R.K Srivastava Executive Officer 08.03.16

1. Energy Efficiency & Renewable Energy Management Centre Department of Power Government of NCT of Delhi R.K Srivastava Executive Officer 08.03.16

2. Indian Energy Scenario • [ • Ranks third in total electricity generation after China and USA • Low Per capita daily electricity consumption (2.02kWh) compared to Canada (51.5kWh), USA (39.25kWh) and other developed countries. • Over 400 million people without access to electricity • Third largest coal producer after China and USA , yet net importer of coal • More than 25% of primary energy needs met from imports mainly crude oil and gas • Accelerated development of energy sector to meet sustainable growth aspirations • Endowed with vast renewable energy resources

3. Dedicated Ministry – Ministry of New & Renewable Energy (MNRE) Functional State Nodal Agencies Dedicated Financial Institutions (IREDA) and other FIs in RE Financing Dedicated Institutions (NISE, NIWE, NIRE, SECI) Comprehensive Resource Assessment Wind Atlas / Solar Radiation Mapping Enabling Legislations & Regulations National Action Plan on Climate Change Preferential Tariffs/ GBI/ RE Certificate 15% Renewable Obligations by 2020 Tariff policy RE classified as Infrastructure sector 100% FDI by Automatic Route permitted Renewable Energy Growth Enablers

4. Renewable Energy Growth Enablers • The National Action Plan on Climate Change (NAPCC) envisages a 5 % RenewablePurchase Obligation (RPO) in FY 10 and an increase of 1% everyyear to takeit to 15% by year 2020 • The ElectricityAct, 2003 empowers State ElectricityRegulatory Commissions (SERCs) to specify the percentage of electricity to bepurchased by distribution utilities fromRenewableEnergy Sources • Most SERCs have specified RPO for distribution utilities. In many states this has been extended to captive power units and Open Access consumers • Target of 8% electricityconsumptionfromSolar by March 2022.

5. Financial Incentives Incentives for RE Projects Fiscal Incentives Accelerated Depreciation Tax holidays Tax exemption Concessional Customs & Excise Duty for some of the machinery components General Sales Tax exemption in certain States. Feed-in / Preferential Tariff Capital Grants Generational Based Incentives (GBI) Viability Gap Funding (VGF) R & D Funding Priority Sector Lending 100% FDI for RE

6. Recent Measures to boost RE Development • Renewables accorded Priority Sector Lending status by Reserve Bank of India, RBI: Loans upto Rs. 15 Cr. • RBI stipulates loan for Roof-top SPV to be considered as part of Home Loans • Enforcement of RPO / REC – Recent orders by Appellate Tribunals & Hon’ble Supreme Court of India • 21 States announced policy for Solar Roof-top. • Increase in Coal Cess from Rs. 100 /MT to Rs. 200 /MT. • National tariff policy with objective to promote energy from renewable sources

7. Recent Measures to boost RE Development Amendements to the Tariff Policy • One of the objective to promote energy from renewable sources • Renewable Generation obligation • Bundling of RE with conventional plants whose life has expired. • No interstate Transmission charges and losses to be levied. • Compulsory power procurement from waste to energy projects mandated. • Recognition of Microgrids as means to provideelectricity in remote villages • Compulsory power procurement from microgrids projects mandated.

8. Technical Institutions • National Institute of Solar Energy (NISE) • National Institute of Wind Energy (NIWE) • Solar Energy Corporation of India (SECI) • Alternate Hydro Energy Centre (AHEC) • GERMI • SardarSwaran Singh National Institute of Renewable Energy, (SSS NIRE) • State Level Nodal Agencies

9. The year wise target of RPO as per DERC notification is as follows:

10. OBLIGATION OF DELHI FROM SOLAR POWER By 2017 Delhi will require about 78.85 MW from Solar energy alone (PLF @15%) Generation (MU) = MW * PLF(%) * 24 / 1000 As on 31.03.2015 The total Installed Capacity of Delhi from Solar PV was 8 MW As on today The total Installed Capacity of Delhi from Solar PV is 12.16 MW

11. Delhi Power – Current State • Area of Delhi ~ 1500 sq Km. • Electricity demand in Delhi is around 30,000 Million Units per annum and peak demand was ~6.2 GW in 2015 • 2.5X Bihar, 1.5X Orissa, 2.5X of all the seven north-eastern states put togather, 3X Kolkata* • Peak power demand has grown 34% in last 5 years ** • Highly variable demand, discoms pay more to cover peaks, raising avg. price • Electricity tariffs have risen 7% annually (CAGR) since 2007 • Whereas solar energy prices have been falling 6-8% annually since 1998 • Over 75% of electricity consumed is not generated in state • Not good for Delhi’s energy security; demand in other states growing too • Current share of solar power in Delhi is only 0.2% and total renewable power share is around 1 %.

12. Solar Potential of Delhi • Rooftop Solar potential in Delhi • 2.5 GW estimated potential for Rooftop Solar • Government – 26% • Commercial, industrial – 25% • Residential – 49% • Current installed solar capacity is 23 MWp and 15 MWp is under implementation. • Financing potential and options in Delhi are well above average • Discom networks relatively better than elsewhere in India (low loss/theft) • Very little grid downtime, ideal for solar installations without batteries (“the grid is the storage”) • With the right solar policy and implementation, Delhi can reach 1 GW Solar Power capacity in 5 years

13. Delhi can become a shining example for rooftop solar in India! * Savings for 1 MW with INR 3.5/unit gap = INR 51 lakhs/year; with 0.5% annual output reduction; 5% CAGR in conventional power. • Remember Delhi’s CNG revolution a decade ago? • Delhi has the opportunity to lead a rooftop solar revolution! • 400 MW on Delhi govt. rooftops can save ~200 crores/year • In 20 years, Delhi government can save over 5,100 crores! • Delhi can cut its electricity expense, improve energy security, and shave offover 10% of peak demand by 2025,reducing the need for new PPAs!

14. Rooftop Solar Economics in Delhi • Tariff – and payback time – vary by consumption. Household calculation is for • the 400-800 units/month band. • 1 kW Solar System Parameters • Cost ~INR 65,000Includes panels, inverter, installation • Rooftop space needed ~10 sq. meters (3m x 3.3m) • Generates ~1,300 kWh (units)/year • Households generate electricity worth INR 11.5K/year • Payback time 6 - 7 years* • Commercial/Industrial/government generate electricity worth INR 15K/year • Payback time ~5 years* • After payback, rooftop earnings are pure profit for the next 18-20 years

15. Solar Power – Market Trends * Average annual inflation since 2002 has been 7.2% • Solar energy prices have fallen 6-8% annually (CAGR) since 1998 • Tariffs in Delhi have risen 5% annually since 2002*, 7% annually since 2007 • Both inflation and a declining rupee mean energy tariffs will keep rising • Rooftop solar – an opportunity to lock-in a fixed low price for 25 years • Rooftop solar has found considerable traction around the world • China has already installed over 6 GW of rooftop solar • Germany gets 12 GW from rooftops, over half of its solar energy • California (39 million pop.) has so far installed 3.2 GW on rooftops • In Delhi we have total 200 solar PV plants with aggregate capacity of 23.16 MWp • Chandigarh just installed solar plants on 75 government buildings

16. Example: Okhla Missionary Hospital * Steag Energy Services (India) Pvt. Ltd. ** Factoring in 2.5% annual solar tariff escalation *** Assuming 5% conventional tariff escalation. Holy Family Hospital has 350 beds and over 200 ACs In Feb 2015, put 300 kW rooftop solar plant (900 kW requirement) Signed 20-year PPA with a German firm* for INR 6/unit (vs. 9/unit) ** Zero CAPEX, no government subsidies, used top quality panels Annual savings: 13.20 lakhs *** Savings over 20 years: 3.2 crores All hospitals can do this!

17. Delhi Solar Policy

18. Highlights of the policy • Achieve aggressive yet realistic rooftop solar growth in Delhi • 1.0 GW by 2020 (14% of peak load, 4% of total energy) • 2.0 GW by 2025 (21% of peak load, 7% of total energy) • Zero subsidies from Delhi government • Use market-based approaches and regulations to drive growth • Support all business models: Self-owned or third-party-owned • Promote soft loans, such as from central agencies (IREDA, REC, PFC) and/or solar sector soft loans from SBI, Yes Bank, Axis, ICICI, World Bank, KfW, etc. • Ensure fairness for all stakeholders in the solar ecosystem • Rooftop owners in all consumer segments, Discoms, investors, technology and services providers, non-rooftop solar and non-solar power consumers & manufacturers.

19. Hybrid Net-Metering With Battery Backup Consumer’s Premises PV Modules • Separate AC Solar Energy Meter might not be possible. • Alternatively: Solar Energy Generated =Consump. M. – Net M. Net Meter Consumption Meter PCU GRID Distribution Transformer "Considerations in Rooftop Solar Installations," SESI iCon, 29 Jan. 2016, New Delhi.

20. Delhi Solar Policy HighlightsDrive Net Metering Adoption • Promote net metering for every solar installation at or above 1 kW • Self-consume first. Allow up to sanctioned load to be fed into grid • Parity pricing for exported energy • Monthly credits on exported energy. At year end, discom will pay for surplus solar energy at average purchase cost • Discom responsible for reading/reporting gen, self-consumption, and export • All net metered solar energy generated will count towards discom’s solar RPO • Discoms to streamline net metering, put all requests online with status

21. Delhi Solar Policy HighlightsDrive Net Metering Adoption Group Net Metering • Treat two connections as one for energy accounting purposes • Encourages fuller realization of rooftop potential – solves problemof large rooftop/low consumption • But only if same consumer name, in single discom area • Initially case-by-case approval by DERC. • A joint committee comprising of members from DERC, the state power department, SNA shall be formed to achieve this policy objective.

22. Virtual Net Metering Delhi Solar Policy HighlightsDrive Net Metering Adoption • To give access to the solar net metering facility for consumers who do not have a suitable space in its premises/rooftop for installing a solar system (e.g. residential consumers who live in apartments, consumers with shaded rooftops) • In Virtual Net Metering consumers can be beneficial owners of a part of a collectively owned solar system. • All energy produced by a collectively owned solar system will be fed into the grid through an energy meter and the exported energy as recorded by that meter will be pro rata credited in the electricity bill of each participating consumer on the basis of beneficial ownership. • A joint committee comprising of members from DERC, the state power department, SNA shall be formed to achieve this policy objective.

23. Delhi Solar Policy HighlightsGeneration Based Incentive (GBI) • Solar hasn’t yet achieved grid parity for low-mid range of domestic users • Variable domestic tariff structure (above fixed charge of INR 100 p.m.): • A limited-time incentive will reduce payback time and increase adoption • Generation Based Incentive for 3 years • The minimum eligibility criteria for GBI has also been prescribed at 1000 units (kWh) per annum per kW and shall be capped at 1500 kWh per kWp. • INR 2/solar unit generated • Will reduce payback time by 1-2 years • But no subsidy benefit of lower slab • Maximum cost to state will be small vs. its impact • 50 crores over 3 years on first come first serve basis

24. Delhi Solar Policy HighlightsA Green Fund • Leverage existing Air Ambience Fund in Delhi that’s funded by a cess on diesel • Payment of Generation Based Incentive (GBI) • This amounts to about 38 crores over 3 years • Drive Public Awareness of solar energy and its benefits • Education – technical training /certification programs for solar skill development; this will help create new jobs in Delhi

25. Para No.13.10 – Building bylaws amendment for rooftop solar installations • The height of the module structure carrying solar panels shall not be counted towards the total height of the building as permitted by building bylaws, except near airports where building regulations issued by the Airports Authority of India take precedence. • No approval will be required from concerned Municipal Corporation or other Urban Development Bodies like the DDA for putting up solar plants including any additional system for monitoring the performance of solar plant in existing or new buildings. • The support structure on which rooftop solar panels are installed shall be a temporary structure built in accordance with local building codes.

26. Mandatory Deployment • Para No.11.1 – Mandatory deployment of solar on Govt./Public institution • In order to achieve the annual targets of solar deployment as mentioned in the policy, we have to sensitize the departments especially Delhi Jal Board, PWD, health, Education (Higher & TTE), DTC, DSIIDC, DUSIB and all the Municipal Corporations for initiating appropriate action to deploy solar power plants on various government buildings.

27. Delhi Solar Policy HighlightsRooftop Solar Energy Targets for Delhi

28. Delhi Solar Policy HighlightsAvailable tax breaks, benefits and subsidies * Cost to state per 100 MW will be INR 4.5 crores/year • Accelerated depreciation for commercial/industrial consumers • Custom duty concession and excise duty exemptions • 10 year tax holiday • Provision of bank loan as part of home loan. • Loans for system aggregators at concessional rates from IREDA. • Direct subsidies from the Centre (MNRE) • 30% capital subsidy on projects • Priority to domestic consumers and public institutions • Waiver of State Taxes (Proposed) • Waive electricity tax (5%) on solar units generated for 10 years *

29. Delhi Solar Policy HighlightsDelhi Discoms and Solar Power • Reduces expensive peak demand and average purchase price of power • It’s seen as a new business opportunity • Solar power is unstoppable! Sooner or later discoms will need to embrace it • Solar power, beyond 5-10% of their network’s capacity, eats into their profit, esp. due to cross-subsidies • Discoms have signed long-term PPAs for preset amounts of conventional energy

30. No inspection upto 200 KWp • Delhi Government has recently issued a notification’ • Solar system upto 200 KWp are exempted from certification by Electrical inspector • Self certification will suffice

31. Solar Progress • Since land is a premium commodity, we are exploring other options like unused canals , drains etc. • As per the study the potential of rooftop solar PV Plants in Delhi is around 2200 MWp. • At present Delhi has 23.16MWp grid connected project. • Projects with total capacity of 15MWpare under implementation. • About 7.7 Lakh LPD of Solar Water Heating systems have been installed till 2014. • We are in the process of setting up of 3 MW power plants at the vacant land of I.P. Station. • 1 MW out of this has already been commissioned.

35. Financing

36. Let’s Make Delhi the shining Rooftop Solar City of India!