#1Leveraging the Rooftops of C&I Sector to Increase Renewable Energy Mix Image courtesy: Shutterstock PTC India Limited PTC India By: Chandra M. Verma Astt. Vice President, PTC 5-March-2020 1#2PTC: An Integrated Energy Player PTC India PTC India Ltd. (PTC), was established in 1999 by Govt. of India through a Cabinet Decision as a Public-Private Initiative Power Trading Investments Domestic OTC market; Short/Medium& Long-term trades (utilities) Retail (Open Access consumers) Cross Border trade PTC India • . Early stage support as Equity Investor/co-developer PTC India Financial Services Ltd. Renewable Energy PTC Energy Limited -Wind Power Projects Scheduling and despatch of Solar Power (750 MW-SECI) Scheduling and PPA of 1st 1,000MW ISTS Wind Projects Trading of Solar Power (MOU with SECI) . Advisory Services Portfolio Management Services • Energy efficiency • implementation Transmission Infrastructure based services#3Wind & Solar Portfolio: Approx. 300 MW operating assets Project 1 Distt Ratlam, MP COD Total Installed Capacity : March 16 WTG Supplier : 30 MW : GAMESA (G97) Project 2, Distt Mandsaur, MP COD : March 16 Total Installed Capacity : 20 MW WTG Supplier : INOX (WT 2000) Project 3, Distt Vijayapura, KA Madhya Pradesh (MP) 20 MW COD : March 17 30 MW Total Installed : 50 MW Capacity WTG Supplier : GAMESA (G 114) Andhra Pradesh (AP - 188 MW) Project 4, Distt Kurnool, AP Karnataka (KA) COD : March 17 Total Installed : 50 MW Capacity WTG Supplier : GAMESA (G97) 50 MW 88 MW 100 MW Project 5, Distt Kurnool, AP Operating Wind Plants Rajasthan (RJ) Uttar Pradesh (UP) 30 kW 45 kW at at Vrindavan Lucknow At Bikaner and Jodhpur PTC India Solar Roof top projects COD Total Installed : March 17 49.5 MW Capacity WTG Supplier : REGEN (v87) Project 6, Distt. Kadapa, AP Project: 1 45kW Solar PV Roof top at Akshaypatra Foundation, Lucknow, Uttar Pradesh COD : March 17 Total Installed Capacity : 49.3 MW WTG Supplier Project: 2 : GE 30kW Solar PV Roof top at Akshaypatra Foundation, Vrindavan, Uttar Pradesh Project 7, Distt. Kadapa, AP Project: 3 & 4 COD : March 17 60 kW Solar PV Roof top at Akshaypatra Foundation, Bikaner and Jodhpur premises Total Installed Capacity : 40 MW WTG Supplier : INOX 3#4Agenda Image courtesy: Shutterstock About PTC Presentation Guiding Points#5Change in India's Energy Mix Change in RE Mix of India : Opportunities and Challenges Gas Nuclear 9% 2% Coal 61% PTC India Nucle Hydro 14% Renewable 14% Gas Nuclear 7% 2% Gas Hydro 13% Renewabl 5% ar Hydro 5% 12% e 22% Renewable 34% Coal 55% Coal 44% Total Installed Capacity (Mar'2016): 302 GW Total Installed Capacity (Mar'2019): 356 GW Total Installed Capacity 2022: 500+ GW Renewable Energy portfolio increases from 14% (in 2016) to 23% (at present in Dec'2019) and expected to increase to 34% (in 2022) in total energy mix Recent policy and Govt. targets as well as focus in renewable sector gives a change in energy mix of the country Govt. has continued focus on Renewable Energy Implementation - Continuous reforms Renewable energy remains the most favorable choice of capacity addition#6Presentation Guiding Points • Why to take leverage of roof top implementation for C&I segment ? • Key aspects, policy framework and opportunities in roof top implementations • Key issues in operationalizing and O&M PTC India#7Why .... PTC India • Why to be a part of renewable energy adoption in C&I segment? Opportunity to adopt and be part of change in India's Power Generation scenario Social Responsibility to shift from Fossil based fuel systems to Renewable based system Conducive policy framework in place for easy adotion Continuous reform and addressing the pain areas of the system Financial benefits to the corporates and industry#8Key changes in renewable energy implementation 2012-13 Costing Rs.100/watt Subsidy based models Through SNAs Fragmented with small players dominance Emergence of policies + Net-metering 2020 Costing Rs.40/watt Self-sustainable models for C&I, Enable reduction in power cost Subsidy for the left behind segments through DISCOMS Plenty of large, medium and small size players Established policies + Net-metering PTC India#9On Going Programme PTC India • • • • Increase Discom participation and Discom Integration at all stages not only net-metering: SRISTI ("Sustainable Rooftop Implementation for Solar Transfiguration in India") On Going Programme on Rooftop Solar (RTS) Implementation: Central Financial Assistance (CFA) of 5,000 Cr. for Grid Connected Rooftop up to FY 2019-20 4,200MW Implementation (out of a total target of 10,000MW) was planned through CFA by the year FY 2019-20 Implemented by State Nodal Agencies (SNA's), Solar Energy Corporation of India (SECI), Public Sector Undertakings (PSUs) and other Government Agencies (GAs). The total installed capacity of grid-connected rooftop solar panels in India is 2.3 gigawatts (GW), well short of the 2022 target of 40GW. There is a gap in RTS implementation. Issues in Implementation of the scheme : Multiple tenders by different agencies and subsequently considerable delay in tendering. • Involvement of multiple stakeholder viz. SNAs, DisComs, PSUs, Developers etc. • Reluctance of DisComs due to revenue loss; availability of net meter; CEIG inspection etc.#10On Going Programme - renewable energy implementation plan Proposed Concept on Rooftop Implementation Scheme - SRISTI Two type of incentives are proposed: 1) Central Financial Assistance for Residential Sector 2) Scheme to Incentivize DisComs DISCOMS at forefront as key drivers for rapid deployment of RTS Incentives to enable DISCOMS to create an enabling ecosystem for expeditious implementation of RTS projects in their area. 38,000 MW RTS 4,000MW Residential (CFA only up to maxi 5 kWp) (CFA of 30% or 70%*) + CFA to be provided to capacity of maximum 5kW in residential building. 34,000 MW in Social, Institutional, Govt., Private Commercial, Industrial Sectors etc. by suitably incentivizing DISCOMS • CFA to be provided directly to the installation agencies (enlisted by Discom via competitive bidding)#1134,000 MW in Social, Institutional, Govt., Private Commercial, Industrial Sectors etc. by suitably incentivizing DISCOMs Incentive for Dis-Coms in the scheme : • Incentives planned to enable DisComs to create an enabling ecosystem for expeditious implementation of RTS projects in their area. Participating DisComs to submit the cumulative capacity of grid connected RTS plants (in MWp) installed in their jurisdictional area as on 31st March 2019. This shall be taken as installed base capacity. Incentives will be given on incremental RTS capacity installed by the DisComs from the installed base capacity as per parameters listed in Table-1 S. Parameter No. Table-1 (Incentive proposed for Discom in SRISTI) Incentive to be Provided 1. 2. For installed capacity achieved above 10% 5% of the applicable cost** for capacit and up to 15% over and above of the install y achieved above 10% of the installed ed base capacity* within a financial year base capacity For installed capacity achieved beyond 15 5% of the applicable cost** for capacit % over and above of the installed base capa y achieved above 10% and up to 15 % city within one financial year of the installed base capacity PLUS 10 % of the applicable cost** for capacity achieved beyond 15 % of the installed base capacity Tasks to be taken by Discom: The tasks taken by DisCom shall include but not be limited to: 1. Providing dedicated manpower for RTS implementation, 3. Bid process management, technical studies, 5. Providing time bound services to RTS consumers, 7. Online database management of commissioned capacity, 9. Ensuring availability of net-meters, 2. 4. 6. Rooftop assessment, Upgradation in ERP system/components, Inspection and monitoring of RTS plants, 8. Consumer awareness and publicity, 10. Empanelled vendors along with rates, Providing grid connectivity etc.#12Key considerations in RE implementation - Policies • Few states policies: State Policies (exy. Rajasthan Net Metering Policy) : Grid connectivity subject to the following conditions 1) Maximum Rooftop PV Solar Power Plant capacity shall not be more than 80% of the sanctioned connected load/contract demand of the consumer PTC India 2) Cumulative capacity shall not exceed 30% of the capacity of the distribution transformer Detailed net-metering procedure, guidelines including Standards and Safety related to Interconnection with the Grid are in place - islanding condition.#13Key considerations in RE implementation - Policies PTC India • Few states policies: • RPO Obligations . • Requirement posed by Central/State agencies Stringent enforcement by MNRE/MOP - Single tracking window Launch of SARAL . • • Launched the State Rooftop Solar Attractiveness Index- SARAL on 21 August 2019. To assess the initiatives taken so far and what state it can do to improve its solar rooftop ecosystem incentivize rooftop solar by creating healthy competition among the States. Designed collaboratively by the MNRE, Shakti Sustainable Energy Foundation (SSEF), Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Ernst & Young (EY) 1 State Rank SARAL currently captures five key aspects: 1. Robustness of policy framework Name Karnataka 2 3 Telangana, Gujarat 2. Implementation environment 3. 4. Investment climate Consumer experience Andhra Pradesh 5. Business ecosystem#14Key considerations in RE implementation - Policies • Few states policies : • Evolution of RE Encouraging State Policies: • • • • PTC India HERC Policy on exemption of open access charges for 3rd party sale and captive power consumers: As per Haryana Solar Policy, the electricity taxes and cess, wheeling charges, CSS, transmission and distribution charges are totally waived off for Solar projects. Maharashtra analysis of purchase of RE power through open access compared to purchasing power on HT Express Feeders Karnataka - Solar power generators in the State achieving CoD between 1st April 2013 and 31st March 2018 and selling power to consumers within the State on open access or wheeling shall be exempted from payment of wheeling and banking charges and cross subsidy surcharge for a period of ten years from the date of commissioning DERC Regulation (RPO and REC Framework Implementation 2012): Open access consumers receiving electricity from renewable energy sources shall be exempted from the cross subsidy surcharge (CSS) to the extents of RPO. However, no banking facility shall be provided for supply of electricity from renewable energy sources through open access. The renewable energy system under net metering system shall be exempted from wheeling, banking, cross subsidy and other charges for a period of Five years#15Key considerations in rooftop / RE implementation • Key consideration in renewable energy implementation : PTC India Evolution of RE Encouraging State Policies: Maharashtra analysis of purchase of RE power through open access compared to purchasing power on HT Express Feeders Charges Rooftop Solar / Solar tariff (A) Open access charges (B) Amount (in Rs./Unit) 4.5/unit (for a Solar plant installed in Maharashtra) Remarks 3.85/unit (for HT consumers at 33kV) includes transmission losses, transmission charges, wheeling losses, wheeling charges, cross subsidy surcharge, additional surcharge Solar Tariff including open access charges (A+B) 8.35/unit Tariff charges by Discoms in MH: HT-I Commercial Express feeder Tariff = 11.40/unit The Solar generation and electricity sale to third party still seems offering a cost advantage of Rs. 3.05/unit (i.e. 11.40-8.35) in ongoing scenario.#16Emerging trends: in renewable energy procurement RE commitment: • RE procurement/ branding: DMRC • First metro to avail CDM benefits, PTC India • • Procuring 250MW Solar power from Rewa, MP Zero carbon emission www.delhimetrorail.com> press_reldetails The Best CDM Award was given to DMRC for its Modal Shift Project under which category, it has become the first Metro Rail and Rail based system in the world to be certified by the United Nations (UN), which will get carbon Credits for reducing Green House Gas Emissions as it has helped to reduce pollution levels in the ... www.delhimetrorail.com> whatnew_details Delhi Metro Wins Award For Best Clean Development ... United Nations registers DMRC's Project to... - Delhi Metro Delhi Metro has earned Rs 9.5 crs (9,55,27,441 INR) through earlier Clean Development Mechanism (CDM) projects i.e Regenerative braking and modal shift projects, between January, 2004 and 2012. The Gold Standard registration has helped DMRC to earn 7000-7500 amount of VERS (credits) per annum for next ten years. www.eqmagpro.com > dmrc-to-run-on-100-percent-solar-energy-by-... DMRC to run on 100 percent Solar Energy by 2021 - The ... Apr 22, 2019 - DMRC to run on 100 percent Solar Energy by 2021 ... Power purchase agreement between the Madhya Pradesh Power Management Company and DMRC ... Rewa will give 345 Million units of power to the DMRC every year.#17Emerging trends: in renewable energy procurement RE commitment: RE procurement/ branding: DMRC 配樂 PTC India DMRC has rooftop solar project at its 53 stations and 12 depots producing a total of 28 MWp or 22.6 million units of electricity. DMRC aims to power all its 271 stations in the next two years. In addition to the rooftop solar power, DMRC is getting 250 MWp of solar power from Rewa Ultra Mega Solar Limited in Madhya Pradesh at a cost of INR 2.97 per unit for 25 years. PTC supplying power through exchange#18Emerging trends: in renewable energy procurement RE commitment: . RE procurement/ branding: Infosys.... Branding advantages.. PTC India Key Facts. Through its energy efficiency programs, Infosys has reduced 55.05% of its per capita energy consumption since 2008. 44% of Infosys' electricity requirements are met through renewable sources. The company aims to transition to 100% renewable energy by 2020. unfccc.int > momentum-for-change > climate-neutral-now > infosys Infosys' Journey to Carbon Neutrality | India | UNFCCC www.infosys.com > Newsroom > Press Releases Infosys Becomes the First Indian Company to Join RE100 ... Infosys Becomes the First Indian Company to Join RE100 Renewable Energy Campaign. Bangalore, May 18, 2015. The Climate Group today announced that ... Leveraging the Rooftops A larger perspective to be a true international committed to environment KFW - Commitment in 2,000MW Pavagoda Solar Park - Karnataka#19Emerging trends: in renewable energy procurement RE commitment: . RE procurement/ branding: Facebook.... Branding advantages.. PTC India www.cnbc.com> 2018/08/29 facebook-just-made-a-huge-commitm... ▼ Facebook just made a huge commitment on renewable energy Aug 29, 2018 - Facebook just made a huge commitment on renewable energy ... global operations with 100 percent renewable energy by the end of 2020. many more companies stepping up to adopt aggressive renewable energy and ... www.greenbiz.com > article > facebook-gets-specific-about-its-100-pe... Facebook gets specific about its 100 percent renewables target Aug 30, 2018 - Facebook gets specific about its 100 percent renewables target ... than anticipated), which was adopted after reaching the 25-percent mark.... "We are proud of the impact our renewable energy program is having on local ...#20Emerging trends: in renewable energy procurement • Key issues in operationalizing the selected renewable energy plan: • Emergence of battery storage systems: Price trend of battery storage system PTC India 2020 Lithium-ion capacities Lithium-ion battery price survey results: volume-weighted average Battery pack price (real 2018 $/kWh) 22% 1,160 21%- 899 8% 707 650 1-11%-35% 577 23%- 373 26% -18% 288 214 176 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: BloombergNEF Average battery pack price (in $ per kWh) 174 GWh China 108 GWh U.S. 38 GWh S. Korea 23 GWh Poland 5 GWh Case study of NTPC- Andaman projects China seems a dominating market leader in Li-ion Battery Production worldwide Force Majeure#21Emerging trends in renewable energy procurement • Key issues in operationalizing the selected renewable energy plan: • Emergence of battery storage systems: PTC India Price trend of battery storage system: Future ahead and link with rooftop installations Lithium-ion battery price outlook Lithium-ion battery pack price (real 2018 $/kWh) 1,400 1,200 1,000 800 600 400 200 0 2010 Approx. 1/3rd of the current battery prices. 2024 implied price $94/kWh 2030 implied price $62/kWh 2015 2020 2025 2030 Observed prices 18% learning rate Source: BloombergNEF Source: BloombergNEF#22Key Issues related to renewable energy implementation • • Re-negotiation of Renewable PPAs Smooth O&M of roof-top installation esp. during breakdown periods Grid Integration challenges : • Low usage of transmission network implemented for RE projects • Hybrid Solutions . PTC India . • • Balancing Power requirements: Forecasting & Scheduling challenges Green Corridors part : Transfer of power from rich RE potential states to low RE potential states with exemption of ISTS charges Change in RE Mix of India in generation capacity Large size ground mounted solar PV projects: Availability of large size land parcels Most of the solar rich states have completed their RPOs. The States with low solar radiation to buy from Inter-State transmission system#23Emerging trends: in renewable energy procurement • RPOS and to reduce cost of power: • DISCOMS short term power procurement to meet their RPOs: • • PTC India TPDDL has awarded a contract to PTC for supplying renewable solar power up to 300MW (from May 2020 to Sept 2020). These short term RE power transaction are emerging for Discoms. Upcoming products in exchange would further enable these kind of contracts. Tata Power-Delhi Distribution Limited (TPDDL): Procurement Of Renewable Power (Non-Solar) On Short-Term Basis Period Time Block Qauntum (hrs.) (MW) Minimum Bid Quantity (MW) Delivery Point May-20 Jun-20 Jul-20 00:00 to 24:00 00:00 to 24:00 00:00 to 24:00 Upto 150 4 Upto 150 4 Upto 150 4 Aug-20 Sep-20 1-15 Oct-20 Source: TPDDL 00:00 to 24:00 00:00 to 24:00 00:00 to 24:00 Upto 150 Upto 150 Upto 150 4 Delhi Periphery i.e the interconnection point of Central Transmission Utility (CTU) system with State Transmission Utility (STU) system of Delhi. Mercom India Research • Procuring of renewable (non- solar) power on a short-term basis for meeting its renewable purchase obligation (RPO). Vendor shall also be responsible for booking the open access transmission corridor to the regional load dispatch center (RLDC) PTC Nodal agency in signing PPAs of first 1,000MW ISTS Wind Power Projects#24Emerging trends: in renewable energy procurement PTC India • Opportunities available in procuring RE power to meet RPOs and to reduce cost of power: • Energy Exchanges operating in India Real Time Market benefits – RE Products Day-Ahead Market Term-Ahead Contracts Renewable Energy Certificates Right to recall ends for Delivery Period (0000 to 0030) Gate Closure NLDC provides corridor to PXs for Delivery Period - Delivery for next day, Price discovery: Closed, Double-sided Auction For delivery up to 11 days, Daily Contracts, Weekly Contracts Green Attributes as Certificates Sellers : RE generators not under feed in tariffs Buyers: Obligated entities; 1MWh equivalent to 1 REC Half hourly RTM for Delivery Period of First two time block of an hour (0000 Hrs to 0030Hrs) 2300 2315 2330 2345 0000 0015 0030 0045 0100 RTM Auction RTM Clearing & Comm. Schedule preparation & communication Delivery period Emergence of Real Time Market and RE based products Opportunities to join upcoming power exchanges#25Key Issues & considerations: • Emerging opportunities in enhancing RE penetration : PTC India • • Exemption/reduction of GST on Solar items (There has been 5% to 18% on various items) Exemption/reduction of duties on Solar panel import to bring down the tariff Introduction of compensation on grid outage in solar tenders / Concept of deemed Generation • ● • Introduced in recent and upcoming tenders Must run status to be maintained by States Curtailment issues in RE potential states Focus on Green Financing to encourage projects Incentives to companies having a rising trend of green energy usage in their overall consumptions#26Generation (MW) Key Issues & considerations for drafting a renewable energy implementation plan • Key issues in operationalizing the selected renewable energy plan : 250000 200000 150000 100000 50000 Generation Dispatch at Current Pattern (2022) Generation Dispatch at current pattern (Maximum RE day(2021-22)) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Hours 18 19 20 21 22 23 24 NUCL Coal Gas Biomass Hydro Wind OPV Generation (MW) 250000 200000 150000 100000 50000 0 PTC India Generation Dispatch on Maximum RE generation day (2022) Generation Dispatch on Maximum RE Generation Day (2021-22) 1 2 3 4 5 6 789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hours NUCL Coal Gas Biomass Hydro Wind PV PSS Renewable Energy portfolio increases from 14% (in 2016) to 34% (in 2022) in total energy mix in six years period ■Loss in efficiency at partial loading, Also requires retrofitting in existing thermal stations Investment towards retrofitting to run plants at low loads Hydro projects are run off river and multipurpose projects - but have to be operated during off peak hours Source: Reports published by CEA#27Image courtesy: Shutterstock Thank You PTC India 27