105 kalyan verma report

8/11/2019 105 Kalyan Verma Report

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SUMMER INTERNSHIP PROJECT REPORT

ON

“Indian Solar Market Analysis – Policy, Business Models and Stakeholders for an

International Investor

&

Study of Green Corporate Social Responsibility (CSR) Solutions”

Under the guidance of

Dr. Manisha Rani, Fellow, NPTI

&

Mr. Alok Tripathi, Director, Power Plus Consultants

AtPower Plus Consultants, New Delhi

Submitted byKALYAN VERMA

Roll No: 105MBA (POWER MANAGEMENT)

2012-2014

Sector-33, Faridabad – 121003, Haryana

(Under the Ministry of Power, Govt. of India)

Affiliated to

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

AUGUST, 2013



ii

TRAINING COMPLETION CERTIFICATE



iii

DECLARATION

I, KALYAN VERMA, Roll No. 105 , Registration No. 12NPTIF0092 student of MBA

- Power Management (2012-14), XIth

Batch at National Power Training Institute, Faridabad

hereby declare that the Summer Training Report entitled “Indian Solar Market Analysis –

Policy, Business Models and Stakeholders for an International Investor & Study of Green

Corporate Social Responsibility (CSR) Solutions” is an original work and the same has not

been submitted to any other Institute for the award of any other degree.

A Summer Internship Presentation & Report was Presented and submitted on

__________________ and the suggestions as approved by the faculty were duly

incorporated.

___________________ ______________________

Signature of the Guide Signature of the Candidate

Countersigned

Director/Principal of the Institute



iv

ACKNOWLEDGEMENT

I express my gratitude to the management of Power Plus Consultants who have shown

confidence on me and bestowed upon me this valuable task.

I take this opportunity to express my sincere thanks to Mr. Alok Tripathi (Director,

Power Plus Consultants) for his support and guidance throughout the course of the project.

I also thank Mr. S.K. Choudhary (Principal Director), Mrs. Manju Mam (Director),

Mrs. Indu Maheshwari (Dy. Director), for providing me such a nice opportunity to work

with this organization. My internal project guide Dr. Manisha Rani (Faculty) provided me

constant support and motivation during the course of the internship. She also helped me

in structuring this project report and also on various other aspects of the study. I am very much

thankful to her for her support. I thank all members of CAMPS rendering kind help during the

project work.

Last but not the least; I am grateful to my family, friends & seniors at CAMPS, NPTI.

Thank you all for being there for me always.

KALYAN VERMA

ROLL NO: 105

MBA (POWER MANAGEMENT)



v

EXECUTIVE SUMMARY

The Project work in the first phase required preparing a pre-feasibility report for an

international investor for setting up a solar power plant. The investor being totally unfamiliarwith the Indian power sector scenario had to be briefed right from India‟s energy mix to drivers

for solar power in India and how solar power fits in the Indian scenario. India has a very good

GHI (5.1) and large no. of sunny days (330 approx) per year in most parts of the country. With

support from the Government in the form of policies and subsidies, it will not take long for solar

power to achieve parity with other sources of energy generation.

We targeted the following six states for our analysis – Rajasthan, Gujarat, Andhra

Pradesh, Punjab, Madhya Pradesh and Maharashtra. We collected data about the different states

performance in terms of the four major parameters for establishing a solar power plant i.e.

radiation levels, ease of land acquisition, ease of Governmental clearances and local support.

Analysis of the Regulatory framework and the historical growth of the solar sector in

India gave us an overview of the sector. A Comparative, in-depth study was then carried out for

JNNSM and the target states solar policies. A market study in the form of leading developers,

module manufacturers, EPC players , inverters (technology and manufacturers) and viable

business models to sell the solar power was then carried out to get exact statsitics required for

making an investment.

The second phase of the project was studying the various Green CSR methods which the

companies can implement as part of their mandatory CSR spending and also how CSR can be

implemented as a business strategy. The new companies bill mandates large sized corporations to

spend 2% of their net profits on Corporate Social Responsibility (CSR) activities. A large part of

this potential fund can be channelized for sustainable development. Sustainable development

forms one of the nine verticals which qualify under CSR. Green CSR can be implemented

through Renewable Energy based CSR interventions, Energy Efficiency and Renewable Energy

Certificates.



vi

LIST OF FIGURES:

Figure 1 : Solar Power Capacity Requirement by 2022 ................................................................................ 2

Figure 2 : Sources of Research ..................................................................................................................... 4

Figure 3 : India - State-wise Wastelands Distribution .................................................................................. 7Figure 4 : India's Energy Mix (As of 31.07.2013) ...................................................................................... 10

Figure 5 : YOY INCREASE IN SOLAR INSTALLED CAPACITY (MW) ............................................. 13

Figure 6 : JNNSM (Phase I, Batch I) Projects Status ................................................................................. 16

Figure 7 : JNNSM (Phase I, Batch II) Projects Status ................................................................................ 17

Figure 8 : Rajasthan Solar Policy (Projects Status) .................................................................................... 19

Figure 9 : Gujarat (Solar RPO Target) ........................................................................................................ 21

Figure 10 : Gujarat (Projects Status) ........................................................................................................... 21

Figure 11 : Andhra Pradesh (Projects Status) ............................................................................................. 24

Figure 12 : Maharashtra (Solar RPO Target) .............................................................................................. 26

Figure 13 : Punjab (Projects Status) ............................................................................................................ 27

Figure 14 : Punjab (Tariff Discovered) ....................................................................................................... 27

Figure 15 : Madhya Pradesh (Projects Status) ............................................................................................ 29

Figure 16 : Developers break up State-wise ............................................................................................... 32

Figure 17 : Existing EPC Models ............................................................................................................... 33

Figure 18 : Preferred Technology ............................................................................................................... 35

Figure 19 : Preferred Technology (NSM Phase I, Batch I) ......................................................................... 36

Figure 20 : Module/Cells supply break-up ................................................................................................. 36

Figure 21 : Inverter break up in Indian Solar Domain ................................................................................ 37

Figure 22 : APPC + REC Business Model ................................................................................................. 38

Figure 23 : Pseudo Captive Business Model .............................................................................................. 40

Figure 24 : Segmentation of Corporate Social Responsibility .................................................................... 47

Figure 25 : Spending on CSR Activities by 100 Profitable Companies in India 2012 ............................... 48

Figure 26 : Segment wise CSR Spending by Organizations in 2012 .......................................................... 49

Figure 27 : Sectors Contributing in CSR Activities in 2012 ....................................................................... 50

Figure 28 : Boundaries Defining Green Energy CSR ................................................................................. 51

Figure 29 : All India Generating Capacity (In MW as of 31.07.2013) ....................................................... 52

Figure 30 : Source wise and YOY Targets set during 12th Plan Period (MW) .......................................... 52

Figure 31 : Renewable Energy Initiatives under CSR Activities ................................................................ 54

Figure 32 : Planned Installed Capacity from Solar (MW) .......................................................................... 55

Figure 33 : Solar powered cell charging stations ........................................................................................ 57

Figure 34 : Off-Grid RE Capacity (MW) .................................................................................................... 58

Figure 35 : Concept of Renewable Energy Certificates .............................................................................. 58

Figure 36 : Registered Capacity under REC Mechanism (MW) ................................................................ 60

Figure 37 : Various Energy Efficiency Measures ....................................................................................... 64

Figure 38 : Electrical Energy Savings in Terms of Equivalent Avoided Capacity (MW) .......................... 65

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vii

LIST OF TABLES:

Table 1 : Incremental Solar Capacity (MW) - YOY ..................................................................................... 2

Table 2 : State-wise Irradiation ..................................................................................................................... 5

Table 3 : State-wise Distribution of Wastelands ........................................................................................... 7Table 4 : Solar Potential in India .................................................................................................................. 8

Table 5 : Performance of States on parameters vital for Solar Plant Installation ....................................... 9

Table 6 : PV VS CSP (COMPARATIVE ANALYSIS) ............................................................................. 12

Table 7 : Total Installed Capacity (Solar Power As of 31.07.2013) ........................................................... 14

Table 8 : JNNSM Overall Targets (GW) .................................................................................................... 15

Table 9 : JNNSM Achievements (Phase I) ................................................................................................. 15

Table 10 : Tariff Discovered (Jnnsm Phase I,Batch II) .............................................................................. 18

Table 11 : Rajasthan Solar Policy (Tariff Discovered) ............................................................................... 20

Table 12 : Gujarat (Feed in Tariff) .............................................................................................................. 22

Table 13 : Andhra Pradesh (Tariff Discovered) .......................................................................................... 24

Table 14 : Key Developers in India (Solar Power) ..................................................................................... 31

Table 15 : Market Potential Estimation of Unrestricted Voluntary REC Market in India (INR Crore) ..... 62



ix

TABLE OF CONTENTS:

Indian Solar Market Analysis – Policy, Business Models And Stakeholders For An

International Investor & Study Of Green Corporate Social Responsibility (CSR) Solutions

TRAINING COMPLETION CERTIFICATE .............................................................................................. ii

DECLARATION ......................................................................................................................................... iii

ACKNOWLEDGEMENT ........................................................................................................................... iv

EXECUTIVE SUMMARY .......................................................................................................................... v

LIST OF FIGURES: .................................................................................................................................... vi

LIST OF TABLES: ..................................................................................................................................... vii

LIST OF ABBREVIATIONS: ....................................................................................................................viii

TABLE OF CONTENTS: ............................................................................................................................ ix

INDIAN SOLAR MARKET ANALYSIS – POLICY, BUSINESS MODELS AND STAKEHOLDERS

FOR AN INTERNATIONAL INVESTOR .................................................................................................. 1

CHAPTER-1 ................................................................................................................................................. 1

INTRODUCTION ........................................................................................................................................ 1

1.1 KEY DRIVERS OF SOLAR ENERGY IN INDIA .................................................................. 1

1.2 HOW SOLAR FITS IN ........................................................................................................... 1

1.3 OBJECTIVE OF THE PROJECT ......................................................................................... 3

1.4 ABOUT THE ORGANIZATION ............................................................................................ 3

1.5 RESEARCH METHODOLOGY ............................................................................................ 4

CHAPTER-2 .................................................................................................................................................... 5

SCENARIO OF SOLAR POWER IN INDIA ......................................................................................................... 5

2.1 STATES WITH HIGHEST IRRADIATION ............................................................................ 5

2.2 LAND AVAILABILITY .......................................................................................................... 6

2.3 COMPARISON OF TARGET STATES BY EASE OF LAND ACQUISITION ..................... 8

2.4 INDIA’S E NERGY MIX ......................................................................................................... 9

2.5 LITERATURE REVIEW ...................................................................................................... 10

2.5.1 REGULATORY FRAMEWORK ENABLING GROWTH OF SOLAR SECTOR ...................................... 10

2.6 PV V/S CSP : INDIAN SCENARIO ................................................................................... 11






x

2.6.1 KEY ISSUES IN CSP ...................................................................................................................... 11

2.7 CURRENT STATUS OF PROJECTS .................................................................................. 13

CHAPTER-3 ............................................................................................................................................... 15

SOLAR POLICIES ANALYSIS ................................................................................................................ 15

3.1 NATIONAL SOLAR MISSION – JNNSM ............................................................................ 15

3.2 NATIONAL SOLAR MISSION – JNNSM (PHASE I, BATCH I) ......................................... 16

3.2.1 ASSUMPTIONS............................................................................................................................ 16

3.2.2 LESSONS LEARNT ........................................................................................................................ 17

3.3 NATIONAL SOLAR MISSION – JNNSM (PHASE I, BATCH II) ....................................... 17

3.3.1 ASSUMPTIONS............................................................................................................................ 18

3.3.2 LESSONS LEARNT ........................................................................................................................ 19

3.4 RAJASTHAN SOLAR POLICY ............................................................................................ 19

3.4.1 KEY FACTS ................................................................................................................................... 20

3.5 GUJARAT SOLAR POLICY ................................................................................................ 21

3.5.1 KEY FACTS ................................................................................................................................... 22

3.6 ANDHRA PRADESH SOLAR POLICY ............................................................................... 23

3.6.1 KEY FACTS ................................................................................................................................... 24

3.7 SOLAR POWER IN MAHARASHTRA ................................................................................ 25

3.7.1 KEY FACTS ................................................................................................................................... 26

3.8 PUNJAB SOLAR POLICY .................................................................................................. 26

3.8.1 KEY FACTS ................................................................................................................................... 28

3.9 MADHYA PRADESH SOLAR POLICY .............................................................................. 28

3.9.1 KEY FACTS ................................................................................................................................... 29

CHAPTER-4 ............................................................................................................................................... 31

STAKEHOLDERS ANALYSIS ................................................................................................................ 31

4.1 KEY DEVELOPERS ............................................................................................................ 31

4.2 EPCs .................................................................................................................................... 33

4.2.1 SOLAR PROJECTS – DIFFERENT MODELS EXISTS ........................................................................ 33

4.2.2 SOLAR EPC MARKET SPACE ........................................................................................................ 34

4.3 BUSINESS MODELS FOR SOLAR PLANTS : FINANCIAL VIABILITY ........................... 37

4.3.1 APPC + REC ................................................................................................................................. 37



xi

4.3.2 PSEUDO CAPTIVE MODEL .......................................................................................................... 39

4.3.3 Third Party Sale + REC ................................................................................................................ 40

4.3.4 BIDDING IN STATE POLICIES/ NSM ............................................................................................. 41

CHAPTER-5 ............................................................................................................................................... 42

RESULTS ................................................................................................................................................... 42

5.1 PSEUDO CAPTIVE MODEL : WIN – WIN SITUATION FOR ALL .................................. 42

5.2 OPEN ACCESS + REC ....................................................................................................... 43

5.3 PROJECTS UNDER SOLAR POLICIES – AN OPPORTUNISTIC MARKET FOR LOCAL

DEVELOPERS .......................................................................................................................... 44

5.4 BUSINESS MODEL WHERE VIABILITY DEPENDS ON REC ARE NOT BANKABLE – APPC +

REC ............................................................................................................................................................. 45

CHAPTER-6 ............................................................................................................................................... 46

CONCLUSIONS ........................................................................................................................................ 46

STUDY OF GREEN CORPORATE SOCIAL RESPONSIBILITY (CSR) SOLUTIONS ....................... 47

CHAPTER-7 ............................................................................................................................................... 47

7.1 INTRODUCTION TO GREEN CSR .................................................................................... 47

7.1.1 ORGANIZATION SPENDING ON CSR ACTIVITIES ......................................................................... 48

7.1.2 SEGMENT WISE CSR SPENDING ................................................................................................. 48

7.1.3 SECTORS CONTRIBUTING IN CSR ACTIVITIES ............................................................................. 49

7.1.4 FOCUSSING ON ENVIRONMENT AND SUSTAINABILITY ............................................................. 50

7.2 GREEN CSR INITIATIVES ................................................................................................. 51

7.2.1 RENEWABLE ENERGY INVESTMENTS ......................................................................................... 51

7.2.3 OFF-GRID SOLUTIONS ................................................................................................................ 56

7.2.4 RENEWABLE ENERGY CERTIFICATES (REC) ................................................................................. 58

7.2.5 ENERGY EFFICIENCY MEASURES ................................................................................................ 63

7.3 WAY FORWARD FOR GREEN ENERGY BASED CSR INITIATIVES .............................. 65

BIBLIOGRAPHY ....................................................................................................................................... 67



1

INDIAN SOLAR MARKET ANALYSIS – POLICY, BUSINESS MODELS

AND STAKEHOLDERS FOR AN INTERNATIONAL INVESTOR

CHAPTER-1

INTRODUCTION

1.1 KEY DRIVERS OF SOLAR ENERGY IN INDIA

Energy Deficit of 12% of peak demand

If India continues to grow at an average rate of 8% for the next 10 years, the country‟sdemand for power is likely to soar to 315 to 335 GW by 2017 which will require a

generation capacity of 415 to 440 GW (Mckinsey Report)

About 68.1% of India‟s energy generation capacity is from fossil fuels with coal

accounting for 58% of India‟s total energy consumption (Central Electricity Authority)

High dependence on imports for energy requirement , total imports represents 13% of the

total primary energy supply ( Energy Statistics Report 2013)

Rising price of electricity based on coal and gas

Environmental concerns

1.2 HOW SOLAR FITS IN

High Solar Irradiation (annual average GHI of 5.1) in most of the parts of country

Large number of sunny days available (apprx. 330 )

Availability of large area of land at comparatively low costs

High solar potential near main load areas in country (Western and Southern India)

Support from Government under NAPCC and Renewable Purchase Obligation (RPOs) In parity with other resources of energy generation with costs still going down



2

Figure 1 : Solar Power Capacity Requirement by 2022

Table 1 : Incremental Solar Capacity (MW) - YOY

FY

Energy

Requirement

(MU)

Solar RPO

(%)

Solar Energy

Requirement

(MU) for RPO

compliance

Solar Capacity

Requirement (MW) at

19% CUF

Incremental

Solar Capacity

(MW)- YoY

2011-12 929111 0.25% 2323 1396

2012-13 1001922 0.25% 2505 1505 109

2013-14 1080438 0.50% 5402 3246 1741

2014-15 1165108 0.75% 8738 5250 2004

2015-16 1256413 1.00% 12564 7549 2299

2016-17 1354874 1.25% 16936 10175 2627

2017-18 1450982 1.75% 25392 15256 5081

2018-19 1552008 2.25% 34920 20981 5725

2019-20 1660783 2.50% 41520 24946 3965

2020-21 1778109 2.75% 48898 29379 4433

2021-22 1904861 3.00% 57146 34334 4955

1505

34334

02000400060008000

010000200003000040000

Solar Capacity… Incremental Solar Capacity (MW)- YoY

~ 33,000 MW

Source : Energy Requirement Data from 18th EPS Survey



3

1.3 OBJECTIVE OF THE PROJECT

The basic objective of the Project is to :

1. Exhaustive analysis of the Indian Solar PV market complete value chain which includes

but not limited to policies, stakeholders and business models for an international investor

2. Study of how the companies can implement the Green Corporate Social Responsibility

(CSR) obligations and CSR as a business strategy

1.4 ABOUT THE ORGANIZATION

Power Plus Consultants is a young and dynamic organisation promoted by alumni of

National Power Training Institute (Ministry of Power). Team Power Plus Consultants consists of

young dynamic power managers and retired government officials as mentors to support the

vision of the company. The core expertise of the team of Power Managers lies in Regulatory

advisory and Market analysis. Services offered by Power Plus Consultants include:

• Renewable Market Analysis

• Renewable Project Development

• Regulatory Advisory

• Power Sector Analysis

• Energy Portfolio Management

• Market Intelligence

• Strategic Alliances

Power Plus Consultants also maintains the website indianpowersector.com (IPS). In its three

years of operation, IPS has become India‟s premier knowledge portal for 360 degree coverage of

power sector getting more than 2.0 million hits every month. The portal provides all knowledge

for free, also reaching the subscribers through daily newsletters. Team IPS believes in educating,

updating, promoting and creating awareness amongst all the stake holders in the energy sector

with the latest national and international news updates and market analysis. In the short period of



4

its existence, IPS has published numerous reports on a number of topics related to power sector.

IPS is leading media partner with all national energy sector conferences and exhibitions.

Power Plus Consultants continues to work for various national and international clients in energy

sector ranging from coal,renewable energy, generation, distribution and smart grid.

1.5 RESEARCH METHODOLOGY

To carry out the research, I have collected data from various associations with various

information organizations. State Energy Development Agencies, Ministry of Power, Central

Electricity Authority, Central Electricity Regulatory Commission are few to name. Most of the

research inputs are obtained from Secondary sources such as Journals, Reports, Publications

and from primary sources like Conferences and telephonic conversation with many

power project developers. The inputs received and the data collected from the various sources is

utilized in the formulation of business solutions and models for setting up a solar power plant.

Figure 2 : Sources of Research

KeyData

Sources

IndustryExperts

Market

In-house

Expertise

LiteratureReview



5

CHAPTER-2

SCENARIO OF SOLAR POWER IN INDIA

2.1 STATES WITH HIGHEST IRRADIATION

Key states like Rajasthan and Gujarat already have a dedicated solar policy in place and

are seeing the highest interest in solar installations. Tamil Nadu, Andhra Pradesh and Madhya

Pradesh have also released their solar policy. Irradiation matches almost directly with the

current solar growth hubs within India.

Table 2 : State-wise Irradiation

States/

Union Territories

Sample

Location

GHI

(kWh/m2/

Year)

Rajasthan Barmer Rd 2054

Gujarat Gada Village 2020

Tamil Nadu Salem 2005

Pudducherry Pudducherry 1998

Andhra Pradesh Anantapur 1995

Lakshadweep Lakshadweep 1991

Madhya Pradesh Neemuch 1991

Daman & Diu Daman & Diu 1966

Karnataka Bidar 1957

Maharashtra Dhule 1946

Dadra & Nagar Dadra & Nagar 1905

Goa Bicholim 1897

Chhattisgarh Kunkur 1895

Orissa Deogan 1887

Jharkhand Hazaribagh 1860

Kerala Thodupuzha 1822



6

Haryana Bhiwani 1803

Uttar Pradesh Farrukhabad 1798

West Bengal Durgapur 1777

Punjab Moga 1774

Andaman Nicobar Andaman 1762

Bihar Munger 1750

Uttarakhand Haridwar 1746

Delhi New Delhi 1735

Himachal Mandi 1707

Mizoram Aizwal 1707

Chandigarh Chandigarh 1699Jammu Kashmir Baramulla 1695

Manipur Palel 1678

Tripura Agartala 1662

Assam Tangla 1557

Meghalaya Shillong 1543

Nagaland Mokokchung 1526

Arunachal Dambuk 1295Sikkim Sikkim 1260

2.2 LAND AVAILABILITY

Rajasthan has been leading state in JNNSM phase 1 as it has a waste land area of more

than 25% of the total land. The four states of Gujarat, Madhya Pradesh, Rajasthan & Andhra

Pradesh have wastelands in the range of 10 – 15% . These four states are also amongst the high

power consuming states

Note : Irradiation data in India is not accurate



7

Table 3 : State-wise Distribution of Wastelands

SI. No. STATE NAME TOTAL

WL

TGA % to TGA

1 Andhra Pradesh 38788.22 275068 14.10

2 Gujarat 21350.38 196024 10.89

3 Madhya Pradesh 40042.95 308252 12.99

4 Maharashtra 38262.81 307690 12.44

5 Punjab 1019.50 50362 2.02

6 Rajasthan 93689.47 342239 27.38

Figure 3 : India - State-wise Wastelands Distribution

Source : Wastelands Atlas of India



8

Table 4 : Solar Potential in India

Solar Potential in India

Total land Area 3,287,263

No. of sunny days 300

Unit potential from 1 sq mt 4 kwh/day

Conversion efficiency (%) 15%

1 sq km (mn units per year) 120

0.5% of the land area (sq km) 16,438

Potential units (bn units) 1,972

The Potential is based on two assumptions. Assumption 1 : Unit potential for 1 sq. m

area is 4 kwh/day and taking solar cell efficiency conversion 15%. Assumption 2: Assuming that

0.5% of the land‟s area is brought under the solar net over 1900 billion units of electricity can be

generated.

2.3 COMPARISON OF TARGET STATES BY EASE OF LAND

ACQUISITION

A solar plant of scale greater than 10 MW requires a land of around 50 acres (5 acres/

MW). In India the land ownership in rural areas is distributed and hence convincing all the

owners/ farmers can be a tough task. For large scale serious developers, it is important to develop

land banks well in advance. The four main factors to be considered are quality of land surface,grid availability, availability of water and right of way.5



9

Table 5 : Performance of States on parameters vital for Solar Plant Installation

Gujarat and Madhya Pradesh lead in terms of ease of land acquisition, ease of

Governmental clearances and local support ( i.e. in all the three parameters important for setting

up a solar power plant).

2.4 INDIA‟S ENERGY MIX India primarily depends on fossil fuels to meet its energy needs and with increased

volatility in prices in fuel market, India must focus on RE sources to maintain our energy

security . India has an installed power capacity of almost 225 GW of which only 12.7% (over 28

GW) is based on renewable energy sources . Among renewable energy sources, nearly 68% of

the capacity is contributed by wind power alone and Solar Photovoltaic Plants account for 0.78%

of the total installed capacity (As of 31.07.2013).

Andhra

Pradesh

Gujarat Madhya

Pradesh

Maharashtra Punjab* Rajasthan

Radiation data (kWh/m2/ Year) 5.67 5.7 5.23 5.41 5.21 5.52

Land prices (lakhs/acre)4 to 6 6 to 8 5 to 6 8 to 10 3.5 to 5.5

Ease of land acquisition3 1 1 2 2 2

Ease of Governmental clearances2 1 1 2 3 2

Local Support

2 1 1 2 3 2

1: Effective and streamlined process 2: Moderate with some problem areas 3: Difficult to execute

*data not available/ private sources



10

Figure 4 : India's Energy Mix (As of 31.07.2013)

2.5 LITERATURE REVIEW

2.5.1 REGULATORY FRAMEWORK ENABLING GROWTH OF SOLAR

SECTOR

Electricity Act 2003

“(e) promote co-generation and generation of electricity from renewable sources of energy by

providing suitable measures for connectivity with the grid and sale of electricity to any person,

and also specify, for purchase of electricity from such sources, a percentage of the total

consumption of electricity in the area of a distribution license;”

NAPCC 2008

3% RPO by 2022

Tariff Policy 2006: Amendment in January 2011

“6.4 Non-conventional and renewable sources of energy generation including cogeneration:

58.60%

9.01%0.50% 2.10%

17.54%

9%

2%0.56%

1.03%0.04%

0.78%

12.71%

Coal Gas Diesel

Nuclear Hydro Wind

Small Hydro Power Biomass Bagasse Cogeneration

Waste to Energy SPV

Source : MNRE Website



11

(1) Pursuant to provisions of section 86(l)(e) of the Act, the Appropriate Commission shall fix a

minimum percentage of the total consumption of electricity in the area of a distribution licensee

for purchase of energy from such sources, taking into account availability of such resources in

the region and its impact on retail tariffs. Such percentage for purchase of energy should be made

applicable for the tariffs to be determined by the SERCs latest by April I, 2006.

(i) Within the percentage so made applicable, to start with, the SERCs shall also reserve a

minimum percentage for purchase of solar energy from the date of notification in the Official

Gazette which will go up to 0.25% by the end of 2012- 2013 and further up to 3% by 2022.”

Jawaharlal Nehru National Solar Mission 2010

20 GW of solar power by 2022

Phase I : 1000 MW

Phase II : 9000 MW

Phase III: 10000 MW

CERC: REC Mechanism 2010

Solar Specific RECs

Renewable Regulatory Fund

Fund created for spreading the costs due to disparity in scheduled generation and actual

generation of Solar and Wind power

2.6 PV V/S CSP : INDIAN SCENARIO

Indian Solar market is relatively a new market and inclined towards PV. PV is a much

simpler technology having a less gestation period. Other features are ease of installations andease of O & M.

2.6.1 KEY ISSUES IN CSP

Requirement of high DNI



12

Scarcity of water at high DNI areas

Long gestation period

Projects only viable for higher capacities as compared to PV plants

Table 6 : PV VS CSP (COMPARATIVE ANALYSIS)

PV CSP

Technology

Uses the light of the sun to

generate electricity

Focuses the heat of the sun to genheat and uses liquids to transfer he

turbines to generate electricity

Commissioning

period

Plant can be commissioned with 3-

6 months

Plant commissioning anywhere fro

36 months

Types PV, TF Fresnel, Parabolic Trough, Ste

Tower

Storage Indirect – Grid, Battery Banks Direct – Molten Salt, Oil, Steam

Application

Small to large scale Grid,

Rooftops, Residential, Off-grid,

Small installations

Hybrids, Large Scale Grid, Indu

Processes, Cooking, CHP

Advantages

Easy to deploy, short installation

time, low skill requirements, easilymaintainable, Lower costs, Minute

installations, Ubiquitous and long

life

Efficiency higher than PV, Imp

efficiencies of existing systems

Disadvantages

Low efficiencies, Expensive directstorage, Unviable for residential

power

Significant water requirement for coand cleaning, Needs vast tract

contiguous land, High DNI requirem

Specialized skills, High raw ma

usage, Lengthy Installations for

scale projects



13

Total PV capacity : 1,815 MW

Total CSP capacity : 55.5 MW

Average project size in India : 6.9 MW

2.7 CURRENT STATUS OF PROJECTS

India has touched the mark of 1800 MW Solar installed capacity as of 31.07.2013 with

most capacity addition after the introduction of JNNSM.

Figure 5 : YOY INCREASE IN SOLAR INSTALLED CAPACITY (MW)

2.11 2.12 2.12 10.28 35.15

941.24

1800.1

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Source : MNRE Website



14

Table 7 : Total Installed Capacity (Solar Power As of 31.07.2013)

Sr. No. States Installed Capacity (MW)

1 Andhra Pradesh 43.15

2 Arunachal Pradesh 0.025

3 Chhattisgarh 4

4 Delhi 2.525

5 Goa & UT 1.685

6 Gujarat 852.09

7 Haryana 7.8

8 Jharkhand 30

9 Karnataka 14

10 Kerala 0.025

11 Madhya Pradesh 11.75

12 Maharashtra 184.5

13 Odisha 13

14 Punjab 9.325

15 Rajasthan 584.75

16 Tamil Nadu 17.055

17 Uttarakhand 10.05

18 Uttar Pradesh 12.375

19 West Bengal 2

Total 1800.105

Source : MNRE Website and Bridge to India Solar Compass Reports



15

CHAPTER-3

SOLAR POLICIES ANALYSIS

3.1 NATIONAL SOLAR MISSION – JNNSM

National Solar Mission is a part of NAPCC policy and a main instrument of federal

Government to promote solar energy in India. Has a target 20 GW grid connected and 2 GW off

grid by 2022. JNNSM policy mechanism was created to provide the supply side driver for

RPO‟s. It is a federal scheme with payment security mechanism to infuse confidence in the

investors. The overall target is based on total installed capacity under JNNSM, state policies and

open market. JNNSM is a key driver of down ward trend of solar price in India through

competitive bidding. DCR is applicable only for NSM.

Table 8 : JNNSM Overall Targets (GW)

Targets (Overall)

Connectivity Phase I Phase II Phase III

Grid 1.1GW by 2013 Initially – 3 GW by 2017

Currently – 9GW by 2017

20 GW by 2022

(Cumulative)

Off - Grid 0.2 GW by 2013 1 GW by 2017 2GW

Table 9 : JNNSM Achievements (Phase I)

Achievement (Phase I)

Phase I - Batch I Phase I – Batch II

Allotted Installed Allotted Installed (Till may‟13)

140MW 130MW 340MW 300MW



16

3.2 NATIONAL SOLAR MISSION – JNNSM (PHASE I, BATCH I)

JNNSM (Phase I, Batch I) was launched in FY 2011. Projects were awarded by reverse

bidding mechanism, where developers provided discount on CERC benchmark tariff. Other key

features were payment security mechanism to secure payment in case of default by discom and

project size limited to 5MW which is unattractive for bigger players, domestic content

requirement of crystalline modules and tough time lines to adhere with 12 months to commission

from the date of signing of PPA.

Figure 6 : JNNSM (Phase I, Batch I) Projects Status

3.2.1 ASSUMPTIONS

Capacity – 5 MW

Capex – Rs. 125 million

CUF – 19 %

Tariff – 25 years

Debt : Equity – 70 : 30

Repayment – 12 years

150

1765

140 130

0

500

1000

1500

2000

Bids invited Bids received Projects alloted Projects completed

M W



17

Interest – 14 %

O&M – Rs. 1.1 million

3.2.2 LESSONS LEARNT

Difficulties in financial closure to new player with the timelines and due to high rate of

interest

The lower project size of 5MW with limitation of only one application per Company

including its Parent, Affiliate or Ultimate Parent-or any Group Company

Reduction in tariff is possible if capacity to be allotted is high.

Availability of unallocated power for bundling

3.3 NATIONAL SOLAR MISSION – JNNSM (PHASE I, BATCH II)

Launched in FY 2012, in JNNSM (Phase I, Batch II), the Project maximum capacity was

increased to 50 MW with max. 3 projects at different locations by one developer, subject to a

maximum of 100 MWDCR extended to solar cells (only for crystalline). The PPA structure is

same as batch I. The Time given for financial closure is within 180 days from the date of

signing Power Purchase Agreement. The Tariff quoted by Solar Direct is INR – 7.49, first sub

8 tariff in India which initiated tariff war in India.

Figure 7 : JNNSM (Phase I, Batch II) Projects Status

350

1915

340 300

0

500

1000

1500

2000

2500

Bids invited Bids received Projects alloted Projects completed

M W



18

Table 10 : Tariff Discovered (Jnnsm Phase I,Batch II)

Tariff Discovered

Minimum Maximum Wt. Avg.

Tariff Discount Tariff Discount Tariff

7.49 7.82 9.44 5.87 8.77

CERC Benchmark Tariff is 15.31

3.3.1 ASSUMPTIONS

Capacity – 12.5 MW (average)

Capex – Rs. 92.5 million

CUF – 19 %

Tariff – 25 years

Debt : Equity – 70 : 30

Repayment – 12 years

Interest – 13.5 %

O&M – Rs. 1.1 million

IRR projections not including AD benefits



19

3.3.2 LESSONS LEARNT

As tariff is same irrespective of the location, most of the projects are concentrated in

Rajasthan

Availability of unallocated power again a problem

A total of 340 MW projects are being developed in batch 2

Of which 300 MW have been commissioned.

3.4 RAJASTHAN SOLAR POLICY

Launched in FY 201, Rajasthan Solar Policy has a target of 10000-12000 MW by FY

2022 as the state aims to achieve grid parity by 2018. The policy got delayed as initially

government floated the RfP for 200MW which was later suspended. . RRECL the nodal

agency acts as the PPA signing authority for a period of 25 years. There is a requirement of first

registering the project with RRECL, with 20 lakh per MW as fees. RRECL followed L1 bidding

process for the allocation of projects i.e. developers were asked to match the lowest bid. Out of

100 MW target, only 75 MW matched the bids. The weak financial condition of the state

Discoms is a cause of concern for the developers. 50 MW RfP for 1 MW solar rooftop project is

currently open.

Figure 8 : Rajasthan Solar Policy (Projects Status)

100

185

75

0

50

100

150

200

Target Allocations Bids Received Alloted

M W



20

Table 11 : Rajasthan Solar Policy (Tariff Discovered)

Tariff Discovered


Tariff Discount Tariff Discount Tariff

6.45 1.97 8.1 0.32 7.13

RERC Benchmark Tariff is 8.42

3.4.1 KEY FACTS

Net worth criteria – Rs. 3 Crore/MW

Bank guarantee – Rs. 20 lakh/MW

Earnest money deposit of Rs. 5 lakh/MW

The minimum and maximum sizes of PV Projects are 5 MW and 10 MW

Creation of Rajasthan Renewable Energy Infrastructure Development Fund (RREIDF)

for Transmission network

For solar PV and CSP projects, if the power plant lies within 15km of the nearest

substation, the cost will be borne by the DISCOM and for any length above 15km, the

cost will be borne by the developer.

Solar based generation shall not be covered under scheduling procedure for Intra-state

Availability Based Tariff (ABT)

Allotment of government land @ 10% of market rate



21

3.5 GUJARAT SOLAR POLICY

On of the first states of India to have Solar Policy, before NSM was launched in FY

2009, applicable up to FY 2014.Envisages productive use of wastelands and introduced the

concept of Solar Parks (Charanka Solar park , current installed Capacity 214 MW). The Projects

are allotted at a fixed two part tariff which is front loaded on first come basis. The policy targets

only 500MW by 2014 whereas 852.5 MW of solar projects have already been installed. No

new allocation is expected in near future due to already achieved RPO targets and Gujarat being

a energy surplus state. Implementation of RRF can attract new projects for sale of solar power to

other states.

Figure 9 : Gujarat (Solar RPO Target)

Figure 10 : Gujarat (Projects Status)

0.5 %

1 %

1.5 %

0

0.2

0.4

0.6

0.8

1

1.2

1.41.6

2011-12 2012-13 213-14

872.5

852.5

840

845

850

855

860

865

870

875

Projects alloted Projects commissioned as on 31st July '13

M W



22

Table 12 : Gujarat (Feed in Tariff)

3.5.1 KEY FACTS

PPA with state distribution utilities.

Waiver from paying Electricity Duty and Exemption from „demand cut‟ to the extent of

50% of installed capacity.

The policy also defines projects under sale through „open access‟ out side the sate and

project for direct sale to obligated entities in the state.

No Cross subsidy surcharges applicable for Open Access obtained for third party sale

within the state.

Feed in Tariff for Photovoltaic (PV) plants

Commissioned in period 29

t Jan „10 to 28

t

Jan „12

29th Jan '12 to 31st

Mar '13

1 Apr '13 to 31st

Mar '14

1 Apr to 31s

Mar '15

With Accelerated Depreciation (AD) – Rs/Kwh

For first 12 years 15 9.98 9.13 8.35

For subsequent 13 years 5 7 7 7

Levelized tariff for 25 years 12.54 9.28 8.63 8.03

Without Accelerated Depreciation (AD) – Rs/Kwh

For first 12 years - 11.25 10.3 9.42

For subsequent 13 years - 7.5 7.5 7.5

Levelized tariff for 25 years - 10.37 9.64 8.97



23

Developer to furnish a BG @Rs 50Lakhs/MW at the time of PPA signing , to be refunded

if the developer commissions the project in time as per PPA.

Sharing of Clean development mechanism (CDM) benefit in ratio of 50:50 between Solar

developer and state distribution utility with whom PPA is signed.

Solar based generation shall not be covered under scheduling procedure for Intra-state

Availability Based Tariff (ABT).

Minimum Financial Criteria:

Net worth criteria of INR 2,00,00,000/ MW of the capacity

Annual turnover of INR 4,80,00,000/ MW of the capacity

Internal resource generated of INR 1,20,00,000/ MW of the capacity

3.6 ANDHRA PRADESH SOLAR POLICY

Andhra Pradesh Solar Policy was launched in FY 2012, applicable up to FY 2017. The

Policy has a target of 1000 MW. Bids of 1000 MW were invited and a total bids of 1712 MW

were received. Average tariff discovered in bidding was Rs. 8.707 per unit with average project

size of around 10 MW. Subsequently all bidders were asked to match the fixed price of INR

6.49/unit, which was only accepted for 418 MW. Initially only 53 MW unconditionally agreed,

while other have conditions such as change in location, size etc. The viability of projects at this

tariff is highly dependent on CAPEX and long term performance of plants. The arbitrary and

post bidding changes in tariff identification will hurt investor confidence permanently. Strong

balance sheet of the state distribution utility is a positive factor.



24

Figure 11 : Andhra Pradesh (Projects Status)

Table 13 : Andhra Pradesh (Tariff Discovered)

Tariff Discovered


Tariff Tariff Tariff

6.49 15.99 8.707

Tariff of Rs. 6.49 decided after bidding (L1)

3.6.1 KEY FACTS

PPA with state distribution utilities for a period of 20 years.

Incentives for a period of seven years from the date of implementation.

No wheeling and transmission charges for sale of power within the state.

1000

1712

418

0

200

400

600

800

1000

12001400

1600

1800

Capacity announced Bids received Bidds accepted as on 31st

July '13

M W



25

No Cross subsidy surcharges applicable for „Open Access‟ obtained for third

party sale within the state.

Waiver from paying Electricity Duty for captive consumption and third party sale

within the state.

Refund of VAT (paid in AP) for all the goods used for Solar developers.

Refund of Stamp duty and Registration charges paid for land purchase.

Banking of 100% of energy permitted for one year. The settlement of banking to be done

on monthly basis.

The policy promotes solar plants for captive use or sale of power to third party.

The evacuation line shall be laid by the APTRANSCO or distribution utility at the cost

of the project developer.

3.7 SOLAR POWER IN MAHARASHTRA

Maharashtra has no state solar policy. Maharashtra Govt. cleared the proposal of

Mahagenco to set up 150 MW solar energy project in Dhule district in May, 2011 to fulfill their

RPO requirements. Out of 150 MW, 100 MW of power to be produced through crystalline

technology and 50 MW through thin film technology. MahaGenco commissioned 125 MW out

of the 150 MW in June, 2013. This is the single largest solar PV plant in India. Maharashtra has

an installed solar capacity of 184.5 MW as of July, 2013. Similarly Reliance has developed a 40

MW project in Gujarat to sell power to Distribution company of Reliance in Mumbai to fulfill

their specific SPO. Tata Power is also developing a 28 MW project in Maharashtra for their own

Discom. The Mahagenco 150 MW project is funded by the State Govt. and KFW, a German

financial institution.

MERC has fixed the rate of solar energy at Rs. 17.91 per MW, but for this project, the

rate would be Rs. 12 per MW. Out of 125 MW, 75 MW has been commissioned by Lanco and

Juwi and 50 MW by Megha Engg & Aries Ingeneria Sistemas



26

Figure 12 : Maharashtra (Solar RPO Target)

3.7.1 KEY FACTS

The Mahagenco 150 MW project is funded by the State Govt. and KFW, a German

financial institution

MERC has fixed the rate of solar energy at Rs. 17.91 per MW, but for this project, the

rate would be Rs. 12 per MW

Out of 125 MW, 75 MW has been commissioned by Lanco and Juwi and 50 MW by

Megha Engg & Aries Ingeneria Sistemas

75 MW produced by crystalline modules and 50 MW from thin film

Maharashtra is further planning development of 500 MW solar power projects at various

locations in Maharashtra

174.5 MW of total installed capacity

3.8 PUNJAB SOLAR POLICY

Set a target of 1 GW of new solar capacity by 2022 in its „New and Renewable Sourcesof Energy Policy – 2012 „ with a target of 1000 MW by the year 2017 Solar RPO Target of 3%

(2500 MW) by 2020. Punjab is the first state to allow the use of agricultural land for setting up

projects. 50 MW is to be allotted for companies with no experience in setting up solar projects.

The minimum capacity of the project shall be 1 MW and the maximum capacity shall be 4 MW.

The net worth criterion is 2 Crore/MW. 250 MW is to be allotted for experienced companies.

0.25 0.25 0.25

0.5 0.5 0.5

0

0.1

0.2

0.30.4

0.5

0.6

% t a r g e

t



27

The minimum capacity of the project shall be 5 MW and the maximum capacity shall be 30 MW.

The net worth criterion is 1 Crore/MW. RfP for 300 MW grid connected Solar power was

launched in March 2013. Selection process was through competitive bidding. The benchmark

tariffs for the bidding process were the CERC tariff for SPV plants. 8.75 for companies not

availing accelerated depreciation and 7.87 for companies availing accelerated depreciation.

Projects under this category were underbidded.

Figure 13 : Punjab (Projects Status)

Figure 14 : Punjab (Tariff Discovered)

Tariff Discovered (Rs./KWh)


Category- I

( 1 to 4 MW)

7.20 8.71 8.27

Category- I

( 5 to 30 MW)

7.67 8.74 8.34

300

270

251

220

230

240

250

260270

280

290

300

310

Target Allocations Bids Received Projects Allocated

M W

The projects have to be

commissioned within 13 months



28

3.8.1 KEY FACTS

PPA with PSPCL for a period of 25 years

Punjab Energy Development Agency (PEDA) is the nodal agency

Project developers are given various incentives such as exemption from

100% electricity duty

Value Added Tax (VAT) on equipment

Entry tax for equipment supplies

Payment of fee and stamp duty for registration/lease deed charges for the project‟s

land requirement

Change of land use (CLU) charges, External Development charges (EDC)

NOC from pollution control board

Domestic content requirement

The developers have to submit bank guarantee worth Rs. 40 Lakhs

Higher tariffs than other states due to high cost of land and lower irradiation

Developers face a fine of 30% of this guarantee in case the project is delayed upto one

month and full guarantee will be encashed for delay upto 2 month

The RfP allows a period of six months for achieving a financial closure and 13 months

for commissioning from the date of signing of PPA

3.9 MADHYA PRADESH SOLAR POLICYLaunched in FY 2012. Target under the policy will follow the state‟s declared RPO. MP

has declared a solar RPO of 1% by 2016. In order to fulfill its RPO; installation of 360MW is

required. Before the policy the government invited bids for 200 MW. It received bids for 430

MW. But only125MW was allocated; Welspun (105 MW), Alpha Infra (20 MW) while 100



29

MW was awarded at pre-determined tariff of Rs. 8.05 per unit to four developers (25 MW

each).Policy to promote setting up of solar technology parks, for solar systems and ancillary

equipment manufacturing and generation units . These parks will be given preference in land

allocation & other facilities.

Figure 15 : Madhya Pradesh (Projects Status)

3.9.1 KEY FACTS

PPA with state distribution utilities for a period of 25 years.

There will be four categories of Solar projects

Competitive bidding process for selling power to MP Discoms

For captive use or sale of power to 3rd party within or outside the state

Under REC mechanism

Under JNNSM

Details for category 2 projects

For project on government land (Minimum capacity – 0.025 MW, Maximum

capacity – 100 MW)

Project land use permission within 3 months.

200

430

225

0

100

200

300

400

500

Capacity announced Bids received Bidds allocated

M W



30

Financial closure within 11 months.

Project commissioning within 17 months.

Performance guarantee of Rs. 5 lakh/MW

Wheeling grant of 4% of energy injected.

Electricity duty exemption for 10 years.

Banking of 100% of energy with 2% banking charges

VAT & entry tax exemption for solar equipments purchased.

Net worth criteria – Rs. 3 Crore/MW.

Bank guarantee – Rs. 5 lakh/MW.

Earnest money deposit of Rs. 20 lakh/MW

The evacuation line shall be laid by the developer.

For government land, maximum land use permission at 3 hectares/ MW.

For private land, exemption of 50% on stamp duty.



31

CHAPTER-4

STAKEHOLDERS ANALYSIS

4.1 KEY DEVELOPERS

Over 1.8 GW of total installed capacity

The developers can be segregated into two categories

Large developers – dedicated to large scale solar farms

Small developers – single time investors

Around 1450 MW installed under state policies and JNNSM

1452 MW of projects are concentrated in Gujarat and Rajasthan only

Table 14 : Key Developers in India (Solar Power)

Key Developers in India MWs Commissioned Pipeline Key States

Indian Developers

Welspun 70 130 MW Madhya Pradesh

55 MW Rajasthan

100 MW Chhatisgarh

Mahagenco 125 Maharashtra

Azure 57 Rajasthan, Gujarat, Punjab

Kiran Energy 40.6 Rajasthan, Gujarat

Mohan Brewries 100 Tamil Nadu

Malpani Group 51 Rajasthan



32

Adani 40 Gujarat

Reliance 40 Rajasthan

Figure 16 : Developers break up State-wise

47%

33%

10%

2%2%

1%

5%

Gujarat Rajasthan Maharashtra AP Jharkhand Tamil Nadu Others



33

4.2 EPCs

4.2.1 SOLAR PROJECTS – DIFFERENT MODELS EXISTS

The existing business model consists of various stake holders

Utilities

IPP‟s

EPC contractors

Sub – contractors/component suppliers

Figure 17 : Existing EPC Models

EPC withfull scope

• Includes PV module

• BOS

• Generation warranty orPerformance ratio

EPC w/omodules

• Modules/invertersexcluded

• Plant performanceguarantee

• Generation warranty isgenerally not accepted

Subcontractor

• Guarantees onlysupplier products andsystems

• Inverters, String boxes,MV/LV switchgears,transformers andsubstation

• Ebop as one package

PV OEMas EPC

• Scope starts from landdevelopment upto power evacuation

• Sources thecomponents fromdifferent players

Source : ABB



34

4.2.2 SOLAR EPC MARKET SPACE

There are several EPC companies in India both from India as well as international market

• Mosebaer EPC is the leading Indian EPC company with over 200 MWs of installed

capacity in India alone

• Also the company is having presence in other countries as well

• L&T EPC is having commissioned projects of 155 MW

• All its commissioned projects are in the states of Gujarat and Rajasthan( 1 MW

in UP)

• JUWI is an international EPC company with having a successful track record in

international solar market

• They have also commissioned 77 MW in India

• Sterling & Wilson is another leading Indian EPC

• Currently 83.5 MWs of projects have been commissioned

• They have employed crystalline technology majorly in MW projects

• Waree is also an Indian EPC company having an experience of 5o MW of solar PV

projects

EPC companies are ready to work in various models and arrangements with the developers.

Also it is important to understand that the industry benchmark is followed throughout,

however the companies structure their contracts in such a way that

•

Limits their scope of work

• Additional charges for additional services offered

• Sometimes the warranties and performances may get compromised due to the

financial pressure from the developer.



36

Figure 19 : Preferred Technology (NSM Phase I, Batch I)

Figure 20 : Module/Cells supply break-up

67%

29%

4%

Thin Film Crystalline Both

71%

29%

NSM (551 MW)

Foregin Domestic



37

Figure 21 : Inverter break up in Indian Solar Domain

As of January 2013, central inverters accounted for 95% of the installed capacity in the country.

4.3 BUSINESS MODELS FOR SOLAR PLANTS : FINANCIAL VIABILITY

4.3.1 APPC + REC

4.3.1.1 KEY FACTS

Physical energy sale to local discom at APPC

Redemption of REC at exchange

The APPC is normally rolling and for payment purpose previous year APPC is taken

Every Discom has its own way to calculate APPC

The main viability of project depends on REC revenue

The bankers are not interested in such projects due to high uncertainity of REC revenue

Requires links in Govt. & Discoms to sign PPA

No need to pay open access charges

Less losses as injection is at nearest substation

SMA

Schneider ElectricAnsaldo

Statcon

0 100 200 300 400 500

SMABonfiglioli

Power One

Schne

ider Electr

ic

ABB AEGAnsal

doRefuS

olSieme

nsStatco

n

Electr

onicaSante

rno

Other s

Sales (MW) 452.26259.5220.41 105 94.8 92.43 55 50 30 25 21.3 33

Inverter Market share : 1439 MW



38

4.3.1.2 Author‟s Analysis

Least attractive model nowadays in industry

Raising debt funding an issue

As based on REC revenue hence no financial projection can be done post 2017

As injection is at local discom network for localised consumption, grid downtime can be

high

More suitable for states with somewhat higher APPC & high % growth in APPC

Developer Developer

Discom @ APPC

Low & continuous

Trading of REC at

Exchange

High revenue but non –

compliance flow due to

REC trading & RPO

compliance

Green attribute

Physical sale ofelectricity

Figure 22 : APPC + REC Business Model



40

Figure 23 : Pseudo Captive Business Model

4.3.3 Third Party Sale + REC

4.3.3.1 KEY FACTS

Physical sale of power to private consumers at mutually agreed price

Sale of REC through exchanges

Viability of project depends on PPA with private party

Requires open access clearances

Sale of power outside state is difficult due to high losses and infirm nature of solar

Equity in SPV

99% preferential shares (held by theinvestor)

1% common shares

26% held by theconsumer

74% held by the investor



41

Required to pay CSS and other wheeling and transmission charges which add up to the

landing cost of power

Such projects are already going in the wind sector

Emmvee has done an open access project funded by IREDA

4.3.3.2 AUTHOR‟S ANALYSIS

Need extensive search for potential clients

Identification of consumer/Off taker is the key to success, but requires rigours

background study

Due diligence of consumers for financial strength and future of their industry

Open access clearances are not easy to get, as the Distribution companies are never

willing to let go the high paying industrial clients.

Open access might result in additional time consuming processes with added costs.

High returns can be achieved in states like Maharashtra and Andhra Pradesh where tariffs

are on higher side

The Viability of the project depends on cross subsidy surcharge, wheeling and

transmission charges.

The project location should be near to consumer to save transmission and wheeling losses

The load curve of consumer should match solar generation

4.3.4 BIDDING IN STATE POLICIES/ NSM

•

The biddings are crashing as new or strategic developers bid aggressively.

• The PPAs are however one of the most bankable.

• Also a lot of capital and time is invested in the bidding process



42

CHAPTER-5

RESULTS

5.1 PSEUDO CAPTIVE MODE : WIN – WIN SITUATION FOR ALL

Incentives Hurdles

Highest rate of return

Least number of

government clearances

Minimal losses, as

consumption near togeneration

Optimal use of available

space

Pre-defined exist

policy; with transfer of

asset to developer at the

end of contract

Sharing of REC

between developer and

consumer

No upfront investment

by consumer

Consumer adds value to

its brand by going green

Consumer Identification is crucial

Niche market segment

Strength of PPA & contract

Customer Industry performance and forecast is a big

risk

In case of dispute/ week contract ; change of off-taker

not possible



43

5.2 OPEN ACCESS + REC

Incentives Hurdles

Highest IRR in states where:

• Tariff is high

• T&D charges and losses

are low

•

Cross Subsidy

Surcharge is low

Can be a solution for energy deficit

states

High potential and ease of installation

near load centre

Green Corridor and RRF will support

the mechanism further

Improvement in overall structure of

power sector will:

•

Reduce the losses

further

• Reduce the existing

Cross Subsidy

Surcharge

Open Access clearances are a tough

task

NoC from discom; as

due to loss of high

paying consumers their

revenue takes a beating

Grid connectivity is a

cumbersome process

Addition to capital cost

Tough competition from thermal and

wind energy

Inclusion of Open Access charges in

the financial model is difficult as they

change periodically



44

5.3 PROJECTS UNDER SOLAR POLICIES – AN OPPORTUNISTIC

MARKET FOR LOCAL DEVELOPERS

Incentives Hurdles

Long term bankable PPAs in

comparison to Open access

projects

Less government clearances are

required

State government provide single

window clearances through nodal

agencies

No need to pay hefty CSS charges

Developer has to bear network

losses only up to the point of

injection

Lucrative investment opportunity

for local cash rich investors to

take benefits like A.D

Less competition than JNNSM

Aggressive and un-realistic

biddings by local developers

leading to crashing of FiT market

Financial strength of local

DisCom is a concern

Fear of change of state policy like

in Andhra Pradesh where

developers are asked to match

the very low L1 bid and like

Gujarat where State DisCom

approached regulatory

commission for lowering of

existing tariffs.

High net worth criteria and pre-

expense of bidding eligibility

Risk of non-selection

Incentives



45

5.4 BUSINESS MODEL WHERE VIABILITY DEPENDS ON REC ARE

NOT BANKABLE – APPC + REC

Incentives

Hurdles

Ease of getting PPA at APPC cost

No need to take cumbersome open

access clearances

Payment of network charges and

losses only up to the point of

injection

Viability of projects completely

depends on the REC market which

in turn depends on RPO

compliance

Non-compliance of RPO by most

of the obligated entities in absence

of any penalty mechanism

No clear picture of picture

regarding REC pricing post 2017

Banks are pessimistic about

financing such projects



46

CHAPTER-6

CONCLUSIONS

Market Scenario The market is still nascent with more than 50% of developer belongings t pure investor

category

It will move towards Open Access & Captive based models from FiT based models asIndia approach grid parity

Developer should target FiT market in states on opportunistic basis

Highly Recommended Pseudo Captive model

Third Party Open Access sale with highly bankable PPAs

Viable Options

Projects under state policies through competitive bidding or through direct allocation

Opportunistic NSM through Viability Gap Funding

APPC + REC

ProjectEconomics &

Costing

ProfitableSales Models

CommerciallyViable solar

Project



47

STUDY OF GREEN CORPORATE SOCIAL RESPONSIBILITY (CSR)

SOLUTIONS

CHAPTER-7

7.1 INTRODUCTION TO GREEN CSR

The rapid pace of industrialization has exposed the environment to higher levels of risk.

Pollution, greenhouse gas emissions, global warming and depletion of ground water level are

serious issues which cannot be addressed with the Government‟s interventions alone. CSR

(Corporate Social Responsibility) is the buzzword and it‟s time for the Corporates to do their bit

for the environment which has been endangered with the industrial activities.

“Corporate Social Responsibility is the continuing commitment by business to behave ethically

and contr ibute to economic development whil e improving the qual ity of l if e of the workf orce

and their families as well as of the local community and society at large.”

Corporate Social Responsibility is broadly categorised by corporates under nine different

segments as highlighted in Figure 24.

Figure 24 : Segmentation of Corporate Social Responsibility

1. Eradicating Extreme Hunger and Poverty

2. Promotion of Education

3. Promoting Gender Equality and Empowering Women

4. Reducing Child Mortality, Improving Maternal Health

5. Combating Diseases Such as AIDS, Malaria

6. Ensuring Environmental Sustainability

7. Employment Enhancing Vocational Skills

8. Social Business Projects

9. Funds For Socio-economic Development



48

7.1.1 ORGANIZATION SPENDING ON CSR ACTIVITIES

Currently, it is very difficult to find information on CSR activity in India. This problem

partially stems from the fact that a lot of current CSR activity is donation‐ based rather than

project based, and as such there is only a small amount of information on company websites and

in financial reports. There are very few project impact studies and long‐term studies detailing the

kind of positive impact CSR activity has on a given community. An additional problem appears

to be that very few companies are spending anywhere near 2% of their average profit after tax

(PAT).

Figure 25 : Spending on CSR Activities by 100 Profitable Companies in India 2012

Source: Forbes India Survey

According to a Forbes Study, the top 100 most profitable companies (based on net sales

in 2012) are only spending a total of Rs. 1763 crore on CSR activity, whereas 2% of PAT would

be Rs. 5665 crore. This accounts for a difference of Rs. 3902 crore that should have been spent

on CSR in the fiscal year 2012. Important to note is that 47% of companies surveyed either did

not have CSR data or were not profitable. Therefore, the actual funds that should have been spent

on CSR activity could in fact be greater than the stated Rs. 5665 crore.

7.1.2 SEGMENT WISE CSR SPENDING

CSR in India has been slowly developing over the last forty years, but has taken a great

leap forward in the last five, and again has been increased with the mandatory stipulations in the

45%

6%

1%

47%

Companies Spending lessthan 2% PAT Companies Spending morethan 2% PAT Companies Spending 2%PAT Unknown CSR Spending

Among Top 100 Companies in India, 92% of them spend less than

2% of their PAT on CSR

I n 2012 Spending on CSR, INR 1763

Cror e, whereas 2% of PAT , INR 5655



49

Companies Bill 2011. As of 2010, approximately 49% of India's 500 largest companies are

reporting on CSR.

The majority of this CSR expenditure appears to be donation based rather than

project

based, and unfortunately there is not much information on the amounts being

donated, nor measurable impact of said donations.

Figure 26 : Segment wise CSR Spending by Organizations in 2012

Source: ASSOCHAM

7.1.3 SECTORS CONTRIBUTING IN CSR ACTIVITIES

Based on an ASSOCHAM study, there are clear areas of improvement for corporations to

invest in CSR activities, as currently only half of the top 500 Indian corporations are reporting a

measurable amount of CSR activity. More reporting is clearly necessary if adequate data is to be

collected on the state of CSR activity in India. If corporations can partner with NGOs, there

should be a measurable increase in reporting of CSR activities, as well as data collected

regarding the success of CSR projects.

However, without good reporting standards in place it becomes very difficult to measure both the

scope and the effect of CSR across the country. With partnership between corporations, NGOs

and the government, reporting

standards should increase and become more transparent, and thus will result in greater

sustainability both of projects and of profits.

18.83%

15.65% 12.72%

9.05%

5.16%

37.59%

Community

Welfare

Education Environment Health Care Rural

Development

Others

Most of CSR spending is Donation Based rather than Project Based



50

Figure 27 : Sectors Contributing in CSR Activities in 2012

Source: ASSOCHAM

7.1.4 FOCUSSING ON ENVIRONMENT AND SUSTAINABILITY

Sustainability, climate change, energy and energy efficiency, green consumption and

urban sustainable development are globally recognized challenges for the 21st century. Tackling

these challenges requires a strong commitment from companies and private sectors, governments

and agencies, NGOs.

The managers and professionals of tomorrow will require knowledge to understand the

interconnectedness of economic, environmental and social dimensions, and competencies to

manage and contribute the change towards a more sustainable world. Corporate social

responsibility (CSR) is the way to achieve a greener world. CSR is not a new concept, but over

the past decade its focus has shifted from labour issues and local philanthropy toward

environmental actions.

Numerous factors are driving this trend, including managerial altruism, cost-cutting efficiency

improvements, the emergence of a new generation of green consumers, and savvier business

leaders who take pro-active steps to avert political conflict rather than reacting to public pressure

after the fact. Corporations are becoming more and more aware that they should be more careful

with the footprints we leave behind. Huge corporations such as Wal-Mart are selling organic

13.11% 11.71% 9.65% 8.82% 8.12%

48.59%

FMCG and

Consumer

Durables

Chemicals Software and

ITES

Textiles Construction Other

FMCG, Chemicals & IT Sectors Contribute

35% of the Total Spending on CSR in 2012



52

Figure 29 : All India Generating Capacity (In MW as of 31.07.2013)

Source: Central Electricity Authority

The National Action Plan on Climate Change (NAPCC) has taken into consideration the

renewable energy potential including wind power potential in outlining the approach for the

development of renewable energy in the country. In keeping with the objectives and approach

of NAPCC, the Ministry of New and Renewable Energy has set a target of capacity

addition of 29,800 MW from renewable energy sources during 12th Plan period.

This includes 15,000 MW from wind, 10,000 MW from solar, 2,100 MW from small hydro and

2,700 MW from biomass including waste to energy. A Gross Budgetary Support of Rs. 19,113

crore has been allocated for the renewable energy activities for the 12th Plan period.

Figure 30 : Source wise and YOY Targets set during 12th Plan Period (MW)

Source: Ministry of Power

153188

4780

3962327542

Thermal Nuclear Hydro Renewable Sources

M W

Source 2012-

13

2013-

14

2014-

15

2015-

16

2016-

17

Total

Wind Power 2500 2750 3000 3250 3500 15,000

Small Hydro Power 350 400 400 450 500 2,100

Bio-Power (including Waste to

Power)

400 400 520 550 830 2,700

Solar Power 1000 1000 2000 2500 3500 10,000



53

7.2.1.2 AMALGAMATION OF RENEWABLE ENERGY & CSR

Renewable energies, such as wind, solar, and geothermal energies, are no longer

considered to be merely complementary to thermal or nuclear power generation. Rather, they are

widely recognized to have a core role in fulfilling our energy needs. Renewable energies such as

wind, geothermal, and hydraulic power emit very little CO2, one of the causes of global

warming. These energies, by definition, cannot be depleted and help prevent the depletion of

finite energy sources. Development and supply of these energies, therefore, is a very rewarding

activity that can greatly contribute to global environmental conservation.

Businesses can make a very positive intervention in the society by adding renewable energy

projects to their Corporate Social Responsibility (CSR) activities, which will help to improve the

socioeconomic conditions of the marginalized. Organization‟s obligations are now extending beyond maximizing shareholder value and now also include steps to improve the quality of life

of surrounding community and people. As a part of CSR a business can set up Renewable

Energy Technologies like Solar, Biogas to serve energy needs.

Decentralized electricity generation using renewable and its distribution can become the new

frontiers for CSR activities. Such projects reduce load on the grid, bridge the growing electricity

deficit, provide regular electricity supply and generate local employment. As part of a CSR

initiative in renewable space, organizations can set up renewable energy systems in villages thatwill be maintained by villagers who have undergone training.

Installing a mix of solar panels, wind mills and biogas plants can make village energy self-

sufficient or can opt for procuring renewable energy for their self-consumption from Renewable

Energy Certificates of bilateral arrangements with Renewable energy developer. By adding

renewable energy projects to their CSR activities, businesses will make a very positive

intervention that will go a long way in improving the socioeconomic lot of disempowered.



54

Figure 31 : Renewable Energy Initiatives under CSR Activities

7.2.1.3 GRID CONNECTED : RENEWABLE ENERGY IS THE FUTURE

The growing energy needs of the emerging economics, specifically India, risks enhanced

environmental damage from conventional carbon based sources of energy. Renewable Energy

technologies are deployed to curb the growing gap between the demand and supply of power,

which is due to increase in the per capita energy consumption and importantly, the much hyped

climate change concerns. The future of solar photovoltaic development in India seems to be very

bright. India‟s solar mission envisages the promotion of solar energy to harness and distribute

environment-friendly power, available with high scalability, for sustainable economic growth by

empowering national energy security.

Accelerated growth is expected in renewable energy sector with favorable conditions in terms of

potential, technical support facilities, policy framework and regulatory environment, robust

manufacturing base and investor‟s confidence in the country.

7.2.1.4 INDIA POWERING AHEAD WITH SOLAR

India is located within the equatorial belt and receives plentiful solar radiation. Most parts

of the country receive 250 to 300 days of bright days in a year. The government and private

sectors are currently busy with the development of a large number of Solar Power Projects in

India. Even though the percentage of power generated through solar energy in India is just a tiny

fraction of its overall power production, it shares the number one spot in solar power generation

capacity along with the United States. One of the major Solar Power Projects in India is an

ambitious project undertaken by the government where it plans to generate 20 GW of power

GreenEnergyCSR

GridConnectedSolutions

Off-GridSolutions

RenewableEnergy

Certificates

EnergyEffeciency



56

As per various estimates, the total potential for wind energy is around 46 - 70 GW. MNRE

envisages wind to constitute ~70% of overall renewable capacity translating to 2-3 GW of new

capacity per year till 2020.

7.2.3 OFF-GRID SOLUTIONS

Often remote areas or islands are not connected to the national power grid. They generate

their own power from a diverse range of small local generators using both fossil fuels (diesel,

gas) and locally available renewable energy technologies (solar PV, wind, small hydro, biomass,

etc.) with or without its own storage (batteries) depending on the technologies

7.2.3.1 SOLAR TECHNOLOGIES - ONE OF THE BEST SOLUTIONS TO

LIGHT UP AND ELECTRIFY RURAL INDIA

The rural solar off-grid market has so far been driven mainly by government and NGO

efforts. Though there has been increasing interest from corporates and investors (domestic and

international) in exploring viable business opportunities to serve India‟s vast rural, unelectrified

population.

In India, close to 70-75 million households in rural areas (approximately 400m people or 80,000-

90,000 villages) lack access to grid-connected electricity. Electrified households in the rural

areas pay INR 106 a month on an average for electricity. This is less than the INR150 which un-

electrified households spend for light from a kerosene lantern. Assuming such households are able

and willing to pay the same as electrified households, the market potential is in the range of INR 90-95

billion per year.

Around 250,000 grid-connected villages with frequent power outages further increase this

potential. There are three key options for providing rural, off-grid, solar PV-based electricity

solutions: small applications with integrated power generation capacity (e.g. solar lanterns and

solar street lights), solar home systems (SHS) and mini-grids.

Falling prices of photovoltaic cells in the last two years have increased the viability of solar

energy projects. Solar powered cell phone charging stations where the villagers can charge their

cell phones for a certain nominal payment will also help boost the off-grid solar PV market along

with supporting the rural enterprise.



57

Figure 33 : Solar powered cell charging stations

“Babulal charges the cell phones of the villagers @ INR 5”

7.2.3.2 SOLAR - HYBRID SYSTEMS

With the advent of solar hybrid systems, urban India too is catching up. In these systems,

solar PV modules charge the battery during day time while WEGs charge the battery during

monsoon. Although current installed capacity of these systems is very low, it is expected that

these systems will grow in areas with good wind potential.

7.2.3.3 BIOMASS POTENTIAL

Most of rural India is dependent on biomass for fulfilling its energy needs. However,

burning biomass comes with several hazards to personal health and the environment. Off-grid

renewable energy applications present a viable alternative for mitigating the country‟s energy

risk in the face of fuel scarcity. In rural India, energy is mainly required for cooking, lighting and

agricultural activities. Biomass is the main source of energy due to easy availability. Around

87% of the off-grid installed capacity in the country comes from biomass (including Waste to

Energy). Figure 33 depicts the off-grid RE Capacity (MW) as of 31.07.2013: Maximum capacity

is from biomass cogeneration followed by biomass Gasifiers while Solar PV Systems have an

installed capacity only of 97 MW.



59

It is in this context that the concept of Renewable Energy Certificates (REC) assumes

significance. This concept seeks to address the mismatch between availability of RE sources and

the requirement of the obligated entities to meet their RPO. It is also expected to encourage the

RE capacity addition in the States where there is potential for RE generation as the REC

framework seeks to create a national level market for such generators to recover their

cost. Central Electricity Regulatory Commission (CERC) has notified Regulation on Renewable

Energy Certificate (REC) in fulfillment of its mandate to promote renewable sources of energy

and development of market in electricity. The framework of REC is expected to give push to RE

capacity addition in the country.

„Voluntary buyers can purchase RECs from trading platform of Power Exchange of India

L imi ted or I ndian Energy Exchange, as part of CSR activity or to market their product as

Green Product.‟

The Department of Public Enterprise (DPE) recently expanded the scope of the Energy

management Program of Public Sector Enterprises (PSEs) by including renewable energy as a

specific activity to be pursued by public enterprises. The Ministry of Heavy Industries and Public

Enterprises has asked all Central Public Sector Enterprises (CPSEs) to set up renewable energy

projects or voluntarily purchase Renewable Energy Certificates (RECs).

7.2.4.2 VOLUNTARY REC MARKETRECs have been traded in India for 25 months now (since March 2011), and the market

has grown in its value and depth. However, one aspect of the REC market that is common

internationally has largely remained absents – the procurement of RECs on a voluntary basis to

meet Corporate Social Responsibility (CSR) / Green Marketing.

The procurement of RECs on a voluntary basis help corporates meet Corporate Social

Responsibility (CSR) or Green Marketing of their product without investing to the renewable

energy power projects any organization can use RECs to offset their carbon footprints created

through the consumption of electrical appliances, as these electricity is generated somewhere in

thermal plants burning coal as a fuel.



60

7.2.4.3 REGISTERED CAPACITY UNDER REC MECHANISM

There is total of 3,615 MW (by 09 June 2013) of renewable energy capacity registered

under REC mechanism.

Figure 36 : Registered Capacity under REC Mechanism (MW)

Recentl y, Neo Remark Marketing Services LLP (RE- Mark), India‟s first labeling program

which identi fy product, organizations and events which uti li ze renewable energy in their

operati ons. RE-M ark assisted I ndianPowerSector.com in procur ing RECs and provided label

making them India‟s First Green Website uti li zing 35% of Renewable Energy.

7.2.4.4 MARKET SIZING

As per the latest amendments to the Companies Bill by the Union Cabinet, based on

recommendations of the Parliamentary Standing Committee on Finance and inter-ministerial

discussions, CSR has been made obligatory on part of companies. The qualifying criterion that

would make the CSR mandatory is: Companies having a minimum net worth of INR 500 crore

or turnover of INR 1000 crore or a net profit of INR 5 crore during any financial year. Regarding

the amount of expenditure on CSR activities, it has been stipulated that at least 2 percent of the

average net profits of the company during three preceding financial years shall be spent on CSR

2033683

567

188

Wind Bio-Fuel Cogen Biomass Small Hydro

Source : MNRE



62

Model II

Owing to the fact of a very preliminary estimate of voluntary renewable energy market size, one

another way of estimating the market size is devised through assuming a fixed percentage of a

corporate expense on RE requirement of its total revenue. As per a study by Bloomberg New

Energy Finance and Vestas on Global Corporate Renewable Energy Index (CREX) 2012, using

data from the Bloomberg terminal, it has been calculated that total cost of renewable energy is a

small proportion of the publically listed companies‟ revenue on average i.e. 0.02 percent. Hence

estimating market potential of voluntary renewable purchase through this figure, by assuming it

as a standard and replicable for Indian market, a market size of INR 745 crore is obtained

(excludes 20 percent component). Again utilizing 80:20 principle, an overall market size of

voluntary renewable purchase of INR 931 crore is obtained.

Table 15 : Market Potential Estimation of Unrestricted Voluntary REC Market in India

(INR Crore)

Model 1. Lower Bound Market Size Estimation of Voluntary REC

purchase

Profit After

Tax

(PAT)

Average

PAT

CSR

Budget^

Expenditure

on REC

Purchase by

ET 500^^

Expenditure

by Non ET

500 on REC

purchase^^^^

Market

Size

09 260298 326637 6532 653 163 816

10 308316

2011 411298



63

Model 2. Upper Bound Estimation of Voluntary REC Purchase

Revenues Average

Revenue

Expenditure

on REC

Purchase by

ET 500^^^

Expenditure

by Non ET

500 on REC

Purchase^^^^

Market

Size

2009 3329277 3726556 745 186 931

2010 3531540

2011 4318850

*PAT corresponds to sum of total PAT of top 500 companies as per ET list for a particular year

^ 2% of Average PAT

^^ 10% of CSR Budget

^^^ 0.02% of Average Revenue

^^^^ 20% of Expenditure on REC Purchase by ET 500

#Revenue corresponds to sum of total revenue of top 500 companies as per ET list for a

particular year

7.2.5 ENERGY EFFICIENCY MEASURES

Energy efficiency is a way of managing and restraining the growth in energy

consumption. Energy efficiency offers a powerful and cost-effective tool for achieving a

sustainable energy future.

Improvements in energy efficiency can reduce the need for investment in energy infrastructure,

cut energy bills, improve health, increase competitiveness and improve consumer welfare.

Environmental benefits can also be achieved by the reduction of greenhouse gases emissions and



65

Figure 38 : Electrical Energy Savings in Terms of Equivalent Avoided Capacity (MW)

Source: powermin.nic.in

It is estimated that National energy Conservation Award Scheme would help in motivating the

other energy consumers in joining and promotion of a nationwide energy conservation

movement.

“1 unit energy saved = 1.5 units energy generated”

7.3 WAY FORWARD FOR GREEN ENERGY BASED CSR INITIATIVES

Build awareness among the CEOs and designated CSR Heads regarding best practices for

Greener approach to achieving the proposed CSR target

Such sustainable approach should integrate renewable and energy efficiency based CSR

interventions with other specified sub-sectors for CSR such as Education; Heath; Rural

Enterprise; Employment etc

Bringing together the CSR funds and funds from development partner agencies such as

World Bank; UNDP, UNDIO, ADB, JICA and others to make a substantial pool for

green energy development for the society

Government agencies like MNRE, BEE, EESL, MOCA, CERC, CEA , Renewable

development agencies to provide regulatory framework for green CSR projects to make

them viable technically and commercially

45

100 90

122103

155

252 245

308325

359 357

0

50

100

150

200

250

300

350

400

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

M W



66

Joint effort of renewable energy development companies to provide required services to

build green energy projects

CERC and SERC should allow off-grid small scale renewable projects to be considered

eligible for REC (should include 1 NGO, 1 corporate house under CSR and end users as

stake holders). This will make micro – grids more viable and self-sustainable

Promoting the voluntary REC market can provide the following social benefits to India

The renewable sector growth will be fuelled by the demand , which somewhat

slowed down after failure of implementation of RPO

If REC as a market becomes mature, this will provide a new sustainable model to

provide green power to people who need it most. The corporate can install

renewable projects in rural areas or where there is no availability of grid power at

all or only for few hours a day as their CSR. The projects can be made sustainable

by providing cheap power to the consumers and claiming RECs on it.

Projects done under CSR should be exempted from paying all kinds of taxes

(even on REC income). The profits from such projects should in turn be used for

other 9 verticals of CSR.

The REC mechanism already in place with few changes can be a game changer

for both corporates willing to do CSR more effectively and also for the society

Allowing corporates to buy REC directly from Re-Generators, who are supplying

power to rural or under – privileged area at a subsidized rate. This will reduce the

burden of government from subsidy and also attract more private investment in

rural and un-electrified areas of country.

CSR as a business strategy



BIBLIOGRAPHY

I. Wastelands Atlas of India - 2011

II.

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Annual Conference on “Solar Power in India” Preparing for 10 GW July 1-2, New

Delhi

III. Bridge to India Solar Compass Reports (2011-13)

IV. Energy Statistics Report 2013

V. Movya EPC Report

VI. A Report On Utility Scale Solar Power Plants by IFC

VII. 3rd

Annual Conference On Global Solar EPC Summit On 3rd

-4th

June,2013

VIII. Sunrise In Gujarat Whitepaper By Resolve

IX. Infraline Energy‟s 2nd

Annual Conference on Solar Power- Future Possibilities on May

28,2013

X. Rajasthan – Rfp proposal for 50 SPV Projects (1 MW each)

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to-come-up-in-maharashtra-111052000204_1.html

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power-welspun-energy-mw

XIII.

http://www.mahagenco.in/index.php/projects

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connected-pv-projects-released/

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moser-baer-essel-and-azure-major-winners/

XVII. http://www.rrecl.com/index.aspx

http://www.business-standard.com/article/economy-policy/world-s-largest-solar-project-to-come-up-in-maharashtra-111052000204_1.html




http://articles.economictimes.indiatimes.com/2013-06-14/news/39976619_1_solar-power-welspun-energy-mw





http://peda.gov.in/eng/index.html

http://www.re-solve.in/perspectives-and-insights/punjab-solar-rfp-for-300-mw-grid-connected-pv-projects-released/




http://www.re-solve.in/perspectives-and-insights/punjab-solar-bids-opened-welspun-moser-baer-essel-and-azure-major-winners/




http://www.re-solve.in/perspectives-and-insights/rajasthan-solar-75-mw-of-projects-to-be-awarded-to-7-companies/

http://www.re-solve.in/perspectives-and-insights/rajasthan-solar-75-mw-of-projects-to-be-awarded-to-7-companies/





http://peda.gov.in/eng/index.html






105 kalyan verma report

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