Intersolar India Conference November 11 th , 2013
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Intersolar India ConferenceNovember 11th, 2013
FROM NSM TO GRID PARITY MODELS: FEED-BACK FROM EXPERIENCE
SOLAIREDIRECT, GLOBAL PIONEER OF COMPETITIVE SOLAR POWER ENGINEERING AND GENERATION
2006: foundation of Solairedirect2013: in the global top 10 solar power companies with 400 MW in operation/construction and 2 000 MW under development
Innovative integrated business model designed to cut costs and risks : project development, design and EPC, structured financing and legal engineering, O&M, power sales and grid services Mission: making solar power competitive with other sources of energy
Public/private partnerships and local content manufacturing Innovative approach in engaging communities
Presence across 5 continents Competitive bidder in government tenders and PPAs in France, India, South Africa, Chile and the US with prices down to less than 6 Rs/kWh
Revenues of 126 M€ and net profit of 10 M€ (2012) with 250 employees 700 M€ raised in equity and project finance
SOLAIREDIRECT INDIA: SETTING THE STANDARDS IN COMPETITIVENESS AND DOMESTIC CONTENT
Competitive solar power generationDecember 2011: best bidder in the NSM with a 7.49 Rs/kWh bid June 2013: selected in Punjab tender (20 MW)
Domestic content manufacturing First projects (Pokaran, 16 MW) with cells, modules and inverters 100% made in India
Official recognition Inauguration by his Excellency Dr. Farooq Abdullah in June 2013
Innovative offers and business models Private PPAs, hybrid power offers…
FEEDBACK FROM EXPERIENCE: HIGHLIGHTS AND CHALLENGES
HIGHLIGHTS
Record timing for development, construction, grid connection and debt financing
December 2011: selection of Solairedirect India as the best bidder in the NSM auction
April 2012: securing of land and conversion June 2012: procurement of locally manufactured electrical systems
(Schneider Electric), cells and modules (PV, crystalline silicon) August 2012: launch of construction of double 16 MW project by
Solairedirect teams January 2013: completion of grid transmission line February 2013: commissioning of the solar park March 2013: closing of non recourse debt financing with State Bank of
India
Optimal quality standards (joint Indian/European approach)
Record EPC costing (especially BOS)
CHALLENGES
Availability of proper evacuation capacity
Availability/affordability of land in certain states (Punjab)
Maturity of equity markets (matching the risk/return profile of solar generation assets)
BEYOND GOVERNMENT TENDERS: INDIA’S POWER DEFICIT AS A CHANCE TO LEAPFROG
Solar power generation still minuscule in IndiaOnly 1.7 GW installed at FYE 2013 (1.5% of world capacity, 0.2% of India’s total power generation)
Present industry focus: government tenders NSM Phase 2 (750 MW), state programs (with mixed experience such as in Gujarat, Tamil Nadu…)
The real opportunity: India’s growing power deficit Compelling case for an abundant, competitive, quick-to-deploy energy source, displacing imports (diesel…)
How to unlock this extraordinarily huge potential? At around 6 Rs/kWh (escalated), everything becomes possible if…
Global power shortfall(in GW, exc. OECD and China, source: Aggreko)
THE PATH TO GRID PARITY: DEVELOPING NEW BUSINESS MODELS, OVERCOMING CHALLENGES
DEVELOPING NEW BUSINESS MODELS
PPAs with large power users: private (cement, steel, manufacturing, retailers…) or public (municipalities, townships, business parks, utilities…)
Trading on power markets (electricity and RECs)
Energy services (hybrid power offers, rooftop leasing, demand response, mini-grids, smart grids…)
Solar IPP and/or service provider, third-party financing
OVERCOMING CHALLENGES
Competitiveness versus otherwise subsidized energies
Load profile matching
Bankability of revenue models and counterparties
Access to land and power evacuation
Open access regulation and terms
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