Partnership to Advance Clean Energy - Deployment (PACE-D) TA Program - - PowerPoint PPT Presentation

Partnership to Advance Clean Energy - Deployment (PACE-D) TA Program

The IIIrd Knowledge Exchange Workshop for States

Development of Solar Rooftop in Karnataka 30th June, 2016

Presented by The USAID PACE-D TA Program

Development of Solar PV Rooftop Framework in the State

Policy Framework for Solar Rooftop Net Metering Regulation for Solar Rooftop Possible Business Models for Solar Rooftop Implementation Framework for Solar Rooftop Guidelines for State Utilities for Solar Rooftop List of Developers/ Equipment Suppliers/ Financial Institutions etc for Solar Rooftop Gross Metering

Net Metering

Defining Roles Framing Guidelines Targets Incentives

Policy Regulation Implementation

Department of Power & Renewable Energy, State Government (No Role in Implementation) State Electricity Regulatory Commission (SERC) (Minimal Role in Implementation) State Distribution Company/ Consumers/ System Providers/ Channel Partners (Key Role in Implementation) Cost Benefit Analysis and Investment Application/ Identification of system provider Consumer System design Meeting technical standards and utility requirements System Provider Process design & integration with utility business practices Formats and Forms Utility

Development Stages and Key Stakeholders – Solar Rooftop

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Genesis of Solar PV Rooftop Development in the state of Karnataka – Policy

Initial Development of Solar PV Rooftop in Karnataka:

• Development of solar rooftops in Karnataka started in 2009 with the announcement of the

Karnataka RE Policy 2009-14.

• The policy set a target of deploying 25,000 solar rooftop installations with a capacity between 5 and

10 kWp using the Net Metering facility under the ‘Solar Karnataka Program’.

• The policy covered individual homes and commercial establishments and provided a tariff of INR

3.40/kWh for export of power over and above the internal consumption under the Net Metering facility.

• Program was not as successful due to the low export price provided under the Net Metering

scheme as well as the higher cost of solar generation when compared to the cost of power from the distribution utility.

• Karnataka Solar Policy 2014-2021: To add 2000 MW solar power by 2021 which would include a

minimum of 400 MW by 2018

• National Solar Mission Target for the state of Karnataka: 2300 MW by 2022

Regulatory Intervention for Development of Solar PV Rooftop Development in the state of Karnataka

• Karnataka Electricity Regulatory Commission (KERC) ON 10.10.2013 determined Tariff for

Grid Connected Solar Roof Top power plants

• Roof Top Solar PV plants (Without Subsidy) - Rs. 9.56/ kWh
• Roof Top Solar PV plants (With Subsidy) - Rs. 7.20/ kWh
• This tariff was applicable to all solar PV Rooftop plants entering into a PPA with the

distribution utilities until 31st March, 2018. The settlement period was monthly

• The Order allowed any consumer to set up solar PV rooftop plants upto a capacity of 1 MW
• The distribution utility was made responsible for facilities to evacuate power from the

interconnection point and was not allowed to charge augmentation fee as well.

• The developer was responsible for providing evacuation facility up to the point of

interconnection point.

The Process laid down very specific steps for BESCOM and the consumers STEP 1: Submission of application for interconnection with:

• Consumer information
• PV system capacity
• Other required information

STEP 3:

• Installation of system
• Testing of system
• Call for inspection & interconnection

STEP 2: Screening and preliminary approval

• General screening
• Technical feasibility
• Approval

STEP 4:

• Inspection and commissioning of PV

system

• Chief Electrical Inspector/ Third party

inspection as applicable CONSUMER’S ACTIVITIES DISCOM’S ACTIVITIES

APPLICATION PROCESS Applicant downloads the Application Formats and Guidelines from the BESCOM website. Applicant submits the Application Form online or offline duly attaching copy of electricity bill, photo and necessary certificates. Registration Fee shall be paid at Sub-division. If offline application is received, Assistant Executive Engineer (AEE) converts it into online format. Upon review at Sub-division, Assistant Executive Engineer issues approval letter for LT installations while Executive Engineer (EE) issues approval letter for HT installations. REVIEW After installation of PV system, Applicant pays Facilitation Fee, procures bi-directional meter, gets it tested at MT division and submits test reports. AEE/ EE (O&M) of Sub-division signs PPA with Consumer. Consumer requests for commissioning. Applicant takes corrective action and applies again. INSTALLATION After request of Applicant, AEE/ EE (O&M) tests, commissions and synchronizes PV system. COMM.* File is sent to Revenue Section in O&M Sub-division for billing. BILLING Utility provides suggestions and reasons for failure. Utility issues Certification of Synchronization to Applicant. PV system commissioning test. FAILS PASSES *Note: ‘Comm.’ means ‘Commissioning’

Based on the directions of the Policy makers and Regulators, BESCOM developed a comprehensive Interconnection Process for Net Metering

The implementation framework also defined an institutional setup for solar rooftop deployment within the utility

Capacity Building - Imparting Training to Engineers of all ESCOM’s and developing Process and Technical Committees

• BESCOM in association with USAID implemented three training programs for

engineers of BESCOM and other ESCOMs

• Between December 2014 and March 2015, BESCOM trained close to 250

engineers

• The Technical and Process Committee have been constituted by BESCOM and

have representatives from USAID PACE-D TA Program, GERMI, CPRI, etc.

• These two committees meet once every two months and address issues related

to the technical and process aspect of solar PV development

• These two committees allow BESCOM to leverage external expertise and keep

the utility updated on latest technology trends and issues impacting solar PV rooftop development

• BESCOM developed a Tripartite Agreement which allowed the pass through of

all solar revenues to the investor in case of Third Party based investments

• brought in investor confidence and also facilitated financing of solar

projects

• Developed very stringent empanelment procedures for inverters and Net

Meters

• Empanelment of these two critical components ensured the safety of the

grid as well as the commercial transactions

• However allowed a multitude of developers/ EPCs to provide services –

enhanced competition

Facilitating efficient solar rooftop project development – through the Tripartite Agreement and Empanelment of Vendors for key components

• Through BESCOM website (www.bescom.org)
• Through the BESCOM SOLAR HELPDESK: (Land line No: 080-2234-0816 & e

mail id: solarhelpdesk@bescom.co.in)

• Through Newspaper adds and Pamphlets.
• Through Radio Jingles and T.V.
• Through TV screens of Railway reservation and ticketing Counters.
• By putting up stalls in Exhibition Centres
• Through all the field staff of BESCOM
• Through a Process Manual for all key Stakeholders which focusses on

requirements of Consumer, System Installer etc. Educating the prospective applicants through Outreach

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Introduction of Gross Metering

• It was found that a large majority of the consumers were not finding it worth their while

to participate in the solar rooftop program

• The DISCOMs serve approximately 20 million retail consumers in Karnataka
• In terms of energy sale, Agriculture is the biggest (36%) consumer followed by

Domestic (21%).

• These categories were not benefiting from solar rooftop because of viability issues
• At the same time the utility was losing out on high paying consumers and also not

benefiting from distributed generation

• Unless some new directions were provided, the utilities would continue to suffer from

revenue reduction and not enjoy the benefits of distributed generation

• BESCOM petitioned for Gross Metering for Solar Rooftop which was granted by the

KERC

• Long and arduous Approval and Commissioning Process

– Very happy with application process – efficient and timely – Approvals can take up to three months – suggestion to make the approval process automatic post a specific period of time like by Andhra Pradesh – Commissioning process is also very long – to much documentation required and is cumbersome

• Grid Availability

– Grid availability is good in urban areas but is a challenge especially in semi-urban and rural areas -

• Adoption of Gross Metering for Domestic, Educational & Health

– Domestic consumers not too happy with the reduction in tariff post introduction of FiT – Consumers/ developers feel that Gross FiT is very low for the health and educational sectors – does not meet RoI requirements – also they are hurt by the high cost of customer acquisition – Net metering option should be available for these segments as well – For health and educational institutions – interconnection at 11 kV level is a challenge – costs go up/ commissioning time increases

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Key Issues Impacting Solar Rooftop Development – Administrative Processes and Regulation

• Institutional Capacity of Distribution Utility Engineers

– Limited knowledge and training amongst the staff/ engineers at the ground level on solar rooftop

• Need for specialized training programs on solar rooftop
• Need for more cooperation during the commissioning process especially to

make sure that commissioning does not get delayed

• Awareness

– There is limited or no awareness of solar rooftop especially amongst the domestic/ educational and health consumer categories – Whatever awareness was there was because of the Rs 9.56/ kWh tariff – this prompted many investors and consumers to consider solar rooftop for the first time – No – awareness on how to interact with BESCOM – how to take the first few steps - no awareness on BESCOMs helpline numbers and dedicated solar rooftop webpage – Need for greater hand holding from BESCOM – especially regarding policy/ regulation and administrative processes – Consumers happy with vendors

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Key Issues Impacting Solar Rooftop Development – Awareness and Training

• High risk perception for private PPAs

– Third party investors find high counterparty risks for private PPAs – very happy with the Tripartite Agreement which has now been discontinued

• Financing

– Challenging experience with banks - banks have limited to no understanding of the sector – only one developer we met was able to get financing for project – Availability of financing especially bad in case of educational institutions and hospitals due to higher risk perception – Domestic sector happy with returns – those who have installed these systems till now

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Key Issues Impacting Solar Rooftop Development – Financing

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Challenges Going Forward for Solar PV Rooftop Deployment

• Balancing the development of solar PV rooftop while at the same time ensuring that the utility

does not lose too much revenue

• Streamlining approval and commissioning process – make it time bound and shift onus to

utility

• Development of evacuation infrastructure especially for the large 1 MW solar rooftop plants

being developed under the Rs. 9.56/ kW order

• Facilitate access to financing especially for Gross Metering
• Evaluating the impact of large scale penetration of solar roof top on the grid especially feeders

with MW scale plants

• Training of engineers and ensuring that the process of solar rooftop plant development

remains efficient

• Identifying areas on the grid where the development of solar rooftop would be beneficial for the

grid and encouraging its development

• Encouraging rooftop development amongst domestic, public and agricultural consumers
• Evaluating whether it makes sense for BESCOM to develop a utility based business model for

solar rooftop deployment

Key Partners: RE Component

Capacity to design and implement supportive policies and regulations Implementation of techno-commercially viable pilots Design and development of innovative financing mechanisms Microfinance Partners Training

Thank You