Transcript Presentati on by ACME - Forum of Indian Regulators

ACME
Presentation
To
Forum of Indian
Regulators
ACME Group – Overview
• The ACME group was founded in 2003
Revenue Growth Path
• ACME Tele Power Limited (ATPL), the
(in INR million)
flagship company of ACME Group, is a
25000
leading provider of energy management
20000
solutions for telecom sector
15000
10000
• Presently has an employee strength of 1500
• Global presence
5000
0
FY-03 FY-04 FY-05 FY-06 FY-07 FY-08 FY-09
• 7 Patents Awarded & 100% commercialized
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ACME’s products and solutions are innovation driven
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The ACME Group: Diversified Businesses
Telecom
• Provides technology
solutions to the telecom
industry both in India as
well as around the world
• Energy management
solutions for various
industrial sectors
Solar Energy
• Focused on commercializing
technologies for
environmentally-friendly
and efficient energy
generation system
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Distributed Power Generation
• Distributed power generation
through various state-of-theart technologies like Micro
Solar Thermal, Microturbines,
fuel cells etc
Waste Water Treatment
• Provides complete water,
waste-water and waste
management solutions
• Offers both point-of-entry and
point-of-discharge solutions
Solar Potential in our Country
• Abundant solar energy of 5,000
trillion kWh/year
• Major regions of India enjoy strong
radiation almost throughout the year
• A predictable, reliable, perennial
source of energy and has got
potential to meet the total energy
requirement of the country
• Clean, environment friendly green
energy
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Solar Thermal : Globally promising technology
• 1200 MW of Solar Thermal capacity already under construction
• 13900 MW of Solar Thermal projects announced for 2014
• Wide array of operational international installations:
•
•
•
•
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Solar Energy Generation Systems plant, USA (354 MW)
Nevada Solar One, USA (50 MW)
Andasol 1, Spain (50 MW)
PS20, Spain (20 MW)
PS10, Spain (11 MW)
• 3 World bank projects for Solar Thermal approved in Egypt,
Morocco and Mexico
• eSolar technology: While other plants still offer high tariffs (e.g.,
Rs. 21/unit for PS10 in Spain), with eSolar technology, tariff is
approximatelyRs. 14/unit currently
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ACME in Solar Thermal
• ACME
was first to introduce the cutting-edge
modular Solar Thermal technology in India
• Exclusive agreement with leading technology
provider eSolar of USA
• ACME Solar Thermal:
• 2.5 – 50 MW modules for power
generation
• First 10 MW plant is under implementation
and first module is likely to be ready by
March 2010 in Bikaner
• 50 MW plant to be ready by Dec 2010 in
Gujarat
• 150 MW being developed in Rajasthan for
Northern regional states (Delhi, Haryana,
Punjab, Rajasthan)
• 100 MW MOU signed with MP Govt.
• 5 MW allocated by Maharashtra Govt
under MNRE scheme
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ACME is building world’s cheapest solar thermal power plants
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Advantages of Solar Thermal
Parameter
Solar Thermal
Energy Security
• No dependence on imports
• Predictable & perennial power supply
Manufacturing Potential • Manufacturing facility for all components exist in India
• Only incremental investment. Boilers, Mirrors, Turbines, Towers
Raw material
No raw material imported, as opposed to other solar technologies
Job Creation
Efficiency
Allied beneficiary
industries
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• Highly labor intensive
• Creation of huge direct and indirect employment
• Solar Thermal plants create 2.5 times as many skilled high
paying jobs as other conventional power plants
Greater than 24% (Higher than any other commercially available
Solar technology)
Steel, Glass, Software, Tools, Construction, Mining, Heavy
equipment
Solar Thermal Equipments Manufacturing Capacity
Component
Suppliers Identified
Manufacturing capacity
Solar Block
Mirror
Indian and MNC majors
• 6 months delivery period
• Any capacity can be made available
Boiler
Many local small & medium
industries
Tower
Many local small & medium
industries
• 6 months delivery period
• Capacity can be ramped up as required
• 3 months delivery period
• Large production capacity in India
Power Block
Turbine
Local SMEs, Maxwatt,
Turbotech, Triveni, BHEL,
Siemens
Cooling Tower
Local SMEs, Gammon,
Paltech, Paharpur
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• Multiple 2.5 MW to 50 MW units with 6-12 months
delivery time
• Capacity enhancement as required
• 5 to 50 MW modules with 6-8 months for
commissioning
• Capacity enhancement as required
In 12 months, capacity can be scaled up to few thousand MW
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ACME’s Capability
• ACME proposes to set up multiple solar power projects at
different locations as follows:
– Utility – scale Solar Thermal Power projects of 100 MW each at different
locations
– Solar Photovoltaic technology based power projects
– Integrated solar combined cycle system (ISCCS) Power project of 210 MW
capacity, which will use both conventional and non- conventional energy
sources.
– Micro- Solar technology based power projects:
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•
•
•
Off-grid (domestic)
Off-grid non domestic
Grid –connected
Distributed generation
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How Solar Thermal Technology works
• A field of sun-tracking heliostats reflects solar heat to a
thermal receiver mounted on top of a tower
• The focused heat boils water within the thermal receiver
and produces steam
• The plant pipes the steam from each thermal receiver
and aggregates it at the turbine
• The steam powers a standard turbine and generator to
produce solar electricity
• The steam then condenses back to water through
cooling, and the process repeats
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Aerial view of the 5 MW facility
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About Solar Thermal Technology
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Sun rays producing steam from receiver
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Integrated Steam Combined Cycle
• The ISCC plant will generate 210
MW of power for about 6 – 7
hours and when the solar steam
stops at sundown, the plant will
deliver 160 MW
• This will help in meeting the loads
during peak hours as well as in
optimal utilisation of solar
capacity.
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Photovoltaic Power System
• A photovoltaic (PV) power
system converts the sun’s energy
directly into electricity. The main
component of a PV system is a
photovoltaic module which
consists of a number of
photovoltaic cells
• Photovoltaic modules and
inverter and all the ancillary
control and management
equipment together make a
photovoltaic power system.
• PV systems vary in size to suit
different applications (for
example houses, commercial
and industrial buildings or
centralized production).
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Micro Solar Thermal
• A parabolic trough is a type of solar thermal energy collector. It is constructed
as a long parabolic mirror (usually coated silver or polished aluminum) with a
Dewar tube running its length at the focal point. Sunlight is reflected by the
mirror and concentrated on the Dewar tube. The trough is aligned on a death
star, and rotated to track the sun as it moves across the sky each day.
• Heat transfer fluid (usually oil) runs through the tube to absorb the
concentrated sunlight
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Acme’s perspective on
Regulatory Frame work.
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ACME’s Observations
 Project Cost and Tariff Determination
• Acme has acquired eSolar technology, which is modular and scalable. The present project
cost is Rs 15 cr per MW and corresponding energy tariff is comparatively high. The initial
high tariff needs to be supported and nurtured by feed in tariff . This initial support is
needed so as the technology is developed and all the high cost projects equipments are
indigenized.
• After achieving scale of say 500 MW the project cost is expected to attain parity with
conventional coal based Thermal projects.
• The subsidy on new projects can be gradually reduced and brought to zero.
• CERC/ SERC to determine the project cost and the corresponding tariff in the spirit as
enshrined in “The Electricity Act 2003” and the objectives/ strategy of Solar Mission
document of National Action Plan on Climate Change.
Cl. 86 (e) of Electricity Act 2003, mentions one of the functions of State Commission as
“ promote cogeneration and generation of electricity from renewable sources of energy by
providing suitable measures for connectivity with the grid and sale of electricity……..”
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ACME’s Observations
• In order to utilize and harness the generous gift of Mother Nature i. e. Radiant Solar
Energy optimally, the provision of Integrated Solar and Combined Cycle Power
Project (ISCCP), has been envisaged. Acme has planned to set up at least two such
ISCCPP. Honourable commission may consider these projects with view to encourage
these projects.
• Definition of Solar Thermal Projects to be brought in line with ‘ California Electricity
Commission.”
• CERC to decide the tariff , if beneficiaries are more than one state & SERC/State
Govt to decide extent of share by various utilities with in the state.
• SERC to decide the tariff , if beneficiary is with in a state.
• Solar projects where MNRE is providing subsidy, those projects should be eligible for
tariff determination by CERC.
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ACME’s Observations
 Solar projects to be kept exempted from Custom and Excise duties.
 Accelerated depreciation has been introduced by some of the SERC s,
however the same can only be availed by developers having income tax
liabilities. It is requested to provide corresponding incentive in the tariff for
the developers who can’t avail the benefit of accelerated depreciation. This
will provide level field to develop the solar power projects.
 Subsidized interest rate on loan.
 Speed up the process of tariff determination of each state and PPA.
 Grid Connectivity
• Transmission of solar energy will not be subjected to Open Access charges
from Central Transmission system in case of inter state transmission of power
with in the same region.
• Transmission line/ power evacuation system to be provided by state
governments) or its agency.
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ACME’s Observations
 Capital Cost for Solar Thermal Power Project
• Normative capital cost for Solar Thermal Project with STP technology is to be
specified as 15 Cr/MW and above, depending on the technology adopted.
• Capital cost for :
• 10 MW capacity PS-10 project at Seville, in Spain - Euro 35 Million i.e. >20
Cr/MW.
• 20 MW capacity PS-20 project at Seville, in Spain - >21 Cr/MW.
• Proposal to keep the capital cost of project with Solar Thermal technology in
India, not less than 15Cr/MW.
 Capacity utilization factor
• CUF is linked to Direct Insolation Level of the area where project is located.
• In best conditions CUF is not likely to exceed 22%, the same to be specified as
a normative figure for solar thermal power project .
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ACME’s Observations
 Return on Equity
• The pre-tax return to the level of 19% for first 10 years which gives effective
post- tax return of 15 % revised as per our suggestion. We are thankful for the
same.
 Capital Cost of Solar PV
• Proposal to keep the Capital cost of project with Solar PV in India, not less
than 18Cr/MW.
 Capacity utilization factor
• Proposed CUF of 19% for Solar PV is on the higher side.
• Reasonable figure of CUF with Solar Insolation level of 800-1000 W/m2 should
be 16-18%.
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Summary
• India has got huge potential for development of MW class Solar Thermal power
projects.
• Technologies are credible, reliable & simple.
• Biggest deterrent is high initial cost due to the fact that all critical components of
solar block are imported.
• Technology needs initial support in the form of preferential tariff/feed-in tariff.
• Certain level of installed capacity in order to achieve economies of scale, critical
components being imported can be localized 100%.
• Capital cost of Solar Thermal Power Project can be brought down by localisation.
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