THE RISING SUN

Solar Energy Indian Scenario

Why Solar energy is Viable Option in India

Pollution free and inexhaustible supply.

India lies in the sunny regions of the world.

India has 250-300 sunny days in a year. Western Rajasthan receives highest annual radiation. Life of a solar project: 25 years. Major Cost : Operations & Maintenance. Ecological sustainable growth by reduced carbon Emission. Addresses Energy Security Challenge

Two Ways To Harness Solar Power

Concentrated Solar Power Technology (Heat)

Photovoltaic (PV) Technology (Light)

Solar energy is concentrated which converts light first into heat and then to electricity. Eg: Water Heating, Solar Ponds, Solar Cooker, Solar Air Heating

Converting solar radiation (sunlight) into electricity using a device called solar cell. Eg: Standalone Power Plant

Market

Drivers & Challenges

Government Initiative: Jawaharlal Nehru National Solar Mission (JNNSM)

The government released the National Action Plan on Climate Change (NAPCC) on June

30, 2008.

Ministry for New and Renewable Energy (MNRE) has launched National Solar Mission viz. Jawaharlal Nehru National Solar Mission (JNNSM) in November 2009.

Deploy 20 million solar lighting systems for rural areas by 2022.

Promote program for off grid applications.

Sr. No. 1 2 3

Application Segment

Target for Phase I (2010-2013) 7 200 MW 1000-2000 MW

Target for Phase II (2013-2017) 15 1000 MW 4000-10000 MW

Target for Phase III (2017-2022) 20 2000 MW 20000 MW

Solar Collectors (In Million Sq. Mtrs)

Off grid solar applications Utility grid power, including roof top

Schemes to Promote Solar Energy

Support schemes

100% Foreign Direct Investment automatic route in Renewable

10 Year Tax Holiday

Renewable energy plants if begins to generate power before 31 March 2013.

The Indian Renewable Energy Development Agency (IREDA)

Promote and finance renewable energy projects

Generation Based Incentives (GBI)

Solar Power @ INR 12.41 per KW

80% Accelerated Depreciation Renewable Purchase Obligation (RPO)

Distribution companies, open access consumers and captive consumers are obligated to buy a certain % of their power from renewable sources of energy.

Production Capacity as per States

(Percentage )
2% 2%

Gujarat
9% Rajasthan

20% 67%

Andhra Pradesh Maharashtra Other (12 States)

Summary
Government plans to increase the capacity of Solar Energy production to 22,000MW by 2022 12% electricity is generated using renewable energy sources as on date. Market

Drivers & Challenges

Drivers: Positive government policies, entry of new players in polysilicon market, abundant solar radiation in India Challenges: High unit cost of solar energy, volatility in polysilicon prices, and dependence on raw material import

Trends

Increase in M&A activity in renewable energy sector & PE Backing to Clean Energy companies Domestic and international players are moving in solar energy space (Tata, Adani, Reliance, BP Solar) Public and private investments have increased in solar energy market

Major players include Company Moser Bear, TATA Power, Adani Power New players entering the solar space Competition

Calculation of NPA @ Different PPA For Grid Connected PV Project

Present Cost of 1MW Project (in lakhs) Capacity of Project (MW) Conversion capacity PPA/Kwh Debt & Equity Rate of Interest on Debt Discounting Factor (Cost of Debt upto 10yrs) Discounting Factor (Cost of Debt from 11 to 25 yrs)

1,000.00 1.00 19% 13.00 07:03 13% 13% 8%

1,000.00 1.00 19% 12 07:03 13% 13% 8% 17.80 24.82% 8.7

1,000.00 1.00 19% 11 07:03 13% 13% 8% (66.24) 22.68% 9.5

1,000.00 1.00 19% 10 07:03 13% 13% 8% (150.28) 20.55% 11

1,000.00 1.00 19% 9 07:03 13% 13% 8% (234.32) 18.41% 12.5

1,000.00 1.00 19% 8 07:03 13% 13% 8% (318.36) 16.28 14

NPV (in lakhs) 101.84 Average ROE 26.95% Payback Period (Years) 0.085 Tax (pto 10yrs MAT @ 16.99% thereafter 33.99%)

Conclusion