Setting up a 700+ MW Ultra Mega Solar Power Park in Radhanesda village, Gujarat Energy, Power and Allied Services Government of Gujarat Contents Project Concept 3 Market Potential & Demand Supply 4 Growth Drivers 5 Gujarat – Competitive Advantage 6 Project Information 7 - Location/ Size - Infrastructure Availability/ Connectivity - Raw Material/ Manpower - Key Players/ Machinery Suppliers - Potential Collaboration Opportunities - Key Considerations Project Financials 12 Approvals & Incentives 14 Page 2 Project Concept Radhanesda Solar Park: Brief Overview ► The Radhanesda Solar park will be the biggest solar park to come up in the state after the Charanka solar park set up in Patan district in 2012. Radhanesda ► The project is being executed by Gujarat Power Corporation Limited (GPCL) in collaboration with the Union Ministry of New & Renewable Energy (MNRE). ► It is located in Radhanesda village, Vav Taluka, Banaskantha district , Gujarat ► Latitude: 24 o31’ 22” N ► Longitude: 71 o16’ 51” E ► Area: 1407 hectares ► NTPC proposed to set up Solar Projects in the Solar Park What is a Solar Photovoltaic (PV) Project? ► A Power system designed to supply usable solar power by means of photovoltaic modules that convert light directly to electricity. The maximum power that can be generated by this project (Nameplate capacity) is 700 Megawatts. Setting up a Solar Power Park ► Government of India has an ambitious target to set up 100,000 MW Solar Projects by 2022. As per guideline issued in June 2015. This 700+ MW Radhanesda Ultra Mega Solar Power Project is one of them. ► Coal-fired power plants account for 60.59% of the installed power capacity in Gujarat. While Gujarat has hydrocarbon reserves such as lignite, crude oil and natural gas, its major fuel source for generating power is coal. However, Gujarat has no coal reserves and has to depend on other states and imports to meet its requirements. Source http://www.census2011.co.in/census/district/183-banaskantha.html http://www.dw.com/en/how-does-a-solar-power-plant-work/a-5073142 Page 3 Market Potential & Demand - Supply Thriving industries in near-by cities and special investment regions is expected to increase electricity requirement ► Many industrial cities such as Morbi, Ahmedabad, Euro Radhanesda Kandla, the upcoming Delhi Mumbai Industrial Corridor and Multivision SEZ Santalpur (~230 kms) the Santalpur Special Investment region are located in (~110 kms) Morbi (~270 kms) close vicinity to the park. Ahmedaba d (~270 ► Euro Multivision Ltd., a Special Economic Zone for Non kms) Conventional Energy Sectors, including Solar Energy Equipment is also located close to the Solar park. ► Gujarat has an above average GSDP, which has been growing steadily. The Compounded Annual Growth Rate (CAGR) of Gujarat SDP’s is higher than that of India’s GDP. Favorable Government policies, such as providing 24X7 power supply to all villages and push for Make in India initiatives in the nearby industries will lead to massive energy demands. India’s GDP Trend (INR Tn) Gujarat’s GSDP Trend (INR Tn) CAGR: CAGR: 13.9% 12.7% 8.95 124.88 8.06 112.72 7.12 99.51 87.36 6.05 FY 12 FY 13 FY 14 FY 15 FY 12 FY 13 FY 14 FY 15 Source: MOSPI ► Total power consumption projection with the assumption of constant & Falling elasticity during 2014-2035 for two GDP growth scenarios along with the consequent Demand-Supply gap is exhibited below: Year Consumption Installed Demand and supply gap (MU) Capacity (MW) ► The requirement for power is projected to increase by 2035 Case: 8% GDP 2020 107,044 37,089 from 68 bkwh in 2013 to 274 bkwh with 8% growth rate of 2025 147,150 50,611 SGDP. With the higher growth rate of 10%, it will be 378 2030 201,361 66,700 bkwh. 2035 274,477 87,416 ► These imply that over 22 years power requirement would be Case: 10% GDP 4 to 5.5 times as large. 2020 118,491 37,886 2025 175,144 54,581 ► Correspondingly capacity will be 3.20 times to 4.50 times as 2030 257,706 76,160 large as the 27.27 GW of installed capacity that is required to 2035 377,720 105,933 meet Gujarat’s requirement in 2013.. Source: Source: Energy Statistics 2015 http://www.gidb.org/newsirs http://mospi.nic.in/Mospi_New/site/inner.aspx?status=3&menu_id=87 http://mospi.nic.in/Mospi_New/upload/Energy_stats_2015_26mar15.pdf Page 4 Growth Drivers Reduction of PV component costs ► Solar PV prices dropped significantly in the last three years primarily due to the rapid changes in the global solar markets. It can be seen that the system price has dropped by 65 percent (152 Million INR/MW to 53 Million INR/MW) between 2010-11 and 2016-17. Solar PV System costs’ trend (INR Million per MW) 152.0 144.2 CAGR: -16.1% 97.8 78.8 68.0 60.6 53.0 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Source: CERC Increased focus on sustainability due to increased import spending on conventional fuels and depleting natural resources ► India racked up one of the highest energy import bills of over $100 billion in 2012-13 and hence, a long term renewable solution has become crucial. Coal imports have been witnessing robust growth rates owing to greater demand from thermal power plants and industries. Gujarat has no coal reserves and solely relies on imports. Its other hydrocarbon resources such as Natural Gas and Crude oil resources have also been depleting. Estimated Crude Oil reserves in Gujarat Estimated Natural Gas reserves in Gujarat (MMTA) (MMTA) CAGR: 78.2 CAGR: -1.2% 77.5 136.7 -2.6% 73.0 72.2 135.0 Mar-13 Mar-14 Mar-12 Mar-13 Mar-14 Mar-15 Source: Ministry of Petroleum & Natural Gas Source http://cleantechnica.com/2015/05/26/solar-pv-costs-to-fall-another-25-per-cent-in-three-years Page 5 Gujarat - Competitive Advantage High potential for solar power in Gujarat Global Horizontal Irradiance - Annual Average ► The Ministry of New and Renewable Energy estimates the solar energy potential for Gujarat at ~40,000 MW. ► Gujarat receives one of the highest amounts of Solar Radiation in India. (range of 5.5 - 6 kilo Watt-hour per square meter per day) ► Gujarat has 2.60 million hectares of barren and uncultivable land, making it a hotspot of solar potential in India. ► Gujarat’s percentage of Wasteland is higher than the national average. Barren & Total Uncultivabl % Area e land /Day) 2 Gujarat 19.62 2.60 13.25 SolarResource (kWh/m India 328.73 22.53 6.85 Land Area (Million square km) Source: National Renewable Energy Laboratory (USA) Source: Census 2011, Data in million hectares Proximity to non-conventional energy sector specific SEZ and other ancillary industries ► Euro Multivision Ltd., a Special Economic Zone for Non Conventional Energy Sectors, including Solar Energy Equipment is also located about 230 kms from the Solar park. Euro Photovoltaic India, which is a part of this SEZ manufactures Solar PV Cells and Modules. ► Gujarat has a strong manufacturing and MSME Registrations in Gujarat between 2006 and 2014 engineering base with the presence of Micro, % of total Industry Number Small and Medium Enterprises across the value registrations chain by manufacturing mounting structures Basic Metal & Products 19,644 7.5 (made of galvanized steel or aluminum), cables Electrical Machinery 5,907 2.3 (made of copper or aluminum) and other Apparatus electrical accessories required to set up a Source: Industries Commissionerate, Gujarat working PV system. Solar tariffs in Gujarat are relatively highly when compared to other states ► Solar tariffs in the country have reached an all time low of INR 4.35/kWh. ► However, Gujarat is one of the few states that has a relatively high solar tariff. In 2015-16, the Gujarat Electricity Regulatory Commission (GERC) has set the tariff at INR 7.04/kWh for companies claiming Accelerated Depreciation (AD) and INR 6.35 for companies not availing AD. Source http://ic.gujarat.gov.in/?page_id=414 http://geda.gujarat.gov.in http://www.nrel.gov/docs/fy12osti/51946.pdf Page 6 Project Information Site image Source: Google Maps Location ► The Radhanesda Solar Park is in Banaskantha district , a district in Northern Gujarat. The village is ~130 km from the district headquarters, Palanpur and ~250 km from the state capital, Gandhinagar. Tharad is nearest town to which is ~42km away Land Status ► The proposed park area would be 1407 hectares, totally owned by the Government. ► Advance possession of Land received: 20/01/2016 ► Site area largely fall under eastern part of Rann of Kutch ► Existing ground level varies from 1 m to 6 m above ► Project site has been attached by water logging up to 1 feet during the month of September and October. ► Plotting of Land: Finalized ► Counter survey & Soil investigation report: Completed ► Hydrology study: Awarded to IIT Roorkee Project schedule for a typical Solar PV Project Milestone Timelines Date of issue of administrative approval Zero Date Land acquisition and Financial Closure 6 months from zero date Construction of Pooling Substation, Land Development and other 15 months from zero date Common facilities as per DPR Transmission line and Grid Connectivity 18 months from zero date Final instalment on completion 18 months from zero date Source: Ministry of New and Renewable Energy Source http://mnre.gov.in/file-manager/grid-solar/Scheme-for%20development-of-Solar-Park-&-Ultra-Mega-Solar-Power-Project-2014-2019.pdf Page 7 Project Information Project Components ► Road Structure ► Water Supply Infrastructure ► Building and Establishments ► External Transmission System ► Internal Transmission System Page 8 Project Information Utility ► Water supply for industrial purposes in the district can be obtained from Water Gujarat Water Supply and Sewage Board, Irrigation Canal and Sardar Sarovar Narmada Nigam Limited (Main Canal is 25 km away.