. Look for EPCs that use best brands. Best practices. With proven performances. Not just the best price. 
Accelerated Depreciation of 80 % of the capital to companies with tax liability REC route ideal for Companies with high tax liability, with AD benefit Promoter’s equity approx Rs 2 cr/ MW Detailed Project report cost included in the project cost Bank loan can be 70%, with collateral security from promoter Project viable even with own capital without bank loan It takes 6 months to complete a project As per REC route Rs 12.60/ unit (discom2.60, rec9.30) can be realised   , REC price range of Rs9.30-13.40 will be valid till 2017 march. Post 2017 march the price band will be announced by mnre .It is likely to be low to very low approx Rs 2-3. 1 MW can generate approx 1.5- 1.7million units per year    Govt selling price of electricity to go up to Rs 13 to Rs 14 per unitThe Hindu Judgement of Rajasthan High Court on RPO REC asking Vedanta for failing to meet RPO      
    COMPANIES AND INDIVIDUALS INTERSTED IN SETTING UP A SOLAR POWER PLANT ,  email  mano@eai.in  call MANOHAR   1 425 256 2984   ( presently in usa till  sep 15, 2014)     Solar energy BUSINESS OPPORTUNITIES  in:-

  RAJASTHAN     ANDHRA PRADESH    MADHYA PRADESH  UTTAR PRADESH   ODISSHA   WEST BENGAL    PUNJAB    HARYANA   KARNATAKA   MAHARASHTRA       GUJARAT       BIHAR  =========================================================================  

Read more news items on: Solar Energy

Add to My Greenfolio

Like Leave a comment (5)



5 Comments

  • CAMANASARORA
    CAMANASARORA -

    If any one Interested in setting up a Solar Power Project in India. May Kindly e-mail or call at 91-9034179170.

    Full Project Consultancy will be given.

    We are Professional Consultants.

    Regards
    Manas
    ca.manasarora@gmail.com Like

  • pkishor
    pkishor -

    I want an estimation of 1 megawatt solar plant, detailed report of products, expenses. I want to know the estimated profit and loss ac for the future 10 years and bank loan details if it is within 10, its good to start to us
    P.kishor123@yahoo.com Like

  • Sunanda
    Sunanda -

    Dear Sir , I am sending some of the information about my company and its services. Skystar ) an End-to-End Solar Solution Provider and One Stop Shop for all kind of Solar Photovoltaic applications. skystar has evolved as Leading Solar EPC Player in India, headquarters in talcher, ODISHA, India and provides turnkey solutions for Solar Power Projects. we are enabled by a rich network of industry experts, government officials, investors, financing institutions and other such key stakeholders in the Indian and international solar market. Our expertise and research is strengthened knowledge resources such as price indices, project & stakeholder databases and a document library. For Minimizing the risk of project developer we follow below process strictly. SITE SELECTION( Site Identification and Project Pre-Feasibilities)----------------->BIDDING PROECESS/PROJECT ALLOTMENT/PPA------ -------->PROJECT DEVELOPMENT APPROVELS AND CLEARANCE -------------> FINANCING AND FUNDING ----------------------> PROJECT CONSTRUCTION AND COMMISSIONING ---------------------------> OPERATION AND MAINTANENCE NOW WE ARE ALL READY WORKING IN PRIVATE THIRD PARTY WHICH RATE ON PPA IS 10/- PER WATT Some of Our Key Services . 1) Funding and Financial Services-- Shree Sai Non- Conventional Energy pvt Ltd facilitates financing of solar power projects, mainly through international financing institutions and funds , specialized government agencies in power sector,NBFC and Banks. We help Indian project developers understand the requirements and criteria of international financing institutions, and provide easy access. Our role in the financing landscape includes Indian /international financing, project due diligence, debt syndication advisory and financial structuring. Shree Sai Non-Conventional Energy Pvt Ltd can help facilitate financing with most of the prominent lenders to the sector. These prominent sources for debt financing of solar projects are: Indian commercial banks • SBI, Axis Bank, Yes Bank, ICICI Non-banking financial companies • Infrastructure funds - SBI Macquarie, IL&FS; and Taurus Infrastructure Fund. • Dedicated power sector financing - Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) • Investment banks – L&T; Finance, SBI CAPITAL MARKETS, Bank of America, Barclays Capital, BNP Paribas, Lazzard and Credit Suisse. Export credit agencies/Investment insurance agencies • US EXIM Bank, Euler Hermes Kreditversicherungs-AG (Germany), China Export & Credit Insurance Corporation (China), Nippon Export and Investment Insurance (Japan) Development finance institutions • Asian Development Bank (ADB), the International Finance Corporation (IFC), Overseas Private Investment Corporation (OPIC), Germany’s KfW & DEG and the Indian Renewable Energy Development Agency (IREDA) Note-1) We can assist for Upto 75% funding of total project cost. 2) We can assist for non-recourse(Without any collateral however plant equipments and land will be considered collateral) funding. Sectors Financed • Small Hydro Generation • Wind Generation • Bio-Energy including Co-generation • Solar Energy (Solar PV and Solar Thermal) • New & Emerging Technology, as defined by MNRE • Energy Efficiency & Energy Conservation 2)Turnkey Project Consultancy- Shree Sai Non Conventional Energy Pvt Ltd 's turnkey services cut across the mezannines of complex front-end engineering design, construction, installation and commissioning to long-term operations and maintenance. 1) Providing options for different lands in different states./Site Selection The first task towards project development is the identification of a suitable site. We identify a site and check its availability with the local Patwari (Clerk level officer at state revenue department) we make sure there should not be litigation or any other issues in those lands( As you are interested in Teleangana Below are some options ). 2) Site and Project Assessment When most people think of site assessment, they tend to look at obvious things such as average solar insolation for the region and local site conditions. While it is true that solar can be developed anywhere, utility-scale solar projects make more sense in areas such as a desert where the land is relatively inexpensive and the solar resource is stronger and usually more available. There is more to choosing a proper site than simply finding cheap land in the desert with good solar insolation levels, however. Developers also need to consider local infrastructure availability and capacity. Solar power plants can be built relatively close to substations with access to transmission lines with available capacity. Siting power plants close to the load or consumer reduces losses associated with long-distance transmission. This flexibility is an advantage over other renewable energy technologies. As with any project, it is crucial to consider environmental and community concerns. Environmental groups have tied up more than one power project with costly legal battles. And local residents, while supportive of solar in general, may have concerns about the appearance of a field of solar modules within their view. Before final site selection, it is important to conduct environmental studies and investigate community concerns so the project is not blocked before it even begins. 3) Project Registration- It is mandatory for the project developer to register the project with the State Nodal Agency ( SNA ). A registration number is provided to the developer and a non-refundable registration fee plus service tax is charged This is important from the developer’s perspective as only when the projects have been registered with SNA, can the agency provide any assistance to the developers with issues such as land identification, blocking, grid interconnection and other clearances from various other departments. Following details are to be submitted along with application for registration to SNA ; • A certified copy of the Memorandum & Article of Association of the Company. • Certified copy of the registration certificate. • Certified copy of the partnership deed. • Certified copy of the Authority conferring powers on the person(s) who are competent to execute the MOU/the agreement with DISCOM/ NVVN / IREDA . • Pre-feasibility Report/Detailed Project Report • Annual Audited accounts of the Company for last three years and for the current year un-audited, if available. • Certificate from the Chartered Account showing the "Net Worth" of the Company. 3) In Principal approval Grid Connection We send letter to SEB for obtaining an ‘In-Principle’ approval for grid interconnection. We send all the details of land, maps and tentative interconnection arrangement designs/drawings. 4) Bidding Process /Project Allotment- 5) Project Development, Approvals and Clearance 6) Design and optimization Once the site has been selected, design and optimization of the solar plant can begin. Things can get complicated as developers try to strike a balance between first costs, Total Operating Costs (TOC) and Levelized Cost of Energy (LCOE) . Here are three ways decisions made during the design phase can affect first costs, TOC and LCOE. 7)Product design 8) Product Selection. 9)System optimization 10)Procurement Solar projects can be complex, and funding sources fickle. It is important for developers to complete the solar project while funding is still available and to assure investors the project will operate as planned. Therefore, developers must select suppliers that can deliver as promised. Here are a few things to think about when selecting a supplier, whether it’s an equipment supplier or an engineering, procurement and construction (EPC) firm: • What is their experience in the market? Do they have the references to support their claims? • What is the supplier’s relationship and experience with utilities and off takers of power to ensure grid integration is successful and efficient? • What is the financial strength of the EPC? How deep is their balance sheet and do they have the financial strength to deliver even in tough times? • Are their products designed for the harsh solar environment? Sand, wind, dust, salt and other elements can wreak havoc on sensitive equipment. • Could supply disruptions and shortages cause problems, or does the supplier have the capacity to minimize these? • What are their testing procedures? Do they test equipment before it reaches your site? While few suppliers provide 100% of the solar solution, developers do well to minimize the number of suppliers they work with to reduce the number of moving parts in any solar project. 11)Installation and commissioning Installing and commissioning a solar plant is different from other types of power plants, with each particular type of solar having its own challenges. One commonality is that solar plants contain a large number of components. When installing in harsh environments, special care needs to be given to the handling of these components so they are not damaged during the process. In addition, shipping and delivery of these components need to be coordinated so they are available when needed. If they arrive too early in the process, the risk of damage increases as they can be exposed to the elements while awaiting installation. We ensure all contractors working on the job are solar-trained. It helps to ensure the vendor in charge of the project has extensive solar project management experience and that project managers are well-versed in managing solar projects. 12)Maintenance Solar PV power is faster to deploy than other types of power plants, but the average PPA of a PV plant is 20 to 25 years based on the design life of a solar module. This means the solar developer has a shorter window of time in which to achieve and maximize profitability of the plant. To maximize profitability of the solar plant,We think about three things: -Maximizing uptime; -Maximizing output and revenue -Extending the life of the plant Asset maintenance – Asset maintenance is a discipline that can help maximize uptime and extend the life of the plant. A key component of asset maintenance is asset monitoring to predict potential failure. For example, ABB offers TEC MonitoringTM, an online power transformer monitoring service that detects gassing and other signs of potential transformer failure. In addition to asset condition monitoring, asset maintenance helps ensure regularly scheduled preventive maintenance. ABB has found utilities that have deployed its Ventyx Asset Management applications can reduce downtime by 20% while reducing maintenance costs by 30%. In-field servicing – Technology that allows in-field servicing can also improve uptime. Using the example of power transformers, again, the challenge in transporting these large machines can make them costly to repair. In-field services, such as oil reclamation and low frequency heating to dry the insulation can decrease downtime, cut costs and extend the life of the equipment. Component selection – The equipment you choose plays a significant role in maximizing uptime. When selecting components, ask about ratings such as Mean Time to Repair (MTTR). Of course, requiring less maintenance is a great way to improve uptime. In addition, suppliers who manufacture and stock components that don’t have to be shipped overseas can decrease downtime significantly. Innovations such as the extended range instrument transformer can be used as a universal spare, decreasing downtime while lowering inventory costs of components on hand. Customer enablement Solar energy, at least at this stage of its development, is not a primary energy source for most consumers. However, one of the industry’s keys to success is to enable consumers to choose solar over other sources. Demand Response is a technology that helps utilities encourage the use of solar power. OTHER SERVICES 1)O&M; 2) Merger and aquisition- The world over, solar energy projects are seen as a highly rated asset class, with transparent and constant yield projections over the next 25 years and very few external dependencies and operational expenses. India has seen rapid creation of solar energy assets over the past 3 years from 20 MW in 2009 to 2000 MW presently. Many of these assets will prove to be worthy of high-performing investment portfolios. Shree Sai Non-Conventional Energy Pvt Ltd has been in the centre of the market for the last 2 years, working with project developers, EPC contractors, suppliers, off-takers and policy-makers. We understand the technology, policies and people involved in the projects thoroughly. Our growing expertise in the Indian solar energy market puts us in an advantageous position to advise the stakeholders throughout the life-cycle of any deal. Buyers need to know what they are buying, and we can provide the due diligence to help you identify key value sources and separate what is important from what is not. We understand the points of risk inherent to a solar energy project and can help the buyers assess the targets in accordance with their own criteria. Shree Sai Non Conventional Energy Pvt Ltd provides the following transaction services for M&A; of solar projects in India: • Intelligence and networking • Identification of target projects • Creation of asset pools • Creation of investor pools • Coordination of non-binding offers • Coordination of independent third-party legal assistance • Coordination of independent third-party valuation • Coordination of independent third-party technical due-diligence • Assistance with negotiation and closure • Deal structuring • Assistance in FDI transactions Shree Sai Non Conventional Energy Pvt Ltd an extensive network of developers in India and maintains a project database to track each project and its performance. This gives us a unique advantage in the mergers and acquisition space. Our expertise in understanding the business and financial aspects acts as a differentiator in terms of meeting the returns expectations of the buyer and the seller. We work closely with technical experts and law firms to select technically sound projects and hence, are able to structure the deals in an optimum way. We will be with you through out the Project to oversee smooth completion in a very transparent way. I will send you some more information including cost and other discription shortly. If you have any further questions please feel free to contact us. Thanks and Regards Sunanda kumar saml Project Consultant 09777108949 Like

  • CAMANASARORA
    CAMANASARORA -

    For Financial Closure of the Solar Power Projects of any capacity at the Cheapest Interest Rate all over India

    or

    For any takeover of Existing Loan at Higher Interest Rates to Lower Interest Rates of commissioned Solar Power Plants or to be commissioned plants, contact us at mda@ucagroup.in or call us at 9034179170.

    Regards
    Manas
    http://www.ucagroup.in Like

  • Sunanda
    Sunanda -

    HELLO EVERYONE WE HAVE PROPOSAL FOR 1 MW SOLAR POWER PLANT IN KOLKATA SO IF U HAVE STRONG MENTAL TO SET UP THEN PLZ CONTACT WITH ME - 919777108949,MAIL-SUNANDA.SAMAL2013@GMAIL.COM Like

Leave a Comment



Solar FAQs
How to Choose the Best Solar Panel?
What are the Financing Options Available for MW Solar Plants in India?
Top 5 States for Solar Energy Investments in India
IKeen on Solar Business? Make Sure You Read This
I Wish to Do Business in the Solar Energy Sector. Which is the Best Biz Opportunity?
Costs for Small MW-Scale Grid Connected Power Plants in India ?
Indian Banks and their Lending for the Solar Sector>
Click Here to View the Complete List of Questions Answered