Renewable Purchase Obligations A Discoms Perspective
6th Sept 2012
Ajai Nirula, COO Tata Power Delhi Distribution Ltd.
Renewable Energy
India has a huge Potential for Renewable Energy
RE can contribute to Indias Energy Security as we are becoming increasingly dependent on coal and oil imports RE can mitigate climate change risk RE can facilitate rural upliftment through Distributed Generation
Issues
RPO has to be in line with development of Renewable Energy Penalty must for defaulters While RPO has been notified by many SERCs, no penalty imposed due to demand supply gap Geographic disparity in renewable resources Requirement of setting up additional infrastructure in RE rich states to integrate Renewable Energy with Grid Non availability of Feed in Tariffs to promote distributed renewable generation Additional investment required for Technology upgradation to integrate infirm renewable power - Economic ROI Vs Environmental ROI
National Level RPO Necessary to drive Renewable Energy Growth
National Level RPO to be imposed on all states and cost of adding Renewable Energy Plants should be shared by all through Green Energy Cess Why should states rich in Renewable Energy bear the brunt of infrastructure development to integrate infirm power in the grid ?
S No Description UoM A Solar Plant Generation Capacity MW B Plant Load Factor % C= A*B*8760/1000 Units Generated From Solar Power Mus D Levelised Tariff Rs/kwh
E Average Tariff (Excl Solar) Total Amount to be Recovered through Cess Mus Generated in India Power Cess Required Rs./kwh
2013 1000 19
1664.4 10.39 3.5
2022 20000 19
33288 10.39 3.5
F = (D-E)*C/10 G H
Rs. Crs Mus Rs./kwh
1147 926520 0.01
22935 1852118 0.12
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Marginal Impact on PPC if Renewable Energy Impact spread across the Nation
Plan to Drive Renewable Growth
Planning Revenue Collection Implementation State Nodal Agencies to be appointed for monitoring RE project development as per Planning Commission Targets State Nodal Agency to award projects to developers based on competitive bids ; requirement of VGF/ GBI State Transmission agency to develop adequate infrastructure for integrating Renewable Energy Projects
Planning Commission to identify Renewable Power Development Target as per National RPO Planning Commission to notify State Wise Renewable Power Development Targets based on Resource Availability
Planning Commission to notify Grid Infrastructure Requirements for evacuation of RE
Central Agency such as PFC to notify Cess charges for each states
State Utilities to Collect Cess and remit to PFC
PFC to disburse funds to States as per Renewable Energy Development Plan and monitor progress as per Planning Commission Targets
Yearwise Cost Requirement to be projected and Green Power Cess to be computed
Reforms Required
Plan for Renewable Energy Development in line with National RPO Notification of feed in tariffs by all states for promoting Roof Top Distributed Generation Smart Grids development to integrate renewable energy sources Costs should be allowed by SERCs in ARR Encourage Public- Private Partnership
Build Own Operate models for Solar/ Wind Farms Development
Identification and earmarking of renewable rich sites and providing basic infrastructure water, road etc to the designated sites State transmission utilities should include evacuation infrastructure for green energy projects as part of their overall transmission plan and budget allocation. Clear allocation of responsibility to set up the evacuation infrastructure along with ownership and maintenance Strict grid code for green energy generators to encourage them to install standard instruments before connecting them to grid so that grid stability is not endangered when renewable energy plants come online or go offline
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THANK YOU
Impact on TPDDL
Units Input Solar Total Mus to Solar Mus to be be Mus at Solar (MUs) purchase purchase Solar PV Solar PV Net Tariff Net Tariff Impact Solar - Total RPO Impact -2 d without d Cost-1 Cost -2 -1 -2 1 RPO (Col. (Col C) Solar - 1 without B) Solar - 1 D 8 E 160 A B A B F G H I
2012 2013
2014 2015 2016 2017
8000 8640
9331.2 10077.7
0.10% 0.15%
0.20% 0.25%
2.00% 3.40%
4.80% 6.20% 7.60% 9.00%
7,992.00 7840.00 8,627.04 8346.24
9,312.54 8883.30 10,052.50 9452.88
83.12 134.65
193.90 261.77
1662.40 3052.17
4653.66 6491.85 8594.37
4.85 4.85
4.85 4.85 4.86 4.86
4.95 5.03
5.11 5.18 5.26 5.34
0.01 0.01
0.01 0.01 0.02 0.02
0.11 0.19
0.27 0.34 0.42 0.50
13
19 25 33 41
294
448 625 827 1,058
10883.91 0.30% 11754.62 0.35%
10,851.26 10056.73 339.25
11,713.48 10696.71 427.46 10991.75
