INTERGRATON OF SOLAR POWER IN THE DISTRIBUTION SECTOR IN DELHI

A Dissertation report submitted in partial fulfillment of requirements for Masters of

Business Administration (PM)

Submitted to: - Submitted By:

Dr. Anil Kumar Ankit Singh

HOD MBA PM

MBA PM SAPID 500044057

UPES UPES

MBA

(POWER MANAGEMENT)

2015-17

College of Management & Economic Studies, UPES

1
 CERTIFICATE OF ORIGINALITY

This is to certify that this project work titled, Integration Of Solar Power in the Distribution Sector is a bonafide work
done by Ankit Singh under my guidance. This report has not been submitted earlier to University of Petroleum and
Energy Studies or any Institute for the fulfillment of the requirement of course of study.

This report is an original piece of work.

Date: Signature:
Dr.Anil Kumar
HOD, Power Management
UPES

2
 ACKNOWLEDGEMENT

I take this opportunity to thank everyone who has helped me during the course of this project.

At the very outset, I would like to express my gratitude to my mentor, Dr.Anil Kumar for his
invaluable guidance and support throughout the project. His expertise, knowledge and critical
feedback helped me to develop my project in the most appropriate way.

Finally, I express my wholehearted gratitude to all my faculties, who always guided me for this
project.

Date: Signature:
Ankit Singh

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EXECUTIVE SUMMARY

India is good to go to wind up plainly the fourth biggest sun powered market all around in 2016
behind just China, USA and Japan with 5.4 GW of expected limit expansion in the year. The tailwinds
are particularly solid with quickly falling expenses and more prominent ecological motivation in the
post COP21 world.

The Indian sunlight based market shows up in full sprout at this moment with key strategy changes
being presented and 25 GW of activities under various phases of advancement. 35 new tenders with a
total limit of 15.5 GW have been declared in the most recent year. An extra 5 GW of new tenders are
anticipating discharge in the coming months. There is expanding venture intrigue both from Indian
and worldwide engineers in the part. This frantic pace
of action is a major stride up as opposed to memorable sun powered limit expansion of roughly 1 GW
per annum for three straight years until 2014. Be that as it may, does the segment have adequate
money related ability to convey every one of these ventures?

The most humming theme for the area at this moment is the extreme rivalry with duties descending
strongly to M4.34-5.00/unit ($0.07-0.08) levels. Be that as it may, with numerous designers
attempting to raise capital and banks apparently hesitant to loan to ventures at such levies, advance in
2017 and 2018 is not prone to be as quick not surprisingly. Rather than Service of New and
Sustainable power source (MNRE) focus of 12 GW of utility scale sun based activities for FY 2016-17,
Scaffold TO INDIA appraises that real limit expansion will be just around 5-6 GW in FY 2016-17.

On the arrangement front, the Sun powered Parks Approach and UDAY conspire have been
hailed to a great extent as a triumphs however the more extensive segment strategy change through
revisions in the Power Demonstration 2003 is as yet anticipating parliamentary endorsement. Going
ahead, guaranteeing lattice vigor and venture/loaning craving at forceful tax levels will be the two
fundamental difficulties. Approach intercessions to address these difficulties together with request
development measures will be critical to feasible development of the segment.

One noteworthy disillusionment keeps on being the housetop sun based market where the 40 GW
focus for 2022 appears like an extremely remote prospect. This market needs more engaged strategy
support to guarantee compelling net-metering usage and fascination of money related financial
specialists. Generally, the development prospects for the India sun oriented market are splendid
giving a massive chance to financial specialists, designers and gear providers. Be that as it may, a
dosage of alert is required as the market will stay extremely value delicate and with its share of
difficulties.

The unavoidable change of the electrical network to a more appropriated era arrangement requires
close planetary system capacities well past basic net-metered, lattice-associated approaches. Time-of-
utilization and pinnacle request rate structures will require more modern frameworks plans that
incorporate vitality administration as well as vitality stockpiling into the framework design.
Controlling force stream into and from the utility matrix will be required to guarantee network
dependability and power quality. Elective security methodologies will likewise be required to oblige
extensive quantities of disseminated vitality sources.

This report gives an outline of the Research and development needs and depicts some pathways to
promising arrangements. The arrangements will, much of the time, require Research and
development of new segments, imaginative inverter/controllers, vitality administration frameworks,
inventive vitality stockpiling and a suite of cutting edge control calculations, specialized techniques,
conventions and the related correspondences. It is normal that these arrangements will push the

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"progressed coordinated framework" and "keen matrix" transformative procedures forward in a
speedier yet engaged way.

Power Sector in India

Control part is one of the key foundations for development of Industry and economy. In the course of
the last two year, India's economy extended at a normal yearly rate of 7.3% to 7.6%, putting it among
the main five quickest developing countries on the planet.

With around 315 GW of introduced limit (as of Walk 2017), the Indian power framework is among the
biggest on the planet, yet per capita utilization of power is short of what one fourth of the world
normal. An expected 55 million family units are not associated with the national matrix.
Notwithstanding when associated, many face visit disturbances and get low quality power. India's
energy framework needs to practically fourfold in size by the year 2040 to get up to speed and keep
pace with power request thatsupported by rising wages and new associations with the network
increments at just about 5% every year

With a normal sun oriented insolation of 4-7 kwh/m and 300 sunny days in a year, India's potential
for bridling sun based power is monstrous. Legislature of India (GoI) needs a developing offer of the
nation's power era to originate from sustainable power source.

In its NDCs, India means to build the share of introduced electric power limit from non-petroleum
product based vitality assets to 40 % by 2030. With India setting the aggressive focus of 175 GW by
the year 2022 for Sustainable Power, this area is presently balanced for a quantum hop.

As a piece of clean atmosphere duties, India arrangements to introduce 40 GW of PV Housetop

Galaxies by 2022. With a capability of around 124 GW, around 506 MW of the Housetop Sun powered
has been introduced up till December 2016.

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 Introduction

Since the get-go, the sun has captivated individuals. Antiquated developments exemplified the sun,
adoring it as a Divine being or Goddess. All through history, cultivating and farming endeavors have
depended upon the sun's beams to develop edits and maintain populaces.

With around 300 days of daylight consistently, India has among the best conditions on the planet to
saddle sunlight based vitality. The fast extension of sun based power can enhance the personal
satisfaction for a large number of Indians, particularly for its poorest subjects. It can likewise make a
huge number of occupations in the sun powered industry and support advance in every aspect of
improvement, helping the nation satisfy its fantasy of turning into the 'India without bounds.

Just as of late, be that as it may, have we built up the capacity to tackle the sun's magnificent power.
The subsequent innovations have promising ramifications for the eventual fate of sustainable power
source and manageability. Underneath, we've given a brief on sun powered power, how it works, and
what might be in store for the eventual fate of sun based.

Sunlight based power is a type of vitality bridled from the power and warmth of the sun's beams. It is
inexhaustible, and in this way a "green" wellspring of vitality.

On a bigger scale, sunlight based warm power plants additionally bridle the energy of the sun to make
vitality. These plants use the sun's warmth to bubble water and, thus, control steam turbines. These
plants can supply energy to a large number of individuals.

With a view to tending to India's vitality security challenge and to advance environmentally feasible
development of energy for making India's monetary improvement vitality proficient, it is viewed as
basic to pioneer a graduated move from financial action in light of petroleum derivatives to one in
light of non-non-renewable energy sources and from dependence on non-sustainable and exhausting
wellsprings of vitality to inexhaustible wellsprings of vitality. India is supplied with unlimited sunlight
based vitality potential. Around 5,000 trillion kWh every year vitality is episode over India's territory
zone with most parts getting 4-7 kWh per sq. m every day. Sunlight based vitality likewise gives the
capacity to create control on an appropriated premise and empowers fast limit expansion with short
lead times. From a vitality security viewpoint, sunlight based vitality is the most secure of all sources,
since it is bounteously accessible. It is likewise evident that given the extensive extent of poor and
vitality un-served populace in the nation, each exertion should be made to misuse the moderately rich
wellsprings of sunlight based vitality accessible to the nation.

Much the same as wind power, sun oriented power is a for all intents and purposes boundless and
unlimited asset (dissimilar to control created from superfluous petroleum derivatives). As advances
enhance and the materials utilized as a part of PV boards move toward becoming "greener," the
carbon impression of sun oriented power ends up plainly littler and littler and the method turns out
to be more open to the masses.

Sunlight based power is dependent upon the climate and the measure of daylight present in a
particular area. This implies land regions ailing in daylight, or regions that much of the time encounter
shady climate, may experience issues using sun oriented power adequately.

Furthermore, sunlight based power is a costly attempt. The advances frequently require a lot of land,
and they can be to a great degree expensive. Researchers are working diligently to locate a moderate,
effective answer for outfitting Solar power.

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A few Facts on Solar power:

Consistently, the sun pummels with enough energy to give worldwide vitality to a whole year.

It takes a normal of eight minutes for vitality to head out from the sun to the Earth.

Researchers have utilized sun oriented vitality to power spaceships since 1958.

Most solar pv pannels utilized today have a normal future of between 20-40 years.

The most well-known method for outfitting vitality from the sun is through photovoltaic (PV) boards
those vast, reflect like boards you've likely observed on housetops, handheld sun oriented gadgets,
and even rockets. These boards work as transmitters, taking in the sun's beams, warming up, and
making vitality (and power).

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Table of Contents
Chapter 1 9
An Introduction to the Distribution Sector in India 9
CHAPTER-2 14
REVIEW OF LITRETURE 14
Chapter 3 16
Solar at a glance 16
Chapter 4 21
High PV Penetration and the distribution System 21
Chapter 5 25
Policies Supporting Solar in Delhi 25
CHAPTER 6 29
Role Of Government 29
CHAPTER-7 33
GLOBAL PV MARKET REVIEW 33
Chapter 8 40
Solar power a helping hand in Rural Electrification 40
CONCLUSION 44

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Chapter 1

An Introduction to the Distribution Sector in India

Appropriation and Retail Supply is the most basic connection in the power advertise, which interfaces
with the end clients and gives income to the whole esteem chain. Indian power circulation takes into
account almost 200 million shoppers with an associated heap of around 400 GW that places the
nation among the biggest power customer bases on the planet. The customers are served by around
73 conveyance utilities 13 power offices, 17 private appropriation organizations, 41 corporatized
dissemination organizations and 2 State Power Sheets. It owes to the reality of sustenance of different
components in the area, for example, era, transmission, gear fabricating; which relies on upon its
operational execution and business reasonability. Nonetheless, in spite of its basic significance, era
portion has dependably been on the plan of the administration, in light of high-vitality shortage,
requiring need of enormous limit expansion.

Absence of center has brought about poor operational and money related execution of the segment, in
this way making more noteworthy need of segment change, with high calls for private investment as
far as private diversifying, open private-association (ppp), hardware providers. Therefore, enormous
open doors lie on fore in the segment, for different partners. Therefore, this paper builds up the
present situation of energy dissemination franchisee in urban power conveyance organize.

The segment has begun accepting more noteworthy consideration and speculation with the rebuilding
of the state power sheets (SEBs). A few new activities have been acquainted with decrease total
specialized and business (AT&C) misfortunes alongside a complete administrative system. Power Act
2003, National Power Arrangement 2005 and National Tax Strategy 2006 are vital controls
overseeing the division today with a mean to get rivalry the segment and enhance the administrations
to the end buyers.

The Govt. has additionally made substantial interests in the circulation area through the Rajiv Gandhi
Grameen Vidyutikaran Yojna (RGGVY) and Quickened Control Advancement and Changes Program
(APDRP) amid the Tenth Arrangement and has kept on amplifying the same in the Eleventh
Arrangement too. The point of these projects is to give access of power to all and cut down the AT&C
9
misfortunes to a level of around 15% the nation over. The different approaches and controls
presented by the administration are set to build rivalry and realize business suitability. Interest of
private players into the Circulation Segment has additionally been supported through different
models, for example, Open Private Investment as if there should arise an occurrence of Delhi and
Orissa and all the more as of late through information based conveyance franchisee models in
Maharashtra, Madhya Pradesh and Uttar Pradesh.

Overview of the existing System

The standard voltages on the appropriation side are in this manner 66kV, 33 kV, 22 kV, 11 kV and
400/230 volts, other than 6.6 kV, 3.3 kV and 2.2 kV. Contingent on the quantum of energy and the
separation included, lines of fitting voltages are laid. The primary conveyance hardware contains HT
and LT lines, transformers, substations, switchgears, capacitors, conductors and meters. HT lines
supply power to modern customers while LT lines convey it to private and business purchasers.

In the Tenth Arrangement, the state utilities included 855,059 ct. km of conveyance lines' Framework.
The quantity of venture down and dissemination transformers likewise expanded by 13,961 and
1,250,038 separately. This spoke to a limit expansion of 192,369 MVA and 86,512 MVA individually
amid the Tenth Arrangement, toward the finish of which (Walk 2007), appropriation foundation
remained at 6,580,949-ckt km of line system and a transformer limit of 863,462 MVA.

Future Requirement

The administration has set an eager focus for framework expansion in the appropriation fragment. It
arrangements to fourfold the circulation organize by including 3.2-million ct. km of dispersion lines in
the Eleventh Arrangement. Another 4.2-million ct. km is wanted to be included the Twelfth
Arrangement. Hence before the finish of the Twelfth Arrangement, the aggregate circulation organize
in the nation would have multiplied, in this way incredibly encouraging conveyance of energy to the
extending base of end-utilize clients. Encourage, it arrangements to realize 214,000 MVA of
transformer limit in the Eleventh Arrangement and another 270,000 MVA in the Twelfth
Arrangement. Of these, the dispersion transformers for the Eleventh and Twelfth Arrangements will
be 128,000 MVA and 162,000 MVA separately.

According to the CEA's 17s Electric Power Study (EPS), the all India vitality prerequisite is relied upon
to develop at a yearly rate of 6.8 for each penny amid 2007-08 to 2011-12 to achieve 968,659 GWh in
2011-12. The aggregate vitality prerequisite considers transmission and conveyance misfortunes of
roughly 22 for every penny, and thus the vitality utilization is required to be around 755,847 million
kWh. The vitality utilization is relied upon to be drawn similarly among provincial and urban buyers
all through the Eleventh Arrangement (2007-12), despite the fact that the share of rustic purchasers
wins decrease barely from 50.08 for each penny of aggregate utilization in 2007-08 to 49.89 for every
penny of aggregate utilization in 2011-12.

Reforms in the Sector

Accelerated Power Development Reforms Programme

The plan was propelled in 2002-03 as Extra Focal Help to the States for reinforcing and up-degree of
sub-Transmission and Circulation frameworks.

half motivating forces were given to SEBs/Utilities to decrease their money related misfortunes for
genuine money misfortune lessening.

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 Achievements:

571 undertakings were authorized under APDRP covering Circulation system of approx. 906 towns in
the nation. AT&C misfortunes have been gotten down beneath 20% 215 APDRP towns in the nation, of
which 163 towns have been brought underneath 15%.

The charging proficiency at national level has enhanced from 68.37% amid 2002-03 to 71.04% amid
2006-07.The national normal accumulation productivity has additionally enhanced from 92.68%
amid 2002-03 to 94.02 % amid 2006-07. With this change in charging and gathering proficiency, the
national normal AT&C loss of the conveyance organizations have diminished from 36.64% in the year
2002-03 to 33.07% in year 2006-07.

100% feeder metering has been finished in 23 states. General 98% feeder metering and 88% shopper
metering has been accomplished at national level.

The general business misfortune (without appropriation) of the utilities has lessened from Rs. 29,331
Crores amid 2001-02 to Rs. 27,446 Crores amid 2006-07.

Loss of utilities concerning turnover has lessened from 36.55% in year 2001-02 to 16.45% in year
2005-06.

Restructured APDRP (11th Plan)

The concentration of as of late endorsed Rebuilt APDRP (R-APDRP) in eleventh Arrangement and past
is on real, evident execution regarding misfortune lessening. State Control Utilities are required to
decrease AT&C misfortunes to 15%. The Utilities are likewise to accomplish the accompanying focus
of AT&C misfortune lessening for the Utility overall:

Utilities having AT&C misfortune over 30%: Decrease by 3% every year

Utilities having AT&C misfortune underneath 30%: Diminishment by 1.5% every year Tasks under the
plan are proposed to be taken up in Two Sections.

Part A

Arrangement of Benchmark information for the venture territory covering Shopper Ordering, GIS
Mapping, Metering of Dissemination Transformers and Feeders, and Programmed Information
Logging for all Appropriation Transformers and Feeders and SCADA/DMS framework for huge urban
areas as it were. Expected venture should be Rs. 10,000 crores.

Part B

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Redesign, Modernization and reinforcing of 11 kV level Substations, Transformers/Transformer
Focuses, Re-directing of lines at 11kV level and beneath, Load Bifurcation, Stack Adjusting, HVDS,
establishment of capacitor banks and portable administration focuses and so on. In remarkable cases,
where sub-Transmission framework is feeble, fortifying at 33 kV or 66 kV levels may likewise be
considered. Expected speculation should be Rs. 40,000 crores.

Rajiv Gandhi Vidyutikaran yojana (RGGVY)

RGGVY goes for charge of 125,000 un-energized towns and un-zapped villas and zap of 7.8 crore
families. The assessed cost of the plan (counting eleventh Arrangement) was Rs.16,000 crores around
and Rs.5000 crores were reserved for capital sponsorship in stage I amid the tenth Arrangement Time
frame.

Zap of un-energized Underneath Destitution Line (BPL) family units will be financed with 100%
capital endowment according to standards of Kutir Jyoti
Program in every single provincial residence. Families above neediness line will pay for their
associations at endorsed association charges and no appropriation will be accessible for this reason.
10% of the venture cost will be given by REC as delicate credit @ 5%.

Present Status:

558 activities have been endorsed with a cost of Rs. 25,679.64 crores for giving power to 1,16,124 un-
energized towns, escalated jolt of 3,49,853 as of now zapped towns, discharging power associations
with 4.09 crore rustic family units including 2.43 crore Beneath Neediness Line (BPL) families. The
combined accomplishment is the jolt of 53,048 until now un-charged towns; concentrated zap of
66,808 as of now zapped towns and arrangement of power associations with 48.18 lakh rustic family
units including 40.76 lakh BPL families.

Govt. of India has affirmed the continuation of the plan in eleventh Arrangement for achieving the
objective for giving access to power to all families by 2009 with a capital appropriation of

Rs. 28000 crores. Under the plan, Ninety for each penny capital appropriation would be given towards
general cost of the ventures under the plan.

Key Issues in the Distribution Sector:

AT&C misfortunes remain woefully high however the Rebuilt APDRP is planning to convey it to 15 for
every penny by 2012: AT&C misfortunes are descending just on account of a couple changing.
Utilities/SEBs while the national normal keeps on staying high. They're are-a few Pockets of
magnificence however general statewide lessening in AT&C misfortune remains and a predictable
descending pattern is not yet unmistakable. AT&C misfortunes that were 32.54 for each penny in
2002-03 still float around 30 for every penny starting at 2008-09. Control burglary is wild in some of
these states and some likewise have a high rate of gear robbery, especially in the country regions. This
has brought about high non-specialized misfortunes. Different causes incorporate broken meters and

12
unmetered supply. More prominent convergence of expert administrations inside the impediments of
state possessed discoms would go far in enhancing framework wide AT&C misfortunes.

Poor recuperations hamper: Another issue is poor charging and accumulation. Of the aggregate power
produced, under 50 for each penny is paid for. Power is stolen or not charged or power bills are not
paid at all or not paid on time. The antitheft enactment go by the Parliament in June 2007 gives a more
stringent structure to check power robbery and non-installment of bills. Facilitate, a Y-o-Y income
crevice in duties additionally hamper the monetary condition of the utilities

Duties keep on suffering from absence of business standards by and large: The majority of the issues
emerge from mistaken evaluating of energy whereby there are vast cross appropriations incorporated
with duty structures which give erroneous financial signs to the purchasers. While the Demonstration
accommodates lessening in cross endowment to +/ - 20%, given the political and financial structure of
the nation, very little has been finished by the controllers in diminishing the cross sponsorships or in
setting out a system for decrease of the same. Populist arrangements, for example, free power have
turned out to be a major dampener with the state governments unwilling or not able to repay the
discoms for the extra costs they need to shoulder thus of these measures. Not exclusively do these
populist measures put an extra budgetary weight on the discoms yet they additionally prompt
wastage of energy by the ranchers. Water tables in various

States have been pushed down, which has prompted a genuine water emergency.

Interest in dispersion foundation remains lower than what is alluring: Interest in the appropriation
division has not kept pace with interest in era, which has prompted high transmission and conveyance
(T&D) misfortunes, poor systems, and deferrals in activities. Because of dissemination system
requirements, control can't be completely transported from surplus to shortage regions, and open get
to exchanges can't be viably encouraged.

Dissemination Open Get to Even now in Beginning Stages: As per the command of the EA2003, open
access in transmission was operationalised with prompt impact, and that in conveyance was to be
actualized in stages. All the 23 SERCs have passed last directions for execution of open access in
appropriation in stages (1 MW or more by Dec 2008); notwithstanding, the genuine usage of open get
to is still exceptionally early. Until the issues in open get to are settled, the goal of rivalry in the retail
portion should never appear. Open Access in idea is welcome for the conveyance part;
notwithstanding, the same should just take off when there is sufficient power in the nation and the
cross appropriations are lessened to sensible levels in order to give a level playing field to occupant
utility and open get to supplier.

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CHAPTER-2

REVIEW OF LITRETURE
The Indian solar market, especially in the solar photovoltaic, has observed a significant growth after
the starting of the Jawaharlal Nehru National Solar Mission in 2010, with an installed capacity of about
3 GW in four years. The Indian government is determined in achieving 100 GW of grid connected solar
power by 2020, off which 40 GW would be from decentralized and rooftop-scale solar projects.
Rooftop solar PV is to play an important role in meeting energy demands across the segments. It has
already been achieved grid parity for commercial as well as industrial consumers, and also becoming
attractive to the residential consumers as well. As a result of which multiple state governments have
taken initiatives to kick-start implementation of the rooftop solar PV projects within the states.

Reaching the sun with rooftop solar, published by TERI with support from Shakti Sustainable
Energy Foundation in consultation with Ministry of New and Renewable Energy (MNRE) and all
stakeholders, assesses Indias market potential for rooftop PV, surveys consumers to identify real and
perceived barriers that prevent consumers to install such systems, identifies strategies to
commoditize rooftop PV and proposes business, operating, financing and cost recovery models that
may be appropriate to tap this huge customer-side market.

NATIONAL SOLAR MISSION GRID CONNECTED SOLAR ROOFTOP PROGRAMME IN INDIA,

prepared by EU India Technical Cooperation Project: Energy, talks about the fastest growing
energy generation technology over the past decade, mainly due to the large-scale adoption of the
technologies by the utilities and private sector. Rooftop solar (RTS) has led the development of the
solar photovoltaic sector across the globe with its ability to replicate rapidly. To promote such things
in the country, the central and the state government have taken many initiatives.
This reports aims to provide information on RTS business models, stakeholders, promotional schemes
and policies as also new initiatives at one place to raise awareness amongst general public.

Quantifying Solar Photovoltaic Potential on a Large Scale for Renewable Energy Regional
Policy, by L.K. Wiginton, H. T. Nguyen, and J.M. Pearce suggests about the geographic sampling
with object-specific image recognition to determine the available rooftop area for PV deployment in a
large-scale region.

Grid Connected Roof Top Solar Power Generation: A Review, by Mr. Radhey Shyam Meena,
Mr.Jeetendra Singh Rathore & Ms. Shivani Johri talks about the Utility scale plants are being set up
worldwide with promotional mechanisms which are set up on ground surface. Available rooftop area
on the buildings can also be used for setting up solar PV power plants, and thus dispensing with the
requirement of free land area. The electricity generated from SPV systems can also be fed to the
distribution or transmission grid after conditioning to suit grid Integration. Currently, whole world is
in the midst of an energy revolution that is fundamentally changing the future of rural electrification.

Rooftop Solar and Net Metering in India - A Detailed Analysis, a white paper from the Efficient
Carbon, discusses about the net metering mechanism carried in the various states of the country. And
14
also it talks about how the battery system is opt out from such mechanism, making the Solar PV
System (Rooftop System) inexpensive to the developer or to the consumer who is to install the system
in his premises.

RESEARCH METHODOLOGY
This project of is based on the basic concept of research methodology. Following concepts mentioned
in the section are directly or indirectly used while doing the project.
RESEARCH DESIGN
The examination configuration is the hypothetical structure in which research is led; it constitutes of
the blue prints for the gathering reason, investigation and in addition estimation of information. As
such the design includes an outline of what the researcher will do from writing the hypothesis and its
operational implications to the final analysis of data. This is an exploratory kind of research study.
UNIVERSE
All items in any field of inquiry constitute a universe or population. The universe in this case
includes the Renewable Recourses for Power Sector.
SAMPLE
The samples taken are Solar PV Plants in India, which includes the quotations from various suppliers
for equipments.
DATA COLLECTION
The task of data collection begins after a research problem has been defined and research design/plan
chalked out. Data can be categorized into two types: primary data and secondary data. Primary data
are the Financial Statements, which has been reconstructed in this report. Secondary data are those
which have already been collected by someone else and which have already been passed through the
statistical process, these are the information given by Investors Information Memorandum.
DATA ANALYSIS
The data, after collection, has to be processed and analyzed in accordance with the outline laid down
for the purpose at the time of developing the research plan. It is important for a scientific study and
also for ensuring that all relevant data is used for making contemplated comparisons and analysis.

15
Chapter 3

Solar at a glance

Land Area: India being a tropical nation gets sufficient sun powered radiation for 300 days, adding up
to 3,000 hours of daylight identical to more than 5,000 trillion kWh. All the districts get 4-7 kWh of
sun powered radiation per sq. mtrs with around 2,3003,200 daylight hours/year, contingent on the
area. Potential zones for setting up sun oriented power plant can be broke down utilizing sun
powered illumination guide of India.

Control Lack: Power misfortunes in India amid transmission and appropriation have been amazingly
high throughout the years and this achieved a most noticeably awful extent of around 24.7% amid
2010-11. India is in a squeezing need to hold over a pinnacle control setback of 13% by diminishing
misfortunes because of burglary. Burglary of power, basic in many parts of urban India, adds up to
1.5% of India's Gross domestic product. Because of lack of power, power cuts are regular all through
India and this has unfavorably influenced the nation's monetary development.

16
Solar Potential in India

As far as all sustainable power source, at present India is positioned fifth on the planet with 15,691.4
MW network associated and 367.9 MW off-framework sustainable power source based power limit.
India is among main 5 goals worldwide for sunlight based vitality advancement according to Ernst
and Youthful's sustainable power source engaging quality record

Present Status

Introduced Limit

Sunlight based power has so far played a nearly non-existent part in the Indian vitality blend. The
network associated limit (all PV) in India now remains at 481.48 MW starting at 31st January 2012
and of this January alone represented 291.60 MW limit increases.

Notwithstanding, the market is set to develop fundamentally in the following ten years, driven mostly
by rising force request and costs for petroleum derivatives, the yearning National Sun based Mission
(NSM), different state level activities, sustainable power source standards including sun based vitality
quantities for utilities and by falling universal innovation costs. Empowering the spread of sun
oriented power era (both CSP and PV) and going for network equality (at present at around
RS.5/kWh) by 2022 and equality with coal control era (as of now at around RS.4/kWh) by 2030, is a
17
key component in India's far reaching, long haul vitality supply procedure. Keeping in view the sun
powered yearly insolation, sun based power could in this manner effectively address India's long haul
control necessities. Be that as it may, it must be cost-focused. As of December 2011, sun based power
era in India costs around RS.10/kWh, or more than 2.5 fold the amount of as power from coal. Vitally,
it is pivotal that the business gets the correct arrangement support to guarantee that undertakings are
executed and performed up to the stamp.

Solar Power in India: Future

In sun powered vitality part, numerous extensive activities have been proposed in India.

Thar Leave has some of India's best sun oriented power ventures, assessed to create 700 to 2,100 GW.

On Walk first, 2014, the then Boss Pastor of Gujarat, Narendra Modi, introduced at Diken in Neemuch
area of Madhya Pradesh, India's greatest sun oriented power plant.

The Jawaharlal Nehru National Sun based Mission (JNNSM) propelled by the Inside is focusing on
20,000 MW of sun based vitality control by 2022

Gujarat's is spearheading sun oriented power strategy goes for 1,000 MW of sun oriented vitality era.

In July 2009, a $19 billion sun oriented power plan was divulged which anticipated to deliver 20 GW
of sun oriented power by 2020.

Around 66 MW is introduced for different applications in the rustic region, adding up to be utilized as
a part of sun powered lamps, road lighting frameworks and sun oriented water pumps, and so forth.

Requirement For a move in power creating strategy

In 2013-14, top power deficiency of India was around seven percent and power request is relied upon
to ascend by 7.4 for each penny a year amid the following quarter of a century. Shockingly, India can't
reasonably hope to extension this power shortfall by expanding dependence and reliance on the
petroleum derivatives .The purpose behind the same are many, going from financial to natural and
medical problems. As indicated by Vitality Measurements 2012, India imports around 75 percent of its
oil, which in truth contains 33% of its aggregate imports. Essentially, India's coal imports are probably
going to touch an incredible 185 million tones by 2017. Thus, the Indian government has been
additionally trying genuine endeavors to improve India sustainable power source creation since later
past.

A noteworthy preferred standpoint of sustainable power source is that it can be recovered and is in
this way supportable, as it will never run out. It has a few focal points over its hydrocarbon-based
options and gives generous advantages to our atmosphere, our wellbeing and our economy. A portion
of the critical advantages of sustainable power source are, little to be no an Earth-wide temperature
boost emanations, enhanced general wellbeing and natural quality, an immense and boundless vitality
supply, stable vitality costs and a more solid and versatile vitality framework.

Future Vision

India is one of the quickest developing nations as far as vitality utilization. As of now, it is the fifth
biggest buyer of vitality on the planet, and will be the third biggest by 2030. In the meantime, the
nation is intensely subject to fossil wellsprings of vitality for the majority of its request, therefore
requiring to forcefully seek after option vitality sources, for example, sun oriented, wind, biofuels,
little hydro, geothermal and others. The nation has an expected sustainable power source capability of

18
around 85,000 MW from economically exploitable sources: wind: 45,000 MW, little hydro: 15,000 MW
and biomass/bioenergy: 25,000 MW. Also, India can possibly produce 35 MW per square km utilizing
sun oriented photovoltaic and sun based warm vitality.

It has proposed an expansion of 15,000 MW of Sustainable power source era limits amid the period.
Of this proposed limit expansion, wind control ventures are required to contribute around 70 percent
(10,500 MW) while Little Hydro Ventures (SHP) would represents 9.3 percent (1,400 MW).

Different sorts of non-regular power era strategies

Wind Power

India's wind control potential has been evaluated at 48,500 MW. The present specialized potential is
evaluated at 13,000 MW, accepting 20 percent matrix entrance, which would increment with the
enlargement of network limit in potential states.

India is actualizing the world's biggest wind assets evaluation program containing wind observing,
wind mapping and complex landscape ventures. This program covers 800 stations in 24 states with
around 200 wind observing stations in operations at present.

Hydro Power

Hydro power is the biggest sustainable power source asset being utilized for the era of power. The
50,000 MW hydro activities have been as of now propelled and are as a rule overwhelmingly sought
after with nitty gritty venture report (DPRs) for tasks of 33,000 MW limit effectively under planning.

Tackling hydro potential quickly will likewise encourage monetary improvement of states, especially
North-Eastern States, Sikkim, Uttaranchal, Himachal Pradesh and J&K, since a substantial extent of our
hydro control potential is situated in these States. In India, hydro control ventures with a station limit
of up to 25 megawatt (MW) each fall under the classification of little hydro control (SHP).

Solar Power
India has one of the world's biggest projects in sunlight based vitality, which incorporate Research
and development, exhibition and use, testing and institutionalization, modern and limited time
exercises. Prepared crude material for sun oriented cells, substantial limit SPV modules, SPV rooftop
tiles, inverters, charge controllers all have great market potential in India as do progressed sun
powered water warmers, rooftop coordinated sun based air radiators, and sun powered
concentrators for power eras (over 100 KW).

Biomass Power

All around, India is in the fourth position in creating power through biomass and with a gigantic
potential, is ready to wind up noticeably a world pioneer in the use of biomass. Biomass control
ventures with a total limit of 773.3 MW through more than 100 tasks have been introduced in the
nation. Throughout the previous 15 years, biomass control has turned into an industry pulling in
yearly venture of over Rs. 1,000 billion, producing more than 09 billion unit of power for each year.

More than 540 million tons of harvest and manor deposits are delivered each year in India segment is
either squandered, or utilized wastefully. Other than these, there is potential for producing around
2,600 MW of energy from urban and metropolitan squanders and roughly 1,300 MW from mechanical
squanders in India. A sum of 48 tasks with total limit of around 69.62 MW comparable have been
introduced in the nation in this manner using just 1.8 percent of the potential that exists. Also, as of

19
late GOI commanded the mixing of 10 percent fuel ethanol in 90 percent gas. This command as made
an around 3.6-tycoon interest for fuel ethanol in mix order to the whole nation.

Why Solar Power?

Sun oriented Vitality can be used for changed applications. So the response to "Why Sunlight based"
question can be looked for from two alternate points of view: using sun oriented vitality for lattice
intelligent and off-matrix (counting hostage) control era.

1. Framework associated with solar power:

Lattice intuitive sun based vitality is gotten from sun powered photovoltaic cells and CSP Plants on a
vast scale. The lattice association is picked because of taking after reasons:

Sunlight based Vitality is accessible for the duration of the day, which is the pinnacle stack request
time

Sun based vitality transformation gear's have longer life and need lesser support and thus give higher
vitality framework security

Low running expenses and lattice tie-up capital returns (Net Metering)

Not at all like regular warm power era from coal, they don't bring about contamination and create
clean power

Plenitude of free sun oriented vitality all through all parts of world (albeit bit by bit diminishing from
central, tropical, sub-tropical and polar districts). Can be used all around.

2. Solar power for off-network arrangements:

While, the regions with less demanding lattice get to are using matrix network, the spots where utility
power is insufficient or excessively costly, making it impossible to bring, must choose the option to
settle on their own era. They produce control from a different scope of little neighborhood generators
utilizing both petroleum derivatives (diesel, gas) and locally accessible sustainable power source
advancements (sunlight based PV, twist, little hydro, biomass, and so on.) with or without its own
stockpiling (batteries). This is known as off-network power.

Strategies For Bridling Sun based Vitality

Sun oriented POWER

Gathering daylight and changing over it into power deliver sunlight based power. This is finished by
utilizing sun powered boards, which are extensive level boards made up of numerous individual sun
oriented cells. It is frequently utilized as a part of remote areas, in spite of the fact that it is winding up
noticeably more prevalent in urban ranges also.

Sun powered Stove

The primary saddling of sun based vitality was to cook nourishment in an exceptionally planned
broiler that caught the sun's beams to warmth sustenance.

20
Chapter 4

High PV Penetration and the distribution System

PV frameworks create vitality with negligible natural effect. Nonetheless, a straightforward PV
framework without capacity gives control just when the sun sparkles. It doesn't create control at night
when burdens can be high, and the power yield from a PV framework can increment or lessening
quickly because of cloud sections. While the business sectors for framework - associated private and
business PV frameworks are developing quickly, the aggregate commitment of PV frameworks to the
country's energy supply is little and presently has no noteworthy impact on the operation of the
country's energy frameworks. Be that as it may, as the amount of vitality produced by sun oriented
and other dispersed vitality frameworks winds up plainly critical, these frameworks can possibly
antagonistically affect utility framework operation. To moderate these effects, changes are probably
going to be made to utility/PV framework interface prerequisites and to utility rate structures, which
thusly may adjust the estimation of these frameworks.

a) PV Framework Attributes and Effects

Today's network associated private and business frameworks normally have the accompanying
attributes and related effects:

The PV framework and the inverter are associated with the network in parallel with the heap.

The load is served at whatever point the framework is accessible.

Energy created by the PV framework diminishes the clear load. Vitality created in
overabundance of the heap streams into the appropriation framework.

The PV framework has no capacity and can't serve the heap without the matrix.

The PV framework produces control at solidarity control element and utility supplies all Volt
Ampere receptive power.

The inverter meets the necessities of IEEE 1547-2005.

There is no immediate correspondence or control between the utility and the inverter.

If the inverter detects that utility administration has fallen outside defined limits for voltage as
well as recurrence or utility administration is intruded on, the inverter will separate from the utility
until ordinary conditions continue. The heap stays associated with the utility.

For private and little business frameworks, the network interconnection is normally net-
metered at a level rate.

The cost of vitality is consistent for the duration of the day and there is no request charge.

When overabundance vitality is created, the meter turns in reverse.

Energy is purchased and sold at a similar cost.

Over the course of a month or a year, if vitality delivered surpasses vitality utilized; the utility
won't pay for the overabundance over the sum utilized.

21
 If the lattice is not accessible, framework tied PV inverters (without vitality stockpiling and
load exchange ability) can't serve the heap, notwithstanding when daylight is available and the PV
modules can deliver control.

For substantial scale business frameworks, rate structures are more mind boggling.

Time-of-utilization rates regularly apply, with cost of vitality being higher amid times of
pinnacle request.

Demand accuses may apply of a huge bit of the service charge got from the most noteworthy
power necessity (kW) measured over a 15 to 30 minute interim amid the month to month charging
period.

A charge for VARS (responsive power) may apply.

Net metering is less normal, and a few frameworks are not allowed to convey any power back
to the utility. For this situation, the heap should dependably surpass the vitality produced by the
nearby planetary group.

Other frameworks have double meters and power is acquired by the utility at a lower rate than
the rate charged for power provided by the utility to the client.

a) Implications for Utility Operations

There are utility worries that high infiltration of inverter-based sunlight based vitality frameworks
alongside other dispersed era sources on circulation lines will add to hazards and perhaps perilous
operations because of one or a few of the accompanying plan and operational attributes:

Because PV vitality generation does not generally harmonize with the circumstances when it is
most practical for utilities to utilize it, it can adversely affect utility working financial aspects.

No power is accessible in the hours quickly after dusk when interest for power might be high.
Accordingly, the utility must build top power era amid these hours.

Conversely, utility request is low in the early morning hours (dawn to ~ 9 am). Control from
heavenly bodies amid these hours brings about a lower stack for the utility, diminishing the
requirement for prudent 24-hr base load control, and expanding the requirement for more costly
middle of the road and cresting power amid whatever is left of the day.

From the utility point of view, net-metered, level rate clients, particularly those whose net
request approaches zero don't pay a decent amount of their expenses.

If vitality created parallels vitality utilized, then vitality related charges (the prevailing some
portion of most private and little business bills) will approach zero.

Without a request (kW) charge or noteworthy interconnection charge, clients will pay little for
the advantages of being associated with the network.

Power generation from an individual PV framework may increment or decline quickly because
of cloud entries.

22
 In most cases, the rate of progress of the aggregate yield from PV frameworks will be directed
by the geographic dispersal of the frameworks. Be that as it may, for a situation where the
administration range is moderately little and quick climate changes can happen, estimations

Led by Tucson Electric Power demonstrate that a quickly passing cloudbank can basically take out all
sun based era crosswise over Tucson in under 5 minutes.

The presentation of critical measures of quickly changing discontinuous power in an utility

framework can influence the controls on and increment the requirement for turning hold.

On the off chance that an utility encounters hanging voltage under popularity conditions, IEEE 1547
requires that inverters disengage. In any case, since the heaps are not consequently separated, the
utility will see an expansion popular, possibly exasperating the reason for the voltage list and
prompting a power outage (diminished utility framework unwavering quality).

The expansion of vast quantities of inverters has been appeared to build the likelihood of islanding,
amid which inverters keep on supplying nearby loads after an utility fault.2 Different effects to the
utility include:

Inverters are constrained in their capacity to present amazingly abnormal amounts of short
out current, however the expansion of vast frameworks or numerous little frameworks can entirety to
critical short out streams and potentially cause gear breakdown or harm.

Utility assurance transfers are intended to distinguish a blame, e.g. a curve to ground made by
a tree limb falling over a line. The transfers quickly disengage from the blame to permit the blame to
clear, and after that reconnect to give proceeding with administration. On the off chance that islanding
identification comes up short and inverters stay on-line:

The inverters might be harmed by the reconnect.

The inverters may keep on supplying current, which could keep up the blame, creating the
utility insurance transfers to bolt open. Utility specialists should then be dispatched to reset the
transfers, and clients might be left without power for a critical time.

When specialists are dispatched, if the inverters are still on-line, the security of the
professionals is debilitated in view of energy being provided to the heap side of detaches and brought
down electrical cables.

Expansive power stream into dissemination frameworks that were intended for one-way stream may
affect framework direction and insurance. Completely understanding the impacts of high infiltration
on conveyance framework operation and configuration requires additionally think about, however
various potential issues have been distinguished.

Reverse control stream can meddle with voltage direction. Voltage controllers measure current
and voltage and will keep up higher voltage toward the start of an outspread line to guarantee
sufficient voltage toward the finish of the line, in extent to power stream. Presentation of noteworthy
circulated control downstream from the voltage direction framework will make line stacking give off
an impression of being low.

If the power is infused close to the finish of the line, high voltage may happen by then, as
appeared in Figure 2.

23
 Fuses are intended to secure the current conveying ability of a line, yet infusion of energy
downstream from a circuit won't be identified, prompting the potential for over-burden.

24
Chapter 5

Policies Supporting Solar in Delhi

Policy Framework by DERC
Regulations supporting solar power in Delhi:

The Policy is known as the Delhi Solar Energy Policy, 2016. This Policy will be applicable for
any solar energy generating system with a capacity equivalent or more than 1 KWp.

The policy has the following objectives:

. Reduce Delhis reliance on conventional energy while increasing its energy security and
lowering average energy prices in the long term. Promote rapid growth of rooftop solar
power via a combination of generation targets, regulations, mandates and incentives.

. Encourage market-based approaches and public-private partnerships to drive demand and

adoption, with minimal use of State Government subsidies. Develop initiatives to raise
public awareness of solar energy in Delhi.

. Ensure fairness for all stakeholders in the solar ecosystem, including roof top owners,
DISCOMS, investors, consumers of non-solar power, technology and services
providers.

. Use regulatory mechanisms to drive demand and adoption, such as mandating solar plant
deployments on government rooftops, requiring in-state solar RPO targets for
DISCOMS, modifying building bylaws to facilitate solar plant deployment, specifying
responsibilities for the inspection/certification of solar plants, aggregating demand for
solar projects, and more.

. Promote net metering / gross metering and grid connectivity for all solar plants by
simplifying and streamlining processes and methods.

. Generate employment in the solar energy sector through skill development especially for
youth. Establish core technical competence of professionals in the NCT of Delhi to
initiate and sustain effective management of solar projects and infrastructure.

. Provide Generation-Based Incentives for the domestic segment where solar power costs are
yet to achieve parity for most users, as well as tax exemptions and waivers for all
consumers.

. Promote a robust investment climate that enables multiple financial models, from self-
owned (CAPEX) to third-party owned (RESCO) models. Also facilitate access to loans at
preferential interest rates through various schemes that may be introduced from time
to time, whether through public or private channels.

. Establish policy implementation, monitoring and compliance framework to make sure that
efficient execution and periodic review of the policy takes place.

. Develop solar energy as part of an overall strategy of providing affordable, reliable,

24X7 Power to all citizens, incorporating demand side management, energy
conservation, energy efficiency initiatives, quality assurance and longevity of projects,
25
 distributed renewable energy generation, and smart grid development.

Eligible Entities:

This policy applies to all electricity consumers under all electricity tariffs in Delhi and to all
entities that setup and operate power plants in Delhi.

The Nodal Agency and its role:

Energy Efficiency and Renewable Energy Management Centre (EE&REM) is a sub-division of

the Department of Power, GNCTD, which shall act as the State Nodal Agency (SNA) for the
purposes mentioned in this Policy and shall be responsible for the effective implementation of
this Policy in consultation with the State Government, eligible consumers, the Central
Government, other States and other stakeholders.

The State Nodal Agency (SNA) shall facilitate the Eligible Entities in implementing the solar
plant to provide single-window services to all Eligible Entities and undertake following
activities:

i. Announcement of solar policy, amendments, and related schemes

The SNA shall take the lead in launching this Solar Energy Policy to the public through the
use of media, PR, billboards, advertisements, websites, and more. It will also communicate
amendments to the Policy to major stakeholders via its website and/or other means.

ii. Allotment of the solar power capacities

The SNA shall, from time to time, undertake the process for allotment of solar power
capacities on a first-come-first-served basis under various schemes of State and Central
Government and its identified agencies in a transparent manner to the DISCOMS and other
project developers.

iii. Facilitation in development of solar projects

The SNA shall assist solar project developers in obtaining all necessary

clearances and approvals from different Government Departments.

iv. Support in establishing protocols/procedures for easy adoption of solar power

The SNA shall also support the DISCOMS in developing the protocols and procedures for easy
adoption of solar plants by consumers. The DISCOMS shall be responsible for managing all
transactions and accounting processes relating to net metering, group net metering and
virtual net metering.

v. Maintain a website for consumers interested in Rooftop Solar

The SNA shall develop and maintain a website with educational material and other necessary
resources for potential consumers in Delhi. The website shall have information such as an up-
to-date list of contacts to get started, current incentive schemes, resources for finding
financial loans, solar integrators and service providers, and other information to promote
education and awareness among consumers.

vi. Identification of Sites for Deployment of Rooftop Solar Power Plants

26
The SNA shall assist project developers in identifying the technically feasible sites/roofs under
jurisdiction of the State Government for deployment of solar plants. The SNA shall also
encourage deployment of solar plants on sites under the jurisdiction of private
institutions/buildings that are not mandated as per this Policy.

SNA along with other stakeholders shall strive to utilize maximum ground/roof area and
install solar PV modules of maximum indigenously available conversion efficiency so as to
obtain maximum use of solar power generation.

The SNA will play a key role in the aggregation of potential rooftop projects and provide
guidelines to nominated State Agency doing technical and commercial assessment of
competitive bids by private entities. The SNA may also appoint an external commercial party
to fulfill the role of the aggregator.

vii. Management of the Green Fund and Disbursement of the GBI

The SNA will manage the Green Fund and disburse the GBI as provided for in this Policy.

viii. Support in availing Subsidies

The SNA will pass on any subsidies available through the Central Government (MNRE) or
State Government to consumers, integrators, and other solar developers in the State, as
applicable.

ix. Capacity Building, Awareness Creation, Green Fund Management

The SNA in association with Central Agencies shall oversee the creation and utilization of a
Solar Green Fund in Delhi, which may utilize the Air Ambience Fund established by the State
of Delhi. Solar Green Fund can also include contribution from any other sources. The fund so
created shall be utilized for GBI incentive payments, organizing capacity building and training
programs, creating public awareness and other activities deemed necessary for the promotion
and faster implementation of solar plants in the State. SNA will hold workshops in association
with RWAs to increase the solar penetration.

x. Budgetary Support

To help achieve the targets in this Policy, the SNA, working with DISCOMS and/or other
entities, shall undertake assessment of solar potential and project costs for public buildings
and submit them to the State Government for budgetary support, as necessary.

The Relationship of the consumer and the solar plant developer:

Any consumer who installs solar plants on his rooftop and signs a PPA, such as with a
Renewable Energy Service Company (RESCO), shall provide convenient and periodic rooftop
access to the RESCO as needed, to install and perform maintenance services on the solar
plant for the entire term of the PPA. Consumer shall also retain full physical ownership of the
rooftop and ensure reasonable security to visiting service staff.

Before commissioning a power plant of capacity up to 200 KWp, the

consumer/installer/developer shall submit a Release Form to the DISCOM certifying that the
installer performed routine safety checks and verifications. The SNA shall also be authorized
to perform onsite checks on solar installations, as necessary. Above 200 KWp system
installations, consumer shall obtain a Safety Certificate from an Electrical Inspector of the
Delhi Government.

Renewable Energy Service Company (RESCO) shall indemnify the roof owner/consumer
against all damages to the structure and waterproofing of roof in case of roof top solar plants
suitably if it fails to repair the same.
27
RESCO shall also strive to minimize insertion of voltage fluctuations & harmonics to the grid.
When grid will be fed from so many small power sources electrical disturbances are likely
which can be reduced only by suitable corrective mechanisms associated with inverter &
synchronizing operational.

Evacuation facility and connectivity to the electricity system

Directives issued by DERC shall govern the voltage of evacuation of the electricity from solar
plants. Evacuation infrastructure shall be developed and augmented, wherever necessary, by
the State Transmission Licensee and/or the DISCOM, as the case may be. Any infrastructure
associated cost for the purpose of installation of the Solar PV plant, including but not limited
to network augmentation shall be borne by the owner of the solar project.

The connectivity of solar plants with the electrical grid at voltage level 33kV and above shall
be governed by DERC Net Metering Regulations and Guidelines, Central Electricity Authority
(Technical Standards for Connectivity to the Grid) Regulations, 2007 and amendment thereof
whereas the connectivity of the solar plants with the grid at voltage level below 33kV shall be
governed by the Central Electricity Authority (Technical Standards for Connectivity of
Distributed Generation Resources) Regulations, 2013, as amended from time to time.

Legal Framework for the Policy

1. The Electricity Act, 2003 mandates that the Electricity Regulatory Commissions and the
Governments take necessary steps to promote Renewable Energy. The preamble to the
Electricity Act, 2003 recognizes the significance and importance of promotion of
efficient and environmentally benign policies.
2. Section 61(h) of the Electricity Act, 2003 provides that while specifying the terms and
conditions of determination of tariff, Regulatory Commission shall be guided, inter alia,
by the promotion of cogeneration and generation of electricity from renewable sources
of energy.
3. The National Electricity Policy (NEP) & Tariff Policy notified by the Central Government
under the provisions of section 3(1) of the Act has also addressed the issues of
untapped potential of energy from non-conventional and renewable energy sources.
4. Section 86(1)(e) of the Act specifies that one of the functions of the State Electricity
Regulatory Commissions is to promote cogeneration and generation of electricity from
renewable sources of energy by providing suitable measures for connectivity with grid
and to promote sale of such power to any person. The Regulatory Commission is also
required to stipulate that a certain percentage of the total consumption of electricity in
the area of a DISCOM shall be obtained from renewable energy source (Renewable
Purchase Obligation, or RPO).
5. To help achieve the solar capacity targets outlined in Section 9 of this Policy, the Delhi
Electricity Regulatory Commission (DERC) shall determine annual Solar Renewable
Purchase Obligation (RPO) targets for the DISCOMS, separate from the non-Solar RPO
targets. The DISCOMS shall give priority and preference to sourcing at least 75% of
their RPO targets within the state of Delhi. All solar energy generated at a net-metered
connection site in a DISCOMs territory shall count towards that DISCOMs RPO target.
6. In case a DISCOM fails to comply with the above RPO mandates, penalties specified by
DERC for such non-compliance shall be strictly enforced.
7. DERC under Section 86(1)(e) of the Electricity Act 2003 has also notified Net Metering
Regulations and Guidelines, 2014 for enabling Delhi consumers to generate Solar Energy and
to connect the system with DISCOMs Distribution Grid for exporting surplus energy
from renewable sources.
8. DERC has also notified the DERC (Terms and Conditions for Determination of Tariff for
Procurement of Power for Grid-Connected Solar Photo Voltaic Project) Regulation,
2013 for determination of tariff for Grid Connected Solar PV projects of capacity equal
to or more than 25KWp.

28
CHAPTER 6

Role Of Government
Initiatives taken by Government for effective implementation of the Policy:

GNCTD will promote the installation of solar power plants under all consumers segments
and categories to realize the aforesaid minimum targets.

Grid connected rooftop solar power plants

The State shall promote the development of grid-connected solar plants on rooftops for
meeting own electricity needs and injecting surplus electricity into the distribution grid.
Grid-connectivity must comply with Delhi Electricity Regulatory Commission (Net
Metering for Renewable Energy) Regulations, 2014 and DERCs Terms and Conditions for
Determination of Tariff for Procurement of Power for Grid-connected Solar Photovoltaic
Power Projects, 2013.

Group Net Metering

To encourage solar plants on rooftops of buildings that cannot consume all of the energy
generated locally, DISCOMS shall facilitate Group Net Metering, whereby surplus energy
exported to the grid from a solar plant at the location of the solar plant can be adjusted in
any other (one or more) electricity service connection(s) of the consumer within the NCT
of Delhi, provided these connections are in the same DISCOM territory. The purpose of
this provision is to help maximize the utilization of rooftop space for solar energy
generation for consumers with multiple buildings and service connections.

The State Government shall work with DERC to develop group net metering framework,
pending finalization of the framework, consumers of all categories who wish to avail Group
Net Metering facility shall make a written request to DERC, which shall review the requests
in a timely manner and grant approval on a case-by-case basis. Within 30 days of
notification of this policy, DERC shall make available on its website a simple document
form to handle such written requests.

The State Government shall work with DERC to develop Group Net Metering framework for
government buildings no later than 1 April 2016 and for other consumer categories no
later than 1-April-2017. DERC, the state power department and SNA will form a joint
committee to achieve this policy objective.

Virtual Net Metering

To give access to the Solar Net Metering facility for consumers who do not have a suitable
roof for installing a solar system (e.g. residential consumers who live in apartments,
consumers with shaded rooftops) there will be the facility of Virtual Net Metering. In Virtual Net
Metering consumers can be beneficial owners of a part of a collectively owned solar system.
All energy produced by a collectively owned solar system will be fed into the grid through
an energy meter and the exported energy as recorded by that meter will be pro-rata
credited in the electricity bill of each participating consumer on the basis of beneficial
ownership.

Collective ownership of solar plants may be established through housing societies, RWAs,
trusts or section 25 Companies or any other legal entity that safeguards the interests of
participating consumers, including rights which are at par with the rights enjoyed by
29
 consumers who have solar net metering with a solar system installed on their own roof.

The State Government shall work with DERC to develop Virtual Net Metering framework
for all consumers not later than 1-April-2017. DERC, the state power department and SNA
will form a joint committee to achieve this policy objective.

Solar power plants under schemes announced by Govt. of India

The State shall assist solar project developers participating in schemes announced by
MNRE or its identified agencies to promote solar plants. The SNA shall arrange and submit
to MNRE or its identified agencies the recommendations necessary to finalize such
schemes in consultations with all stakeholders, including DISCOMS, in a timely manner.
DERC may also announce a suitable framework for the implementation of such schemes,
as required, in a timely manner.

Solar power plants under Renewable Energy Certificate mechanism

The State shall promote the development of solar power plants under the Renewable
Energy Certificate (REC) mechanism specified by the Central Electricity Regulatory
Commission (CERC). The SNA shall extend its support for the accreditation of the solar
power plant and for recommending its registration with the Central Agency in a timely
manner. In carrying out this role, the SNA shall be guided by any directions given to it by
DERC for the implementation of the framework from time to time.

Promotional policy for grid connected rooftop solar system

The State shall encourage implementation of grid connected solar plants as outlined
below. All grid connected solar plants shall comply with applicable CEA (Grid Standards)
Regulations, 2013 and other applicable rules, regulations, and guidelines as amended
from time to time.

Government / Public Institutions

The State mandates the deployment of solar plants with net metering on all existing,
upcoming, or proposed buildings of government organizations, government owned or
aided hospitals, schools and other educational/technical/research institutes, hostels and
training institutes such as Industrial Training Institutes (ITI), Fire Stations, Prisons, Delhi
Jal Board, Hospitals/Dispensaries and Delhi Development Authority building rooftops,
stadiums, bridges, public toilets, bus depots and bus stops, railway stations, sheds,
parking lots, and other Central and State Government buildings. The State shall also
explore the feasibility of floating solar power plants on top of some of the perennial water
bodies, canal-top and canal-bank in Delhi as well as on the rooftop of moving buses and
e-Rickshaws.

2
It will be mandatory for all such government buildings with rooftop area of 500 m or
above to install a solar PV plant as far as possible with a minimum capacity (kWp)
computed as follows: Capacity in kWp = (Total shadow free rooftop area x 75%) / 12. Area provisions
may be calculated on roof top @ 12 sq meters per 1 Kwp, as suggested by Ministry of
Urban Development referring the Ministry of New and Renewable Energy. The SNA shall
be authorized to survey and finalize the capacity of the solar system to be installed on a
government rooftop. Further Govt. agency maintaining the building in addition to State
Nodal Agency (SNA) shall also be authorized to survey and finalize the capacity of the
solar system to be installed on govt. building rooftop, the decision of the govt. agency
maintaining the building shall be final.

Deployment of solar plants on all State Government properties shall be carried out at a
30
 steady pace and in a phased manner, and shall be completed within the Operative Period
of this Policy. The SNA shall be authorized to nominate buildings for solar projects and
determine the implementation timeframe. Government departments that fail to comply
shall be required to submit a written explanation from the departments head to the office
of the Chief Minister.

The department, whose rooftop size is less than 500 sq meters, shall also endeavor to
install solar PV plants as far as possible.

The State Government shall also promote deployment of solar plants with Net Metering on
the rooftops of Central Government Organizations and other public bodies through suitable
advisory and consultative means to facilitate the solar energy targets of Delhi.

Commercial and Industrial Establishments

The State shall encourage the deployment of solar plants with Net Metering on all
Commercial and Industrial buildings with available rooftop areas. These include but arent
limited to schools, hospitals, nursing homes, malls, hotels, offices, banquet halls, clubs,
restaurants, industries, warehouses, companies, parking lots, and commercial or tourism
complexes.

Residential Consumers

The State shall encourage the installation of solar plants with Net Metering on all
residential buildings, colonies, townships, housing societies, private bungalows, farm
houses, etc. All urban development and housing agencies (private and public, including
DDA and PWD), the Municipal Corporations of Delhi, banks and RWAs shall facilitate the
deployment of solar project installations.

Generation Based Incentives (GBI)

The State shall offer a limited-time GBI for existing and future Net Metered connections in
the domestic/residential segment only.

This GBI will reduce payback time and increase adoption. A GBI of INR 2.00 per unit
(kWh) of gross solar energy generated is being offered for 3 years only, starting from the
date of taking effect of the Policy. Towards the end of this period, the State shall consider
extending the GBI for an additional two years depending on the economics of solar
energy, grid tariffs, and solar energy adoption rates in the domestic segment.

GBI will be paid on a first-come-first-served basis until the funds earmarked for GBI run
out. The minimum eligibility criteria for GBI will be 1,100 solar energy units (kWh)
generated per annum per kWp. For solar plants that generate less than 1,100 units (kWh)
per kWp a year, the GBI facility will not apply. The annual solar energy generation that is
eligible for GBI shall be capped at 1,500 kWh per kWp, irrespective of the readings of the
solar generation meter.

The funds for the disbursement of GBI shall come from a Green Fund established by the
State of Delhi for promoting solar energy. The SNA will be responsible for managing this
Green Fund. The Green Fund shall utilize the funds already accrued in the Air Ambience
Fund raised through a cess on diesel by the Department of Environment, GNCTD, to
promote clean technologies.

Other exemptions, benefits, and incentives

The exemptions, benefits, and incentives below shall be available to solar plants
implemented by the eligible entities, as applicable, during the Operative Period of the
Policy.
31
 Exemption from the payment of Electricity Tax and Cess

In order to promote clean and green energy and reduce the pollution burden on the
capital, all Municipal Corporations of Delhi shall work towards and notify the exemption of
Electricity Tax (currently 5%) for solar energy units generated, whether for self-
consumption or supplied to the grid.

Exemption on Open Access Charges

The state government in consultation with DERC shall prepare a suitable framework for Open
Access for solar electricity generated or consumed within the state. Such framework will be finalized
and approved no later than 1 July 2016. DERC, the State Power Department and SNA will
form a joint committee to achieve this policy objective.

Exemption on conversion charges

Residential consumers opting to implement solar plants to sell power to the grid shall be
exempted from the conversion charges requirement of house tax to commercial tax.

Exemption on wheeling, banking, and transmission charges

The state government in consultation with DERC shall prepare a suitable framework for
exemption on wheeling, banking and transmission charges for solar electricity generated
or consumed within the state. Such framework will be finalized and approved no later than
1-April-2017. DERC, the State Power Department and SNA will form a joint committee to
achieve this policy objective.

"Must Run status

All solar power systems shall be treated as Must Run power plants and shall not be
subjected to Merit Order Rating (MOR) / Merit Order Dispatch (MOD) principles.

Cross subsidy charges

The State Government in consultation with DERC shall prepare a suitable framework for
cross subsidy charges for solar electricity generated or consumed within the state. Such
framework will be finalized and approved no later than 1-April-2017. DERC, the State
Power Department and SNA will form a joint committee to achieve this policy objective.

Building bylaws amendment for rooftop solar installations

a) The height of the module structure carrying solar panels shall not be counted towards
the total height of the building as permitted by building bylaws, except near airports
where building regulations issued by the Airports Authority of India take precedence.

b) No approval will be required from concerned Municipal Corporation or other Urban

Development Bodies like the DDA for putting up solar plants including any additional
system for monitoring the performance of solar plant in existing or new buildings.

c) The support structure on which rooftop solar panels are installed shall be a temporary
structure built in accordance with local building codes.

32
CHAPTER-7

GLOBAL PV MARKET REVIEW

The worldwide housetop sun oriented PV introduced limit has come to over 100GWp in 2013. The
main nations with expansive limits in PV establishments are Australia, China, Germany, Italy, Japan,
Spain, and USA. The sun oriented PV grandstands in these countries are driven by strong PV amplify
pipelines, versatile and innovative financing instruments, and proactive government plans. Major
chunk of solar PV installations in the countries such as Germany, Japan, and USA are on
building rooftops.

Figure 7. 1 Global Market overview for Rooftop Solar PV System

Support mechanisms
The headway of PV in late decades has been controlled by the association of supporting
methodologies went for decreasing the fissure between power cost from PV and regular power
sources. These plans took different structures relying upon the neighborhood specificities. The table
beneath merges diverse bolster plans to quicken the organization of housetop Solar PV in various
nations.
Direct capital subsidy: Direct capital subsidy aimed at tackling the up-front cost barrier,
either for specific equipment (PV modules) or total installed PV system cost.
Green electricity scheme: Permits clients to buy green power in light of sustainable power
source from the power utility, more often than not at a top notch cost.
PV-specific green electricity scheme: Allows customers to purchase green electricity based
on PV electricity from the electricity utility, usually at a premium price.
Renewable Portfolio Standard (RPS): An ordered prerequisite that the power utility source a
segment of their power supplies from sustainable power source.
Solar set aside RPS target: A mandated requirement that a portion of the RPS be met by solar
electricity supplies.

33
 Investment funds: Share offerings in private PV speculation reserves in addition to different
plans that attention on riches creation and business achievement utilizing PV as a vehicle to
accomplish these closures.
Tax credits: Allows some or all expenses associated with PV installation to be deducted from
taxable income streams.
Tax benefits: In India accelerated depreciation on investment in RE devices (excluding wind
power plants) is allowed.
Net metering: The system owner consumes solar electricity and receives retail value for any
excess electricity fed into the grid, as recorded by a bi-directional electricity meter and
obtained over the billing period.
Net billing: The electricity taken from the grid and the electricity fed into the grid are tracked
separately. The electricity fed into the grid is valued at a different price.
Sustainable building requirements: Incorporates necessities on new building improvements
(private and business) where PV might be incorporated as one choice for diminishing the
building's energy requirement or might be particularly ordered as a consideration in the
building advancement. Achieving the sun with rooftop.

Table 7. 1 Overview of different support schemes for rooftop solar in different countries

Figure 7.2a shows various market incentive schemes for rooftop solar PV implementation adopted
globally since 1992 to 2011. In the year 2012 it was observed that self-consumption mode of
implementation increased from 3.4 per cent to 12 per cent4 ; however, feed-in tariffs schemes
(approx. 61 per cent) and direct capital subsidies (21 per cent) aiming at reducing the upfront
investment cost still dominated a large part of the market (Figure 7.2b).

34
AUSTRALIA
The aggregate introduced PV limit in Australia is roughly 2.4 GW before the finish of 2012. Till 2008,
off-framework sun oriented applications were the transcendent arrangement in Australia, after which
on matrix sun oriented applications have practically turned into the standard. Critical clarifications
behind a strong improvement of the market can be found the extent that support in collect/net-
metering arrangements, inspirations and discounts, required reasonable power source targets,
aggregate endeavors, et cetera. At present, the government of Australia has not authorized any
national tax plot for sunlight based PV extend, henceforth extraordinary states take after various
plans, for e.g., while Australian Capital Territory (ACT) and New South Wales take after bolster in tax
plans, other state government have established net-metering plans.
At the government level, Solar Homes and Communities Plan (SHCP) gives refunds of up to AU$ 8,000
for 1 kW of PV introduced on private structures and up to 50 for every penny of the cost of PV
frameworks introduced on group structures (e.g., schools). Furthermore, National Solar Schools
Program (NSSP) permits schools to vie for stipends up to AU$ 50,000 to introduce sun oriented and
other sustainable power frameworks.
Under the Renewable Remote Power Generation Program (RRPGP), discounts up to 50 for every
penny of the capital cost of feasible power source and of related parts is given to evacuation of diesel
created control. Some regular applications incorporate use in off matrix family units, indigenous
groups, group associations, retail/roadhouses, tourism destinations, peaceful stations, and other off-
lattice business and government offices.
Utilities are losing bit of the pie, especially in the midst of the daytime beat stack period where control
expenses are high. Be that as it may, two utilities have ventured into the PV business, catching
noteworthy piece of the pie.
JAPAN
The aggregate combined introduced limit of PV in Japan has achieved 10.5 GW before the finish of
2013. The aggregate yearly development rate amid the 11 year time of 2002 to 2013 has been
sensational (around 27 for every penny). The clarification behind the unfaltering and supportable
improvement has been the alteration in-impose system of the organization of Japan, which was
introduced in 2009 and fortified in 2011. With the begin of the Feed-in Tariff (FiT) program, the
market for open, modern application, and utility-scale PV frameworks developed quick.

35
GERMANY
Germany has introduced around 32 GW of PV frameworks by end of 2013. Bolster in duty was
presented for PV power that is balanced in the power bill of the customers. With the decreasing of PV
esteem, Germany introduced the "Hallway" thought in 2011. It is a procedure, which licenses urge in
assessment levels to rot according to the market improvement. The more the market was creating in
the midst of a portrayed time allotment, the more nourish in tax levels were cut down. Self-use
premium was paid over the retail control cost. The premium was higher for self-usage, i.e., more than
30 for each penny. In 2012, the premium was wiped out when sustain in exact levels went underneath
the retail control costs.
Market Integration Model: Inverse to self-utilization motivating forces, Germany drove PV makers
to offer power in the power advertise through a "showcase premium". The producer can offer its
energy in the market any time period, as opposed to getting the settled assessment. The maker gets an
extra premium on top of the market cost. As the entrance of PV is more than 5 for every penny of the
power request, the conduct of utilities can be viewed as a blend of a restriction towards PV
improvement and endeavors to participate to the advancement of this new business. Associations, for
instance, E.ON have developed assistants to concentrate on the PV on housetop customers.

SPAIN
In 2007 and 2008, Spain's FiT program set off a fast extension of the PV advertise. Vast PV
establishments grew quick and drove Spain to the primary spot on the planet PV advertise in 2008. In
October 2008, a ban was set up so as to control the development. FiT was conceded simply after an
enrollment procedure topping the establishments at 500 MW/year. After a low 2009, in light of the
time required to set up the new control, the market went down to between 200 MW and 450 MW a
year. In 2012, a 223 MW SPV was introduced in Spain. A couple measures taken have affected
retroactively the PV control creators, due to troublesome money related conditions. The most obvious
36
one is the top on hours amid which PV establishments got the FiT. Thus FiT's are allowed for a piece
of yearly creation as it were. This was done in a setting of overcapacity of ordinary power plants in the
nation, joined with restricted interconnections. This circumstance prompt restriction of ordinary
partners and lattice administrators such that it constrained the legislature to choose a ban for all new
inexhaustible and co-era ventures profiting from FiTs ("Special administration") from January 2012.
At last, toward the finish of September 2012, Spain forced another expense on all the era innovations
to cover the power costs shortage, decreasing the benefit of the current PV plants. Trades on a
possible net-metering system were not conclusive in 2012 and even self-use twisted up evidently
difficult to realize.
United States of America (USA)
USA has an aggregate introduced sun based PV limit of around 7,272 MW by March, 2013. The
fundamental driver for quickening the US PV market are the assessment credits and discounts
allowed by the elected US government for beginning years. Beside the administration push, a couple
states as a proportional measure moreover offered net-metering to propel self-use of sun powered
power. Leasing housetop SPV framework is likewise well known among private purchasers in USA.
Presently, SPV foundation in USA is support off, as utilities have come to and outperformed
maintainable power source duties. A few utilities have begun restricting PV advancement, particularly
the net-metering frameworks, because of two reasons. The vital reason is that the RPS centers of the
utility have starting at now been met and the other reason is that the self-usage from sunlight based
era is a wage setback for utility.
Lately, housetop and other conveyed sun powered vitality era has turned into a set up worldwide
market, and is quickly turning into a huge supporter of various territorial vitality markets.
Accomplices required in sunlight based vitality business are utilities, business and private customers,
originators, makers, banks and controllers. Partners settle on every day decisions that make diverse
business choices.
The underlying expense of solar PV framework goes about as a noteworthy obstruction for its
sending. To overcome this barrier various types of government subsidies, tax incentives/rebates, and
financing options have emerged across different countries. Some of these financing mechanisms
practiced in USA are:
1. Financing through government/ municipalities
Government and regions can assume a huge part in quickening the appropriation of housetop
SPV. A couple areas in USA have begun activities to assemble the moderateness of housetop
SPV expands either through the course of action of budgetary driving forces, for instance, low-
interest progresses, discounts, enrichments, or making elective proprietorship structures, for
instance, shareholding structure in sun based plants.
1.1 Property-Assessed Clean Energy Programmes (PACE)
Property Assessed Clean Energy (PACE) is a metropolitan financing system in which
property proprietors get 100 for each penny financing (advance) for sustainable power
source ventures from the districts. They reimburse the advance through their property
charge bills. Districts gather this store from nearby individuals by issuing of green bonds.

1.2 Municipal bond-PPA model (The Morris Model)

In this model, the administration raises subsidize through issuing a security at a low loan
fee. Government then passes on the returns raised by the cling to the sun oriented
designer in return for an alluring lease-buy understanding.

2. Third-party ownership model: Solar leasing and Solar PPAs

37
 The outsider possession show has been a main thrust for housetop sun based market extension
in various nations. In this model, a business organization possesses and works the SPV
framework on the building proprietor's housetop. The power made from the SPV structure is
either used by the building proprietor ("sun based leasing" model) or sold to the utility ("sun
powered PPA" illustrate). The proprietor of the SPV framework appreciates the appropriations,
tax breaks and so on.
2.1 Solar leasing
In this model, the client or building proprietor ("sun oriented tenant") does not pay the
forthright cost of the SPV framework yet rather rents the framework by paying settled
regularly scheduled payments over a predefined timeframe and expends the power
produced by the rented framework at a value that is here and there less expensive than
utilities cost. The building proprietor ("sunlight based resident") would sign a long haul
contract with a "sun powered lessor." The sun based lessor is an organization that claims,
works, introduces, and keeps up the PV framework.
2.2 Solar Power Purchase Agreements (Solar PPAs)
Sun oriented PPAs is a plan in which clients purchase power from an outsider designer at a
cost indicated amid the agreement term, regularly for a long time. The outsider engineer
introduces, claims, and works the close planetary system on the clients' properties or
different sorts of properties. This model assistants in decreasing or transfer of the candid
cost, allowing those with less wage to shoulder the cost of SPV structures.
3. Utility-sponsored model
In addition to local administration, power utilities have begun to offer their customers the
options of owning solar power systems. In this model, utilities find a source of finance on
behalf of its customers.
3.1 On-bill financing
On-bill financing is a component by which sustainable power source activities are paid for
by electric utility clients on their month to month power bills. Utilities have passage to low-
interest capital, appeared differently in relation to individuals and autonomous endeavors.
On-bill financing programs work in three phases.
Utilities obtain low-interest loan.
This money is made available to qualified small scale commercial, residential, or
community renewable energy or energy efficiency projects in the form of a loan.
This loan is repaid to the utility as on-bill financing, i.e., as a line-item in the
customers electricity bill.
3.2 Utility-owned distributed solar
The utility will introduce, claim, and work the frameworks. Utility-had housetop systems
can be presented on leased business and open properties in the utility's organization
space. This model brings down the exchange costs related with the clients' installments for
the frameworks through utilities' bills.
4. Volume purchasing
The high forthright cost of dispersed sunlight based power can be overcome by consolidating
the obtaining energy of the individual housetop proprietors through mass buying of sun
powered boards. This model declines the cost when consolidated with government
motivations. Contract holders excited about sun based power get together in educational
workshops where they together pick as a social occasion on the measure of sun oriented
foundations and the brief specialist. The framework integrators can offer high rebates since
they can save money on advertising and allowing costs.

38
39
Chapter 8

Solar power a helping hand in Rural Electrification

The urban-rustic gap in India is notable. As indicated by the Evaluation of India (2011), 69% of the
populace is rustic, and more than 66% (68%) of all house-holds are in country territories. In most
financial markers, provincial individuals are route behind their urban partners. The India Human
Advancement Report 2011 has the urban-rustic hole as far as rate focuses at 17 in education, 19 in
tyke vaccination, and 38 in institutional conveyance. In country zones, the newborn child death rate
and under-five death rate are 1.6 and 1.7 times more contrasted with urban rates.

Given constrained assets, it is regularly the case that urban communities develop at the cost of
provincial ranges. Towns bolster and give water to the city populace, give work to
modest/incompetent work, and are a favored place for dumping urban waste. This disparity is
strengthened by unequal dispersion of assets and civilities. Vitality as an asset and power as a
pleasantry are no special cases. Near 93% of urban family units utilize power as their principle
wellspring of lighting through the network, while the comparing figure for country regions is 55%
(Registration of India 2011). This distinction is more articulated when one considers the nature of
supply. Among those associated with the network, the normal utilization of power in provincial
ranges was 96 kilo-watt-hour (kWh) per individual in 2009, which was 33% of the figure in urban
regions, 288 kWh.

Given the provincial urban dissimilarity, this paper addresses the accentuation on sun oriented
photovoltaic (PV) frameworks for country regions, especially for the lighting needs of the residential
segment. To begin with, it investigates the provincial urban uniqueness in the supply of energy for the
residential division, both as far as amount and quality. It then surveys the power needs of provincial

40
families and their eagerness to pay versus their urban partners. It goes ahead to survey the
Administration of India's arrangement needs in charge, and investigates the reasons for
disappointments of sun based PV frameworks. The review basically analyzes the contentions for the
advancement of sunlight based PV for rustic power and manufactures a case for making it a need in
urban regions.

Provincial Urban Power Uniqueness

The local area is the second biggest as far as devouring power, representing around one-fourth of
aggregate utilization (MoF 2012). The provincial urban dissimilarity in residential this could
accommodate the utilization of a story fan, a cell phone, and two smaller fluorescent light (CFL)
globules in rustic regions, though it may incorporate a productive icebox, a moment cell phone, and
another apparatus, for example, a little TV or a PC, in urban regions. We contend that it is uncalled for
to expect that rustic families on a normal needn't bother with a TV or PC as a fundamental need.5 In
the National Youth Advancement File Report by the Rajiv Gandhi Organization of National Youth
Improvement (RGINYD 2010), cell phones, TVs, and PCs are viewed as basic for the improvement of
youth, both in urban and provincial zones. Likewise, from a social equity perspective, vitality
administrations are a privilege of people; and some have pushed making essential vitality benefits a
principal right (Narain 2010; Reasonable Activity 2009). Vitality neediness is all around perceived as
a container neck in accomplishing the Thousand years Improvement Objectives. As far as residential
power utilize, the regularizing edges for provincial and urban families must not be distinctive.

Government Arrangements towards Provincial Zap and Sustainable power source

Country jolt has figured in different arrangements for as long as quite a few years. Be that as it may, it
has been ceaselessly disregarded at the ground level inferable from a blend of variables low duties;
the high cost of administration; poor proficiency levels; wrong hierarchical structures; and the
concentrate of state power sheets on urban ranges, metros, and enterprises (Padmanabhan 2003;
Chaurey et al 2004; Ernst and Youthful 2007; Kemmler 2007). After the Power Demonstration of
2003, the focal government made an eager arrangement to zap all towns before the finish of 2007, and
all families ("Power for All") by 2012 (Clean 2003; Modi 2005).7 This objective was emphasized in a
few government plan and strategy documents.8 Towards accomplishing it, the administration
propelled the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) under the Service of Energy, and
the Remote Town Zap (RVE) division under the Service of New and Sustainable power source (MNRE
2004, 2006; Wipe 2006; Bhattacharyya 2006; Cust et al 2007).9 Notwithstanding, the objective of
widespread jolt has been over and again missed. As far as towns, as on 31 November 2012, 94.1%
were associated with the network). Be that as it may, with just 55.3% rustic families utilizing power
for lighting, the family zap target has been missed by an extensive edge.

The expansive dominant part of towns that are non-remote and lattice electrifiable (of which around
95% are as of now framework associated) additionally get more need in sustainable power source
applications than urban ranges. The push zone in sustainable power source recognized in the
Eleventh Arrangement (Arranging Commission 2011) is meeting essential vitality needs in provincial
ranges through locally accessible sustainable power source assets. However "sustainable power
source for urban, mechanical, and business applications" likewise frames a piece of sustainable power
source program of the Eleventh Arrangement, use on this was short of what one-6th of that for
provincial applications (Arranging Commission 2012).13

For sun based vitality, the nation has an objective of 2 GW of off-matrix frameworks by 2022 under
the Jawaharlal Nehru National Sunlight based Mission (JNNSM), with middle of the road focuses of
200 megawatts by 2013, and 1 GW by 2017 (CSE 2012b). The JNNSM rules stipulate the advancement
of "off-network frameworks to serve populace without access to business vitality" (MNRE 2010; CSE
2012a), which, as it were, infers that the concentrate must be on provincial ranges. As per the Inside

41
for Science and Condition (2012a), around 85% of the undertakings endorsed off framework by the
JNNSM are for country communities.14 Likewise, according to the most recent enumeration of one
million family units that utilization sunlight based vitality as their principle wellspring of lighting,
84% are in rustic territories (Evaluation of India 2011). This demonstrates the legislature advances
off-lattice sun based PV frameworks to a great extent in rustic zones.

Reasons for Sun based PV Disappointment in Country Zones

In spite of the fact that there has been a progressing accentuation on sunlight based PV frameworks
for rustic zones, it has not been exceptionally fruitful. A few reviews show a high rate of and highlight
troublesome working conditions, and uncertain specialized, financial, and institutional elements
(Gambhir et al 2012). As noted in Viable Activity (2009: 4), "In rustic territories, little vitality era
frameworks, introduced to give power to little towns or groups, as often as possible last a couple of
months before being relinquished." Here, we highlight a portion of the conceivable reasons for this
disappointment.

Un-reasonableness: Moderateness is an imperative thought in acknowledging vitality get to. Vitality

neediness, demonstrated by the absence of access to present day vitality administrations, is an
immediate result of pay destitution (Balchandra 2011). The Arranging Commission (2002) perceives
that a vital impediment on the move to sustainable power source is its high unit cost contrasted with
other customary sources. As frameworks wind up noticeably littler, the cost of power generation per
unit ends up noticeably higher. The run of the mill cost of power era from a sun based home
framework (SHS) is Rs 37-39/kWh and that of a miniaturized scale network is Rs 55/kWh (Chaurey
and Kandpal 2010). The high cost is clearly a direct result of high particular capital expenses for little
scale ventures and more noteworthy

Operations and upkeep (O&M) costs in remote country zones.

Regardless of the possibility that the establishment is without given, on occasion the cost of
supplanting segments ends up being higher than what villagers can afford.17 Battery substitutions
remain the most urgent test for the long haul manageability of sun powered PV (Gambhir et al 2012).
For decentralized frameworks, upkeep expenses are by and large higher than what is normal amid
venture examinations (Gambhir et al 2012). A current CSE report (2012a), in view of field appraisals,
says that battery disappointments in sun oriented home lighting frameworks (which cost a few
thousand rupees to supplant) are constraining villagers to fall back on lamp oil. This brings up the
issue why we keep on serving urbanites with less expensive power, and that it is so objective to needs
costly frameworks for individuals who can't bear the cost of them. The powerlessness of villagers to
manage the cost of frameworks ought not be mistaken for their readiness to pay. Or maybe, this
demonstrates their wage example is not suited to the installments they need to make.18 Likewise,
most smaller than usual framework ventures experience the ill effects of monetary unviability and
this outcomes in their conclusion following a couple of months of operation (Palit et al 2011).19

Need of Aptitudes: The administration life of little decentralized vitality frameworks is fundamentally
reliant on legitimate support, which requires in fact prepared work force (Ramamurthy and Ku-
damage 2012). Absence of such aptitudes prompts visit stoppages of frameworks in country ranges,
and sun oriented PV frameworks are no special case. Likewise, as much as the talk acclaims group
contribution in zap extends, this is frequently not followed by and by (Valencia and Caspary 2008). It
is peculiar yet genuine that while urban family units are considered as clients, provincial house-holds
are relied upon to be vitality makers, supervisors, researchers and designers (Balchandra 2013).

Absence of Supply Chains: The support of sustainable power source frameworks endures because of
the absence of supply chains for segments and extra parts in provincial areas. For example, an
assessment report of the RVE plot in Rajasthan by the Incorporated Exploration and Activity for

42
Advancement (IRADe) (2009) demonstrates that 37% of SHSs are not working, and in 80% of the
cases, the level of refined water was underneath the recommended l

Conclusion
Sun based Photovoltaic and warm power plants will assume an essential part in the generally
speaking

vitality supply. The framework equality is probably going to be accomplished around 2017-2020.

Sunlight based radiation information is accessible from a few sources including satellite
reproductions.

The information accumulation and reproduction is a perplexing strategy and can have mistakes
shifting from 3 to 20%. The most solid information is ground measured with precise instruments.

The execution (Limit usage figure) CUF relies on upon a few elements including the sun oriented
radiation, temperature, air speed separated from the module sort and quality, point of tilt (or
following), outline parameters to keep away from link misfortunes and efficiencies of inverters and
transformers. There are some natural misfortunes, which can be diminished through appropriate
outlining however not totally stayed away from.

Thin film modules will perform superior to anything the crystalline modules in high temperature
zones. The evaluated limit consider fluctuates from 16 to 20% in different parts of the nation. At most
areas in Rajasthan and Gujarat it is around 20%. In general the vast majority of the spots it is around
19% .In a few spots where the CUF is around

18%, it is prudent to increment to 19% by including 50 KWp of modules for each MW

Of ability to make up for the natural misfortunes in the framework. This will require an extra
speculation of Rs.40 to 45 Lakhs for every MW.

The modules demonstrate debasement in power yield through years of operation. It is watched that
quality modules are vital in deciding the degree of corruption. The upgrades in innovation and quality
affirmation have lessened this corruption impressively. A few makers are proposing service contracts
despite the fact that with a security of edges. In view of the consequences of past reviews and
patterns, one can reasonably accept corruption of most extreme 0.5% every year from third year of
arrangement. This can likewise be repaid by expansion of 5 KW of modules for each year from fourth
year to 24th year of operation requiring a use of Rs.4 to 4.5 lakhs for every year at current market
rates.

It is alluring to screen the sunlight based plant establishments and develop database for future work.
It is likewise prescribed to complete a point by point think about for a few areas with dynamic
association of IMD database.

43
CONCLUSION

Solar Photovoltaic and thermal power plants will play an important role in the overall
energy supply. The grid parity is likely to be achieved around 2017-2020.
Solar radiation data is available from several sources including satellite simulations.
The data collection and simulation is a complex procedure and can have inaccuracies varying from 3
to 20%. The most reliable data is ground measured with accurate instruments.

The performance (Capacity utilization factor) CUF depends on several factors including the solar
radiation, temperature, air velocity apart from the module type and quality, angle of tilt (or tracking),
design parameters to avoid cable losses and efficiencies of inverters and transformers. There are
some inherent losses, which can be reduced through proper designing but not completely avoided.

Thin film modules will perform better than the crystalline modules in high temperature zones. The
estimated capacity factor varies from 16 to 20% in various parts of the country. At most locations in
Rajasthan and Gujarat it is around 20%. In overall most of the places it is around 19% .In some places
where the CUF is around
18%, it is advisable to increase to 19% by adding 50 KWp of modules for every MW
Of capacity to compensate for the inherent losses in the system. This will require an additional
investment of Rs.40 to 45 Lakhs per MW.

The modules show degradation in power output through years of operation. It is observed that quality
modules are very important in determining the extent of degradation. The improvements in
technology and quality assurance have reduced this degradation considerably. Several manufacturers
are proposing extended warranties although with a safety of margins. Based on the results of past
studies and trends, one can fairly assume degradation of maximum 0.5% per year from 3 rd year of
deployment. This can also be compensated by addition of 5 KW of modules per year from 4th year to
24th year of operation requiring an expenditure of Rs.4 to 4.5 lakhs per year at current market rates.

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It would be desirable to monitor the solar plant installations and build up database for future work. It
is also recommended to carry out a detailed study for several locations with active involvement of
IMD database.

References:

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