Setting up a

150 MW Mega Solar PV

Plant at Gujarat Solar
Park, Charanka
Energy, Power and Allied
Services
Government of Gujarat

Contents
Project Concept

Market Potential

Growth Drivers

Gujarat Competitive Advantage

Project Information

- Location/ Size
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Players/ Machinery Suppliers
- Potential Collaboration Opportunities

- Key Considerations

Project Financials

12

Approvals & Incentives

13

Page 2

Project Concept
Charanka Solar Park: Brief Overview

Charanka

The Charanka Solar park is the largest site within the

Gujarat Solar Park, built on a 4,900-acre plot of land.
Gujarat Power Corporation Limited (GPCL) is the
Nodal Agency for the development of the Solar Park.
It is located near Charanka village, Santalpur Taluka,
Patan district, Gujarat
Latitude: 23 o52 55 N
Longitude: 71 o10 44 E
Project Area: 258.46 hectares
Total Solar Park area: 2500 hectares

What is a Solar Photovoltaic (PV) Project?

A Power system designed to supply usable solar power by means of photovoltaic modules that
convert light directly to electricity. The maximum power that can be generated by this project
(Nameplate capacity) is 150 Megawatts.

Setting up a Solar PV Project

Govt. of Gujarat has planned to set-up 500 MW Solar power project to meet its Renewable
Purchase Obligation (RPO). This 150 MW Power Plant is part of this RPO.
Coal-fired power plants account for 60.59% of the installed power capacity in Gujarat. While
Gujarat has hydrocarbon reserves such as lignite, crude oil and natural gas, its major fuel source
for generating power is coal. However, Gujarat has no coal reserves and has to depend on other
states and imports to meet its requirements.
The Solar Photovoltaic Project will require the installation of the following equipment:
Absorb
radiation from
the sun
Solar PV Modules
(Photovoltaic cells,
Mounting structures,
Cables, Solar tracker)

Convert Direct Current

Output of PV Module to
Alternating Current
Inverters

Sources:
http://www.dw.com/en/how-does-a-solar-power-plant-work/a-5073142
http://gpcl.gujarat.gov.in/showpage.aspx?contentid=15

Page 3

Step up the exportable

power converted by
Inverter
Sub-station (Transformers)

Deliver Electricity
to consumers
Grid

Set up by Gujarat Energy Transmission Corporation

(GETCO) at the Charanka Solar Park.

Market Potential and

Demand Supply
Thriving industries in near-by cities and special investment regions
is expected to increase electricity requirement
Many industrial cities such as Morbi, Ahmedabad,
Kandla and the upcoming Delhi Mumbai Industrial
Santalpur
Corridor are located in close vicinity to the park.
(~15 kms)
Morbi (~190 kms)
The Santalpur Special Investment Region, located
Ahmedabad
only 15 kms from the park boasts of various industries
(~230 kms)
such as Agri products processing, Cotton Ginning,
Pressing and Yarn Spinning.
Euro Multivision Ltd., a Special Economic Zone for
Non Conventional Energy Sectors, including Solar
Energy Equipment is also located close to the Solar
park.
Gujarat has an above average GSDP, which has been growing steadily. The Compounded
Annual Growth Rate (CAGR) of Gujarat SDPs is higher than that of Indias GDP. Favorable
Government policies, such as providing 24X7 power supply to all villages and push for Make in
India initiatives in the nearby industries will lead to massive energy demands.
Gujarats GSDP Trend (INR Tn)
Indias GDP Trend (INR Tn)
8.95
8.06
7.12
6.05
112.72 124.88
99.51
87.36
CAGR:
Euro Multivision
SEZ (~140 kms)

Charanka

13.9%

CAGR:
12.7%

FY 12

FY 13

FY 14

FY 12
FY 15
Source: MOSPI

FY 13

FY 14

FY 15

Total power consumption projection with the assumption of constant & Falling elasticity during
2014-2035 for two GDP growth scenarios along with the consequent Demand-Supply gap is
exhibited below:

Year

2020
2025
2030
2035
2020
2025
2030
2035

Consumption
Installed
(MU)
Capacity (MW)
Case: 8% GDP
107,044
37,089
147,150
50,611
201,361
66,700
274,477
87,416
Case: 10% GDP
118,491
37,886
175,144
54,581
257,706
76,160
377,720
105,933

Demand and supply gap

The requirement for power is projected to increase by 2035

from 68 bkwh in 2013 to 274 bkwh with 8% growth rate of
SGDP. With the higher growth rate of 10%, it will be 378
bkwh.

These imply that over 22 years power requirement would be

4 to 5.5 times as large.

Correspondingly capacity will be 3.20 times to 4.50 times as

large as the 27.27 GW of installed capacity that is required
to meet Gujarats requirement in 2013..

Source: Energy Statistics 2015

Source:
http://www.gidb.org/newsirs
http://mospi.nic.in/Mospi_New/site/inner.aspx?status=3&menu_id=87
http://mospi.nic.in/Mospi_New/upload/Energy_stats_2015_26mar15.pdf

Page 4

Growth Drivers
Reduction of PV component costs
Solar PV prices dropped significantly in the last three years primarily due to the rapid changes in
the global solar markets. It can be seen that the system price has dropped by 65 percent (152
Million INR/MW to 53 Million INR/MW) between 2010-11 and 2016-17.

Solar PV System costs trend (INR Million per MW)

152.0

144.2

CAGR:
-16.1%

97.8
78.8

2010-11

2011-12

2012-13

68.0

60.6

2013-14
2014-15
Source: CERC

53.0

2015-16

2016-17

Increased focus on sustainability due to increased import spending

on conventional fuels and depleting natural resources

India racked up one of the highest energy import bills of over $100 billion in 2012-13 and hence, a
long term renewable solution has become crucial.

Coal imports have been witnessing robust growth rates owing to greater demand from thermal
power plants and industries. Gujarat has no coal reserves and solely relies on imports. Its other
hydrocarbon resources such as Natural Gas and Crude oil resources have also been depleting.

Estimated Crude Oil reserves in Gujarat

(MMTA)
136.7

CAGR:
-1.2%

Estimated Natural Gas reserves in Gujarat

(MMTA)

78.2

77.5

CAGR:
-2.6%

73.0
135.0

Mar-13

Mar-14

Mar-12

Mar-13

Source: Ministry of Petroleum & Natural Gas

Source:
http://cleantechnica.com/2015/05/26/solar-pv-costs-to-fall-another-25-per-cent-in-three-years/

Page 5

Mar-14

72.2

Mar-15

Gujarat - Competitive
Advantage
High potential for solar power in Gujarat
Global Horizontal Irradiance - Annual Average

The Ministry of New and Renewable

Energy estimates the solar energy
potential for Gujarat at ~40,000 MW.
Gujarat receives one of the highest
amounts of Solar Radiation in India.
(range of 5.5 - 6 kilo Watt-hour per
square meter per day)
Gujarat has 2.60 million hectares of
barren and uncultivable land, making it a
hotspot of solar potential in India.
Gujarats percentage of Wasteland is
higher than the national average.

Gujarat

19.62

Barren &
Uncultivable
land
2.60

India

328.73

22.53

Solar Resource
(kWh/m2/Day)

Total
Area

Land Area (Million square km)

%
13.25
6.85

Source: Census 2011, Data in million hectares

Source: National Renewable Energy Laboratory (USA)

Proximity to non-conventional energy sector specific SEZ and other

ancillary industries

Euro Multivision Ltd., a Special Economic Zone for Non Conventional Energy Sectors, including
Solar Energy Equipment is also located about 140 kms from the Solar park. Euro Photovoltaic
India, which is a part of this SEZ manufactures Solar PV Cells and Modules.
Gujarat has a strong manufacturing and
MSME Registrations in Gujarat between 2006 and 2014
engineering base with the presence of Micro,
% of total
Industry
Number
Small and Medium Enterprises across the value
registrations
chain by manufacturing mounting structures
Basic Metal & Products
19,644
7.5
(made of galvanized steel or aluminum), cables
Electrical Machinery
5,907
2.3
(made of copper or aluminum) and other
Apparatus
electrical accessories required to set up a
Source: Industries Commissionerate, Gujarat
working PV system.

Solar tariffs in Gujarat are relatively high when compared to other

states

Solar tariffs in the country have reached an all time low of INR 4.35/kWh.

However, Gujarat is one of the few states that has a relatively high solar tariff. In 2015-16, the
Gujarat Electricity Regulatory Commission (GERC) has set the tariff at INR 7.04/kWh for
companies claiming Accelerated Depreciation (AD) and INR 6.35 for companies not availing AD.

Sources:
http://ic.gujarat.gov.in/?page_id=414
http://geda.gujarat.gov.in
http://www.nrel.gov/docs/fy12osti/51946.pdf

Page 6

Project Information
Site images

Source: Gujarat Power Corporation Limited

Location

The Solar Park is located in Charanka, a village in Northern Gujarat. It is ~120 km from the
district headquarters, Patan and ~220 km from the state capital, Gandhinagar.
The Charanka Solar Park is a well established solar park, with existing facilities such as:
Land: Cleaned, Levelled and divided into plots for allocation
Road connectivity to each plot of land
Flood mitigation measures like flood discharge, internal drainage etc.
Housing facility for basic manpower
Telecommunication, Street Lights Parking, Warehouses

Area

The Gujarat Solar park is spread across an area of 2178.83 hectares. The complete park is
owned by Gujarat Power Corporation Limited.
The proposed project area would be 258.46 hectares.
Currently, ~630 hectares of land (350 MW installed capacity) has been allotted to developers at
Charanka Solar Park.

Project schedule for a typical Solar PV Project

Milestone
Date of issue of administrative approval
Land acquisition and Financial Closure
Construction of Pooling Substation, Land Development and other
Common facilities as per DPR
Transmission line and Grid Connectivity
Final instalment on completion

Timelines
Zero Date
6 months from zero date
15 months from zero date
18 months from zero date
18 months from zero date

Source: Ministry of New and Renewable Energy

Source:
http://mnre.gov.in/file-manager/grid-solar/Scheme-for%20development-of-Solar-Park-&-Ultra-Mega-Solar-Power-Project-2014-2019.pdf

Page 7

Project Information
Utility
Water

Available for construction as well as running of

power plants and demineralization plant
Water imported from Kutch Branch Canal of
Sardar Sarovar Narmada Nigam Limited through
a dedicated raw water pipeline (32 km)
Creation of storage reservoir and rain water
harvesting on a large scale.

Power & Evacuation

GETCO has built a 220KV sub-station within

Solar Park, which is connected to Gujarat Grid.
For evacuating up to 1000MW, 220KV substation is being upgraded to 400KV.

Logistics & Connectivity

Rail

Closest railway station is ~40 kms away in

Santalpur town in Patan District (Western
Railway)

Road

Port

Air

~230 kms from international airport at

Ahmedabad

~160 kms from domestic airport at Kandla

The nearest National Highway is NH-15 at ~20

km

~160 kms from port at Kandla.

The Kandla port and Santalpur are well

connected by NH15 and broad gauge railway
line and hence movement of machinery and
equipment will be easy

Source:
http://mnre.gov.in/file-manager/UserFiles/presentationschallenges_and_issues_in_solar_RPO_compliance_24072012/Charanka%20Solar%20Park%20(Gujarat)_GEDA_24.07.2012.pdf

Page 8

Project Information
Existing Infrastructure/Facilities

Roads

Compound wall

Raw Water Pipeline

Entrance

Rehabilitation of existing nala

Security Towers

Rehabilitation of existing reservoir

Training Institute

Water Treatment Plant

Common facilities

Water Distribution Network

Helipad

Water Tank (GLSR/OHT)

Green belt / buffer

Sewage Treatment Plant

Water to meet the irrigation demand

400/220/66 KV & 66 KV Auxiliary SS

Landscaping

Auxiliary Power Distribution Network

Internal (plot)fencing

Telecom Network

Land levelling / Grading

Fencing (Boundary)

Raw Material required for setting up plant

Solar PV Cells/Panels: Electrical device that converts the energy of light into electricity

Mounting Structures: Used to fix solar panels on roofs, building facades, or the ground

Cables: Interconnect solar panels and other electrical components of a photovoltaic system,
designed to be UV resistant and weather resistant.

Solar tracker: Device that orients the solar panels towards the sum

Solar inverter: converts the variable direct current (DC) output of a photovoltaic (PV) solar
panel into a utility frequency alternating current (AC) that can be fed into a commercial electrical
grid

Estimated Manpower
Manpower Availability in Charanka

Skilled labor such as masons, carpenters, welders, bar

binders, fitters are required for setting up the Solar PV Plant.

Skilled labor are available at a daily wage ranging from INR

400 600; however, the daily wage set by the Government
does not exceed INR 300.

Manpower cost is around 12-15% of civil cost.

NonWorkers,
787,
64%

Main
Workers,
325,
26%

Source: Census 2011

Page 9

Marginal
Workers,
121,
10%

Project Information
Leading technology players/machine suppliers
Indian Solar PV Module Manufacturers

Tata Solar India

Foreign Companies

Trina Solar (China)

BHEL

Yingli Green Energy (China)

Central Electronics Limited

Suntech (China)

HHV Solar Technologies

Bosch (Germany)

XL Energy

Canadian Solar (Canada)

Moser Bear Photovoltaic

Mitsubishi Electric (Japan)

ICOMM Tele Limited

Panasonic (Japan)

Kotak Urja

REC (Norway)

Euro Photovoltaic

Leading players in the field

Indian Solar PV Power Projects

NTPC Ramagundam Solar Plant,

Telangana (20 MW)

Welspun Solar Project, Madhya Pradesh

(151 MW)

Sakri Solar Plant, Maharashtra (125 MW)

Global Solar PV Power Projects

Topaz Solar, USA (First Solar, 550MW)

Solar Star, USA (SunPower, 579 MW)

Longyangxia Dam Solar Park, China

(PowerChina, 850 MW)

Meuro Solar Park, Germany (Canadian

Solar, 166 MW)

Possible collaboration opportunities Gujarat Power Sector

Holding Company: Gujarat Urja Vikas Nigam Limited (GUVNL)

Generation: Gujarat State Electricity Corporation Limited (GSECL)

Transmission: Gujarat Transmission Corporation Limited (GETCO

Distribution: Paschim Gujarat VIJ Company Limited

Key Considerations

Environment

No negative impact of the project activity on the environment.

Using solar panels does not pollute the air unlike traditional forms of electrical generation
there is no release of carbon dioxide, nitrogen oxide, sulphur dioxide, or mercury into the
atmosphere.

Solar panels operate silently, have no moving parts, and don't release offensive smells

Source:
http://www.census2011.co.in/data/village/507372-radha-nesda-gujarat.html
http://www.gsecl.in
http://www.gseb.com/guvnl/index.aspx
http://www.getco.co.in/getco_new
http://www.pgvcl.com

Page 10

Project Information
Key Issues

Declining Solar tariffs

Solar tariffs fell below INR 5 per unit, due to aggressive bidding by global companies looking
to get a foothold in Indias high-growth renewable energy market (100% FDI permitted under
automatic route for renewable energy generation)
Tariff Trends in Solar Bids (Weighted Average Price - INR/kWh)

12.16

8.36

8.34

8.05

8.79

NSM Batch 1 NSM Batch 2

(Dec '10)
(Dec '11)

6.45

5.75

6.48
Orissa
Phase 1
(Mar '12)

Karnataka
Madhya
Tamil Nadu
(Apr '12) Pradesh (Jun (Mar '13)
'12)

Rajastan
(Mar '13)

5.36

4.63

Andhra
Madhya
Andhra
Pradesh (Oct Pradesh (Jun Pradesh
'14)
'15)
(Nov '15)

4.35

Rajasthan
(Jan '16)

Source: Ministry of New and Renewable Energy

Gujarat has a higher solar tariff when compared to the above bids. However, the solar tariffs
in the state have also been on a decreasing trend.

Tariff for projects availing Accelerated Depreciation

(AD) INR/kWh
CAGR:
-10.1%
9.70

9.02

2012-13

Page 11

2013-14

8.39

7.04

Tariff for projects not availing AD (INR/kWh)

CAGR:
-16.5%
10.92
10.15
9.44

6.35

2014-15 2015-16
2012-13 2013-14 2014-15 2015-16
Source: Gujarat Electricity Regulatory Commission

Project Financials
Estimated Project Cost and Means of Finance

Project cost: The estimated cost of setting up a 150 MW Solar Photovoltaic project is INR 7,950
million. The major expense area would be purchase of PV Modules.

Means of Finance: Majority of funds will be raised through debt finance from banks and financial
institutions, a part of it will be financed through promoters equity.

Major Infrastructure: The major infrastructure required for the proposed project is:

Land: 258.46 hectares

S. No

Cost parameters

Total Cost (INR

Million)

PV Modules

32.8

4,920

Land Cost (Assuming the land is purchased,

not allotted)

2.5

375

Civil and General Works

3.5

525

Mounting Structures

3.5

525

Power Conditioning Unit

3.5

525

Evacuation Cost

4.4

660

Preliminary & Pre-Operative Expenses

including IDC and Contingency

2.8

420

53.0

7,950

Total means of finance

Unit Cost (Per MW INR Million)

For the proposed project, debt equity ratio of 3:1 is considered. On this basis, the means of
finance proposed is as given below:
S. No

Means of Finance

Cost (INR million)

Promoters contribution

1,987.5

Term loan

5,962.5

Total means of finance

On the basis of profitability estimates, the breakeven point for the project is as follows:

Breakeven

4 5 years

Efficiency assumption

75% with plant operating 12 hours per day

Solar tariff

INR 6.35/kWh

Interest rate assumption

18%

Source:
http://www.cercind.gov.in/2016/orders/SO17.pdf

Page 12

7,950

Approvals &
Incentives
Approvals required
Consent to Establish from Gujarat Pollution Control Board
Consent to Operate from Gujarat Pollution Control Board
Basic designed approval from Chief Electrical Inspector on safety aspect
Registration to Gujarat Energy Development Agency (GEDA) which is nodal agency for renewable
energy in Gujarat.
Commissioning certificate to be obtained from GEDA.
Connectivity approval from GETCO/distribution company depending upon voltage level.

Incentives
National Schemes:
Tax holidays: The benefits of tax holidays as provided under Section 80 (I) (A) of the Income Tax
Act for development, operation and maintenance of power plants, airports, ports, waste
management facilities, water treatment plants, etc. is available to the developer. A 10-year tax
holiday is available for solar power projects.
Concession on excise duties and import duties on components and equipment required to set
up solar plant.
Accelerated Depreciation: Section 32 of IT Act provides Accelerated Depreciation of 80 % of the
invested capital to companies with tax liability
Feed in Tariffs: a payment made to businesses generating their own electricity through the use
of methods that do not contribute to the depletion of natural resources, proportional to the amount
of power generated
State-specific (Gujarat) Schemes
Viability Gap Funding Scheme: Gujarat Infrastructure Development Board supports PPP
projects financially (20% of the cost of the project). The scheme is applicable to PPP projects
where private sector is selected through competitive public bidding as prescribed under section 9
of the Gujarat Infrastructure Development Act, 1999.
Electricity Duty Exemption on generated solar power
CSS Exemption on generated solar energy
Cross Subsidy surcharge & Additional surcharge exemption on the generated solar power

Source:
http://mnre.gov.in/filemanager/UserFiles/guidelines_sbd_tariff_gridconnected_res/Gujarat%20Solar%20Power%20Policy%202009.pdf

Page 13

Energy and Petro Chemicals Department

www.guj-epd.gov.in
Gujarat Power Corporation Ltd

www.gpcl.gujarat.gov.in
Industries & Mines Department
www.imd-gujarat.gov.in
Office of Industries Commissioner
www.ic.gujarat.gov.in
Industrial Extension Bureau
www.indextb.com

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

Address :
Phone :
Fax :
Website :

Block No. 8, Sixth Floor,

Udhyog Bhavan, Sector 11,
Gandhinagar 382 011
079 23251255-60
91-79-23251254
gpcl.gujarat.gov.in