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BEST SOLAR POWER PRODUCERIPPAI POWER AWARDS 2012

Narmada Canal Project, Gujarat1 MW solar plant over 1 km on the canal

Rovigo, Italy70 MW

Solar Energy solutions for Industrial / Commercial consumers in Tamil Nadu

AgendaSunEdison Introduction

Solar Technology Intro & Government Benefits

TN Solar Policy

Solar Solutions for SPO Requirements

Importance of O&M / Asset Management Services

Conclusion

Discussion

2

A Leader in Two Different Markets

Ingot Wafers Cells / Modules Systems

Ingot Wafers Semiconductors Electronics

PolysiliconSemiconductors

Solar PV

MEMC

MEMC

3

4

Delivering Lowest Cost

of Energy

Component Selection

Construct‐ion Quality

Real‐time Monitoring

‐ RoC

O & M,Asset

Manage‐ment

FinancingSolutions

Design

Procure‐ment

Leasing

System Sale

Energy Sale

Solar Park

Core Value

MEMC Offices/ Manufacturing Facilities SunEdison OfficesSt. Peters, MissouriSanta Clara, CaliforniaSherman, TexasParis, FranceNovara, Italy

Shanghai, ChinaHsinchu, TaiwanSeoul, South KoreaTokyo, JapanSingapore

Belmont, CaliforniaToronto, CanadaSan Francisco, CaliforniaDenver, ColoradoBeltsville, MarylandPennsauken, NJ

Chennai, IndiaBangkok, ThailandMadrid, SpainJohannesburg, South Africa

SunEdison’s Regional Headquarters:

Asia & Sub-Saharan Africa – Chennai, India

Europe & MENA –Madrid, Spain

Americas –Belmont, California

MEMC/SunEdison Global Presence

Chennai, India

Belmont, California

.

5

Madrid, Spain

Strong expertise in Ground Mount & Rooftop Systems across the world

6

Otay Mesa Water Treatment Facility

Alamosa, Colorado

City of Rifle

Rovigo, Italy

Car Park, Korea

SunEdison in India – Leading Solar Solutions Provider for Various Segments

7

1A MNRE Accredited Channel Partner

1 MWp Solar Project on Narmada CanalFirst of its kind in the World

Reduces Evaporation – Saves up to 7 million liters of drinking water per yearProvides Reliable Power to Nearby VillagesReduces Algae Growth – More potable water

8

Largest Utility Scale Solar Developer in India78 MW+ Commissioned Across Gujarat, Rajasthan and UP

Awarded projects under National Solar Mission and various State solar policiesRaised $100 Million non-recourse debt financing for the projects with partners like IFC, OPIC, IDFC etc. Implementation experience across multiple technologies

• Multi crystalline silicon PV with Fixed tilt• Multi crystalline silicon PV with Trackers• Thin Film with Fixed tilt• Cadmium Telluride with Fixed tilt

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Millennium, Gujarat (9.27 MW, Azimuth Tracker)

Solar Park, Gujarat – (25 MW, Fixed tilt)

NVVN, Rajasthan(5 MW, Fixed tilt)

Phalodi, Rajasthan(20 MW, Thin Film- Fixed tilt)

ESP, Gujarat(5 MW, Fixed tilt)

GERMI, Gujarat(1 MW, showcase of all technologies)

Leader in Distributed Generation Projects Across India

Green Solutions for Education InstitutionsPioneered the Rooftop Solar Private PPA in India (Standard Chartered Bank, Chennai)Successfully implemented rooftop plants with zero roof damage using our proprietary Non-penetrating ‘Delta Rack’ structures

10

Airtel, 100 kW, Lucknow, UP(Largest Installation in Telecom Sector)

Punjab Agricultural University, 50 kW, PB(Green Solutions for Education Institutes)

Leading Auto Manufacturer, 300 kW, Chennai

Indian Oil Corporation, 9 kW, Dariba, UP (Diesel Abatement)

Standard Chartered, 100 kW, Chennai, TN(First Private PPA for Commercial Clients)

Shivalik Public School, 50 kW, Punjab

Building the First Solar City in India 2.5 MW of Solar Rooftop Projects in Gandhinagar, Gujarat

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Over 100 Rooftops to be covered

SunEdison: Best Solar Power Producer in India – IPPAI Power Awards 2012

12

Experienced Jury

V. Subramanian, Former Secretary, MNREProf S.L. Rao, Former Chairman, CERCMr. Ajay Shankar, Former Secretary, DIPPAshok KhuranaAnil Razdan, Former Secretary, MoP

Strong CompetitionMore than 20 application from various players (Welspun Energy, Azure Power, Kiran Energy, Lanco, Ablleon Energy, Green infra, Mahindra Solar One, Alex Astral, GHI energy, Waa Solar, Singhal forestry (Vandana Group) and others)

Knowledge Partners

Awarded India’s Best solar Power producer (2012)



TN Solar Policy



Conclusion

Discussion

13

PV TechnologiesPanel Technologies

Thin Film (8-10% efficiency)• Amorphous Silicon• Cadmium Teluride• SiGs

Crystalline• Poly / Multi (13-16% efficiency)• Mono (17-20% efficiency)

Tracker technologiesSingle Axis Trackers (East-West)

• 10% increase in cost, 18-19% increase in power generation

Dual Axis Trackers (North – South + East –West)

• - NA –

Area Required1MWp Fixed Tilt, Poly Crystalline – 4 acres1MWp Single Axis Tracker, Poly Crystalline – 6 acres

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Generation in TN for 1MWp1MWp Fixed Tilt, Poly Crystalline : 15 – 16 lakhkWh per year1MWp Single Axis Tracker, Poly Crystalline – 18 to 19 lakh kWh per year

CoimbatoreFixed Tilt: 15.25 lakh kWh per yearSingle Axis Tracker: 18.25 lakh kWh per year

RamnadFixed Tilt: 16 lakh kWh per yearSingle Axis Tracker: 19 Lakh kWh per year

ON-SITE Grid Connected Solution w/o StorageSolar PV Solutions Off-sets Grid and Diesel Consumption

GenSet

Grid

AC DistributionBoard

LoadsDG CB

PV CB

PV Array

AC Bus

Grid CB

On-site installationRooftop/ Ground-mountFor captive consumption

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Solar PV size can be maximum upto 6% of total DG Capacity

Types of roof-top solutions

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• Inclined GI Sheets• Penetrating• Non‐Penetrating

• RCC Flat Roofs• Penetrating• Non‐Penetrating

• Elevated Structures• Penetrating

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Solar Project Company Owned by Consumer

(Captive) /Investor (3rd Party Sale)

Turnkey EPC, O&M Service

Solar plant can be located in Consumer owned site / SunEdison developed Solar park

SunEdison solar parks currently being developed in TN/AP

Eligible for REC Trading

Solar Park Development*

Power Grid

Wheeling inPower

Wheeling outPower

Customer FacilityREC Revenue

via Power Exchange

Wheeling Solar Power TO Your Facility Premises

90% Solar Generation Off-sets Normal Hours & 10% Off-sets Peak Hour Demand

Industrial Load CurveSolar Energy Generation

Normal HoursMorning PeakHours

Evening PeakHours

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Monthly Generation – Weather Dependent

Rainy Day examples

Full Sun Day examples

GPCL 1MW, Gujarat – 2011

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Monthly Generation – Operating Performance

Days of Concern

Annual Generation – Seasonality

1,570 MWh/year production

GPCL 1MW, Gujarat – 2011

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Government Incentives

Capital Subsidy30% on value of systemUpto 100kWpExpected subsidy clearance time : 3 months

Direct Tax100% Accelerated Depreciation in Year 1Tax holiday for 10 consecutive years out of first 15 for income from sale of electricity (section 80-IA)

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Indirect TaxExcise Duty exemption on equipmentCustoms Duty exemption on import of panelsPreferential 5% VATNo VAT, CST, Service Tax, or excise duty on generation and sale of electricity

Renewable Energy Certificates (REC) Supplementary Source of Revenue

REC Particulars Details

REC Denomination 1 MWh

Validity Upto 2 years after issuance

Categories Solar REC and Non-Solar REC

Trading Platform Power Exchanges (last Wednesday of

each month)

Banking & Borrowing Not Allowed

Transfer Type Single transfer only

Forbearance Price Solar REC- 13,400/REC, till March

2017

Floor Price Solar REC- 9,300/REC, till March

2017

Mandatory topology Grid connected only

Renewable Energy

Generation

Renewable Energy

Attributes

Commodity Electricity

REC certificates can be obtained only if “brown” Power is sold in one of the following 4 routes : 1. Discom at APPC2. Third Party at a mutually agreed

price3. Power sale through Power

Exchange4. Captive Consumption

25

Agenda

SunEdison Introduction


TN Solar Policy



Conclusion

Discussion

26

TN Solar Policy – 6% SPO

Obligated EntitiesHT Consumers (HT Tariff I to V)This category will cover all HT consumers including:

• Special Economic Zones (SEZs)• Industries guaranteed with 24/7 power

supply• IT parks, Telecom towers• All Colleges & Residential Schools• Building with a built up area of 20,000

sq.m or moreLT Commercial (LT Tariff V)

Exempted EntitiesDomestic ConsumersHutsCottage and Tiny IndustriesPowerloomsLT IndustrialAgricultural consumers

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Penalty if SPO not met – Rs. 13.40 / kWh (forbearance price of REC)SPO can be satisfied by

Captive Solar PV Power plants3rd party solar PV power consumptionPurchasing RECPurchasing solar PV power from TANGEDCO

Net metering for Domestic Consumers



TN Solar Policy



Conclusion

Discussion

28

Getting Solar ON-SITE

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System Owner & Electricity Consumer

Equipment,EPC and

O&M ServiceBuy a SystemA

Lease a SystemB

Buy EnergyC

System OwnerElectricity Consumer

Monthly Lease

System Owner

Equipment,EPC and

O&M Service

Monthly Payment as per

PPA

Electricity Consumer

Financial Inst.

O&M Service

30

Parameter With Subsidy Without Subsidy

(+)INR 100 L . (+)INR 100 L

(-)INR 32.6 L

INR 46 L INR 67.4 L

(-)INR 15.1 L (-)INR 15.1 L

(+)INR 1.5L (+)INR 1.5L

INR 13.6 L INR 13.6 L

(-)INR 54 L

Total Project Cost

MNRE Capital Subsidy1 + Tax benefit from AD

Effective Project Cost

Annual Savings Yr 1

O&M ExpensesYr 1

Effective Savings (Expected) – Yr 1

Average Cost of Electricity – 25 Years

Payback Period 4 Years 5 Years

Rs. 7.81 / kWh (Pre Payback)

Rs. 2.16 / kWh (Post payback)

Rs. 9.83 / kWh (Pre Payback)

Rs. 2.21/ kWh (Post payback

ASSUMPTIONSProject Details• Poly C-Si modules Fix Tilt• Phased capacity addition• Location : Pune

(illustrative)

Annual Generation• 1.55 Lakhs kWh• Degrades at 0.5% YoY

Tariff and Charges• Grid & Diesel blended Tariff

of INR 9.80/kWh (75:25)• No other charges for captive

off-grid power plant

Financing Assumption• Debt : Equity (70:30)• Interest rate: 13%; Term:

7yrs

1 – Subject to O&M contract award for 5 years

Buying a SystemProject Economics – 100 kWp Rooftop Solar Installation

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INR 2.59/kWhAverage Cost of Electricity: Year 16 – 25

INR 1.50 Lakhs in Yr 1 to SunEdison3% increase y.o.y thereafter (10yrs; renewable)O&M

What it COSTS

What it takes toMAINTAIN

What youGAIN

*Yr 1 excluded from calculation due to the impact of one-time upfront costs

With Subsidy Without Subsidy

Leasing a System Project Economics – 100 kWp Rooftop Solar Installation

INR 2.59/kWh

Upfront Charge:

Upfront Security Deposit to Lessor

Fixed Monthly Lease Payments (180 months or 15 years)

Payment Security – Bank Guarantee

Asset transferred to Lessee at the end of 15yrs for payment of Security Deposit:

INR 7.24/kWhAverage Cost of Electricity: Year 2* – 15 INR 9.71/kWh

With Subsidy Without Subsidy

INR 8.6 L

INR 6.2 L

INR 0.65 L

INR 53.1 L (Waived)

INR 12.2 L

INR 8.9 L

INR 0.93 L

INR 79.9 L (Waived)

Up to 90% of Project cost financed through lease

32

Solar Project Company Owned by Consumer

(Captive) /Investor (3rd Party Sale)

Turnkey EPC, O&M Service

Solar plant can be located in Consumer owned site / SunEdison developed Solar park

SunEdison solar parks currently being developed in TN/AP

Solar Park Development*

Power Grid

Wheeling inPower

Wheeling outPower

Customer FacilityREC Revenue

via Power Exchange

Wheeling Solar Power TO Your Facility Premises

Project Economics 1 MW Off-site Wheeling for Captive Consumption

33

ASSUMPTIONSProject Details

• Poly C-Si modules Fix Tilt• Commissioning by Sep 2013• Location : TN

Annual Generation• 15.5 L kWh wheeled in; Degrades at 0.5% YoY• 14 L kWh wheeled out (7.25% losses)

Tariff and Charges• Normal grid tariff with taxes INR 6.28/kWh• Long term OA wheeling and transmission

charges : INR 1.55/kWh• Cross subsidy charges exempt

REC Benefit• Solar REC Price till March 2017 : INR 9.3/kWh• Solar REC Price till March 2022 : INR 3.0/kWh• 80% Solar RECs will be sold

Cost Head INRTurnkey EPC (plus tax) 7,87,00,000 Evacuation (incl. Transmission line) 13,00,000 Land + Permits + Government fees 48,00,000Total 8,48,00,000

Parameter Value

Total Project Cost (Incl. land) INR 8.00 Crore

Taxes (VAT + ST) INR 0.48 Crore

Accelerated Depreciation allowed in First year INR 8.19 Crore

Tax benefit from AD INR 2.66 Crore

Effective Project Cost INR 5.82 Crore

Annual Savings on Electricity from Grid INR 0.82 Crore

Income from Solar REC INR 1.12 Crore

Annual O&M expenses INR 0.12 Crore

Annual wheeling, transmission etc.charges INR 0.23 Crore

Effective savings/income INR 1.59 Crore

Payback period 5.25 years

Project IRR (Pre-tax) 22.4%

Average cost of electricity post payback (25 years) Rs. 4.10 / kWh

Our recommendationDedicated Feeder with 75% Captive Wind

• 20:75:5 (EB Grid: Wind: Diesel)• Blended cost of Electricity – Rs. 4.31

• Solution: Onsite Solar Power

Dedicated Feeder with 25% Captive Wind

• 50: 25:5 (EB Grid: Wind: Diesel)• Blended Cost of Electricity – Rs. 4.69

• Solution: Off‐site power + REC

Non‐dedicated Feeder with 75% Captive Wind


• Solution: Onsite power

Non‐dedicated Feeder with 25% Captive Wind


• Solution: Onsite Power, Off‐site power + REC

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10 hours of power cutEB Tariff: 6.28 / kWhDiesel Tariff: 16.00 /kWhWind Tariff: 3.00 / kWh

EB R

Onsite Solar – Rs. 2.16Offsite solar – Rs. 4.10

EB R

Agenda



TN Solar Policy



Conclusion

Discussion

35

36

SunEdison Services – Global Footprint

END-TO-END MONITORING SOLUTIONS

GLOBAL LOGISTIC EXPERIENCE

3 CONTINENTS . . . and counting

1300 MW

1010 PLANTS

SunEdison service provide system reliability and higher power plant production enabling maximum return on investment.

SunEdison operates and monitors a large portfolio of self-owned and third-party PV power plants across the globe.

SunEdison Services is a business unit of SunEdison, and is also a separate legal entity, wholly-owned by SunEdison, LLC.

RENEWABLE OPERATIONS CENTERS

3 ROC’s Belmont, CA, Madrid, Spain, and Chennai India are all locations with Renewable Operations Centers.

37

Blueprint for System Management

=~

Local Plant

Network Gear[router, firewall, network switch]Gen.

Meter

SEEDS ® Gateway(Connects To System Devices)

WeatherStation

Field Operations and Maintenance

Asset Management

UtilityMeter

Preventative

Corrective

Commissioning

Billing, AR/AP

Client Services

Project Oversight

DesktopRenewable Operations Center(ROC)

Data Collection

Site Monitoring

Analysis

Reporting

Remote Controls

Service DispatchEnergy Management & Grid Integration Services

Utility or ISO Link

SCADA System

Evaluating PV plant performance

39

A case study from a 25 MW PV plant in Gujarat

106%109%

104%

95% 95%

112%110% 112%

109%106%

108%

60%

70%

80%

90%

100%

110%

May '12 Jun '12 Jul '12 Aug '12 Sep '12 Oct '12 Nov '12 Dec '12 Jan '13 Feb '13 Mar '13

Percentage

Month

IPR Reference PR Actual PR

*IPR (Investor Performance Ratio): Actual energy produced compared to the pro‐forma estimate (p50) by independent engineering firm.

**Data available till April 24, 2013

One year IPR (May 2012 – April 2013)**: 106%

India specific learning

Beware of silent killers

Highlight of major issues in 2012

41

Total 4% energy loss in 2012 because of various field

failures

Construction related failures• Use of under-speced parts• Poor workmanshipGrid related failures• Grid fluctuations• Planned and un-planned grid shut downParts/Material failures• Modules and inverters related

Construction related defects

42

Mild failures

Catastrophic failures: Safety hazards

Supplier quality issues

43

Potential induced degradation (PID effect) in modules (silent killers)

• >50% reduction in module output• Conditions required for PID

• - ve floating• Crystalline modules• High voltage of strings (> 600 V)• Humidity• Site temperature• Cable faults

Excessive h/w and firmware related failures in inverters

• Inability to absorb grid fluctuations led to IGBT failures• h/w and firmware level modifications required to reduce failure

rates

EL test image of a module impacted by PID effect

How to deal with silent killers

44

Continuous monitoring and analysis

• Use of statistical tools for detecting trends/outliers• Physical tests (IR, thermography, IV etc) to validate findings

Vendors managementO&M feedback during design review (for future projects)Site Quality Inspection

Good Bad

Global Services Life Cycle

45

Site Acceptance Inspection (SAI)

Warranties and Permit Management Reliable Services

for 25+ Years

Reducing Solar PV Technology risk through After-Sales Services (O&M)

46

Agenda



TN Solar Policy



Conclusion

Discussion47

How to Select a Solar Services ProviderLong-lasting trustable company

Remote and online monitoring for daily operations

Reliable and efficient after-sales services offered

Warranties and Permit ManagementVisually inspect their oldest plant

Ministry of Renewable Energy (MNRE) accredited

Significant presence in India / Tamil Nadu

48

Contact Details:

Manu Karan – [email protected] Kaushik – [email protected]

mailto:[email protected]

mailto:[email protected]

Appendix

50

Government Order of TN Solar Policy

51

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