EPC

POWER

SOLAR

RESOURCES

INFRASTRUCTURE

Workshop for Solar Energy and Smart Grid Development, Sept 13-15, 2011
Venue: The Gateway Hotel, Jodhpur
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Date: September 13, 2011

Corporate Overview

One of Indias leading Integrated Infrastructure players

Gross Revenue over 11000 crores (as on March 2011)

Diverse businesses in 5 Sectors

Global Presence (20 states in India & 7 other Countries)

Employees over 7000

Partners in progress: Genting, Harbin, GE, Dongfang, Doosan etc

Member of

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Relevance: Lanco Group- Pan India Presence

3290 MW of Installed Capacity (Thermal, Hydro, PV) 8000 MW Power Plants under construction Largest Pvt Sector Power Trader Strong EPC Capabilities 7000 Employees

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Lanco Solar Thermal Value chain strategy

Developer

EPC

O&M

Asset Management

Strategy Use Lanco groups leverage as an EPC player to become an important player in Solar Thermal space, globally

Scale can be achieved by

offering complete solution, at a competitive price

Place teams in established as well as upcoming markets, globally, to develop

healthy project pipeline, supply-chain logistics and specialized knowledge base

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Diwakar Solar 100 MW

Location Askandra village, Nachna Tehsil, Jaisalmer district, Rajasthan Capacity 100MW with 4 hour Thermal Energy Storage (Molten Salt) Technology: Parabolic Trough Technology Tie-up: Initec energia SA, a group company of ACS Cobra group. EPC: Lanco Solar energy Private Limited. Estimated CUF = 35% Financing: Closed - (Debt Consortium of Banks) + Equity (Diwakar Solar) Present status Basic engineering is currently under progress. Major equipment orders are being placed. Timelines Project is on track to be commissioned as per the timelines indicated in the PPA. Target COD March 2013

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Our View on the Mission a National Opportunity

- Job Creation (at all levels : unskilled to highly skilled) - Wealth Creation - Knowledge Creation

- Lower Costs - Widespread use of clean solar power

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Solar Knowledge base and Technology

Solar Resource Assessment (GHI, DNI) : Satellite Based Estimates & Ground Measurements
Solar Photovoltaics (PV) Technology PV production whole value chain Equipment PV production whole value chain Grid Connected Solar Farms EPC, Inverters, Monitoring Systems Design and Engineering Solar Thermal (CSP) Equipment/Technology: Solar Fields, Power Block Suitability of technology for local geographic and environment conditions Technology Equipment Design and Engineering

Risk Assessment and Insurance Financing Grid Extension, Availability and Stability
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Salt storage Generate steam at night!

Source: SENER, SolarPACES

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CSP - Parabolic Trough

Steam turbines specific for solar Absorber tubes New generation heat transfer fluids like molten salts etc Direct steam generation Heat storage media

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Demo Projects - Proposed configurations : Global Case 1 bidding

Sl # Technology configuration Up to 50 MW capacity with air/ hybrid cooling; the minimum capacity would be 20 MW. 50 MW capacity with up to 30% gas hybridization 50 MW capacity having operating temperature over 500 C No of projects Other remarks Reduction in water consumption to 25% or less of the benchmark figure of 3000 litre per MWh. Stand alone solar power plant with up to 10% energy from auxiliary source Total gas consumption in a year will not be more than 30% of the total generation of the plant based on total units of electricity generated in a year. Stand alone solar power plant with up to 10% energy from auxiliary source

2 3

1 1

Solar Augmentation of the existing coal thermal power plant

Solar - biomass hybrid plant of 1- 3 MW capacity Base load capacity solar stand alone plant of up to 10 MW capacity; the minimum capacity would be 3 MW.

Integration Strategy: Solar energy to be added to supply steam to the plants cold reheat line and/ or the steam extraction lines for the plants feed water heater. Energy output of the solar plant to be monitored against declared performance. To be May be considered under R&D programme to provide capital decided subsidy. The turbine capacity to be maximized for solar radiation conditions. Solar contribution to be over 25%. 4 to 5 The developer to have dedicated biomass supply chain for projects the project The project may have thermal storage for non-solar hours with up to 10% energy from auxiliary source

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1. Air cooling
Up to 50 MW capacity with air/ hybrid cooling; the minimum capacity would be 20 MW. Reduction in water consumption to 25% or less of the benchmark figure of 3000 litre per MWh. Stand alone solar power plant with up to 10% energy from auxiliary source ACC is a critical technology for CSP, given that water may not be available for all future projects. Hence this option must be explored. Project size may be capped at 50MW, but storage should also be allowed to take advantage of lower backpressures at late evenings/night.

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2. Gas hybrid
50 MW capacity with up to 30% gas hybridization Total gas consumption in a year will not be more than 30% of the total generation of the plant based on total units of electricity generated in a year. Gas support helps to stabilize the operations of a CSP plant. This would require a natural gas fired heater in the plant. But there is no great technology aspect to gas support. Gas support should be considered for innovative configurations Gas supply must be clearly provided by government at a fixed price for the duration of the PPA.

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3. Working temp > 500 C

50 MW capacity having operating temperature over 500 C Stand alone solar power plant with up to 10% energy from auxiliary source This would mean either: parabolic trough technology with molten salt as HTF (Archimede) or power tower technology (SENER, Solar Reserve, BrightSource etc) Except SENER none has a commercially operating plant as of today. Technology risk is significant. This option may be clubbed with the option 6 Base load plant, to create a project of higher capacity.

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Summary
The Idea of Demo Projects to Introduce/Validate new Technologies is excellent Case -1 bidding at present may not yield desired results BOT model may be explored

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Thank you! satyen.kumar@lancogroup.com

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