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DEHRADUN
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ACKNOWLEDGEMENT
It take immense pleasure in thanking Mr Rajeev Ranjan Guru for having permitted me to carry out this project work.
I wish to express my deep sense of gratitude to Mr. Rajeev Ranjan Guru for his able guidance and useful suggestions, which helped me in completing the project work in time.
Finally, yet importantly, I would like to express my heartfelt thanks to Mr Avinash Bhardwaj and my beloved parents for their blessings, my friends/classmates for their help and wishes for the successful completion of this project.
EXECUTIVE SUMMARY
The power sector in India has gone through a lot of transformation in the recent years especially after Electricity Act 2003 with a lot of private players entering the sector starting from generation to distribution. The demand of power is growing day by day and to meet this demand government is looking into other sources of energy to meet the peaking demand.Solar power is one of the best alternative as india has potential of 20MW per square kilometer of solar power. The project is all about solar power, technology used to harness the solar power and the feasibility of 2MW solar power project.
TABLE OF CONTENT
Chapters 1. About The Green Mantra 2. Renewable Sources of Energy 3. Solar power and its potential in India 4. Solar Power Technology 5. Feasibility of 2MW Solar Power Plant Introduction to the Project Area Proposed technology Operation and Maintenance Power scenario of State Clean Development Mechanism National Solar Mission Financial Aspects ..
6. Conclusion
IV BIBLIOGRAPHY y y y y Solar power technology by Paul A. Breeze www.mnes.nic.in www.cercind.gov.in www.solarfeeds.com
Hydel
India has a total hydro energy potential of about 1.5 lakh MW of which about 20 % is installed. Small hydro plant potential is about 15000 MW and most of it is in the northern and eastern hilly regions. The film Swades is a perfect example of how power starved villages could realize their sources in to power.
Wind Energy
The wind power potential of India is about 45,000 MW out of which capacity of 10464 MW has been installed in India till 31st March 2008. India is one of the leading countries in generating the power through wind energy. Gujarat, AP, Karnataka, MP and Rajasthan are states having more than 5000 MW potential each. These potentials could be improved if the technology of putting turbines in sea is embraced. There are wind farms on sea generating as high as 160 MW of power.
Biogas / Biomass
Biomass is the oldest means of energy used by humans along with solar energy. As soon as the fire was discovered, it was used widely among humans mainly for heat and light. Fire was generated using wood or leaves, which is basically a biomass. Even today there are thousands of houses using firewood for preparation of food, heating water for bath, etc. The efficiency of such a process is very low as most of the heat is lost to the surroundings. Biomass is converted into gas through a gasifier after combustion. The biomass could be used to generate steam or power or used as a fuel. There are various examples of gasifier power plants in India. Power is generated using rice husk in Andhra Pradesh, while several bagasse based plants are there. India has a potential of 3500 MW from bagasse. Other fast growing plants could be planned over a huge area, so that it provides biomass for generating power.
Bio-fuels
India has more than 50 million Ha of wasteland, which could be utilized for cultivating plants. Jatropha is one of the options thought of by many minds for producing bio-fuels. It is a kind of plant which can come up on arid land, albeit with lower yield. There are issues such as low supply of quality seeds, technical advice, low knowledge of agencies which would buy seeds etc. But lately such agencies have come up and are offering technical advice as well as buying for further processing. Another option is coming up in bio-fuels which will beat Jatropha once the research on it is successful and scalable. Lot of it is being talked about around the world in the field of bio-fuels and is so attractive theoretically that anyone could go for it. When the output is compared in terms of oil in liter per acre, it is better than Jatropha by about 100 times. This option is Algae. The input is none other than carbon dioxide the old foe of clean environment and light which is aplenty. Just by using these two things algae grows, and could be used forextracting oil and then extracting bio-fuel from it. It will also act as a sink for carbon dioxide and seems to be the most attractive option. In a way it should be called utilization of solar energy!
Solar energy
The oldest source of energy to be used on earth! Even today, this is used to dry tons of material mostly in rural areas. India is a tropical countries and has many sunny days. According to estimates, 35 MW of power could be generated from 1 sq km. With such potential, solar is going to be the future.The startup cost is the biggest limitation which has led to the low realization of the potential it has. For solar energy to become one of the front runners, it will require lot of research, cheap technology and low capital.India grid connected solar power capacity currently stands at about 12MW. There are various technologies coming up around the world, which could be up scaled or replicated to use solar energy. Cooking, lighting, water heating and open air drying applications are common now-a 7
days, using solar energy. There are other applications like solar vehicles, desalination, agriculture, etc. which are coming up. It will take time to catch up because of the high cost involved in it. The two main methods of converting solar energy in to power are: i)Photovoltaiccells ii) Concentrated solar power and any operating fluid.
Source:CEA
In spite of all the issues,the outlook the renewable energy sector in india continues to be positive.Various financial and other institutions like Deutsche bank and British petroleum are bullish regarding the investment opportunities in India s Renewable sector.The Indian Government efforts ro drive R&D activity on cutting edge renewable technologies such as next-generation solar systems,hydrogen and fuel cells,biofuels,etc. also point to a bright future.
The only significant problem with solar power is installation cost, although cost has been decreasing due to the learning curve.Developing countries in particular may not have the funds to build solar power plants, although small solar applications are now replacing other sources in the developing world. One fundamental difference between renewable energy and non-renewable energy is that nonrenewable resources can be purchased as they are consumed, whereas with renewable resources, you pay up front for the next twenty years or so of energy.
Being positioned in Earth's equatorial Sun Belt, India gets profuse solar radiation. This daily radiation from Sun as well as the extent of sunshine is measured in India by the different radiation stations maintained by the India Meteorological Department. The major hunk of India experiences a clear bright weather for 250 to 300 days per year.
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Annual Mean Daily Global Solar Electric Conversion Potential in India (MW) Though it's being observed that northern Gujarat, Rajasthan and parts of Ladakh region receive the maximum annual global radiation but Madhya Pradesh, Maharashtra and some parts of Andhra Pradesh don't lack much behind as compared to other places. Research shows that annual worldwide radiation fluctuates from 1600 to 2200 kWh/m2 which is equivalent to almost 6,000 million GWh of energy a year. The dense population and high amount of solar insulation makes the country lead all other places in wind power generation by providing a perfect amalgamation of solar energy. It's recommended by some famous think-tanks that India should take up a policy to develop solar energy as the main element of the renewable power combination. India has kept aside a 35,000 km2 region of the Thar Desert which would suffice in generating 700 to 2,100 gigawatts for the proposed large solar energy projects.
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Solar energy, though reckoned to be one of the chief environment-friendly energy resources, includes both positives and negatives. The most important advantages of it are that solar energy can be restored. In July 2009, a $19 billion plan of generating 20 GW of solar energy by 2020 was disclosed by India which made it a mandate to use solar-powered applications and equipments in every government buildings, hotels and hospitals. On November 18, 2009, India declared to launch its National Solar Mission, a part of the National Action Plan on Climate Change with an aim to produce 1,000 MW of energy by 2013. Though the percentage of solar energy generated in India is only 0.4% compared to different resources but till October 2009, the country shared the first position with the United States in regards to Solar Power production capacity. Due to its high primary price of deployment, Solar energy is prohibitive at present and it can be promoted to a flourishing solar market only if the technology becomes competitively cheaper by attaining cost uniformity with nuclear energy or fossil. The numbers of solar appliances used in India are mentioned below:
y y y y y y y
Home illumination systems: 342,607 Solar road lights: 55,795 Solar photovoltaic energy plants: 1566 kW Solar lamp: 560,295 Box-shaped solar cookers: 575,000 Solar water heaters: 140 km2 of collector area Solar photovoltaic pumps: 6,818
A number of solar power projects in India have been undertaken for the proper utilization of solar energy in India. Indian Government has promoted the utilization of solar power through diverse strategies. The government, in the budget for 2010-11, has allocated an INR 10 billion towards establishing a Clean Energy Fund and the Jawaharlal Nehru National Solar Mission which is an increment of INR 3.8 billion from the last budget. The new budget has even reduced customs duty by 5% on solar panels as well as exempted the excise duty levied on solar photovoltaic panels just to encourage the privately run solar companies with an expectation to minimize the solar panel installation in roof-tops by 15 to 20%. A coal duty of USD 1 per metric ton on both imported and domestic coal was proposed in the budget. Among the other solar power projects in India, The Indian Government has recently approved a solar mission which aims to diminish the cost of electricity produced from solar power to equalize that with fossil fuels by 2030 that projects a colossal increase in installed solar capacity. This mission is quite ambitious to create 20 GW of solar power by 2020 which would again be increased to 100 GW and 200 GW by 2030 and 2050 respectively.
India's solar power projects include the mission to make solar lights accessible from 20 million 12
households by 2020, thereby saving 42 million tonnes of CO2 release annually. Indian Government is even planning to form a solar account with a primary investment of $1.1 billion. This fund will be build up by exhausting fossil fuels along with the power produced from them which is 0.1% for every kWh generated. Varied regulatory measures and policies which includes mandatory usage of solar energy in India to generate 5% of total production in existing thermal power plants and installation of rooftop photovoltaic panels in government buildings will promote this plan. Grid related producers will be allowed to sell surplus solar power to utilities and solar-power projects will get a 10 years tax holiday. Other positives include finance provided by banks on a priority basis and the industry will be advantageous to enjoy duty-free import of raw resources
Number of solar street lighting systems: 55,795 Number of home lighting systems: 342,607 Solar lanterns: 560,295 Solar photovoltaic power plants: 1566 kW Solar water heating systems: 140 km2 of collector area Box-type solar cookers: 575,000
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Photovoltaics
Photovoltaics (PV) is a method of generating electrical power by converting solar radiation into direct current electricity using semiconductors that exhibit the photovoltaic effect. Photovoltaic power generation employs solar panels comprising a number of cells containing a photovoltaic material. Materials presently used for photovoltaics include monocrystalline silicon, polycrystalline silicon, amorphous silicon, cadmium telluride, and copper indium selenide/sulfide. Photovoltaic cells are made of special materials called semiconductors such as silicon, which is currently used most commonly. Basically, when light strikes the cell, a certain portion of it is absorbed within the semiconductor material. This means that the energy of the absorbed light is transferred to the semiconductor. The energy knocks electrons loose, allowing them to flow freely. PV cells also all have one or more electric field that acts to force electrons freed by light absorption to flow in a certain direction. This flow of electrons is a current, and by placing metal contacts on the top and bottom of the PV cell, we can draw that current off for external use, say, to power a calculator. This current, together with the cell's voltage (which is a result of its built-in electric field or fields), defines the power (or wattage) that the solar cell can produce. AMORPHOUS SOLAR CELLS: Amorphous technology is most often seen in small solar panels, such as those in calculators or garden lamps, although amorphous panels are increasingly used in larger applications. They are made by depositing a thin film of silicon onto a sheet of another material such as steel. The panel is formed as one piece and the individual cells are not as visible as in other types.
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The efficiency of amorphous solar panels is not as high as those made from individual solar cells, although this has improved over recent years to the point where they can be seen as a practical alternative to panels made with crystalline cells. Their great advantage lies in their relatively low cost per Watt of power generated. This can be offset, however, by their lower power density; more panels are needed for the same power output and therefore more space is taken up.
Amorphous Solar Cell CRYSTALLINE SOLAR CELLS: Crystalline solar cells are wired in series to produce solar panels. As each cell produces a voltage of between 0.5 and 0.6 Volts, 36 cells are needed to produce an open-circuit voltage of about 20 Volts. This is sufficient to charge a 12 Volt battery under most conditions. Although the theoretical efficiency of monocrystalline cells is slightly higher than that of polycrystalline cells, there is little practical difference in performance. Crystalline cells generally have a longer lifetime than the amorphous variety.
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Crystalline Solar Cell MONOCRYSTALLINE SI CELL-The highest effieciency on silicon have been achieved on monocryatalline cells. The crystal lattice of the entire sample is continous and unbroken with no grain boundaries. Monocrystalline silicon has a single and continuous crystal lattice structure with practically zero defects or impurities. One of the many reasons Monocrystalline Silicon is superior to other types of silicon cells are their high efficiencies - which are typically around 15%. Features of Monocrystalline Technology
They are highly efficient and are often more cost-effective in the long run as a result. Monocrystalline panels are typically 15-18% efficient
If space is a concern (which it often is with solar panels), monocrystalline will be the best type to use
The lifespan of a monocrystalline cell is a minimum of twenty-five years and can be more than fifty, making them a worthwhile investment for long term use. 18
Monocrystalline Cell
How do Photovoltaics Work? When light energy is applied to a PV cell, i.e. when the sun shines on it, it gives the electrons enough energy to move across the p-n junction. At this point there is an energy variation across the p-n junction which is called a potential difference or voltage. The existence of this voltage when a PV cell is exposed to light is called the photovoltaic effect. If a circuit is made, via a cable to the electrical loads, the potential difference drives a current and the electrons can flow through the circuit.
Photovoltaics are best known as a method for generating electric power by using solar cells to convert energy from the sun into electricity. Solar cells produce direct current electricity from sun light, which can be used to power equipment or to recharge a battery.
Stirling, Concentrating
Fresnel
Reflector, Solar
concentration method is capable of producing high temperatures and correspondingly high thermodynamic efficiencies, but they vary in the way that they track the Sun and focus light. Due to new innovations in the technology, concentrating solar thermal is becoming more and more cost-effective. A parabolic trough consists of a linear parabolic reflector that concentrates light onto a receiver positioned along the reflector's focal line. The receiver is a tube positioned directly above the middle of the parabolic mirror and is filled with a working fluid. The reflector follows the Sun during the daylight hours by tracking along a single axis. A working fluid (eg molten salt) is heated to 150 350 C (423 623 K (302 662 F)) as it flows through the receiver and is then used as a heat source for a power generation system. Concentrating Linear Fresnel Reflectors are CSP-plants which use many thin mirror strips instead of parabolic mirrors to concentrate sunlight onto two tubes with working fluid. This has the advantage that flat mirrors can be used which are much cheaper than parabolic mirrors, and that more reflectors can be placed in the same amount of space, allowing more of the available sunlight to be used. Concentrating Linear Fresnel reflector can come in large plants or more compact plants. A Dish Stirling or dish engine system consists of a stand-alone parabolic reflector that concentrates light onto a receiver positioned at the reflector's focal point. The reflector tracks the Sun along two axes. The working fluid in the receiver is heated to 250 700 C (523 973 K (482 1,292 F)) and then used by a Stirling engine to generate power. Parabolic dish systems provide the highest solar-to-electric efficiency among CSP technologies, and their modular nature provides scalability. 20
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Study and feasability of 2 MW PV based Solar Power Plant at Bhurewala, Panchkula District, Haryana
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CONTENTS
Executive Summary Significant Features of the Project CHAPTER 1: Introduction to project Area CHAPTER 2: Proposed Technology CHAPTER 3: Operation and Maintenance CHAPTER 4: Power Scenario of State CHAPTER 5: Clean Development Mechanism CHAPTER 6: Financial Analysis CHAPTER 7: National Solar Mission
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Executive Summary
This report is for setting up a 2MW solar power plant based on Monocrystalline Photo Voltaic technology. The solar power project is proposed in Bhurewala, Panchkula district of Haryana which is highly enriched in terms of direct normal insulation and land availability.
Technology
The Proposed Power Plant convert sunlight directly into electrical energy by Solar PV Module. Monocrystalline Solar cells are used in proposed Solar Plant.
10 acres
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Electrical Parameter
Maximum Power Rating Rated Current Rated Voltage Short Circuit Current Open Circuit Voltage 225W 7.70A 29.30V 8.09A 36.84V
8. Cost Estimate
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6 months
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Climatic Condition
India is located in the sunny belt of the earth, thereby receiving abundant radiant energy from the sun. Its equivalent energy potential is about 6,000 million GWh of energy per year. India being a tropical country is blessed with good sunshine over most parts, and the number of clear sunny days in a year also being quite high. The country receives solar energy equivalent to more than 5,000 trillion kWh per year. In most parts of India, clear sunny weather is experienced for 250 to 300 days a year. The annual global radiation varies from 1600 to 2200 kWh/m2. This chapter covers the detailed-feasibility of solar radiation resource assessment and direct normal insolation (DNI) study for Bhurewala, Haryana.
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Annual Mean Daily Global Solar Electric Conversion Potential in India (MW) Source: www.mapsofindia.com
HARYANA
Haryana is landlocked state in northern India.It is located between 2737' to 3035' N latitude and between 7428' and 7736' E longitude. The altitude of Haryana varies between 700 to 3600 ft (200
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metres to 1200 metres) above sea level. An area of 1,553 km2 is covered by forest. Haryana has four main geographical features. The climate of Haryana is similar to other states of India lying in the northern plains. It is very hot in summer (up to a high of 50 deg Celsius) and cold in winters (down to a low of 1 deg Celsius). The hottest months are May and June and the coldest being December and January. Rainfall is varied, with the Shivalik Hills region being the wettest and the Aravali Hills region being the driest. About 80% of the rainfall occurs in the monsoon season (July-September) and sometimes causes local flooding.
PANCHKULA
Panchkula is surrounded by Himachal Pradesh in the north and north east by Ambala district in the east by Kurukshetra district in the south and Punjab and Union Territory of Chandigarh in the west.Bhurewala is a village in panchkula district. It has a sub tropical continental monsoon climate where we find seasonal rhythm, hot summer, cool winter, unreliable rainfall and great variation in temperature. In winter frost sometimes occurs during December and January. The district also receives occasional winter rains from the western disturbance. The rainfall is generally restricted to rolling plain in north and northeast a doom in Pinjore area and flood plain along the Ghaggar river.The temperature vary from 0 to 43 degree celcius.
MONTH
*DAILY SOLAR RADIATION HORIZONATAL (KWH/M2/D) JAN 5.9 FEB 6.81 MARCH 7.28 APR 7.92 MAY 8.21 JUN 7.29 JULY 5.13 AUG 4.9 SEP 6.41 OCT 7.85 NOV 7.68 DEC 6.2 ANNUAL 6.79 Mean Global Solar Radiant Exposure
9 8 7 6 5 4 3 2 1 0 Series1
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A photovoltaic module is an interconnected assembly of solar cells. The PV module, also known as solar panel is used as a component of larger photovoltaic module to offer electricity for residential and commercial use.
Photovoltaic Array
A photovoltaic array is a linked collection of photovoltaic modules, which are in turn made of multiple interconnected solar cells. The cells convert solar energy into direct current electricity via the photovoltaic effect. The power that one module can produce is seldom enough to meet requirements of a home or a business, so the modules are linked together to form an array. The modules in a PV array are usually first connected in series to obtain the desired voltage; the individual strings are then connected in parallel to allow the system to produce more current. Solar arrays are typically measured by the peak electrical power they produce, in watts, kilowatts, or even megawatts. Photovoltaic systems are used for either on- or off-grid applications. 32
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Technology
Photovoltaic cells are made of special materials called semiconductors such as silicon, which is currently used most commonly. Basically, when light strikes the cell, a certain portion of it is absorbed within the semiconductor material. This means that the energy of the absorbed light is transferred to the semiconductor. The energy knocks electrons loose, allowing them to flow freely. PV cells also all have one or more electric field that acts to force electrons freed by light absorption to flow in a certain direction. This flow of electrons is a current, and by placing metal contacts on the top and bottom of the PV cell, we can draw that current off for external use, say, to power a calculator. This current, together with the cell's voltage (which is a result of its built-in electric field or fields), defines the power (or wattage) that the solar cell can produce. AMORPHOUS SOLAR CELLS: Amorphous technology is most often seen in small solar panels, such as those in calculators or garden lamps, although amorphous panels are increasingly used in larger applications. They are made by depositing a thin film of silicon onto a sheet of another material such as steel. The panel is formed as one piece and the individual cells are not as visible as in other types. The efficiency of amorphous solar panels is not as high as those made from individual solar cells, although this has improved over recent years to the point where they can be seen as a practical alternative to panels made with crystalline cells. Their great advantage lies in their relatively low cost per Watt of power generated. This can be offset, however, by their lower power density; more panels are needed for the same power output and therefore more space is taken up.
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CRYSTALLINE SOLAR CELLS: Crystalline solar cells are wired in series to produce solar panels. As each
cell produces a voltage of between 0.5 and 0.6 Volts, 36 cells are needed to produce an open-circuit voltage of about 20 Volts. This is sufficient to charge a 12 Volt battery under most conditions. Although the theoretical efficiency of monocrystalline cells is slightly higher than that of polycrystalline cells, there is little practical difference in performance. Crystalline cells generally have a longer lifetime than the amorphous variety.
Fig. 1.8 Crystalline Solar Cell MONOCRYSTALLINE SI CELL-The highest effieciency on silicon have been achieved on monocryatalline cells. The crystal lattice of the entire sample is continous and unbroken with no grain boundaries. Monocrystalline silicon has a single and continuous crystal lattice structure with practically zero defects or impurities. One of the many reasons Monocrystalline Silicon is superior to other types of silicon cells are their high efficiencies - which are typically around 15%.
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They are highly efficient and are often more cost-effective in the long run as a result. Monocrystalline panels are typically 15-18% efficient
If space is a concern (which it often is with solar panels), monocrystalline will be the best type to use
The lifespan of a monocrystalline cell is a minimum of twenty-five years and can be more than fifty, making them a worthwhile investment for long term use.
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Operation
Operation of
Main Generating Equipment Other Auxiliary Equipments 38
It will be handled by the plant manager who will be assisted by the control room operators
Station O&M Philosophy
Necessary software and hardware are required for effective operation as the electricity produced from the power station is exported to the grid. The cost associated with the emergency breakdown can be brought down by effective preventive maintenance. Maintenance covers routine checking and activities to be performed according to the operation manual of equipments. Corrective maintenance is to be performed when a failure occurs.
O&M Manuals
Provision of manuals to each concerned department in advance from the commissioning date of the power plant.
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There are other advantages that accompany the use of solar power. Solar energy is a free and an inexhaustible source of fuel. There is no pollution or wastage resulting from its use. In small and remote villages, solar power may be the only source of energy, especially, if it is not possible to draw energy from other sources.
The strategic geographical location of India enables it to have long and sunny days for the major part of the year. Hence solar energy can be the practical solution to generate electricity for the mass of Indian population.
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yCertification and issuance: Based on the host-country approval, the validated project design and baseline, and the verified project performance, CERs are certified and issued by the CDM Executive Board.
o Participation in a CDM project activity is voluntary and CDM investments will be market driven. Public and private parties are eligible to participate.
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CDM activities must lead to measurable reductions in emissions, which will be transferable to the investor in the form of certified emission reductions, or CERs, upon quantification and certification by a third party. The reduction in emissions must be additional to any that would occur in the absence of the approved project activity. In order to earn CERs, emissions reductions must be quantified and certified by a third party. Contributions to sustainable development in the host country are a primary aim of CDM projects. The definition of sustainable development or how CDM projects should contribute to it is considered to be the host country s prerogative. The CDM allows transfer of CERs to a parties investing in such projects. This market-based system will allow individual firms, as well as countries, to select the most cost-effective solutions to mitigating greenhouse gas emissions.
AVERAGE
NEWNE SOUTH INDIA 0.83 0.76 0.82
OM
1.01 0.97 1.01 Fig.2.3 Based Emission
BM
0.68 0.82 0.71
CM
0.92 0.93 0.92
Average is the average emission of all stations in the grid, weighted by net generation. OM is the average emission from all stations excluding the low cost/must run sources. BM is the average emission of the 20% (by net generation) most recent capacity addition in the grid. CM is a weighted average of the OM and BM (here weighted 75:25)
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Baseline Calculation
Baseline emission is calculated as per equation BEy = EGy * EFy Where, BEy is the baseline emissions in year y, tCO2 EGy, y is the energy baseline in year y, kWh EFy is the CO2 emission factor of the grid in year y (tCO2/kWh)
Leakage (Ly):
Considering leakage value to be zero.
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YEARS Estimation of annual emission reduction in tons of CO2 e 2010-2011 3546 2011-2012 3546 2012-2013 3546 2013-2014 3546 2014-2015 3546 2015-2016 3546 2016-2017 3546 2017-2018 3546 2018-2019 3546 2019-2020 3546 2020-2021 3546 Estimated amount of emission reduction per year=3546tCO2e
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Return on Equity-The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. ROE is expressed as a percentage and calculated as: Return on Equity = Net Income/Shareholder's Equity
Interest on loan capital: Payment received by the creditor from the debtor for the use of money loaned. In precapitalist formations, when credit took the form of usury, the source of interest was the surplus and to some extent the necessary labor of small producers or slaves. Under capitalism, interest constitutes only a portion of the produced surplus value, or profit. The profit on capital is divided into the interest acquired by the lending capitalist and the entrepreneurial income acquired by the functioning capitalist.
Depreciation: A non cash expenses that reduces the value of asset as a result of wear and tear,age or obsolescene.Most asset lose their value over time(in other words they depreciate),and must be replaced once the end of their useful life is reached.there are several accounting methodsthat are used to determine asset depreciation cost over the period of its useful life.Because it is a non-cash expense,depreciations lower the company s report earning while increasing free cash flows. In renewable to calculate depreciation straight line method is used.
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Interest on Working Capital : Working Capital is the easiest of all the balance sheet calculations. Here's the formula. One of the main advantages of looking at the working capital position is being able to foresee any financial difficulties that may arise. Even a business that has billions of dollars in fixed assets will quickly find itself in bankruptcy court if it can't pay its monthly bills. Under the best circumstances, poor working capital leads tofinancial pressure on a company, increased borrowing, and late payments to creditor - all of which result in a lower credit rating. A lower credit rating means banks charge a higher interest rate, which can cost a corporation a lot of money over time. Working Capital=Current Assets-Current Liabilities
Operation and Maintenance Expenses :For the proper running the operation of machines some amount of money is to spend on the maintenance of the machines.Those expenses also have to taken into account while calculating the tariff and net operating profit for the project.
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Conclusion:
As India is Scarce of power Solar power projects proved to be a good alternative source of electricity generation as in India most of the days are sunny days.The solar Power technology which described above can be used easily to harness the solar power.With the help of these technogies India can be able to achieve its target of 20,000MW by 2022 under Jawaharlal Nehru National Solar mission and can also achieved the emission reduction by such tye of projects.The mission objective of National action plan for climate change to made the contribution of renewable sources of energy to 15% by 2020 can also be achived if such type of projects can be done on a large basis.Such type of projects would make the India independent to rely on mainly thermal projects and by these projects india can also achieved the emission reduction.The project proved to be a feasable we found that the NPV comes to be Rs.25.76 crore,IRR to be 7% and the payback period for the project is 13 years.So it s a good option to invest in this project as the payback period is not so long and the IRR rate is also appropriate.
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