Group 5 Solar Private Limited

20MW(AC) Solar PV Plant

Detailed Project Report

Company Overview:

Group 5 Solar Private Limited is a span based non-government organization who is working in a
renewable energy sector. It is involved in Steam and hot water supply. Group 5 solar are a
multinational specialized in the development, financing, construction, operation, and management
of utility scale

solar photovoltaic power plants with presence in fast-growing markets in Europe, North
America,Latin America, Asia, and Africa.

Born in 2010 as one of the first pure photovoltaic (PV) developers and independent power producers
in Spain,

Group 5 has always been audacious taking strategic decisions that have allowed the Company to
become a pioneer in the markets where it is present.

Profitable growth and balanced risks are Group 5’s key strategic targets, which the Company pursues

across its three global divisions (Development and Construction (D&C), Power Generation and

Services) that represent an attractive and well-balanced combination of long-term stable revenues

with less recurrent yet highly profitable activities.

Project Objective:

Group 5 Solar Private Limited decided to invest 100m$ and to setup a 20 MW solar power project in
India. Project shall be developed around the co-ordinates 13° 18′ 52″ N, 76° 15′ 25″ E near Nashik
city of Hassan district, in the Indian state of Maharashtra. An area of approximately 60 acres land is
required to set up this project. This project is developed under SECI (Solar energy corporation of
India).

Group 5 Solar Private Limited permitted to setup 20MW power project PPA (Power purchase
agreement) with SECI (Solar energy corporation of India) for 25years. This project involved set up
with Solar project technology includes infrastructure development. This project will generate approx
10M of electricity which will help local community to get facilities.

As this is non-conventional method electricity generation plant, which will help to reduce carbon
emission to protect our environment. To setup this solar photovoltaic (PV) project 114286 PV
module, 3.15 MVA of 7 inverters and 2.5 Medium Voltage (MV) transformers used.

The Project has been conceptualised with a [photovoltaic (PV) array nominal power] PNOM (DC: AC)
ratio of 1.4, this indicates Solar photo-voltaic (PV) capacity will be higher by 40%, taking the plant
installed capacity to 27MWp.

The 20MWAC solar photo-voltaic(PV) Plant shall be implemented with two typical modular blocks of
10MWAC with a dedicated 33kV step up station. The inverter stations shall be further optimised
upon selection of project components and optimisation of DC ohmic loss, cable length, transformer
capacity and upstream electrical components.

Group 5 Solar Private Limited has conducted a technical feasibility and prepare a detail project
report for 20MWAC solar photo-voltaic(PV) plant. Regional and relevant information collected by G5
through desktop study.

The report describes:

- Desktop site assessment.

- Solar resource assessment

- Basic design configuration.

- Annual energy yield prediction.

- Project start-up and functional requirements.

- Project Construction Management

- Risk Assessment and Mitigation plan

Technology Used

Plant Modularity

Solar photo-voltaic(PV) plants are modular in nature, with each inverter station comprising of a set
of inverters, step-up transformer and related switchgear. Plant modularity is the conceptualisation
of typical inverter station that shall get type casted within the complete Solar PV plant. The plant has
been conceptualised with a total of two inverter stations of capacity 10MWAC/14MWp.

The photo-voltaic(PV) modules are electrically connected with cables sized to minimise Direct
current(DC) ohmic losses.

The Direct current(DC) electrical output from the photo-voltaic(PV) modules are combined through
insulation piercing connectors and then fed to inverters.

Each inverter station shall comprise of five winding transformer to accommodate four 2550kVA
inverters taking the individual inverter station size to 10MWAC.Each inverter station shall then
comprise of physical block connecting to 14MWp of installed photovoltaic array.

PV Technology Options
‘Photovoltaic (PV)’ refers to direct conversion of sunlight into electrical energy. This technology is
amongst the three main active solar technologies besides Concentrated Solar Power (CSP) and Solar
Thermal. Solar photo-voltaic(PV) finds Application in varying fields such as Off-grid domestic, grid
connected distributed PV and grid-connected centralised photo-voltaic(PV). The scope of this report
is to analyse the feasibility of developing a utility scale grid interactive Photovoltaic (PV) plant for the
proposed locations.

A photo-voltaic(PV) cell is the principal building block of a solar Photovoltaic (PV) plant. Basically a
semi-conductor, photo-voltaic(PV) cells convert sunlight into useful Direct Current (DC) electrical
energy. Photovoltaic (PV) cells are small in size and capable of generating only a few Watts (W) of
energy. However, Photovoltaic (PV) plants are highly modular (i.e.) modules can be combined
together to generate power ranging from a few watts (W) to hundreds of megawatts (MW). A brief
description on the working of a solar Photovoltaic (PV) plant is provided in the following section

Photovoltaic Solar Power System Photovoltaic (PV) refers to the direct conversion of sunlight into
electrical energy. photo-voltaic(PV) finds application in varying fields such as Off-grid domestic, Off-
grid non-domestic, grid connected distributed photo-voltaic(PV) and grid-connected centralised PV.
The proposed 20MWAC is a utility scale grid interactive photo-voltaic(PV) plant. Figure 7-1 gives an
overview of a utility scale grid-connected solar Photovoltaic (PV) power plant. The main components
include:

Overview of Solar PV Power Plant

7. Solar PV Technologies

A Photovoltaic (PV) cell is the principal building block of a solar Photovoltaic (PV) plant. Basically a
semi-conductor, photo-voltaic(PV) cells convert sunlight into useful Direct Current (DC) electrical
energy. photo-voltaic(PV) cells are small in size and capable of generating only a few Watts (W) of
energy. However, Photovoltaic (PV) plants are highly modular (i.e.) modules can be combined
together to generate power ranging from a few watts (W) to tens of megawatts (MW).

Due to the electrical properties of Photovoltaic (PV) cells, their manufacturing is restricted to a
handful of raw materials. Presently, the most common materials in use are Silicon (in crystalline and
amorphous form), Micro-crystalline (also referred to as micro-morph), Cadmium Telluride (CdTe)
and Copper Indium (Gallium) Selenide (CIS/CIGS). Each material has its unique characteristics which
impact Photovoltaic (PV) module performance, manufacturing process and cost.

photo-voltaic(PV) cells may be based on either wafer (manufactured by cutting wafers from a solid
ingot block of material) or “thin film” material (which is deposited onto low-cost substrates).photo-
voltaic(PV) cells can further be characterised according to the long range structure of the
semiconductor material used: “mono-crystalline”, “multi-crystalline” (also known as
“polycrystalline”) or less ordered “amorphous” material. Figure 7-2 summarises the commercially
available Photovoltaic (PV) technologies.
This section describes the commercially available technology options for solar Photovoltaic
(PV)modules, and elaborates on how solar Photovoltaic (PV) module performance can degrade over

time

photo-voltaic(PV) technology Classification

Financial Model
Project Financial Analysis

Project economics is the key decision-making aspect for any project development to enter

into the implementation phase. Project capital cost, and other relevant figures as received

from Group-5 are presented in the following section

24.1 Safeguard Duty

Safeguard Duty, a product specific duty is imposed on solar cells in order to help boost

and protect the local manufacturing of these products. A safeguard duty of 25% has been

imposed on solar cells imported from China and Malaysia starting July 30, 2018. This

would be applicable for one year, which would then be reduced to 20% for the consecutive
six months, and further followed by 15% for another six months.

Since over 90% of the PV modules and cells used in the solar PV projects across the

country are sourced from these countries16, the duty has been imposed in order to protect

the domestic manufacturers from any injury as solar cells from these countries have

entered the domestic market in increased quantities.

Considering that PV modules account for a significant share of a project’s financials, the

safeguard duty may affect the tariffs resulting in an extra charge to DISCOMs and

ultimately the consumer.

24.2 Capital Expenses

The 20MWACGroup-5 solar PV plant shall be implemented through a turnkey engineering,

procurement and construction (EPC) contract.

This total capital cost includes the cost of land, EPC Cost and the preliminary and the

development expenses of the plant.

Engineering, Procurement and Construction (EPC). The Developer will be implementing the solar PV
project through a fully wrapped turnkey engineering, procurement and construction (EPC) contract.
The EPC contract price shall essentially include design, engineering, supply procurement and
transport, construction, assembly and testing of equipment and materials to site.

Land costs include the price of the land purchased and costs associated with it such as aggregator
fees and related taxes. Preliminary and pre-operative expenses comprise of project management,
financing and development fees.

In addition to the above costs, the Developer will be required to fund the interests during
construction, margin money for the working capital and reserve accounts as they may be agreed
with the Lenders.

17. Means of Finance

The total estimated project cost is INR100.63 crores. The project cost is expected to be funded by
Equity and Long-Term Debt. The means of Finance are summarized in below.
18. Financial Analysis

The financial analysis and evaluation of the project have been presented in this section.

Financial review of the project is primarily based on debt equity contribution within the

project cost and the expected revenue from the projects for the specified period.

Following are the generic assumptions made for the 20MWAC Group-5 Solar PV Project.

 Financial structure: Equity 37.8% and Debt 62.2%

 Debt repayment period: Moratorium period of 1 year from COD of the project.

 Interest rate on debt: 11.1% during construction, 10.8% during operation.

19. Project Economics and Results

Project investment is believed to be acceptable only if the internal rate of return (IRR) is

more than the established minimum rate of return on capital cost. This is normally in

contrast with the net present value (NPV) of the project, which is a value indicator for the

investment.

Power Purchase Agreement

Power Purchase Agreement (PPA) between Maharastra State Electricity Board(MSEB) and Group 5
Solar Private Limited has been executed on 28 June 2022. Key highlights of the Power Purchase
Agreement (PPA) are summarised below:

 The Power Purchase Agreement (PPA) was signed on 28 March 2018 and shall be in effect from 04
June 2022.

The project shall be commissioned within 18 months from effective date of effect.

The validation period for the Power Purchase Agreement (PPA) shall be for 25 years.

 Performance security is furnished to Maharashtra State Electricity Board(MSEB)GESCOM in the

form of bank guarantee for a total of INR 20 million. This shall be in three parts comprising INR 8
million, INR 8 million and INR 4 million respectively, valid up to 10 March 2021.

 The tariff agreed between Maharashtra State Electricity Board(MSEB) and Group 5 Solar Private
Limited (G5SPL) is INR 3.12/kWh from the date of commercial operation (COD) of the project.

 The Project has to be commissioned within 18 months from the date of execution.

 Maharashtra State Electricity Board(MSEB) shall not be obliged to purchase any energy generated
beyond 45.552MU corresponding to a maximum Capacity Utilisation Factor(CUF) of 26%.
 If for any contracted year the Developer fails to generate less than 24.528 MU corresponding to a
Capacity Utilisation Factor(CUF) of 14%, a compensation comprising to 50% of the tariff would be
liable.

 If excess energy is generated than the aforementioned figure, the tariff for the same would be 75%
of Power Purchase Agreement (PPA) tariff or 75% of the Average Power Purchase Cost (APPC)
applicable charges; whichever is less, with the discretion being with Maharashtra State Electricity
Board(MSEB).

 The metering shall be done at the interconnection point at the end of the substation.

 The Developer shall be responsible for costs pertaining to installation, testing,

calibration, maintenance, renewal and repair of meters.

 The Developer shall be responsible for the power evacuation from the Project site to nearest
Delivery Point (Arshikere substation).

2.1.2 Power Evacuation

The output of 10MWAC inverter station shall be connected to 0.630×4/33kV five winding
transformer of 10MVA for stepping up the voltage to 33kV. The medium voltage 33kV output of
both the inverter stations is combined at the36kV High Tension Panel (HT panel) located in the main
control rooms. This combined forms the output of the solar photo-voltaic(PV) plant of 20MW AC.
The power generated by the MSEB 20MWAC photo-voltaic(PV) plant shall then be evacuated at
110/33/11kV Chincholi substation.

Transmission line and infrastructure required for evacuation shall be developed and maintained by
the Developer. Availability-based tariff(ABT)/revenue metering is understood to be at substation,
therefore transmission line losses are accounted to be in the Developer’s scope.

14. Project Implementation Plan

The management of the construction phase of a solar PV project should not be considered

different from any other industry. An essential aspect of any project management remains

programme and scheduling, implementation milestones and risk managements.

A realistic and comprehensive construction programme is a vital tool for the construction

planning and management of any utility solar PV project. The programme should be

sufficiently detailed to show:

 Tasks and durations.

 Restrictions placed on any task.

 Contingency of each task.

 Milestones and key dates.

 Interdependencies between tasks.

 Parties responsible for tasks.

 Project critical path.

 Actual progress against plan.

All tasks and the expected timescales for completion should be detailed along with any

restrictions to a particular task.

For a solar PV project, it is likely that that the programme will have different levels, incorporating
different levels of detail around each of the following main work areas:

 Site access.

 Security.

 Foundation construction.

 Module assembly.

 Mounting frame construction.

 Substation construction.

 Electrical site works.

 Grid interconnection works.

 Commissioning and testing.

A high-level programme should be produced to outline the timescales of each task, the ordering of
the tasks and any key deadlines. This should be completed as part of the detailed design. The
programme will then be built up to detail all the associated tasks and sub tasks, ensuring that they
will be completed within the critical timescale. A thorough programme will keep aside time and
resources for any contingency. It will also allocate allowance for weather risk or permit restrictions
for each task.

Renewable Energy Scenario

Being highly reliable on non-conventional energy resources over the past years, thermal power
plants contribute as a major energy supplier for India. India has been adding its coal fired thermal
plants until the recent times; however, National Electricity Plan restricts the addition of energy by
thermal power plants. Hydro power plants contribute about 13% of the energy sector followed by
20% in renewable. Nuclear energy contributes to 2% of the total energy generated by the country.

Figure 3-1 illustrates a cumulative power generation capacity of India.

3.1 Renewable Energy Scenario in India

Renewable energy sources have a prospective towards providing solutions to the upcoming energy
problems in India. India has been consistently ranked among the top five countries globally in terms
of its market potential for renewable energy. National Action Plan for Climate Change envisaged 4%
contribution by Renewable Energy in the Indian power mix by 2010, to be increased by 1% every
year to reach 15% by 2020.

India being blessed with the abundant supply of renewable energy resources, the energy thus
generated can aid in bridging the demand and supply deficit to a great extent. Renewable energy
contribution to the energy supply portfolio would essentially reduce dependency on fossil fuels and
shall provide opportunities for lowering greenhouse gases. India has world’s largest renewable
energy expansion programme of 175GW till 2022. India added 11GW capacity in renewable in 2016-
17 highest in the world and also exceeding the power added by conventional resources which was at
10.3GW in the same year. Starting from approximately 2% of installed capacity in April 2002,
Renewable energy contributes approximately 20.06% within total installed capacity of 344.002GW1
in India, as on 31 March 2018. Figure 3-2 illustrates an approximate breakdown of India’s renewable
power installed capacity of 69,022MW2.
With wind energy leading the way in the Indian renewable industry, solar has always been an
expensive affair in power conversion. With the government announcing various feed in tariff
schemes, solar purchase obligations and capital prices falling at a significant rate, the solar plants are
expected to play an important role in meeting India’s growing power demand.

3.2 Solar Energy Scenario in India

India receives abundant solar irradiation round the year; with over 300 sunshine days in a year, it
receives a daily average irradiation varying from 3.47 to 7kWh/m2 in most of the geographical areas.
Ministry of New and Renewable Energy (MNRE) estimates a solar power potential of over 100GW in
India; corresponding annual generation with an average of 1.7 million units / MW amounts to 170
million GWh.

India witnessed significant growth in grid interactive solar photo-voltaic(PV) projects in last couple of
years. As of 30 June 2018, cumulative solar capacity stands at 23.02GW, most of which have been
implemented through various feed in tariff policies of state and federal government. Policy initiatives
such as the Renewable Purchase Obligation (RPO) and Renewable Energy Certificates (RECs) are
expected to continue to support this growth.

Table 3-1 below presents the available state wise summary of the utility scale solar PV plants
installed in India until 31 December 2017.

Risk Involved

4 Barriers in Development of the Project

This section describes the key barriers considered to be applicable to an investment in solar photo-
voltaic(PV) projects. The list of barriers identified below is not an exhaustive list. Investors and
developers should satisfy themselves that the level of risk attached with any development is
appropriate to their investment criteria. Developers and investors should make every effort to
mitigate the risks where possible.

4.1 Solar Irradiation Risk

One of the key factors in determining the energy yield of a solar plant is the solar irradiation at the
site. Changes in weather patterns such as cloud cover, rainfall and heat waves could negatively
impact the energy output and, consequently, investor returns. However, meteorological
assessments and long term averaging show that inter-annual variation over the lifetime of a photo-
voltaic(PV) plant is generally quite low, generally in the order of 5%, depending on location.

4.2 Delay in Completion

Delay in completion occurs when there is a reliance on third party contractors for installation. In the
construction phase of a project, developers and Special Purpose Vehicle (SPV) enter into agreements
with third-party professionals, independent contractors and other companies to provide the
required construction and installation services. If such contracted parties are not able to fulfil their
contractual obligations, the developers may be forced to provide additional resources or engage
other companies to complete the work. Any financial difficulty, breach of contract or delay in
services by these third-party professionals and independent contractors could have an adverse
effect on the business.

4.3 Permits, Grid Applications and Feed-in Tariff

Permits and grid applications need to be secured for all project sites. Any project will carry the risk
that all approvals will not be finalised and approved by the competent authority or party within the
expected timeline. Any delays may have an effect on the income stream from the corresponding
project.

4.4 Grid Connection

The connection to the third party distribution or transmission network is often non-contestable.
Therefore, the final grid connection is reliant on the works of the third party network operator or
their contractor. Grid connection contracts and deadlines should be finalised to mitigate this risk.

4.5 Delay in Obtaining an Operating Permit

In some jurisdictions, the relevant authorities must determine whether the construction of the plant
and connection facilities has been carried out in conformity with the approved design, and whether
they comply with the legal requirements. Delays or difficulties in obtaining the operating permit may
affect the income and profitability of the solar photo-voltaic(PV) plant.

4.7 Horizon Shading

Horizon shading is the shading caused by land topography and objects (mountains, etc.) located in
close proximity, blocking the sun-path for a particular period during any given year. Figures below
illustrate the Horizon profile of the Project site. The satellite image does not show any major
obstruction that might have an impact on the solar resource.
 Figure 4.7: Satellite Image illustrating the West Horizon

Figure 4.8: Satellite Image Illustrating the East Horizon

 Horizon Profile of the Project Site

4.8 Shading from obstacles

Installation of photo-voltaic(PV) arrays in areas of potential shading is generally avoided as shading

leads to reduced performance. The site does not have any large nearby structures such as buildings
that may shade it. Given the fact that System Engineering Instrumentation (SEI) has conducted
desktop assessment through satellite imageries of the site, the actual conditions on site may differ.
SEI therefore suggests a topographic survey to be conducted at the earliest to assess the existing on-
site conditions.

Risk Mitigation
4.9 Following the information provided by the Developer, G5 has conducted a high level desktop
assessment on the Project site identified for developing 20MWAC solar photo-voltaic(PV)
plant.Nearest commercial city is Arasikere located around 69.6km from site location. State Highway
(SH-10) connects the site location to Gulbarga. The nearest airport is Rajiv Gandhi International
Airport in Hyderabad and the nearest railway station is in Nawandgi.

Review of satellite images indicates the identified land to be flat with a mild slope in the south
direction. However, a detailed topographical survey shall aid in understanding the actual conditions.

The site lies in seismic zone II and may experience maximum wind speeds up to 39m/s. Module
mounting structures are therefore suggested to be designed to withstand the previously mentioned
seismic and wind conditions.

6.1.1 Comparison of Resource Data

There are a variety of possible solar irradiation data sources that may be accessed. The datasets
either make use of ground-based measurements at well controlled meteorological stations or use
processed satellite imagery. A minimum of 10 years of data is recommended to allow for the
expected variability of resource data between years. For resource assessment, System Engineering
Instrumentation (SEI) has sourced monthly horizontal plane irradiation data for proposed site
location from:

- NASA's Surface Meteorology and Solar Energy data set; holds satellite derived monthly data for a
grid of 1°x1° covering the globe for a twenty two year period (1984-2005). The data are suitable for
pre-feasibility studies of solar energy projects.

- Solar and Wind Energy Resource Assessment (SWERA) / National Renewable Energy Laboratory
(NREL) data was developed from NREL's

Climatological Solar Radiation (CSR) Model using primary data from geostationary satellites. The
satellites provide information on the reflection of the earth atmosphere system and the surface and
atmospheric temperature which is useful in determining cloud cover. Model outputs are verified
with ground-based data to ensure quality of the measurements.

- The METEONORM (version 7.1): global climatological database and synthetic weather generator;
contains a database of ground station measurements of irradiation and temperature. Where a site is
over 20km from the nearest measurement station it outputs climatologic averages estimated using
interpolation algorithms. Where no radiation measurement station is within 300km from the site,
satellite information is used. If the site is between 50 and 300km from a measurement station a
mixture of ground and satellite information is used. The accuracy of irradiation figures close to
measurement stations are within a few percent. Uncertainty increases with distance between the
site and the measurement station, especially in hilly and mountainous terrain.

- SolarGIS Typical Meteorological Year (TMY) data: SolarGIS is developed and operated by GeoModel
a solar company maintaining databases of climate data to support solar energy projects and
systems. Database is derived from Meteosat Second Generation (MSG) and Meteosat First
Generation (MFG) satellites data and atmospheric parameters (aerosol and water vapour) using high
performance algorithms. Data is available from 1999 to 2015. SolarGIS regional coverage includes
Europe, Africa, Asia and parts of South America and Australia. Depending on the source of satellite
data the spatial resolution of solar resource database varies in the range of 1-10km with a temporal
resolution of between 15 minutes to 3 hours. SolarGIS radiation models use multispectral channels
and multi-dimensional statistical treatment of ground albedo, daily values of aerosol and water
vapour. System Engineering Instrumentation (SEI) has obtained SolarGIS hourly typical
meteorological year (TMY) data from

Group 5 Solar Private Limited for the Project site location. The typical meteorological year (TMY)
data is based on 19 years ranging from 1999 to 2017.

For each month, the average radiation over the whole measurement (1999 to 2017) period is
determined. The data for the month that has the average radiation most closely equal to the
monthly average over the whole measurement period is then chosen as the Typical Meteorological
Year (typical meteorological year (TMY) data for that month. This process is then repeated for each
month in the year. The months are added together to give a full year of hourly

samples.

9. Energy Yield Assessment

SEI has computed the annual energy yields for the 20MWAC/27MWp Group 5 Solar Photovoltaic
(PV) Plant using the basic designs and indicative layout. Polycrystalline Photovoltaic (PV) module
technology, central inverter and fixed tilt module mounting structure has been utilized for designing
the project.

For energy yields SEI has:

1) Sourced average monthly horizontal irradiation, wind speed and temperature data with the other
sources which included satellite image derived data. These data have been assessed for use in the
energy yield simulation software.

2) Following the assessment, SEI has selected site specific data sourced from SolarGIS to arrive at
representative energy yield estimates.

3) Calculated the global incident radiation on the tilted plane, taking into account shading.

4) Calculated the losses, using details of the inverter specifications, Photovoltaic (PV) module
specifications, site layout and characteristics.

5) Applying downtime losses, Alternate Current AC ohmic losses, module degradation,

transformation and transmission line losses to obtain energy yields that reflect twenty-five-year
plant life.

Using statistical analysis of resource data for inter-annual variability to derive appropriate levels of
uncertainty in the energy yield prediction Steps 2 and 3 are facilitated using industry standard
photovoltaic simulation software which simulates the energy yield using hourly time steps. The
software takes as input detailed specifications of:

 The solar Photovoltaic (PV) modules.

 The inverter.

 Fixed Tilt system.

 Electrical configuration including number of modules in series and parallel.

Project Implementation/Execution Plan

10. EPC Contract Scope of Work

The 20MWAC Group 5 Solar Photovoltaic (PV) plant shall be implemented through a turnkey EPC
contract. The EPC contractor’s scope of work shall include designing, engineering, procurement,
transport and supply, construction / erection, testing, commissioning and two years of operation and
maintenance.

The turnkey development of solar Photovoltaic (PV) plant by the EPC contractor shall essentially
include:

 Basic project planning, project sequencing and scheduling, solar resource assessment, energy yield
predictions for project life cycle, basic and detailed designing, project component selection,
preparing engineering drawings and all other requirements as required for commissioning and
interconnecting the Photovoltaic (PV)

project site to utility grid.

 Arranging for water, electricity and communications during construction. Obtaining permits and
approvals from all local stake holders, government statutory bodies and electrical inspectorate,
required for commissioning the plant. However the Developer shall at request of the contractor
provide necessary assistance in obtaining such permits and approvals for the project.

 Construction infrastructure and all other civil works, assembly and construction of the entire solar
PV plant and power evacuation / transmission lines, all preconstruction tests, site management and
supervision, labour provision, testing and commissioning of all the equipment’s and interconnection
of the solar PV plant at the utility’s grid substation / switch-yard. The Contractor, however shall not
bear any costs or risk of time delay in connection with the failure or delay of the Project SPV to
secure right of way for transmission lines.

 Commissioning of the Project by detailed planning with proper project management, including
taking over tests, start-up performance test.

 Operation and maintenance (O&M) of the entire solar Photovoltaic (PV) plant for a period of two
years from the date of commercial operation with a possibility of extension for next three years

12. Social and Environmental Impact Assessment

Group 5 Sun Energy Private Limited has proposed to set up 20MWAC Solar Power Plant in Sulepeth
village of Arsikere district of Indian state of Karnataka. The total land identified for the Project is
about 56.75 acres.

The potential environmental impacts associated with solar power- land use and habitat loss, water
use, use of hazardous materials and generation of hazardous wastes. The scale of the system also
plays a significant role in the level of environmental impact. The environmental aspects of the
proposed project are discussed in this section. 20.1 Impacts on Air Environment:

There are no emissions from the solar power plant. However, during the construction phase, fugitive
dust emissions and NOx levels may temporarily increase in the immediate vicinity of construction
site due to soil excavation and vehicular movement. Such impacts will be confined to the
construction site. These can be minimized by sprinkling water and proper maintenance of vehicles.
SEI understands that the ESIA is under revision, developer will develop green belt if it is applicable.

DG Sets during construction stage are likely to be used during construction stage. Only CPCB
approved DG sets with acoustic enclosures/mufflers will be used at the site.

20.2 Impact on Water Environment

During the construction stage, the construction water requirement is estimated at 21kL/Day. During
construction stage, temporary toilets will be provided with septic tanks and soak pits to mitigate the
chances of water pollution.Water is required for cleaning the solar panels to maintain the efficiency
of power generation. No wastewater is generated from cleaning of panels, as the water that
fallsdown from the panels shall be used by the Green Belt and the green carpet developed, if
applicable.

20.3 Noise Pollution

The major sources of noise during the construction phase are vehicular traffic, construction
equipment like dozers, scrapers, concrete mixers, DG Sets, pumps, compressors, rock drills,
pneumatic tools, saws, vibrators, etc. All the equipment will be designed/ operated to have the noise
level not exceeding 85-90db (A) measured at a distance of 1 m from the equipment. Also, all
measures will be taken to limit the noise levels at the plant boundary with in the stipulated limits.

20.4 Impacts on Land and Ecology

Mitigation with plantation of green carpet / green belt is not considered necessary, the project
minimises its impact on land and ecology by utilising less land per MWAC due to optimised compact
layout. Usage of land is expected to be below 3acres compared to 5acres usage of a standard layout.
Plantation of green carpet / belt with local species may be considered if large areas of land are left
unoccupied.

20.5 Impacts on Socio-economic environment:

Commissioning of the solar power plant will improve the power supply position in the region, which
is vital for economic growth as well as improving the quality of life.20.6 Improvement in Physical and
Social Infrastructure.The infrastructure facilities of the nearby area will further develop in terms of
public transport, water supply as well as the power supplies. Various infrastructural facilities like
metaled roads, communication, electricity, water supply, educational and recreational facilities,
hospitals, dispensaries, libraries etc. needed for the local society may develop in future due to
increased economic activity due to the project.

Implementation of the project shall enhance economic growth of the area in general. Cost of land
and other properties in the area will increase. The proposed project is expected to contribute
towards improvement in quality of life of local people, generate inputs for industrial / economic
development in the region and shall increase employment potential. The proposed project will have
a positive impact on the socioeconomic conditions of the people by providing direct and indirect
employment in the proposed project both during construction and operation phases. In addition, the
project shall enhance economic growth of the area in general. During the construction and operation
periods, project would have significant requirements for masons, plumbers, electricians, carpenters,
fitters, welders, security personnel, other miscellaneous services in canteen, plantation, drivers,
housekeeping etc.

13. Permits and Licencing Obtaining the relevant permits and licences is essential to facilitate the
timely completion of a project. Clearances also help ensure that the development proceeds in
harmony with the natural environment, existing land usage and other regulatory interests. It is
recommended that early stage consultation with key authorities, statutory bodies and other relevant
stakeholders is sought. Early consultation can also inform the design process to minimise potential
impacts and maintain overall sustainability of the project.

15. Organisation Arrangement

The following chart shows the staff structure for project execution:

20. General Risk Analysis and Mitigation

The risk factors affecting the development of the solar PV plant and its long term operation

has been analysed by SEI at a high level. Subsequently the mitigation actions that can be

taken are also suggested.

Risk Effect Occurrence Mitigation

Other than Open access and REC,

The project has been awarded
Solar Policy all the feed in tariff policies provide
under Karnataka State Solar Low
risk project security by signing PPAs
Policy.
for 25 years.
 There is no ground measured data
Economic returns of any solar available for site. This risk however
projects essentially depend on is mitigating by comparing various
selected solar resources for satellite data sets and selecting the
Solar the given location. This risk most representative data sets used
Medium for long term energy yield
resource risk may be considerably lower in
case ground measurement prediction.
data are available. SolarGIS TMY data is used for
predicting the energy yield expected
from the Project.

Given the long term nature of

the project, choosing the right
technology is essential
towards achieving Selection of modules and inverters
consistent results and shall be based on the track record of
maximising power output manufacturers and the warranties
Technology over the life of the project. they offer. These warranties help
Low
risk The technology and reduce the risk of technology failure
manufacturer choice for PV in the initial years of the PV plant’s
modules and inverters is operational life.
important for ensuring
trouble-free operation
suited to the environment and
design of the PV plant.

This risk can be mitigated by taking

early consent of the village gram
Given the size of the land
panchayats and strategizing the PV
acquisition and project, there
plant implementation by using local
Social Impact are possibilities of hindrances Low/Medium
man power and other resources
caused to the nearby villagers.
resulting in socio economic
development in the region.

Large trees may be chopped This risk may be mitigated by

during the site construction planting the number of trees that are
Environmental activity, which may lead to an chopped off. Tree plantation can be
Low
risk environmental damage for a done in an area where, minimum
renewable energy project. shading impact on the solar PV
plant is observed.

Risk Effect Occurrence Mitigation

Solar projects require less

Variation in the project costs construction time compared to other
due to not being implemented power plants. With the solar policies
Investment
within the timelines. being quite clear on plant
Cost / Low
commissioning deadlines, this risk
financial risk
can be mitigated by developer
assigning appropriate timelines to
the EPC contractors.
 The Developer is has finalised the
evacuation from Chincholi
Non-availability of grid has a substation. Generally, greater the
Grid
direct impact on project Low voltage, lesser is the down time
Availability
revenues. noted on Indian grids. This may not
be a substantial risk to the plant
Developer.

21. SWOT Analysis-

A summary of the key opportunities and challenges for the Indian solar sector is provided

in the SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis below.

SWOT analysis clearly indicate that development of solar PV plant has several advantages along
with potential opportunities to further harness the policy initiatives and incentives provided by
the Central Government of India and the State policies.

Conclusion:-