solar energy industry assessment

8/7/2019 Solar Energy Industry Assessment

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Industry Assessment for

Solar Energy Market


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A basic introduction to theindustry...
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Solar TechnologiesThere are two primary ways of using Solar Energy for different applications

Solar

Technologies

SolarPhotovoltaic

(SPV)

PowerGeneration

Lighting

Water Pumping

Solar Thermal

(CSP)

Cooking

Water Heating

Energy Source Technology Selective Applications


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Industry is pursuing a host of promising

technologies in Photovoltaics...

Concentrated

Photovoltaic

Ground

Mounted

Roof

Mounted

Market

Thin Films

Amorphous

Silicon

Material

CdTE/

CIGS Organic

Crystalline Silicon

Mono-

Crystalline

Multi-

Crystalline

Structure

Setting up a solar PV manufacturing unit can cost around Rs 90 crores for a25MW capacity but the figure can vary depending on govt subsidies, locations,suppliers, etc.,


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...and in Concentrated Solar Power (CSP)

Trough Tower Linear Fresnel Dishes


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Classifying various applications

Solar PV System Size

Small Systems (1MW)

SystemT

yp

e

Roof topRural Off grid lighting, Urban

and Residential

Urban residential,

Commercial,

Industrial applications

Grid Connected Plants

Ground BasedRural Off grid lighting, Urban

and Residential

Village Electrification,

Industrial applications

Industrial applications,

Grid

connected Plants

Near ApplicationIrrigation pumps, Public area

applications

Cell Towers

Typical rule of thumb for Solar installations other than at utility scale is Rs. 3 Lakhs fora 1 KW system. This can vary by (+/- ) 25% depending on the margins, sourcing ofpanels, scale, etc.,


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The Indian scenario The entire public policy on Solar for India is dictated by the Jawaharlal

Nehru National Solar Mission launched in 2009.

It talks about achieving 20,000MW of energy generation through Solarin three phases:

1000 MW by 2013

Additional 3000 MW by 2017

Finally reach 20,000 MW by 2022

For this to become a reality, significant investments to the tune of Rs.250 billion are required over the next 2-3 years.

In January 2011, NVVN (NTPC Vidut Vyapar Nigam Ltd) selected 37companies to set up solar power projects to the tune of 704 MW forphase 1 of JNNSM.

Rajasthan accounts for 81% or 571MW of the entire capacity above.Rajasthan, Gujarat and AP are now the favoured destinations of projectdevelopers.


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The Indian scenario Prices paid by the grid for such projects typically range from

18.45/KWH to 10.95/KWH for Photovoltaic generation based onbidding.

On another scale Rooftop Solar projects, both feeding into the gridtype and off grid type have huge potential.

Part of JN National Solar Mission with objectives 10 MW Kitty Size as of now

Individuals 1 KW array size

Organizations 100 KW array size

Central Financial assistance of INR 75 per Wp for battery less and

INR 90 per Wp for battery based systems.

Off grid applications too hold huge potential because of around1lakh villages without electricity. Need a good model in this area.


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Typical finances of a 1MW PV plant Energy Generation: 1.5 Million KWH/MWp /year

PPA Rate: Rs. 18.45 / KWH 25 years

1st year Revenue/MW: Rs 2.76 Cr

Subsequent 25 years as per module degradation rate

Capital Cost: Rs.13.5 Cr + Land= Rs.14 cr Appr

70:30 D/E Ratio assumed Debt component: Rs.11.9 Cr

Terms 11.5%, 10 years with 1 year moratorium

Interest 1st year: Rs. 1.37 Cr

O&M / Misc: 12 Lacs typically

Margin After Tax: 20%

General RoE ranges from 18 to 20% based on moratorium, CER, interest,transmission line etc


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Financing the projects

Institutions are ready to fund projects that show a good returns and that arebacked by sound companies with experience in delivering large projects ontime and satisfactorily.

Project

Financing

Commercial

Banks

International

development

banks / agencies

IREDA, NABARD,

NHB, SIDBI, etc.,Public Markets

Govt lending /

subsidies

Internal reservesPrivate Equity /

VCs / Angels

PFC and other FIsFIIs


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Factors for Success through Execution Excellence

Project Management Knowledge of Indian conditions

Land acquisition and development EPC Contracting

Tax / Duty implications

Cost Control / Local Contracting

On Time Delivery

EPC Monitoring Long lead time Items

Inverter and Cable Trenching

Handling and Logistics

Commissioning Plans

Performance Site Survey and Analysis

Civil / Structural Design

Optimized Array Configuration

Power Output / Monitoring


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The Key Dynamics

POLICY CUSTOMERS

EXECUTION EXCELLENCE

FINANCING

TECHNOLOGY

Typically we see good policies, project plans and funding plans given but theexecution on the ground is delayed due to host of issues like land acquisitions,financial planning, technology issues etc.,.


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How can we help you in thismarket?EfficientCarbon can provide you with comprehensive research on the SolarIndustry in India and give you its understanding, expertise and contacts tohelp you flourish in this industry. We would start by typically answering thefollowing questions


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Questions to Answer Is this the best time to enter the Solar market in India?

If so, what is the core business model (mfg, trading, EPC, anciliary, etc.,)

What should you consider before you make a foray? Capital and Operating Costs

Locations

Technology

Govt Policies

The National Solar Mission

Who are the already existing players and what is their might?

Competition analysis

Alternate, substitute technologies

What are the detailed costs and returns?

Capital costs

Operational costs

Financial modelling

Financing options

What are the govt policies regulating the solar industry?


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Questions to Answer What should I consider while preparing Pre-Feasibility and Feasibility

reports?

What are the product/project development stages? Who and where are the suppliers?

Raw materials

International trade policies, etc.,

What are the entire gamut of opportunities available in the ancillary

industries supporting the Solar Industry?

EPC

Inverters

Batteries

Tracking systems

Lighting,

Servicing, etc.,

EfficientCarbon would help you answer these questions through primary andsecondary research and put you in direct presence of collaborators, fundingsources, existing players in the market, to help you make more informeddecisions etc.,


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solar energy industry assessment

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