Observer Research Foundation Mumbai

Ideas and Action for a Better India

Should cities lead Indias renewable energy quest? YES! Should Mumbai set an example for other Indian cities? YES!! Mumbai Solar Mission is a conceptual proposal to the government to undertake an ambitious effort, based on Public-Private-People partnership, to enable large scale use of solar energy in Indias commercial capital.

By Aditya Khandekar & Rishi Aggarwal

We are like tenant farmers chopping down the fence around our house for fuel when we should be using Natures inexhaustible sources of energy sun, wind and tide. Id put my money on the sun and solar energy. What a source of power! I hope we dont have to wait until oil and coal run out before we tackle that.

THOMAS ALVA EDISON, 1931

WHY MUMBAI SOLAR MISSION?

A Mumbai that thinks small isnt Mumbai at all
SUDHEENDRA KULKARNI Chairman, ORF Mumbai

Its a crime to aim small. This is what Indias former President Dr. A.P.J. Abdul Kalam
keeps telling young Indians. Is this exhortation valid in the context of Indias energy security plans? Of course, it is. Our country must aim big at achieving maximum possible levels of energy security, without lowering our targets for economic growth and social development. At the same time, we must also aim big at maximising the share of energy from renewable sources. Neither of these two goals is easily achievable in the short term. Nevertheless, India simply does not have the luxury of setting unambitious goals if it aspires to become a developed nation in an all-round sense of the word. As a large and rapidly growing economy, India also has an obligation to the world community to make its due contribution to reduction of Green House Gas (GHG) emissions to save our planet from the ill effects of climate change. India certainly showed ambition when the UPA Government launched the Jawaharlal Nehru National Solar Mission (JNNSM) on 11th January, 2010. The Mission has set the big target of deploying 20,000 MW of grid-connected solar power by 2022 and reducing the cost of solar power generation in the country through a long term policy. Its objective is to make India a global leader in solar energy. JNNSM has surely given a boost to the coordinated efforts of the central government, state governments and non-governmental players to move towards this target. However, these efforts have not yet reached the tipping point, which is necessary for the Mission to reach its milestones in a timely manner.

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What can give JNNSM the acceleration it needs? Among other things, the Mission needs wholehearted participation of Indian cities. This is especially so since India is urbanising rapidly and cities, anyway, are far bigger consumers of energy than rural areas. Keeping this in mind, the Ministry of New and Renewable Energy (MNRE) has launched the Solar Cities Initiative. It says: Several Indian cities and towns are experiencing rapid growth in the peak electricity demand. The local governments and the electricity utilities are finding it difficult to cope with this rapid rise in demand and as a result most of the cities/towns are facing electricity shortages. In this context, the Development of Solar Cities programme is designed to support/encourage Urban Local Bodies to prepare a Road Map to guide their cities in becoming renewable energy cities or solar cities. The Ministry has already initiated various programmes in the Urban Sector for promoting solar water heating systems in homes, hotels, hostels, hospitals and industry; deployment of Solar Photo Voltaic (SPV) systems/devices in urban areas for demonstration and awareness creation; establishment of Akshaya Urja Shops; design of Solar Buildings and promoting urban and industrial waste/ biomass to energy projects. The Solar City programme aims to consolidate all the efforts of the Ministry in the Urban Sector and address the energy problem of the urban areas in a holistic manner. According to MNRE, the Solar City is one that aims at minimum 10% reduction in projected demand of conventional energy at the end of five years, through a combination of enhancing supply from renewable energy sources in the city and energy efficiency measures. The basic aim is to motivate the local Governments for adopting renewable energy technologies and energy efficiency measures. In a Solar City all types of renewable energy based projects like solar, wind, biomass, small hydro, waste to energy etc., may be installed along with possible energy efficiency measures depending on the need and resource availability in the city. So far, 54 cities have been identified for developing as Solar Cities. Surprisingly, Mumbai is not one of them. When we came to know about this omission, we at the Observer Research Foundation Mumbai felt that we should proactively propose, to the central, state and local governments, that our city should launch its own initiative called the MUMBAI SOLAR MISSION. Mumbai has been a proud pioneer in many areas of Indias development. It is the countrys business and finance capital. Ambition is in the very DNA of Mumbai. Therefore, we believe that it must take the lead in the governments Solar Cities initiative.

Policy support needed for Mumbai to produce 10% of its power needs from solar
As our concept paper describes, Mumbai has taken some baby steps in urban solar installations. Tata Power has already demonstrated the benefits of rooftop solar power generation at its headquarters. The Indian Institute of Technology (IIT) Bombay, supported by MNRE, has set up 1 MW rooftop solar power project. On a much smaller scale, Triratna Prerana Mandal, a reputed community-based organisation in a slum in Santacruz (West) has

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installed a solar facility on the roof of a community toilet. ORF Mumbai is pleased to have supported this project. But these are baby steps. What Mumbai needs to take are giant strides. In order to qualify as a Solar City, Mumbai has to generate at least 10% of its power requirement from solar and other renewable energy sources that is about 300 MW, given that the city consumes about 3,000 MW of electricity. At present, its rooftop solar power generation is less than 0.1 per cent. Obviously, it is going to be a steep climb. However, steep climb is never synonymous with impossible to climb for those who are determined to reach the summit. Hence, here are a few suggestions for the consideration of policy-makers. 1) All central, state and local government buildings and utilities must mandatorily install rooftop solar facilities. To begin with, the newly renovated Mantralaya building, the seat of power of the Government of Maharashtra, must have solar panels on its rooftop. 2) All buildings with large roof areas should be incentivised to install rooftop solar facilities, and also to supply surplus power to the grid. 3) All bulk users of conventional power commercial and industrial units, residential complexes, hotels, hospitals, billboards for advertising, etc. must be mandated to produce at least 10 per cent of their power consumption through solar. If they cannot produce 10 per cent of their electricity needs in situ, they should be encouraged to support solar installations of double the capacity in rural areas or in urban slums through a transparent compensatory mechanism. 4) There should be attractive subsidies and incentives for slum dwellers to install rooftop solar panels to address their lighting and water-heating needs. 5) There should be a sustained mass campaign for the adoption of energy efficiency practices, technologies and construction designs. 6) Today high-end users of electricity pay a much higher tariff than low-end users. This policy of cross-subsidisation has created a lot of distortions. For example, cheap power has led to misuse of water, another scarce natural resource. This is particularly hurting the financial viability of state-run electricity generation and distribution companies. Therefore, rationalisation of tariff is certainly called for, if JNNSM has to gain momentum. Nevertheless, this is not a big deterrent in the case of Mumbai, where most of the electricity consumption is met by private power companies. Where state-run power generation and distribution companies face losses because of rooftop solar installations by high-end users in urban areas, governments may compensate them to the extent of

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the shortfall in their revenue. In no case, however, should state-run power utilities be allowed to come in the way of widest possible promotion of solar power generation. In other words, if free or cheap power for farmers and poor sections of society is a political issue, the time has come to make solar power and sustainable development in general also a political issue. This is possible only by making the common people aware of both the short-term and long-term benefits of renewable energy-based energy security for them and for India as a whole.

The Observer Research Foundation Mumbai is deeply committed to the ideal of Indias sustainable development. Maximisation of the renewable energy component in our countrys energy basket is one of the key strategies to realise this ideal. As part of our work in this area, we have published a research report titled Solar Mini-Grids for Rural Electrification: A Roadmap to 100% Energy Access for India@75 . It is authored by my colleagues Shruti Mahajan-Deorah and Dr. Leena Chandran-Wadia. This concept paper on the Mumbai Solar Mission is our contribution to the debate and action on the implementation of the Solar Cities initiative by the Ministry of New and Renewable Energy. Authored by Aditya Khandekar and Rishi Aggarwal, this document is our proposal for the consideration of the central government, state government, city government as well as other stakeholders who are committed to the sustainable development mission in Mumbai. We would like a serious debate over this concept, leading to the adoption of the Mumbai Solar Mission as a Public-Private-People-Partnership initiative. We thank Shri Pranav Mehta, Chairman Solar Energy Federation of India, for his presentation at ORF Mumbai, at which he pointed out that deployment of Rooftop Solar ought to have begun on a large scale in Mumbai yesterday. Obviously, what we have proposed in the Mumbai Solar Mission is ambitious. It is meant to make a real difference in the renewable energy landscape in our city. We cannot be content with celebrating cosmetic initiatives producing nano-scale change. We must set an example for the rest of urban India to emulate.

Its time for Mumbai, the City of Dreams, to Dream Big and to Impact Big. After all, a Mumbai that thinks small isnt Mumbai at all.
We welcome critical feedback on this concept paper.

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Powering Mumbai using Solar Energy

Introduction
Electricity is integral to the functioning of cities and economic growth. Mumbai has historically been blessed with one of the most stable electricity supply systems in the country. At 3000 MW, Mumbai consumes a sizeable amount of electricity due to its burgeoning population. At a time when energy security, coal imports and curbing greenhouse gas emissions are topics of concern, it is important for every city in the country to start including renewable sources of energy into the traditional mix of sources which supply electricity. Mumbai has abundant sunshine but the share of electricity from rooftop solar is miniscule. In light of the concerns already highlighted, it is disconcerting that Mumbai does not show any widespread interest and institutional framework in the adoption of solar energy in its electricity consumption mix. In this concept paper, we focus on the feasibility of adopting solar photovoltaic in the form of solar panels on rooftops of various types of buildings. We start with exploring whether in the first place there is technical and financial feasibility and then go on to understand what will enable a scaling up. Mumbai already has some success stories which provide the much needed empirical data for doing analysis and drawing conclusions and we are borrowing from them for this note. Most importantly it should be kept in mind that in order to insulate the city from power shortages the rest of the state has had to face severe power cuts. Therefore, there is a need to push for local energy generation so that the rest of the state can benefit from a more reliable power supply, especially considering the citizens are in a much better financial position to pay for this transformation as compared to residents of rural Maharashtra.

Total Power Consumption of Maharashtra = 16,417 MW

Figure 1: Power Consumption in Maharashtra (Source: 18th electric Power Survey of Mega-Cities, 2013)

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Maharashtras total energy requirement for 2011-12 was 1,41,382 million units (MU) while the availability was just 1,17,722 MUs. The peak demand during the same period remained at 21,069 MW while the demand met was 16,417 MW. In the same time Mumbais total energy consumption was 22,107 MUs; almost 19% of the states total supply.

Energy scenario of the country

Figure 2: Indias Total Primary Energy Production (TPEP), Consumption (TPEC) (Source: Daniel et. Al. 2008)

In 2011 Indias primary energy consumption was 6.9 x 10 12 kWh rising from 2.7 x 10 12 kWh in 1993, a two and a half times increase in a span of 18 years. The Thermal Power Sector snapshot

Total Installed Capacity over 200 GW as of 2012 75 GW more capacity is planned to be added in 12th Plan. Coal has remained and is expected to remain the dominant fuel by far. With 74% of the 12th Plan additions being based on coal, its share of the total generation portfolio is expected to be over 60% by the end of 2017. Power sector is facing a major challenge due to shortage of both, coal and gas.

Problems due to Coal shortage

Coal is the dominant fuel in Indias power generation mix and coal shortage is a major threat to Indias development story. Domestic coal production has been stagnant for the last three years, at around 530 MT, with Coal India failing to ramp up the production for meeting the increasing demand.

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With 75% capacity addition in 12th Plan being coal based, we are headed towards a shortfall of more than 250 MT by 2017. 22 GW of generating capacity in 2011-12 was underutilised on account of coal shortages. Coal shortage has forced the end consumer to switch to backup power which primarily uses diesel. The per unit costs are 12 INR/KWh or more. This makes Indian industry very uncompetitive in global markets. Diesel burning for power generation means extra diesel subsidy burden on the government and causes forex outflow from India. The total volume of seaborne traded thermal coal in 2011 was only 750 MT. If Indian imports ramp up to 250 MT, it will result in a very tight coal market resulting in price spike and further make power generation on imported coal unviable. Coal shortage will also result in many developers defaulting on their debt, thus further stressing banks and making financing for new power projects very difficult.

There was once a time when lack of available generation capacity was cited as the reason for rampant load-shedding by the utility companies. However, now the reason for demand-supply mismatch is the massive amount of red-tape which prevents the country from achieving maximum utilisation of its resources.

Energy scenario of Mumbai

As mentioned earlier, Mumbai is the crown jewel in Maharashtra and has always been viewed in isolation with respect to rest of the state as far as power is concerned. However it is imperative to realise the potential of Maharashtra achieving self-sufficiency in power with bold initiatives like Mumbai Solar Mission, which could go a long way in improving the power scenario in the rest of the state. For example, if the consumption of the neighbouring cities is compared, it can be clearly seen that Mumbai consumes much more energy, compared to Pune and Nagpur.

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Figure 3: Per Capita Power Consumption Source: 18th Electric Power Survey of Mega-Cities, 2013

When the graphs above are seen in combination with the per capita consumption, it can be seen that while the total demand is much more than other cities, the per capita demand is lesser than Pune and only slightly more than Nagpur. Therefore, if even a part of this individual demand is provided for, using solar energy, the net generation will result in a sizable generation using solar. That is what the Mumbai Solar Mission proposes: promote individual establishments to drive the push for solar which will result in a multiplicative effect and help ramp up the adoption of solar in urban cities. In the graph below, it can be seen that there is going to be an exponential rise in the demand for power in Mumbai. This is indeed the right time to consider a Mumbai Solar Mission. A resource (sunlight) which is abundantly available daily, but is wasted can be put to effective use, contributing to Mumbais energy security and also to address environmental concerns.

Figure 4: Predicted Power Demand in Mumbai over the next decade. Source: 18th Electric Power Survey of Mega-Cities, 2013

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Solar Policy in India

With the launch of the Jawaharlal Nehru National Solar Mission in January 2010, India embarked on a focused programme of large scale solar adoption. The mission was part of the efforts under the National Action Plan for Climate Change and set a target of creating 20 GW of capacity by 2022. Most of the capacity in this mission is to be created by setting up large grid-scale solar PV power plants. The mission did not give either capacity targets or an enabling framework for large-scale adoption of solar PV on the millions of rooftops in the country. While the thrust for large scale solar power plants is justified, it overlooks the unique selling point of solar technology: its ability to be used as a distributed source of generation. It is radically different from a thermal power plant whose design does not make it conducive for distributed generation. It is therefore important to be very ambitious about having millions of solar rooftops in the country, generating electricity through solar PV. It needs no reiteration that the quality and quantity of sunshine that India receives is far superior to that in other countries like Germany, which have managed to do far more than India. It stands to reason that India should aim for another 20 GW (if not more) of solar power from rooftops alone. In the urban context, one can at regular frequency read in the papers about the concept of solar cities, but in Mumbai that has never been a topic of discussion. Supply of reliable electricity at all demand levels has never provided supply shock as a reason for looking at renewable energy. Thus, if solar rooftop has to become a significant component of Mumbais electricity mix then the reasons will clearly have to be in the nature of financial advantages for adopting solar energy. Mumbai is still not a city with an interest in sustainability and hence, environmental reasons driving adoption will not happen in the current scenario.

WHAT IS A SOLAR CITY?

The Solar City aims at minimum 10% reduction in projected demand of conventional energy at the end of five years, through a combination of enhancing supply from renewable energy sources in the city and energy efficiency measures. The basic aim is to motivate the local governments for adopting renewable energy technologies and energy efficiency measures. In a Solar City, all types of renewable energy based projects like solar, wind, biomass, small hydro, waste to energy etc. may be installed along-with possible energy efficiency measures depending on the need and resource availability in the city. A total of 60 cities/towns are proposed to be supported for development as Solar Cities during the 11th Plan period. At least one city in each state, to a maximum of five cities in a state may be supported by the Ministry.

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Developments in the solar world

The past decade has seen rapid and tectonic changes in the world of renewable energy and especially solar. Till as little as four years ago, questions were being raised about the financial viability of power generated from solar against conventional power derived from thermal and hydro. But the past two years have seen a rapid fall in the price of solar panels the key input to generating solar energy and rising cost of conventional power, thus narrowing the gap to the extent that in some tariff slabs like commercial and industrial, the cost of power generated from solar is equivalent to that from conventional sources. If trends continue, solar power is heading towards costing cheaper than conventional power.

Figure 5: Fall in Solar energy prices per watt Source: Bloomberg New Energy Finance

There has been great interest in grid-connected utility scale solar plants in India since the launch of the National Solar Mission with the Maharashtra state utility company, MAHAGENCO recently commissioning a 125MWp solar plant in the Dhule district of Maharashtra. While such efforts will go a long way in augmenting Indias bulk generation capacity in an eco-friendly manner, there is no reason why millions of units of potential power should be left untapped. Therefore there is a need of a separate comprehensive strategy for promoting rooftop solar in a rapidly urbanising country like India.

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Global best practices

Many cities in the world have embarked upon major solar energy initiatives. Here are a few examples. As part of the International Solar Cities Initiative (ISCI), Daegu, the third largest city in South Korea, plans to increase the consumption of clean energy to 25 per cent by 2025. It is set to become a smart solar city through the development of green energy projects, energy efficiency, clustering renewable energy industries and training eco-friendly citizens. The city has built an array of renewable energy facilities including the world's largest hydrogen fuel cell power plant (11.2MW) and Korea's largest tower-type solar power plant (200kw). The target power generation volume from renewable sources is 1 million kilowatts by 2025, equivalent to electric power generated by one nuclear power plant.

Solar City Daegu, South Korea Recently, London has built a solar-powered bridge on the River Thames. The solar energy company Solarcentury has installed 4,400 photovoltaic panels in stages to cover the roof of the Blackfriars station. It provides half the electricity needs of the Blackfriars station. Furthermore, it reduces the station's carbon dioxide emissions by 511 tonnes per year.

Solar Bridge across the Thames in London Page 11

Rio de Janeiro, which is hosting the Olympic Games in 2016, is planning to build an iconic 105-metre tall solar tower and urban waterfall that will provide power to the city. Designed by RAFAA, the world famous Swiss architectural firm, the tower will function as a solar power generator during the day, and will run as a hydropower generator and power storage unit at night. The Olympics is certainly the ideal venue to project such innovations in green energy. Kaohsiung Stadium in Taiwan is an example of how stadiums, which are always big energy users, can adopt sustainable architecture. This spectacular, dragon-shaped structure generates 100 per cent of its electricity from 8,844 solar panels lining its exterior. This largest solar-powered stadium in the world holds 55,000 spectators. Since games are not played inside the stadium every day, the stadium becomes a power plant during its "off" days, capable of generating 1.14 gigawatt hours of electricity every year, enough to supply power to 80% of the surrounding neighbourhood! Solar-powered stadium in Taiwan

Adelaide in Australia became a Solar City in 2013. The project has helped Critical Peak Pricing participants reduce their electricity usage by an average of 14 per cent during the peak period. It has also had an effect on Time of Use; participants shifted 7 per cent of their consumption from peak to off-peak periods. Recipients saved around $8,050,000 on their energy bills and avoided the release 30,900 tonnes of greenhouse gas emissions. Businesses saved an estimated 6,808,000 kWh. Freiburg Solar City in Germany is one of those rare cities that produce more green and clean energy than they consume. A city of 220,000 people, it was an early stronghold of the Green Movement in the 1970s. Solar energy panels can be seen on almost every public or private building in Freiburg. Its 150,000 m2 of photovoltaic cells produce over 10 million kWh/year. The economic benefits are especially noticeable in the sectors of manufacturing, research and education, and tourism. Overall the environmental economy employs nearly 10,000 people in 1,500 businesses, generating 500 million euros per year.

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Freiburg Solar City in Germany

In Mumbai itself, an iconic new solar-powered structure is proposed to be built in Bandra-Kurla Complex. When completed, the Cybertecture Egg will become a new architectural jewel in the city. Designed by James Law Cybertecture International, the 32,000 sq. m building will be self-sustainable and environment friendly as it will make use of solar-photovoltaic panels and wind turbines on the roof.

Cybertecture Egg, BKC, Mumbai

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Some roofs in Mumbai which have shown the way

Tata Power Company, Carnac Bunder, Mumbai
It is with this idea in mind that the Tata Power Company (TPC) installed a 60.48 kWp Rooftop Solar Power Project at Tata Powers Carnac Receiving Station, in 2009. It was the first attempt by a big industry house to develop a demonstration project involving grid-connected solar energy in order to better understand the possibilities in this field. The company wanted to establish a proof of concept in the field of clean energy by showing that with a clear focus and proper execution; it is possible to develop an economically viable solar installation even in An aerial view of Tata Powers rooftop solar installation. urban areas like Mumbai. The project commissioned in 2009 consists of 336 Photovoltaic (PV) panels on top of their Carnac Bunder office. From the table given below it can be seen that the installation has reaped massive benefits to the company purely in terms of the economics of the system.

Table 1 Project Specifications Particulars

Technology Plant Rating Total Installation area Total number of Panels Area of Each Panel Area required/KW Area/KW Total Annual Output of TPC Installation Average monthly production Purpose Total System Cost (2009 prices) Cost of the Plant (2013 prices) Cost per KW (2009) Cost per KW (2013) Total Annual Savings Total Payback Time

Remark
Photovoltaic Panels 60.48 KWp 549 m2 336 1.5 m x 0.79 m 9.02 m2 97.09 square feet 74529 kWh 6125.67 kWh Handling the lighting load of the Building Rs. 92,00,000 Rs. 55,00,000 Rs. 1,51,216.31 Rs. 90,401.05 Rs. 5,70,617.26 9.64 Years

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Triratna Prerana Mandal, Mumbai

Triratna Prerana Mandal (TPM) is a Community Based Organisation that has pioneered the use of solar energy. It has deployed solar PV (Photovoltaic) panels to provide lighting to a pay-and-use toilet block being run by them as well as to their offices. In order to minimise the capacity and expense of the PV panels, they decided to minimise lighting costs by installing energy-efficient bulbs. TPMs project has been executed with the support of the Department of Environment, Government of TPMs rooftop solar installation Maharashtra and ORF Mumbai. They have also installed a solar water heating system for their showers. This is a huge boon to their users. Previously they did not supply hot water in their showers due to the prohibitively high costs associated with electric water heaters. Motivated by Electricity saved through the Money saved through the project environmental considerations as project from Dec 2011 to Mar 2012 from Dec 2011 to Mar 2012 well as financial ones, TPM had 1,504 units Rs 12,067.13 already switched over the water supply to their toilet block from the citys supply to a local rain-fed bore-well. During their efforts at organising an awareness programme on Changes in the environment and its effects on mans standard of living, which they conducted jointly with the United Nations University, Tokyo, they realised the value of awareness at the grass-roots level of environmental issues. By providing a proof-of-concept with their two installations, they hope to further disseminate knowledge of the benefits of using solar energy based systems to other organisations like themselves as well as to the residents of the urban slums around them. Recognition/awards received by TPM has provided a quickly scalable model for the use Triratna Prerana Mandal of solar technology for public sanitation in 1. Urban Age Award, Deutsche Bank, underdeveloped urban areas. The unmitigated Germany. success of this project yields compelling financial arguments for this model. Extrapolating the costs over 2. Sant Gadge Maharaj Clean-Up award for the Best CBO in Mumbai, MCGM. the lifetime of the solar systems shows this model to be even cheaper than ones incorporating traditional 3. Subsidy from government of Maharashtra grid power. This, in addition to the benefits of using a for solar installation project. clean and renewable form of energy. 4. Financial Help from SEPCO-III, a Chinese power company based in Mumbai, as part Inspired by this, TPM has taken on the role of being a of their CSR initiatives, in 2011. flag bearer of using renewable technologies to improve the lives of the urban poor. Already, they have initiated plans to set up a bio-fuel facility in their neighbourhood. Typically forward-looking, the
5. Best community toilet block in Mumbai award from Clean India Journal in 2013.

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organisation is already looking ahead to widespread application of their model by working with ENVIS to disseminate their story in the hopes of inspiring others. They are also taking concrete steps to propagate this model beyond their immediate surroundings, and plan to build a public toilet using solar technology in association with the Rotary Club of Bombay West, Juhu.

Indian Institute of Technology, Bombay

IIT-Bombay was supported by the Ministry of New and Renewable Energy (MNRE), for a 1 MW rooftop solar project within the IIT premises. The lead institute for this project is the National Institute for Photovoltaic Research and Education (NCPRE). The average peak demand of IITB is 3 MW with the annual peak which occurs in summers being 5MW. The average monthly electricity bill of the institute is Rs. 2.25 crore with the electricity tariff for the academic buildings being Rs. 10 / unit. While the project is scheduled for completion early next year, the existing system has already reduced the bills substantially so much so that there is now a plan in place to install another 2MW of rooftop solar within the premises in the next two years. IIT-B has set up the project on the rooftops of its 16 buildings. The plant will occupy a 12,000 m 2 area spread over the rooftops of 16 academic buildings. The energy generated by the solar photovoltaic plant will be up to 25% of the total power requirement of the 16 buildings.

Table 2: Project Specifications

Particulars Technology Plant Rating Average cost of solar power Purpose Total System Cost Estimated savings Remark Photovoltaic Panels 1 MW Rs. 5.5 / unit Reducing the cost of electricity within the campus 8.4 crores with a 5 year maintenance period 1.5 crores / month

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What we know
1. As of 2013, solar energy from setting up rooftop photovoltaic cells is a financially viable source of electricity when compared to the current industrial and commercial tariffs of grid connected electricity. 2. Mumbai has high quality solar irradiation through a very large part of the year, providing for the possibility of significant electricity production (compared to even Munich, as seen in the following table).

Table 3: Comparison between Mumbai and Munich

Mumbai Average number of sun days Irradiation per Square metre 300 5.83 kWh/ m2 Munich 72 3.13 kWh/ m2

Therefore, one can easily gauge the significant advantage Mumbai enjoys over the southernmost German city of Munich which is a major adopter of large scale solar farms. 3. There is significant availability of rooftops in Mumbai.

Why net-metering is important

One key policy feature, which will increase the adoption of rooftop solar in Mumbai, is an enabling net-metering policy. Netmetering will provide valuable choice to potential adopters of roof top photo voltaic, by allowing them to feed the electricity generated into the grid and get credits for the same. Today a person can technically feed power into the grid but cannot be compensated for the power he or she contributes to the grid. In a net-metering enabled scenario, the distribution company will provide its consumer a bill which would display the amount of power consumed and the amount of power contributed to the grid by way of generation from the rooftop solar. The final bill will be the net power consumed, after offsetting the power supplied. The challenging part to be resolved for netmetering to be a reality is how the DISCOMs will look at having to accept power generated in such a distributed manner and then having to bear the financial cost of it. Will the tariff for such consumers who are also contributing to the grid be slightly higher, to compensate for the loss? In which case, the viability has to be seen from the point of view of those who will install the panels as well.

WHAT IS NET-METERING?

When a building is equipped with a renewable energy source and can supply the energy generated back into the grid, it is suitable for netmetering. An inverter converts the DC (direct current) power coming from the renewable energy source into AC (alternating current) power, which is then fed into the grid. The net consumption of the consumer is decided after deducting the number of renewable energy units supplied to the grid from the number of units consumed and is reflected in the monthly bill from the utility.

Net-metering will benefit considerably in a city like Mumbai which sees a peak load during the daytime when offices are using power for air-conditioning and other Page 17

needs. Peak generation from rooftop solar coincides with peak consumption times and hence promises to be useful.

Phased adoption
Having all buildings to install solar photo-voltaic panels at one go, will be unrealistic and will not happen. Therefore a phased adoption strategy will have to be designed which involves identifying those buildings where the governance structure of the building and the tariff category under which it is billed, allow for ease of installation and immediate financial viability. Rooftops where the following criteria are met will provide greater chances for success: 1. The electricity tariff paid by the building is in the industrial or commercial category; 2. There is significant rooftop area to install the solar panels. In the first phase, it will be desirable to go for larger rooftops, creating a capacity of at least 10KW; 3. Rooftops which are under a single management and where decision making is quick should be identified and facilitated in the first phase. Being the financial capital of the country, Mumbai is home to a huge number of commercial buildings. Additionally, being the capital of Maharashtra, there are numerous government establishments in the city. Due to this difference in the different buildings, not all will be in the same position to utilise their rooftops for generating solar energy.

What we need to know

An initiative of this magnitude requires a leadership which will show the vision and path towards large scale adoption of rooftop solar. The leadership could come from either a political entity of an enlightened bureaucrat or even a determined advocacy group. Currently, there is no barrier for self-consumption and therefore it is only the lack of awareness and knowledge about rooftop solar which is delaying its large scale adoption, but this needs to be investigated. Our initial meetings with officials from various government agencies and utility companies have proved that everybody has realised the value that solar rooftop can provide in reducing costs but everybody is either on a wait-and-watch policy or they are carrying out small-scale experiments of the same. However, we also realised that these are fragmented efforts and for tangible impact, there is a need for a more organised and cohesive approach, involving the companies, policy-makers and the end consumers in the planning and execution process.

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What should the role of a Mumbai solar policy be?

The Mumbai Solar Mission aims to facilitate creating a comprehensive framework to ensure large scale adoption of rooftop solar in Mumbai. The aim is to collaborate with the Maharashtra Electricity Regulatory Commission (MERC), utilities and the consumers with the aim of creating consensus on the subject of net-metering and create an inclusive policy to ensure every citizen of Mumbai is able to benefit from this initiative and create a showcase for the rest of the country to follow. The primary targets of the Mumbai Solar Mission would be: 1. Develop a comprehensive policy framework for the implementation of rooftop solar in Mumbai; 2. Set up a single-window facilitation cell for anybody wishing to implement solar solutions in their premises; 3. Provide high quality information on the complete gamut of options available for anybody wishing to adopt solar. At a time when India is emerging as a global economic power, with rapidly increasing energy needs, adoption of renewable energy sources especially solar energy as the mainstay of our energy security strategy is not an option, but an urgent imperative. This is also necessary for India to fulfil its climate change obligations and move confidently along the path of low-carbon economic growth. Since cities consume far more energy than rural areas, they must take the lead in adopting advanced energy technologies in their path towards sustainable development. And Mumbai must be in the forefront of urban Indias endeavours in this direction. Hence, ORF Mumbai has proposed the launch of the MUMBAI SOLAR MISSION in a Public-PrivatePeople partnership mode.

Should cities lead Indias renewable energy quest? YES! Should Mumbai set an example for other Indian cities? YES!!
CONTACT

Aditya Khandekar Rishi Aggarwal

adityakhandekar@orfonline.org rishiaggarwal@orfonline.org

Observer Research Foundation Mumbai NKM International House, 5th floor, Babubhai Chinai Marg, 178, Backbay Reclamation Nariman Point Mumbai 400 020 Tel: 022 6131 3800
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References
1. http://www.mnre.gov.in/ 2. 18th Electric Power Survey for Mega Cities, Central Electricity Authority, 2013 3. http://timesofindia.indiatimes.com/city/aurangabad/-Marathwada-Region-can-light-upentire-state/articleshow/28457276.cms 4. Joseph Daniel, Nandigana V. R. Vishal, Bensely Albert, and Iniyan Selvarsan Evaluation of the Significant Renewable Energy Resources in India Using Analytical Hierarchy Process, 2008, Multiple Criteria Decision Making for sustainable Energy and transportation systems, Proceedings of the 19th International Conference on Multiple Criteria Decision Making, Aukland, New Zealand 5. The Tata Power Company, presentation, 4th Coal Summit, 2012 6. Bewildering Indian policies fuel needless coal imports, Reuters http://in.reuters.com/article/2013/10/14/india-coal-tata-idINDEE99D00920131014 7. http://solarelectricityhandbook.com/solar-irradiance.html 8. IMD data 2012 9. http://www.climatedata.eu/climate.php?loc=gmxx0087&lang=en 10. http://timesofindia.indiatimes.com/city/mumbai/IIT-Bombay-goes-the-solarway/articleshow/29523331.cms

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Think Solar

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