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SOLAR POWER Power Conditioning Unit (PCU) Industry players supported the cost assumption for good quality inverters. However, they have commented that additional cost of replacement of inverter parts or upgrade of inverter at 12-14 years should be considered. The Commission acknowledged this and has included additional Rs. 5 lakhs/MW for requisite replacement or upgrade. The PCU cost is thereby set to Rs. 35 lakhs/MW. Evacuation cost upto interconnection point (Cables & Transformers) The following costs are included by the Commission under this heading: • cost of transformers and all DC and AC cabling within the solar farm, including DC cabling between solar PV panels and inverters, • junction boxes, • AC cabling between inverter and pooling station, • LT & HT switchgear, • step-up transformer, • breakers, • isolators, • protection relays, • CT, PT, and • Metering. The Commission has accepted the suggestion to include cost of SCADA systems. This cost may be pegged as ~Rs.4-5 lakhs/ MW. Cost of forecasting and scheduling services is very minimal on per MW and monthly basis. It is clarified that this cost component includes costs of evacuation only up to the interconnection point, as defined in the RE Tariff Regulations. While a few stakeholders have mentioned that the developers have to construct overhead transmission lines to the nearest grid sub-station, this cost is beyond the scope of RE Regulations, and may be considered on a project-to-project basis by the procurer. The total cost for evacuation was thereby set to Rs. 44 lakhs/MW. Preliminary & Pre operative expenses SunEdison and NSEFI mentioned module replacement and transmission line in their comments. It was clarified that module replacement costs are included as ‘degradation’ cost under module cost, whereas cost of transmission line is not included as per definition of inter-connection point in the Regulations. Secondly, several stakeholders also commented that IDC should be increased. However, the Commission was of the view that due to the short construction period, IDC of 3% is commensurate. Specifically, highest capital cost is of panels which are installed towards the end of project lifecycle. Meanwhile, Tata Power Solar mentioned that Taxes and Duties are in the range of 1% -2% depending on the taxes as per central and state policy. It was clarified that additional taxes and duties are passthrough in tariff on actual incurred basis, as per Regulation 23 of RE Tariff Regulations. SunEdison and Suzlon stated that mentioned that state specific charges should be included. However, in determining a generic tariff, state specific charges cannot be accounted for. Regarding right-of-way (ROW) costs, these are applicable only if transmission lines are laid beyond the inter-connection point. The evacuation costs only up to the inter-connection point (pooling substation) are included; thus, ROW costs are beyond the scope of generic tariff calculations. Miscellaneous Though foreign companies may have access to lower costs of funds, the Commission in its tariff calculation has considered cost of capital in India, and the debt/equity norms currently prevalent in the country. Each cost component has been analysed in detail, and the Commission has stated that decisions have been made on the best possible information available. Overall Capital Cost As analysed, the Commission, after consultation with industry players, accepted the following changes to the parameters: 1. Exchange rate to be taken as average over most recent six months 2. Module prices to be taken as $0.48/W 3. PCU cost to be taken as Rs.35 lakhs/ MW 4. Evacuation cost to include cost of SCADA/ telemetry, and now taken as Rs. 44 lakhs/MW Thus, the benchmark capital cost norm for Solar PV projects for FY 2016-17 shall be INR 530.02 lakhs/MW, with breakup as seen in table 1. Solar Thermal Power Projects Given the nascent stage of technology for Solar Thermal, the Commission has proposed to retain the benchmark cost without any decrease. The Commission decided to retain the benchmark capital cost for Solar Thermal power projects at INR 12.0 Crores / MW for FY 2016-17 �� S.No. Particulars Capital Cost norm proposed for FY 2016-17 (Rs. lakhs/MW), for Solar PV projects % of Total Cost 1 PV Modules 328.39 61.96% 2 Land Cost 25 4.7% 3 Civil and General Works 35 6.6% 4 Mounting Structures 35 6.6% 5 Power Conditioning Unit 35 6.6% 6 Evacuation Cost up to Interconnection Point (Cables and Transformers) 44 8.3% 7 Preliminary and Pre-Operative Expenses including IDC and Contingency 27.63 5.21% Total Capital Cost 530.02 100% Table 1. 32 energetica INDIA · MAY | JUN16


energetica-india-57_asiapowerweek
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