Challenges and Issues in Solar RPO Compliance /RECs

24 July 2012

New Delhi

Solar Power in Rajasthan

A presentation by

B.K Makhija

Director (Technical) Rajasthan Renewable Energy Cor. Ltd. Jaipur

CONTENTS
1. Rajasthan: A leader in solar development in India

2.
3. 4. 5. 6.

Solar Power potential in Rajasthan

Robust regulatory framework Progressive Solar Energy Policy 2011 Targets under the Rajasthan Policy Facilities & Incentives

7.
8.

Solar Park development

Rajasthan as Solar Hub: Expected achievements

Rajasthan: A Leader in Solar Development in India

Strategic location and favourable geographical conditions makes Rajasthan best destination for Solar development.
Punjab

Largest State

of India

Area
One of

3,42,269 km2

the best solar radiation in the world 6 -7 kWh/m2/ day

Haryana Delhi
Rajasthan Uttar Pradesh

Solar radiation Maximum sunny

days in an year 325

Gujarat

Madhya Pradesh

Greater than Abundant

underutilized flat land 208,110 Km2 60% of total

Around

area

Solar Power Potential in Rajasthan

Total desert area 208,110 sq.kms 15,000 sq. kms can produce 300,000 MW DNI: 2200 kWh/sq.m /yr Yearly Average DNI: 5.78 kWh/sqm/day

Robust Regulatory Framework

Supply side Pricing and taxation Electricity Act National National Electricity Policy National Tariff Policy Integrated Energy Policy
Special Incentive Package Scheme (SIPS)

Demand side Energy Conservation Act

Jawaharlal Nehru National Solar Mission (November 2009)

JNNSM Guidelines

CERC Tariff Regulation

Rajasthan Industrial & Investment Promotion Policy State Rajasthan Investment Promotion Scheme
Rajasthan Solar Energy Policy, 2011

RERC Tariff and RPO/SPO

Progressive Solar Energy Policy 2011

Issued in April 2011 Objective of the policy: Develop as Global Solar Power Hub: In next 10-12 years Productive use of desert land Creation of employment opportunities (Direct & indirect) Establishing of manufacturing base Creation of Solar Park (s) Strategy of the policy: Leveraging maximum benefit from policies of NSM Develop Solar Power Plants Meeting RPO of Rajasthan Meeting RPO of other States Direct sale through Open Access Through NSM mechanism Through REC (Solar) mechanism

Available at www.rrecl.com

Targets under Raj. Policy

Targets Under NSM Solar Project Scenario in Rajasthan NSM Phase -I (GOI)
Under Utility Grid Power including Rooftop (MW)

1100 4000 20000 200

Allocation of 1100 MW completed by GoI Project allocated to Raj. - 873 MW (80%). Projects Commissioned - 147 MW.

NSM Targets (2022)

Development of Solar Power - 20 GW

Expected Solar Power - 50 GW

Off Grid Installations (MW)

1000

KPMG Projection (2022)

2000
7

GRID PARITY

Expected by 2017.

Huge market in Rajasthan

Solar Collectors (Mn Sq.m)

15
20 FY 13 FY 17 FY 22

More than 20 GW Solar PV & Solar thermal expected by 2022. Huge potential for development of manufacturing of Solar Equipments.

Achievements under Raj. Policy

Solar Project Scenario in Rajasthan

Scheme GBI of MNRE NSM

Migration Phase-1 PV (Batch-I) Thermal PV (Batch-II) RPSSGP Open Access Tail End REC Mechanism Total

Capacity allotted (MW) 8

66 100 400 295 12 40 1 16.25 938.25

Commissioned (MW) 8
37.5 100 0 0 12 40 1 2.5 201

Targets under Raj. Policy

For Promotion of Manufacturing in the State
To establish 500 MW per annum

manufacturing capacity by 2013.

Solar PV

Must

involve manufacturing of CELL and modules from wafer stage.

has earmarked 500 acre land for Solar Manufacturing units near Neemrana. package for promotion of manufacturing is under consideration

Capacity allocation for promotion of manufacturing (5.1.9)

RIICO

200

Special

Selection

through competitive bidding

process.

Targets under Raj. Policy

Sale of Power to Discom
Phase - I (Raj. Policy)

Grid Connected Power Plant

RPO requirement fulfilled from NSM allocation. Solar Policy phase - 1 (upto 2013) 350 MW Solar Power plants under various schemes of Raj. Solar Policy. 350 MW Solar Power will be procured by Discom over & above RPO. Selection through Tariff based competitive bidding process.

100 50 50 200
Solar PV

100 50

Bundling of Solar Power (5.1.3) Rooftop and Small scale power plant (5.1.7) Phase - II (Raj. Policy)

200
Solar Thermal

Solar Policy phase - 2 (2013 - 17)

Phase - 2 targets: (2013-17) 400 MW.

Targets under the policy

For meeting RPO of other States - REC(Solar) Mechanism& Open Access
RPO obligation:
Mandates a State to purchase a minimum level of renewable energy
Issuance: The National Load Dispatch Centre (NLDC) would issue RECs to renewable energy generators. Pricing: The REC component will be priced on a notional basis and electricity component will be linked to the normative renewable energy tariff. One REC is 1000 kWh of electricity feeded to grid. Trading: RECs can be traded on power exchanges approved by the Central Electricity Regulatory Commission (CERC).

Resource deficit state to purchase REC

Most States notified RPOs REC mechanism: Launched in November 2010
To promote renewable energy development To meet their Renewable Purchase. Obligation (RPO) targets

Redemption: An REC can be redeemed by presenting it to NLDC for redemption or on expiry of its shelf life (one year from the date of generation of the corresponding unit). For meeting RPO of other States: (i) REC Mechanism : Projects approved - 16 MW (ii) Open Access : Projects approved - 40 MW

CERC Regulation, 2010

Approved procedure for implementation
Sr. No 1 2 3 Year 2011-2012 2012-2013 2013-2014 Wind 4.50 5.10 5.70

Obligation expressed as % of Energy Consumption (Order 24th May 2011) Biomass 1.00 1.25 1.50 Solar 0.50 0.75 1.00 Total 6.00 7.10 8.20

Facilities
Land bank for Solar Power Plant Allotment of Government Land @ 10% of market rate Purchase of private land allowed in excess of ceiling limit Conversion to industrial use @ 10% of charges leviable for other industries 58 cusec from IGNP Canal for Solar power plants

Bikaner Jaisalmer Churu

Land & Water

Nagaur Jodhpur

Barmer Jalore

Evacuation system

Clear mandate for development of adequate infrastructure by STU Projects under execution: 29,00 Crores Creation of Rajasthan Renewable Energy Infrastructure Development Fund (RREIDF) for Transmission network, roads etc.

Transmission line from Plant to STU GSS

Sale Discom Other than Discom Projects GoR Policy NSM/Open Access/REC mechanism and other Scheme Responsibility STU

Developer

Single window

Ensure single point interface between investors and Government departments RRECL act as Nodal Agency

Incentives
Electricity duty Entry tax

Exemption of electricity duty: On electricity generated for captive use Exemption for entry tax on equipments required for solar project

VAT

Reduction in VAT on Solar Products form 14% to 4%

Customized Package
Tailored to the needs of individual investors

Exemption Stamp duty Land and power Land Tax

Extent 50% 50%

Period 7 years 7 years

Investments above US$100m and providing minimum employment for 200 people Potential of having high employment generation Projects with special importance for the State

Investment

Investment subsidy Employment subsidy

30% of the tax deposited 20% of the tax deposited

Employment

Solar Park development

Development of Solar park: Jodhpur:

First to be developed 10,000 hectare land at Bhadala, Jodhpur Potential Sites identified (16,000 hectare Government Land) Village Prewar and Chatrail

IGNP canal Connecting roads

Jaisalmer

GSS Station

Bikaner and Barmer: Advanced stage of planning Created Rajasthan Solar Development Company Limited (RSDP)

For development of park Formulate Policy and Rules for land allotment Selection and qualification of firms Grid connectivity and infrastructure plans Sharing of development cost by developers and Management of Solar park

Jodhpur Solar Park

Large availability of suitable land: Identified about 10,000 hectare of Government land at Bhadala, Jodhpur for manufacturing and generation.

Bhadla, Jodhpur
NH 15

Developed Master Plan for Phase I Completed - Survey and Soil Testing work of Phase I for 3,000 hectare Survey and Soil Testing work for 2nd phase (5,000 hectare) land underway Detailed Project Report under preparation by ADB consultants

Provision of common infrastructure for generation and manufacturing plants:

Water access: 58 cusecs of water reserved from Indira Gandhi Canal Project (IGNP) 3Kms from village Grid connection: 132/33 kV - Phalodi and 33/11 kV Bhadla (under construction) Close to NH 15

Rajasthan as Solar Hub: Expected achievements

Expected solar generation capacity development (MW)

20 GW

4.0 GW 1.5 GW 175 MW

March 2012 2013 2018 2022

Capacity development by 2013 Solar Power plants: 1.5 GW with an investment of INR 15,000 crores Manufacturing capacity: 500 MW per annum with an investment of INR 2,000 Cr. Capacity development by 2018 Solar Power plants: 4GW with an additional investment of INR 35,000 crores. Capacity development by 2022 Solar Power plants: 20 GW with an additional investment of INR 100,000 Cr. Development of large Solar parks Jodhpur, Jaisalmer, Bikaner & Barmer. Generation of large scale employment in desert area.

Thank You
For more details please visit us at www.rrecl.com & For any query please E-mail at rrec_jaipur@yahoo.co.in