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and operating costs. Costs between Rs.9 to 10 crore per MW for MW scale plants. Breakup: 2 crore for mounting and civil work. 5-6 crore on panel cost. 20-30 lakh for land. Rest for power equipment. (CERC tariff order) Drivers: Capacity factor, Interest cost, project cost
Solar Highways
Concept: Using land occupied by highways to generate solar
power.
Why Highways: NHAI has so far 16,500km of 4/6 lane
Open Space
Limited Use
Objectives
The main objective is to understand the impediments to the implementation of this simple idea
Policy and Legal Implications that need to be cleared before. Technology and engineering Challenges
Policy
Who owns the land in a road project? Clause from MCA:
13.3 The license and the right to use the Site shall be granted for the purpose of carrying out the functions placed upon the Concessionaire under the Agreement and not for any other purposes Clauses 3.2 (vi) and 9.1 (xi) further restrict the Concessionaire from creating an encumbrance , lease, transfer or part possession, except as provided for by the CA.
In short, NHAI owns the land, and only has given the right
for to use the land for the purpose of construction or extension of the highway, and in return the Concessionaire gets the right to charge toll as prescribed.
Policy (Contd.)
By extension, the right to any alternative use has to be given
specifically by NHAI.
alternate uses?
This right also needs to be specified by the NHAI, similar to the right
to benefit from facilities such as fuel stations, food courts and hoardings. It would depend on how the NHAI is wants to structure the project, but it cannot pass on the right to alternate revenue to a third party by itself because the Concessionaire will be in possession of the land.
Roof-over-Road structure was most comparable with the normal solar plant (2 crore/MW), provided panels are placed horizontally and not tilted.
T-Shaped Structure
margin.
meters for the road structure 6 lane expressway between Surat and Mumbai is going to need a 120 meter corridor for a 50mtr road
Operating Structure
What are the ways in which the model can be
NHAI-Concessionaire-Developer NHAI-Concessionaire
Payment Mechanisms
One time Payment: based on share of project value Fixed Annual Payment: based on share of project value Revenue Share: as a percentage Electricity Share: supplying a certain number of electricity units
Recommended Method: Revenue Sharing The costs is fixed Gives incentive to increase efficiency factor Gives incentive for govt./concessionaire to continue giving good service
Evaluation
NHAI-Concessionaire-Developer Advantages Protects rights of the concessionaire as the possessor of land. Risks are shared by those best placed to manage those risks. Disadvantage: transaction costs will increase, especially monitoring and co-ordination while shifting. NHAI and Concessionaire cum developer Concessionaire becomes solar power producer Advantages are that it reduces transaction costs and increases the reliability of the cashflows for the concessionaire, since they are both not correlated
Evaluation
Government and Developer: Good model for un-tolled roads Can be structured as a BOT project which can generate free cash flow for the life of the panels Pays for road Maintenance
Government owned Implementation Authority: Low transaction costs Low funding costs High initial outlay
Conclusion
Awareness and Policy support from within the government
seems to be the core impediment Engineering not a barrier to implementation because of excess land availability Viable option for concessionaire and government Current PPP structures can be applied to this easily, for faster implementation
News: World Bank supports installation of Solar Panels along highways in Gujarat Indian Banks See Highway Toll-Like Cash in Solar
Acknowledgement
Prof. Girija Sharan
Prof. Pramod Yadav Ramachandran Rajagopalan Vishal Vora Ravi Kumar PBV