5 MWp Solar PV Power Project

Rajasthan Solar Policy 2011 & Exergy’s Offerings

Proposal for Project Conceptualization Services

(Special Reference on Brief Analysis on Rajasthan Policy)

(Private and Confidential)

3rd May 2011

Proposed By:-

Solar Division Office: D-32, Sector 7, Noida, India. ZIP: 201301

Tel: +91-9999676750 Fax: +91-11-2271 9366
Web: www.exergy.in Email: info@exergy.in
 Contents

Aim of this Document ................................................................................................................ 3

EXERGY: Partners for Solar Energy .............................................................................................................. 4
Our Expertise ............................................................................................................................................ 5
Our Clientele ............................................................................................................................................. 8
DETAILED SCOPE OF WORK .................................................................................................. 9
Appendix 1: POLICY REGIMES UNDER RAJASTHAN SOLAR POLICY 2011 .......................18
Setting up of Solar Power Plants in Rajasthan for direct sale to Discoms of Rajasthan.......18
and CSP based power plants. .................................................................................................18
Phase-1 (up to 2013): 200MW .................................................................................................18
Phase-2 (2013-2017): 400MW (additional) ..............................................................................18
The minimum allocation is 5MW and maximum 10MW for Solar PV. ..................................18
The minimum allocation is 5MW and maximum 50MW for Solar Thermal..........................18
Setting up of Rooftop PV and other Small Solar Power Plants connected to LT/11kV Grid:
.................................................................................................................................................19
Utility Grid Power Projects for sale through RE (Solar) Certificate Mechanism: .................19
Setting up of Solar Power Plant for promotion of manufacturing facilities in the State. .....20
Off-Grid and Decentralized Solar Plants ................................................................................20
Solar Parks ..............................................................................................................................21
Land .........................................................................................................................................21
Time Schedule .........................................................................................................................22
2. Approvals facilitation & Project Registration .....................................................................22
4. EPC services .........................................................................................................................22
 Aim of this Document

This document has been prepared by Pan Exergy Pvt Ltd (hereinafter together
referred to as “Exergy”) to provide a comprehensive proposal which includes:

(a) Solar Site Identification and Selection Services;

(b) Preparation of Detailed Project Report

(c) Project Registration Services

for 5 MWp Solar PV Power Project in Rajasthan, proposed by “the Client”.

 EXERGY: Partners for Solar Energy
EXERGY SOLAR, the Solar vertical of LSquare
Solutions, is a technology agnostic and knowledge
intensive consulting house, lead by a powerful team
offering innovative services & technology solutions in
the field of Solar Photovoltaics & Solar Thermal.
Exergy was founded with the strong vision of
adopting a leadership role in solving today‟s key
issues of energy crisis and climate change.
Exergy Inc has been a defining force for Solar Power
in India. It has grown as India's largest Solar
Consulting Group, having offered services to over
650MW Solar plants which are at various levels of
execution. Its consulting team consists of top Solar
Consultants of India having a sound knowledge in
solar technologies, latest trends, regulations and
finance. They have strong academic qualifications
having graduated from IITs & IIMs. Some of our
esteemed clients include TATA Power, GAIL, EIL,
JK Cement, ACC, CCCL, Gammon Infra, Airtel.
 Head Quartered in New Delhi,
India
 Branches in Vadodara, Hyderabad
& R&D Centre at IIT Kharagpur.
 Leading Solar Infrastructure
Service Provider with a clientele of
650MW SPV & CSP.
 Only company offering PINCH
technology services (Process
Optimization)
 Partners with of the largest CDM
development company in the world
 Extensive network of partnership.
 Formally Accredited with Ministry
of New & Renewable Energy, GoI.
 JV Association with Engineers
India Ltd (EIL) for Solar EPC
Contracts.

We are engaged in projects of 100MW capacity specifically under Rajasthan Solar Policy
2011 under PPA & REC regimes.

Further, Exergy boasts of successfully executing several Solar PV Rooftop & Ground
mounted turnkey EPC execution (largest being 150 kW Rooftop Plant). Our strategic focus
has remained on efficient execution of Solar PV Plants specifically in the range 5kW ~
150kW. Our emphasis has been on engineering improvisations, on-site optimizations, web
based efficiency models. We have direct collaboration with IIT Kharagpur for Solar based
R&D.

We provide a complete range of Solar Services including Lumpsum Turn Key EPC Services
for Solar Farm development, Project Conceptualization & Documentation including
Bankable Detailed Project Reports, Application Support for JNNSM Projects, Technology &
Site Assessments, Solar Land Banks, Construction upto Commissioning & Plant Start-up
Assistance and O&M services.

Our Expertise
We leverage our industry knowledge and technology strength to provide „concept-to-
completion‟ solutions for your energy requirements using Solar Photo Voltaic (SPV) &
Concentrated Solar Power (CSP) technology. We offer solutions in the following categories:

Grid-connect MW sized Solar Farms

Stand-alone Battery backup System
Roof-top solar solution
Off-Grid Solar Solutions
Grid/ DG/Wind Hybrid System (in any combination)
These systems come with different mounting options frames.
Our Clientele
 DETAILED SCOPE OF WORK

The whole scope of work is divided into following major 4 Phases of activities. The
project is conceived starting from the activities of Phase 1. The remaining phases
are subject to signing PPA with the government or adopting Renewable Energy
Certificate (REC) route for project development.

Phase 1: Project Conceptualization Services

Scope of Work Deliverables

1. Solar Site Selection & a. Demonstrating 3 viable Govt. or

Identification private land of around 25 acres.

a. Solar Land Bank Assessment b. Site Evaluation & Technical

Feasibility Services.
b. Solar Resource Assessment
Studies c. Jamabandi Maps for the chosen
location.
c. Energy Yield Studies
d. Clearances on the land selected.
d. Comparative Analysis of
chosen sites e. Identifying suitable land brokers,
patwaris for land acquisition process.

2. Preparation of Detailed Project Exergy Shall prepare a DPR comprising

Report following

a. Project justification
b. Site Study, Energy Yield
Calculations
c. Technology, Assessment &
Recommendation
d. Technology selection and probable
provider
e. Technical design description
 f. Power evacuation scheme and power
conditioning units
g. Implementation schedule
h. Cost Estimates, BOM , Layout
Drawing and Schematics, Financing
Pattern and Financial Analysis,
i. Organization chart/Manpower
requirements
j. Environmental aspects
k. List of Statutory requirements
3. Project Registration Services a. Project Registration at RREC.

a. Assistance for filing b. Necessary follow ups with each govt.

application with Govt. offices involved.
authorities.
c. Power Evacuation Clearance.
b. Preparation of Preliminary
DPR for Govt. clearances. d. DPR Approval

c. Power Evacuation Scheme & e. Project Recommendation Certificate

Grid Interfacing Clearances. from RREC.

d. Project Recommendation &

Clearance.

Note: The actual land acquisition will be undertaken by the client itself and Exergy shall facilitate
the process. Any incidental or liaisoning expenses shall be payable separately by the client.

Exergy shall support the client during the acquisition process of the site. It
will be part of initial deliberations with the brokers and the govt. officials
responsible. In case of the failure of negotiations Exergy shall suggest another site
in lieu of the previous one or another land broker as the case may be. For this
purpose Exergy shall conduct a maximum of 3 site visits with the client.
We also recommend that one representative is appointed by the client to oversee the work
and choose the land among various land patches we propose after our initial technical
screening.
Phase 2: Detailed Engineering, Design & Analysis

This phase will cover detailed engineering of the project & preparation of drawings
documents by specialist civil, structural, mechanical, and electrical & instrumentation
engineers. Computer aided design techniques are extensively used as design aids to help
develop optimum layout & design to assure maximum construction, operational &
maintenance convenience. Scope of this activity shall be,

Technology Selection & Necessary Collaborations, MoUs.

SWOT analysis

Site Study and Solar Resource Assessment Studies and Energy Yield
Calculations for selected location and expected CUF

Technology/Site specific feasibility

Mode of project implementation

Implementation schedule

1. Mechanical Design

o Plot Plan and Equipment Layouts for various buildings and area

o Selection of technology and Array Design

2. Electrical Design

a. Design of power evacuation system

b. Design of inverter system & their paralleling System

c. Design of wiring system, cabling details and cable layouts

d. Estimation of auxiliary power (Normal and Emergency)

 e. Design / Sizing and specification of Electrical equipments like Transformers,
Switchgear (H. T. & L. T.), Cables, Lighting fittings etc

f. Electrical system study including Relay Co-ordination

g. Design and specification of Variable Speed Drives for special applications

h. Design and specifications of various service systems like Plant

Communication, Fire Alarm and Detection etc.

i. Detailed design of AC junction boxes & Diodes.

j. Design of Lightening Arrestor system

k. Design of 66kV Substation, yard layout and layout for power evacuation
system.

3. Instrumentation

a. Design and specifications of Instrumentation and Control Systems including

PLC etc.

4. Architectural, Civil & Structural

a. Architectural, Civil and Structural design including estimation of quantities

for tender document, plot development, drawings for statutory approvals and
construction drawings for all buildings / areas,

b. Detailed foundation design

All relevant designs/drawings shall be provided to the client.

Phase 3: Technical Support during Project Setup

During this phase, we shall act as an owner‟s engineer and perform following activities.

Project Design Verification

Detailed engineering drawings and documents submitted to the EPC

Contractor shall be verified by specialist civil, structural, mechanical,
electrical & instrumentation engineers whether the precise design details
are practically implemented.

Detailed drawings and Bill of Materials will be checked for ensuring

highest degree of accuracy and quality control.

Monitoring of specifications of equipment and material for procurement.

Planning & Schedule Monitoring

We shall monitor and report if EPC partner adheres to effective & timely
implementation of projects through detailed assessment of work
quantum, meticulous planning, and micro level scheduling.

In addition, quantitative progress of the various phases of project will be

measured and reported back to the client through a well-designed
reporting system which enables complete evaluation of project
performance.

Procurement Monitoring

We shall monitor the whole procurement activity to make sure that turnkey contractor is
purchasing quality material and hiring competent vendors as agreed in the MoU. We shall
monitor following comprehensive procurement activities, and report any kind of
discrepancies going against the interests of client.

Vendor identification, evaluation & enlistment

 Entire purchase activity, floating of enquiry to finalization of order.

Order placement

Progress monitoring & expediting

Inspection

Transportation planning & control

Technical Monitoring

This will include following,

a. Visual quality check of all the material and equipments delivered at the site.

b. Comparison between actual quantity delivered with bills of material and delivery
note

c. Monitoring of techno-financial sustainability & viability of all the mechanical &

electrical works.

d. On-site support on mounting structure installation and solar panel mounting,

trenching, cable routing, earthing points and connection, Inverter positioning/PCU,
data monitoring system, power evacuation and substation construction.

Civil Construction Monitoring

We shall monitor the quality and layout of all the civil constructions including foundation
for solar panels, office, security guard cabins, roads etc. and report any kind of discrepancy
going against the client.

Plant Startup Assistance and Quality Check

We shall minutely monitor the final commissioned plant to check,

a. Delivering the promised amount of electricity

b. All the equipments are working satisfactorily

 c. Civil construction is satisfactory

d. Properly connected to the grid, as promised in the turnkey contract

Phase 4: Operation & Maintenance

This Phase will include Off-site monitoring of the satisfactory functioning of the Solar PV
power plant and equipment for 3 months post commissioning.
 TIMELINE

Zero date:
Placement of a clear and confirmed order/Mandate in favor of M/s Pan Exergy Pvt. Ltd.
alongwith the payment of the agreed advance amount.

Time Line for Completion of Phase 1

Exergy shall propose three sites within 2 weeks from the Zero date.

Exergy shall submit land selection-cum-feasibility report within 3 weeks from

Zero date.

The necessary project documents shall be submitted at Rajasthan Renewable

Energy Corp within 4-5 week time from Zero Date. Therefore, your company will
be registered for Solar Power Project within 6 weeks time.

Tentative time schedule for RREC Recommendation shall be within 1-2 months
provided all necessary data sought is provided in time.
 Appendix 1:
SUMMARY OF POLICY REGIMES UNDER
RAJASTHAN SOLAR POLICY 2011

Setting up of Solar Power Plants in Rajasthan for direct sale to Discoms of

Rajasthan.

The State will promote setting up of solar power projects for direct sale to Discoms
of Rajasthan. The total capacity under this category will be distributed equally
between SPV and CSP based power plants.

The total maximum capacity under this category for

Phase-1 (up to 2013): 200MW

Phase-2 (2013-2017): 400MW (additional)

Selection of these Solar Power Projects shall be through tariff based competitive
bidding process.

The minimum allocation is 5MW and maximum 10MW for Solar PV.

The minimum allocation is 5MW and maximum 50MW for Solar Thermal.

(With Gujarat State expecting only 25%-35% of its allocated projects to be completed
on time; we will see a similar trend in Rajasthan. But since many will have already
gone through the learning phase the success % could be higher than 40% but will be
less than 75%).
(NVVN’s reverse bidding has failed to excite the global solar community. Hopefully
the industry and the government will learn the lessons and we may see a much better
tariff rate in Rajasthan bidding process).

Utility Grid Power Projects for Captive use /Direct sale to 3 rd Party/States other
than Rajasthan through Open Access for promotion of investment in Rajasthan

Solar Power Producers are allowed to set up Solar Power Plants of unlimited
capacity for captive use or sale of power to 3 rd party/States other than Rajasthan.

(Will these solar developers be able to sell RECs in the open market? If not; how
many 3rd party sales are we expecting in solar with a per unit price of above
Rs.10~Rs. 12)

Setting up of Rooftop PV and other Small Solar Power Plants connected to LT/11kV
Grid:

(i) The Rajasthan State will promote deployment of Roof Top and Other Small Solar
Power Plants as per guidelines of MNRE.

(ii) The State will promote setting up of small solar power plants connected at 11kV
grid of 1 MW capacity each for direct sale to State Discoms of Rajasthan. The total
capacity under this category will be 50 MW. The selection of the projects will be
through tariff based competitive bidding process.

Utility Grid Power Projects for sale through RE (Solar) Certificate Mechanism:

The State will promote Solar Power Producers to set up Solar Power Plants of
unlimited capacity for sale through RE (Solar) Certificate mechanism. The Power
generated from these power projects shall be purchased by Discoms of Rajasthan at
Pooled Cost of Power Purchase as determined by the appropriate Commission from
time to time. The Solar Power Producers will sell RE (Solar) Certificates as per the
regulations/orders of appropriate Commission.
Setting up of Solar Power Plant for promotion of manufacturing facilities in the
State.

The State will promote Solar Power Producers to set up Solar Power Plants along
with Solar PV manufacturing plants in Rajasthan. The target under this category
will be 200 MW up to 2013.

Those Solar Power Producers who establish SPV manufacturing plants (thin film
technology modules or crystalline technology modules involving processing from
wafers stage) of minimum 25 MW per annum capacity in Rajasthan will be eligible
for sanction of SPV based Solar Power Plant. The capacity allocation for
manufacturing plant will be as follows:-

For more than 25 MW but less than 50 MW; capacity power plant allocation is 10
MW

50 MW and above 20 MW; capacity power plant allocation is 20MW

(In a new industry like solar; we have seen companies starting with a manufacturing
capacity of 10MW -12MW but not 25MW. The equipment cost does go up higher
while moving from 10MW to 25MW. But what hurts the most is the working capital,
the labor and the ability to sell in the market).

Off-Grid and Decentralized Solar Plants

1. The State will also promote decentralized and off-grid solar applications,
including hybrid system as per guidelines issued by MNRE to meet various
electrical and thermal energy requirements.

Some of the major applications of solar thermal technologies include solar water
heaters, solar cooling systems, air drying, steam cooking, power generation,
sterling engine.
The off grid photovoltaic applications include solar PV home lighting, police
stations, communication and lighting, Small powered looms, solar inverter, solar
PV pumps, powering computers in schools, Small milk chilling plants, refrigeration
for medicine in primary health centers and Hybrid systems for Powering telecom
towers etc. The off-grid solar applications shall be promoted for replacement of
diesel based generators sets. Guidelines and incentives issued by MNRE from time
to time shall be followed in State for promotion of decentralized and off-grid solar
applications.

Solar Parks

The Rajasthan State will develop Solar Parks of more than 1000 MW capacity in
identified areas of Jodhpur, Jaisalmer, Bikaner and Barmer districts in various
stages.

Land

The allotment of land to the Solar Power Projects will be done as per the provisions
of Rajasthan Land Revenue. The Government land required for Solar Power Plant
shall be allotted to Solar Power Producer at concessional rate of 10% of the DLC
rate (agriculture land).

For setting up Solar Power Plant on different technology, maximum allotable land
to the Solar Power Producer shall be as follows:

a. SPV on thin film: 3.5 hectares per MW

b. SPV on crystalline technology: 2.5 hectares per MW

c. Solar Thermal (CSP)- Parabolic Trough/Tower Technology: 2.5 hectares per MW

d. Solar Thermal (CSP) - Parabolic Trough with Storage Facility /Tower/Other

Technology :
For PLF upto 23%; 2.5 hectares per MW. Then every 1% increase in PLF brings in
0.1 hectare/MW additional land.

Time Schedule

a. Upto 5MW: 15 months from SLEC approval

b. 5-10MW: 24 months from SLEC approval

c. 10-25 MW: 30 months from SLEC approval

“SLEC” means State Level Empowered Committee constituted under the provisions
of this Policy.

Some of the points not covered above include more details on land, technical details
on grid connectivity, the list of approvals needed and the process of application.

For more for details on the policy, please feel free to visit the website of Rajasthan
Renewable Energy Cooperation Limited: www.rrecl.com.

We are assisting our clients with the following services:

1. Govt/Private Solar specific Land assistance and allotment in Rajasthan

2. Approvals facilitation & Project Registration

3. Special Consultancy Services for Renewable Energy Certificates Markets (REC).

This is an upcoming and most attractive route for Solar Power Developers. We have
the rich experience of working on more than 100MW of Solar Projects at IEX (Indian
Energy Exchange for our Developers including Tata Power).

4. EPC services