1 mw pv solar power project - brief analysis

7/29/2019 1 MW PV Solar Power Project - Brief Analysis

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1 MW PV Solar Power Project

Brief Techno-Commercial Analysis


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Enerco Energy Solutions LLP

Phone : 022 42643671 Email : [email protected]

Mobile : 9890737447 Website : www.econserve.in

CONFIDENTIAL

Introduction

Solar Energy is the combined term used for Heat & Light Energy received from

the Sun. Each energy type popularly known as Solar Thermal and Solar Photo

Voltaic can be either utilized independently or together using upcoming hybrid

technologies. In India the primary focus so far has been on Solar Thermal

primarily for heating and drying purposes.

However in the recent time Photo Voltaic Solar is evincing widespread interest

especially because it is directly related to conversion of light energy of the Sun

into Electrical Power. Being a Solar rich and power deficit Country Solar PV

presents an excellent opportunity for Power generation.

Geographically India is ideally located to utilize Solar Energy to the maximum.

Two main factors that are required to justify the use of Solar Energy are :

a. Good Solar radiation (as seen in Fig. 1 below).

b. Good number of Sunny days in a year.

Both the conditions are met for almost the entire Country making it one of the

most sought after destinations by global Solar Power Developers.

Fig. 1 GHI Solar Radiation Map of India


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CONFIDENTIAL

A typical PV Solar project consists of a PV Panel or module which is the heart of

the system. This module converts the light energy of the Sun into Electrical

power as depicted in the figure (Fig. 2) below

Fig. 2 Photo Voltaic Effect

It offers unprecedented benefits which cannot be offered by other technologies

including other renewable technologies especially for Industrial Plants.

PV Solar does offer several advantages that no other fossil fuel or renewable

technology can offer. However due to misinformation about the Technology,

Costs, Viability etc. it is yet to witness the potential that it possesses. Industrial

Plants however should take a proactive step in adopting PV Solar as part of their

Power Mix because it aptly fits into the Industrial environment.


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CONFIDENTIAL

Project Specifics

Project Size : 1 MWp (1000 kWp)

Technology : Poly-Si Photo Voltaic

Area Required : 4 Acres (Approximately for Ground Mounted Projects)

15,000 Sq.m. (Approximately for Rooftop Projects)

Tentative Output : 14 Lakh to 17 Lakh Units (kWh) per Annum. (May change

depending on technology and project location for a Static

System. No tracking system considered. Tracking system can

improve the output further.)

Tentative Project Cost : INR 7.5 Crores using Poly-Si (Costing is subject to

site conditions and time of order placement. Other lesser

costing technologies are available but have their limitations.)

Expected Project Life : 25-30 years.

Salient Points :

Project is cash-flow positive from 1st year of operations.

Equity (25%) Payback can be in 2 to 2.5 years .

Debt (75%) Repayment can be done over 10 year period and can be

serviced from first day of operations. Overseas financing can reduce

interest cost.


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CONFIDENTIAL

Equity IRR is in the range of 75-90% subject to conditions such as subsidy

or incentive applied for, project type (captive or grid-feed), financing

options etc.

Project IRR is in the range of 17-20% subject to conditions such as

subsidy or incentive applied for, project type (captive or grid-feed),

financing options etc.

Various Government subsidies and incentives at National as well as State-

level makes the project a lucrative investment opportunity.

80% Accelerated Depreciation can be claimed for existing profit-making

Companies.

For grid-feed projects a long-term Power Purchase Agreement can be

signed with State Electricity Boards at Preferential Tariff.

For captive projects there are certain schemes for making the project

viable. Moreover captive projects will also enjoy a sustained benefit of

constant cost of production as against grid prices which have been

rising and are expected to rise further.

In case of 100% Equity Investment complete investment can be

recovered in 5 years. FREE power is thus available for the remaining

project life as there are NO operational costs and NO Fuel costs.

* W e h a v e co n s id e r e d t h e p r i c i n g a n d Go v e r n m e n t s u b s i d ie s as is

a p p l i ca b le in O ct o b e r 2 0 1 2 . Th e sp e c i f i cs m a y c h an g e b a se d o n m a r k e t

c on d i t i o n s o r a n y ch a n g e i n t h e a ss u m p t i o n s t h a t h a v e b e e n m a d e

h e r e . *

Enerco Energy Solutions LLP (www.econserve.in) has offered its

Services and Solutions to several Industrial Clients in going for PV Solar

Power majority of them Industry leaders such as

AND MANY MORE.

If you wish to know how you can use PV Solar at your Plant orCommercial Facility please contact us TODAY !

1 mw pv solar power project - brief analysis

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