PRF - IPV - SS - Pre Feasibility Report - Infinity Mall - Ver 1 3

7/27/2019 PRF - IPV - SS - Pre Feasibility Report - Infinity Mall - Ver 1 3

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Pre Feasibility Report for Rooftop

Solar PV Project

For

Infinity Mall

Latitude:1910 N Longitude: 7250 E Elevation: 10.05 m

Location of the facility: Link Road, Malad (West), Mumbai - 400 064

Purpose of Initiative: Green Initiative

Date:

Created By: PR Fonroche Pvt Ltd24/1, Hauz Khas Village, New Delhi 110 016.


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Table of Content

1. EXECUTIVE SUMMARY 4

2. INTRODUCTION 5

3. ABOUT PR FONROCHE 73.1 About PR Fonroche Solar PV Capabilities 7

4. PROJECT EVALUATION PROCESS 94.1 Pre Feasibility Scope 94.2 Selection of Area of Installation 94.3 Load Profile 114.4 Solar Radiation & Energy Yield Assessment 114.5 Technology Selection 12

4.6 Civil & Mechanical Scope 134.7 Evacuation Feasibility 144.8 Socio Environmental Risks 144.9 General Project Timelines 15

5. FINANCIALS 16

6. RECOMMENDATION 18

7. NEXT STEPS 18


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ANNEXURES

Annexure 1 PV SYST ReportAnnexure 2 Summary of FinancialsAnnexure 3 Financial CalculationsAnnexure 4 Debt CalculationsAnnexure 5 LCOE Calculations


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1. EXECUTIVE SUMMARY

The highlights of PR-Fonroche Pre-feasibility report for setting up solar PV roof top project are

as under

Install a 247.5 kW* Solar PV solution on the rooftop of Infinity Mall by investing Rs. 1.93**Cr funded by Infinity Mall (earning 24.12% RoE), and achieving Rs 597 lacs# savings overthe life of the project while achieving greater energy security.

Table 1 Highlights of Pre Feasibility Report

Sr.

No.Particulars Details

1 Proposed Location of Solar PV roof top project Infinity Mall

2 Likely Capacity of Solar PV project 247.5 kW*

3 System Price Rs. 2.19** Crores

4 LCOE of Solar : LCOE of Grid (Rs/kWh) 3.41 : 6.53

5 Projected Savings over the project life Rs. 597 lacs#

6 ROE (besides above projected savings) 24.12%

7 Estimated Yearly Generation of Power 386 MWh p.a.

8 Project Life Time 25 years

9 Module Technology proposed Poly-Crystalline*Exact capacity can be arrived after receipt of detailed information from the Infinity Mall.**Tentative cost of the project. Final cost will be available in Detailed Proposal.$ Projected savings at fixed price of solar power over the project life, compared to 2% YOY increase in cost ofpresent source of power to the company.#projected savings based on grid power price increasing at various slabs from 2% to 10% YOY is tabled separately in

detailed report below.


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2. INTRODUCTION

BENEFITS OF SOLAR PV INSTALLATION:

PV systems provide Green, Renewable power by exploiting the solar energy radiated from the

sun. Benefits derived from Solar Energy can be summarized as under:

Energy Cost Management:

- One time investment in solar energy acts as long-term hedge against regularly rising

power cost, as there is practically no recurring expenditure thereafter.

- Solar energy can also reduce dependency on ever increasing and expensive diesel for

DG sets.

RPO/CSR Responsibilities:

- Government has made it mandatory that DISCOMs, captive power producers and openaccess consumers fulfill their Renewable Power Obligation (RPO) by using a percentage

of total consumption through solar energy.

- Solar energy can also position a company as a Green & Environment Friendly.

Income Tax Savings:

- According to IT Act one can claim 96% of the total plant and machinery value (as on

companys books) of solar PV plant as depreciation over two years, thereby reducing the

income tax payable.

With this mandate, the team from PR Fonroche visited the Infinity mall located in Mumbai and

conducted an initial site survey. Subsequently, a detailed analysis of the site and available

rooftops were done with help of

- Meteonorm 7 dataset

- Suitable technology for the application

- Suitability of rooftop offered


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3. ABOUT PR FONROCHE

PR Fonroche -- a joint venture between Fonroche Energie S.a.S., (France) and PR CleanEnergy (India) aims to build either On-site or Off-site Solar PV solutions for industrial clients tosolve both power and RPO needs.

Fonroche Energie S.a.S. is a renewable energy project developer from France. With presencein 5 continents, revenues of more than 251 million and over 250 MW of their own project-assets worldwide it is the largest non government backed solar developer in France.

PR Clean Energy is a renewable energy developer from India, with experience in both wind(59MW) and solar PV (20MW).The Group brings with it multiple years of experience and keyrelationships in the Indian Power Sector having been associated with large Indian IPPdevelopers in the past.

PR Fonroche is the Joint Venture between the two to build high-quality solar PV solutions in

India.

Figure 1 Fonroche World Wide Presence

3.1 PR FONROCHE SOLAR PV CAPABILITIES:

PR Fonroche has an accomplished team of professionals at various levels with vast experience

and knowledge in solar power both in India and abroad. The team has significant project

execution and management skills and a thorough understanding of various solar technologies.

The teams key achievements are showcased below:

Overseas:

PR FONROCHE

Joint venture in India

focused building on

solar PV solutions forindustrial clients


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Largest non government backed solar developer in France.

250+ MW of their own project assets worldwide.

More than 60 MW of rooftop projects executed worldwide.

Handled complex solutions for Airport at Nice, France.

India:

Executed a 20 MW solar project in Rajasthan and another more than 20 MW under

pipeline in AP tender.

First to commission 20 MW project in NVVN phase I, Batch - II.

Obtained A-ve (3rd highest grade) credit rating for the 20MW project companies from

CARE

4. PROJECT EVALUATION PROCESS:

A holistic and professional approach has been adopted to analyze and assess the infrastructure

and feasibility of a rooftop solar PV solution with the help of a detailed questionnaire and sitevisit by the technical team and followed by thorough study with help of tools like PVsyst and

database like Meteonorm-7 etc.

4.1 Pre Feasibility Scope

Infiniti Mall is a part of highly reputed K. Raheja group of companies having presence in

business of construction & property development for over 5 decades. Group has developed two

malls in Mumbai, one at Andheri and another at Malad. Infinity Mall, Malad spread over area of

nearly 12,00,000 sq feet is one of the well managed & run mall in Mumbai.

The report summarizes the feasibility of setting up a roof top solar PV project in Infinity MallMalad. They are drawing power form the DISCOM owned by TATA power at a tariff of Rs. 5.50

per kWhr. The grid connection has been stable (less power outages) and they have witnessed

marginal increase in tariff (2% y-o-y) in the recent years.

This Pre Feasibility Report thus evaluates that the existing roof top could be utilized to set up a

247.5 kWp solar PV system. The electricity produced from this roof top system will offset the

electricity consumption from the grid.


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4.2 Selection of Area of Installation

There are three options for setting up a Solar PV plant:

1) Offsite In such type, location of Solar PV plant is away from the existing location.

2) Onsite (Ground mounted) In such type Solar PV plant is installed in available land

within the existing premises.

3) Onsite (Rooftop Mounted) In such type, Solar PV plant is installed on the rooftop of the

unit as there is no sufficient open ground space.

Electricity tariff of Infinity Mall is quite low and they do not have any RPO requirements. Hence

as CSR initiative and also for availing Accelerated Depreciation benefits PRF suggests installing

a 247.5 kWp roof top solar PV system that would provide a fixed cost of power for 25 years.

4.3 Load Profile

The primary data of importance in case of off-grid projects (i.e. without battery backup) is the

current load profile data so as to access the minimum sizing of PV capacity. The load profile of

Infinity Mall is not provided, but their contract demand is 5 MW.

From the data of contracted demand, we can conclude that a solar PV system of size

about 1.2 MW can be integrated with system (With no net-metering policy). However

owing to limited roof space available, we conclude that about 247.5 kWp of solar PV

system can be installed*.

4.4 Solar Radiation & Energy Yield Assessment

Meteonorm 7 - dataset and PV SYST software has been used to assess the solar resource

and energy yield prediction for the site. The results are presented in table 3 below.

Table 3 Solar Resource & Energy Yield Data

Parameters Values Inference

Global Horizontal Irradiance 5.04 kWh/m2/day High Insolation

Temperature @ 10 m height

(Max/Min/Average)28C/24.6C/26.6C

Lower temperature induced power

degradation

Maximum Wind Speed @ 10 m

height5.09 m/sec Nominal Wind Speed

Relative Humidity 68.3% Favors Crystalline1

Rain (Annual Average) 2.33 mm/day Not enough for assuming


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reduction in soiling loss2

Specific Energy Yield 1556kWh/kWp/year

Average insolation in India is 5.0 kWhr/m2/dayand anything above this considered as highinsolation which is good for setting up a Solar PV project. As well, wind speed, temperature

range and humidity are within the nominal range. The detailed PVSyst report is attached at the

end of pre feasibility report as Annexure 1.

All these parameters indicate that setting up a Solar PV solution at the said location will

generate sufficient solar energy.

4.5 Technology Selection

Solar cells are thin wafers of materials (mostly silicon) which convert solar energy into electrical

energy. Each cell produces a voltage of 0.5 Volts. The current generated by these cells depend

on the insolation (solar radiation) falling on them. Cells are interconnected together into different

configuration (series & parallel) are encapsulated inside an enclosure to form what is called a

module. Based on the raw materials used for the production solar cells are classified as follows:

Figure 3 Review of Solar PV Technologies

1 Moisture absorbs lower part of the energy spectrum from sun and hence does not affectworking of crystalline but reduces the output of thin film2 Rainfall of about 4.5 mm/day is required for assuming reduction in soiling loss


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The various criteria involved in the selection of technology for both site specific and non sitespecific factors have been laid down as follows in Table 4 and Table - 5:

Table 4 - Site Specific Criteria

Parameter Infinity Mall Site Condition Favorable Technology

Availability of Space Constraint (Roof Top System) CrystallineHumidity High Crystalline

Ambient Temp. conditions Moderate CrystallineShadows Less Shading Either Presence of Pollutants Very Less Either Load bearing Capacity High Either (But thin film is lighter)

Table 5 - Non Site Specific Criteria

Parameter Values Favorable Technology

Domestic Content Required to avail subsidy Crystalline/AmorphousLong Term Performance Data Required Either Bankability Prime Either Capex Not a Constraint Either


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As seen above in Table 4 & Table 5, Crystalline Module Technology is favorable for

the project for majority of parameters. Thus we recommend using Crystalline Module

Technology.

4.6 Civil & Mechanical Scope

Since the roof type is identified to be flat roof, we can opt between two kinds of installations.

One is directly installing on the roof at a lower height (as shown in left side of Figure 4 below)

and the other is raising the structure at a height above the roof level and then mounting the

panels on the top (as also shown in right side of Figure 4 below).

Lower height installation will cost comparatively less due to reduced cost of structure and will be

easy for operation & maintenance, but roof will not be useable for any other purpose. While

raised height structure installation will be comparatively costlier, roof space can be utilized for

any purpose like laying pipeline etc.

Figure 4 Lower height and Raised height installation options:

We recommend lower height installation as it is easier for operation & maintenance,

besides the advantage in cost. However we suggest that Infinity Mall gives their

preference on the type of installation, considering their likely future requirements.

4.7 Evacuation Feasibility

Not much of information has been provided on the evacuation point. Hence, we assumed that

we will evacuate the power from our roof top solar PV plant at the 3-phase LT panel available in

the Infinity Mall.


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Thus evacuation of solar power will not be of problem and it will be utilized in priority

order set, thus using cheaper solar power first. We will size the cable such that the

transmission losses are kept minimum up to the evacuation point. `

4.8 Socio-Environmental Risks

There have been no socio-environment risks that could be envisaged on the account of the

solar PV installation on the roof-top of Infinity mall.

So from both environmental and social aspects the project is free from any sort of risks.

4.9 General Project Timeline

General project timelines for a Rooftop Solar PV project is as shown in Table 6 below.

Normally, delays are due to approvals, like MNRE approval for subsidy, drawing approval etc.

Table 6 - General Project Timeline

ACTIVITY WEEKS

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Submission of Feasibility Report to Client

Client Finalizes Project Structure

Submission of Final Proposal Client Final Approval

Contract Signing

Plant Design

Application and Sanction of MNRE Subsidy

Equipment Procurement

Plant Construction


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Note: Incase MNRE Subsidy is not applied for and the Client opts for non-Indian modules, the project time will reduce by 9 weeks

and procurement can begin as the final contract is executed


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5. FINANCIALS

PRF offers various funding options for its clients. Considering the size of the project, investmentrequired, various legal issues to be tackled for other options of funding, no major operations &maintenance issues, we recommend that Infinity Mall does the full funding of the project.

As the total energy generated by Solar PV will be consumed by Infinity Mall itself, we havetaken the power cost (Rs 5.40/kWh) as informed to us as the base and done our calculations toarrive at figures, which highlight the savings that Infinity Mall will achieve besides earning13.11% ROE by setting up the Rooftop Solar PV solution.

We are presenting below four projected probabilities of returns and savings to Infinity mallbased on increase of grid power cost from present cost of Rs 5.40/kWh @ 2.0%; 5%; 7.5% &10% YOY.

Table 7 Projected Probabilities of Returns & Savings to Infinity Mall

Parameters Savings @ Grid

Powerincreasing 2%

YOY

Savings @ Grid

Powerincreasing 5%

YOY

Savings @ Grid

Powerincreasing 7.5%

YOY

Savings @ Grid

Powerincreasing 10%

YOY

Likely ProjectCost

2.19 Cr 2.19 Cr 2.19 Cr 2.19 Cr

Levelised Costof Electricity(LCOE) of SolarPV (Rs/kWh)

3.41 3.41 3.41 3.41

LCOE of GridPower (Rs/kWh)

6.53 7.70 8.67 9.64

ROE 24.12% 35.01% 43.63% 51.71%ProjectedSavings overthe project life

597 lacs 891 lacs 1267 lacs 1827 lacs

At an average increase in grid power tariff at 2% YOY, Infinity Mall will save Rs 597 lacs on itspower cost besides earning 24.12% ROE on capital investment of 2.19 Crore for 247.5 kWpSolar PV plant. This savings will increase to Rs 1267 lacs, should the power cost increase by7.5 % YOY and to Rs 1827 lacs should power cost increase by 10% YOY.

We have attached the financial details as Annexure mentioned below:

Annexure 4 Summary of FinancialsAnnexure 5 Financial CalculationsAnnexure 6 Debt CalculationAnnexure 7 LCOE Calculations


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6. RECOMMENDATION:

Taking into consideration various outcomes as described above, we recommend to

Infinity Mall, that it should install Solar PV plant of approximate capacity of 247.5 kWp,funded from its internal resources.

7. NEXT STEPS

Next steps to take this project ahead from our side would be as shown in figure 5 below:

Figure 5 Next Step

a. Discussion and answering all clarifications on pre feasibility report, followed by itsApproval.

b. Entering into an understanding to enable exchange of all required information toenable us prepare technical and financial proposal.

c. Submitting Final Proposal.d. Work Order to PR Fonroche

Thank You

PRF - IPV - SS - Pre Feasibility Report - Infinity Mall - Ver 1 3

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