Rooftop solar system at Chinnaswamy stadium
Implemented by
Our profile
• Owned by the Federal Republic of Germany
• Operations in Germany and in over 130 countries around the world
• Around 17",000 employees
• Operates in India since 60 years, currently 300 staff members in
India
• GIZ Solar team to support the capacity building programmes for
enabling the 40 GW Rooftop sector
Implemented by
Page 312/06/2017
GIZ PV projects in India
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BMZ
ComSolar (13.8 Mio €)
• Solar pilot projects
• Solar guidelines
IGEN PVRT (3 Mio. €)
• Capacity building with NISE
• policy recommendations
IGEN GEC (7 Mio. €)
• RE grid integration (transmission)
• Forecasting & dispatching
I-RE (2 Mio. €)
• Grid integration of PV rooftop (distribution)
• Long term energy scenarios
BMUB
IGSP-PVRT (5 Mio. €)
• Support to discoms
• Support to cities
• Innovative business models
• Awareness & Scaling
PVRT+ (1.5 Mio. €)
• Capacity Building
…
KSCA-GIZ Partnership
Mr. Mukherjee
visited Solar
Stadium in Freiburg
KSCA signed
AOC with GIZ
KSCA signed
MOU with GIZ
Structural
feasibility by
Lahmeyer
Economic
feasibility study
by ComSolar/GIZ
Apr’12 Jan’13 Feb’13 May’13 Aug’13
First thought
Signing AOC with
GIZ
Signing of MOU
Structural
feasibility
Economic
feasibility
Implemented by
Implemented by
Results from the structural feasibility
• Roof of East stand is made up of metal sheets can
be readily utilized for PV plant with minor
modifications
• Roof of West stand is made up of Asbestos and
needs to be replaced with metal sheets before
implementing solar
• Technically up to 1.3 MWp combined capacity
structurally feasible utilizing both roofs
Project technical feasible
Electricity situation at Chinnaswamy stadium
• Annual electricity bill: INR 1.1-1.2 Crore
• Annual electricity consumption: 16-17 lakh units (kWh)
• Tariff Category: Commercial – HT2b
• Electricity rate: (increasing @ 4.5% every year) 6.95 INR/kWh
Implemented by
5.60
6.00
6.50 6.70
6.95
2009 10 11 12 13
Increasing BESCOM Tariff (INR/kWh) (HT2b Category)
Source: Tariff Orders for BESCOM
Business Models
• KSCA will invest in the PV plant and consume internally
the electricity
• Benefit will be the savings on electricity from the Grid
1. Invest, Own, Operate &
Consume
• KSCA will invest in the PV plant and sell the electricity to
BESCOM
• Benefit will be revenue from sale of electricity
2. Invest, Own, Operate &
Sell
• KSCA will purchase electricity from a third party, who will
invest, own and operate the PV plant on stadium roof
• Benefit will be hedging the electricity cost
3. RESCO (PPA) model
Implemented by
1. INVEST, OWN, OPERATE & CONSUME
Model 1
KSCA as investor consuming
electricity internally
EPC CompanyBenefit
Investment
PV plant
Savings on
electricity bill
Capital subsidy
Implemented by
EPC – Engineering, Procurement and Construction
-
1",000
2",000
3",000
4",000
5",000
6",000
7",000
Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13
k
W
h
/d
a
y
Average daily electricity demand vs solar energy generation
Electrical load (10PM to 6AM)
Electrical load (6PM to 10 PM)
Electrical load (6AM to 6PM)
Solar generation (Daytime)
100% PV electricity can be consumed internally
PV plant size: 400 kWp
Implemented by
26.5
8.0
10.6
-
5
10
15
20
25
30
2
0
0
9
1
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
2
0
2
1
2
2
2
3
2
4
2
5
2
6
2
7
2
8
2
9
3
0
3
1
3
2
3
3
3
4
3
5
3
6
3
7
3
8
3
9
IN
R
/k
W
h
Electricity tariff (BESCOM) vs levelised cost of solar
Through this model, KSCA can make huge savings
With subsidy
Without subsidy
Implemented by
1.68 1.68
2.34
3.34
1.80
2.58
0.22
0.22
1.96
2.80
-
2.00
4.00
6.00
8.00
10.00
12.00
With Subsidy Without subsidy
IN
R
/k
W
h
PU O&M Expenses PU Depreciation
PU Interest on term loan PU Interest on working Capital
PU Return on Equity
Breakup of Levelised Cost of Electricity (BM1)
Implemented by
Financial implications
Assumptions
Capital cost INR 3.6 Cr
Debt: Equity Ratio 70:30
Debt Tenure 10 years
Interest on loan 12.5%
CUF 17%
O&M cost INR7.2
lakh/annum
Project lifetime 25 years
Depreciation (10 yrs) 7.0%
Depreciation (15 yrs) 1.33%
Results (With Subsidy)
Equity IRR 13.5%
Project IRR 16.5%
LCOE INR 8/kWh
Payback 6 years
Results (Without Subsidy)
Equity IRR 11.5%
Project IRR 12%
LCOE INR 10.61/kWh
Payback 8.5 years
Implemented by
-600
-400
-200
0
200
400
600
800
1000
1200
1400
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
IN
R
L
a
k
h
s
Cumulative cash flows
Implemented by
2. INVEST, OWN, OPERATE & SELL
Implemented by
Model 2
KSCA as investor selling
electricity to Grid
EPC CompanyBenefit
Investment
PV plant
Capital subsidy
Tariff
set by
KERC
Implemented by
Karnataka Electricity Regulatory Commission tariff order
Type of solar plant Approved Tariff
(INR/kWh)
Rooftop and small solar PV power plants 9.56
Rooftop and small solar PV power plants with 30%
capital subsidy
7.20
• Applicable till March 2015
• KERC assumptions
• Capital cost – INR 9cr/MW (400 kW – 3.6 cr)
• Return on Equity (ROE) – 16% post tax
Implemented by
Financial implications
Assumptions
Capital cost INR 3.6 Cr
Debt: Equity Ratio 70:30
Debt Tenure 10 years
Interest on loan 12.5%
CUF 17%
O&M cost INR7.2
lakh/annum
Project lifetime 25 years
Depreciation (10 yrs) 7.0%
Depreciation (15 yrs) 1.33%
Results (With Subsidy)
Equity IRR 10.2%
Project IRR 11%
Tariff INR 7.20/kWh
Payback 7.5 yrs
Results (Without Subsidy)
Equity IRR 11%
Project IRR 12%
Tariff INR 9.56/kWh
Payback 7.5 years
Implemented by
-600
-400
-200
0
200
400
600
800
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
IN
R
L
a
k
h
s
Cumulative Cash Flows
Implemented by
3. RESCO MODEL
Model 3
Third party as investor selling
electricity to KSCA
Third party
investor
EPC Company
Power purchase
agreement (PPA)
Electricity
from PV
plant
Capital subsidy
Investment
PV plant
Benefit
Hedging
electricity price
Implemented by
GIZ – recommendation business model 1
Parameters 1. Invest, Own, Operate
and Consume
2. Invest, Own, Operate
and sell
3. RESCO
Revenue/
Savings
@6.95 increasing every
year by 4.5%
@7.20 fixed for 25 years Depends on developers
Investment Same Nil
Economic
Attractiveness
High Low Depends on offers from
RESCO
Pros • Revenue/Savings
independent of third party
• Demand Supply matching
not an issue
• Entire 1.3 MW can be
installed under this BM
• No hassle with EPC/Govt
Approvals/DISCOM
• Zero investment and low
electricity tariff is a bonus
Cons • EPC Contracting
• Operation of PV plant
• Same as BM 1 +
Revenue is regulation
bound
• Financial health of
DISCOM remains a
concern
• Lack of companies
offering RESCO
• Contractual engagement
with RESCO
Implemented by
Business Models (Net Metering / Self Consumption)
• Stadium will invest in the PV plant and consume
internally the electricity
• Benefit will be the savings on electricity from the Grid
1. Invest, Own, Operate &
Consume
• Stadium will purchase electricity from a third party, who
will invest, own and operate the PV plant on stadium
roof
• Benefit will be hedging the electricity cost
2. RESCO (PPA) model
Implemented by
1. INVEST, OWN, OPERATE & CONSUME
For Stadiums Conventional electricity is already
expensive than electricity from solar
Implemented by
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
IN
R
/k
W
h
Electricity Tariff (Discom) vs levelised cost of Solar
Levelised solar tariff
~ 18
~ 5
*Escalation in tariff from Discom considered – 3% per annum, base tariff – 8.9 Rs/kWh
Breakup of Levelised Cost of Electricity from Solar*
Implemented by
35%
39%
25%
1%
PU O&M Expenses
PU Depreciation
PU Interest on term loan
PU Interest on working
Capital
*ROE is not considered for self consumption
Financial implications (per MW basis)
Assumptions
Capital cost INR 5 Cr
Debt: Equity Ratio 70:30
Debt Tenure 10 years
Interest on loan 11%
CUF 17%
O&M cost INR15
lakh/annum
Project lifetime 25 years
Depreciation (10 yrs) 7.0%
Depreciation (15 yrs) 1.33%
Financial Results*
Equity IRR 31.1%
Project IRR 21.1%
LCOE INR 5.11/kWh
Payback 5 years
Implemented by
*Without considering any ROE
Grid Tariff assumptions*
Tariff INR 8.90/kWh
Escalation 3%
Cumulative cash flows of a 1 MW rooftop solar power
plant on a stadium
Implemented by
Payback as early as 4-5 years
more than 20 years of free electricity
-1000
-500
0
500
1000
1500
2000
2500
3000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
IN
R
L
a
k
h
s
2. RESCO MODEL
-
20.00
40.00
60.00
80.00
100.00
120.00
140.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
IN
R
L
a
k
h
s
Case 1 Case 2
Financial implications (per MW basis)
Assumptions
Tariff offered by RESCO
Case 1
Case 2
INR 6/kWh
INR 7/kWh
Grid Tariff INR 8.9/kWh
Escalation in grid tariff 3%
Implemented by
Financial results
NPV (Case 1) INR 354 Lakh
NPV (Case 2) INR 466 Lakh
Zero investment
Savings from first year itself
Disclaimer
This presentation was prepared by GIZ (German Development cooperation
/ Deutsche Gesellschaft fuer international Zusammenarbeit GmbH)",
specifically by experts of the ComSolar project team based in New Delhi",
India based on best knowledge. Notwithstanding of detailed and diligent
analysis no warranties for the results can be given. GIZ is giving this
presentation and results, info and recommendations included without
guarantees. No responsibility is taken for the correctness of this
information.
Implemented by
Thank you!
[email protected], [email protected]
Indo German Energy Programme
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
B 5/2, 1st Floor, Safdarjung Enclave, New Delhi 110 029
Implemented by
mailto:[email protected]
