Bankability of Solar in Indian Market

By: Gensol Consultants Private Limited

Technology
International Installed Solar PV Base 21 GW *

Indian Installed Solar PV Base 10 MW *

1 MW Thin Film

9 MW Crystal line Figure: Project market dominance of PV technology **

*REN 21 Report 2010 ** PV status Report 2010

Which Technology is Feasible?

ENERGY GENERATION SILICON CRYSTALLINE THIN FILM PV

COST

PROVEN LIFE

RETURNS

Preference to on-ground presence of crystalline technology for almost 25 years over that of thin film for not even 10 years

EPC Players
Key Considerations Market Presence Experience in terms of project size and complexity Product suppliers Teams quality & structure Financial stability Government liasioning Risk handling

Energy Generation Guarantee International proportional BG after real time data analysis Indian BG against flat generation

Average installations of international EPC players entering India is atleast 150 MW

Average installations of Indian EPC players is approximately 3-4 MW

Tariff Backed Policies

GSP NSM Tariff structure and returns on project
IRR 13.3% IRR 22%

REC

IRR 38%

Risk associated on long term basis GSP

NSM
NSM National Solar Mission GSP Gujarat Solar Policy REC Renewable Energy Certificate

REC

Credible Data Availability

Data collection devises Internationally available software Satellite data Do not take local geographical criteria's into consideration Imperfect data during extrapolation and interpolation of data

Available software PV syst Meteonorm 3 Tier

Power Purchase Agreement

Strict penalties on late commissioning No reliable guarantees against the tariff payment schedule Long pending cases related to payment matters of power plants

Case Study: Dabhol Power Companys Power Plant Claimed to be the biggest coal based thermal power plant with state-of-art technology Payment settlement issues with Maharashtra State Electricity Board turned into an international conflict Case filled by stakeholders against GoI GE, Bechtel, off-shore banks, other financial institutions and OPIC (US government agency) received some amount of their claims

JNNSM v/s GSP v/s REC

Payment back-up support is best in case of NVVN as PPA signing body due to the balancing of profits through unallocated quota
There is no back-up support in case of REC mechanism or any other state policy like GSP, in case of PPA signing bodies experience losses

DSCR schedule for a project becomes important for banks from the point-ofview of recovery of their money from any project

REC GSP JNNSM

Financing Criteria

Balance Sheet Financing

Project financing

About Us: Overview

Gensol Consultants, an ISO 19001:2000 certified company is a pioneer in Renewable Energy and Carbon Advisory. With a portfolio of 25 million credits spread across 400+ clients in 16 states, Gensol is an empanelled consultant with Govt of Himachal and represents Ministry of Environment at International Forums. Clients Bajaj Hindustan Suzlon Landmark Hotels And many more Quippo Energy Zaveri & Co Asian Tiles

About Us: Credentials

Credentials
150+ Trained Team - all Graduates and Post Graduates in Energy and Environment Over 25 million Carbon Credits Under Manage Presence in 16 states 60 MW+ Solar Power Projects under execution Recipient of multiple awards including BusinessWorld Hottest Young Entrepreneur and Economic Times Power of Ideas.

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About Us: Company Services

Carbon Advisory & Trading Commanding Indias largest market share by projects, Carbon Advisory and Trading division has been instrumental in reducing 25 million tones of carbon. Strategic Consultancy Having international presence, strategic consultancy spans across carbon, energy and Information Technology management to enhance sustainability in organizations Asset Management With over 2500 crores of Assets under Management, the Gensol Renewable Energy Fund is bound to be Indias largest RE specific fund. Solar Division

Providing Complete Concept to Commissioning Solutions, Gensol Solar Division is a one point stop for all solar specific needs.

Contact Us:
Gensol Consultants Pvt Ltd 14 - 15, 2nd Floor, Camps Corner 2, Opp. Auda Garden, Prahladnagar, Ahmedabad 380015, GUJARAT W: www.gensolconsultants.com E: solar@gensolconsultants.com Ph: +91-79-39122276