Policy initiatives in Renewable Energy and Energy Storage: Comparison of

International Scenario and suggestions for Indian Power Sector

MBA- POWER MANAGEMENT

Under supervision of

Deven Makwana

(Assistant Engineer)
Panacean Enterprise Solution Pvt. Ltd.

By

Arnab Sarkar (500066061)

Batch: 2018-2020 (MBA Power Management)

Semester: III

University of Petroleum & Energy Studies

Kandoli Campus Knowledge Acres, PO Kandoli
Dehradun (248007)

1
Policy initiatives in Renewable Energy and Energy Storage:
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Comparison of International Scenario and suggestions for
Indian Power Sector

Report prepared by,

Arnab Sarkar (500066061)

Under the guidance of: -

Deven Makwana
(Assistant Engineer)
Panacean Energy Solution Pvt. Ltd.

2
 ACKNOWLEDGEMENT

It gives me a great sense of pleasure to present the summer internship report on “Policy initiatives in
Renewable Energy and Energy Storage: Comparison of International Scenario and suggestions for
Indian Power Sector”, Undertaken during Third semester. I owe a special debt of gratitude and like to
thank Panacean Energy Solution Pvt. Ltd., for providing me the opportunity to carry forward my
Summer Internship Program in their esteemed company.

I would like to thank Mr. Deven Makwana, Assistant Engineer, Panacean Enterprise Solution Pvt.
Ltd. for his constant support and guidelines which has helped me patch this project and make it full proof
success his suggestions and his instruction has served as major contribution of project.

I would like to thank Dr. Anil Kumar, Dr. Mohammed Yaqoot and Mr. Avishek Ghosal for being
the backbone for successful completion of project and for always providing guidance whenever required.

My sincere thanks to all the teaching and non-teaching staff members of MBA-Power Management
Department for their cooperation and guidance.

Name: Arnab Sarkar

Sap ID: 500066061
Signature: ___________
Date: ……………………

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 EXECUTIVE SUMMARY
As India is a developing mismatch has been a serious increase its generation
rapidly, secure access to issue of India in past few capacity. Country must
modern sources of energy is years. To address this India is consider some added factor
essential as the per capita planning to double its energy like international pressure and
consumption of electricity is output capacity by 2030. moral responsibility towards
also increasing year on year, it Presently thermal based the environment by reducing
has reached to 1149kWh in power being the main source carbon footprint, before
2018 from 717.1kWh in 2008, for quenching its increasing planning of its electrical
which shows and essential for demand as it comprises of infrastructure development.
economic development. Even 62.6% (2,22,927 MW) of total Cause of rising pollution and
though Electricity Act (EA) energy mix having an climate change, have stirred
2003 state electricity for all, installed capacity of the awareness globally.
millions of people in country 3,56,100.19MW. Whereas Carbon footprint and
still lack these basic total renewable energy emission should be reduced
amenities. comprises of 77,641.63 MW globally with the support of
only, out of which wind every country and there is no
India’s electricity sector power plays the major role exception for India. In future
generates roughly 1.2 trillion having an installed capacity of renewable energy is the only
kWh of electricity annually, 35,625.97 MW and the next conspicuous alternative. India
which divides roughly into best is solar having a capacity is also planning to transform
1,000 kWh per person. This is of 28,180.71 MW. its energy mix by ensuring
distinctly low by global majority of the additional
standards; it is roughly one- India is one of the fastest capacity comes from
quarter that of China and one- growing economy having renewable sources. In recent
thirteenth that of the US. economic growth rate of 7- times it has been noticed that
Electricity demand-supply 8%, looking for means to there is a huge dip in tariff in

Per capita consumption(kWh)

1400
1149
1200 1075
957
883.63
1000
778.6 1122
717.1
1010
800
914.41
818.8
600
733.5

400

200

0
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Figure 1 Per capita electricity consumption of India Per capita consumption(kWh)

4
 case of renewable source of which is only 7.78% of energy “moving from megawatt to
energy where as many mix, and in energy generation gigawatt”. Government
thermal power plants is Renewable Energy Source laid down actionable plans
suffering losses due to fuel (RES) having only a minor to make a quantum shift in
supply linkage. It is predicted participation of 3.49% only RES. Several investors and
that cost of renewable source i.e. 25210 MU out of total unit
of energy will become generation 722626 MU. But
stakeholder have shown
cheaper than conventional now the entire scenario has interest and commitment
source of energy, which will been transforming RES with their investment in
address our key issues like consists of 21.8% of total RES sector for taking up
affordability and energy mix. Last 4 years have several projects in several
accessibility, thus it will play seen India’s renewable energy parts of country. A strong
an important role in support of capacity grow appreciably, foundation stone has been laid
our developing economy. after the Prime Minister’s by the government in infusion
inaugural address to 1st of RES in energy mix in
In 2008 renewable energy Renewable Energy Global upcoming years.
source installed capacity is Investor Meet & Expo (RE-
mere 11125MW of total INVEST 2015) articulating
installed capacity 143061MW the future of renewable as

Installed capacity of India(MW)

Figure 2 Installed Capacity of India
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
RES 11125.41 13242.41 15521.11 18454.52 24503.45 27541.71 29462.55 31692.14 38821.51 57260.23 69022.39 77641.63
Hydro 35908.76 36877.76 36863.4 37567.4 38990.4 39491.4 40531.41 41267.43 42783.42 44478.42 45293.42 45399.22
Nuclear 4120 4120 4560 4780 4780 4780 4780 5780 5780 6780 6780 6780
Thermal 91906.84 93725.24 102454 112824.5 131603.2 151530.5 168255 188897.8 210675 218329.9 222906.6 226279.3

5
Renewable energy
targets
Renewable Energy Target :- 175GW
The government had set up a by 2022
visionary target of 175GW
cumulative addition of
renewable energy capacity by
the year 2022 which includes
i) 100GW of solar energy
a. 60GW of Ground
mounted solar
b. 40GW of Rooftop
solar
ii) 60GW of wind energy
a. 60GW of on shore
wind 34% 34%
b. Additional of 5GW of 57%
off shore by 2022
23%
c. And 30GW of off
shore addition by
2030
3%
iii) 10GW from bio power 6%
iv) 5GW of small hydro
power

Biomass Small Hydro Wind Ground mounted Rooftop

With this ambitious, India will
surpass several developed
countries in the field of Green
Energy Producer in the world.
This overambitious target
now looks within the reach of
reality as with the launch of
net metering in country,
several states witnessing Figure 3 Renewable energy target of India by 2022
silent revolution in solar
rooftop addition. As of
September 2018, solar roof
top installed capacity reached
Convention on Climate technology and low cost
a milestone of 33999MW and
its expected to touch 15.3GW Change on Intended National international financeincluding
by 2022. Determined Contribution from Green Climate Fund.
(INDC) states that India will
Seeing the growth in RES
achieve 40% cumulative
capacity addition, confident
Energy capacity from non-
Indian government had made
fossil fuel-based energy
a submission to the United
resources by 2030 with
Nation Framework
support of transfer of

6
Recent schemes Build-Own-Operate
basis, selected through a
Energy Corporation of
India (RECI).
and programmes process of open and
transparent competitive • Creation of Intra State
reverse bidding on the Transmission System in
In continuation of the new VGF amount, with a the States of Andhra
initiatives launched in the provision of reduction in Pradesh, Gujarat,
previous year, the tariff. These projects Himachal Pradesh,
Government has taken up the would be selected through Karnataka, Madhya
following new a process of e-bidding Pradesh, Maharashtra and
projects/schemes during the followed by e- reverse Rajasthan at an estimated
current financial year: auctioning. cost of Rs.8548.68 crore
with Government of India
• Scheme for Setting up • Conversion of Solar contribution from
over 2,000 MW of Grid- Energy Corporation of National Clean Energy
Connected Solar PV India (SECI) From Fund (NCEF) of
Power Projects with Section 8 Company to Rs.3419.47 crore. A
Viability Gap Funding Section 3 Company under similar project at a total
(VGF) Under Batch-III of The Companies Act, 2013 cost of Rs.1593 crore with
Phase II of the National (No. 18 Of 2013) and to contribution from NCEF
Solar Mission. Projects Re-name it as Renewable at Rs.637 crore was
are to be set up by Solar approved earlier by the
Power developers on
VGF for 2000 MW Grid-Connected SPV Power Project
•VGF Under Batch-III of Phase II of the National Solar Mission
•Project set up under BOO model
•Selected through open and transparent reverse bidding on VGF amount
•Provision for reduction of tariff
•E-bidding & E-reverse auctioning

Formation of RECI
•Conversion of SECI to RECI
•RECI became self-sustaining and self generating organization
•It will take up development in all RE sector

Intra State Transmission Line

•Transmission system in states like AP, HP, MP, Maharashtra, Karnaaka, Rajasthan, Gujarat
•Estimated cost of Rs. 8548.68 Cr., contribution from NCEF of Rs. 3419.47
•Similar project for Tamil Nadu is approved having total project cost Rs. 1593 Cr, NCEF contribution
Rs. 637 Cr.

Scaling up of budget for Grid connected SPV power project

•From Rs.600 Cr, budget scaled up to Rs. 6000 Cr., during 12th Five year plan under NSM

Scheme for setting up of 5000MW SPV Power Plant

•5000 MW Grid connected Solar PV Power Project with VGF under Batch-IV of Phase-II of NSM

7
 Government for Tamil Volt Ampere) by installing hydro power, shall be
Nadu in the previous year. over 7800 ckt-kms (Circuit from solar energy by
Kilometres) of transmission March 2022.
• Scaling up of Budget lines in these seven states. The
from Rs.600 crore during project is proposed to be • Renewable Generation
12th Five Year Plan to completed within a period of Obligation (RGO) - New
Rs.5000 crore for Grid three to five years, with costs coal/lignite based thermal
Connected Rooftop and proposed to be met through plants after specified date
Small Solar Power Plants KfW loan (40 percent of the to also
Programme over a Period total cost), NCEF grant (40 establish/procure/purchas
of Five Years up to 2019- percent of the total cost) and e renewable capacity as
20 under National Solar the remaining 20 percent as prescribed by
Mission (NSM). State contribution. Creation of Government of India
an intra-state transmission (GoI).
• Scheme for Setting up of
over 5000 MW Grid- system will facilitate • To allow bundling of
Connected Solar PV evacuation of renewable renewable power with
Power Projects with power from generation power from thermal
Viability Gap Funding stations to load centres plants, whose PPAs have
Under Batch-IV of Phase- expired or plants which
II of the NSM. The Government has also have completed their
approved a Scheme, in useful life subject to
December 2014, for setting up development through
In order to facilitate of 25 Solar Parks, each with competitive bidding.
integration of large scale the capacity of 500 MW and • No inter-State
renewable generation above and Ultra Mega Solar transmission charges and
capacity addition, Cabinet Power Projects to be losses to be levied for
Committee of Economic developed in next 5 years in renewable power
Affairs (CCEA) approved various States and will require (solar/wind) till such
creation of intra-state Central Government financial period as notified by GoI.
transmission system in the support of Rs.4050 crore.
states of Andhra Pradesh, These parks will be able to • Compulsorily
Gujarat, Himachal Pradesh, accommodate over 20,000 procurement of 100%
Karnataka, Madhya Pradesh, MW of solar power projects. power produced from all
Maharashtra, Rajasthan and As on date, 33 parks with the Waste-to-Energy
Tamil Nadu rich in renewable capacity of about 20,000 MW plants in the State by the
resource potential and where in 22 states have been Distribution Companies.
large capacity renewable sanctioned. This will facilitate
power projects are planned, at meeting the objective of
an estimated cost of The Government has also Swachh Bharat Mission
Rs.10,141.68 crore with approved amendments to the for disposal of waste
Government of India National Tariff Policy, 2005 besides generation of
contribution from National positively impacting electricity.
Clean Energy fund (NCEF) of renewable energy sector,
Rs.4056.67 crore. The namely • In view of geological
activities envisaged under the uncertainties and
• In order to promote clearance issues faced by
project includes establishment renewable energy and
of 48 new Grid sub-stations of Hydro projects and also to
energy security, it is promote clean power,
different voltage levels with decided that 8% of total
total transformation capacity Hydro projects have been
consumption of exempted from
around 17100 MVA (Mega electricity, excluding

8
 competitive bidding till (SECI) to apply to the products and materials.
15th August 2022. Registrar of Companies RECI will take up
for converting it into a development of all
• Since India is running one Section 3 company and segments of renewable
of the largest renewable renaming it as the energy namely, geo-
capacity expansion Renewable Energy thermal, off-shore wind,
programmes in the world Corporation of India tidal etc. apart from solar
and there is a need for (RECI). After this, SECI energy.
corresponding grid will become a self-
stability. Regulator will sustaining and self- The Ministry took up an
frame norms for ancillary generating organization. ambitious programme for
services to support power It will engage itself in installation of 1,00,000 solar
system or grid operation owning solar power water pumping systems for
especially with expanding plants generating and irrigation and drinking water
renewable energy. The selling power and in other in different States of the
Government segments of solar sector country during 2014-15.
approved Solar Energy activities, including Under the programme 63436
Corporation of India manufacturing of solar Solar pumps will be installed
through the State Govt. scheme. Subsequently, full crore and with Central
Agencies and 15330 pumps capacity of 1000 MW was Financial Assistance (CFA)
has been earmarked for allocated to 17 CPSUs. of Rs.228 crore. The Solar PV
community drinking water Power Plants on Canal Banks
supply in collaboration with Scheme for setting up over and Canal Tops with 50 MW
Ministry of Drinking Water 300 MW of Grid Connected capacities under each
and Sanitation. In addition, Solar PV Power projects by category have been approved
30,000 solar pumps will be Defence Establishments to 8 States (Gujarat, Andhra
installed through bank loan under Ministry of Defence Pradesh, Karnataka, Kerala,
for irrigation purpose to and Para Military Uttar Pradesh, Punjab,
individual farmers. NABARD Forces with Viability Gap Uttarakhand and West
is the Nodal Agency for this Funding under Phase II/III of Bengal).
scheme. Under the scheme JNNSM in the period 2014-
Banks (Regional Rural Banks, 19. As on 31st December, A new loan scheme to
Commercial Banks etc.) 2015 about 185 MW has been promote rooftop solar power
extended the loans at normal allocated till date under the projects was launched by
interest rates and subsidy scheme, but subsequently 290 IREDA in July 2015. The
component to the MW of available capacity has scheme will provide loans at
beneficiaries. 22,000 nos. of been allocated to defines interest rates between 9.9 and
solar pumps have been organizations/ establishments 10.75 percent to system
installed during 2015-16. under Ministry of Defence. aggregators and developers.

Implementation of Scheme Scheme for Development of Surya Mitra Scheme launched

for setting up 1000 MW of Grid Connected Solar PV for creating 50,000 trained
Grid Connected Solar PV Power Plants on Canal personnel within a period of 3
Power projects by CPSUs Banks and Canal
years (2015-16 to 2017-18).
and GOI organizations with Tops: MNRE launched a
Scheme for Development of The course content has been
Viability Gap Funding in approved by the National
three years period from 2015- Grid Connected Solar PV
Power Plants on Canal Banks Council of Vocational
16 to 2017-18. As on 31st
December, 2015, about 929 and Canal Tops in the country Training as per the National
MW have been allocated to during the 12th Plan period at Skill, Qualification
various CPSUs under the an estimated cost of Rs.975 Framework. As on 30.9.2015,

9
a total of 27 programmes NISE. In 2015-16, 70 conducted against which 27
involving Rs 17 crore have programmes will be programmes have started.
been sanctioned to SNAs by

10
Policy initiatives coordination and allied
functions with related
m height has been
launched. It’s a GIS based
ministries and agencies. It software tool which will
The Ministry has taken a would pave the way for help not only the
number of Policy Initiatives offshore wind energy developers but also policy
as given below: development including, planners.
• National Offshore Wind setting up of offshore
wind power projects and • Restoration of
Energy Policy, 2015 Accelerated
: Under this Policy, the research and development
activities, in waters, in or Depreciation Benefits
Ministry of New & for Wind Power
Renewable Energy adjacent to the country,
up to the seaward distance Projects: After
(MNRE) has been significant harm was done
authorized as the Nodal of 200 Nautical Miles
(EEZ of the country) from to the wind sector due to
Ministry for use of withdrawal of AD with
offshore areas within the the base line. The policy
will provide a level effect from 1.4.2012, it
Exclusive Economic has been restored on
Zone (EEZ) of the playing field to all
investors/beneficiaries, 18.7.2014. This decision
country and the National of the Government has
Institute of Wind Energy domestic and
international. It is planned helped in creating a robust
(NIWE) has been manufacturing base for
authorized as the Nodal to set up the first offshore
wind power project off wind turbines in the
Agency for development country.
of offshore wind energy the Gujarat coast soon.
• Wind Atlas, 2015 • Establishment of
in the country and to carry
out allocation of offshore Launched: A wind Atlas Partnership to Advance
wind energy blocks, having information at 100 Clean Energy (PACE)

National Offshore Wind Energy Policy, 2015

Wind Atlas, 2015 Launched

Restoration of Accelerated Depreciation Benefits for Wind

Power Projects

Establishment of Partnership to Advance Clean Energy (PACE)

Setter Fund

11
 Setter Fund: U.S. and India vide its circular
India have signed an MoU dated 23rd April, 2015 on • The consistent follow-up
to establish PACE Setter ‘Priority Sector Lending: by the Ministry resulted
Funds with a contribution
Targets and into the notification by
of US$ 4 million (INR 25
crores) from each side for Classification’ has issued 22 State Electricity
providing grants for seed revised guidelines for all Regulatory
capital for innovative scheduled commercial Commissions (SERCs)
clean energy projects. The banks to include of twenty States have
PACE Setter Funds has renewable energy in notified regulatory
been formally launched categories of priority framework on net-
on 19th August, 2015 in
sector, in addition to metering and feed-in-
New Delhi.
existing categories. Bank tariff to encourage
In addition to the initiatives, loans up to a limit of Rs rooftop solar plants. Net-
other Ministries and 15 crore to borrowers for metering schemes has
Departments of the purposes like solar based been rolled out in
Government have taken a power generators, majority of States which
number of steps to promote biomass-based power will help in meeting 40
capacity addition in the generators, wind mills, GW rooftop grid
renewable energy sector. micro-hydel plants and connected solar projects.
for non-conventional So far, 16 States namely
• Inclusion of Renewable
energy based public Andhra Pradesh,
Energy Projects in
utilities viz. street lighting Chhattisgarh, Gujarat,
Priority Sector Lending
systems, and remote Haryana, Himachal
Norms of Commercial
village electrification. For Pradesh, Jharkhand,
Banks: In pursuance to
individual households, Karnataka, Kerala,
the initiatives taken by
the loan limit will be Rs Manipur, Punjab,
MNRE, Reserve Bank of
10 lakh per borrower. Rajasthan, Tamil Nadu,

Inclusion of Renewable Energy Projects in Priority Sector Lending

Norms of Commercial Banks

Regulatory Commissions (SERCs) of twenty States have notified

regulatory framework on net-metering and feed-in-tariff

The establishment of Renewable Energy Management Centres

(REMC)

12
 Telangana, Uttar Pradesh, generation, closely Centers. In view of the
Uttarakhand and West coordinating with expected increase in RE
Bengal have come out SLDCs/RLDCs has been penetration, there is a
with Solar Policy envisaged as a primary need to equip the power
supporting grid connected requirement for grid system operators with
rooftop systems. integration of large scale state-of-the-art tools
RE. India is planning to along with real time data
• The establishment of establish one REMC in of RE generation. There
Renewable Energy each region which will be will be a hierarchical
Management Centers connected through connection between the
(REMC) equipped with respective state REMCs. State Load Dispatch
advanced forecasting The Central REMC will Centre, Regional Load
tools, smart dispatching be at the top, which will Dispatch Centre and
solutions, and real time be maintained and run by National Load Dispatch
monitoring of RE National Load Dispatch Centre.

13
Table of Contents
EXECUTIVE SUMMARY ............................................................................................................................... 4
RENEWABLE ENERGY TARGETS ........................................................................................................... 6
Recent schemes and programmes ......................................................................................................... 7
COMPANY PROFILE................................................................................................................................... 20
Panacean Mission and Vision ............................................................................................................... 21
Panacean Services ................................................................................................................................. 21
Area of Clients........................................................................................................................................ 23
Mentors Details & Profile...................................................................................................................... 23
WHAT IS OFF SHORE WIND ENERGY? ................................................................................................. 25
Advantages of offshore wind ................................................................................................................ 27
Challenges .............................................................................................................................................. 27
National offshore wind energy policy, 2015 ........................................................................................... 29
Functions of Nodal Ministry and Nodal Agency ...................................................................................... 32
Key points of the 2015 policy ................................................................................................................... 34
Draft Offshore Wind Energy Lease Rules, 2019 ...................................................................................... 37
Offshore wind global scenario .................................................................................................................. 39
Market and regional highlights ............................................................................................................ 39
Tracking progress ................................................................................................................................. 40
Technology developments .................................................................................................................... 40
Market and policy developments ......................................................................................................... 40
Innovation gaps ..................................................................................................................................... 41
India’s offshore wind potential ................................................................................................................ 42
Offshore wind project feasibility .............................................................................................................. 45
India and Denmark to Work Together in the Offshore Wind Sector ..................................................... 46
Technical Specification for setting up of off-shore wind plant .............................................................. 47
Cost trend of offshore wind turbine ........................................................................................................ 48
Best of breed offshore wind policy .......................................................................................................... 50
Review of the offshore wind energy policies of denmark ...................................................................... 52
Offshore wind energy policy recommendations for india ..................................................................... 53
FLOATING SOLAR .................................................................................................................................... 56
Benefits and Challenges of Floation Solar ............................................................................................... 59

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 Challenges .............................................................................................................................................. 60
The current global market for floating solar ........................................................................................... 62
Market opportunities ................................................................................................................................ 64
Costs of floating solar ................................................................................................................................ 66
Floating solar energy transforming India into a greener nation ........................................................... 68
India stand for Floating solar ................................................................................................................... 71
Floating solar projects in India............................................................................................................. 72
Policy and regulatory considerations ...................................................................................................... 73
ROOFTOP SOLAR ..................................................................................................................................... 76
Why Rooftop Solar? ................................................................................................................................... 78
Types of Rooftop solar PV plant system .................................................................................................. 79
Types of metering...................................................................................................................................... 80
Gross Metering ...................................................................................................................................... 80
BUSINESS MODELS ................................................................................................................................... 81
CAPEX MODEL ....................................................................................................................................... 82
Renewable Energy Service Company (RESCO) Model ....................................................................... 83
Rooftop Leasing (Under Gross Metering)........................................................................................ 84
Power Purchase Agreement (Under Net Metering) ....................................................................... 85
Various models under RESCO .................................................................................................................. 86
Advantages of RESCO ................................................................................................................................ 87
Incentive schemes & Penalties ................................................................................................................. 88
INCENTIVE DISBURSEMENT ................................................................................................................ 88
BID Amount(EMD) & Performance security(PBG) ............................................................................. 88
LIQUIDATED DAMAGES AND PENALTIES .......................................................................................... 88
Penalties due to operation .................................................................................................................... 89
What is a PPA? ........................................................................................................................................... 90
Pros of PPAs include: ............................................................................................................................ 90
Importance of the PPA .......................................................................................................................... 90
Procedure to Get a PPA ......................................................................................................................... 90
Challenges associated with Government/Utility PPAs....................................................................... 91
Challenges associated with 3rd Party PPAs ........................................................................................ 91
Case study .................................................................................................................................................. 92

15
WHAT IS ENERGY STORAGE? .............................................................................................................. 100
Introduction ........................................................................................................................................... 100
Types of Energy Storages ................................................................................................................... 102
Market Drivers..................................................................................................................................... 104
Challenges ............................................................................................................................................ 109
Why do we need energy storage? .......................................................................................................... 112
Energy Storage Can Support the Electric Grid .................................................................................. 113
Energy storage can address the variability of renewable energy sources ..................................... 114
Seasonal Variability ......................................................................................................................... 114
Daily and Hourly Variability ........................................................................................................... 114
Momentary Variability .................................................................................................................... 114
When Is (and Isn’t) Energy Storage Necessary? ............................................................................... 114
Energy Storage Can Capture Excess Renewable Energy .............................................................. 114
Other Strategies Can Also Address Variability .............................................................................. 115
How does energy storage fit into a renewable energy future? ............................................................ 116
What Types of Energy Storage Can Make a Contribution? .................................................................. 117
Current Energy Storage Technologies ............................................................................................... 117
Thermal Storage .............................................................................................................................. 117
Utility-Scale Batteries...................................................................................................................... 117
Behind-the-Meter Batteries ............................................................................................................ 118
Pumped-Storage Hydropower ....................................................................................................... 119
Compressed Air Energy Storage..................................................................................................... 119
Flywheels ......................................................................................................................................... 119
Future Energy Storage Technologies ................................................................................................. 119
Hydrogen.......................................................................................................................................... 119
Synthetic Natural Gas (SNG) ........................................................................................................... 119
Other Technologies ......................................................................................................................... 120
Advantages and drawbacks of current technologies ........................................................................ 120
The first three tenders ........................................................................................................................ 122
Storage tenders pick up in India ........................................................................................................ 122
Battery gigafactories ........................................................................................................................... 124
India’s energy storage mission ............................................................................................................... 125

16
Policy Recommendations ....................................................................................................................... 127
Remove Barriers to Energy Storage................................................................................................... 127
Design the Markets to Fully Value Energy Storage........................................................................... 127
Require Utility Storage........................................................................................................................ 127
ELECTRIC VEHICLES CHARGING INFRASTRUCTURE ...................................................................... 130
.............................................................................................................................................................. 131
How to charge Electric Vehicles? ........................................................................................................... 132
The different ev charging methods ........................................................................................................ 133
Conductive charging of Electric Vehicle ................................................................................................ 134
EV Charging Infrastructure..................................................................................................................... 135
What Should the Charging Infrastructure Mix Be? ............................................................................... 136
Recognizing the charging-capacity gap ................................................................................................. 140
Big energy demand, but where to charge? ........................................................................................ 141
From home to work to public charging ............................................................................................. 143
Current scenario of charging infrastructure in india ........................................................................... 145
Charging EVs With Renewables ......................................................................................................... 146
Policy measures for creating charging infrastructure.......................................................................... 147
Policy, regulations and standards for charging infrastructure ........................................................ 149

17
Table 1 Comparision of offshore wind policies ........................................................................................... 51
Table 2 Offshore wind policy recommendation for India ............................................................................ 54
Table 3 Peak capacity and energy generation potential of floating solar on freshwater man-made
reservoirs, by continent ............................................................................................................................... 65
Table 4 Reservoir size and estimated power generation capacity of selected hydropower dams, and
potential of floating PV to match the dams’ hydropower capacity ............................................................ 65
Table 5 Floating solar projects in India ....................................................................................................... 72
Table 6 Incentive schemes for RESCO model............................................................................................... 88
Table 7 Site specification............................................................................................................................. 92
Table 8 Projected generation ...................................................................................................................... 93
Table 9 Solar generation & consumption estimation ................................................................................. 94
Table 10 Financial Analysis ......................................................................................................................... 98
Table 11 RE & storage integrated project ................................................................................................. 123
Table 12 :Summary of major national-level charging infrastructure programs in selected markets ....... 150
Table 13 Table 6: Summary of schemes in various countries to enable home charging infrastructure ... 151
Table 14 Summary of schemes in various countries to enable workplace charging infrastructure......... 152

18
Figure 1 Per capita electricity consumption of India--------------------------------------------------------------------- 4
Figure 2 Installed Capacity of India ------------------------------------------------------------------------------------------ 5
Figure 3 Renewable energy target of India by 2022 --------------------------------------------------------------------- 6
Figure 5 Benefits of Offshore wind------------------------------------------------------------------------------------------ 25
Figure 6 Schematic diagram of off shore wind --------------------------------------------------------------------------- 26
Figure 7 Exclusive economic zone of India -------------------------------------------------------------------------------- 31
Figure 8 Functions of MNRE -------------------------------------------------------------------------------------------------- 32
Figure 9 Function of Nodal agency ------------------------------------------------------------------------------------------ 33
Figure 10 Wind map of India ------------------------------------------------------------------------------------------------- 42
Figure 11 Bathymetry graph of India --------------------------------------------------------------------------------------- 43
Figure 12 Technologies of offshore wind ---------------------------------------------------------------------------------- 47
Figure 13 Offshore installed capacity of top countries ----------------------------------------------------------------- 51
Figure 14 Floating solar layout ----------------------------------------------------------------------------------------------- 56
Figure 15 Floating Solar PV installed capacity worldwide ------------------------------------------------------------- 62
Figure 16 LCOE for floating solar -------------------------------------------------------------------------------------------- 66
Figure 17 Rooftop solar installed capacity -------------------------------------------------------------------------------- 76
Figure 18 CAPEX model -------------------------------------------------------------------------------------------------------- 82
Figure 19 RESCO model -------------------------------------------------------------------------------------------------------- 83
Figure 20 Solar Generation-Consumption Curve ------------------------------------------------------------------------- 94
Figure 21 Schematic diagram of module mounting structure(side view) ----------------------------------------- 96
Figure 22 Schematic diagram of module mounting structure (top view)------------------------------------------ 96
Figure 23 Visualization of project ------------------------------------------------------------------------------------------- 97
Figure 24 Li-ion price track -------------------------------------------------------------------------------------------------- 105
Figure 25 Prices of different types of battery -------------------------------------------------------------------------- 107
Figure 26 Need of energy storage in power sector ------------------------------------------------------------------- 112
Figure 27 Benefits of smart charger -------------------------------------------------------------------------------------- 136
Figure 28 EV cgarging infrastructure mix -------------------------------------------------------------------------------- 137
Figure 29 EV adaptation projected ---------------------------------------------------------------------------------------- 141
Figure 30 Growth of energy demand ------------------------------------------------------------------------------------- 142
Figure 31 Energy demand --------------------------------------------------------------------------------------------------- 144
Figure 32 Worldwide EV charging infrastructure scenario ---------------------------------------------------------- 147

19
 COMPANY PROFILE
M/s. Panacean Enterprise Pvt. policies, regulations and operation of your
Ltd. (formerly known as guidelines, promotion of system/plant/utility.
Panacean Energy Solution renewable energy, promotion
Pvt. Ltd.), was established in of energy efficiency, and Our team of highly qualified
July 2010 by founder and providing technical and Indian Institute of
Director Mr. Chandresh V. regulatory assistance to Technologies (IIT) Alumni is
Dobariya, alumnus of IIT energy business to succeed. one of the many assets that
Bombay. Hailing from make us capable of delivering
Gujarat, Mr. Chandresh’s Our approach integrates the best technical solution to
Technical expertise and innovative, state-of-the-art our clients. Our integration
Business acumen is one of technics with practical, tailor- with IIT Bombay, Mumbai
those rare combinations made solutions to today’s and IIT Delhi, New Delhi
which have contributed a lot energy challenges. We helps us taking R&D
to the growth of this company. challenges and delivering
Built on principles of optimal solution for benefits
transparency, zero of Indian Power industry.
compromise on quality and provide unique services for
employee empowerment, generating companies, Our corporate office located
Panacean Enterprise Pvt. Ltd. transmission companies, in Mumbai, within five years
is one of its kind. After sailing distribution companies, bulk of span we have grown with
through the early rough tides consumers, power exchange various branches located in
as a start-up, the company not and power system engineers. Daman, Silvassa and Surat to
only sustained itself but also We assist our clients to extended our services.
has made big inroads into the understand impact of
Power Industry. Electricity Regulations by
providing tailor made gist of
Panacean is a specialist the new regulatory
consultancy firm supporting developments on case to case
client in liberalizing energy basis. With nation-wide
sectors, promoting efficient experience of our team we can
and sustainable energy assist you in planning and
markets, designing effective

20
Panacean about our activities. The by providing tailor made gist

Mission and structure of our organization of the new regulatory

is such that we have the right developments on case to case
Vision mix of people from the public basis. With nation-wide
sector, private sector and experience of our team, and
1.1 Mission
educational institutions. also with the valuable
Our Mission is to bring in a
Hence we envision ourselves experience of handling
system where the best of
playing a pivotal role in the overseas projects, we can
minds in Indian Power Sector
Indian power sector assist you in planning and
act in cohesion, facilitate
greater business opportunities Panacean operations of your system.
Panacean Enterprise also
in the Industry, generate Services involved with IT sector.
employment opportunities
and ultimately provide the Panacean Enterprise Pvt. Ltd.,
1.3 Power Solutions
best service to the end Built on the basis of a very
(Services)
consumer. Our style of healthy nexus between
Our services are broadly
Functioning is defined by our members of the power
categorized in Consultancy
mission, which has always industry, experts from the
and Training in areas listed
guided us whenever we were I.I.T’s and its alumni,
but not limited to following:
facing difficult challenges. Panacean Enterprise Pvt. Ltd.
is a one stop solution for all
• Policy making for driving
1.2 Vision your queries related to
growth at State as well as
Our Vision is bringing in training and consultancy
National level
Efficiency, Innovation, services in Indian power
• Compliance management
Automation and bridge the sector. We provide
in implementation of
gap between academic sector customized services for
Electricity Act 2003,
and the power Industry by generating companies,
State Regulations,
effectively coordinating with transmission companies,
National Regulations and
Public Sectors, Private distribution companies, bulk
Policies and hand holding
Sectors and Educational consumers, power exchange
Transmission and
Institutions in India. Our and power system engineers.
distribution planning and
Vision sets a framework for
design
our road map and enables us We assist you to understand
in incorporating several impact of Electricity • Power System Studies

positive attributes as we go Regulations applicable to you and training

21
• Load Forecasting • Optimal power Energy Efficiency
• Reactive Power scheduling for system • Operation and
Optimization operators Management of State
• Fault MVA calculation • Assistance in Energy Designated Agency
and improvements Accounting • Planning and
• GPS/GIS Asset Mapping • Open Access implementation of
and Consumer Indexing, implementation, various schemes of
Street light survey etc. operation and Bureau of Energy
• Operation and management Efficiency (BEE)
maintenance of substation • Resources optimization in • Energy Audit
• Project Management transmission and • Power quality audit
Consultancy for Power distribution business • Load research and
Procurement under Case- • Manpower support in optimization
I and Case-II bidding essential power • Electrical and General
• Project Management distribution services for Safety Audit
Consultancy (PMC) for office as well as fields, • Energy Conservation
various power sector viz., meter reading, Building Code (ECBC)
projects vigilance, etc. Implementation and
• UI (DSM) Management Renewable Energy consultancy
and optimization • Feasibility Study for • Demand Side
• Compliance assistance Renewable Power Management
for Regulatory Generation IT Services
commissions / CEA / • Detailed Project Report • Software for
MNRE /Ministry of preparation Transmission and
Power and other • Design Optimization of Distribution Companies
Government Renewable Power • Regulatory Information
organizations. Projects Management System
• Transmission and • EPC of Solar Power • Asset Management
Distribution CAPEX Projects System
optimization • O&M of Renewable • Maintenance
• Transmission and Power Plant Operation Management System for
Distribution business Distribution and
process management Transmission companies

22
 (Proactive, periodic / • Electricity Department of • Macquarie Infrastructure
routine, break-down etc.) Dadra and Nagar Haveli Management (Asia) Ltd
• Inventory Management (ED-DNH) • Feedback Infra Pvt. Ltd. –
system • Uganda Electricity Mumbai
• Complaint Management Transmission Company • Alembic Pharmaceuticals
System Ltd. (UETCL) Limited.
• Customer Care Centre 4.3 Generation Sector • Paushak Limited.
• Standard of Performance • Essar M.P. Power Ltd.
• Document Management • Ind-Barath Power Panacean is official channel
System 4.4Government Sectors partner / distributer / reseller
• ERP for Power Company • State Designated Agency of various power system
• Energy management (SDA) Daman & Diu software of Siemens like
system • State Designated Agency PSSE, Sincal etc. in Western
(SDA) Dadra & Nagar Region viz., Maharashtra,
Area of Clients
Haveli Gujarat, Daman & Diu, Dadra
4.5 Others Nagar Haveli, Madhya
In the short span of eight (8)
• CLP India Pvt. Ltd. Pradesh, Chhattisgarh, and
years, Panacean has
Mumbai. Rajasthan.
established long term
• Indian Institute of
association with its valuable
clients in different sectors,
Technology, Bombay
Mentors Details
•
1.4 Distribution Sector Reliance Industries, Navi
& Profile
Mumbai.
• Electricity Department of
Daman and Diu (ED-DD) • IXORA Construction Pvt. • Mentor Name: Deven
Ltd., Mumbai
• DNH Power Distribution Makwana
(Hiranandani Group).
Corporation Ltd.
(DNHPDCL) • Alok Industries, Silvassa. Profile: Senior Engineer
1.5 Transmission Sector • Abhijeet Ferrotech Ltd.,

• Maharashtra State Vizag, Andhra Pradesh.

Electricity Transmission • ICRA Management

Company Ltd. Consulting Services Ltd.

(MSETCL) (iMaCS)

• Reliance Infrastructure • Essar Power M.P. Ltd.

Ltd.

23
Analysis of OFFSHORE WIND POLICY &

REGULATION OF INDIA

24
 WHAT IS OFF SHORE WIND ENERGY?
Offshore wind the largest when completed, at that of onshore wind
power or offshore wind 1,200 MW. Other projects are in generation, but costs have been
energy is the use of wind the planning stage, decreasing rapidly in recent
farms constructed in bodies of
including Dogger Bank in the years and in Europe has been
water, usually in the ocean on
the continental shelf, to United Kingdom at 4.8 GW, and price-competitive with
harvest wind energy to generate Greater Changhua in Taiwan at conventional power sources
electricity. Higher wind speeds 2.4 GW. since 2017.
are available offshore compared
to on land, so offshore wind
power’s electricity generation is
higher per amount of capacity
installed and NIMBY oppositio
n to construction is usually much
weaker. Unlike the typical use of
the term "offshore" in the marine
industry, offshore wind power
includes inshore water areas
such as lakes, fjords and
sheltered coastal areas,
utilizing traditional fixed-
bottom wind turbine
technologies, as well as deeper-
water areas utilizing floating
wind turbines.
At the end of 2017, the total
worldwide offshore wind power
capacity was 18.8 GW. All the
largest offshore wind farms are
currently in northern Europe,
especially in the United
Kingdom and Germany, which
together account for over two
thirds of the total offshore wind
power installed worldwide. As
of September 2018, the
659 MW Walney Extension in
the United Kingdom is the
largest offshore wind farm in the
Figure 4 Benefits of Offshore wind
world. The Hornsea Wind
Farm under construction in the The cost of offshore wind power
United Kingdom will become has historically been higher than

25
 Introduction
Due to lower turbulence level country remains unexplored and conditions and water depth,
because of consistent and unexploited. In India, absence of apart from operating wind
smooth flowing wind over the prior knowledge and experience climate conditions. Therefore, in
sea leads to exert a steady load regarding off-shore detail mapping out of
on wind turbine, providing development of wind farms is environmental constraints,
advantageous operating being the major roadblock for its seabed conditions and structure,
condition and environmental development. wind resource, array layout and
issues regarding clean energy is grid connection, turbine
also answered. Production of Among the many challenges to technology for the site as well as
energy will also increase with harnessing the offshore wind installation methods to
the higher wind speed in coastal potential are the varying cost understand the scale of the
area. drivers associated with different opportunity and the capital
technologies required for setting expenditure required to realize
Mainly due to several up any new offshore market. the development.
constraints even with these The cost of an offshore project is
favourable conditions, the immense and would accelerate
offshore wind potential of quickly as a function of seabed

Figure 5 Schematic diagram of off shore wind

26
Advantages of • Less visual impact: As on the higher side because
these sites are located far of various factors like
offshore wind from land, they have less absence of Turbine
visual impact which helps Installation Vessels (TIVs),
with public acceptance construction support
The off shore wind carries vessels, lack of sub-
issues.
certain advantages over the
• Close to load centers: The structure manufacturers,
onshore wind. lack of trained man power
Off shore wind farms are
• Greater area available for usually located near to the etc.
setting up large projects: cities and load centers and • Data: The data required for
Lack of availability of thus transmission losses are the calculation of off shore
suitable site for setting up of minimized. wind potential and
off shore wind project is one • Short gestation period: A identification of suitable
of the primary reasons for mega size and ultra-mega sites is not available. The
finding a suitable alternative size thermal or hydro power data can be divided into 2
and off shore wind emerged project may have a gestation parts:
as a next best option. period of 3-6 years whereas o Wind resource map -
• Higher wind speed than as an off shore wind project This consists of the wind
onshore locations: Wind has a gestation period of 1-2 speed and wind density at
speeds are significantly years, depending upon depth certain levels above the
higher at off shore locations. and distance from shore. sea.
An increase of about 20 per The foundation and o Bathymetric data - This
cent some distance away installation cost in off shore data gives the information
from the shore is not projects are much higher as about the sea depth at
uncommon. compared to that of onshore. various positions.
• Lower turbulence It can be as high as up to 25- After preparing the
intensities: Wind is less 30 per cent of the project necessary wind resource
turbulent at sea than over cost. map and obtaining the
land which results in lower bathymetric data, they are
mechanical fatigue load and Challenges compiled to identify the
potential areas. Th ere are
thus longer lifetime for the
turbines. particular zones like the
• More consistent wind The off shore wind power shipping lanes, military
speed: It is a frequent faces many challenges. exercise areas, dredging
misunderstanding that wind regions, oil exploration
• Cost: The capital cost of areas, exclusive fishing
power generation requires
such projects is very high as zones, areas with underlying
very stable winds. In most
compared to onshore wind submarine communication
wind turbine sites around
power projects. The average cables, and dumping
the globe, in fact, the wind
capital cost in Europe in grounds for ammunition,
varies substantially, with a
2006 was around 2.1 million explosives and other
high occurring rather
€ per MW at 37.5 per cent hazardous material that have
infrequently, and low winds
capacity utilization factors to be considered before
occurring most of the times.
(CUF), however, the finalizing the exact potential
At sea, periods of complete
average capital expenditure sites.
calm are generally
has doubled in UK in the last
extremely rare, and quite • Regulatory and policy
5 years mainly because of
short-lived. Thus, the framework: The Electricity
commodity prices, less
effective use of wind turbine Act 2003 defines various
accessible locations and
generating capacity will be sections like, sec. 3, sec. 61
other bottlenecks (Reuters).
higher at sea than on land.
The cost in India might be

27
 and sec. 86 (1)(e) which
mandate the policy
• formulation and optimal use framework for the shore wind also needs such
of all resources including promotion of the solar dedicated frameworks and
renewable sources of energy. Similarly, “India policies for its promotion
energy. Jawaharlal Nehru Hydrocarbon Vision-2025” and to establish a presence
National Solar Mission is a strategical model for oil in the Indian power market.
(JNNSM) is a dedicated exploration in the Indian
sedimentary basins. The off

ADVANTAGES
• Greater area available for setting up large projects
• Higher wind speed than onshore locations
• Lower turbulence intensities
• More consistent wind speed
• Less visual impact
• Close to load centres
• Short gestation period

CHALLENGES
• Cost
• Inavailability of Proper Data
• Wind resource map
• Bathymetric data
• Absence of dedicated Regulatory and policy
framework

28
 National offshore wind energy policy, 2015
With introduction of this offshore wind energy sector • To raise financial
policy, the Government is by overcoming the barrier by investment in the Energy
attempting to replicate the updating the technology and Infrastructure which will
success of offshore wind law dealing with the setup of lead to the deployment of
power development in the offshore wind firms. offshore wind farms to
offshore wind power harness the wind.
development. Objectives
• To provide incentives to
Vision The Government of India in private players of our
its interest to develop nation as well as
This policy will guide India Offshore Wind Farm has multinational giants of
towards its objective of saving decided to have a Policy that other countries to invest
the climate by switching to will enable optimum and build farms. Thereby,
exploitation of Offshore Wind promoting spatial
renewable energy resources
energy in the best interest of planning as well as the
as generation of electricity is the nation and to achieve the management of maritime
an important element of following objectives. renewable resources.
Government’s National
• To Explore and Promote • To achieve electricity as
Action Plan on Climate
setting up of Offshore well as energy security for
change (NAPCC) announced Wind Farms in the our nation.
in year 2008. Exclusive Economic
Zone (EEZ) of the nation, • To reduce carbon
In consonance with the including the (PPP) emissions by switching to
mandate and responsibility, Public Private Partnership offshore wind energy
the Government’s plans in ideal coastal regions. farms for harnessing the
accelerate the growth of

Project
Energy developmemt
Security
Technical &
manpower
Development
Raise of sector
financial
investment
& incentive
Promote schemes
offshore
wind farm
in EEZ &
Introduce
PPP

29
• wind to generate electricity • To create super skilled • To develop as well as
on a large scale. man force and to generate maintain the coastal
employment in the wind infrastructure and supply
• To advance the energy sector.
indigenization of the chain to support heavy
Energy Technology. • To facilitate the construction &
development of Project fabrication work and the
• To promote research and EPC (Engineering,
development in the Operation & Maintenance
Procurement, and activities in the offshore
Energy Sector by Construction) and
providing aid and Operation & Maintenance wind energy sector.
assistance to with regard to the
organizations. offshore wind industry.

30
 Geographical coverage
Maritime zones: There are two Indian territorial waters - up and up to 200 nm, where under
main marine areas in which to 12 nautical miles (nm) from the international law (United
structures such as offshore wind the baseline; and National Conference on Law of
farms can be built: Seas), India has right to
Exclusive Economic Zone construct structures such as
(EEZ) - beyond the 12 nm limit wind farm installations.

Figure 6 Exclusive economic zone of India

31
 Functions of Nodal Ministry and Nodal Agency

The Ministry of New & country and the National way for development of the
Renewable Energy (MNRE) has Institute of Wind Energy offshore wind farms up to the
been authorized as the Nodal (NIWE) has been authorized as seaward distance of 200
Ministry for use of offshore the Nodal Agency for Nautical Miles (within its
areas within the Exclusive development of offshore wind Exclusive Economic Zone) from
Economic Zone (EEZ) of the energy. Government has paved the base line.

Overall
monitoring of the
offshore wind
development in
the country

Coordination Co-ordination
towards tariff with other
setting and Ministries/Depart
regulatory issues ments

MNRE -
Nodal
Ministry
Issuing
guidelines/directi
Development of
ves for
International
development of
Cooperation
offshore wind
energy
Oversee working
and to provide
necessary
support to the
Nodal Agency i.e.
NIWE for smooth
functioning

Figure 7 Functions of MNRE

32
Figure 8 Function of Nodal agency

Call for proposals for Entering into contract

Upgrade development of with the project
information offshore wind power developers for
database in the projects in the development of
assessed areas specified blocks offshore wind power
under International project within the EEZ
Competitive Bidding of the country.
(ICB)

Capacity building Collect lease from

in the offshore developer/owner
wind energy s as per specified
sector guidelines.
Carry out and also
Creation and coordinate
maintenance of resource
offshore wind assessment and
energy database surveys in the EEZ
and archive of the country.
system

Technical & Demarcation of

financial National offshore wind
evaluation and
review of
Institute of energy blocks
development Wind Energy
(NIWE) –
Nodal
Promoting Agency
indigenous
research for Compliance of
technology Ministry of
development Defence (MoD)
guidelines

Facilitation to
Coordinate and project
monitor technical developers in
activities of the getting clearances
ongoing projects from concerned
Ministries/Depart
ments

33
 Key points of the 2015 policy

Facilitator of Environmental
•NIWE facilitate Clearances and •Incentives & •Declaration of
aspect
open and Intermediate Off- Subsidy restricted area
unbiased •Adjustment to by MNRE &
taker
international RPO & RGO DGoS
competitive •Single window •Environmental •Vulnerability
•Tax holiday,
bidding process. prerequisite Inpact assesment
exemption from
•NIWE can clearences by custom & excise Assessment •Insurance is
refuse NIWE duty •Environmental must
participation on •Clearence from audit
•Generation
ground of state based •Proper
National •2 - Stages of incentives decommissioning
Security approval and •Bundling with
clearence conventional
•Cancellation of power
International lease if
Competitive developer fails Cost Security
Bidding

developers through the to integrate it with the

process, ranges from the national grid.
International tariff, total cost of proposed
• The notification of blocks
project, sharing of
Competitive Bidding production benefits, the rate by the NIWE depends on
of lease of land, etc. clearances from various
• National Institute for Wind ministries such as
Energy will assign the Facilitator of
blocks to the project • Defense,
developers with the Clearances and
• Home, as well as
assistance of an open and Intermediate Off-taker
unbiased international • External Affairs, also
competitive bidding • A single window clearance
process. It is clearly agency, the NIWE has been • Environment & Forests
mentioned in the Policy that authorized for the and
due to the reason of national facilitation of prerequisite • The Department of
security; the National clearances for project Space.
Institute shall have the developers to start working
permission to refuse on their proposed projects. • Then, Developers would
participation of entities. NIWE has also been given have to obtain clearances
the responsibility for from various Ministries
• NIWE has the right not to
intermediate off-take of of State Governments,
provide any explanation
energy from the offshore which will be facilitated by
mentioning specific details
wind energy project in order the National Institute.
to the concerned entity on
to thereafter sell it to various
being questioned about the • The Policy distinguishes
state utilities and
cancellation. The basis of requirements of different
distribution licensees so as
selection of project approvals and clearances

34
 for the clarity of project conventional energy conventional power has
developers into two stages. generation projects; like been provided. This will
A schedule for such that of water or solar assist the development and
clearances shall be issued projects. It will impact the promotion of offshore wind
by MNRE. end costs of the consumer. energy throughout the
Thus, it requires larger country.
• The wide framework of the incentives and better
power purchase subsidies from the Environmental Aspects
agreement (PPA) to be government to become
entered into between Concerning the Farms
competitive and a viable
National Institute of wind option to choose for the
Energy and the developer • Surveys and comprehensive
developers. studies have to be
would be the time frame for
the commissioning of the • Further, proper undertaken,
project , period of the adjustments to the including (EIA)
agreement, commitment to renewable energy Environmental Impact
minimum works program in certificate apparatus and Assessment,
terms of project capacity, regulations determining Environmental audit, etc.,
monitoring and inspection the renewable energy before delimiting the
by MNRE and/or NIWE and purchase obligations are blocks of offshore wind
the specific needed to support and energy farms.
decommissioning program. incentivize the development • Surveys can be conducted
of offshore wind energy in by only those entities with
• The allocation as well as India.
the lease will stand credible track-record and
renounced if the project • The draft of the Policy expertise in the concerned
developer fails to which was released in 2013, field. NIWE, from time to
commence commercial had expressly laid out fiscal time, will issue guidelines
operations by a particular incentives like tax holidays and release them in public
time frame. and exemption from domain, on the
customs duty and also undertaking of
Costs regarding the excise duty, service taxes surveys. The guidelines
to attract investments have to be followed by such
farms entities. Several clearances
from around the world.
from the Ministry of
• The Policy has enumerated • The Policy, however, Defense have to be obtained
various challenges to provides a blanket clause, as a prerequisite to
successful deployment of stating that all incentives conducting such surveys
offshore wind power such as whether fiscal or financial, and studies.
proper resource will be available to onshore
characterization, turbine wind energy projects. Also, • The project developer has
foundation, installation of other exemptions and to submit a comprehensive
turbines, interconnection relaxations and decommissioning program
with utilities and coastal generation-based and site restoration plan
security, etc. incentives would be before starting the
available to developers of construction work. The
• Such challenges and project developer has to
issues would elevate or offshore wind energy
projects. submit a security deposit
increase the cost of the or offer a financial
project for the developers • Similarly, bundling of guarantee to ensure proper
in comparison to other power from offshore wind decommissioning of the
renewable energy and energy farms with wind farm. Programs

35
 require clearances from the developer for ensuring the and/or NIWE about
various ministries like that security of the planning and critical policy
of Environment, Forests and installations. Vulnerability aspects of offshore security
Climate Change. assessments will have to be and defense within
conducted by the project territorial waters of India
Security of the developer its regular and the EEZ.
installations intervals. The project
developer also has to obtain • The (DGoS) Directorate
comprehensive insurance General of Shipping in
• The developer will be consultation with the
accountable for the cover for such installations.
MNRE shall declare the
security of the offshore • A nodal offshore wind farm as a
wind energy project. The agency (Headquarter, ‘Restricted Area.’
Policy has not laid down any Offshore Defense
rules or regulations to be Advisory Group) will give
followed by the project suggestions to MNRE

36
 Draft Offshore Wind Energy Lease Rules, 2019

The National Offshore Wind Indian exclusive economic • The applicants must pay
Energy Policy provides only a zones. yearly lease fee, a sum
basic framework for the calculated for each square
• For cases where the lease is kilometer covered by the
development of offshore wind to be granted by the state lease at the rate of ₹10,000
energy in the country. And now government, the central every year.
the Ministry has opened its new government will be
Draft Offshore Wind Energy consulting with the state • In case of the government
Lease Rules for before agreeing to exercising its power of
additional terms and preemption of energy
comments/suggestions/views conditions. generated, it will have to pay
from various stakeholders. the lessee the price
• Every lessee (person who prevailing at the time of
As per the policy, the offshore has secured the lease) will preemption for the power
wind energy blocks are to be have the exclusive right to procured.
allocated to successful bidders carry out geological and
geophysical surveys, studies • The central government in
through international competing
relating to geo-technical the national interests such as
bidding only and the lease fees survey and investigations, grid stability and security,
are to be collected by the and testing operations by general or special order,
designated nodal agency i.e. required for development of can restrict the amount of
National Institute of Wind offshore wind energy electricity generation by a
Energy (NIWE), Chennai. projects. lessee in a particular
offshore wind generation
• The area covered by a lease area.
The Central Government has
will be specified and the
issued a draft set of rules to terms of a lease will be • All lease fee and other
regulate the grant of leases, initially valid for a period of payments under these rules,
which belongs to the Central five years for prospecting if not paid within the time
Government, to the developers and 30 years for the specified for such payment,
for development of Offshore establishment of offshore
Wind Energy projects along the wind power projects.
coastline of India up to 200 NM • The lease can be extended
(Nautical Miles) within the EEZ on renewal of the lease for
(Exclusive Economic Zone). five years at a time.
• The area covered under a
Key Highlights lease will be 100-500 square
kilometers depending on the
• No project development size of the offshore wind
activity or site survey for energy farm.
calculating potential of
offshore wind can be • For getting lease, applicants
undertaken without a lease. must deposit ₹100,000/MW
for installations and
• MNRE will grant lease for ₹1,000/km2 in case of
all offshore wind projects in prospecting.

37
 Lease is mandatory for project development and site survey

MNRE will grant lease on Indiain EEZ

Central Govt. consult with state before leasing

Lessee have right to carry out geological and geophysical survey

Lease for initial 5 yrs, for prospecting & 30yrs for establishment

Extended on renewal for 5 yrs

Area covered 100-500 Km2

Deposit

• ₹100,000/MW for installations

• ₹1,000/km2 in case of prospecting

Annual lease fee

• Rs. 10000/Km/year

Govt. can restrict generation by lessee

Penalty of 10% in case of non-payment

will be increased by 10
percent for the duration of
non-payment.

38
 Offshore wind global scenario

Global Wind Energy Council scenario makes annual

(GWEC) launched the first installations of 15 to 20 GW Karin Ohlenforst, Director
edition of its Global Offshore after 2025 realistic based on of Market Intelligence at
Wind Report, which provides a growth in China and other Asian GWEC, said: “We are
comprehensive analysis of the markets, amounting to 165 GW standing within reach of a
prospects for the global offshore of new installed capacity truly global offshore wind
wind market, including forecast globally between now and 2030. industry. Many new
data, market-level analysis and This would bring the total countries are preparing to
review of efforts to lower costs. installed capacity to nearly 190 join the offshore wind
GW. revolution, while floating
The report shows that the global offshore wind represents a
offshore market has grown by an The upside scenario captures game-changing
average of 21% each year since additional potential such as the technological development
2013, reaching total installations advancement of floating that can add even more
of 23 GW. More than 4 GW of technology, increased cost volumes in the years to
new capacity was installed each competitiveness and therefore come.”
year in 2017 and 2018, making greater volume in mature
up 8% of the total new markets, as well as the opening
installations during both years. up of new offshore markets. Germany have still not increased
For the first time, China was the Based on this scenario, a more despite government’s
largest offshore market in 2018 positive outlook of over 200 GW awareness. Total installed
based on new installations, new installed capacity between capacity for the region under the
followed by the UK and now and 2030 is possible, BAU scenario is expected to be
Germany. totaling approximately 210 GW 78 GW by 2030.
installed capacity.
The report also provides a Asia: The Asian offshore
market outlook representing a Market and regional market including China is
“business-as-usual” (BAU) expected to become the largest
scenario, which does not highlights offshore region globally with
incorporate further technical Europe: Short-term, the key growth markets including
development or further European offshore market will Taiwan, Vietnam, Japan, India
opportunities for offshore wind, remain flat with few projects and South Korea. Total installed
and an upside scenario, which reaching installation and COD capacity for the region under the
captures the additional potential. during 2020, however, the cost BAU scenario is 100 GW by
competitiveness of European 2030.
The BAU scenario expects offshore will remain a key driver
double-digit growth for the US: First installation of large-
for volume. The Sector Deal in
global offshore market based on scale projects expected between
the UK provides a stable
current policies and expected 2021 and 2023 bringing total
outlook, while volumes for
auctions and tenders. This installations to 2 GW by 2025,

39
 additions declined by 16%, in In 2018, manufacturers
Alastair Dutton, Chair of China they more than tripled to announced turbines with record-
Global Offshore Wind Task 1.6 GW in 2018. level rated capacities ranging
Force at GWEC said: “The from 10 MW to 12 MW, to be
industry is continuing to For the first time, China available for plants
make significant strides on installed more offshore capacity commissioned after 2020. These
cost-competitiveness, with an than any other country (1.6 turbines are expected to deliver
average LCOE of $50/MWh GW), followed by the United the record-low winning bids
being within reach. This Kingdom (1.3 GW) and (USD 55-75/MWh) submitted
achievement increases the Germany (0.9 GW). since 2017 in Germany, the
attractiveness of offshore Nevertheless, offshore wind United Kingdom and the
wind in mature markets annual capacity additions need Netherlands.
where a number of to more than quadruple by 2030.
governments are discussing Despite positive technology Market and policy
long-term climate targets
that, if they are to be
developments and cost developments
reductions, growth must New growth markets for
achieved, must seriously
accelerate for the technology to offshore wind are emerging in
consider the contribution get fully on track with the
large-scale offshore wind can the United States, Chinese
Sustainable Development Taipei and Japan.
make. New offshore markets Scenario (SDS).
represent significant potential In the United States, developers
and if industry and
Technology proposed multiple projects in
governments can work four different states (Maryland,
together, as we have seen developments Long Island, New Jersey and
recently in the case of Recent EU auction results North Carolina).
Taiwan, we can build the indicate cost reductions of
necessary policy frameworks 45-50% in the next five years Chinese Taipei completed an
at greater speed to ensure owing to economy-of-scale auction for 5.5 GW of offshore
growth can be achieved advantages, standardization and wind capacity, and the utility
sooner.” clustering. already signed power purchase
agreements for 1 GW, with the
potential for 10 GW total
installations towards 2030 with
increasing experience and
maturing of the local supply
chain

Tracking progress
Grid-connected offshore wind
capacity additions reached
almost 4.5 GW in 2018, 15%
higher than in 2017. Expansion
shifted from the European
Union to China: while EU

40
revised feed-in tariff announced requirements of wind of electricity from offshore
in late February 2019. technology in offshore wind
conditions, as well as the
In Japan, the parliament has management of large numbers As turbine costs drop in the
approved a new law to define of wind farms will be necessary SDS, interconnection and
project development zones. This to design turbines, systems and balance-of-system take up a
new law is expected to reduce farms. Changes in design higher share of overall
permitting and grid connection architecture and an ability to installation costs. Learning on
challenges, and result in the withstand a wider array of design concepts as well as
deployment of large-scale design considerations including fundamental technology
projects. hurricanes, surface icing, and improvements to power
rolling and pitching moments, engineering equipment will be
The pace of growth in these necessary.
nascent markets could accelerate are also likely to be needed.
the expansion of offshore wind Improved alternative-current Tapping deeper offshore wind
outside of Europe and China. (AC) power take-off systems or resources through floating
These markets face permitting the introduction of direct-current wind turbines
and grid connection challenges, (DC) power systems are also
however, and costs remain promising technologies for The richest offshore wind
relatively high. internal wind power plant grid resource is located in deep
offshore and connection to waters, where attaching turbines
In Europe, accelerated growth shore. to the seabed is not practical.
depends on how offshore wind Floating offshore foundations,
figures in countries' renewable Innovation in installation offer the potential for less
energy plans to achieve the processes for offshore wind foundation material, simplified
newly adopted 2030 targets. In plant installation and
China, faster cost reductions Soft costs for offshore wind take decommissioning, and
need to be achieved to hasten up a substantial share of total additional wind resource at
growth, as the government aims installed costs, and together with water depths exceeding 50 m to
to reduce renewable energy interconnection they are a key 60 m. Several regions (e.g. the
subsidies. challenge for reaching SDS cost US or Japan) have a low share of
goals. Offshore wind farms also their resource in shallow waters.
Innovation gaps need to incorporate high levels Floating foundations may also
A great potential for cost of resilience to stronger wind be attractive for mid-depth
reductions, or even technology regimes and meteorological projects, where saturation of
breakthrough, exists in the conditions off shore, particularly onshore or near-shore potential
offshore wind sector. In to mitigate the impact of long- or the possibility of
particular, innovation is needed term exposure to seawater. standardizing floating
in installation processes and foundation designs and do not
foundation designs. An Reducing cost and risk of need heavy-lift vessels to
improved understanding of the transmission and distribution transport foundations.

41
 India’s offshore wind potential

India has already made steady venturing into the sea with little starting to develop offshore
progress in the development of modification and upgrade of the wind.
onshore wind power projects onshore technology and
over the past few decades and experience. The additional It may seem too early to consider
now has the 5th largest industry aspect would be the foundation offshore wind for India as the
in the world. Onshore wind that is extensive as well as costs for such projects are still
capacity now represents over 70 requires great technological very high in comparison to other
% of the overall installed advancement. India’s onshore forms of renewables, however,
renewable electricity capacity wind industry can be an offshore wind industry in
and as of May 2014, this totaled complemented by the India will, most likely, take at
21,264 MW. Despite the success development of offshore wind least a decade to mature after the
of this industry and a coastline projects as much of India’s first pilot projects. It is,
of over 7,600 km, India does not supply chain that services the therefore, pertinent to take the
first steps now in preparation for

Figure 9 Wind map of India

yet have any offshore wind onshore wind industry can the larger scale roll out of
capacity. With so much benefit through the supply of projects in future years. There is
capability and potential, India equipment and components to still a lot of onshore wind
need to harness this type of offshore wind farms. India potential that has not yet been
renewable resource and form a should continue to develop exploited, however there are a
considerable contributor in its onshore wind projects while also few issues which will limit how
energy mix. This is attained by much can be developed; the

42
availability of land in areas of infrastructure that are close to utilize indigenous technologies
good wind resource is reducing these offshore wind sites. This, from some of the manufacturers
and the land that is available however, is something that will within the country, potentially
often has a high cost of rent or need to be taken into account leading to lower offshore wind
purchase thus increasing the when selecting suitable offshore costs in India than, for example,
onshore wind farm’s costs. sites. The transport of the in Europe. As yet, no Indian
Secondly, if land can be found equipment to the site is manufacturer has directly
with good wind resource at an comparatively straightforward developed an offshore wind
acceptable cost it may often be as this is brought to site by turbine as there is no market
far from an electricity grid or vessels from the port which is unless they look further afield
center of population and end closest to the point where the where there is already strong
users. The electrical capacity of structures have been fabricated. competition. Suzlon of India
a reasonable size onshore wind The cost of offshore wind is acquired the German company
farm will be more than the local
grid can support and so the
electrical network will need to
be significantly upgraded or a
new, dedicated high voltage line
installed, leading to high power
evacuation costs. A final, but
often important, point is that the
transport of equipment (turbine
towers and blades in particular)
to an onshore site is often very
challenging along Indian roads.
Taking all of these barriers into
account, the amount of onshore
wind will be limited and its costs
may increase. A key benefit of
offshore wind, in comparison to
onshore, is that wind speeds are
higher and less turbulent which
leads to higher capacity factors
of the plant and so increased
revenues from the sale of
electricity. Considering the
aforementioned points from an Figure 10 Bathymetry graph of India
offshore perspective; there are currently greater than that for Repower (now called Senvion)
vast areas of sea and seabed with onshore wind due to the nature in 2009 and this branch of the
suitable wind speeds that do not of operating environment and group provides them with an
have land use restrictions. In the added complexities of the offshore wind capability with
many cases there are coastal task, but is expected to reduce in many turbines currently
communities with plenty of end the future. It is likely that an operational and ‘field-proven’
users and suitable grid Indian project would aspire to elsewhere in the world. This

43
could be the start of a globally already has a strong oil and gas begins to develop and actively
competitive Indian offshore industry with a variety of vessels work towards overcoming these
wind industry. As the offshore and capabilities within the obstacles. Any potential,
wind technology is relatively country. These could be offshore wind project developer
mature, only a portion of the cost mobilized to work on the first seeking to develop a project in
reductions for the offshore wind offshore wind project, but India will not do so unless the
industry come from specialist vessels are not going conditions are right and they can
technological advances and to be developed until they are ultimately make a profit. The
innovation. Some of the biggest required. The vessels that cannot industry will therefore be self-
contributors are the economies be provided by India’s maritime controlling in this respect. For
of scale and maturity of the industry will be mobilized from this reason, an initial feasibility
supply chain; both of which other countries (such as Europe) study may show that a pilot
cannot be achieved without an and brought to India. Whilst project is not currently
industry in India. Therefore, if there are a number of concerns commercially viable, however
there is a wait in the to address before the sector can from the interest that has already
development of the industry for develop, there are good been generated from the
better technological maturity opportunities for offshore wind possibility of this industry’s
within the international markets, in India. India has its own formation, it is widely believed
only a small cost reduction country specific obstacles to that the time is right.
benefit is likely to be achieved. clear that are not common to
Similarly, to the cost reductions, other, more developed offshore
the supply chain will not industries in other countries.
develop without a demand being These issues cannot therefore be
present from the industry. India tackled unless an industry

44
 Offshore wind project feasibility

The first offshore wind projects remote coastal locations that are expected in December 2017 that
in India will most likely be being considered for the initial the government would auction 5
developed in the states of pilot and demonstration gigawatts of offshore wind
Gujarat and Tamil Nadu. Each projects. energy capacity by March 2019.
of these states has a vast No tender has been issued so far
coastline with many potential The Solar Energy Corporation to that means.
locations for possible projects, of India (SECI) plans to hold the
however, as was previously first ever offshore wind energy The Ministry of New and
discussed in section, there are a auction in the country for a 1- Renewable Energy (MNRE) had
number of considerations to take gigawatt project in the western last year issued an Expression of
into account before choosing a state of Gujarat. Interest from offshore wind
site for development. energy developers. It
SECI recently signed garnered immense interest from
When determining the broader an agreement with the Gujarat domestic as well as foreign
areas of search for potential sites government to set up India’s developers. Prominent
and determining the feasibility first offshore wind energy participants from India included
of specific sites, the following project. The agreement was Sterlite Power Grid, Greenko,
areas should be assessed: signed during the biennial Mytrah Energy, Inox Wind,
Vibrant Gujarat Global Summit Suzlon Energy, and ReNew
• Resource assessment 2019. SECI will be responsible Power Ventures. Some of the
for the entire auction process, as
• Bathymetry well-known foreign participants
well as procurement of power included Orstead, Alfanar, Deep
• Seabed and geological from the resulting project. The Water Structures, EON Climate
conditions project would bring an estimated & Renewable, Terraform
• Environmental Rs 15,000 crore ($2.1 billion) Global, Macquarie Group, Shell,
considerations investment to the state of and Senvion.
Gujarat.
• Electricity companies
and grid In preparation for the impending
India has very ambitious first-ever offshore wind energy
• Ports and harbors targets for its currently non- tender, the MNRE
existent offshore wind energy recently issued Draft Offshore
The initial studies that have been
market. It has announced plans Wind Energy Lease Rules for
conducted to analyses the
to have an installed offshore comments and suggestions from
offshore wind energy resource
wind energy capacity of 30 stakeholders.
in India indicate that there is
gigawatts by 2030, with 5
likely to be a viable, exploitable
gigawatts being installed by
resource available. A key issue,
2022. Progress towards this goal
however, is the availability of
has been highly dismal. As
grid to many of the relatively

45
 India and Denmark to Work Together in the Offshore
Wind Sector

The Union Cabinet has develop and sustain a highly assessments with a focus on the
approved a cooperation efficient wind industry, onshore and offshore wind;
agreement between the Ministry measures to ‘ensure high quality hybridization of wind, solar,
of New and Renewable Energy of wind turbines, components, hydro and storage technologies,
of India (MNRE) and certification requirements, integration of renewable energy,
Denmark’s Ministry for Energy, forecasting, and scheduling of testing, R&D, and skill
Utilities, and Climate in offshore offshore wind. development.
wind energy.
The Indo-Danish Centre of
The cabinet has approved a letter Excellence in Integrated
of intent (LoI) to establish an Renewable Power would work
Indo-Danish Centre of on renewable energy resource
Excellence for renewable energy
in India. The agreement was
signed in March 2019 in the
national capital, according to the
Press Information Bureau.

The objective of the agreement

is to promote cooperation
between the two countries in the
field of renewable energy with a
special focus on offshore wind.
The areas of cooperation would
include technical capacity
building for management of off-
shore wind projects, measures to

46
 Technical Specification for setting up of off-shore wind
plant

Technology for offshore  Off shore wind farms in water  Monopile base is used for
turbines same as that of onshore depths from 0.8 to 220 m with water up to 30 m depth, whereas
turbines and their operational monopile, jacket, tripod and turbines installed on tripod or
life also same (~ 20 years). floating technologies. steel jacket base for 20-80 m
depths.
 The rated capacity of turbines  At different depths, turbine
higher than that of onshore - in installations require different
range of 3 MW-5 MW. type of bases for stability.

Current Technology Under Demonstration

Figure 11 Technologies of offshore wind

47
 Cost trend of offshore wind turbine
Offshore wind costs are
typically measured in terms of
the levelized cost of energy
Capex (LCOE). This is determined by
dividing the discounted costs of
the wind farm (including
financing costs) by the
discounted amount of energy
generated over the lifetime of
the project.

Opex The levelized cost is driven by

five factors:

• Capex – the discounted

capital expenditure required
to build the offshore wind
farm
• Opex – the discounted
Decex operational costs associated
with running the wind farm
LCOE • Decex – the discounted
decommissioning costs
• Finance – the cost of raising
the funds to build the
project.
• Net energy production – the
Finance discounted amount of MWh
generated taking into
account any electrical losses
to the grid connection point.
The capital cost of offshore wind
turbine systems is significantly
higher than land-based systems
because of the higher cost in
foundations, installation,
Energy operation and maintenance, and
Production complex logistics. The offshore
environment is significantly
more uncertain and difficult than
onshore and thus more costly

48
and risky. The offshore • wind turbine and its wind projects is the turbine;
environment involves personnel installation, installation costs make up about
traveling to and from offshore 14% of the total capital costs.
• substructure and its
turbines, and this increases installation, and For offshore wind projects, the
equipment and time costs as well cost of installation is higher,
as insurance costs due to • electrical systems and its approximately 20% of the total
installation (inner array
increased risks. Offshore work costs, and the costs of building
cables, export cables, and
involves increased risks of substation) the foundations account for
strong winds which affect the another 20% of capital costs. For
amount of time available for The capital cost is modeled with offshore wind, operation and
maintenance and installation hypothetical 170-MW wind maintenance costs make up a
which in turn influence capital farm composed of 50, 3.4-MW larger proportion of the overall
and operation costs. Offshore turbines. The turbine data components of the COE. This is
environments are corrosive to available in open source are likely due to the costs of
electrical and structural considered (Repower) for this accessing offshore wind farms
equipment and require turbines study. The farm considered in and maintaining turbines in
to be marinized with cathodic shallow water of 10–15-m water operating condition. The
and humidity protection. Capital depth with a 5-m diameter components considered are
expenditures for offshore wind monopile with 100-mm thick substructure, transition piece,
projects depend on marine and 30-m penetration into wind turbine, installation of the
vessel day rates which are seabed. The cost of various above three components, inner
uncertain, and offshore components, operation and array and export cables laying,
foundations require more steel maintenance cost, is considered and offshore substation
for jackets and pilings than as per existing wind farms and installation
onshore foundations. modified to Indian conditions,
which is explained in detail in
The components that affect the subsequent sections. The
capital cost of wind turbine are primary capital cost for onshore

49
 Best of breed offshore wind policy
Key Factor UK Germany Denmark Netherland

Government Ambitious and very Strategic, long- Specific but Initially ambitious
plans for specific plans for new
term ambition for modest target or plans but several
expansion of capacity launched
offshore wind plans for postponements and
offshore wind through successive
capacity. (10 GW expansion delays
energy tender rounds by 2020 and 25
GW by ‘30)
Tender model Multisite tender rounds Open-door Single site auction Multisite/open
State appoints zones procedure State defines site selection auction
investor finds and Investor finds and Limited dialogue Investor finds and
proposes sites within proposes sites with tenderers proposes site
these zones
Award Criteria Call for tender after First come, first Lowest offered Lowest offered tariff.
negotiation served tariff Prequalification
Based on developer’s Permission to be done and who pass
project proposal and achieved for site in the stage are called
capacity advance for negotiation
Time frames for Fixed but enough Flexible and Fixed and tight Fixed, but moderate
use/ headroom spacious (establishment to (construction to be
establishment be completed 2- initiated before 3
3years from years from award)
awarding)
EIA Performed in Performed along Performed before Performed before
continuation of tender with application call for tenders auction
round. Financing is Financed by Financed by state Financed by investor
split between state and investor
investor
Subsidy Renewable obligation Fixed, uniform Fixed tariff price Fixed tariff defined
settlement for certificates (ROC) on tariff (at least12 defined by winning by winning tender
sale of electricity top of the price of years ahead). tender (10-15 years (15 years ahead)
electricity (until 2037)
Additional tariff ahead) Addition for distance
Extra credits for
for OWF till 2016 to shore
offshore wind Extension of Ceiling to total
subsidy period on subsidized
great distance to production
shore and depth
Supplemental Exemption of Sprinter tariff over Keep-open penalty Easy depreciation
incentives electricity buyers of and above Delay penalties rules for investments
(penalty, sprinter Climate Change Levy additional tariff for Keep-open penalty.
bonus, etc.) Lease payment for sites OWF (declining on Bank Guarantee to
taking into be revoked in case of
operation delays
after2015) Innovation bonus

50
 Grid connection Investor is in charge of Grid connection Free connection; Investor bears
and negotiates the cost costs borne by the state performs, expenses of grid
of grid connection with TSO –based on finances and connection. Plans to
network operator developer meeting guarantees get the TSOs bear the
conditions cost.
Regulatory Individual permission Approval by Streamlined one- Not one-stop shop
procedures and procedures, multiple regional state stop shop
planning approvals needed. agencies, some by
(Almost single Federal (Almost
window) single window)
Table 1 Comparison of offshore wind policies

Figure 12 Offshore installed capacity of top countries

51
 Review of the offshore wind energy policies of Denmark
Denmark has been a pioneer of route then the responsibility lies Only downside is not adopting
exploiting wind energy for more with developer. tradable green certificates
than 2 decades which has mechanism to give the project
resulted in one of the highest Financial Incentives- turbines developers a premium on the
wind power penetration levels in connected to the grid – premium power generated and instead
the world, close to 25-30 %. and incentives–income tax adopting the steady, albeit lower
rebate for Cooperative owned revenue generating mechanism
Consent Procedures-Danish wind turbines to diversify of feed-in – tariffs.
Energy Authority (DEA) acts as ownership.
the single window agency for Summary-Nevertheless,
consent– sites—tender— Offshore wind farm projects Denmark has one of the most
award—negotiation—permit— happened with tendering and progressive policy initiatives to
assessment--complete negotiated tariff way. encourage the growth of
application with the EIA— Impact of these policy offshore wind energy sector in
License initiatives- Single Window their country.

Grid Connectivity-TSO–If Clearance(state)-Tendering

through a tender-guaranteed Policy-Environment
financial compensation if the assessment-- Grid
TSO is unable –If open door Connectivity(state)

52
Offshore wind energy policy recommendations for India

Facility Description
‘Single Window Clearance’ procedure UK has a ‘one stop shop’ procedure to ease the
procedural difficulties for project developers.
Denmark, Germany also have a one-stop procedure
Transparency in financial burden for project The fee, lease, administrative charges etc. need to
developer know to developers in advance so that there are no
surprises while executing the project
Securing pioneering risks Both fixed feed-in tariffs and renewable energy
certificates, implemented in a secured
environment, have been shown to attract the
required investments when combined with legally
enforceable purchase contracts for typically 15 to
20 years. India needs to adopt these inducements to
motivate developers to look at offshore wind
energy
Risk hedging schemes Offshore wind energy projects, at least during the
initial stages, are risky in India as these are new
technologies. Developers will face challenges to
get Insurance cover on their own, especially from
private insurance agencies. For the first ‘wave’ of
developments, the public sector insurance
companies (with overt support from the
Government) could play an important role
Anti-speculation clauses Imposing deadlines – accompanied with penalties
or loss of the concession – for follow-up action, for
instance by requiring that the developer start
building activities within a limited period of time
after the required permissions have been granted.
This will ensure that there are no ‘squatters’ on
potential wind farms sites as seen even in on-shore
wind energy
Sprinter bonus for project completion Bonus for early completion and commissioning of
offshore wind farms needs to be included to
incentivize developers to accelerate completion of
projects. Currently, in EU, there’s a penalty for
delay in completion but no bonus for completing
work ahead of schedule. Since ‘Risk’ and ‘Reward’
go together, policy makers need to announce
sprinter bonus for developers
Automatic Environmental clearances before Environmental clearances significantly delay many
inviting bids infrastructure projects in the country. Hence the
Government need to accord environmental
clearances to the proposed project sites even before
inviting bids from interested developers

53
 Accurate data to predict the offshore wind energy Currently, accurate data on offshore wind energy
potential potential in the country is unavailable. Wind
energy potential in a site is an important parameter
for obtaining funding from financial institutions for
a project developer. Hence efforts should be made
to obtain accurate data
Building evacuation infrastructure by Government Important, and probably as expensive, in an
offshore wind energy project is to develop
evacuation infrastructure from the seas to the grid
on-shore. As this will be prohibitive for any
developer, Government could consider building
the evacuation infrastructure to encourage growth
of offshore wind energy sector
Legally enforceable payment mechanism Poor financial health of most of the State
Electricity boards (SEBs) delays in realizing
payment (that run into several million US dollars)
will adversely affect the working capital and cash
flows of project developers forcing them to take
additional loans at high interest to keep the
business going. Hence, legally enforceable
payment mechanism needs to be put in place to
give confidence to investors and project developers

Table 2 Offshore wind policy recommendation for India

54
Analysis of FLOATING SOLAR PV POLICY &

REGULATION OF INDIA

55
 FLOATING SOLAR

As the name suggest floating Floating solar is a new and projects are getting developed
solar means an installation of exciting application of solar now. China’s 150 MW project
solar panel on a floating PV technology. commissioned recently in
platform on a water body. To Conceptualized to overcome Huainan, south Anhui
achieve this, the solar panels land availability issues, the province is believed to be the
are mounted and fixed to technology has started largest floating solar project in
floating supports, which are gaining traction worldwide the world¹.
then joined together to form a and is expected to grow
larger solar array. This sits on strongly over the coming
the water surface and is years. Annual capacity Floating solar can be
anchored to the shore or water addition is expected to grow deployed on various types of
bed. The electricity produced from an estimated 1.1 GW in water bodies including
by the installation is routed to 2018 to 4.6 GW by 2022. industrial water ponds,
inverters, usually stationed on irrigation or drinking water
land, and the energy can be China is the leading
international market followed reservoirs, quarry lakes,
fed into the grid or used aquaculture ponds, canals and
directly at the site of by Japan and South Korea.
After years of small-scale dams. Most of the deployment
production with no difference is on fresh water until the
to an installation on dry land. installations, large MW-scale
challenges associated with

Figure 13 Floating solar layout

56
marine environment (high • Water conservation – water through
turbulence and salt mist Covering water surface evaporation.
corrosion) are overcome. with solar modules is
believed to reduce loss of
There are number of drivers
that make floating solar
attractive:

• Solution to land scarcity Land Scarcity

and alternative land uses –
Floating solar negates the
need for expensive and
time-consuming land
acquisition process; Utilization of
Utilization of existing existing grid
grid infrastructure – infrastructure
Floating solar projects
located near consumption
centers and/or on
reservoirs of hydro- Higher
electric dams can utilize generation
existing transmission
infrastructure;
• Higher electricity
generation – Cooling
effect from water surface Water
conservation
on the panels results in 3-
5% more power output as
compared to ground-
mounted solar;

57
 Floating solar is a good idea
By using solar panels in a reservoirs alone.1 In addition can provide an increase in
floating installation, clean to the optimal use of water light reflection from its
energy can be generated while surface area, a floating surface compared to a
conserving precious land and installation with solar panels standard installation surface.
water, even converting the provides shading to the water, All the while, water acts as a
water surface area to valuable limiting the growth of algae natural coolant to the panels
and profitable real estate - and helping to reduce for higher efficiencies and
indeed analysts believe that evaporation, which is of improved overall energy
400,000 km² can be unlocked particular benefit in hot yield. With no need for power
by floating applications and climates or where water is tools or heavy machinery,
that there is a TW-scale scarce. At the same time, solar on water is easy to install
opportunity on freshwater water, despite its low albedo, and can be deployed quickly.

Natural
coolant

Ecological Increase in
Benefits reflection
Coversion of
water surface
as valuable
asset

Clean energy Easy

installation

58
 Benefits and Challenges of Floation Solar

There is a wide range of Evaporation control: A limiting the growth of plants

different advantages to the floating solar array naturally and the production of oxygen
installation of a floating PV causes shading of the water necessary for fish and other
system, ranging from surface, and with it, a drop-in water fauna, as well as
improvements in performance water temperature. This can impeding the decomposition
to ease of installation: be advantageous, when of organic matter in the water.
employed on reservoirs, as the This becomes something of a
Use of otherwise redundant amount of water lost through vicious circle, as without the
areas: A floating system evaporation is reduced, warming effect of sunlight,
makes use of existing water although the rate of the water cools. Cold water is
bodies where there is no evaporation is directly linked more dense than warmer
competing use (e.g., to the size of area covered by water, so it sinks and the
recreational). This makes it the floating platform. overall oxygen levels in the
ideal for use in countries and water decrease. The low
areas with limited land. In Of course, shading by the amount of oxygen available
water bodies such as floating system can be then inhibits the continued
reservoirs, floating PV can compared to other factors functioning of the water
also be a secondary use of the such as the coverage of the ecosystem, endangering the
water real estate, generating surface by algae. A floating aquatic life present in the
extra income and giving the system however, usually water body. Reducing algae
water body an additional covers only a fraction of the blooms on the water has
purpose. water surface meaning that further operational benefits in
warmth from sunlight, and commercial water bodies
Improved yield oxygen continues to be where filters can rapidly
performance: Warm distributed through the water
temperatures inhibit a solar become clogged and require
body by its natural convection frequent cleaning or
panel’s ability to work at its cycles. Dependent on the
most efficient level. The replacement. Here, floating
footprint of the floating solar creates less favorable
surrounding water has a platform, there may also be
cooling effect on a floating conditions for the growth of
space between panels where algae blooms, so with less
system of around 5-20% light hits the water, keeping
depending on location, local algae present, there is a
the impact of widespread reduction in the need for
climate and float structure shading to a minimum.
used. Combined with maintenance and replacement
advantages in terms of Restricting algae growth: of parts.
reduced shading and soiling, Although algae can be of Less prone to external
the lower operating benefit to the water shading: Positioning of the
temperatures of a floating ecosystem, too much can array in the middle of a body
system increase its energy cause problems. High levels of water also situates it further
generation capacity compared of algae restrict light from shade-causing objects
to a land-based installation. penetration through the water, such as buildings and trees.

59
This reduces the amount of cleaning the panel surface chosen and how the balance of
time that the array is shaded should never be too far away! system (BOS) components
and so increases the array’s are to be installed. Indeed, in
exposure to sunlight for Installation: Dependent on the test projects that REC has
higher energy yields. the system chosen and carried out to date, the
location, a floating PV system installation time for floating
A reduction in panel soiling: compares favorably with the systems remains similar to
With the solar array situated time taken to install a comparably-sized ground-
on the water surface, further similarly-sized ground-mount mount installations.
from sources of dust and dirt, installation. Without the need
the installation sees a to drill or carry out other Challenges
reduction in soiling. groundwork, the total system
Still at a nascent stage, near-
Especially in dry and dusty preparation time can be
shore solar PV is conceptually
areas, the increased distance reduced compared to a
similar to deployment on
from land means that dust and terrestrial installation.
inland water bodies. But the
dirt are not so easily trapped Conversely, more time is
offshore environment poses
by the panel, reducing the taken with securing each
additional challenges:
need for surface cleaning. single panel to an individual
Indeed, on such installations, float. Of course, much is Costs: Floating solar
a plentiful supply of water for dependent on the platform installations may require

60
additional costs than more hundreds or thousands of design and technological
traditional types of solar panel solar panels. Unlike these solutions may be required,
installations. Because this is a types of installations, the drawing on the rich
relatively new technology that average residential solar panel experience of existing marine
requires specialized system has roughly 20 panels. and offshore industries.
equipment and more niche Installation companies and Compared to the open sea,
installation knowledge, it developers installing floating coastal areas such as lagoons
typically requires a higher solar projects today are not and bays are relatively calm
price tag than installing doing so on small-scale and thus more suitable for
similar-sized solar farms on installations. floating PV, however,
rooftops or solid ground. But installations must still be able
as with traditional solar panel Water surface conditions are to withstand waves and high
systems, the costs of installing much rougher (larger waves winds. On the other hand,
floating solar panels are and higher winds) some lagoons and bays can be
expected to continue to drop • Mooring and anchoring environmentally sensitive,
as the technology advances. become even more critical which may limit the
amid large tidal movements possibility for floating solar
Applications: Floating solar deployment in certain areas.
installations don’t work for and currents
just anyone. The majority of • Salinity tests the durability The biggest uncertainties are
floating solar installations are of components long-term reliability and cost.
large-scale and provide power Marine-grade materials and
for utility companies, large • The accumulation of components are critical for
communities, companies, or organisms on equipment (“bio these installations, which
municipalities. If you’re fouling”) can interfere with must withstand rough
looking into solar for your functionality. weather. Operation and
home, then it makes much maintenance costs for
more sense to install a rooftop The harsh near-shore nearshore PV are also
or ground-mounted system. environment imposes expected to be higher than for
Those that invest in floating stringent requirements on inland installations.
solar often have access to a floats, anchors, moorings, and
large body of water to fit components. Alternative

61
 The current global market for floating solar

The first floating PV system deployment concentrated in megawatts have been

was built in 2007 in Aichi, Japan, Korea, and the United installed in China; more are
Japan, followed by several States, the floating solar planned in India and
other countries, including market spread to China (now Southeast Asia. The first plant
France, Italy, the Republic of the largest player), Australia, larger than 10 MWp was
Korea, Spain, and the United Brazil, Canada, France, India, installed in 2016, and in 2018
States, all of which have Indonesia, Israel, Italy, the world saw the first several
tested small-scale systems for Malaysia, Maldives, the plants larger than 100 MWp,
research and demonstration Netherlands, Norway, the largest of which is 150
purposes. The first Panama, Portugal, Singapore, MWp. Flooded mining sites in
commercial installation was a Spain, Sweden, Sri Lanka, China support most of the
175 kWp system built at the Switzerland, Taiwan, largest installations. With the
Far Niente Winery in Thailand, Tunisia, Turkey, the emergence of these new
California in 2008. The United Kingdom, and markets, cumulative installed
system was floated atop a Vietnam. Projects are under floating solar capacity and
water reservoir to avoid consideration or development annual new additions are
occupying land better used for in Afghanistan, Azerbaijan, growing exponentially.
growing grapes. Colombia, Ghana, and the
Kyrgyz Republic, as well as As of mid-2018, the
Medium-to-large floating other countries. cumulative installed capacity
installations (larger than 1 of floating solar was
MWp) began to emerge in Recently, plants with capacity approaching 1.1 gigawatt-
2013. After an initial wave of of tens and even hundreds of peak (GWp), the same

Floating Solar PV installed capacity

1200
1098
1000

800

600 586
512
453
400

200 66
1 11 133
1 2 4 6 67
55
0 0 0 1 0 1 2 2 5
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Annual installed FPV capacity Cumulative installed FPV capacity

Figure 14 Floating Solar PV installed capacity worldwide

62
milestone that ground- existing transmission biodiversity, navigation, and
mounted PV reached in the infrastructure and the livelihood or recreational
year 2000. If the evolution of opportunity to manage the uses.
land-based PV is any solar variability through
indication, floating solar combined power output, have Marine installations are also
could advance at least as started to appear (First-ever appearing. The deployment of
rapidly, profiting as it does hydropower-connected floating solar technologies
from all the decreases in costs floating solar operation, near shore may be of strong
attained by land-based PV Montalegre, Portugal). In interest to populous coastal
deployment. Most of the these installations, special cities. Indeed, it may be the
installations to-date are based attention needs to be paid to only viable way for small
on industrial basins, drinking possible effects on the island states to generate clean
water reservoirs, or irrigation downstream flow regime solar power at scale, given the
ponds, but the first from the reservoir, which is limited availability of land
combinations with typically subject to suitable for ground-mounted
hydropower reservoirs, which restrictions related to water PV installations.
bring the added benefits of management (in case of
better utilization of the cascading dams), agriculture,

63
 Market opportunities

There are more than 400,000 estimate of potential peak reservoirs. The situation from
square kilometers (km2) of capacity was derived using one reservoir to another can
man-made reservoirs in the the efficiency levels of differ significantly, however.
world (Shiklomanov 1993), currently available PV
suggesting that floating solar modules and the surface area There are individual dams on
has a theoretical potential on a needed for their installation, each continent that could
terawatt scale, purely from the operation, and maintenance. theoretically accommodate
perspective of the available Then, to estimate potential hundreds of megawatts or, in
surface area. The most electricity generation, the some cases, gigawatts of
conservative estimate of capacity estimate was floating solar installations.
floating Solar’s overall global multiplied by the expected Examples of such reservoirs
potential based on available specific energy yield, with are provided in table 4. While
man-made water surfaces local irradiance used hydropower and solar
exceeds 400 GWp, which is alongside a conservative capacity do not provide the
equal to the 2017 cumulative assumption of an 80 percent same type of power
installed PV capacity performance ratio. These production (solar typically
globally. Table 3 provides a estimates use very low ratio of has a lower capacity factor
summary of the man-made coverage of the reservoir. In and generates variable
freshwater bodies supporting reality, many existing projects power), the table compares
this very conservative implemented on industrial or the surface needed for a PV
estimate. Considering global irrigation reservoirs cover plant having the same peak
irradiance data on significant much more significant capacity as the hydropower
water bodies, and assuming 1 portions of the reservoirs, reservoir.
percent to 10 percent of their after environmental studies
total surface area as used for confirm no expected impact
floating solar deployment, an on the aquatic life in the

64
 Floating PV Possible annual energy
Number of
Continent Total surface potential(GWp) generation(GWh/year)
water
area Percentage of total Percentage of total surface area
bodies
available(km2) surface area used used
assessed
1% 5% 10% 1% 5% 10%
Africa 101,130 724 101 506 1,011 167,165 835,824 1,671,648
Middle
East & 115,621 2,041 116 578 1,156 128,691 643,456 1,286,911
Asia
Europe 20,424 1,082 20 102 204 19,574 97,868 195,736
North
126,017 2,248 126 630 1,260 140,815 704,076 1,408,153
America
Australia
4,991 254 5 25 50 6,713 33,565 67,131
& Oceania
South
36,271 299 36 181 363 58,151 290,753 581,507
America
Total 404,454 6,648 404 2,022 4,044 521,109 2,605,542 5,211,086
Source: SERIS calculations based on the Global Solar Atlas and Lehner et al. (2011a, 2011b).
Table 3 Peak capacity and energy generation potential of floating solar on freshwater man-made reservoirs, by continent

Percentage of reservoir
Reservoir Hydro area required for floating
Dam/reservoir Country
size(km2) Power(GW) solar to match dam’s
hydropower Capacity(%)

Bakun Dam Malaysia 690 2.4 3

Lake Volta Ghana 8,500 1.0 <1
Guri Dam Venezuela 4,250 10.2 2
Sobradinho “Lake” Brazil 4,220 1.0 <1
Aswan Dam Egypt 5,000 2.0 <1
Attaturk Lake & Dam Turkey 820 2.4 3
Narmada Dam India 375 1.5 4
Table 4 Reservoir size and estimated power generation capacity of selected hydropower dams, and potential of floating PV to
match the dams’ hydropower capacity

Source: Bridge to India report “Where sun meets water – Floating solar market report”

65
 Costs of floating solar

Capital costs: The capital systems in other regions could higher expected energy
costs of floating PV are still vary significantly. yield—conservatively
slightly higher or comparable estimated at 5 percent, but
to those of ground-mounted As reflected in figure 16, potentially as high as 10–15
PV, owing chiefly to the need Japan remains a region with percent in hot climates.
for floats, moorings, and more relatively high system prices, However, the main
resilient electrical while China and India achieve differentiating factors are
components. The cost of much lower prices, a pattern system price (a floating
floats is expected to drop over that can also be seen in system is considered 18
time, however, owing to ground-mounted and rooftop percent more expensive),
better economies of scale. solar systems when compared insurance costs (0.4 percent of
to the global average. the floating system price vs.
Total capital expenditures for 0.3 percent for ground-
turnkey floating PV Levelized costs of electricity,
mounted systems), and
installations in 2018 generally including sensitivity
analysis: Calculated on a performance ratios (5 percent
range between USD 0.8–1.2 higher for floating systems).
per Wp (figure 16), depending pretax basis, the levelized cost
on the location of the project, of electricity (LCOE) for a The LCOE calculation
the depth of the water body, generic 50 MW floating PV represents only a break-even
variations in that depth, and system does not differ analysis—that is, if the tariff
the size of the system. China significantly from that of a were set at the LCOE, the net
is the only country that has yet ground-mounted system. The present value of the project
built installations of tens to higher initial capital would be zero.
hundreds of megawatt-peak in expenditures of the floating
size. The costs of smaller system are balanced by a

Figure 15 LCOE for floating solar

66
Equity investors would If the performance ratio of a base case decreases to USD
presumably require a higher floating solar project is 5.3 cents per kWh, almost
tariff from the off-taker to assumed to be 10 percent equivalent to the LCOE of the
make the project higher than that of a ground- ground-mounted PV project.
economically viable for them, based project (instead of 5
assuming debt financing was percent), a sensitivity analysis
accessible. shows that the LCOE for the

67
 Floating solar energy transforming India into a
greener nation

With growing conversations offer a viable option, as they Bengal. This could prove to
around sustainable living and are highly compact and can be be a major help in
climate change, transition to installed on bodies of water, transforming India into a
renewable energy sources for eliminating the need for large renewable energy rich nation,
power generation has the open spaces. As they are by achieving the target of 100
focus of considerable interest. mostly built over dams, GW of power from solar and
Owing to the debilitating another advantage they offer 227 GW from renewable
effects of fossil fuels and over conventional land-based energy sources. In addition to
other conventional sources on power plants is the multi- that, the government’s
the environment, solar energy purpose use of hydro and solar increased focus on solar wind
has become the most viable for electricity generation. hybrid power plants can help
and sought after alternative. India, with available large floating PV plants to make up
The demand for clean water sources, has presented a for the land deficit in
electricity, especially, huge opportunity for floating waterbody-rich states like
generated using renewable solar. An evidence to this is Kerala.
energy sources is on the rise. the floating PV plant
Here again, solar energy has commissioned at Wayanad, Using a much younger
emerged as the clear Kerala, which being one of technology, vastly different
frontrunner in these the most impressive solar from that used for ground-
conversations and is rapidly power projects in the country mounted power plants, a
proving itself to be the is a case study for every floating PV plant has a unique
lifeblood of the future. renewable energy enthusiast. edifice. The floating structure,
However, developing utility- With a power generation known as a Pontoon, is sturdy
scale solar power plants capacity of 500 kilowattpeak, enough to hold and support
require a considerable amount the floating plant has the the heavy load of the solar
of open space to be installed, ability to withstand variations panel easily, while having
which is not always available in water level of up to 21 enough buoyancy to stay
for the purpose. In fact, in meters between summer and afloat on water. It is held
India, with dense cities and monsoon. securely in place by a
limited agricultural area, permanent structure known as
availability of land has In India, it is estimated that mooring, which prevents it
become a challenge for as much as 300 gigawatt from moving around while
developing solar power (GW) of floating PV power floating on the water. With
plants. plants can be set up by help of anchor mooring, the
utilizing just 10 per cent to Pontoon can also be fixed in
This is where floating 15 per cent of water bodies place with reference to a point
photovoltaic (PV) power in states such as Kerala, on the bottom of waterway,
plants come to our rescue and Assam, Odisha, and West thereby eliminating the need

68
to connect it to the shore. The Higher energy output energy output, to the amount
underwater cabling, on the of 10 per cent to 12 per cent
other hand, is designed to be Several studies carried out to more than conventional
shock and/or leakage proof, gauge the output of floating systems.
and forms an important link PV systems have proven that,
between the grid and the solar comparatively, there is a Water savings
panels. significant increase in the
amount of energy generated As a result of evaporation, a
This technology has given by such plants. This increase large quantity of water is lost
floating PV power plants an is considered to be a result of from water bodies daily. The
installation of floating PV
plants helps reduce this loss of
water significantly.
Furthermore, cleaning
conventional solar power
plants require significant
amounts of water, which
Council on Energy,
Environment and Water
estimates to average around
Alternate Energy at 7,000 to 20,000 liters of water
Dams per megawatt (MW). If this
wasn’t a cause of concern
itself, the cleaning cycles in
these power plants average
more than once a week.
Water Saving
However, for floating PV
systems, the water used to
clean the plants goes directly
Higher Energy
Output back into the water body, and
can be reused as many times
as necessary. This helps in
conserving vast quantities of
water, while bringing down
the costs incurred in cleaning
edge over on-ground and the reduced operating them as well.
roof-mounted solar system, temperature of solar modules
and a huge potential to because of the natural cooling Alternate energy at dams
become a dominant source of properties of water. In Floating power plants can also
renewable energy in India. addition, floating PV systems be installed on dam-based
are less prone to dust when reservoirs, utilizing their huge
There are three very clear installed on huge water
advantages that a floating water bodies. Not only does
bodies. As a result, they can this help boost the usage of
solar plant offers: perform more efficiently, and solar energy during the day,
have a significantly higher

69
but the water that is conserved Obligation. Several other technological advancements,
during that time can also be countries such as Australia, along with the increase in
utilized during the night to China, Japan, UK, and others local pontoon manufacturing
generate more power, helping have already been utilizing and enabling policies, indicate
reduce dependency on fossil floating PV plants for that the cost of such systems
fuel-based plants. generating power. will fall significantly in the
near future. This is expected
Taking into account these Currently, the only concern to be a huge boon for floating
advantages, the Ministry of that the industry faces is the PV plants, leading to a vast
Power had indicated in its high cost of the equipment, increase in their power
draft of the National Tariff since despite the system being capacities, allowing as much
Plan released in 2016 that it land neutral, the anchoring, as 10 GW to 12 GW of power
might implement a policy to underwater cabling, pontoon, to be generated from floating
encourage the use of cleaner and maintenance of the PV plants, and leading the
sources of energy, known as system are quite expensive. country to a greener and
Renewable Generation However, the current wave of sustainable future.

70
 India stand for Floating solar

India today is the fastest the country. The success of Pradesh, Maharashtra, West
growing market for renewable this project led to various Bengal, Kerala amongst
energy in the world. The other institutions and others.
country boasts of an government bodies consider
ambitious renewable energy the installation of floating Floating solar is still in
target of 175 GW by 2022 of solar plants atop water bodies. nascent stages of
which solar comprises 100 Over the next few years, development in India. After
GW. The country has been several small and mid-sized the recent commissioning of a
making rapid strides in this floating solar power plants 2 MW project at
area. As such, it is evident that came up across the country. Visakhapatnam, cumulative
floating solar would become a The current largest capacity is now 2.7 MW.
technology for consideration installation is a 500 KW plant MNRE intends to add 10 GW
by policy makers in the installed at Banasura Sagar of floating solar as part of its
country. reservoir in Wayanad, Kerala. 227 GW renewable energy
target for 2022². SECI has
The first floating solar power Plans are also underway to invited EOI for developing 10
plant in India came up in the develop such facilities across GW of floating solar projects
year 2014 in Kolkata. This 10 the country by state on BOO basis. Table 5 shows
KW floating solar plant was government bodies. Tenders commissioned and upcoming
funded by the Ministry of have been issued for floating solar projects in
New and Renewable Energy developing floating solar India.
(MNRE) as a pilot project in across reservoirs in Uttar

71
Floating solar projects in India
Project developer/ procurement Year of
Location Capacity(MW)
authority commission
Commissioned
Arka Renewable Energy College Kolkata 0.01 2014
Chandigarh Renewable Energy and
Chandigarh 0.01 2016
Science & Technology
NTPC Kayamkulam 0.10 2016
Kerala State Electricity Board Wayanad 0.50 2017
Indian Oil Corporation Panipat 0.10 2018
Greater Visakhapatnam Smart City
Visakhapatnam 2.00 2018
Corporation
Total 2.75
Under development
Maharashtra State Electricity
Ujjani dam, Solapur, Maharashtra 1000
Distribution Company Limited
JSW Solar Across India 250
SECI Rihand dam, Uttar Pradesh 150
NTPC Kayamkulam, Kerala 22
Lakshadweep Energy Development
Lakshadweep island 10
Agency
West Bengal Power Development
West Bengal 5
Corporation Limited
Bhakra Beas Management Board Bhakra & Nangal dam, Punjab 5
NLC Andaman & Nicobar Islands 5
Greater Visakhapatnam Municipal Meghadrigedda reservoir,
3
Corporation Visakhapatnam
Tirupati Smart City Corporation Kailashgiri reservoir, Chittoor,
4
Limited Andhra Pradesh
Greater Visakhapatnam Smart City Meghadrigedda reservoir,
15
Corporation Limited Visakhapatnam
NTPC Kayamkulam, Kerala 70
Total 1,539
Table 5 Floating solar projects in India

72
 Policy and regulatory considerations

Currently, even in countries • Feed-in tariffs that are • Unique aspects of

with significant floating solar higher than those for permitting and licensing
development there are no ground- mounted PV (as that necessitate
clear, specific regulations on in Taiwan, China) interagency cooperation
• Extra bonuses for between energy and water
permitting and licensing of
renewable energy authorities. This also
plants. Processes for the certificates (as in the includes environmental
moment are assumed to be the Republic of Korea) impact assessments for
same as for ground-mounted • A high feed-in tariff for floating PV installations.
PV, but legal interpretation is solar PV generally (as in • Water rights and permits
needed in each country. In Japan) to install and operate a
some countries, drinking • Extra “adder” value for floating solar plant on the
floating solar generation surface of a water body
water reservoirs or
under the compensation and anchor it in or next to
hydropower reservoirs are the reservoir.
rates of state incentives
considered national-security program (as in the U.S. • Tariff setting for floating
sites, making permitting more state of Massachusetts). solar installations (which
complex and potentially Supportive governmental could be done as for land-
protracted. policies: based PV, for example,
through feed-in tariffs for
As highlighted in this report, • Ambitious renewable small installations and
floating solar deployment is energy targets (as in tenders or auctions for
Korea and Taiwan) large ones).
expected to be cost-
• Realization of • Access to existing
competitive under many
demonstrator plants (as in transmission
circumstances and therefore infrastructure:
the Indian state of Kerala)
not to require financial • Dedicated tendering o How will this be
support. Nevertheless, initial processes for floating managed?
projects may require some solar (as in China, o Who will be
form of support to overcome Taiwan, and the Indian responsible?
state of Maharashtra) o What
barriers associated with the
• Openness on the part of permits/agreements
industry’s relatively limited will be required?
experience with this the entities managing the
water bodies, such as • Special considerations for
technology. hydro-connected plants:
tenders for water-lease
contracts (as in Korea). o Whether the
So far, a number of countries hydropower plant
However, for most countries
have taken different owner/operator is
hoping to develop a well-
approaches to floating PV. allowed to add a
functioning floating solar floating solar
Typical policies currently
segment of a wider solar PV installation
supporting floating solar
market, the following policy o Whether the
installations can be grouped
and regulatory considerations hydropower plant
into two categories: owner/operator is
need to be addressed:
allowed to provide a
Financial incentives: concession to a third

73
 party to build, own, to hydropower plant o Rules of dispatch
and operate a floating operation and coordination of the
solar plant weather events that solar and the
o Management of risks can affect the solar or hydropower plants’
and liabilities related hydropower plants outputs.

74
Analysis of ROOFTOP SOLAR RESCO MODEL

POLICY & REGULATION OF INDIA

 ROOFTOP SOLAR
Indian rooftop solar market framework has failed to meet
has grown rapidly at a CAGR changing needs of the market.
of 88% in the last five years. Some much needed initiatives
Capacity addition in the 12- for encouraging DISCOM
month period ending participation (SRISTI Policy emphasis has been primarily
September 2018 is estimated scheme), improving quality on reducing cost of rooftop solar
at 1,538 MW. Total installed standards and consumer through tax and financial
capacity is estimated to have awareness are still in draft incentives but has failed to meet
reached 3,399 MW. There stages and/ or yet to become changing needs of the market
have been a number of effective. The market growth
government policy initiatives varies highly across different
supporting the rooftop solar consumer segments due to
market. The emphasis has differences in grid tariffs,
been primarily on reducing regulatory compulsions and
cost of rooftop solar through availability of financing. C&I most financially through
tax and financial incentives in consumers dominate the rooftop solar. Falling cost
the form of capital subsidies, market with 70% (2,376 means that savings can be as
cheaper debt, accelerated MW) share of total installed high as 20-60% across India.
depreciation and tariff top- capacity. These consumers Carbon emission reduction is
ups. Costs have come down pay higher than average grid also an important driver for
dramatically but the policy tariffs and stand to gain the many C&I consumers.
Capacity(MW)

1138
1200 998
1000
800
556
600
337
400 169
38 79
200
0
Figure 16 Rooftop solar installed capacity
2012 2013 2014 2015 2016 2017 2018
Public sector consumers lead to better growth PE investors are interested in
account for 15% of total prospects for this market. developing OPEX portfolios.
installed rooftop solar There have been some large
capacity. Such consumers CAPEX has been the PE transactions helping to
have similar incentives as preferred business model but create specialist rooftop IPP
their private sector share of OPEX based platforms including
counterparts (cost savings, installations has risen steadily Cleantech Solar, CleanMax,
reduction in carbon to 35%. Other hybrid Amplus and Fourth Partner.
emissions) for adoption of business models and roof Meanwhile, for smaller
rooftop solar plus the benefit leasing model have so far developers and start-ups, it
of 25-60% capital subsidy. A failed to take off. OPEX still remains a challenge to
major challenge faced by model offers a very attractive raise both equity and debt.
public sector consumers is win-win proposition for both Financiers are concerned
poor coordination between the customer and project about execution challenges,
different agencies and developer but faces high regulatory risk, default
complex tender-based significant challenges in the risk and poor legal rights.
procurement. Residential form of limited number of
consumers account for the highly rated C&I consumers,
remaining 15% share of the low contract enforceability
total market. They face and consumer reluctance to The OPEX model
formidable financial and sign long term PPAs. The
market place for both EPC offers an
operational challenges in
installing rooftop solar and OPEX models is attractive win-win
extremely dynamic and fast
systems. We expect outlook
changing. Low entry barriers
proposition for
for the residential segment to
remain weak in the next 2-3 mean that the market is highly both the customer
years. Continued reduction in fragmented specially for EPC and project
capital cost, development of services.
developer but
new financing models and Several leading IPPs,
improved consumer international developers and faces significant
awareness over time should challenges
 Why Rooftop Solar?
Once Installed solar panels produce electricity free of cost over their
entire lifetime. This energy produced reduces consumers electricity
bill.
The Crippling Power situation in
India, emphasizes the need for
adopting Distributed Solar
Financial incentives and tax benefits available on solar power
Solutions as a primary source of installation make it an extremly attractive investment alternative
power in the city

Net Metering Policy which

allows for the set-off of Through net Metering, solar sstem get integrated with existing
energy source allowing you to set off the energy produced against
Generated Electricity against the your monthly bill and even can feed surplus power to the grid
Electricity consumed by a
consumer from the Grid - it is not
only in the Interest of the Solar power allows you to generate revenue from the unused space
Environment, but also in the at your premises thereby optimising the utilization and realization of
real-estate
Financial Interest of the
Consumers to Utilize their
Maximum Available Rooftop
Area for Installation of Solar PV As the electricity generated is utilized at source, hence there are no
systems to Generate Electricity transmission and distribution losses entailed in the system
for self-consumption.

PV panel have no mechanically moving parts, thereby leading to far

lower operating and maintenance costs as compared to other energy
system

Since solar energy production coincides with energy needs for

cooling, hence PV panels provide an effective solution to meet
energy demand peaks in summer month

Solar energy is an clean & renewable source of energy which reduces

carbon footprint

Its silent operation, make them suitable for school and other
institutional applications

Net Metering Policy which allows for the set-off of Generated

Electricity against the Electricity consumed by a consumer from the
Grid - it is not only in the Interest of the Environment, but also in
the Financial Interest of the Consumers to Utilize their Maximum
Available Rooftop Area for Installation of Solar PV systems to
Generate Electricityforself consumption.
 Types of Rooftop solar PV plant system
Grid connected system Off Grid connected system
• Solar PV system connected to the grid • Employs rechargeable batteries for
• Entire electricity generated fed to grid energy storage
• Consumer charged on net units i.e. unit • Electricity generated used to charge
consumed – unit fed to grid(Net- batteries
Metering) • Suitable for rural area with no grid
• Cheaper than off grid system as does not connectivity
require battery backup • Higher cost of installation
• Suitable for industrial/commercial • Higher maintenance cost
consumers as per unit cost of generation • Battery life is a major concern
is cheaper than discom offered tariff
• Cannot be used during power cut/grid
failure
 Types of metering

Billing of electricity is one of the important factors which heavily influence the profitability
against the solar roof top PV investment. To enjoy the benefits of their investment, end user
should utilize the metering system at its fullest.

Net-Metering
Primary objective of net metering system is to
provide opportunity to consumers to offset their
electricity bills, wherein a single meter records
both import of conventional energy from
distribution grid and export of solar energy into
distribution grid. Thus, net metering allows the
final user to credit produced energy in the grid
and is also promoted as a preferred option.

Gross Metering

Gross metering systems are aimed at rooftop

owners/third party investors who will like to sell
energy to the DISCOM by using roofs owned by
them or another party. It is also known as feed-
in metering wherein, all the energy generated
from the system is exported to the grid and is
separately recorded through a different 'feed-in
meter'. The developer exports the solar energy to
the utility at a predetermined feed-in-tariff (FIT)
approved by the regulator, and the third party
investors/RESCO developers enter into a long
term Power Purchase Agreement (PPA) with the
utility. Only grid-connected PV systems can be
gross-metered.
 BUSINESS MODELS
Basically in India there are two major business model

CAPEX

• The borrower sets up rooftop solar project with the intent to reduce his own power costs.
Residual power, if any, can be feed to the grid.
• The Borrower would approach an EPC contractor for the installation of the project. The
O&M contract may be given to the same EPC contractor or some other person.
• Debt servicing is dependent on the main business activity of the Borrower.
• Financial appraisal would be like any other asset (e.g. machinery) financing proposal.

RESCO

• RESCO will develop the rooftop solar projects for its clients on the agreed terms and
conditions.
• RESCO would enter into a long term legally binding lease, right to use or similar agreement
for the roof on which solar project will be installed.
• RESCO will also enter into a PPA for the supply of power. In this model, the same RESCO
is likely to take up multiple projects consecutively and simultaneously across different
locations.
• RESCO would be borrower in Bank’s books and liable for repayment of loan.

CAPEX model suitable for RESCO model suitable for

Consumers having adequate manpower Lacking expertise in O&M
Expertise in O&M No rooftop security concerns
Rooftop access concern Prefer to pay monthly basis rather
than upfront
Upfront availability of funds
CAPEX MODEL
CAPEX mode is the most common business model for solar deployment in India. In this model the
consumer purchases the solar system, by making 100% of the payment upfront or financing the system,
often through a bank.

Capital
Investment Internal
Project RSPV Loads
Developer SM
System
(Self

Consumer
REC Panel
Fiscal Incentives

Net
metering
agreement
Energy Govt. – Data
UM
Exchange Policy/Program Verification
(RECs) s

Energy
Payment for
Fund excess Utility
injection
Figure 17 CAPEX model
 Renewable Energy Service Company (RESCO) Model
In this model, a RESCO developer finances, install, operates and maintains the solar rooftop plant. The
RESCO developer and the rooftop owner will undergo an agreement. The rooftop owners may consume
the electricity generated, for which they have to pay a pre-decided tariff to RESCO developer on a
monthly basis for the tenure of the agreement. Based on the consumption choice and requirement, the
model is further divided into two types – Rooftop Leasing and Power Purchase Agreement (PPA).

Figure 18 RESCO model

Rooftop Leasing (Under Gross Metering)
Under this arrangement, the RESCO developer leases the rooftop and pays a fixed lease/rental to the
building owner over the time of the lease period for installing the solar panels of the rooftop. The RESCO
developer exports the solar energy to the utility at a predetermined feed-in-tariff (FiT) approved by the
regulator

Use of
rooftop for
Finance, installation, O&M
installation

Rooftop Solar PV
RESCO

Roof Rent
Sell Energy

Building Owner
Utility Grid
Power Purchase Agreement (Under Net Metering)
Here the RESCO developer invests in solar rooftop asset, and sells the generated power to the building
owner in favour of a lower solar power tariff. The excess power could be sold by the building owner to
the utility through net metering system.

Use of
rooftop for
Finance, installation, O&M
installation

RESCO Rooftop Solar PV

Sell Energy

Sell Excess Energy

Payment

Building Owner
Utility Grid
 Various models under RESCO

RESCO

Rooftop
BOOT BOOM
Rental
RESCO constructs, RESCO will enter
The RESCO constructs, owns, operates and into lease agreement
owns, operates and maintains the project. with the rooftop
transfers the ownership of owner and set up the
the rooftop solar project solar system on his
after expiry of contract RESCO typically roof.
period or as per agreed ensure that he is able to
recover the cost of his
terms. capital investment and The rooftop owner
O&M expenditures
over time.
will get an agreed
Generally, transfer of amount of rent from
ownership is made, once the RESCO.
the RESCO has recovered
its cost of capital and a
suitable rate of return. The power generated
can be either
transmitted into Grid
After the transfer of or may be provided
ownership, the rooftop to private procurer on
owner is responsible for agreed tariff.
O&M and he may choose
to retain the services of
the original RESCO or he
may make his own
arrangements for O&M
requirements.
Advantages of RESCO
 Incentive schemes & Penalties
Sl. NO. Achievement vis-à-vis Target Allocation Incentive General Incentive Special
Category State State/ UT

1 80% and above within the sanctioned period Rs 18750/KW Rs. 45000/KW

2 Below 80% & up to 50% Rs. 11250/KW Rs. 27000/KW

3 Below 50% / Delayed commissioning up to 6 Rs. 7500/KW Rs. 18000/KW

months beyond the sanctioned period
Table 6 Incentive schemes for RESCO model

• Rs. 15000 per kW incentive Bid Bond Amount

after completion of first
INCENTIVE year of successful O&M and • Bid bond amount = 15 lakhs
* Bid capacity in MWp
DISBURSEMENT receipt of NOC from
concerned Roof Top owner Performance Security /
by SECI. Performance Bank Guarantee
GENERAL CATEGORY STATES
• Similarly, for projects • For general states
• Rs. 12500 per kW incentive completed beyond
shall be disbursed by SECI sanctioned period, approx. • PBG = 1.87 lakhs *
after Successful 66.66% of the eligible Allocated capacity
Commissioning and incentive shall be released • For Special category states
acceptance of project. after commissioning of the
project and balance, PBG = 45 lakhs * allocated
• Rs. 6250 per kW incentive capacity
33.33% of the eligible
after completion of first
incentive shall be released
year of successful O&M and
after one year of the LIQUIDATED
receipt of NOC from
concerned Roof Top owner
commissioning of the DAMAGES AND
project.
by SECI. PENALTIES
SPECIAL CATEGORY STATES
• Rs. 30000 per kW incentive BID Amount(EMD) & • The Bidder shall complete
the roofs identification,
shall be disbursed by SECI Performance submission of project
after Successful
Commissioning and
security(PBG) sanction documents as per
acceptance of project. the requirement of SECI
Engineer-in-Charge design,

The incentive for the project executed under this scheme shall be provided by the MNRE and no other
incentive/subsidy can be claimed by the bidder/rooftop owner from other agencies including State
Government
 engineering, manufacture, • After 6 months the project continuously, then the 50%
supply, storage, civil work, will get cancelled and the PBG amount shall be
erection, testing & total PBG amount would be encashed by SECI.
commissioning of forfeited
sanctioned project(s) within • If the outage is exceeding
12 months from the date of more than 60 days than
issue of allocation complete PBG amount shall
letter(s).A further period of
Penalties due to be encashed by SECI. (This
6 months shall also be operation will be applicable as per the
provided for completion of O&M Scope)
project with reduced • Incentive will not be
• If O&M issues are not
incentive. released for any
resolved within 72 hours,
• No incentive shall be then complaint may be shortcomings in
provided if project gets raised to SECI , pursuant to commissioning as per
delayed beyond 6 months which a penalty of Rs. technical specifications
from the sanctioned 10,000 for full month or mentioned or for
completion period. more shall be imposed for a performance ratio (PR)
system capacity above 100 below the specified limit
• Penalty shall be imposed for kWp. (75%) after commissioning.
delayed commissioning
without complete forfeiture • Repetition of such instances • PBG shall be forfeited in
of PBG for more than 2 times a year case average CUF falls
may lead to the stop the below 15% during entire
• Liquidated Damages = next tranche of subsidy by O&M period of 5 years.
((Performance the SECI.
Security)/180
days)*delayed days • If the outage of the plant is
more than 30 days
 What is a PPA?
Power Purchase Agreement is a cost effective as fossil fuel the PPA period, invest in
legal contract between an based electricity gets the power plant.
electricity generator and a increasingly expensive.
power purchaser. In India,
Procedure to Get a
Central and State utility PPA
contractual terms last for 25
Importance of the PPA
years, whereas nascent Private PPA - Identify potential locations
PPAs are around 5-10 years. It is Well, unless we are putting up a o Identify approximate area
during this time the power captive solar power plant for available for PV
purchaser buys energy. which the consumer of the installation including any
entire power generated will be potential shading. The
Solar Developers are able to yourself/your company, a PPA is areas may be either on
competitively price solar power a must-have for you to invest in rooftops or on the
for both public as well as private a solar power plant. ground. A general
customers under the terms of guideline for solar
the PPA. Imagine you are starting a installations is 5–10 watts
business but you have no idea (W) per square foot of
PPAs usually include terms of who your customer or you do usable rooftop or other
agreement i.e. details on not have a plan of how to sell space.
interfacing and evacuation your product. Under such - Identify potential solar
facilities, operation and circumstances, how will your policies applicable for the
maintenance, metering business make money? It land
arrangements, scheduling of cannot! o State policies differ from
solar power, rate of energy region to region. The
including escalation rates, Similarly, the PPA is tariff rates at which PPAs
dispute settlement, billing and the contract that essentially are signed differ region to
payment. gets you a customer for your region. Hence zero in on a
solar power plant. As policy that can bag you a
solar power plants are long PPA that ensures
Pros of PPAs include: term investments, you profitable returns.
- No/low up-front cost. cannot put up a power plant - Respond to the Request for
- A predictable cost of and then search for a customer. Proposal (RfP) or win bids
electricity over 15–25 years. What happens if you are not issued by the Power
- No need to deal with able to get one? Such a huge Purchaser
complex system design and investment goes for a waste. It o The developer may have
permitting process. is hence imperative that to respond to RfPs or win
- No operating and you first identify a customer bids issued by the Third-
maintenance who agrees to offtake Party Power Purchaser or
responsibilities. the power generated by your the Utility
- Customer enjoys marketing solar power plant for a specified - Contract Development
benefits of their green number of years (preferably 10+ o After a winning bid is
energy years), and then, once you are selected, the contracts
- Price of electricity is sure that you would be able to must be negotiated—this
indexed to inflation and get your money back within is a time-sensitive
therefore is increasingly
 process. In addition to the then procure, install, and delay in payments to
PPA between the commission the solar PV developer
government agency and equipment. The - Generally speaking,
the system owner, there commissioning step government PPAs are
will be a lease or certifies interconnection regarded as lower risk
easement specifying with the utility and as they are backed by
terms for access to the permits system startup. the government and
property (both for Once again, this needs to are usually signed for
construction and be done within the timing the duration of plant
maintenance). determined by the state life (25 years)
REC(Renewable Energy incentives. Failure to
Certificate) sales may be
included in the PPA or as
meet the deadlines may
result in forfeiture of
Challenges
an annex to it. benefits, which will likely associated with 3rd
- Permitting and Rebate change the electricity Party PPAs
Processing price to the government - 3rd Party’s financial
o The system owner agency in the contract. health may be better
(developer) will usually be The PPAs usually establish than DISCOM’s, but
responsible for filing realistic developer long-term business
permits and rebates in a responsibilities along with prospects need to be
timely manner. However, a process for determining evaluated
the government agency monetary damages for - Credit rating of the 3rd
should note filing failure to perform. party should be
deadlines for state-level considered as they are
incentives because there
may be limited windows
Challenges not backed by a
government
or auction processes. associated with PPAs need not be
- Project Implementation and Government/Utility signed for 25 years. Some are
Commissioning
o The developer should PPAs signed for as short as 3 years,
- Tariffs may be leaving future revenue
complete a detailed generation of the plant in doubt
design based on the term overturned by SERC
sheet and more precise - Poor financial health of
measurements; it will DISCOM might lead to
 Case study
Rooftop Solar Proposal proposed location, It has found • Existing Contract Demand
the potential & appropriate area in kW : 270 kW
for En-Vision Enviro of 9000 sq.ft where we can • Allowed Capacity by
Technologies Pvt. Ltd. install 135 kWp Solar PV Regulations : 135 kW
Rooftop Plant. • Proposed Plant Capacity:
135 kWp
According to site survey & • Existing Contract Demand
feasibility analysis of the in KVA : 300 KVA
State Gujarat

Area / Location Udhna-Bamroli Road

Latitude 21.159898° N

Longitude 72.817456° E

Elevation 8.33 m

Roof type Open Plot

Length: 225 Ft., Width: 40 Ft.
Proposed Mounting Structure Tilted metallic shed – South Waste facing

Feasible area available for solar plant 9000 sq.ft

Proposed solar plant installation capacity 135 kWp

PV Technology/ Module Mono- Crystalline solar module

Table 7 Site specification

Projected Generation of Rooftop Solar Plant

Total installed capacity of solar power plant = 135 KW

Total Energy Generation Per Day = 651 UNITS / DAY (Annual average)

Total Energy Generation Per Month = 19,550 UNITS / MONTH

Total Energy Generation Per Annum = 2,37,870 UNITS / YEAR

Table 8 Projected generation

Solar Generation-Consumption Analysis

Financial
Month Unit Consumption Avg. Billing (Rs.) Solar Generation Net Units
Benefit (Rs.)

June-18 22465 202185 14175 8290 127575

July-18 32215 289935 14647.5 17567.5 131827.5

August-18 23165 208485 14647.5 8517.5 131827.5

September-18 27420 246780 14175 13245 127575

October-18 22655 203895 20925 1730 188325

November-18 12155 109395 20250 -8095 135622.8

December-18 18646 167814 20925 -2279 175197.96

January-19 25820 232380 20925 4895 188325

February-19 31195 280755 22680 8515 204120

March-19 28150 253350 25110 3040 225990

April-19 31545 283905 24300 7245 218700

May-19 22683 204147 25110 -2427 212010.48

Total 298114 2683026 237870 20,67,096

Table 9 Solar generation & consumption estimation

135 kW
40000

30000

20000

10000

-10000

-20000

Net Units Unit Consumption Generation

Figure 19 Solar Generation-Consumption Curve
Proposed Module Mounting Structure

Existing Site condition

Schematic Diagram of module mounting structure

Figure 21 Schematic diagram of module mounting structure (top view)

Figure 20 Schematic diagram of module mounting structure (side view)

Visualization of Proposed 135kWp Rooftop Project

Figure 22 Visualization of project

Financial Approach

Financial Analysis

Project Cost per kW 65,000 Rs.

Capital Investment
Total Project Cost 87,75,000 Rs.

Monthly 1,72,258 Rs.

Financial Benefits
Yearly 20,67,096 Rs.

Decision Maker Payback Period (years) 4.25 Years

Total Project Cost 87,75,000 Rs.

Loan Amount (70%) 61,42,500 Rs.

Rate of Int. 9 %

Loan Duration 60 Months

Bank Finance EMI 1,27,508 Rs.

Total Project Cost with Bank Finance 1,02,37,534 Rs.

Payback Period with Bank Finance 4.95 Years

Total Interest Paid 14,65,534 Rs.

Financial Viability
Delay in Payback Period 9 Months
Table 10 Financial Analysis
Analysis of ENERGY STORAGE POLICY &

REGULATION OF INDIA
 WHAT IS ENERGY STORAGE?
Energy storage, sometimes referred wind. Energy storage is able to This responsive system will
to as electricity storage, is as the smooth out the supply from these provide a balance between supply
name suggests, the storage of sources to provide a more reliable and demand via responsive power
energy. supply that matches demand. This generation from both suppliers and
allows organizations to maximize consumers resulting in a clean,
Energy storage works by capturing renewable generation, therefore secure and reliable electricity
electricity produced by both energy storage can play an integral supply.
renewable and non-renewable role in a business’ journey towards
resources and storing it for carbon neutrality. At grid level, energy storage
discharge when required. The reduces stress on the electrical
solution allows users to come off At times of unexpected increases in network infrastructure, increases
the grid and switch to stored demand on the grid, energy storage the proportion of renewables on the
electricity, at a time most can be used to discharge power grid and increases reliability of
beneficial, giving greater flexibility back to the electrical supply renewable generation. It also
and control of electrical usage. network very quickly to provide provides efficient demand
additional supply to help meet balancing options for the grid and
The electrical energy grid requires demand. By businesses reduces the need for backup
a balance between supply and contributing to this process of demand generation.
demand. At times of low demand, balancing the demand it alleviates
when there is excess supply, it can the pressure from the grid and for For large electricity consumers,
be stored for use at times of high this assistance contracts are energy storage provides flexibility
demand, with low supply, thus offered. in electricity supply and
adjusting to provide the required opportunities for significant costs
balance between supply and Driven by advances in technology, savings by enabling a switch to
demand. the traditional model of electricity stored electricity at peak-tariff
provision is being replaced by a periods. It eliminates the risk of
This approach is especially smart, flexible energy smart grid network interruption by providing
effective with renewable powered by energy storage, full UPS capabilities, reducing the
generation, which is intermittent by demand side response (DSR) and likelihood of energy related
its nature. Solar and wind, for inter-connectivity. failures which can total as much as
example, generate little amounts of 17% of annual revenues and
power in the absence of sunshine or maximizes the investment into
renewable generation.

Introduction
 Energy storage can make a congestion in these systems by
India must shift away from fossil
valuable contribution to our providing power locally at
fuels and towards clean, renewable
energy system. times of high demand.
sources of energy in order to
protect our air, water and land, and • Energy storage can improve
to avoid the worst consequences of • Energy storage can capture community resilience,
global warming. Renewable energy renewable energy produced in providing backup power in
sources, such as wind and solar excess of the grid’s immediate case of emergency, or even
power, are virtually unlimited and needs for later use. In allowing people to live “off the
produce little to no pollution. With California, solar and wind grid,” relying entirely on clean
renewable energy technology energy plants were forced to energy they produce
improving and costs plummeting, it halt production more than one- themselves.
is now possible to imagine a future fifth of the time during 2016 • Energy storage can provide
in which all of India’s energy because the power they needed ancillary services that
comes from clean, renewable produced was not needed at help the grid function more
sources.

The availability of wind and solar

power, however, varies by the
hour, day and season. To repower
our economy with clean energy, we
need an electric grid that is capable
of incorporating large volumes of
variable renewable resources.

Energy storage technologies

can be an important part of
that electric grid of the
future, helping to assure
reliable access to electricity
while supporting India’s
transition to 100 percent
renewable energy. that moment. efficiently and reliably.
To get the most benefit out of
• Energy storage can help
energy storage, however, policy-
utilities to meet peak demand,
makers and the general public need
potentially replacing expensive Energy storage is likely to be
to understand how energy storage
peaking plants. most effective when used as part
works, where and when it is
of a suite of tools and strategies to
necessary, and how to structure
• Energy storage can extend the address the variability of
public policy to support the
service lifetime of existing renewable energy. Other
appropriate introduction of energy
transmission and distribution strategies include:
storage.
infrastructure and reduce
• Widespread integration of • Weather forecasting: Having may make sense to build more
renewable energy into the advance knowledge of when renewable energy capacity
grid: Increasing the number wind and solar availability is than is typically needed in
and geographic spread of likely to rise or fall allows order to meet energy needs
renewable generators energy providers to plan during times of highest
significantly reduces their effectively. New England’s demand.
collective variability by Independent System Operator Types of Energy
making it likely that a (ISO) lists having access to
temporary shortage of detailed wind speed forecasts Storages
generation in one area will be five minutes ahead as one of
balanced by solar or wind three requirements for making Many types of energy storage
energy production elsewhere. wind energy entirely technologies can help integrate
dispatchable throughout the renewable energy into India’s
region. energy system.
• Energy efficiency: Using less
energy, particularly during • Thermal storage stores
Strategies to handle variability times of greatest mismatch of energy in very hot or very cold
renewable energy supply and materials. These systems can
of renewable energy
demand, can reduce the need be used directly for heating or
for backup energy sources. The cooling, or the stored thermal
American Council for an energy can be released and
Energy-Efficient Economy has used to power a generator and
Integration found that if a utility reduces produce electricity. Even pre-
of RE in grid electricity consumption by 15 heating hot water during
percent, peak demand will be periods of high renewable
reduced by approximately 10 energy production or low
Weather percent. demand can be considered a
forecasting • Demand response: Systems form of thermal storage.
that give energy companies the • Utility-scale batteries can be
ability to temporarily cut located along the electricity
Energy power from heaters, distribution or transmission
efficiency thermostats and industrial system, providing power
machinery when demand peaks during times of peak demand,
– and provide financial aiding with frequency
Demand incentives for consumers who regulation on the grid, and
response volunteer to have their power absorbing excess renewable
curtailed – can reduce the risks energy for later use.
posed by variability. Studies • Residential and commercial
Building for have found that demand batteries located “behind-the-
peak
demand
response can maintain the meter” can provide backup
reliability of highly power during power outages,
intermittent 100 percent and have the potential to be
renewable energy systems, aggregated into a larger
often at a fraction of the cost of network and controlled by a
batteries. utility to support the reliability
of the grid. Electric vehicle
• Building for peak demand: batteries could also someday
Much like grid operators have be integrated into the grid,
done with conventional charging at times when
combustion power plants, it
 Thermal Storage
Utility Scale Battery
Pumped Hydro Storage
Energy
Storage Flywheel
Hydrogen & SNG
renewables are available and river, to a higher reservoir air is released into an
powering homes and where it is stored. When expansion turbine, which
businesses at times when electricity is needed, the water drives a generator.
demand is high. in the higher reservoir is • Flywheels use excess
• Pumped-storage released to spin turbines and electricity to start a rotor
hydropower, currently the generate electricity. - spinning in a very low-friction
most common and highest Compressed air energy storage environment and then use the
capacity form of grid- works by compressing air and spinning rotor to power a
connected energy storage, storing it in underground generator and produce
works by pumping water from reservoirs, such as salt caverns. electricity when needed. These
a lower reservoir, such as a When electricity is needed, the systems have a variety of
 advantages they require little The divergence of opinions largely approaching energy storage. These
maintenance, last for a long originates with how one defines countries include Australia, Chile,
time and have little impact on energy storage. Some analysts Germany, Japan, India, Italy, South
the environment – but have calculate only “front-of-the- Korea, the UK, and the US.
limited power capacity. meter” utility-scale technologies, Particularly focusing on battery
Developing technologies, while others include “behind-the- storage, which is presently the
including hydrogen and meter” solutions implemented by leading technology, our
synthetic natural gas, have the commercial and industrial (C&I) examination sought to uncover
potential to offer unique benefits customers. And others include what has been driving the push for
and may become important tools electric vehicle batteries and energy storage in these nations and
in the future for energy needs that smaller scale battery-plus-solar what utilities and policymakers
are currently difficult to serve combinations implemented by have been doing to define battery
with electricity. residential consumers, which could storage, develop storage markets
have not only behind-the-meter and to support ongoing deployment
Energy storage has been applications but also front-of-the
growing rapidly in recent years meter uses if they are controlled by Market Drivers
and that growth is projected to aggregators or utilities.
continue. Complicating the picture even Energy storage is likely to
more are the many applications for become increasingly important
Depending on which analysis one energy storage, which can be useful and valuable in the years ahead,
reads, the global market for energy in integrating renewables, as a result of:
storage is poised to grow rapidly, supporting smart grids, creating
but few can agree on how much. more dynamic electricity markets, • Cost and performance
providing ancillary services, and improvements: Energy
According to one widely bolstering both system resiliency storage in various forms has
publicized projection, the storage and energy self-sufficiency.

Helps in
Supporting Dynamic Ancillary System Energy Self-
integration of
Smart Grid Market service resiliency sufficiency
RE

market could reach more than $26 Despite the complexity of the been around for decades. This
billion in annual sales by 2022, a landscape, many growth begs the question: why battery
compound annual growth rate projections agree that energy storage and why now? Perhaps
(CAGR) of 46.5 percent. Another storage is gaining traction around the most obvious answer is
analysis envisages growth at a the world and could fundamentally declining costs and improved
more modest, but still robust, pace, change market dynamics. To performance, particularly
expanding at a compound annual understand these shifting relating to lithium-ion
growth rate of 16 percent and dynamics, we peered beneath the batteries, since expanding
reaching $7 billion annually by aggregate growth projections to electric vehicle markets are
2025. Others put it somewhere in examine how some of the more promoting manufacturing
the middle, while a few take a active nations in renewable economies of scale. As
slightly more optimistic or development and grid illustrated in Figure(24) below,
pessimistic view. modernization are now costs for lithium ion batteries
 are declining at a steep the next two decades or sooner enable two-way
trajectory. However, in various through programs such as communication and advanced
nations, it became apparent RE100 and the Renewable digital control systems, along
that declining costs are only Energy Buyers’ Alliance. This with integrating distributed
part of the story. bodies well for continued energy resources (i.e.,
renewable development and, renewables, fuel cells, diesel or
• Global movement toward presumably, for continued natural gas generators, storage
renewables: Government deployment of batteries to assets, and microgrids).
support for renewables and assist in integrating greater In general, we found the
emissions reduction is also amounts of distributed energy growth of battery storage goes
driving adoption of battery resources. hand-in hand with grid
storage solutions. The critical • Grid modernization: Utilities modernization efforts,
role that batteries can play in are starting to recognize the including the transition to
offsetting the intermittency of value that energy storage can smart grids. Digitizing the grid
renewables and reducing offer for purposes other than enables prosumer
curtailment is well known, but renewable energy integration. participation, intelligent

Figure 23 Li-ion price track

the strength and pervasiveness system configuration,

of the desire for clean energy Many developed countries are predictive maintenance, and
among all types of electricity embarking on grid self-healing, and it paves the
customers is growing. This is modernization programs to way for the implementation of
especially apparent within the boost resilience in the face of tiered rate structures—all of
corporate and public sectors. severe weather events, reduce which create opportunities for
Large multinational system outages linked to aging batteries to generate value by
corporations have taken a infrastructure, and improve the adding capacity, shifting load,
leadership role in procuring overall efficiency of the and/or improving power
renewable energy around the system. These programs often quality. While smart
globe. Indeed, many have involve deploying smart technologies have been around
publicly pledged to reach 100 technologies within for some time, batteries help to
percent renewable energy in established electrical grids to
 unlock their full potential, and remove barriers to storage fully activated in less than the
vice versa. participation and markets required 30 seconds. However,

Participation in
wholesale electricity
markets National Policy
Financial incentives

Phase-outs of FITs or
net metering Grid modernization

Global movement
toward renewables Desire for self-
sufficiency

Cost and
performance
improvements

• Participation in wholesale recalibrate. because there is no

electricity markets: Though Take Germany’s primary remuneration for fast response
renewables and batteries are control reserve (PCR) market in Germany as there is in the
often mentioned in the same for example. Participants in US, battery providers compete
sentence, battery storage can this market generate revenue directly against established
help balance the grid and
by winning a weekly auction incumbents such as gas peaker
improve power quality
regardless of the generation and receiving remuneration for plants. On one hand, this
source. This points to a providing capacity to balance undifferentiated competition
growing global opportunity for the grid. While the PCR market has been effective in driving
batteries to participate in has been open to storage down the cost of capacity, but
wholesale electricity markets. providers for the past few on the other, it has led to rapid
Within our analysis, nearly
years, battery deployment did market saturation, thin
every nation is revamping its
wholesale market structure to not become significant until margins, and an uncertain
allow batteries to provide 2016, when declining system economic situation for battery
capacity and ancillary services, costs allowed for a viable storage providers. With little
such as frequency regulation return on investment. Unlike room to grow in the PCR
and voltage control. These conventional generators, market, battery solution
applications are still nascent batteries are able to respond to providers in Germany are
and are finding varied success
system imbalances almost increasingly setting their sights
as policymakers work to
instantaneously, becoming
on the secondary reserve signals, and other technical electric storage resources in
market and distribution requirements. However, the capacity, energy, and
deferral as potential new value moving ahead, our findings ancillary services markets
suggest that the benefits of subject to its jurisdiction
streams.
integrating batteries into
As in Germany, some grid
operators in the US have also
wholesale electricity markets • Financial incentives: The
can outweigh these growing widespread availability of
allowed batteries to compete in pains, since policymakers
their systems. The opening of government-sponsored
around the world are financial incentives in various
US wholesale electricity increasingly taking action to
markets to providers of fast- nations further reflects
reward the contributions fast- policymakers’ growing
responding resources such as acting batteries can make to
batteries and flywheels can awareness of the range of
balance grid operations. For benefits battery storage
largely be attributed to

Figure 24 Prices of different types of battery

Federal Energy Regulation instance, Chile’s national solutions can deliver

Commission (FERC) Orders energy commission has drafted throughout the electricity value
755 and 784, issued in 2011 a new regulatory framework chain. These incentives ranged
and 2013, respectively. These for ancillary services that from a percentage of battery
Orders specified that speed recognizes the contributions system costs being refunded
and accuracy must be that battery storage systems directly or through tax rebates,
rewarded in ancillary services can provide. Italy too has to capital support through
markets. Since inviting battery opened its ancillary services grants or subsidized financing.
providers to participate in market to pilot renewable These incentives appear to be
frequency regulation markets, energy and storage projects as particularly generous in
grid operators have been part of sweeping regulatory countries that have energy
challenged by some initial reform efforts. And, on security concerns, such as Italy
imbalances in the mix between February 15, 2018, FERC which offered a 50 percent tax
fast-ramping and slower issued a final rule on taking deduction in 2017 for
ramping resources and matters further steps to remove residential storage
related to dispatch parameters, barriers to the participation of installations, or in nations that
 have an economic stake in 2015 and caps on participation with about half being retrofits
battery manufacturing such as in subsequent incentive or add-ons to existing solar PV
South Korea, where programs for sending installations. The other half,
government supported electricity back into the grid. however, are brand new solar-
investment in energy-storage • Desire for self-sufficiency: plus-storage systems that are
systems has expanded their While the aforementioned not necessarily linked to the
output to 89 megawatt-hours drivers have been well FIT phase-outs. With large
(MWh) for the first half of documented, a growing desire residential battery systems still
2017, up 61.8 percent for energy self-sufficiency costing between AU$8,000 and
compared to the same time the among residential and C&I AU$10,000 (US$6,300-8,000),
previous year. customers emerged as a the likely motives are self-
• Phase-outs of FITs or net somewhat surprising force sufficiency and the pride of
metering: Low or declining behind storage deployment. being an early adopter, rather
feed-in-tariffs (FITs) or net This desire is fueling behind- than rapid payback and return
metering payments the-meter markets to some on investment. While battery
additionally emerged as a extent in nearly every country storage systems have to be
driver of behind the-meter we examined, suggesting that cost-competitive, their
battery deployments, as the motivations for purchasing popularity in Australia, along
consumers and businesses seek storage systems are not purely with our findings elsewhere,
ways to obtain greater returns financial. suggests they do not
from their solar photovoltaic In Germany, for example, necessarily have to be
(PV) investments. This is ecological motives, significantly less expensive
occurring in Australia, independence from utilities, than purchasing electricity and
Germany, and the UK as well resiliency and technical services from a utility in order
as in Hawaii within the US. curiosity are all thought to be for the market to grow.
These areas have some of the motivations. Similarly, self- • National policy: Additional
most mature solar markets, sufficiency is a strong driver in opportunities for battery
partly because electricity Italy, the UK, and Australia., storage providers are arising
prices are high enough to make The latter, in particular, is from national policies aimed at
solar economically viable. experiencing an furthering a variety of strategic
While this is not yet a global unprecedented residential objectives. Many countries see
trend, it is reasonable to think it storage boom, driven by a renewables plus storage as a
may become one as FITs phase combination of falling battery new way to lessen their
down in more nations and as prices, regulatory changes, dependence upon energy
the owners of solar PV and a desire to be self-reliant. imports, fill gaps in their
installations look to batteries as Some Australians perceive generation mix, enhance the
a means of self-consuming their regional electric grids to reliability and resiliency of
more of the electricity they be unreliable, and they see their systems, and move
produce, shifting their loads to battery-plus-solar systems as a toward environmental goals
avoid peak charges, and/or way to ensure they have and de-carbonization targets.
providing grid-stabilization adequate power supply. Seven Some nations, such as Italy and
services by allowing a utility or thousand batteries were Japan, are actively subsidizing
an aggregator to charge or installed in Australian homes and promoting energy storage
discharge their batteries when in 2016, and that figure was as part of broad restructuring
needed. For instance, expected to more than efforts, aimed at ensuring
residential storage permits in quadruple, reaching upwards reliability and reducing
Honolulu, Hawaii, grew by of 30,000 homes in 2017. As dependency on international
1,700 percent, or 18-fold, in mentioned previously, the energy companies and foreign
2017. This surge was partly expiration of residential solar imports.
due to the elimination of the FITs is the likely motive behind Energy storage will also likely
state’s net metering policy in some of these installations, benefit from broad policy
mandates linked to India’s first grid-scale battery and provide benefits to the grid
urbanization and quality-of- storage system, which was as a whole;
life goals in developing designed for peak load • Set storage benchmarks and
nations. For example, India’s management, hints at a encourage utilities to build and
utilize energy storage
Smart City Initiative uses a potential boom for energy
throughout their system.
competitive challenge model to storage as the nation seeks to
support deployment of smart realize its aggressive policy
technologies in 100 cities objectives, which largely hinge Challenges
throughout the country. Among upon developing a clean,
the objectives for these reliable electricity system.
Though market drivers are
deployments are assuring Smart policies will be key to converging to propel storage
adequate electricity supply, allowing the energy storage deployment forward, challenges
environmental sustainability, market to continue to grow and still exist. The more prominent
support the nation’s transition to barriers can be traced to the speed
efficient mobility, and public
a clean energy future. with which battery storage
transport. Electric vehicles, Policymakers should:
renewable energy, and battery technologies and their applications
are evolving, and to the multiplicity
storage are all critical to • Clarify existing grid and flexibility of battery storage.
attaining these objectives—as connection and permitting
evidenced by the policies to remove barriers to • Perceptions of high prices

Perceptions of
high prices

Lack of standardization

Outdated regulatory
policy and market design

Incomplete definition of
energy storage
announcement from the Indian installation and deployment of Like any technology, battery
government that the nation energy storage; storage is not always
aims to start selling only • Design energy markets to economical, and costs will
capture the full value of energy often be too high for a
electric cars by 2030. In
storage and all the services particular application. That is
addition, the government is to be expected. The problem is
these technologies can provide;
targeting 100 gigawatts (GW) • Incentivize homes and that inaccurate perceptions of
of solar energy capacity by businesses to adopt storage, high costs can block batteries
2022, up from around 10 GW which can increase resilience from being considered in the
in 2016. The recent launch of solution set. Costs have been
dropping so quickly (see few years as the market they do not recognize the
Figure 25) that decision- matures and the landscape flexibility of storage systems
makers may have outdated consolidates. or allow them a level playing
notions about the price of field.” One regulatory
• Lack of standardization:
systems, thinking that batteries construct that may need to
Participants in early stage
still cost the same as they did a change is to enable storage to
markets often have to contend
couple of years ago, or even six be classified as generation,
with diverse technical
months ago. Declining battery load or transmission and
requirements as well as varied
prices, and their impact on distribution infrastructure, so
processes and policies. Battery
overall system costs, were as optimize use of this
suppliers are no exception.
recently and dramatically “uniquely flexible resource.”
This disparity adds to
illustrated by an Xcel Energy Lagging policies are not news
complexity, and therefore
solicitation, which attracted a to regulators and system
costs, throughout the value
median price of $36/MWh for operators. As mentioned
chain, making lack of
solar-PV-plus-batteries and
standardization a significant previously, many are working
$21/MWh for wind-plus-
roadblock to further to update ancillary services
batteries. The solar-plus
deployment. Standardization market rules to support storage
battery price set a new record
could be particularly important deployment. The capability of
in the US and that may not
to the proliferation of battery
stand long. battery storage systems to
storage because of “balance of
charge” issues associated with enhance the flexibility and
Price declines are expected to reliability of the grid has been
batteries. In other words, they
continue, both regarding the can’t be discharged too far or it well documented, which is
cost of the battery technology will damage the units; network perhaps why regulators tend to
itself as well as of balance-of- operators need to know how focus first on wholesale
system components. Although much “juice” is left in a battery
markets. However, retail rules
these supporting technologies at a given time; and
recharge/cycle times are will also need to be updated,
do not generally garner as especially as residential and
different depending on the type
much press attention, they are C&I interest in energy storage
of battery employed (for
just as important as the example, flow versus solid- systems grows. To date, the
batteries themselves, and they state, as in lithium-ion). discussion in this area has been
could represent the next big • Outdated regulatory policy mainly about implementing
wave of cost reductions. and market design: As can be
tiered or structured rates
Inverters, for instance, are “the expected with emerging
technologies, regulatory policy enabled by smart meters and
brains” of a storage project, based on time-of-use. Without
is lagging the energy storage
and they significantly tiered rates, battery storage
technology that exists today. A
influence project performance statement from the Edison loses one of its most attractive
and returns. However, Electric Institute, an attributes: the ability to
according to a recent report association that represents US facilitate rate arbitrage by
from GTM Research, the investor-owned electric
storing electricity when it is
market for inverters is still companies, summarizes the
situation: “Many public cheap, and selling it when it is
“nascent and fragmented, full expensive. Time-of-use rates
policies and regulations must
of new products with varying be updated to encourage the have yet to become globally
applications and deployment of energy storage. prevalent, but this situation
functionality.” Thus, the prices Current policies were created could change quickly as smart
for storage inverters are before new forms of energy meter rollouts are completed in
expected to fall over the next storage were developed, and
a number of countries.
Policymakers in the UK, for nationwide roll-out of smart compensate providers. Put another
instance, have already made meters is completed in 2020. way, energy
some basic time-of-use tariffs Incomplete definition of energy
available, designed based on storage: A lingering barrier to storage is having an identity crisis,
energy storage adoption is rooted in with stakeholders and
either seven or ten off-peak
lack of familiarity with the full policymakers around the world
hours, predominantly during wrestling with how to define fast-
range of applications for battery
night time. These tariffs are storage solutions, along with an acting battery storage. Clearly, this
likely to become more incomplete understanding of how is no easy task.
sophisticated and more widely to assign value to them and
adopted in the future when a
 Why do we need energy storage?
India and the world need to shift our energy system away from fossil fuels and towards clean, renewable sources.
This change requires modernizing our electric grid, including building new capacity to store energy for later use.

Renewables
Generation Storage addresses the
Storage offers an emission intermittency issues of
free alternative to plant renewables by delivering
additions as utilities face energy only when the grid
aging plants & stringent requires it.
environmental regulation Technologies: PHS, CAES,
Technologies: PHS, CAES, Electrochemical, flow batteries,
Electrochemical, flow hydrogen
batteries, hydrogen Application: Energy time shift,
Application: Energy time Electric supply capacity
shift, Electric supply
capacity

Transmission & Distribution

Storage addresses the intermittency issues of renewables
by delivering energy only when the grid requires it.
Technologies: PHS, CAES, Electrochemical, flow batteries,
hydrogen
Application: Energy time shift, Electric supply capacity

Consumers
Storage ensures power quality & reliability
during outages as well as enables “behind
the meter” energy management practices
Technologies: Li-ion, NaS, Pb-Acid, Flywheel,
Flow Batteries, Hydrogen
Application: Time of use energy cost
management, Demand charge management,
reliability & quality

Figure 25 Need of energy storage in power sector

Energy Storage Can times have the potential to
serve as cleaner, more efficient
provide backup power in case
of emergency, or even allow
Support the Electric replacements for peal load customers to go entirely “off
Grid plants. grid,” relying on energy they
• Energy storage can support the produce themselves.
transmission and distribution In addition to supporting
To understand how new generation, transmission and
network by replacing existing
technologies can fit into our infrastructure, extending the distribution, storage technologies
energy system, we first need to service lifetime of existing can provide ancillary services,
understand how the current power lines, and reducing line which ensure that the grid operates
system operates. The electric grid congestion. Storage can help reliably.
consists of four stages: generation, grid operators avoid building
transmission, distribution and use. entirely new transmission or One ancillary service that energy
distribution lines when demand storage is particularly well suited
Generation occurs in the facilities only slightly outpaces for is frequency regulation, the
that produce electricity, from fossil capacity. In Punkin Center, second-by-second changes in
fuel power plants to wind turbines Arizona, for example, local electricity supply that are needed to
and solar panels. This electricity is utilities are installing 8 meet instantaneous peaks and dips
often transmitted across great megawatt-hours of battery in demand. Generation plants have
distances on a network of high- storage, just enough to meet typically been used for this service,
voltage power lines. Transformers peak demand during the 20 to but storage technologies have the
30 highest demand days per potential to work up to twice as
on both ends of the transmission
year.23 This investment will efficiently. This is because
lines increase the electricity’s
allow the utility to avoid technologies that can both charge
voltage before transmission and building 20 new miles of and discharge simultaneously can
then decrease it before transmission lines that would regulate frequency in two ways at
distribution to homes and be unnecessary more than 90 the same time – by adjusting both
businesses, where people can percent of the time. Energy the rate at which they are charging
instantaneously draw enough storage can also reduce strain and the rate at which they are
electricity to power end uses. on the transmission network discharging.
during midday hours when
Energy storage can fit into the many solar panels are Ramping is an ancillary service
electric grid at any of these points: providing electricity to the grid that will become more important as
by retaining some electricity renewable energy becomes more
• Energy storage can aid near the load until later in the common. Because solar and wind
generation by helping to meet day, when solar production energy have variable availability,
decreases and congestion on other energy sources need to ramp
peak demand. To ensure that
the transmission system up or down over seconds or
they can always meet demand,
dissipates. minutes to counter the changes in
grid operators currently
• Energy storage can help users these renewable sources and
employ “peak load” –
by limiting demand charges maintain the needed level of net
combustion plants that only
and offering a supplement to energy output. As with frequency
operate at times of highest
the grid. Customer-sited regulation, electricity generators
demand. Peaking plants
storage can serve as an energy have been filling this role, but the
operate for just a couple
source during a utility’s busiest rapid response time that some
hundred hours per year, and
times. This practice, known as storage technologies offer make
typically produce more
peak-shaving, can help them well suited for this service.
expensive electricity and emit
consumers avoid their utilities’
more greenhouse gases than
expensive demand charges.
baseload plants. Storage
Residential and commercial
systems with rapid response
battery storage can also
Energy storage can power production varied from 0 Energy Storage Can
megawatts (typically between 8 PM
address the variability and 7 AM each day) to 8,585 Capture Excess
of renewable energy megawatts. Renewable Energy
sources Momentary Variability When solar panels and wind
turbines are producing more energy
Wind and solar energy are not
Wind and solar energy also pose than is needed, energy storage
available on demand. The
the threat of experiencing sudden technologies enable that energy to
availability of these renewable
dips in availability for minutes or be retained for future use.
sources varies on daily and
seasonal cycles, and moment by seconds. Cloud movement can be
moment in ways that can be more responsible for reducing solar Some countries already produce
difficult to predict. Sources of availability for a few minutes at a more renewable energy at certain
electricity that are “dispatchable” – time. Second-by-second variation times than they can use at any
or that can be turned on and off to has historically been a concern for particular moment. On their
fill the gaps – such as energy wind energy as well. However, windiest days, Denmark’s wind
storage, may at times be needed to while these brief fluctuations are farms produce enough energy to
meet demand. hard to predict days in advance, power the entire country and send
researchers and energy providers their excess power to Sweden,
continue to successfully develop Norway and Germany. More
Seasonal Variability models that can forecast these locally, during the winter months,
changes in weather minutes in California sometimes produces
Both solar and wind power follow advance. This gives energy enough excess solar energy that it
known seasonal cycles. Wind operators enough time to adjust is sent to Arizona for free.
power is usually stronger during electricity supply. Many varieties
the winter, while solar energy is of energy storage, which have more Unfortunately, because most fossil
more available during the summer rapid response times than power fuel power plants are slow to turn
plants, are particularly well suited on and off, renewable energy
Daily and Hourly for supporting these short production is often curtailed when
fluctuations. supply is greater than demand. In
Variability California, solar and wind energy
When Is (and Isn’t) plants were forced to halt
production more than one-fifth of
The availability of both solar and
wind energy can vary by the hour Energy Storage the time during 2016. These
and day. Because solar power is Necessary? curtailments are becoming more
common and larger in size. In
only produced when the sun is
shining, solar PV generation is March 2017, more than 82,000
The many benefits that energy megawatt-hours of renewable
limited to daylight hours. Some storage can provide make it a
states in the Northeast average less energy generation was curtailed in
useful tool for modernizing the California – enough to power
than four hours of peak sunlight per electric grid and increasing our use
day during the winter months. roughly 147,300 California
of clean, renewable energy. Energy households for the month.
There is less of a pattern to the storage is often the most suitable
daily variations in wind energy, but Widespread deployment of energy
approach for serving the grid’s
the variations still have a large storage could help limit such
needs. However, there are also curtailments.
magnitude. Over the five days from situations in which other solutions
October 7, 2017 through October may be more effective for
12, 2017, hourly wind power integrating renewable energy onto
production within California’s grid the grid.
varied from 111 megawatts to
4,426 megawatts, and hourly solar
Other Strategies Can Also making wind energy entirely companies with the ability to
dispatchable throughout the region temporarily cut power from
Address Variability (the other two requirements – heaters, thermostats and industrial
nonstop communication between machinery – or engage behind-the-
There are a variety of strategies that windfarms and ISO headquarters meter energy storage – when
can be employed on their own or in and the existence of an algorithm demand exceeds renewable energy
conjunction with energy storage to that lets the ISO control each supply. Studies have found that
support the growth of solar and generator remotely – allow the ISO demand response can maintain the
wind energy across the grid. to make use of these forecasts). reliability of highly intermittent
Additionally, a study from the 100 percent renewable energy
Because weather can vary even National Renewable Energy systems, often at a fraction of the
over small distances, integrating Laboratory found that in regions cost of batteries.
renewable energy over a broad where wind energy supplies 24
region can greatly decrease the percent of electricity generation, Another intriguing way to
variability of energy production. improving wind forecasts by 20 transition to renewable energy with
Studies have found that increasing percent could decrease the amount limited dependence on storage is to
the number of wind turbines in a of annual energy shortfalls – “overbuild” wind and solar
region and the size of that region instances when there is not enough plants – that is, to accept and plan
can decrease the variability in the electricity generation to One of the for curtailment of renewable
amount of energy produced most cost-effective ways to energy during peak periods in order
regionally. A similar study found increase the impact of renewable to assure that sufficient renewable
that if a utility draws from 20 energy without relying on storage energy resources exist to cover
different solar plants, it can almost is with investments in energy electricity demand during periods
eliminate the instantaneous drops efficiency. By simply using less of reduced generation. This is not a
that are a risk with individual energy, the gap between the current new concept. Grid operators have
generators. Half an hour of cloud capacity of installed renewables historically relied on having excess
cover, for example, could entirely and the capacity that will generation capacity to ensure
turn off a town’s electricity supply eventually be needed shrinks. adequacy and reliability.
if they only draw from a single Energy efficiency is particularly Overproducing wind or solar
power station. However, if they’re useful for supporting high energy offers those same benefits,
drawing from 20 solar photovoltaic renewable energy penetration and may actually be the most cost-
plants across a single county, it’s because it can reduce peak demand. effective way to power the grid
likely that only a handful would be The American Council for an almost entirely with renewable
under cloud cover at any single Energy-Efficient Economy found sources. A 2012 study by Dr. Cory
point in time. that if a utility reduces electricity Budischak of the University of
consumption by 15 percent, peak Delaware found that the most
Detailed weather forecasting demand would be reduced by affordable way to meet 99.9
allows utilities to predict and approximately 10 percent. percent of demand with renewable
respond to dips in power sources involved generating 2.9
availability before they occur. New Similarly, demand response times more electricity than average
England’s Independent System reduces the challenges of demand, while having just enough
Operator (ISO) lists having access variability by curtailing demand storage to run the grid for nine to 72
to sophisticated wind speed from the grid at times when hours.
forecasts five minutes ahead as one demand exceeds supply. Demand
of just three requirements for response provides energy
 How does energy storage fit into a renewable energy
future?
An increasing number of widespread use. Greenpeace more affordable storage, and
researchers have started to outline imagines hydrogen primarily as a battery prices have declined
ways that the U.S. can be mostly or replacement for natural gas in dramatically in recent years, these
entirely powered by renewable power plants, while Dr. Jacobson researchers primarily cite the cost
energy. Energy storage figures into focuses largely on the potential for of batteries to justify their decisions
these different scenarios in a hydrogen fuel cells to power to limit the use of all storage.
variety of ways. (See Table 1.) The transportation. Conversely, Energy storage is an important tool
two pathways that predict the researchers like National Oceanic for helping America and the world
largest roles for energy storage – and Atmospheric Administration obtain 100 percent of our energy
one written by Stanford University scientist Dr. Alexander MacDonald from renewable sources. But it is
Professor Mark Jacobson and the and Dr. Budischak of the not the only such tool, and using
other by Greenpeace – use a variety University of Delaware, who energy storage in concert with
of storage types and include limited storage use or avoided it other proven and emerging
technologies like hydrogen, entirely in their own roadmaps, are strategies for balancing electricity
vehicleto-grid batteries and mostly concerned with the cost and supply and demand will likely lead
synthetic fuels, which, to varying limitations of battery storage. Even to the best results in facilitating a
extents, are not currently viable for though other technologies can offer clean energy transition.
What Types of Energy Storage Can Make a Contribution?

Existing energy storage change the phase of a substance, boreholes drilled deep into the
technologies can provide valuable such as by boiling water or a saline ground.
services to customers and the grid solution, and later allow it to
as a whole. Energy storage change back and release energy. Ice thermal storage systems, which
deployment, however, has been Thermochemical systems use use excess or non-peak electricity
limited thus far. Current chemical reactions that require to make ice, are among the most
regulations and policies are not energy input and later allow the abundant type of thermal storage,
structured with energy storage in reverse chemical reaction to take with 108 systems currently
mind, and market analyses are not place and release energy. connected to the grid. This
designed to take into account the technology has mainly been used to
full value of the diverse services Thermal energy systems can be provide air conditioning for large
energy storage can provide, leaving used to produce steam for buildings and energy storage for
opportunities for beneficial use of traditional power plants, but they the grid, but the American
storage untapped. can also be used directly in heating company Ice Energy has recently
or cooling applications. For introduced a smaller model of their
Current Energy example, excess energy can be
used to heat up a water heater in
system to be used in homes. These
systems do not degrade the way
Storage Technologies advance or create chilled water or lithium-ion batteries do and could
ice to air condition a building later. become competitive in the
The current energy storage Passive thermal storage is another residential energy storage market.
technologies tied to the India grid practice where buildings
are pumped-storage hydropower incorporate materials that store Utility-Scale Batteries
(PSH), thermal storage, batteries, heat well, like concrete floors.
compressed air energy storage These materials, referred to as
(CAES), and flywheels. Each of thermal mass, can absorb the sun’s Utility-scale batteries can provide
these technologies is explained in energy during the day and release it the grid with a variety of services
more detail below. to provide heating at night, and can and have an advantage over other
also absorb excess heat to keep the large-scale projects because they
are not location-restricted. These
Thermal Storage building cool. These direct uses of
batteries can be located along the
thermal energy are efficient for
heating and cooling because they grid’s distribution system – either
Thermal energy storage systems avoid energy losses incurred in on a community- or substation-
encompass a wide array of converting the energy back to level – or along the transmission
technologies that can store energy electricity. system.
daily or seasonally and that can be
used in applications ranging from Similar systems can be used Lithium-ion batteries have reached
residential to utility scale. seasonally – to store winter cool for market maturity in some regions of
air-conditioning in the summer or, the India for providing frequency
There are three forms of thermal more commonly, to store summer regulation services, but these
energy storage – sensible, latent warmth or excess solar energy for markets may soon become
and thermochemical. Sensible heating in the winter. This thermal saturated. Utility-scale batteries
thermal storage systems heat a energy can be stored in water in have the potential to provide the
medium, like water or salts, and natural aquifers or insulated tanks grid with many other services,
then use the stored heat to generate or pits or in the earth using including integrating renewables,
steam and drive a turbine when supporting transmission and
energy is needed. Latent systems distribution infrastructure, and
managing demand. Lithium-ion saving money and reducing peak hook up EVs like a distributed,
batteries may prove to be the demand on the grid. Owners can utility-scale battery that could store
dominant battery type for these use batteries to store energy when excess renewable energy and feed
uses as well, but zinc-based their solar panels are generating energy back to the grid, primarily
batteries may be better for larger excess energy to use when they for lower-energy services like
scale projects requiring a longer aren’t producing enough energy, frequency regulation. This
duration energy storage source, and helping to integrate and increase practice, called V2G (vehicle to
could potentially be deployed at the the value of renewable energy grid), is not currently economical,
same scales as pumped-storage sources. Larger networks of grid- but could provide utilities with
hydropower (PSH) projects. tied residential and commercial energy storage services without
batteries have the potential to be their having to purchase energy
Utility-scale batteries are not yet aggregated and controlled by a storage systems.
economical in many markets, but utility to provide grid functions and
costs have been dropping rapidly, services, such as frequency Some utilities are also considering
and some projects have already regulation and peak shaving. purchasing networks of EV
been profitable for specific uses. charging stations to use as
Between the microgrid’s avoided Thus far, residential batteries have distributed energy storage. Similar
capacity charges, peak shaving not been cost effective for to V2G, the charging stations
performance, and the frequency residential customers in many areas would be charged during low-
regulation services it provides, the of the India However, that is demand times or when excess
cost of this system is expected to be changing quickly. Costs have been renewable energy is being
recovered in no more than 10 years. dropping steadily, and batteries are generated and could also feed
often already cost-effective for power back to the grid when
Behind-the-Meter commercial use. Residential needed.
batteries already make economic
Batteries sense for homeowners in some Cars require high-performing
situations and locations. For batteries, so EV batteries need to be
Behind-the-meter batteries are example, in Hawaii, where replaced once their capacity
small systems that can be used to electricity costs are high and solar declines past a certain point. These
store energy for use in homes or owners cannot be compensated at retired batteries can still be useful,
other buildings. retail rate for supplying energy to though, and car companies like
the grid, it makes financial sense BMW and Nissan already have
There are several types of batteries for homeowners to use residential projects in the works to use their
on the market including lithium- batteries in conjunction with old EV batteries in residential and
ion, sodium-sulphur, nickel- rooftop solar to supply their own commercial energy storage
cadmium, and flow. Lithium-ion power. Current regulations in systems.
batteries, such as Tesla’s new California and some north-eastern
Powerwall and Samsung SDI’s states make residential batteries The main drawbacks of batteries
batteries, are by far the most more attractive in these locations, are that they require frequent
dominant type of grid-connected too. maintenance, can be damaged, and
battery. eventually need to be replaced.
Because the electric vehicle (EV) Many types of batteries, including
Behind-the-meter batteries provide market is projected to grow rapidly lithium-ion, contain elements that
homeowners, businesses and in coming years, utilities are also are often obtained through mining,
electric utilities with a variety of thinking of ways to use EV an environmentally harmful
benefits, such as providing backup batteries as a grid-connected process. Batteries can also leach
power during outages. Batteries energy storage resource. To ease toxic and hazardous chemicals into
can also store energy when EV demand on the grid, various the environment if they are not
electricity costs are low for use strategies are being devised to shift disposed of properly, which can
when demand and costs are high, EV charging to low demand times. potentially harm human health.
There also may be the potential to
Pumped-Storage air is compressed, it heats up Future Energy Storage
considerably and needs to be
Hydropower cooled before it can be stored. The Technologies
air then needs to be reheated before
Pumped-storage hydropower it expands and generates There are many energy storage
(PSH) is the oldest form of grid electricity. This is usually done technologies that are in various
energy storage. using natural gas. Alternative stages of development and could
technologies are being explored to potentially offer unique benefits in
PSH works by pumping water from solve this problem as well. the future.
a lower reservoir, such as a river, to
a higher reservoir where it is stored. Flywheels Hydrogen
When electricity is needed, the
water in the higher reservoir is
Flywheels use excess electricity to Hydrogen energy storage works by
released to spin turbines and
start a rotor spinning in a very low- using excess electricity to split
generate electricity.
friction environment and then use water into hydrogen and oxygen.
the spinning rotor to power a motor The hydrogen is then stored and is
PSH is an attractive energy storage and generate electricity when used in an engine or fuel cell to
technology because it can be used needed. generate electricity later, when
for long-term storage and can
there is greater demand. Hydrogen
respond to large electric loads
Flywheels are useful for making offers longer-term, higher capacity
within seconds. Traditional PSH
the grid function better through storage than other technologies, but
projects are hard to site, so firms
services like frequency regulation is inefficient and highly volatile, so
are starting to design new forms of
because they have very fast deployment has been limited.
PSH that use, for example,
response times, can charge quickly,
seawater or underground
reservoirs. Another technology is
and are very efficient. Flywheels Synthetic Natural Gas
are also advantageous because they
being developed that consists of a
are scalable, store a lot of energy in (SNG)
sphere floating underwater – when
a small amount of space, require
there is excess energy, water is
little maintenance, last for a long Synthetic natural gas (SNG) can
pumped out of the sphere, and
time, and have little impact on the be made by taking hydrogen
when energy is needed, water is
environment. (produced in the same manner as
allowed to flow back into the
sphere and powers a generator. described above) and combining it
Flywheel deployment has been with carbon dioxide. The SNG can
limited, though, because most then be stored, transported, and
Compressed Air Energy current flywheels have very short burned just like natural gas, using
Storage discharge times, so they are not existing infrastructure. The whole
useful for storing large amounts of process consumes as much carbon
energy. The discharge time of dioxide as it produces. This process
When electricity is needed, the air flywheels is projected to increase, is inefficient and currently
is released into an expansion though, and there is already one uneconomical, but could provide
turbine, which drives a generator. flywheel currently tied to the grid longer-term energy storage than
CAES can provide massive energy with a 4-hour duration and another other technologies, and be used in
stores for grid applications, but proposed. Flywheel deployment applications that require more
appropriate sites for CAES are hard has also been limited because their energy-dense fuels until better
to find, so new options, like upfront costs are higher than alternatives are identified.
aquifers and depleted natural gas batteries, but some estimates
fields, are being explored. indicate that they have much lower
lifetime costs.
The biggest drawback of CAES is
that it is highly inefficient. When
Other Technologies released down the track and their intended to be built and used by
motion will drive a generator. This utilities.
system generates more power per
There are new energy storage height differential than pumped-
technologies still being developed storage hydropower.
that could become important in the
future, as well. For example, the
Gravity Power company has Advantages and
designed a system that consists of
two water-filled shafts, one wider
drawbacks of current
than the other, that are connected at technologies
both ends. When there is excess
energy, water is pumped down the Each type of energy storage offers
smaller shaft to raise a piston in its own advantages and limitations.
larger shaft. When energy is Energy storage can be most useful
needed, the piston is allowed to if we build new projects that use a
sink down the wider shaft, forcing variety of technologies at a variety
water through a generator. of scales, serving the diverse needs
of the electric grid and helping to
One innovative project currently integrate a mix of renewable
under construction in Nevada is energy technologies.
called Advanced Rail Energy
Storage. This system will use Similarly, some types of storage
excess energy to pull modified are better suited for residential or
railway cars up a special track. commercial use, while others are
When energy is needed, the cars are
 Energy storage is becoming mainstream for India
In the last few years, India has been storage space, and the development towards India, recently, there were
making huge strides in of cutting-edge solutions and reports of SECI (Solar Energy
transitioning to renewable energy, batteries. Corporation of India) ensuring its
and is today, one of the top 10 tender for renewable projects in
countries in the world utilising With the Government aiming for Lakshadweep, to include energy
solar power. However, there is still 100% electrification of households storage, based on guidelines set by
potential that remains untapped, under SAUBHAGYA (Pradhan MNRE (Ministry of New and
and to make renewable energy a Mantri Sahaj Bijli Har Ghar Renewable Energy).
successful source to answer all Yojana), coupled with the growing
power needs, it is important to have demand for non-conventional With growing traction in the
a means to store the surplus power sources to power energy needs, the floating solar and electric vehicle
generated. need is urgent. However, as we, as segments, the focus on energy
a nation, take an expedited growth storage solutions has increased
This is because non-conventional path towards the elimination of many fold, as a result of which, it
energy sources, like Solar, Wind, power deficiency and transition to has moved beyond traditional
and Hydro, among others, do not renewable energy, not having a segments. The success of the EV
have a constant production. For system to store the energy segment, especially, relies mostly
instance, while it might not be generated on the grid presents a on an efficient energy storage
possible to harness the power of the huge barrier. solution. This has led to both
sun at night, with energy storage traditional battery companies and
solutions, one can use the stored In addition to that, most grids in the new entrants realising the potential
energy, based on the requirement, country are thermal-fed. The of aligning their focus towards
irrespective of whether the power is hesitation to transition is based on developing Lithium-ion batteries
being generated at the time or not. the fluctuations that are seen in the that can provide the requisite push.
In fact, energy storage is today the output, making direct grid
only way to reduce our carbon connectivity an area of concern. The evolving technological
footprint, and become a country While during the day, there is a landscape of the energy sector has
reliant on clean energy! balance, the usage witnesses a peak made energy storage a reality for
during evening. Energy storage solar power. Considerable
Currently, there is a severe lack of solutions or batteries provide the developments in the domain have
utility scale energy storage option for the requisite linear also led to several major players
solutions across the sector. While output that can address many of including energy storage in their
developments are in place, the these challenges. IPP projects, or extending their
implementation needs to be quick offerings towards making e-
and efficient. It was only recently 2018 remains a turning point with mobility a reality. This, in turn, has
that renewable energy achieved respect to energy storage and when had a resulting effect on the
certain economies of scale, leading conversations around it becoming capacity to expand its reach and
to them becoming comparatively mainstream. Globally, nations are realise its potential. To make it a
affordable and accessible. This has accepting and understanding the reality, the industry needs the
made it possible to consider importance of energy storage support of the Government,
renewable energy as a viable solutions and incorporating it in through subsidies and schemes that
option, and has led to the energy tenders. In the United will make energy storage
development of a wide range of States, experts have shared that in accessible and affordable. Today, it
supporting infrastructure, the next 3 – 4 years, all tenders is imperative to develop energy
including investments in robust pertaining to renewable energy will storage as a focused revenue
energy storage solutions. It has also have mandatory clauses regarding generating segment of India Inc.,
been possible, in large part, due to energy storage. This was an which is balancing economic
the innovative technology now important step towards taking output with sustainability, and
available to companies in the initiatives for the deployment of
large-scale solutions. Looking
taking India forward, towards a capacity, tied to 78 megawatts of started picking pace in India. Seven
greener tomorrow. solar PV. tenders with a total storage capacity
of 84 MWh (with 78 MW of solar
Looking towards India, recently,
there were reports of SECI (Solar
The first three tenders PV capacity) have been issued in
the last one year. These tenders
Energy Corporation of India) have been issued by SECI, NTPC
invited bids for 3.6 gigawatt-hours The country has been launching and NLC predominantly in remote
grid-scale energy storage tenders areas of Jammu & Kashmir,
of storage connected to 1.2
since 2017. But until recently the Lakshadweep, Himachal Pradesh
gigawatts of solar on India’s
attempts to bring large-scale and Andaman & Nicobar Islands.
interstate transmission system, batteries to India were mostly ill-
the biggest battery solicitation There is huge market interest in
fated. storage tenders but participation in
seen in the country so far.
tenders is still limited because of
The first three utility-scale energy specie eligibility conditions
The auction came hot on the heels storage tenders, issued by SECI requiring minimum construction or
of several other SECI solicitations. and NTPC with an aggregate operational experience and/ or
Also, this month, SECI put out a capacity of 35 megawatt-hours, domestically sourced content.
call for two 150-megawatt-hour were cancelled without Mahindra Susten, L&T, BHEL,
battery systems to be connected to explanation. Hero, S&W, IBC Solar, Exide have
100-megawatt solar farms in been amongst the most active
Andhra Pradesh. In 2017, SECI tried again with a bidders so far. There has also been
28-megawatt-hour battery plant in some concern from the private
Last month, meanwhile, saw SECI the Andaman and Nicobar Islands, sector that storage specifications
calling for a 42-megawatt-hour for NLC India. The NLC India are not clearly defined. But we
battery system to go with 14 project, which is due for believe that this aspect is
megawatts of solar in Ladakh in commissioning this April, was improving slowly as awareness of
northeast India. widely reported as being the first storage technologies is improving
utility-scale energy storage plant in gradually and procurement
The corporation also requested bids the country. authorities are beginning to dene
for a 20-megawatt floating PV specifications in more detail.
plant in Lakshadweep, an However, that honour likely
archipelago off the southwestern belongs to a 10-megawatt joint There have also been two new
coast of India, with 60 megawatt- project by Mitsubishi and the U.S. wind-solar hybrid tenders (160
hours of battery storage. energy storage company AES, MW and 600 MW) issued in
commissioned and operated by Andhra Pradesh with optional
“These tenders will boost energy Tata Power Delhi Distribution. storage component. India’s current
storage deployments up in next few grid-scale commissioned storage
years,” observed Le Xu, senior capacity is only 10.75 MWh. AES
The 10-megawatt-hour Advancion
research analyst at Wood and Mitsubishi inaugurated a 10
system went live last month in New
Mackenzie Power & Renewables. MW, 10 MWh facility in Delhi.
Delhi to provide grid stabilization,
Other relatively small systems are
improve peak load management,
The SECI auctions come on top of located in remote villages in West
add system flexibility, enhance
seven storage tenders in the last Bengal (1.73MW), north-east (6.85
reliability and protect critical
year, Bridge to India, a New Delhi- MW) and Lakshadweep islands
facilities, said battery vendor
based analyst firm, said last month. (2.19 MW). The market holds huge
Fluence in a press release.
potential particularly as the
growing share of variable
Those tenders were issued by SECI
and the utilities NLC India and
Storage tenders pick renewable energy – up from 5.6%
in 2014 to 10.6% in 2018 – creates
National Thermal Power up in India a formidable challenge in
Corporation (NTPC), and After years of anticipation, grid maintaining grid stability. Because
amounted to 84 megawatt-hours of scale storage tenders have ally
of environmental and commercial the market. The Government of manufacturing and policy support.
concerns associated with India has been planning to issue a It is expected that announcement of
traditional storage systems National Energy Storage Mission NESM – due imminently – would
including pumped hydro, we along the lines of National Solar provide a major boost to the
believe that battery-based energy Mission with specific targets for market.
storage systems would dominate capacity deployment, local

Tendering Location Capacity Tender Current Winner RFS

Authority Scope status issue
date
SECI Lakshadweep 20 MW EPC RFS - Feb
floating issued 2019
solar, 60
MWh
storage
NTPC Andaman & 8 MW BOO Bid - Mar
Nicobar solar submitted 2018
Islands
NLC Andaman 20 MW EPC Result Mahindra Apr
solar, 8 announced 2018
MWh
storage
SECI Leh 3 MW EPC Result L&T Jul
solar, 5 announced 2018
MWh
storage
SECI Himachal 2 MW EPC Bids - Jul
Pradesh solar, 1 submitted 2018
MWh
storage
NTPC Andaman & 17 MW EPC Result BHEL(INR Mar
Nicobar solar, 6.8 announced 98 2018
Islands MWh million/MW)
storage
NTPC Andaman & 8 MW EPC Result BHEL Mar
Nicobar solar, 3.2 announced 2018
Islands MWh
storage

Table 11 RE & storage integrated project

Battery Gigafactory
National elections in May this year Recently, Prime Minister Narendra The announcement came shortly
are not expected to greatly change Modi’s cabinet approved a after the Andhra Pradesh Economic
the outlook for renewables, Wood National Mission on Development Board and solar and
Mackenzie said. This might be Transformative Mobility and battery manufacturing firm Urja
expected to boost demand for Battery Storage, under which two Global signed a memorandum of
energy storage, which is becoming phased manufacturing programs understanding to make lithium-ion
increasingly competitive as the cost will be introduced across the batteries and electric vehicles.
of lithium-ion batteries falls. country.
The initiative will see Urja Global
At the same time, Indian The first of these will support the investing ₹2 billion ($28.55
manufacturing concerns are keen to setting up of battery Gigafactory million) in manufacturing centres
gain a foothold in the fast-growing across India, while the second will across Andhra Pradesh, Mercom
battery market. focus on electric vehicle India reported.
manufacturing.

With growing traction in the The evolving technological through subsidies and schemes that
floating solar and electric vehicle landscape of the energy sector has will make energy storage
segments, the focus on energy made energy storage a reality for accessible and affordable. Today, it
storage solutions has increased solar power. Considerable is imperative to develop energy
many fold, as a result of which, it developments in the domain have storage as a focussed revenue
has moved beyond traditional also led to several major players generating segment of India Inc.,
segments. The success of the EV including energy storage in their which is balancing economic
segment, especially, relies mostly IPP projects, or extending their output with sustainability, and
on an efficient energy storage offerings towards making e- taking India forward, towards a
solution. This has led to both mobility a reality. This, in turn, has greener tomorrow.
traditional battery companies and had a resulting effect on the
new entrants realising the potential capacity to expand its reach and
of aligning their focus towards realise its potential. To make it a
developing Lithium-ion batteries reality, the industry needs the
that can provide the requisite push. support of the Government,
 India’s energy storage mission
Battery manufacturing represents a In fact, the report’s authors only companies to foster battery cell
“huge economic opportunity for mention addressing the need for manufacture domestically.
India”, according to a draft batteries for the stationary storage The industry across India should
‘National energy storage mission’ market once this all-electric “develop partnerships and a multi-
(NESM) document, which outlines consumer transport future has been stakeholder consortium” for
how the country could capture reached. conducting joint research, pooling
value across the supply chain and In March, power minister R.K investment as well as developing
accelerate the country’s adoption Singh chaired a meeting with better battery tech and recycling. A
of renewable energy. battery-based energy storage consortium should also be
The Indian government Ministry of manufacturers calling on them to convened to help inform
New and Renewable Energy set up manufacturing units in India, government, officials and other
(MNRE) issued a statement stating that a “Make in India” stakeholders on how
towards the end of last week policy supporting such efforts and standardization, recycling and end-
announcing the publication of a similar to ‘Make in India’ policies to-end strategy should evolve in
joint report on the potential for for other sectors was forthcoming. future.
scaling up domestic manufacturing In the short term, the industry also Stage 2
of batteries for EV. Written by received a boost just a few weeks In the second stage, battery cell
NITI Aayog – (the National ago when the rate of the newly research conducted by the
Institution for Transforming India) introduced Goods and Services Tax aforementioned consortia will
and US think tank Rocky Mountain (GST) - applied across all sectors inform decisions on implementing
Institute (RMI), the 36-page of the Indian economy – that a strategy for domestic battery cell
report makes key policy is applicable to lithium-ion manufacturing. Participants will
recommendations to take place in batteries, was cut by 10%. also be expected to establish best
three distinct stages. Three-stage recommendations practice plans for the full
While the MNRE statement The NESM draft document manufacturing value chain,
referred to energy storage as “one recognizes that India lacks including investment in new
of the most crucial and critical significant natural resources in battery chemistries where
components of India’s energy terms of the materials commonly appropriate and recycling. The
infrastructure”, with the mission used in batteries. Due to its focus battery manufacturing consortium
itself and its Expert Committee on mobility, the majority of will also be putting together its
brought together to achieve an discussion in the report centers supply chain to feed into its future
objective of becoming a leader in around nickel-manganese-cobalt plans.
the energy storage sector, the report battery chemistries as these are the Stage 3
focuses almost exclusively on the most commonly used energy The third stage would bring the
manufacture of batteries for EVs. storage devices in EVs. various stakeholders together
The NESM also suggests Stage 1 across India to coordinate the
incentives and other ways to The report recognizes therefore rolling out and use of batteries as
accelerate the market, such as tax that in the short term at least, Indian part of the country’s energy
incentives and land grants for manufacturing could or should infrastructure. There would also be
manufacturers as well as the focus on assembling battery packs a “rapid scaling” of battery cell
streamlining of permitting domestically using imported cells manufacturing infrastructure. The
systems. from competing vendors. So, at report takes as an example Tesla’s
India is aiming for 100% of car first, India should incentivize and decrease of close to 80% in its
sales to be electric by 2030, which encourage investment in this battery manufacturing costs in the
NITI Aayog and RMI said was battery assembly sector, while years between 2010 and 2016 as its
ambitious but achievable, with a simultaneously also investigating if much-vaunted Gigafactory project
supportive government and an the means exist for individual was announced and then got
“active and involved consortium”. underway.
“India must carefully consider how against early factories’ becoming “India must carefully consider how
to enter this marketplace, and a stranded assets if battery to enter this marketplace, and a
large part of the battery chemistries shift.” large part of the battery
manufacturing consortium’s role There are all kinds of drivers for manufacturing consortium’s role
will be to advise on a collaborative deploying new and renewable will be to advise on a collaborative
strategy for development,” the energy in India, including strategy for development,” the
draft document said. improving energy access for rural report adds.
“Part of the purpose of the populations and support for The lack of lithium reserves in
consortium will be aligning Indian domestic industries. NESM India is not thought to be a major
battery cell manufacturing behind a highlighted one obvious advantage barrier to adoption. The report
singular strategy to reduce costs of investment in batteries being that states that even by 2030, only about
through mass manufacture and “every battery purchased will 0.7% of known global lithium
shared development, de-risking reduce oil imports for many years reserves will be used to meet rising
cell manufacturing investments to come, improving future years’ demand for EV batteries.
and using market reconnaissance trade balance and reducing India’s
and alert R&D groups to guard exposure to oil price shocks”.
 Policy Recommendations
Energy storage is on the rise. exclude energy storage, or do (ISOs), regionally, should
Installed capacity is increasing, not sufficiently consider and structure their regulations to
costs are falling, and people are address energy storage’s unique allow energy storage systems to
starting to recognize the big role attributes, thus restricting it from be fully valued. This would
it can play in supporting the grid connecting to the grid or include allowing storage to
and getting us to a clean energy participating in energy market participate in both wholesale
future. However, there are opportunities. and capacity markets, and
hurdles preventing utilities and considering the stacked value of
consumers from fully embracing States can help remove these all the grid services that storage
energy storage. barriers by clarifying their provides.
existing grid connection policies
In spite of the looming need for
energy storage and the
to specify
Recommendations that storage
Policy Require Utility
immediate benefits it can is allowed to be connected to the Storage
provide, growth has been limited grid and lifting requirements
for a few reasons. Many that require generators to be able Energy storage is a multi-
electricity providers are not fully to provide power for a certain functional resource that utilities
aware of the many uses and amount of time to participate in can use to support increasing
benefits of energy storage and, the energy market. Federal renewable power generation and
therefore, don’t consider it when regulators can facilitate this by avoid more costly investments
grid management needs emerge. requiring the nation’s grid in grid infrastructure. Energy
Additionally, many commercial operators to allow energy regulators – FERC, RTOs, ISOs
customers are unaware of the storage to participate in their and state public utilities
current energy storage market, energy markets. commissions – should enact
and therefore don’t consider it policies and regulations that
when planning energy
investments. Thirdly, energy
Design the Markets encourage energy storage
adoption now to ensure that the
market policies and regulations to Fully Value grid is stable in the future. States
written before energy storage
technologies were developed
Energy Storage can aid in this by incorporating
energy storage into their
can artificially undervalue renewable portfolio standards,
energy storage or even prevent Currently, energy regulators and or by establishing stand-alone
energy storage from utilities assign value to energy energy storage procurement
participating in the market or systems based on their mandates. State mandates
attaching to the grid. categorization as either a should prioritize energy storage
generation, transmission and technologies that not only help
distribution, or end use resource. to integrate renewables and level
To remove these barriers and
This categorization works well demand peaks, but also increase
ensure that energy storage is
deployed in the most beneficial for traditional energy systems, resiliency by providing power
but energy storage falls into all during outages.
manner, policymakers should
three categories. Because energy
enact the following changes.
storage can only currently be
valued as one resource type, it is Incentivize
Remove Barriers to artificially undervalued. FERC, Residential and
Energy Storage nationally, and the nation’s
regional transmission Commercial Storage
organizations (RTOs) and
In most states, existing policies independent system operators
and regulations either explicitly
Energy storage is valuable in deployed behind the meter, or homeowners to install energy
different ways depending on directly attached to customers’ storage systems. This can be
where it is attached to the grid. facilities.156 Since behind-the- done by offering tax incentives
To reap the full benefits of meter storage systems offer or by incorporating storage into
energy storage, state mandates unique benefits both to the grid new or existing renewable
can require that a certain amount and to the user, states should energy or energy efficiency
of energy storage capacity be incentivize businesses and incentive programs.
Analysis of EV CHARGING INFRASTRUCTURE

POLICY & REGULATION OF INDIA

ELECTRIC VEHICLES CHARGING INFRASTRUCTURE
Just as there are a variety of type of vehicle will fit your up with gasoline if needed.
technologies available in lifestyle depends on your Powering the vehicle with
conventional vehicles, plug-in needs and driving habits. Find electricity from the grid
electric vehicles (also known out which BEVs and reduces fuel costs, cuts
as electric cars or EVs) have PHEVs are available to suit petroleum consumption, and
different capabilities that can your needs. reduces tailpipe emissions
accommodate different compared with conventional
drivers’ needs. A major All-electric vehicles (AEVs) vehicles. When driving
feature of EVs is that drivers run only on electricity. Most distances are longer than the
can plug them in to charge have all-electric ranges of 80 all-electric range, PHEVs act
from an off-board electric to 100 miles, while a few like hybrid electric vehicles,
power source. This luxury models have ranges up consuming less fuel and
distinguishes them from to 250 miles. When the producing fewer emissions
hybrid electric vehicles, battery is depleted, it can take than similar conventional
which supplement an internal from 30 minutes (with fast vehicles. Depending on the
combustion engine with charging) up to nearly a full model, the internal
battery power but cannot be day (with Level 1 charging) to combustion engine may also
plugged in. recharge it, depending on the power the vehicle at other
type of charger and battery. times, such as during rapid
There are two basic types of acceleration or when using
EVs: all-electric vehicles If this range is not sufficient, a heating or air conditioning.
(AEVs) and plug-in hybrid plug-in electric vehicle PHEVs could also use
electric vehicles (PHEVs). (PHEV) may be a better hydrogen in a fuel cell,
AEVs include Battery choice. PHEVs run on biofuels, or other alternative
Electric Vehicles (BEVs) electricity for shorter ranges fuels as a back-up instead of
and Fuel Cell Electric (6 to 40 miles), then switch gasoline.
Vehicles (FCEVs). In over to an internal combustion
addition to charging from the engine running on gasoline Following some best
electrical grid, both types are when the battery is practices can help you
charged in part by depleted. The flexibility of maximize your all-electric
regenerative braking, which PHEVs allows drivers to use range and vehicle efficiency
generates electricity from electricity as often as possible whether you have an AEV or
some of the energy normally while also being able to fuel PHEV.
lost when braking. Which
 A hybrid electric vehicle AEVs (all-electric vehicles) PHEVs (plug-in hybrid
is a type of hybrid vehicle are powered by one or electric vehicles) use
that combines a more electric motors. batteries to power an
conventional internal They receive electricity by electric motor, plug into
combustion engine plugging into the grid and the electric grid to
system with an electric store it in batteries. They charge, and use a
propulsion system. The consume no petroleum- petroleum-based or
presence of the electric based fuel and produce alternative fuel to power
powertrain is intended to no tailpipe emissions. the internal combustion
achieve either better fuel AEVs include Battery engine. Some types of
economy than a Electric Vehicles (BEVs) PHEVs are also called
conventional vehicle or and Fuel Cell Electric extended-range electric
better performance. Vehicles (FCEVs). vehicles (EREVs)
 How to charge Electric Vehicles?
EV Charger is an electrical one is mechanical function. The charger has three key
device that converts First electrical function is functions:
alternating current energy to rectification process and
regulated direct current for second one is controlling and • Getting the charge into
replenishing the energy of an regulation of supply voltage the battery (Charging)
energy storage device (i.e. according to battery charge • Optimizing the charging
battery) and may also provide acceptance characteristics. rate (Stabilizing)
energy for operating other The mechanical function is • Knowing when to stop
vehicle electrical systems. the connecting of the EV to (Terminating) The block
There are 3 functions that the EVSE and this process is diagram of EV charging
must be performed to allow performed by the user. The system is given below.
charging of the EV battery charging scheme is a Main parts of this system
from an electric supply combination of the charging are charger control unit,
network. The two of them is and termination methods. charging cable and
electrical functions and other vehicle control unit.
 The different EV charging methods
EV Charging System is an The inductive method, in better way to increase user
equipment required to contrast, works through comfort and could be a key
condition and transfer energy electromagnetic transmission feature for electric mobility.
from the constant frequency, without any contact between
constant voltage supply the EV and the charging The third possibility takes into
network to the direct current, infrastructure. The charging consideration the swapping of
variable voltage EV traction spot is equipped with wires discharged batteries with
battery bus for the purpose of which carry an alternating fresh ones in a swapping
charging the battery and/or current, during the EV is at the station. However, for this to
operating vehicle electrical right place. The alternating be possible the dimensions
systems while connected. current creates an and internal connections for
Generally, there are three electromagnetic field, which the batteries must be
main ways of charging: affects the receiver (also standardized. Each electric
conductive charging, consisting of wires) in the EV vehicle from each
inductive charging and by in a way that a current is manufacturer would have to
changing the battery. induced and charges the have virtually the same size,
battery. Currently, both the shape and type of battery. As
Using the conductive method, automotive industry and this reduces the OEM’s
the battery is connected by a operators of charging stations freedom of design and given
cable and plugged directly prefer conductive charging that the choice of placement
into an electricity provider. because it is much cheaper of the battery would be
and more efficient. Yet there severely reduced, most of the
are several R&D projects manufacturers are considering
which focus on the further reject this method.
improvement of inductive
charging, because it offers a
 Conductive charging of Electric Vehicle
Power from the transformer
gets stepped down to 110 or
220 volts (V) and passes
through a service panel that,
in turn, connects to the
charging equipment itself.
These connections can be
achieved with a basic cable
or, in addition, can require
more effort like trenching or
cutting through pavement or
building structures to link
with the charging station.
There are three basic types of
EV charging station, each
with different requirements
and capabilities.

AC Chargers
DC Chargers
Power Output -
2.5kW/3kW Level - 1
Voltage - 230V • Voltage - 48V/60V/72V Level - 2
• Power Output -
Single Phase 10kW/15kW
• Voltage - upto 1000V
• Power Output -
• Current - upto 200A
30kW/150kW
 EV Charging Infrastructure
Electric charging station is an A rectifier needs to sit fast as the battery can take
element in an infrastructure between the grid and the it—typically ten times faster
that supplies electric energy battery to convert one to the than home.
for the recharging of electric other. For home and third
vehicles, such as plug-in party public charging this AC- Whole setup, takes a 12 kV,
electric vehicles, including to-DC conversion is done by 750 kVA feed from the utility,
electric cars, plug-in hybrids, the EV’s on-board rectifier. steps it down to 480V three
etc. Charging stations are AC current at the charge port phase on site, pushes that into
inevitable part of electric is converted to DC for the 2000A switchgear which
vehicle ecosystem as the battery by the rectifier. feeds four banks of charging
whole world is moving Superchargers deliver high units at 480V/200A. Each unit

Level 1

Slowest form of charging Connected to household outlet 2-5 miles charging per hour

Level 2

220/240V & 30amps charging Charging at home or public station 10-25 miles range per hour charging

Level 3

480V charging DC charger 80% faster

toward electric vehicles.. voltage, high current DC contains twelve 10 kW

electricity directly to the EV’s rectifiers (the same “rectifier”
Electricity from the grid is battery, bypassing the that is found in EV’s) giving a
delivered as alternating onboard rectifier. This allows total of 120 kW per pair of
current (AC) but the EV the Supercharger to push pods.
requires direct current (DC). electricity into the battery as
 What Should the Charging Infrastructure Mix Be?
Just as there are different workplace charging, 96–97% own designated parking
makes and models of of charging is done at home space.
combustion engine cars for or work. For people without a
different needs, there are charger near their home, being Drivers may have parking
various types of EV users who able to charge at work is the garages at their home, but
have different places they can next best thing. getting permission from the
charge at different times. A building owner or manager to
municipal EV infrastructure The convenience and low cost install a charging station is
plan must consider these of plugging in when you get extremely difficult for an

Figure 26 Benefits of smart charger

different users, as well as how home or get to work is such a individual. Municipalities
to plan, zone, and legislate for major benefit of electric cars have tools to incentivize or
the charging needs of the that cities should work hard to encourage charger installation
future. maximize these options. in these places, which we
People who have a garage or outline below.
Home & Work designated parking place can
Around 80% of EV charging install a plug or charger there.
is done at home if drivers have However, most people in
a place at home to charge. If European cities live in
they have home charging and multifamily apartment
buildings, often without their
People who don’t have Here are some suggestions for economies of scale, be
parking garages or dedicated each area: much cheaper, reduce
parking spaces at their homes queues, and allow siting
(i.e., residents who use public Public Spaces near services or apartment
on-street parking) have ▪ In dense areas without blocks to attract and

Figure 27 EV charging infrastructure mix

separate needs. They can’t reserved parking, allocate conveniently serve users.
just install a charging station a certain percentage of the
on a public street themselves. spaces (i.e., 10–20%) for ▪ Adopt a policy of
These are locations where EV charging. • installing public AC
cities should either come in charging stations as
and install ▪ Create charging hubs. residents request them.
stations themselves (with a These would be areas This is a market-driven
dedicated municipal budget with a large number of (not top down) approach
for such infrastructure) or chargers next to each that has worked
invite charging station other (i.e., 10- 20). This exceptionally well in
companies to do so under could simplify grid access Amsterdam, one of the
specific guidelines. issues, create top cities in the world for
construction/installation EV adoption.

AT HOMES AND WORKPLACES

6-11kW charging ports may be fine, but if these are parking areas in which each parking space isn’t
dedicated to an individual, 22kW charging ports would be more effective for maximizing EV charging
access and convenience at a reasonable cost.
▪ Special consideration charging stations spaces be parking for
should be given to electric themselves. electric vehicles,
taxi charging and including the station,
charging of other ▪ Educate key decision signage, and special
predictable, high- makers such as apartment colouring on the
utilization vehicles. They building boards, parking pavement.
can provide a regular garage and managers, etc.
revenue stream but also on the technical Shopping Centres, Cafes, &
occupy available requirements, safety, and Restaurants
charging stations for benefits of EV charging
infrastructure, as is done It is also very important that a
extended periods of time. public charging network
in California.
▪ In dense areas, offers convenience in terms of
overarching EV charging ▪ Offer incentives to location and charging speed
station coordination is employers who install for those persons needing a
needed to optimally plan charging points in their “top up” during the day or for
charging infrastructure offices/garages, such as is EV drivers who don’t have
(and maybe some done in France and the home or workplace charging.
charging hubs). Local United Kingdom. Key locations for such
government can best play charging stations should be
▪ When it comes to new medium-stay “hot spots” such
this role. construction, it is far as:
Multifamily & Office cheaper for this wiring to
Buildings be installed during ▪ Shopping centres
original construction
The core challenge with rather than added in later,
parking garages at many so:
existing buildings is that — Require or incentivize
tenants do not have that new construction
permission to have an projects be “EV ready” by
electricity outlet/charging including wiring for
station installed. Additionally, charging stations in the
many parking spaces don’t walls, floors, or ceilings
have adequate wiring in place near parking spaces. This
for adding a charging station. is already the case in
London and many cities
You can: in California, and the EU
▪ Require parking garage has already proposed
managers to permit legislation requiring this
individuals to add or by 2025.
upgrade the wiring to — Go a step further by
support charging stations requiring that new
at their parking space and construction projects
have charging stations include EV charging
installed. stations as a certain
percentage of the
▪ Require that parking parking spaces. Require
garage managers include that 10% of parking
a certain number of
 ▪ Restaurants people driving long distances. 50 kW, but more ideally
In general, major points of 100—350 kW. Such charging
▪ Coffee shops entry/exit into a city should stations need to be highly
▪ City centres also have charging stations visible and easy to access,
nearby. These should be fast especially for visitors coming
▪ Sports/exercise facilities charging locations with a from others cities or countries
minimum power capacity of and unfamiliar with the area.
▪ Major government
administrative offices
While 3–11 kW charging
stations are okay for “topping SOLAR POWERED CHARGING
up” an EV, real-world
experience shows that such
charging rates often don’t
STATION
serve the full needs or
preferences of drivers. It is Charging stations can also be powered by solar energy.
ideal to have at least 22 kW
charging stations at these Number of solar panels can be placed on roof of charging
locations, and/or CCS and station. This solar panel will deliver power to charging
CHAdeMO DC fast chargers. point.
Motorways Use of solar will reduce load on power grid and will also
Charging stations along save considerable amount of fossil fuel used
motorways are important for

OKKO FILLING STATION NETWORK, UKRAINE

Okko saw the potential in EVs early on. The innovative filling station company worked with go
to-u to deploy 34 free-to-use 22kw charging stations at their filling stations on motorways in
ukrain. Many of these okko rest area also include coffee shops or restaurants allowing drivers to
relax over a coffee or a meal while their vehicle is charging. In this way, okko was able to
leverage its locations to take a leading position in the EV charging market and establish a solid
reputation. The stations are free for drivers to use, but paid for by okko
 Recognizing the charging-capacity gap
Consumers rank not having A base-case scenario for EV example, compare a city like
enough access to efficient adoption suggests Los Angeles, with many
charging stations as the third approximately 120 million single-family low-rise homes
most serious barrier to EV EVs could be on the road by that have parking garages,
purchase, behind price and 2030 in China, the European with Manhattan, where high-
driving range. That’s Union, and the United States rise multi-unit apartment
according to consumer survey (figure 29). The aggressive- dwellings prevail. These two
of buyers considering battery- case scenario could see that cities will have extremely
powered EV in China, double. Along with different different EV charging-
Germany, and the United levels of EV adoption across infrastructure needs
States. With EV prices regions, structural
declining and ranges considerations will make
expanding, charging could charging-station demand
soon become the top barrier. highly localized. For
Big energy assumed EV adoption, total
miles driven per year, and the
vehicles, which typically only
refuel at gas stations, EVs can
demand, but where average kilowatt-hours recharge at multiple locations
to charge? required per mile (a miles- in multiple ways. Our model
per-gallon equivalent). While analyses charging across four
Total charging-energy
280 billion kilowatt-hours use cases that all assume
demand for the EV vehicle
sounds like a big number, it wired plug-in chargers: at
population across China,
represents less than 10 percent home, at work, in public, and
Europe, and the United States
of current US energy demand on highways for long-distance
could grow dramatically from
while reflecting the trips. Other use cases and
2020 to 2030, increasing from
requirements of all four technologies are emerging.
roughly 20 billion kilowatt-
markets. For example, wireless
hours to about 280 billion
charging or streetlight
kilowatt-hours (figure 30). Unlike traditional, internal- charging, while potentially
This estimate reflects combustion engine (ICE)

Source: - Market report and publications

Figure 28 EV adaptation projected

viable, are not included in this who use an EV as a second car may need to visit fast-charge
analysis. only for commuting or stations; and drivers who
errands, this scenario is forget to charge at home or
The energy consumed at unlikely at scale for several don’t have home chargers
home and in the workplace reasons. For instance, drivers must rely on other options,
will depend on the number of without chargers at home or making the case for public
chargers installed and the work must charge in public; charging.
amount of energy those drivers who exceed their
chargers provide. Home
charging will depend on
whether EV owners have
garages and on their income
demographics. Charger
penetration at work will
predominantly reflect
employer choice or regulatory
requirements.

However, people do not only

use their vehicles to drive to
and from work.
Approximately 3 to 6 percent
of total miles driven involve
long-distance trips that
average more than 100 miles.
Even with a full charge
leaving home, most of today’s
EVs cannot make that round-
trip without recharging. This
makes the case for long-
distance chargers.

Combined home, work, and

long-distance charging could
in theory cover an EV owner’s Source: - Market report and publications
entire energy demand. While
battery range on a given day
potentially true for drivers

Figure 29 Growth of energy demand

From home to (figure 31). The high
penetration of single-family
2020 onward. In China, public
charging will dominate and
work to public homes in states with high EV increase in importance over
charging adoption will drive this time, going from 55 to 60
demand, particularly in percent in 2020 to
California and the Pacific approximately 80 percent by
People tend to follow a Northwest. China should have 2030. The structural
charging hierarchy that starts much lower penetration of limitations of highly dense
at home. Most individual home charging because there urban cities, which have
passenger cars remain parked are fewer single-family larger proportions of on-street
for eight to 12 hours at night, homes. Even when and large-commercial-garage
and home charging can be considering public-cantered parking, are the catalysts for
easy and often cheaper than alternatives, the importance of increased public-charging
charging elsewhere. The home charging will remain demand.
reasons: in most countries, highly relevant in the United
States. In the near term, low levels of
residential electricity is
public charging should
cheaper than commercial or
In the European Union, as therefore not significantly
industrial electricity, and most
EVs go mainstream, charging hinder EV adoption in the
charging can happen
will likely shift toward public European Union and United
overnight when off-peak
options and away from the States. The situation looks
electricity prices are lower.
home over time, with the different for China, where
In a home-cantered base case, share of home charging over half of the energy will
approximately 75 to 80 declining from approximately come from public sources.
percent of EV owners in the 75 percent in 2020 to about 40 Furthermore, the importance
United States and European percent by 2030. That’s of public charging will likely
Union should have access to because more middle- and grow stronger by 2030,
home charging, which should lower-income households reinforcing the need for
provide up to 75 percent of without home-charging strategies based on target-
their energy needs in 2020 options will buy EVs from market needs.
 Source: - Market report and publications
Figure 30 Energy demand
 Current scenario of charging infrastructure in India
Electrification of mobility is implemented from April 1, while the others are still under
still in nascent stages in India 2019, apart from setting up the process. Along with
but significant growth is 2700 charging stations by the Delhi government will be
expected over the next 5 2024, the ministries will be installing 131 charging
years. According to an installing EV charging stations in the capital over the
estimate of EAI, by mid-2018, stations on each side of major next three months in
India had about 400 slow highways after every 25 Km. collaboration with the MoP.
charging stations and 150 fast Along with this, installing
charging stations. However, charging stations have been As per the industry, till last
as per an estimate by the made mandatory at residential year, there was confusion
Ministry of Heavy Industry and other buildings also by the about the type of business
and Public Enterprises Ministry of Housing and models to choose for building
(MoHIPE), in the cities with Urban Affairs (MoHUA) and charging infrastructure for
population more than four at least 20 per cent of the total EVs because it was not clear
million vehicles parking capacity of if the batteries of EVs would
like Delhi, Mumbai, Ahmeda these buildings will be mean distribution of
bad, Surat, Lucknow, and reserved for EVs. electricity, like fuel at pumps,
others, one public charging which would need a separate
station per three km would be To build an ecosystem for license under the Electricity
required for achieving the EVs, the state-run Energy Act of 2003, or would there be
electric vehicle (EV) mission Efficiency Services Limited a metering system and the
of 2030. (EESL), which has been electricity would be taken
tasked by the centre to boost from the local DISCOMS
The government has recently electric mobility in country, (electricity distribution
started making efforts to has floated a tender for 4,500 companies)
install more charging stations chargers for installing in
in major cities. It aims to Delhi-NCR (National Capital However, in December 2018,
install 2700 charging stations Region) last year, to cater to the MoP ascertained that
across India in the next three 10,000 e-cars being procured setting up of EV charging
years. As the number of for government officials in the stations will not require any
charging stations has started coming few years. Along with specific licenses under the
increasing, people have this, many installations are Electricity Act and can be set
started noticing the efforts taking place in the country at up by anybody and at any
towards building a robust a pilot level, offering free place where the required
charging infrastructure. charging services to power capacity is available.
consumers. This is because according to
To take these efforts further, the MoP, the charging of the
Ministry of Power (MoP) and EESL will also be installing battery of an electric vehicle
MoHIPE have come together 84 fast charging stations at by a charging station involves
to set up the required charging some locations in New Delhi providing a service and not
infrastructure under a scheme Municipal Corporation the transmission, distribution
to boost electric mobility (NDMC) by the end of March, or trading of electricity. This
called Faster Adoption and where the EV users will be landmark decision of the
Manufacture of Hybrid and allowed to top up their government has given a boost
Electric Vehicles (FAME). vehicle’s batteries in 15 to the EV sector.
Under the recently launched minutes for Rs. 30. As many
second phase of FAME or as 25 installations have
FAME II, which was already been completed,
Charging EVs With initiative, Madhya
Pradesh Urja Vikas Nigam
Renewables Limited (MPUVNL), Bhopal
which purchased seven
electric cars from EESL on a Battery Swapping
Shifting charging of EVs pilot project basis for its
to renewable energy like solar senior officials, is running
energy from the conventional According to SMEV,
them purely on solar power. battery swapping has also
source which is thermal
power, would help in Using solar-based charging emerged as a feasible
decreasing the carbon stations for EVs will also help solution for public
emission caused by thermal in taking off additional load transportation system
sources. Solar power based from the grid and ensure
stations could play a energy security. At present, including e-buses and e-
significant role in achieving according to the MoP, the rickshaws as the driver
the mission 2030 as gradually renewable energy capacity of just need to exchange the
all the players involved in the country stands at 74.08 dried out detachable
charging of EVs would shift Gigawatt out of the total
to renewables, said Mr. battery with a fully
power production of 349.288
Phokela. He further said that, Gigawatt. As per the data charged one without
according to an estimate by from MoP, about 25 Gigawatt having to wait for hours to
Ernst & Young, by the year of renewable energy, is charge the vehicles and
2030, EVs are expected to currently coming from solar lose passengers.
reduce emissions by almost energy. The Ministry of New
40 per cent, compared to and Renewable Energy Sun Mobility, founded by
combustion engine vehicles if (MNRE) targets to generate
run on electricity produced 175 Gigawatt of renewable Chetan Maini who created
from renewable sources. energy by 2022 to cater to the India’s first electric car
demands of EVs and other Reva, has set up battery
He also said that even if the energy efficiency initiatives.
electricity used for running swapping shops
EVs continue to be coal- in Bengaluru and plans to
dependent, carbon emissions set up 100 such shops
are still likely to reduce by at across the country by the
least 20 per cent.
end of Financial Year
Setting an example of using 2019-2020.
solar energy to power EVs, as
part of its green transportation
 Policy measures for creating charging infrastructure
Unlike conventional vehicles at residence, people would
which cannot be refuelled prefer to charge their electric
without dedicated fuelling vehicles at their work places. One of the key aspects
infrastructure at designated
locations, one of the positive During the day, for the city with electric vehicles is
aspects with electric vehicles commuting, people will want that these can be
is that these can be charged at to top-up the EV battery at
every reasonable opportunity charged at many places
many places like homes,
and place say for e.g. at like homes, workplaces,
workplaces, malls, parking
spots etc. However, proper shopping complex or malls, parking spots etc.
and suitable charging commercial complex. We
may expect that unless people unlike conventional
infrastructure will need to be
have a stop-over of 2~3 hours vehicles which cannot be
in place at such locations. A
wide spread and easily or more, they will not want to refueled without
accessible charging network charge at such places.
However, for taxi fleets for
dedicated fueling
will be most crucial for mass
the want of running more infrastructure at
adoption of electric vehicles.
As a daily practice and use kilometre per day, need for dedicated locations.
pattern, it is likely that most of public chargers (with
preference for fast charging to
However, proper and
the times, people will have
reduce down-time) will suitable charging
their electric vehicle charged
before they will start a day. In become significant. For inter- infrastructure will need to
the absence of parking places city commuting, more of fast
be in place at such
locations.

Figure 31 Worldwide EV charging

Source-International infrastructure
Council on Cleanscenario
Transportation, White Paper
chargers will be needed at voltage or current (or both), is generally linked with
stop-overs on the highways to which will increase the cost of electric vehicle adoption.
allow top-up. It may be noted the EV and have an impact on Places with higher electric
that for fast charging in 30 battery life. vehicle uptake tend to have
minutes or less, electric more publicly available
vehicle will have to be As illustrated in Figure 32, charging infrastructure.
capable for taking such high availability of public charging
It is also noted here that cost. Based on the available location and density of
deployment of public duration for charging, electric vehicles, a
chargers is less where there is locations like homes combination of slow and fast
availability of parking space (residential and curb-side) chargers will be required.
and access to home charging and work places would be
(like California), whereas it is ideal for AC slow charging
more where there is scarcity while places where vehicles
of private charging and halt for a shorter duration (less
parking space (like than 2 hours) like commercial
Amsterdam). (Source: ICCT) complex, highways etc., fast
charging would be a more
Different segment of vehicles suitable candidate (within city
(2W, 3W, PVs, CVs) may commuting, taxi will have
require different type of relatively more demand for
charging standard (& top-up as compared to a
connector), however, the private use). Buses will need
charging infrastructure, at- captive charging at depots
least at public places, should which will be mostly fast
be common to the extent charging (both AC and DC).
possible to reduce the infra Therefore, based on use case,

Source-International Council on Clean Transportation, White Paper

Policy, regulations may be accorded to have
policy measures and
Governments can also support
by various other strategies
and standards for regulations around building like providing land for setting
charging private charging network up of charging station,
(homes, multi-unit dwellings, subsidized electricity tariffs,
infrastructure workplaces, and other such collaborate with residents and
captive places). The Table 13 property owners to install AC
provides a snap-shot of what slow charging infrastructure
Multifaceted and is going on in various in shared parking facilities
collaborative efforts would be countries to enable home and promote consumer
required in promoting early awareness in multi-unit
charging infrastructure:
establishment of charging dwellings. Automobile
infrastructure. Early charging One of the pressing questions industry can also collaborate
infrastructure will be crucial, is how to address needs for with banks and power
and Govt. will surely need to residents living in apartments companies to form a joint
play a leadership role. (multi-unit dwelling) and venture and form a
Eventually, with growth in residents that do not have nationwide network of
number of EVs and viable access to proper parking charging stations (including
business models, businesses place. Investments in creating fast charging stations).
will be willing to set-up and parking lots with charging
operate charging points could be considered
infrastructure. with an active policy support
to take care of both providing
Various government around
parking and charging
the world have earmarked
facilities. Workplace charging
funds for setting up of can also serve as a major
charging infrastructure (Table resource. Research has shown
12). that people are 20 times as
The scale of such support likely to buy an electric
indicates a substantial vehicle if there is access to
commitment of the charging at their workplace.
government towards electric Charging infrastructure
mobility. There are examples requires substantial
from various metropolitan installation, operation and
cities around the world where
maintenance costs and can
municipal governments in also incur significant costs for
these cities have funded many land procurement (in India
charging stations in land is a premium). Demand
collaboration with the utility aggregation of home and
bodies. National government workplace chargers (AC
bodies in countries like charging) can be a great lever
Netherlands, China, to reduce prices as well as to
Germany, France etc. have have such charges installed at
funded municipalities to a mass level. EESL and other
install charging infrastructure. such government agencies
Private charging, both at can run a program for
home and at the workplace, procurement of AC chargers
will represent the majority of in bulk and offer at affordable
electric vehicle charging. prices to individual users,
Therefore, a higher priority RWAs and Corporates.
 Country/City Program Budget Mechanism of
Support
Germany • €300 million for 10,000 Level2 €300 • Subsidies for 60%
and 5,000 DC fast charging million of costs for all
stations eligible businesses
($285
million)

Japan • Next Generation Vehicle Upto • Grants to local

Charging Infrastructure Yen governments &
Deployment Promotion Project 100 highway operators
• Nippon Charge Service billion • Public-private
government-automaker ($1 partnership
partnership billion)

Netherlands • “Green Deal: (curbside chargers €33 • Contracts tendered

on request) million to businesses on
($31 caseby-case basis
million)

Norway • Enova grant scheme from 2009 • Quarterly call for

onwards proposal for
targeted projects
United • Curbside stations for residential BP 2.5 • Municipalities
Kingdom use million apply for grants.
• Highways England building DC ($ 2 Installers
fast charging stations along major million) reimbursed
roads in England • Grants and tenders
administered by
BP 15 public body
million
($12
million)

United • Grants for funding public $15 • Matching grants

States charging stations through million for local
American Recovery & government
Reinvestment Act

Table 12 :Summary of major national-level charging infrastructure programs in selected markets

 Country/City Program Mechanism of Support
UK Level 2 Charging at Homes Incentive of up to 75% of
hardware & installation cost (up
to 500 Pounds)
Quebec (Canada) Level 2 Charging at Homes Incentive of up to 600 CAD on
hardware & installation cost for
240 V Station
California Green Building Standards Code Regulation to have 3% of all
parking spaces in commercial
buildings include “make-ready”
infrastructure for charging
stations.
Europe EU Directive Directive that will require a
charging point in every new or
refurbished home beginning in
2019.
London Regulation Requires charge points at 20% of
parking spaces in all new housing
project as well as make-ready
infrastructure for an additional
20% of spaces
Germany Mandate Considering new policies to
mandate charge points or make-
ready infrastructure in all new
building, as well as policies to
streamline construction of
charging stations in existing
building

Table 13 Table 6: Summary of schemes in various countries to enable home charging infrastructure
 Country/City Program Mechanism of Support
US Workplace Charging Challenge Regulation to increase workplace
charging stations by 10 times by
2018 from 2013 level
Quebec Branché au Travail program Funding to businesses and
municipalities offering free
charging to their employees
Massachusetts The Massachusetts Electric 50% of the funding (up to
Vehicle Incentive Program $25,000) for hardware costs to
employers for promoting
workplace charging
UK Workplace Charging Rebates for initial purchase and
Scheme by OLEV installation cost
France ADVENIR program Goal of installing 6,300 at
workplaces
Norway Enova Program (agency funded Provides funds for workplace
by oil marketing companies in charging infrastructure
Norway)
Table 14 Summary of schemes in various countries to enable workplace charging infrastructure