Solar Rooftop: Perspective of Discoms Findings from consultations - - PowerPoint PPT Presentation

Solar Rooftop: Perspective of Discoms

Findings from consultations with Discoms

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Content

• Objectives
• Approach and Methodology
• Findings of Interactions
• Key Findings
• Challenges
• Challenges and Opportunities – Technical, Financial, Operational & Administrative
• Regulatory Barriers and Recommendations
• Utility’s Perspective
• Summary and Conclusions
• Way Forward
• Suggested Utility-Based Business Models
• Schemes for Discoms – Solar Rooftop (Phase-II) & KUSUM

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Objectives

Broad objective To present an overview of Discoms’ perspective with regard to the technical, financial, operational & administrative, and regulatory aspects of Rooftop Solar. Specific objectives

• To highlight the key implementation and post-implementation challenges

faced by Discoms with respect to rooftop solar.

• To present some of the operational and institutional practices that has enabled

Discoms to implement rooftop solar in their license area.

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Approach and Methodology

Understand the structure and contours of Central and State policies and regulations Literature review of key studies that came out in past four years on rooftop solar Development of consultation framework and checklist of questions for discussion with Discoms Individual and group interactions with senior Discom

• fficials

Collation of findings and development of discussion paper

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States and Discoms Covered

The selection was done with a view to include Discoms from states which have larger potential for rooftop solar, different consumer mix and

• wnership structure of utilities, such as either public or private.

Managing Directors/ Directors, Chief Engineers/ General Managers and Superintendent Engineers – in charge of commercial, technical, revenue, and project

9 Discoms 30 Discom Officials

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Findings of Interactions

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Key Findings

• Discoms generally feel that

solar rooftop is a viable business proposition, if Discoms take anchor role in its implementation.

• In order to uptake the solar

rooftop segment in the country, few barriers are required to be

• vercome through regulatory

interventions and customized* business models.

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* Based on consumer mix, location, other parameters

* Type and degree of challenges varies from State to State

Challenges* Implementation Anticipated Post Implementation

Technical Financial Operational & Administrative Regulatory

Grid connectivity and Safety aspects, Power Quality Issues, Anticipated generation forecasting Revenue loss, additional administrative expenses Gross Metering vs. Net Metering, Standardization of bidding documents and tenders Metering & Billing, Role of Discom , Lack of manpower, Real-time monitoring

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Technical Challenges and Opportunities

Challenges

• Hosting capacity of DTR for solar rooftop
• Network augmentation required to accommodate

anticipated growth in solar rooftop

• Issues due to penetration of solar rooftop – power

quality, grid connectivity and safety Opportunities

• Reduced T&D losses
• Infrastructure deferral to meet the peak demand
• Reduced network loading – reliability of supply

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Challenges

• Loss in revenue due to reduced energy sales
• Increased burden of infrastructure augmentation/

upgradation to incorporate solar rooftop

• Increased burden of cross subsidy on low paying

consumers Opportunities

• Compensation for REC at lower cost
• Deferring capital expenditure on network augmentation

& reduction in O&M expenditure

• Reduction in power purchase cost

Financial Challenges and Opportunities

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Challenges

• Metering and Billing
• Solar rooftop generation– monitoring and

forecasting

• Lack of skilled manpower

Opportunities

• Better reliability of power supply
• Meeting RPO targets
• Reducing the overall demand

Operational & Administrative Challenges and Opportunities

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Limitations

• Consumer-oriented policy

and regulations

• Lack of incentives for Discoms
• Lack of coordination between

implementing agencies Recommendation

• Amendments – More Discom-
• riented
• Clarity and standardization of

documents

• Incentives and measures for

Discoms

Regulatory Limitations and Recommendations

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BSES Rajdhani Power Ltd. (BRPL) – Delhi Calcutta Electric Supply Corporation Ltd. (CESC) – West Bengal Dakshin Gujarat Vij Company

• Ltd. (DGVCL) – Gujarat

West Bengal State Electricity Distribution Company Ltd. (WBSEDCL) – West Bengal Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company

• Ltd. (MPMKVVCL) - Madhya

Pradesh

Utility’s Perspective

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• Metering and Billing
• Data Management - Monitoring and

Forecasting

• Lack of consumer awareness, skilled

manpower

• Reduced energy sales & increased cross

subsidy burden

• New and innovative business model
• Gross-metering net-metering
• Issues with increasing penetration –

power quality, grid connectivity and safety

• Hosting capacity of DTR
• Energy storage
• Anti-islanding issue
• Amendments - more Discom-oriented
• Clarity and standardization
• Incentives and Measures
• Coordination between implementing

agencies Regulatory Technical

Operational & Administrative

Financial

Summary and Conclusions

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Utility Based Business Models Empanelling of developers for the ease consumers Targeted Consumer Awareness Discom-

• riented

policies and schemes

Way Forward

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Suggestive Utility-Based Business Models

For Net Metering Connection Arrangement For Gross Metering Connection Arrangement

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Schemes for Discoms

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Cabinet approves Phase-II of Grid Connected Rooftop Solar Programme for achieving cumulative capacity of 40,000 MW from Rooftop Solar Projects by the year 2022

Posted On: 19 FEB 2019 8:47PM by PIB Delhi

Cabinet approves launch Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM)

Posted On: 19 FEB 2019 8:40PM by PIB Delhi

Total Central Finance Assistance (CFA)

• INR 11,814 crores

CFA Support for different categories

• Residential Sector – for 4,000 MW capacity
• 40% - up to 3 kW capacity
• 20% - capacity beyond 3 kW and up to 10 kW
• GHS/RWAs - 20% for RTS plants for supply of power to common facilities
• No CFA for all other categories - institutional, educational, social,

government, commercial, industrial, etc. Focused on increased involvement of Discoms

• Performance based incentives will be provided to DISCOMs based on RTS

capacity achieved in a financial year over and above the base capacity i.e. cumulative capacity achieved at the end of previous financial year

• To compensate additional expenditure for implementation of scheme in

terms of additional man power, creating infrastructure, capacity building, awareness, etc.

• Limit on incentives - for the initial capacity addition of 18,000 MW

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Phase-II of Grid Connected Solar Rooftop Scheme – Key Points

Parameters Incentives For installed capacity achieved up to 10%

• ver

and above

• f

installed base capacity within a financial year. No Incentives For installed capacity achieved above 10% and up to 15% over and above

• f

installed based capacity within a financial year 5% of the applicable cost for capacity achieved above 10% of the installed base capacity For installed capacity achieved beyond 15%

• ver

and above

• f

installed based capacity within

• ne

financial year. 5% of the applicable cost for capacity achieved above 10% and up to 15% of the installed base capacity PLUS 10%

• f the applicable cost for capacity

achieved beyond 15% of the installed base capacity.

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KUSUM Scheme – Key Points

• 10,000 MW of Decentralized Ground Mounted Grid Connected Renewable Power Plants.
• Capacity 500 KW to 2 MW; setup by individual farmers/ cooperatives/ panchayats/ farmer producer organizations
• The power generated will be purchased by the DISCOMs at Feed-in tariffs determined by respective SERC. Performance

Based Incentives @ INR 0.40 per unit for five years to be provided to DISCOMs.

• Implemented on pilot mode for 1000 MW capacity, at first.

Component A

• Installation of 17.50 lakh standalone Solar Powered Agriculture Pumps.
• Capacity up to 7.5 HP; Solar PV capacity in kW equal to the pump capacity in HP is allowed under the scheme.
• CFA support – 30% (Central) + 30% (State) + 40% (Farmer – out of which 30% can be from banks) of benchmark cost; for

special category states, CFA of 50%.

• Implemented in full-fledged manner

Component B

• Solarization of 10 Lakh Grid-connected Solar Powered Agriculture Pumps.
• Capacity up to 7.5 HP; Solar PV capacity up to two times of pump capacity in kW is allowed under the scheme; Excess

available energy will be sold to DISCOM – help in meeting RPOs

• CFA support – 30% (Central) + 30% (State) + 40% (Farmer – out of which 30% can be from banks) of benchmark cost; for

special category states, CFA of 50%.

• Implemented on pilot mode for one lakh grid connected agriculture pumps, at first.

Component C

KUSUM scheme aims to add a solar capacity of 25,750 MW by 2022, with total CFA provided under the scheme would be INR 34,422 crore.

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Support Learning Platform for Utilities in Distribution Sector

Key studies identified: – Preparing Demand-Side Management (DSM) action plan based on extensive load research as well as technical support for implementation of DSM interventions – Integration study for grid operation in Andaman and Nicobar islands for proposed solar capacity – Decentralized solar PV near the rural user end to minimize distribution losses and providing end-of-line voltage support – Assessment for aggregating DSM opportunities at utility level among industrial consumers for low carbon growth.

DUF Secretariat: The Energy and Resources Institute, 6C, Darbari Seth Block, India Habitat Center Complex, Lodhi Road, New Delhi, Delhi 110003 Email: DUF_Secretariat@teri.res.in Phone: 91 11 41504900 Extn 2205

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