Solar power plant model

For all interested in becoming a solar powered energy developer in India, it's important to comprehend the various business designs under which solar energy plants get built.

Power plant development belongs more towards the infrastructure sector rather than consumer product industry, in feeling these tend to be opportunities that pay back well ultimately, plus in these tend to be companies that count on long-term agreements without powerful short term purchase deals.

This post from Solar Mango discusses some of the crucial aspects that any developer of MW solar energy flowers ought to know.

Please be aware that this post is mainly about company models for MW-scale, grid attached power flowers rather than for roof solar energy plants that the company designs might be rather various!

For company interested in having MW scale solar power plants, initial and most important concern they need to ask by themselves is: who can buy the energy?

The response to this question to a substantial level will determine the business and revenue model the power plant, and in addition nearly determine the danger and return profiles. To a certain extent, the sort of customer could also figure out the economic returns on project.

Biz models for energy scale solar india

Business Versions for MW Scale Solar

Broadly, you can state that purchase of energy is often to an electric utility (typically a government owned electrical energy board) or even a private company. Within the unique instance where in fact the personal organization is the master of the energy plant, it becomes a Captive Consumption model.

Each of the above business avenues is explained below.

Purchase to Utility (DISCOM)

Utility usually relates to state energy generation or distribution organizations (TANGEDCO, APTRANSCO, MAHAGENCO) or any other big main power entities eg NTPC.

There are two techniques you might offer power to these condition resources.

  • PPA/FIT – A Power Purchase contract (PPA) is finalized aided by the DISCOM, usually for 25 many years, in which the price of power (Rs./kWh) is either determined through competitive bidding or a Feed-In-Tariff (FIT) is fixed because of the government. Here is the top kind of energy sale in India these days
  • One of many very first FITs in the united states ended up being the Gujarat easily fit in 2009 at Rs. 15 (many years 1-12) and Rs. 5 (Years 13-25)
  • In contrast, the newest announced allocation for Telangana (April 2015) caps the bids at Rs. 6.45/kWh (for the whole 25-year duration)
  • APPC + REC – The solar power plant creator sells capacity to the DISCOM at Normal Pooled energy price (APPC) which will be fixed by each state, and is often less than the PPA/FIT tariff (Madhya Pradesh APPC – Rs. 2.79/kWh; Karnataka APPC – Rs. 3.06/kWh). The developer furthermore receives Renewable power Certificates (RECs) which can be offered to entities with a Renewable acquisition responsibility (RPO). This design is not to well-known in India due to poor sales of RECs
  • Sale to Private Customer

    A private business is liberated to purchase power from whoever they desire, with only a few constraints affixed. You could offer the energy generated to personal businesses as well. This path typically is through an electric acquisition agreement.

  • PPA –The solar power plant designer signs a PPA with an exclusive customer available of energy. The price is usually determined considering settlement. The PPA term may only be 5 years in the beginning. The exclusive consumer should make an application for Open Access to get energy from any person other than the energy
  • Solar designers just who sell power to exclusive consumers are entitled to RECs, supplied the consumer just isn't under A Solar power Purchase Obligation
  • Captive Intake

    For power plant designers whom also happen to be operating energy intensive companies, the third route to sell power is by the captive use of the solar power generated by their own power-plant.

  • The solar plant developer can be the customer of power. Here, the cost to consumer is the cost of acquiring solar powered energy during the center in other words., arrived cost of energy
  • A captive plant do not need to be positioned within center. If situated some length through the center, the expense of transferring capacity to the center (including open accessibility costs) should be compensated into the grid operator. This cost should be added to the cost of generation of solar powered energy to-arrive at the landed cost of power at facility
  • Solar generation under captive usage normally entitled to RECs, provided that no concessions were obtained.

    Source: www.solarmango.com
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