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Regulatory initiatives for Promotion of Solar Thermal Power in Gujarat. Dr. Ketan Shukla , Secretary (Indian Foreign Service) Gujarat Electricity Regulatory Commission April 2011. Renewable Sources of Energy.

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regulatory initiatives for promotion of solar thermal power in gujarat

Regulatory initiativesforPromotion of Solar Thermal Power in Gujarat

Dr. KetanShukla, Secretary

(Indian Foreign Service)

Gujarat Electricity Regulatory Commission

April 2011

renewable sources of energy
Renewable Sources of Energy
  • In the context of climate change issues and ever increasing demand for electricity, the renewable sources of energy hold special importance.
  • The Electricity Act, 2003 also emphasis need for promotion and development of renewable sources of energy
  • The Tariff Policy of Govt. of India mandates the State Commissions to fix the preferential tariffs for electricity generated from renewable sources and to fix a minimum percentage for purchase of energy from such sources
solar power potential
Solar Power Potential
  • High Solar Isolation levels in India
  • The North Western Part of India (Gujarat & Rajasthan) gets high levels of solar radiations, almost throughout the year
  • Solar Radiation Map of India
brainstorming meeting 07 02 2009 conducted by gerc
Brainstorming meeting 07.02.2009 conducted by GERC
  • Experts from SERC, NLDC, MNRE, CEA, WISE
  • Important Conclusions-
    • Power generated from solar is mostly infirm and cannot be scheduled
    • Such infirm injection cannot be a major threat to grid stability
    • Possible to bring down capital cost
    • Requirement for database related to solar radiation
    • Planning required for Grid Connectivity
    • Helpful in reducing peaking demand
tariff order dated 29 01 2010
Tariff Order dated 29.01.2010
  • Tariff for 25 years-
    • Project commissioned before 31.12.2011
      • Solar Thermal– First 12 years = Rs. 11 per kWh and remaining period Rs. 4 per kWh
      • Solar PV– First 12 years = Rs. 15 per kWh and remaining period Rs. 5 per kWh
gerc order dated 22 01 2009
GERC order dated 22.01.2009

Government of India had issued guidelines for Generation Based Incentives (GBI) for grid interactive solar based generation plants – where it was mentioned that preference would be given to the projects from the State where the SERC have announced or in process of announcing tariff for Solar power

In response to that the GERC had issued order on 22.01.2009 allowing Discom to purchase solar power @ Rs. 3.37 per kWh and the developer can claim GBI upto Rs. 11.63 per kWh GBI for PV project and Rs. 8.63 per kWh GBI for Solar thermal Project under GoI Scheme

Two proposals in this regard forwarded by the state Government to MNRE

some aspects of gerc tariff order of 29 january 2009
Some Aspects of GERC Tariff Order of 29 January 2009
  • A single-part generic levelised tariff
  • CSP plant tariffs - are 11 Rs /kWh during the first 12 years of commercially operating the plant & then 4 Rs/kWh for the 13 years that follow.
  • The control period for the order is 2 years, since the gestation period for Solar PV is about 6 months and that for Solar Thermal Projects is 18-24 months.
  • The tariff takes into account the benefit of accelerated depreciation under the Income Tax Act.
  • Those who do not take advantage of the depreciation factor have to approach the Commission for project specific tariff.
  • Tariff order also addresses technical & commercial issues such as transmission, wheeling charges, security deposit, sharing of CDM benefits etc.
  • Solar Generation kept out from the purview of Availability Based Tariff (ABT) and given ‘Must Run’ status
gerc s renewable purchase regulations
GERC’s Renewable Purchase Regulations
  • GERC (Power Procurement from Renewable Sources, Regulations 2005
    • 2006-07 : 1.0 %
    • 2007-08 : 1.0 %
    • 2008-09 : 2.0 %
  • Regulations Notified
    • Specific RPPO for Solar
    • For Renewable Energy Certificates (REC) GEDA is the nodal agency – notified by GERC
progress of rec implementation
Progress of REC Implementation
  • GEDA have started implementation of REC
  • Hand on Training at NLDC
  • Application Processing Fees : Charged as per CERC guidelines
promoting the csp projects
Promoting the CSP projects
  • Level of revenue for CSP projects needs to be adequate to encourage private-sector investment and provide a stable investment climate
    • This can be achieved by
      • Feed-in tariffs
      • Production tax credits, or
      • Public benefit charges specific to CSP
  • Use of Long term power purchase agreements or similar long-term contracts with credit-worthy off-takers, or equity ownership by public organizations, will build confidence among investors and financial institutions.
  • Co-ordination with participating neighboring countries, states or regions with preferential tariff schemes will allow CSP-based electricity imports from high solar radiation areas and thereafter lower electricity costs.
initiation by government
Initiation by Government
  • State Solar Power Policy 2009 announced
  • Under the Solar Power Policy 2009, the State Govt. allotted 968.5 MW of Solar Power Capacity to 84 national and international project developers
        • Out of 968 MW, the share of Solar Thermal Technologies is 25 MW
  • Government of Gujarat declared Gujarat Power Corporation Limited (GPCL) as Nodal Agency for development of Solar Power Parks in Gujarat.
  • Clinton Climate Initiative (CCI) have initiated and announced to implement a 3,000 MW Solar Park Project in the state.
Developed plan to strength the transmission network and infrastructure for power evacuation of large capacity solar power projects
  • Introduced Master course on Solar Energy at PanditDindayal University, Gandhinagar and interaction of industries with ITI’s to introduce new curriculum for solar energy
solar energy advantage gujarat
Solar Energy – Advantage Gujarat
  • Solar radiation : 5.5 to 6.0 kWh/Sq.m/day with 330 sunny days / year
  • Land : 14.40 Million Acres of uniquely positioned waste land in area of high solar radiation
  • Water: Narmada water available in Northern part of state having high solar radiation
  • Transmission grid : Gujarat have densest transmission network
  • Infrastructure: 74,000 Km long road network
  • Gas Grid: 2200 Kms long gas grid
  • Cut Transportation costs for conventional fuels
  • Distributed Generation – so helps in reducing T&D Losses
Gujarat : PPA signed for Solar Power Projects under Solar Power Policy - 2009

As on 31/12/2010

Source: GEDA

status of solar power projects
Status of solar power projects
  • Commissioned Projects:
    • One 5 MW solar power project of M/s. Lanco
    • 1 MW Solar Power Project at PanditDeendayal Petroleum University.
  • On going Projects :
    • Installation of PV modules for 7 MW project are under progress
    • Another 12 projects of total 135 MW capacity are under advance stage of implementation
    • Tender under finalization for 1 MW solar power plant at Ash Dyke of Gandhinagar Thermal Power station.
solar city gandhinagar
Solar City - Gandhinagar
  • 170 kW grid connect Solar Photovoltaic Power Systems (installed at 17 GoG Buildings –Sachivalaya)
    • 125 nos. of 1 kW Roof top systems at Govt. bungalows.
    • 175 nos. of 250 lpd SWHS on Govt. residential bungalows & 12,500 lpd SWHS on Govt. Buildings.
    • 65 Solar Street lights in 9 Parks.
    • Installation of 8 Energy Efficient pumps at Charedi Water Works.
    • 590 Energy Efficient Street Lights as a Demonstration Project & Energy Efficient LED Lighting on “Ch” and “J” Roads, Ministers Enclave, Gandhinagar.
    • Mobile Demonstration for awareness generation s in Schools.
    • Replaced 3750 bulbs with CFLs and replaced 10,000 ordinary tube lights with T-5.
gujarat solar park
Gujarat Solar Park
  • Land : 2024 ha ( 1080 ha GoG, 944 ha Pvt )
  • Approx. Capacity: 500 MW
  • Land Allotment: Solar Photovoltaic : 2 ha / MW
          • Solar Thermal : 3 ha / MW
  • Fees / Charges :
    • Processing Fee: Rs. 25000 / MW
    • Deposit : Rs. 5 lacs / ha
    • Allotment Price: Rs. 18.5 lacs / ha
    • Development Charge: Rs. 8-12 lacs / ha
solar park at patan
Solar Park at Patan
  • Phase I: Location - Village Charanka, TalukaSantalpur, Dist PatanObjective - Dedicated > 500 MW Solar power GenerationArea - Approx 2456 Ha land (including Govt. & Private land)
  • Phase II: Location - Villages Harsad, Soneth, Morwada, Dungla, Dabhi & Navapura, TalukaVav, Dist BanaskanthaObjective – Solar Power Generation, R & D Facility, Manufacturing Hub & Capacity building Area – Approx 1205 Ha Government Waste Land
some reflections
Some Reflections
  • Gujarat has taken significant initiatives in the past to harness solar energy
  • GERC is the first State Regulatory Commission to issue a comprehensive tariff order on solar energy
  • GERC is the first SERC to provide for Renewable Energy Certificates in its Regulations on procurement of energy from renewable sources
  • GERC tariff appears to be lower than what was expected by potential investors at the national level;
  • First project for REC Mechanism has been registered in Gujarat
Sun is present everywhere,

his countless rays reaches all places,

Sun is the force,

The destroyer of darkness &

bestows happiness & wealth

Sun infuses life and removes all problems