India MW Solar Advisor Expert Guide

images

Starting with the National Solar Mission in 2010, solar power, especially solar PV, has been growing at a hectic pace in India.From almost insignificant installations in 2010, the total installed capacity of solar PV has crossed 3,000 MW towards the end of 2014. That is a fairly good achievement in just four years.Not surprisingly, the lion’s share of the capacity addition has come from MW-scale, ground mounted utility solar PV power plants. Solar Mango estimates close to 90% of all capacity added in solar PV since 2010 has been in the utility-scale solar sector. This growth in utility scale solar is set to accelerate even further, with the new government at the centre significantly enhancing the targets to be achieved. Adding to the excitement is the role of many states, each of which has its own ambitious solar policies.All these augur well for businesses. It is hence no surprise that a number of enterprising businesses wish to set up utility scale solar power plants. While attractive opportunities exist, this is still a nascent sector. It is thus imperative that entrepreneurs, especially those new to the power sector or renewable energy sector, employ significant due diligence in their investments in this sector – be it in the choice of business models to follow, in the selection of land, or in their choice of the EPC vendor.

MW Solar Advisor

Who should buy this Expert Guide? MW Solar Advisor will be invaluable to the following:

Prospective solar power plant developers anywhere in India
Financial investors wishing to understand the key components, business models and strategic drivers for solar power plants
Corporates and businesses keen on investing in MW scale solar power plants anywhere in India
Small businesses and individuals wishing to get a thorough understanding of the MW scale solar power sector for their investments or business expansion needs
High net worth individuals considering solar as an investment opportunity
EPCs keen on expanding their business in the fast growing MW Solar sector in India
Large land owners who can obtain a good understanding the potential of MW Solar for their investments.

Obtain a free copy

The India MW Solar Advisor Expert Guide is provided complimentary (free) by solar mango. Those Interested in obtaining a copy are requested to send an email to Muthukrishnan with the following brief details:

Your Name
Your role / designation (If Applicable)
Email
Website (If Applicable)

Your Company Name (If Applicable)
Your City and country
Mobile Number

Please send the above details as an email to Muthukrishnan@eai.in with the email subject MW Solar Advisor

Why should you buy this Expert Guide ?

1 MW of solar power plant carries a capital cost of Rs 6-6.5 crores. That is a lot of money for anyone.
As this is a new industry, there are many critical aspects of the industry which many investors are not aware of.
Before investing time and resources into such capital intensive projects, it is important for prospective solar power developers to understand these critical aspects, drivers and constraints that will define the success of solar power plants.
Solar Mango’s MW Solar Advisor is the first comprehensive and authoritative guide that provides all the above inputs.

What will you gain by purchasing this Expert Guide ?

Critical data points for various aspects of a MW solar power plant
Clear understanding of the business and revenue models applicable to MW Solar power plants
Comprehensive updates on current and upcoming solar policies from central and state governments – this is the first time when all these have put together at one place and analyzed.
Clear answers to the most frequently asked questions from developers
Understanding of attractive regions and states for MW Solar power plant investments
Detailed inputs on how to calculate the right price to bid in solar tenders
Detailed inputs on how to select EPCs and critical components for solar power plants
A thorough understanding the various financing avenues available, and the pros and challenges for each of them
Recommendations on how to approach banks and other financial institutions, useful especially for SMEs
Template for developing an effective and winning detailed project Expert Guide .
Costs of various components in a MW solar power plant, and how these costs have trended over the years
List of critical mistakes to avoid for a new MW Solar power plant developer
Inputs on site selection strategy and a comprehensive list of aspects to be considered while selecting land
Case studies and performance data from existing MW Solar power plants
The big picture of an effective overall MW Solar Blueprint and key action points

List of Contents

Introduction Contents

1.Business Models for Utility Scale Solar +–

Sale to Utility
Sale to Private Consumer
Captive Consumption
Pros and Cons of the Business Models
Key Takeaways

2.Status of MW Solar Power Plants in India+–

Prominent Developers
Non-Developer Stakeholders
Key Takeaways

3.Attractive Regions for MW Solar in India+–

Prominent Regions for Solar Power Plants
1. By Radiation
2. By State
Performance of Operating Plants
Key Takeaways

4.Vendor & Component Selection Checklist+–

Who is an EPC?
Criteria to Choose EPCs
1. Expertise on All Solar EPC Value Chain Components
Three Types of EPCs You Should Avoid
Key Parameters for EPC Selection
1. Top 5 criteria
2. Other criteria
Specific Expertise to Look for in Core EPC Team
1. Engineering
2. Procurement
3. Commissioning
4. Planning for O&M & Monitoring and Control Systems
Prominent Solar EPCs in India
1. National EPCs
2. Regional Solar EPC Players
Component Selection – Standards and Warranties
Key Takeaways

5.State, Central Solar Policies +–

Introduction to Solar Policies and Regulations
Central Policy – National Solar Mission
1. Overview
2. Status
State Policies
- Andhra Pradesh
- Assam
- Bihar
- Chhattisgarh
- Gujarat
- Haryana
- Karnataka
- Madhya Pradesh
- Maharashtra
- Odisha
- Punjab
- Rajasthan
- Tamil Nadu
- Telangana
- Uttarakhand
- Uttar Pradesh
- Other States
Key Takeaways

6.Financing Options in India+–

Overview
Debt Financing Terms
1. Domestic Financing
International Financing
Approaching a Financer
1. Eligibility Criteria
2. Documents
Financial Institutions
1. Equity
2. Debt
Details of Debt from Government Sources
1. IREDA
2. Power Finance Corporation (PFC)
Constraints and Challenges for Getting Financial Closure for MW Solar Power Plants
1. Earlier Challenges
2. Current Challenges
3. Suggestions and Perspectives from the Financial Sector for Overcoming the Challenges and Making Solar Power Projects More Bankable
Key Takeaways

7.DPR Template for a Solar PV Power Plant +–

Components of a Detailed Project Expert Guide
Key Takeaways

8.Cost Break-up of Utility Scale Solar PV Power Plants +–

Trends in Plant Cost
Key Takeaways

9.Template for Financial Returns+–

Revenues
1. Billable kWh
2. Tariff
Costs
1. Initial capital investment
2. Inverter Replacement
3. Operations & Maintenance (O&M)
4. Insurance
5. Debt Service
6. Taxes
Analysis
Key Takeaways

10.Resources +–

Key Takeaways

11.Key Aspects Every MW Solar Developer Should Know+–

Key steps to arrive at an attractive business model
1. How do you decide which is better for you? APPC+REC, sale to private parties, or sale to utility?
Critical aspects to be considered to win bids from state or central policies
1. Make sure you are absolutely clear what your financial targets are
2. Employ a chartered accountant or a financial expert before you arrive at the final bid
3. Ensure that the region (district) you are bidding for a power plant has high potential for solar output
4. Be very realistic with costs
5. Factor in the off-taker risk in your costs
Mistakes to avoid while bidding or during implementation of the MW solar power plant
1. Don’t quote too low
2. Don’t quote too high
3. Make sure you read and reread all terms and conditions
4. Understand the penalty clauses clearly
Key Takeaways

12.Frequently Asked Questions by Developers, and Answers+–

Is it a good idea to invest in a solar power plant?
What are the paybacks for MW scale solar power plants?
I have large amounts of land. Is this a good enough reason for me to get into solar power plants?
How can I get financing for my solar power plant?
What are the O&M costs for solar power plants?
Which state is the best for solar power plants?
How can I get a private PPA signed for my power plant?
I already have wind farms. Can I co-locate solar farms in the same land?
What will be the output from my solar power plant?
How much does a 1 MW of solar power plant cost, and how much area does it require?
Key Takeaways

13.Terms You Should Know as a Developer of MW Solar Power Plants +–

Technical and Operational Terms
- BOO Model (Build Own Operate Model)
- Capacity Utilization Factor
- Central Inverters
- Concentrating Photovoltaics
- Cross Subsidy Surcharge
- Crystalline Silicon/c-Si
- DNI (Direct Normal Irradiance)
- Feed In Tariff
- Gigawatt
- Grid-tied Solar Power System
- Grid Parity
- kWh
- Kilo Watt
- LCOE (Levelised Cost of Energy)
- Module
- Module Degradation
- Net metering
- Off-grid Solar
- Open Access
- Photovoltaics
- Power Purchase Agreement
- Pyranometer
- PV array
- Reflection Losses in Solar Cells
- Silicon Wafer
- Shading of solar panels
- Smart Grid
- String Inverters
- Standard Test Conditions (STC)
- Temperature Coefficient of Solar Panels
- Thin Film Solar Cell
- Tracker
- Transformer
- Utility
- Watt Peak (Wp)
- Wheeling Charges
Explanation of Key Financial Terms
- Payback Period
- Return on Investment (ROI)
- Net Present Value (NPV)
- IRR (Internal Rate of Return)
- Levelised tariff
- PPA
- Financial Closure
- Accelerated Depreciation
- Discounting Factor
- Hedging
- Moratorium
- With recourse/Without recourse
Solar Apex Bodies & Organisations in India and their Roles
- MNRE
- CWET/NIWE
- SECI
- SESI
- NSEFI
- SERIIUS
- CSRI

14.Components of a Solar Power Plant+–

Solar Panels
Mounting Structures
Inverters
BOS

15.Site Selection

16.MW Solar Power Plant Action Plan

17.Solar Mango Services for the Solar Power Sector+–

MW Scale Solar Power Plants
Rooftop Solar Power Plants
EAI’s Cleantech Consulting

18.List of Tables & Figures+–

Table 1: State-wise status of MW-scale solar power plants as of December 2014
Table 2: Prominent locations with good radiation where solar plants/parks have been constructed
Table 3: Pros and Cons of Business Models
Table 4: Estimated CUF and Generation – Sample Data from Some States
Table 5: Solar EPC Value Chain
Table 6: List of Solar EPCs in India
Table 7: Standards and Warranties for Critical Components
Table 8: List of Banks, NBFCs, Private Equity & Other Financial institutions
Table 9: Solar RECs – Sales During the Last Calendar Year
Table 10: CERC benchmark cost breakup for a 1 MW ground mounted solar PV power plant 2015-16
Table 11: Comparison of CERC Benchmark Capital Cost 2010-15 (Rs. Lakhs)
Table 12: Comparison of CERC Benchmark Capital Cost 2010-15 (% of total cost)
Figure 1: Business Models for MW Scale Solar
Figure 2: Radiation Map of India
Figure 3: Sources of Funds for MW Scale Solar Plants
Figure 4: MW Solar Action Plan Schematic

Developed by experts who advised The World Bank, Bill & Melinda Gates Foundation, 10+ Fortune 100 Companies, Reliance, Vedanta, MNRE,many state governments and more.