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SOLAR ENERGY IN RAJASTHAN. Presentation by Mr. D.C. Samant, Chairman Rajasthan Electricity Regulatory Commission November 5, 2009 Washington D.C. POTENTIAL & STATE INITIATIVES. Rajasthan is the largest state of India (342,000 sq. Kms.)
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SOLAR ENERGY IN RAJASTHAN Presentation by Mr. D.C. Samant, Chairman Rajasthan Electricity Regulatory Commission November 5, 2009 Washington D.C.
POTENTIAL & STATE INITIATIVES • Rajasthan is the largest state of India (342,000 sq. Kms.) • Population around 60 million (1/5th of U.S. Population) • 2/3rd of the state is desert and semi-desert with scanty rainfall and plenty of sunshine • Is deficient in conventional power resources such as coal, hydro, etc. • State has immense solar potential, the best in India and amongst the best in the world
ENERGY SCENARIO IN INDIA • Rapidly growing demand due to - high GDP growth - access to power for all by 2012 • Energy consumption grew by around 10% per annum in past 6 years (ending FY 2008) - Corresponding growth being around 12% in Rajasthan - Overall energy shortage is around 10% (capacity shortage 13.8%) • Growth in demand has exceeded capacity addition - Widening of gap between demand and supply - Power cuts in some cities of India
HARNESSING OF RENEWABLE ENERGY (RE) • Acceleration in exploitation of RE sources imperative or rather urgent due to - Demand supply scenario - Depleting fossil resources and their rising costs - Emerging serious threat of global warming. • National action plan on climate change formulated by GOI which lays high emphasis on growth of RE - Solar mission is on the anvil - India aims to become a global leader in the use of solar energy
SOLAR MISSION (some key features) • 20,000 MW Solar capacity (as per final draft) - Utility grid power -- 12,000 mw - Rooftop PV -- 3,000 mw - Others (incl. Rural installation) 5,000 mw • Renewable purchase obligations • Grid parity by 2020 • Solar Mission is expected to be announced soon. - Final position with regards to policies, incentives and road-map of solar development would come out at that time. - Government of Rajasthan’s policy will factor in the final solar mission objectives and policies.
SOLAR POTENTIAL IN RAJASTHAN • Best solar radiation in India - Amongst the best in the world - Similar to California and Nevada in USA • Solar radiation being 6-7 kWh/sq. meter • More than 325 sunny days in a year (amongst the best in India) • Land in abundance and is available at much lower price than other areas • State’s desert has the area of 175,000 sq. kms. - Land required to generate 10,000 MW is less than 400 sq. kms.
WHY RAJASTHAN? • Rajasthan is poised to become a solar power hub in India in years to come due to - Huge solar potential - Land availability in abundance - Galloping power demand - Pro-active policies of the state government - Commitment to facilitate investments in this sector - Emerging opportunities on launching of the Indian solar mission - Renewable purchase obligation order of Regulatory Commission along with feed-in tariffs.
INITIATIVES IN THE STATE OF RAJASTHAN • Policy to support development of non-conventional energy sources issued by state government, which, inter-alia, stipulates - Preferential tariffs for sale of solar power - Open access - Third party sale/captive use - Evacuation of power by State Transmission Utility - Land at concessional rate. • Facilitation and single window clearance by Rajasthan Renewable Energy Corporation (RREC) - RREC is designated as Nodal Agency for renewable energy
RENEWABLE POWER PURCHASE OBLIGATIONS • Following is the minimum % of RE mandated under Electricity Act YEAR Min. Energy Min. Energy Wind Bio-mass 09-10 6% 1.45% 10-11 6.75% 1.75% 11-12 7.5% 2.0 % SOLAR • 50 MW of power to be purchased by distribution licensee at rates to be announced by the commission. • Additional 10MW capacity under Generation Based Incentive scheme of Govt. Of India has been approved • Total mandated capacity - 60MW. • Power Purchase agreement for 25 years and Tariff for 20-25 years.
RPO AND WIND GENERATION • Renewable Purchase Obligation (RPO) specified by regulatory commission has given tremendous boost to wind energy generation, as shown below: • Year wind generating capacity added in the year 07-08 70.5 MW 08-09 199 MW 09-10 (likely) 300 MW - Total capacity to exceed 1,000 MW by this year as against about 7,000 MW of conventional power. • Feed-in-tariff under RPO stipulates attractive returns for investors (16% ROE, pre-tax)
Future Plans – Solar Energy • 66 MW capacity allocated to about 11 developers by the state government. - Land allocated to most of the developers. • Petitions for tariff determination filed by 11 developers - 7 for PV solar plants of 5 MW each - 3 for Solar Thermal plants of 10 MW eac - 1 for Concentrated Solar PV plant of 1 MW. • Capacity to be scaled up once solar mission is launched • Levelised tariff for 20-25 years to be announced shortly as feed-in-tariff by the Rajasthan State Regulatory Commission - Rajasthan would be the first state to do so. • Land bank is being created
CAVEAT • Success of solar mission and scaling up of solar generation to the extent required to mitigate the adverse impact of carbon emission hinges critically on drastic reductions in energy costs. - All possible efforts need to be made to achieve this lest it is too late. - Every stake holder has to realize this and contribute in ensuring success of the solar mission. - It may also require sacrifices - speculation or short term gains may jeopardize the long term interest of such a critical initiative. • Solar energy would become far more important if generation could also meet peak demand load requirements. - Storage or any other solution need to be pursued vigorously.
THANK YOU FOR YOUR PATIENT HEARING AND KIND ATTENTION