Overview of RENEWABLES SOLAR TECHNOLOGIES World Institute

Overview of RENEWABLES & SOLAR TECHNOLOGIES World Institute of Sustainable Energy 07 February 2009, GERC, Ahmedabad

RENEWABLES: THE BIG BUSINESS OPPORTUNITY 2 § Peak oil, price volatility of fossil fuels, projected depletion § Renewables changing becoming mainstream from non-conventional to § Reducing prices, Low Risk and Assured Returns for renewables, will be cost competitive with conventional power in near future § All large MNCs have entered or are entering renewables sector § Wind Power – CAGR ~ 25% § Solar Power – CAGR ~ 30 -40% § Investment in renewables in 2007 was $100 billion (including corporate take overs) § Increasing venture capital flow into the sector

RENEWABLES – GLOBAL SCENARIO 3 * Renewables represent 5 % of global power capacity 3. 4 % of global power generation. (Figures exclude large hydropower, which itself was 15 % of global power generation) *$71 Billion is investment in power generation. Total R. E. Investments add upto $100 billion

RENEWABLES IN INDIA 4 Estimated medium-term (2032) potential and cumulative achievements as on 31 -09. 2008. No. Estimated Potential (MW) 61, 000 656 100000 * Sources/Systems Cumulative Achievements (MW) 9521 1 Biomass Power (Agro residues & Plantations) 2 Wind Power 3 Small Hydro Power (up to 25 MW) 15, 000 2290 4 Cogeneration (bagasse) 5, 000 993 5 Waste to Energy 2700 55 6 Solar Thermal Power (CSP) 200000** Nil 7 Solar PV and CPV 200000** 2. 12 5, 83, 700 13, 450 Total * Industry estimate ** Assuming only 4% of Indian desert area of ~ 2, 000 sq. km

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WIND POWER LEADS THE RENEWABLE REVOLUTION IN INDIA 6 § Wind Power Mainstay of Renewables in India § Mature Market & Technology, various project developers in India § ~9645 MW installed capacity in India as on Dec. 08 : 5 th Largest in the world, Third largest annual market after USA & China (1800 MW in 2008) § Large untapped potential in India ~ 65, 000 – 100, 000 MW § Technologies: Synchronous and Asynchronous Generators (with and without gears), New hybrid technology to be introduced § Turbine unit sizes: 500 k. W to 1. 65 MW, may go up to 2. 0 MW in near future § Leading States: Tamil Nadu – 4200 MW, Maharashtra –

TARIFF / RPS/ GRID ISSUES 7 § Project costs were going up due to rise in material costs, likely to come down because of recession, reduced demand § Coal, Steel and other metal prices increased substantially during last two years ( > 15 % increase) § Inflation touching 12 % , recently dropped to 5 to 6 % § Interest rates going up fast touching to 12 -13 % § Project viability important, Tariff revision was must § Conventional power projects costs also increased during last 2 -3 years § Grid expansion through proper planning is the key for future capacity addition § Global studies shows, NO TECHNICAL LIMITS for penetration, 100% renewable grid possible § Forecasting services available, Need to be adopted in India § BOOK: RENEWABLE ELECTRICITY AND THE GRID (2007), Earthscan publications

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TYPES OF SOLAR POWER 9 § Solar Thermal Power Generation § Concentrating Type ( CSP) - Line Focusing system § - Parabolic Trough Systems - Fresnel Trough Collector Systems - Point Focusing - Dish Stirling Systems / Concentrating Dish - Solar Tower Plants using central Receiver System § Non- concentrating Type - Solar Updraft Tower Plants – Solar Chimney - Solar Pond Power Plants

A BRIEF LOOK AT CSP AND CPV 10 Two emerging breakthrough solar technologies § Solar thermal electric power generation (CSP) Total – 430 MW in operation - Tower (11 MW in Operation in Spain) – 03% - Trough (419 MW in Operation in USA)- 97% - Dish (Centralized and Stand Alone) - Linear Fresnel (~ few MW under construction) - 11000 MW under construction or planned, globally § Solar Photovoltaics - Conventional Silicon based (Crystalline and thin film) - Concentrating PV (CPV): The latest to emerge on the scene

CONCENTRATING SOLAR THERMAL POWER (CSP) 11 § Has the possibility of supplying base and peak load due to storage option § Lower costs than PV/CPV § Storage options greatly increase Plant Load Factor and dispatchable electricity § Over 11, 000 MW CSP in development throughout the world; § Bulk of Projects under development in USA / Europe § Feed-in Tariffs announced in few countries - Eg: Spain - 0. 27 Euro / k. Wh for 25 years with adjustment for inflation. Re-look at Tariff once 500 MW installed. § In India, over 500 MW Thermal Power project proposals with MNRE under the new incentive scheme. § Max Rs 10/k. Wh incentive under MNRE policy § About Rs 13/k. Wh as tariff including SERC tariff

CSP - TOWER TECHNOLOGY 12 PS 10 , Seville, Spain

CSP - TROUGH TECHNOLOGY, PROJECTS IN USA, SPAIN 13

CSP - DISH TECHNOLOGY (CENTRALIZED AND STAND ALONE) Dish-Sterling Engine 14

CSP - LINEAR FRESNEL TECHNOLOGY, ALMERIA AND AUSTRALIA 15

11, 000 MW OF CSP CURRENTLY UNDER DEVELOPMENT 16 USA, Mexico, Spain, Italy, Portugal, France, Israel, Egypt, Algeria, Greece, Morocco, SA, China, Australia, Iran, UAE § Conservative projection of global installation targets: 5000 MW by 2015 and 40000 MW by 2020 § Already crossing the target of 5000 MW set for 2015

PROJECTED COST REDUCTION IN CSP 17 CSP Electricity Cost as a Function of Cumulative Installed Capacity Huge electricity costs reduction potential in immediate future

MNRE / SERC THERMAL – INCENTIVE/TARIFF 18 MNRE has a notional cap of Rs 13/k. Wh as the maximum combined revenue inclusive of tariff and incentive Solar Thermal Particulars Incentive for Plant commissioned up to Dec 2009 MNRE Incentives Max Rs 10 / k. Wh Max Rs 9. 50 / k. Wh Not Allowed RERC Rs 13. 78 / k. Wh Rs 13. 18 / k. Wh Not Allowed HERC Not Declared Not Allowed WBERC Not Declared Not Allowed PSERC Rs. 7. 00/ KWh Allowed Gujarat Up to 31. 12. 2009 Incentive for Plant commissioned after Dec 2009 Depreciation benefit under IT Act 1961 ? Rs. 10. 00/ Kwh (1 -12 yrs) Rs. 3. 00/Kwh (13 -25 yrs) Rs. 9. 00/ Kwh ( 1 -12 yrs) Rs. 3. 00/ Kwh (13 -25 yrs) Maharashtra 31. 12. 09 Upto 31. 03. 10 Rs. 13. 78 / k. Wh ( MNRE) Rs. 13. 60 ( Non MNRE, 50 MW) Rs. 13. 18 / KWh Uttar Pradesh 31. 12. 11 Rs. 13. 00/Kwh ( MNRE) Rs. 13. 00 ( Non MNRE)

SOLAR POWER – PV TECHNOLGY – Grid connected 19

SOALR CELL TECHNOLOGIES 20

CONCENTRATING PV (CPV) 21 § CPV – Latest Emerging PV technology § Uses Space quality solar cell with high efficiency and optical lenses for concentration ( High Concentration Ratios: 200 -1000) § Very High Efficiency ( 25 -30%), higher energy output compared to PV (~ 12 15%) § 3 MW sanctioned in Puertallano, Spain by ISFOC. Partly commissioned and under construction. First CPV project in the world. § More than 20 MWp production line in Pipe Line Optics for concentrating Sunlight, HCPV

PV- SILICON (CONVENTIONAL) NELLIS SOLAR PLANT 14 MW, NEVADA 22

CONCENTRATING PV (LOWCPV AND HIGHCPV) 23 HCPV Testing Seville, 1. 2 MW LCPV Plant

COST REDUCTION LEARNING CURVE AND POSSIBILITIES IN CPV Energy Costs in AUS $/MWh 24

WORLD’S FIRST CPV INSTALLATIONS, PUERTALLANO, SPAIN 25

MNRE / SERC PV – INCENTIVE/TARIFF 26 MNRE has a notional cap of Rs 15/k. Wh as the maximum combined revenue inclusive of tariff and incentive Solar PV Incentive for Plant commissioned after Dec 2009 Depreciation benefit under IT Act 1961 Max Rs 12 / k. Wh Max Rs 11. 40 / k. Wh Not Allowed RERC Rs 15. 78 / k. Wh Rs 15. 18 / k. Wh Not Allowed HERC Rs 15. 96 / k. Wh Rs 15. 16 / k. Wh Not Allowed Equivalent to Highest Tariff offered from among the various RE in WB (Rs 5/k. Wh – Biogas Power) Equivalent to Highest Tariff offered from among the various RE in WB with 5% reduction Not Allowed Rs 11/k. Wh Rs 10 / k. Wh Allowed PSERC Rs. 7. 00/ Kwh Rs. 7. 00/Kwh Allowed TNERC Rs. 15/kwh Rs. 14. 65 / k. Wh Not allowed Particulars MNRE Incentives WBERC – non MNRE Incentive for Plant commissioned up to Dec 2009

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