Harnessing Solar energy, Options for India

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14 12 2.47 0.74 10 0.91 0.47 LCOE (`) 8 6 13.10 4 8.51 2 0 System Cost 1% O&M Cost 5% O&M Escalation Rate 80% Efficiency 1% Annual Decline in Panel Performance Total Figure 12: Components of LCOE of a Typical Solar PV System The diesel price per unit of electricity generated has been calculated assuming that every litre of diesel produces three units of electricity, excluding O&M costs. Thus, for every unit of electricity produced, the operating cost of diesel works out to be one-third the current cost of diesel (`42 per l), plus `1 to account for O&M. Today the cost of running a diesel generator is anywhere from `13 to `15 per kWh, and it can be seen from Figure 12 that it is not significantly different from that of solar PV. The government decontrolled petrol prices in July 2010 and has announced that it will do the same for diesel prices as well. As a result, prices will soon be determined by the international crude oil market. Therefore, it is safe to say that costs of diesel can only be expected to increase. Logically, the economics of solar PV systems will become more attractive as diesel prices increase. 3.2.1. Grid-connected Systems Generally, all commercial establishments run on diesel-generated power in the absence of grid power due to load shedding and other outages. In this section, solar PV systems that are gridconnected are analysed. When the grid is live, the end-user consumes electricity from it (as it is cheaper) and feeds solar energy generated back to the grid. When the grid is down, the user could opt to consume the solar energy, thus reducing diesel consumption. A sensitivity analysis of the major parameters for the RTPV LCOE model is shown in Figure 13. It illustrates the sensitivity of project IRR to various parameters. Note that the IRR is most sensitive to diesel price and capital expenditure (system cost per W p). If the system costs decrease or diesel prices increase, there would be a substantial increase in profitability. Solar Photovoltaic Applications CSTEP | Page 82
IRR `13/kWh GBI ` 20/kWh 17% CUF 23% 100% ` 35 30% Diesel Price %Loss in Grid Connection Time `60 Base Case GBI=`17.9/kWh CUF=21% % Loss in Grid Connection Time= 50% Diesel Price= ` 42/litre System Price=`180/Wp ` 270/Wp System Price ` 150/Wp 0% 2% 4% 6% 8% 10% 12% 14% 16% Figure 13: Sensitivity of IRR in a Grid-connected Project Another aspect of grid-tied systems that needs prime consideration is the loss of connection time due to load shedding. For medium voltage systems in which there is a dedicated line to the nearest substation, this may not be an issue as uninterrupted supply to the grid is possible. But for situations where this is not the case, the investor needs to consider the percentage of time when the grid is not available owing to load shedding. In Figure 14 notice the fall in IRR with loss in grid connection time; this is expected, as the revenue earned by feeding the grid (`17.9 per kWh) is greater than the savings accrued as a result of abating diesel consumption (`15 per kWh). 10.0% 9.5% 9.0% 8.5% 8.0% ` 7.5% 7.0% 0% 10% 20% 30% 40% 50% 60% 70% % Loss in Grid Connection Time Figure 14: Variation of IRR against Loss in Connection Time in a Grid-connected System Solar Photovoltaic Applications CSTEP | Page 83
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Harnessing Solar Energy: Options fo
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Foreword Worship the sun god, the L
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4. ADDITIONAL TARIFF PER UNIT OF EL
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Executive Summary The Jawaharlal Ne
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capital subsidy of `150 per W p pro
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policy choices. A comparison of thi
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of PPAs need better clarity. The en
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The Indian power sector is highly d
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4. Solar Technologies: The Basics T
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Introduction CSTEP | Page 26
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Factors affecting performance: Temp
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PV Capacity (MW) in 2008; however,
Page 32: Annual Installed Capacity (GW) 5.5.
Page 36 and 37: Table 2: Timeline of Indian Policy
Page 38 and 39: India’s Solar-specific Policies C
Page 40 and 41: Table 4 gives an overview of JNNSM
Page 42 and 43: On 16 November 2010, bids from sola
Page 44 and 45: Table 6: Net Present Value of Outla
Page 46 and 47: 4.1.3. Policies for Grid-connected
Page 51 and 52: Cumulative Capacity, Grid Parity an
Page 53 and 54: Electricity Price (`/kWh) The price
Page 55: consumed by the customers will grad
Page 60 and 61: In the case of smaller PV plants, p
Page 62 and 63: decentralised in that banks and oth
Page 64 and 65: 1.2.1.Solar Lanterns 1.2.1.1. Overv
Page 66 and 67: Table 11: Models of Dissemination D
Page 68 and 69: 1.2.3. Solar PV Microgrid 1.2.3.1.
Page 70 and 71: NPV of Govt. Subsidies (` in Lakhs)
Page 72 and 73: Table 12: Capital Cost of Solar-bas
Page 74 and 75: electrification, assuming a solar s
Page 76 and 77: electrical energy output of the arr
Page 78 and 79: Table 18: Estimation of Potential f
Page 80 and 81: The benchmark cost and subsidy for
Page 84 and 85: 3.2.1.1. Conclusions Although econo
Page 86 and 87: IRR 3.3. Policy Debate From an inve
Page 88: Table 22: Estimation of Potential f
Page 92 and 93: Solar thermal technologies have a n
Page 94 and 95: Figure 19: Solar Dryer Installation
Page 96 and 97: Figure 20: The Box Cooker (Source:
Page 98 and 99: Table 26: Cost Calculation for a 60
Page 100 and 101: for the residential and commercial
Page 102 and 103: It is difficult to estimate the pot
Page 105 and 106: Appendix - 1 Assumptions in the Sec
Page 107 and 108: Appendix - 2 Grid Integration in Ur
Page 109 and 110: Appendix - 3 Estimation of Commerci
Page 111 and 112: Annexure 2 - List of Figures Introd
Page 113 and 114: Annexure 4 - List of Acronyms AC AC
Page 115 and 116: Annexure 5 - About the Authors Shub
Page 117 and 118: 21 RPS System in Japan, http://www.
Page 119 and 120: 35 Purohit, Pallav, ‘Financial Ev
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Harnessing Solar energy, Options for India

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