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GRID CONNECTED DISTRIBUTED GENERATION: ISSUES AND CASE STUDY
Pulkit DhingraProject Officer, (Solar), GERMI
Northern and Western Region Smart Grid Capacity Building WorkshopPACE-D Technical Assistance Programme
Udaipur, India18 October, 2014
Outline
Overview of GERMI Introduction to Case Study:
o G’nagar Rooftop Programmeo CMPDI Micro-Grid at Ranchi
Technical Design Programme Structure
o Govt. Roleso Transaction Structureo Financial Structure
Statuso Activities Undertakeno Activities Remainingo Government Rooftopso Social Initiative
Functioning of the Net-Metered System Programmatic Considerations
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 2
GERMI Milestones
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 3
EVENTS DATES
Sprouting GERMI in Vibrant Gujarat Business Summit
September, 2003
GERMI Registered as Society & Trust April, 2004
Pandit Deendayal Petroleum University (PDPU) Act Promulgated by the State Assembly
February, 2007
Gazetted Notification by Govt. of Gujarat of the PDPU Act
April 4, 2007
Inauguration of the Pandit Deendayal Petroleum University
October 9, 2007
Ph.D. Programme at School of Solar Energy, PDPU September 1, 2009
Inauguration of the GRIIC Laboratories October 2, 2009
GERMI received recognition by Department of Scientific & Industrial Research (DSIR), GoI
June 16, 2010
GERMI’s first Solar Professional Workshop December 24, 2010
Solar Energy Research Wing Objectives
Government
Support
Provide technical and advisory services/ support to governments to
establish a healthy ecosystem for deploying solar and related
renewable energy initiatives.
Industry SupportProvide technical and advisory services industry to implement solar
energy-related projects.
Applied Research
Perform applied research and implement projects for demonstration,
improving efficiency and cost-effectiveness, as well as setting standards
for solar and related renewable energy projects for the benefit of both,
governments as well as the private sector.
Fundamental
Research
Undertake fundamental research to explore and develop novel devices
and equipments for clean energy generation and storage.
Higher EducationEstablish national expertise in renewable energy technologies up to
doctorate/post-doctorate levels through research and education.
Professional and
Vocational Training
Establish a facilitating environment as well as directly train
professionals and skilled workforce for large-scale renewable energy
deployment.
4Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014.
Success of Grid Connected Rooftop PV Programme
5
Technical Configuration
Implementation
Long-Term Operation
Commercial Viability
Eventual Scalability
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014.
Gandhinagar Photovoltaic Rooftop Programme
The Gandhinagar Photovoltaic Rooftop Programme (the “Programme”) marks the first distributed power generation programme in India in its true sense.
True Public Private Partnership, brings together…
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 6
o Government o Developers o Regulators
o Home owners o Utility o R&D
Aim of Programme
Gandhinagar Photovoltaic Rooftop Programme aims for…
o net 5 megawatt of photovoltaic installations…
o in distributed kilowatt-sized photovoltaic systems…
o through a PPP mode…
o to promote clean energy and energy security...
o as a part of the Gandhinagar Solar City Initiative.
Greater outcome of this pilot Programme:
o Establish a practice/ philosophy of distributed solar and other energy generation.
o Bring a level of comfort to all stakeholders for further scale-up.
o Encourage public participation.
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 7
Typical PV System Architecture
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 8
Photovoltaic Modules
(Approx. 1 – 100 kWP)
Grid-tied
inverter Meter 2: Solar Electricity
Generation
Meter 1: Conventional
Electricity ConsumptionTransformer Grid
Advantages of PV System Architecture
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 9
Relatively simple to install, operate and maintain.
Most popular and globally accepted configuration.
Disadvantage: No availability when grid is down.
Meter 1: Conventional
Electricity ConsumptionTransformer Grid
Photovoltaic Modules
(Approx. 1 – 100 kWP)
Grid-tied
inverter Meter 2: Solar Electricity
Generation
Green Incentive: Aid to Roof-owners
‘Green Incentive’ is the minimum generation-based incentive for participating Roof-owners specified by GoG.
Advantages:o Encourage awareness and participation among roof-owners.o Will be correlated to home-owner’s electricity bill.o Should not be compared to ‘constant’ (or ‘dead’) lease rental.
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 10
Plot Size(Sq. m.)
Built-up Area(60%)
Typical Solar Area
(30%)
Typical PV Capacity
(kW)
Monthly Generation
(kWh)
Green Incentive (Rs.)
@ Rs. 2/ kWh
@ Rs. 3/ kWh
@ Rs. 4/ kWh
50 30 9 1 135 270 405 540
70 42 12.6 1.5 202.5 405 607.5 810
81 48.6 14.58 2 270 540 810 1080
90 54 16.2 3 405 810 1215 1620
135 81 24.3 4 540 1080 1620 2160
200 120 36 6 810 1620 2430 3240
250 150 45 7 945 1890 2835 3780
330 198 59.4 8 1080 2160 3240 4320
Transaction Structure among Stakeholders
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 11
GoG/ EPD(Project Proponent)
GEDA(Nodal Agency)
GERMI(Project Str., Bid Process)
Azure Sun Energy(Capacity: 2.5 MW)
SPV by SunEdison(Capacity: 2.5 MW)
Torrent Power Ltd.(Off-taker)
2.5
MW
GPCL(Implementing Agency)
IFC & Consultants (Transaction Str. Advisor)
GERC(For Regulatory Approval)
GoG(For Govt. Approval)
PPA, based on GERC
solar tariff
Ap
pro
va
ls
FundingG.R.
Screening &
Selection
2 MW Govt. Rooftops
2 MW Govt. Rooftops
0.5 MW Private Rooftops
0.5 MW Private Rooftops
2.5
MW Gre
en
Inc
en
tive
Selection
through
RFP
5 MW Gandhinagar Rooftop Solar Programme
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 12
Rooftop Solar Project
Developer
DisCom (Torrent Power)
GPCL (Govt. Agency)
for Viability Gap Funding
Rooftop/ Terrace Owner
Power Purchase Agreement (PPA)
Tariff determined by Regulator
Rooftop Lease Agreement
@ Rs. 3/- per kWh
Project Implementation
Agreement (PIA)
Quoted Tariff
Regulator’s Tariff VGF
Realized Tariff Rent
The Math!
11.21
8.21 3.00
0.0711.14
Successful Developers
L1: Azure Sun Energy Pvt. Ltd. (“Azure”)
L2: Ananth Solar Power Maharashtra Pvt. Ltd. (“SunEdison”)o A subsidiary of SunEdison Energy India Pvt. Ltd.
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 13
Azure SunEdison
Quoted Tariff: Rs. 11.21 /kWh Rs. 11.793 /kWh
GERC Relevant Tariff: Rs. 11.14 /kWh Rs. 12.44 /kWh
Torrent pays: Rs. 11.21 /kWh Rs. 11.793 /kWh
GoG-PIA (GPCL) Pays: Rs. 0.07 /kWh ---
Activities and Milestones (1)
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 14
Date Activity
Aug 2010 In-principle approval of Gandhinagar Photovoltaic Rooftop Programme.
Nov 2010 Kick-off meeting under chairmanship of Chief SecretaryParticipation from various Government Stakeholders
Jan 2011 Invitation of EoI from potential Developers/ Investors
Feb 2011 First Investors’ conference with participation from 38 companies
Apr 2011 Invitation for participation sent to Government Departments
May 2011 In-principle agreement with Torrent for off-taking solar power
May 2011 Declaration of GPCL as Project Implementation Agency
Activities and Milestones (2)
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 15
Date Activity
Jun-Jul 2011 In-principle approval from Government Departments for leasing of rooftop/ terrace
Aug 2011 Floating of draft bid documents including:- Request for Proposal- Power Purchase Agreement- Project Implementation Agreement- ‘Green Incentive’ Lease Agreement
Aug 2011 Investors’ Pre-Bid Conference
Nov 2011 Submission of petition to GERC for approval of Programme Transaction Structure including PPA.
Dec 2011 Approval by GERC on Transaction Structure including PPA and to invite bids from Developers via two hearings. Unresolved issues with Torrent Power Ltd. resolved by GERC.
Activities and Milestones (3)
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 16
Date Activity
Jan 2012 Bids received from 4 Parties: (i) Azure, (ii) SunEdison, (iii) Mahindra, and (iv) Lanco.
Feb 2012 Financial bids were opened, where (i) Azure (Rs. 11.21 /kWh) and (ii) SunEdison (Rs. 11.793) were found to be L1 and L2.
Mar 2012 LoA issued to Azure and SunEdison
Apr 2012Signing of PPA between Azure/ SunEdison and Torrent Power.Signing of PIA between Azure/ SunEdison and GPCL.
May 2012Authorizing Solar Project Developers to start Implementation activity.
Jan 2013Signing of Lease Agreement between Azure/ SunEdison and R&B Dept.
Mar 2015 First rooftop PV plant commissioned on Lokayukta Bldg. (60.48 kW)
Mar 2014 Completion of Commissioning of Programme (4.685 MW)
Capacity Split
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 17
SectorNo. of
InstallationsNet Capacity
Government 21 2,001 kW
Residential 161 501 kW
Total 182 2,502 kW
SectorNo. of
InstallationsNet Capacity
Government 17 1,685 kW
Residential 113 501 kW
Total 130 2,186 kW
Azure Power SunEdison
TOTAL
SectorNo. of
InstallationsNet Capacity
Government 38 3,686 kW
Residential 274 1,002 kW
Total 312 4,688 kW
Installations under 5 MW Gandhinagar Programme
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 18
60.48 kW @ Lokayukta,
Sector 10
80.61 kW @ Govt. Arts College,
Sector 15
80.61 kW @ Govt. Arts College,
Sector 20
264.04 kW @ Jivraj Mehta Bhavan Nos. 1, 2 and 4, Sector 10-b
PV Installation on J.M. Bhavan
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 19
PV Installation on J.M. Bhavan (2)
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 20
More Installations
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 21
Challenges
How appealing is the Green Incentive?o What is the value of my roof?
How appealing is the Third-Party Model?o Am I willing to sign a 25-year lease agreement?o Why can’t I invest and get all returns for myself?
Interdependency of Contracts and Financial Closure:o Lease Agreement PIA PPA.
Implementation:o Coordination between Statutory Bodies, Regulator, Chief
Electrical Inspector, DisCom, Building Owners/ Govt. Departments, Developer, Financer, Project Management, Social.
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 22
Outcomes from the Programme
Confidence among all stakeholders:
o DisComs, home-owners, banks, government
Sophistication in technology and its implementation:
o Witnessed techno-commercial optimization rather than only technical optimization.
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 23
Technically Optimized Techno-commercially Optimized
Future Outlook
New Cities – 5-10 MW each: Vadodarao Bhavnagaro Mehsanao Rajkoto Surat
Develop a rooftop solar policy with a more mature model possibly incorporating:o Individual ownershipo Net-metering
Undertake technical studies for:o Grid integration and stabilityo PV system performance
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 24
Micro-grid at CMPDI, Ranchi
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 25
• To harness Green Energy, CMPDI and GERMI worked jointly on R&D Project at CMPDI, Ranchi
• PART 1: 200 kW Solar PV Rooftop Plant
• PART 2: Micro-grid to synchronize solar and wind with existing grid to optimize energy consumption
• Plant connected to grid on : 1 Sept. ‘14
• Energy Consumption in August ‘14 (Before Solar) : 121,162 kWh
• Energy Consumption in September ’14 (After Solar): 107,378 kWh
• Energy Generation through solar (till 28 September 2014): 16,498 kWh
SOLAR Powered CMPDI Campus
26
R&D Building
CPEI Building
Community Hall
RI-3 Building
STC Building
CPEI Building
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014.
CPEI building after GERMI setting Foot!!!
27
12 January 2014 27 July 2014 1 September 2014
50 kW Grid Connected System at CPEI Building
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014.
CMPDI Energy Consumption Before and After
Solar (Aug. to Sept. ‘14)
28
0.00
1000.00
2000.00
3000.00
4000.00
5000.00
6000.00
SunMonTueWedThu Fri Sat SunMonTueWedThu Fri Sat SunMonTueWedThu Fri Sat SunMonTueWedThu Fri Sat SunMonTue
Un
it (
kWh
)
Day
Energy Consumption in August and September 2014 (Weekly data)
Aug Unit Consumption (kWh) Sept Unit Consumption (kWh)
Week1 Week2 Week3 Week4
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014.
Evolution of PV Generation w.r.t. End Use
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 29
Source: International Energy Agency (IEA)
63%19%
11%
7%
56%23%
12%
10%
51%26%
11%
12%
47%27%
12%
13%
44%29%
13%
15%
Conventional Architecture
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 30
GRID
Distribution Transformer
Consumer’s Premises
Conventional
Meter
Typical Gross-Metering System Architecture
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 31
GRID
Distribution Transformer
Consumer’s Premises
Meter
PV Modules Grid-Tied Inverter FEED-IN METER:
- Meter for accounting of
solar energy generated.
Conventional Architecture
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 32
GRID
Distribution Transformer
Consumer’s Premises
Conventional
Meter
Typical Net-Metering System Architecture
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 33
GRID
Distribution Transformer
Consumer’s Premises
Net Meter
PV Modules Grid-Tied Inverter
Optional Meter
SOLAR ACCOUNTING
METER:
- Meter for accounting of
solar energy generated.
- Necessary for computing
RPO compliance.
- Alternatively:
Solar Energy Generated
=Optional M. – Net M.
Hybrid Net-Metering With Battery Backup
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 34
GRID
Distribution Transformer
Consumer’s Premises
Net Meter
PV Modules Grid-Tied Inverter
Consumption
MeterPCU
- Separate AC Solar Energy
Meter might not be
possible.
- Alternatively:
Solar Energy Generated
=Consump. M. – Net M.
Function of Net-Metered System: Case 1
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 35
5 kW
3 kW 2 kW
Net
Generation
Function of Net-Metered System: Case 2
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 36
2 kW
3 kW 1 kW
Net
Consumption
Programmatic Considerations (1)
Example:
o Capital cost of solar PV system: Rs. 80k /kW• Resulting solar tariff: Rs. 8 /kWh
o Retail tariff: Rs. 5 /kWh
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 37
“How do I levelize the cost of solar energy for the Consumer?”
If retail tariff = solar tariff No financial assistance required.
If retail tariff < solar tariff
Option 1: CAPITAL SUBSIDY- So that apparent solar tariff = retail tariff.- I.e. Capital subsidy = Rs. 30k /kWh
OPTION 2: GENERATION-BASED INCENTIVE- So that retail tariff + GBI = solar tariff- I.e. GBI = Rs. 3 /kWh
Programmatic Considerations (2)
Should it be based on:o Maximum available roof space?
o Connected/ contract load?
o (Weighted) fraction of feeder/ transformer capacity?
o No limits, first-come-first-serve
Who pays for upgradation of infrastructure?o Consumer
o DisCom
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 38
“How much capacity can be installed at a particular location?”
Programmatic Considerations (3)
Can it be:
o Credited to the Consumer for next month(s)/ year?
o Sold back to the DisCom at:• Option: Average power purchase cost
• Option: Retail tariff
• Option: Feed-in tariff
• Option: Free
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 39
“What happens to the excess generation of energy?”
Implementation Methodology
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 40
SNA Empanels Channel Partners/ Installers.
DisComs set up standards for Net-Metering.
SNA Educates Channel Partners with compliance
requirements.
SNA publically promotes Rooftop Solar Policy.
DisComs set up internal processes for:
1. Accepting and scrutinizing customer applications, and
2. Commissioning PV systems.
Channel Partners commence their own marketing.
Rooftop Solar Policy is Launched.
[email protected] Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 41
Policy Implementation:Implementation Phase
Eligible Entity contacts Channel Partner.
Channel Partners undertak-es feasibility of installation.
Eligible Entity, via Channel Partner, applies to SNA for
subsidy.
SNA approves:1. Subsidy subject to fund
availability, and2. PV System capacity
subject to DisCom’s and CEI’s clearance.
DisCom:1. Verifies installation, and2. Installs Net-Meter to
commission the system.
Channel Partner installs rooftop PV system.
Eligible Entity, via Channel Partner, applies to DisCom
for interconnection.
DisCom bills System Owner based on net consumption.
System Owner owns and operates the PV system.
CEI’s Approves:1. Capacity of installations
Other Considerations
Eligibility to participateo E.g. Rented property?
Duty/ cross-subsidy surcharge/ wheeling charge exemption
Compatibility with other schemeso E.g. MNRE subsidy, REC/ carbon credits.
Generalize to other energy sources/ hybrid systemso E.g. Micro-wind.
Technicalo Interconnection standards, capacity building
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 42
Conclusion
Net-metering is technically simple and widely accepted.
Mainstreams the solar market.
Net-metering policy can be generalized.
o Commercially: Individual ownership, third-party ownership, feed-in tariff.
o Technically: More energy sources.
Focus should be on simplifying processes and policies.
Grid Connected Distributed Generation: Issues and Case Study" PACE-D , Udaipur, 18 October 2014. 43
GRID CONNECTED DISTRIBUTED GENERATION: ISSUES AND CASE STUDY
Pulkit DhingraProject Officer, (Solar), GERMI
Northern and Western Region Smart Grid Capacity Building WorkshopPACE-D Technical Assistance Programme
Udaipur, India18 October, 2014
