Harnessing Solar energy, Options for India

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3.2.1.1. Conclusions Although economically viable at feed-in tariffs of `17.9 per kWh (the same amount as GBI offered in case of utility scale), it is unclear if the current urban grid infrastructure has the capacity to accommodate distributed generation at the low tension level. Technological challenges have to be addressed, and standards for grid integration must be established (refer to Appendix 2). Moreover, given that even at today’s diesel cost, the cost of generation from solar PV is comparable, going forward with the expected increase in diesel price, solar PV will get competitive. Hence a large tariff is unnecessary here. 3.2.2. Off-grid Systems with Battery The solar electricity generated using a PV system with a battery will abate the use of either grid electricity or diesel, whichever is live during that time. The economics of the PV system become more attractive when it reduces diesel use. Typically, this system is used where there is no grid power and to run a dedicated load on 100% solar power. Thus, the presence of a battery allows for the complete replacement of diesel-generated power, even during nights and on cloudy days when insolation is low. The analysis featured in Figure 15 shows the sensitivity of IRR to major parameters for an off-grid system with battery. 30% % of Time Diesel is Abated 100% ` 35 Diesel Price ` 60 Base Case System Price = ` 270/Wp Diesel Price = ` 42/litre % Time Diesel is Abated = 70% CUF =21% Capital Subsidy = ` 90/Wp ` 300/Wp System Price ` 200/Wp -4% -2% 0% 2% 4% 6% 8% 10% Figure 15: Sensitivity Analysis for Off-grid System with Battery Capital expenditure plays an essential role in determining the viability of a project. For systems with a battery, current pricing dictates much higher initial costs (subject to battery capacity); and even with the generous capital subsidy offered by the government, profitability is not certain. The average cost of abated electricity works out to be `12.15 per kWh, while the LCOE of generation using solar PV systems is much higher at `23.29. This clearly demonstrates the unviable nature of such an investment. 3.2.2.1. Conclusions On account of high capital costs and lower efficiencies of systems with battery storage, solar PV is not a viable replacement for DG unless: Solar Photovoltaic Applications CSTEP | Page 84
The system costs falls below `190 per W p. Diesel price increases to over `80 per litre. 3.2.3. Off-grid Systems without Battery A PV system without a battery is also a feasible form of technology. This system is used to cut down diesel use and, hence, is mainly applicable when 100% power is derived from DG sets. Note that the system can only save diesel; it cannot replace DG since there is no provision for storing solar energy. Again, the solar-electricity generated will abate the use of either grid electricity or diesel – whichever is live during that time. Not installing battery storage poses three major implications: • The system price decreases considerably. • The efficiency of the system increases. • The system can be used effectively only in the presence of sunlight. These implications allow for a better base case, making the proposition more attractive as seen in the sensitivity analysis in Figure 16. 30% % of Time Diesel 100% is Abated ` 35 Diesel Price ` 60 Base Case % Time Diesel is Abated = 70% Diesel Price = ` 42/litre System Price= ` 180/Wp CUF=21% Capital Subsidy= ` 70/Wp ` 210/Wp System Price ` 150/Wp 0% 5% 10% 15% 20% 25% Figure 16: Sensitivity Analysis of IRR in a Typical Off-grid System without Battery The ACOE abated at current tariffs of grid power and diesel fuel remains `12.15 per kWh, while the LCOE of solar PV generation is a comparable `12.98. 3.2.3.1. Conclusions Given the base case, systems without a battery present more attractive economics when compared to systems with a battery. The only shortcoming is the system’s complete dependence on availability of solar energy; it is not possible to conserve diesel during the night or on cloudy days. A possible solution would be to implement a hybrid system where diesel-generated power replaces solar power during periods of low insolation, thus allowing only for a nominal use of diesel and for avoiding complete dependence on the sun. Solar Photovoltaic Applications CSTEP | Page 85
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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,
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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 82 and 83: 14 12 2.47 0.74 10 0.91 0.47 LCOE (
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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