Crisil Limited · NSE:CRISIL
Crisil — National Solar Energy Summit 2012
33 slides from Crisil's conference presentation, Dec 14, 2012
Slide 1: Risks and Opportunities in securing Financing Phase I and Phase II
Risks and Opportunities in securing Financing Phase I and Phase II National Solar Energy Summit 2012 “Solar Thermal Power” 14th December 2012 Presented By: Saurabh Kamdar, Associate Director, CRISIL Infrastructure Advisory 1
Slide 2: Agenda
Agenda 1 Solar Power – Opportunity & Current Adoption Status……3 2 Solar Thermal Technologies………………..…………………………16 3 Solar Thermal - Risks and Funding Trends……………………..21 2
Slide 3: Solar Power – Opportunity & Current adoption status
Solar Power – Opportunity & Current adoption status 3
Slide 4: Solar Power Development Potential
Solar Power Development Potential Solar Power Density in India India receives on an average 4-7 kWh/m2 of solar energy daily with an average of 250-300 sunny days in a year – Rajasthan and Gujarat receive maximum radiation in the range of 6–6.6 KWh per square meter Solar power potential for Indi
Slide 5: Grid connected Installed Solar capacity
Grid connected Installed Solar capacity Source: MNRE (As at October, 2012) 5
Slide 6: Indian Power Generation Capacities
Indian Power Generation Capacities Total Installed Capacity (MW) Installed Renewable Renewab Power Capacity (MW) Nuclear, le, 4,780, 24,915, 2% 12% Solar, Biomass, 905, 3% 3,225, 13% Hydro, Small 38,990, Hydro, 20% Thermal, 3,396, 131,353, 14% Wind, 66% 17,353, 70% Source: MNRE Presently, of Total
Slide 7: Solar capacity additions expected to increase
Solar capacity additions expected to increase Cumulative Renewable Projected Solar Capacity Capacity in GW Additions – JNNSM (MW) 55 500 550 24.9 400 200 200 10.2 50 200 200 500 550 3.5 2012-13 2013-14 2014-15 2015-16 2016-17 2002 2007 2012 2017P Solar PV Solar Thermal Solar power is expected to b
Slide 8: Jawaharlal Nehru National Solar Mission (JNNSM)
Jawaharlal Nehru National Solar Mission (JNNSM) JNNSM is one of the major initiatives in promotion of solar energy technologies, Mission aims to achieve grid tariff parity by 2022 JNNSM (Phase 1) - Capacity allocation between SPV and Solar Thermal was decided to be 50:50. – Solar PV: Selection o
Slide 9: Various Sale options for Solar
Various Sale options for Solar Sale to Utility Bundled Power NVVN Electricity Solar Radiation Generation Solar Power Utility Plant Sale through state tariff policy or REC route IPP/ Grid Sales & Captive Sales (I) FIT + GBI (PPA) (II) APPC + REC (non-PPA) Merchant Sale Market Price + REC Exchange D
Slide 10: Solar Thermal Projects under development in JNNSM (Phase 1)
Solar Thermal Projects under development in JNNSM (Phase 1) Sr. Capacity Tariff Project Name Promoter Location Technology No. (MW) (Rs./KWh) Rajasthan Sun Technique Jaisalmer, Compact Linear 1 Reliance Power 100 11.97 Energy Private Limited Rajasthan Fresnel Reactor Diwakar Solar Projects Jaisalmer,
Slide 11: Other Solar Thermal Projects under development
Other Solar Thermal Projects under development Sr. Capacity Project Name Developer Location Technology No. (MW) 1 Rajasthan Solar One Entegra Rajasthan 10 Parabolic Trough Parabolic Dish 2 Bap Solar Power Plant Dalmia Cements Rajasthan 10 Sterling 3 NTPC Pilot Project NTPC Rajasthan 15 Parabolic Tro
Slide 12: Gujarat has been front runner in Solar Power Adoption
Gujarat has been front runner in Solar Power Adoption First state to launch an independent solar policy in 2009 (operative till 2014) – PPAs of 969 MW signed. The projects allocated through the MOU route with pre- qualification criteria – Projects of 690 MW commissioned till 30th June, 2012. Hig
Slide 13: Other states have also framed their Solar Policies
Other states have also framed their Solar Policies Particulars Karnataka Rajasthan Madhya Pradesh Tamil Nadu Karnataka Solar Policy, Rajasthan Solar Energy TN Solar Energy Policy Policy instrument MP Solar Energy Policy 2011-16 policy, 2011-2017 2012 200 MW - DISCOMS 50 MW SPV; 50 MW upto 2015-1
Slide 14: Way Forward – JNNSM Phase 2
Way Forward – JNNSM Phase 2 3000 MW capacity to be supported by the Government of India – Bundling with thermal power to the extent the latter is available – Generation Based Incentive – Use of viability gap funding mechanism Additional 6000 MW is envisaged through Solar RPO requirement – Requir
Slide 15: Solar RPO requirements are expected to provide fillip to the sector
Solar RPO requirements are expected to provide fillip to the sector Solar RPO Targets in selected states (2012-13) State RPO Target Target in MW Gujarat 1.00% 451 Haryana 0.75% 366 Madhya Pradesh 0.60% 166 Rajasthan 0.50% 152 Karnataka 0.25% 87 Maharashtra 0.25% 182 Tamil Nadu 0.25% 45 Punjab 0.07%
Slide 16: Solar Thermal Technologies
Solar Thermal Technologies 16
Slide 17: Technology for Solar power plants
Technology for Solar power plants Solar power generation technologies Solar Power Generation can be broadly classified into two Technologies broad categories: – Solar Thermal: Thermal power plants produce electricity by converting the solar radiation into high temperature heat using Solar Thermal
Slide 18: Solar Thermal Technologies
Solar Thermal Technologies Also referred to as CSP (concentrating solar power) technologies for power generation Technology Options include – Parabolic Troughs – Compact Linear Fresnel Reflector systems – Central Receivers or Power towers – Paraboloid dish systems Thermal storage and hybridiza
Slide 19: Solar Thermal Technology Options (1/2)
Solar Thermal Technology Options (1/2) Parabolic Trough – Parabolic troughs focus the sun onto a linear receiver tubes placed in the trough focal line – Gives temperatures up to 400 deg C. – Hot liquid is passed through a series of heat exchangers to generate steam, and to drive a turbine – Global
Slide 20: Solar Thermal Technology Options (2/2)
Solar Thermal Technology Options (2/2) Central Receivers or Power towers – Uses field of mirrors called heliostats that individually track sun on two axes and redirect sunlight to receiver at the top of a tower – Sunlight is concentrated 600–1,000 times, and achieves working fluid temperatures of
Slide 21: Solar Thermal - Risks and Funding Trends
Solar Thermal - Risks and Funding Trends 21
Slide 22: Solar Thermal Projects – Risks and Challenges (1/3)
Solar Thermal Projects – Risks and Challenges (1/3) • Some Phase 1 projects encountered imprecise irradiance data from satellite • Leading to project delays and higher costs because Limited solar irradiance developers needed to re-design project systems data • However reliable DNI data availability
Slide 23: Solar Thermal Projects – Risks and Challenges (2/3)
Solar Thermal Projects – Risks and Challenges (2/3) • The cost of a parabolic trough CSP plant in India ranges from Rs 10.5 crore to Rs 13 crore per MW • Whereas the prices of Solar PV have come down to Rs 10 Capital Cost Premium crore per MW • Storage increases the capital cost further but also inc
Slide 24: Solar Thermal Projects – Risks and Challenges (3/3)
Solar Thermal Projects – Risks and Challenges (3/3) • Project developers have struggled to achieve financial closure (key milestone under the Mission’s guidelines) • Lenders doubtful about CSP Projects’ viability: Non recourse Financing Difficulties funding is challenge and funding often backed by c
Slide 25: Solar Thermal Projects – Lenders’ Perception & Financing (1/2)
Solar Thermal Projects – Lenders’ Perception & Financing (1/2) Emerging energy technology Discomfort: – Bankers want to see a CSP project track record in India due to low levels of familiarity and a discomfort with CSP technology. This can only be resolved when consistent performance record develo
Slide 26: Solar Thermal Projects – Lenders’ Perception & Financing (2/2)
Solar Thermal Projects – Lenders’ Perception & Financing (2/2) However, loan syndication broadening lender base for solar projects – When financing CSP projects, banks have typically taken 25 percent of the project’s debt and shared the remaining debt and risk among other participating banks – Lea
Slide 27: In Summary….
In Summary…. India has very high solar power potential (>100,000 MWeq) with an average of 250-300 sunny days in a year, which so far has remained largely unutilized Solar forms only 0.45% of the total Installed Capacity in the country Of the 1,045 MW of Grid connected solar installed, almost a
Slide 28: CRIS Credentials
CRIS Credentials 28
Slide 29: About CRISIL Infrastructure Advisory
About CRISIL Infrastructure Advisory* CRISIL Infrastructure Advisory is Our Local Presence division of CRISIL Risk and Infrastructure Solutions Limited (CRIS), a wholly owned subsidiary of CRISIL Ltd. CRISIL Infrastructure Advisory is Delhi associated with infrastructure development and investme
Slide 30: About CRISIL Infrastructure Advisory
About CRISIL Infrastructure Advisory CRISIL Infrastructure Advisory is a professionally managed multi- disciplinary consultancy firm. Our offerings span the entire spectrum of activities in infrastructure development. India Conventional Renewable Coal Oil & Gas Transmission Distribution Minerals
Slide 31: Key Service Offerings - Power Sector
Key Service Offerings - Power Sector Policy Formulation for Bid Process Management Project Structure, PPP, Project Appraisal Fuel Supply/Pricing, Tariff Regulatory and Tariff Filings Advise to Regulators for Power purchase, electrification, License, Tariff, and reform staff, capital inve
Slide 32: Select Engagement Spread in Power Sector
Select Engagement Spread in Power Sector Regulatory and Central and Policy Advisory State Govt. Utilities Forum of Regulators Assessment of tariff (structure, NTPC, PGCIL, BHEL Appraisal of Capital rationalization, and MYT), viability of distribution licensee Coal India Implementation of NCDP
Slide 33: Mr. Saurabh Kamdar, Associate Director, CRISIL Infrastructure Advisory
CRISIL Risk & Infrastructure Solutions Limited A Subsidiary of CRISIL Limited, a Standard & Poor’s Company www.crisil.com Mr. Saurabh Kamdar Associate Director, CRISIL Infrastructure Advisory Contact Numbers- Direct: + 91 22 3342 3000 (Board) Email: saurabh.kamdar@crisil.com