India Solar PV Power Plant Report - JNNSM, DOR, Costs, Returns, RoI, IRR, Payback

India Solar PV Power Plant Report - JNNSM, DOR, Costs, Returns, RoI, IRR, Payback

Key Take-aways from the India Solar PV Advisor

• By 2050, about 69% of the electricity produced in India will come from renewable energy sources.
• The top five states in India for solar PV potential are respectively Gujarat, Rajasthan, Maharashtra, Tamil Nadu and Andhra Pradesh
• Under the Jawaharlal Nehru National Solar Mission (JNNSM), India is expected to reach a total solar installed capacity (both PV and CSP) of 20,000 MW and a total electricity generation of 25-30 TWh per year by 2022.
• The JNNSM has proposed a feed in tariff rate of Rs 15.39 during the batch II of phase I for solar PV power plants with a power purchase agreement for 20 years. Selection of projects is likely to happen through reverse bidding.
• JNNSM is not likely to continue the scheme of project allotment by bidding in the subsequent phase 2013-2017 and 2017-2022. MNRE is likely to promote solar projects by REC and RPO implementations rather than the PPA route.
• Following JNNSM, a few states like Gujarat, Rajasthan and Karnataka have come up with their own state policy to promote solar power production. A few more states like Tamil Nadu, Maharashtra and Andhra Pradesh are in the process of deliberations and may soon draft a policy.
• Currently, the capital cost for a solar PV power plant with multi crystalline silicon technology is about Rs 11 to Rs 12 crores per MW, with about 50% of it going towards solar panels, 25% towards inverters and balance of systems, and final 25% towards installation and other infrastructure. The cost of power plant with the use of thin films however could be as low as Rs. 10 to 11 crores
• Capital cost for solar PV power plants with crystalline silicon is likely to be about Rs 10 crores per MW by end 2013 when phase II of the mission is implemented.
• A 1MW solar PV power plant can generate about 1.4-1.6 million units (kWh) of electricity per year depending on the location.
• The area requirement for a 1 MW power plant that uses crystalline silicon technology would be approximately 5 acres. This could be on the higher side in case of thin film usage in the power plant.
• The levelized cost of electricity production from solar PV is Rs 8-10/kWh.
• Prominent domestic banks that fund renewable projects are IDBI, ICICI, IFCI, SBI, and PNB among others.
• According to MNRE, the cost of power generation from solar PV is likely to be competitive with grid tariff by 2017 (“grid parity”).
• Off grid PV installations in India predominantly comprise of small capacity applications. These are most visibly seen in lighting applications (street lighting, and home lightning systems) in cities and towns, and in small electrification systems and solar lanterns in rural areas.
• On the technology part, in India, crystalline silicon technology to accounts for most of the market, and currently, the market share of thin film technology, though fast increasing, is estimated at only about 10%.
• Currently, thin film technology has not reached the efficiency level of crystalline solar cells and is unlikely to be used for large-scale power production until 2012.
• Currently, India does not have any infrastructure for raw material production (polysilicon) and is entirely dependent on imports for the same.
• India has always been a net exporter of solar PV technology, with about 66% of cumulative domestic PV production till 2009 catering to overseas markets
• Business opportunities in the solar PV industry go far beyond power plants; these opportunities are present in all three sectors: manufacturing, trading and services. Among these, the largest number of opportunities are present in the manufacturing segment, followed by services.