1. Solar Power Plant
Development Project X MW
Pusad, Maharashtra, India
A RED HOT INVESTMENT
OPPORTUNITY

3. Photovoltaic (PV) Solar
Power
• Photovoltaic (PV) devices generate electricity
directly from sunlight via an electronic process that
occurs naturally in certain types of material, called
semiconductors
• Electrons in these materials are freed by solar
energy and can be induced to travel through an
electrical circuit, powering electrical devices or
sending electricity to the grid
• Most modern solar cells are made from either
crystalline silicon or thin-film semiconductor
material
• Silicon cells are more efficient at converting
sunlight to electricity, but generally have higher
manufacturing costs
• Thin-film materials typically have lower
efficiencies,
but are simpler and less costly to manufacture

4. The Indian Government’s Launch of the
Ambitious Jawaharlal Nehru National Solar
Mission (JNNSM) Set a Goal of Developing 20
GW of Solar Power Generating Capacity by
the Year 2022 .
• India’s State Governments have already planned 5 GW of
Solar Power generation capability
• 50 MW is in development through a Generation Based
Incentive (GBI)
• NTPC will add another 315 MW of solar energy generating
capacity
• Research & Development, Education, and Training is
sponsored by the Government through various programs
• Rural Electrification is a big priority for the Government
• Solar cities and parks are to be established all over India
• Solar Power is now becoming more popular and common

5. Pusad Solar Power Plant Site
50 acres, Hiway 183, Pusad,
Maharashtra
Latitude : 19.85 Longitude: 77.72

7. Pusad, Maharashtra,
India
• The Pusad area is well known for the cotton it
produces
• Educational courses in most major subjects,
including engineering, are taught at the Universities
located in Pusad
• Many tourist attractions are located near Pusad
• Three nearby dams and reservoirs provide beautiful
views and an abundance of wildlife is found in the
area
• Temperature and climate in Pusad is moderate to

8. A Maharashtra Power
Deficit
• Maharashtra is reeling under a power deficit
• It is rapidly expanding its Solar Power
generation program
• The Vidarbha, Khandesh, and Marathwada
regions are endowed with bright sunshine
• A 1 MW Solar Power Plant was commissioned in
Chandrapur, Vidarbha last April
• Mahagenco, the state-owned power generation
company, is developing a 125 MW Solar Power
Plant in northern Maharashtra

9. The Solar India Plan Requires an Investment
of Seventy Billion US Dollars by 2020 and has
the following targets and goals:
• A Generation Based Incentive (GBI) program for Solar Power
Plants
under 5 MW is or will soon be generating a minimum of 50 MW
by 2012, combined capacity, with an overall tariff of Rs. 15
per kWh guaranteed
• To promote programs for “off grid” applications, and to reach
1000 MW (1 GW) by 2017, and 2000 MW (2 GW) by 2020 of
installed “off grid” solar power generation capability, and to
deploy 20 million solar lighting systems in rural areas by 2022
• To create favorable conditions for the development of
India’s solar power industry manufacturing capability
• To develop 15 million square meters of solar thermal collector
area by 2017, and 20 million square meters by 2022
• To reach 20 GW of total installed solar power generation by
2022

11. Solar Power Plants and
Power Purchase Agreements
(PPA’s)
• For investors, long term Power Purchase Agreements
offer stability
• 25 year Power Purchase Agreements are common in
India
• The agreement and terms guarantee that the Solar
Power generated will be purchased by an electric utility
• Fifty percent of all commercial Solar Power systems
used Power Purchase Agreements in 2007
• Nearly ninety percent used Power Purchase Agreements
in 2009

13. India National Solar Mission
Highlights
• NTPC’s 100% subsidiary NTPC Vidyut Vyapar Nigam
Ltd. (NVVN) executes most of India’s Solar Power
Purchase Agreements or Solar PPA’s
• A key driver for the development of Solar Power
Plants is the Renewable Purchase Obligation (RPO)
mandated for all power utilities (6% of all electric
power generation must be from renewable sources)
• Complemented with a solar specific Renewable
Energy Certificate (REC) mechanism, the Renewable
Purchase Obligation (RPO) will enable utilities and
Solar Power generation companies to buy and sell
certificates to meet their Solar Power purchase
obligations

14. Favorable India Solar Market
Indicators
• New players are entering the Solar Energy market in
India
• Increasing number of public and private investment
initiatives
• An increase in merger and acquisition activity
• Renewable Energy sources are gaining significant
share in the Total Power Generating Capacity of India

15. Pusad is Located in the Center of India
– Solar Radiation Central

16. Indian Government Organizations
Facilitating the Development of Solar
Power Energy Generation
• Ministry of New and Renewable Energy (MNRE )
• Indian Renewable Energy Development Agency
(IREDA)
• The Solar Energy Centre

17. Ministry of New and Renewable Energy
(MNRE)
• Classified as a Public Financial Institution under
section 4 of the Companies Act, 1956, and registered
as a Non-Banking Finance Corporation (NBFC) with the
Reserve Bank of India
• Promotes, develops, and extends financial assistance
for Renewable Energy and energy efficiency projects

18. Indian Renewable Energy
Development Agency (IREDA)
• Under the administrative control of the MNRE
• Primary government organization focused on new and
Renewable Energy sources
• Responsible for the implementation of programs and
initiatives including:
• The use of Renewable Energy in urban, industrial, and
commercial applications
• The development of alternative fuels and applications,
including Solar Power
• Rural lighting, cooking, and motive power

20. Solar Energy Centre
•A unit of the MNRE
• Focused on the development of Solar Energy
technologies
• Promotes Solar Power applications through
it’s product development charter
• Undertakes activities related to design,
development, testing, standards, education,
and training in the field of Solar Energy

21. The Role of Federal and
State
Governments
• India is the only country in the world
with a Ministry dedicated to New and
Renewable Energy
• There are nodal agencies in each
State, specifically working on
increasing the percentage of renewable
energy sources
• The States of Rajasthan, Karnataka,
Maharashtra, Gujarat, and West Bengal

22. Solar Projects Currently in the
Pipeline in India
• Maharashtra – Dozens of Solar Power Plant projects
proposed and/or in development
• Rajasthan – 49 proposals totalling 1524 MW
• Gujarat - 37 Projects proposed or in development
totalling
716 MW and an estimated potential of over 100 GW
• Karnataka - 6 MW commissioned and over 100 MW
of estimated potential
• Haryana – 12 MW of projects in the pipeline
• Punjab - 19 MW of projects in the pipeline

25. Solar Insolation
(1) kWh/kW p ·y) or (2) kW·h/(m 2 ·day) or (3)
hours/day
• Solar Insolation is a measure of solar
radiation energy incident on a surface area over
time
• The average irradiance (W/m 2 ) is expressed in
(watts per square meter)
• Insolation is commonly measured as kWh/(kW p ·y)
(kilowatt-hours per year per kilowatt peak
rating)
• Insolation or irradience is also expressed in kW·h/
(m 2 ·day) (kilowatt-hours per square meter per day)
• Solar Insolation is also sometimes expressed in
just
(hours/day)

26. Solar Insolation, Solar
Radiation, and Photons
• If solar radiation is incident on a surface some of it will be
absorbed and some of it will be reflected
• Solar radiation absorbed on the surface of an object, usually
is converted to thermal energy, and increases the
temperature of the object
• In a solar cell, if solar radiation is incident on the surface,
photons are absorbed by the photovoltaic (PV) semiconductor
material, and the energy of the valence band electrons is
increased (valence band electrons are those in an atom’s
outermost energy band)
• This increase in energy of the now “free electrons” thrust
them into conduction bands in the PV semiconductor material
(the solar cell)
• Free electrons, in conduction bands, produce current that
can move through the solar cell
• The product of the current and it’s associated voltage is

28. Global Insolation, Intensity, Wavelength, and the
Angle of Incidence of Light
• Light absorbed by a solar cell is a combination of direct
solar radiation plus the “diffuse light” or “diffuse radiation”
caused by atmospheric scattering and reflection or re-
direction
• Global Insolation equals Direct Insolation plus Diffuse
Insolation
• The amount of current generated in a PV (solar) cell is
determined predominantly by:
(1) the intensity of the incident light
(2) the wavelengths of the incident rays of light
• Increasing the intensity of the light will increase the rate of
photons “freeing electrons” in the solar cell proportionally
• The variety of semiconductor materials used in the different
types of solar cells have different spectral responses to
incident light, providing for varying absorption
characteristics of photons in the different types of solar cells
for a given wavelength of light
• When the sun’s rays of light are incident on a surface at an

29. Pusad, Maharashtra Power
Plant
Annual Solar Insolation
• The Pusad Solar Power Plant receives on average
approximately 1971 kWh/m2 of Direct Insolation per
year
• Direct Insolation is used for an approximation (+/-
20%)
• Global Insolation which is equal to Direct
Insolation plus the Diffuse Insolation is the more
• The annual average Direct Insolation in India varies
accurate measurement
from 1600 to 2200 kWh/m2, comparable to that
received in the tropical regions of the world
• The equivalent energy potential for the Pusad
Solar Power Plant is 1.5 Million kWh/year per MW
Solar DC
• The equivalent energy potential for all of India is
about 6,000 million GWh/year

31. Pusad, Maharashtra Solar Power
Plant Annual Energy Output
Prediction per MW Solar DC
1.971 Million kWh of Annual Energy
Potential multiplied by an Efficiency Factor
of (.78)
= 1.5 Million kWh per MW Solar DC
The Predicted Annual Energy Output for
the Pusad Solar Power Plant is
1,500,000 kiloWatt hours of energy per
year per MW Solar DC

32. A Levelized Tariff of Rs. 15/kWh
of Solar Power Generation and Gross
Annual Income
• The Pusad Solar Power Plant receives on average
1971 kWh/m2 of solar insolation per year
• The equivalent energy potential for the Pusad Power
Plant is 1.971 Million kWh per year per MW Solar DC
• The Predicted Annual Energy Output for the
Pusad Solar Power Plant is 1.5 Million kWh per
MW Solar DC
• A Levelized Tariff of Rs. 15/kWh ($0.2985/kWh)
multiplied by the Predicted Annual Energy Output of 1.5
Million kWh yields the Gross Annual Income (per MW
Solar DC)
• The Gross Annual Income for the Pusad Solar
Power Plant per MW Solar DC = Rs. 225 Million/yr
(Euro 328,800/yr) ($448,400/yr) (1 Indian rupee =
0.0199 US dollars)

33. Pusad Solar Power Plant
Total Gross Income
Gross Income Approximation
for the Life of a 25 year PPA
Pusad Solar Power Plant Gross Income =
$448,400/yr x 25 years
= $11,210,000 per MW Solar DC
Based on :
• Levelized Tariff of Rs. 15/kWh ($0.2985/kWh)
• Predicted Annual Energy Output of 1.5 Million
kWh per MW Solar DC

35. Financial Incentives:
Tariffs, PPA’s, GBI’s, REC’s,
RPO
• Levelized Tariffs with a Project life of 25 years
Rs 15.00/kWh (Euro 0.22/kWh) ($0.30/kWh)
or
Rs 18.44/kWh (Euro 0.29/kWh) ($0.40/kWh) per CERC
• 25 Year Power Purchase Agreements (PPA) with NVVN
• PPA partner - NTPC Vidyut Vyapar Nigam Ltd. (NVVN)
and
• Generation Based Incentives (GBI’s)
• Renewable Energy Certificates (REC’s)
• the Renewable Purchase Obligation (RPO)

36. The Power Purchase Agreement
(PPA)
Most Solar Power Plants are Financed Through a PPA
• The PPA is an agreement between the Pusad Solar
Power Plant and the buyer of the electricity, NVVN
• The buyer only pays for power that is produced
• The produced power is bought at prices that are
pre-determined and agreed to in the PPA
• There are no upfront costs or down payments
required
from the power buyer
• The buyer receives financial savings by procuring
power
typically starting at or below wholesale market
prices
• Electricity costs for the buyer are structured to
increase slower than the normal rate of electricity

37. Current CERC Guidelines for Solar PV
India
(CERC - Central Electricity Regulatory Commission )
Capital Costs:
Rs. 17 Crore/MW (Euro 2.66 Million /MW) ($3.66 Million /
MW)
O&M Expenses:
Rs. 9 lakhs/MW (Euro 14,000/MW) ($19,200/MW)
for 1 st year of operation – then escalates @ 5.72%/year
(approximate total O&M expense for first five years =
$100,000)
Capacity Utilization Factor:
19%

38. Financial Assumptions
Pusad Solar Power Plant (CERC
Guidelines)
per MW Solar DC
Debt to Equity ratio: 70% : 30%
$2,562,000 : $1,098,000
Loan Interest Rate: 14.29%
Loan Repayments: $40,227/mo for 10 years
Total of loan repayments: $4,827,264
Return on Equity: 19% per year for first 10
years
24% per year starting the 11 th
year
Weighted average Return on Equity: 22%

40. Project Outline & Scope of
Work
Site and Land Assessment
Solar Resource Assessment
Energy Yield Study
Environmental Impact Assessment
Comparative Analysis
Electric Utility Requirements Analysis
Power Purchase Agreement
Governmental and Organizational Liaisons
Funding and Financing
Business and Financial Analysis

41. Project Outline & Scope of Work
(continued)
Technology/Resource Assessment
Preliminary Solar Plant Design and Interconnect
Analysis
Detailed Solar Plant Design
Manufacturers/Suppliers/Resources Analysis
Quality Assurance Plan
Procurement and Construction
Project Management and Execution
Integration and Testing
Project Documentation and Training

44. Solar
Modules
The PV modules selected for the Pusad Solar Power
Plant will qualify to the latest edition of the IEC PV
module qualification tests or equivalent BIS standards
including :
• IEC 61215 for Crystalline Silicon Solar Cell Modules
• IEC 61646 for Thin Film Modules
• IEC 61730 for Safety Qualification Testing
Warranty Requirements for
Modules
The PV modules will also be warranted for output
wattage of not less than:
• 90% of rated at the end of 10 years
• and of not less than 80% of rated at the end of 25

45. Solar PV
Inverters
• A solar PV inverter changes the direct current (DC)
electricity from a PV solar array into alternating
current (AC)
• Grid tie inverters are used to connect the power
plants to the grid
• The efficiency of an inverter has to do with how
well it converts the DC voltage into AC
• Grid connected inverters have efficiencies of 96%
to 98.5%
• Inverters are most efficient when used in the 30%
to 90% power range and much less efficient at the
low end of their power range
• Typically inverters perform reliably for 15 years,
but they perform less reliably in large power plants,

47. Pusad, Maharashtra Solar Power
Plant Data Acquisition &
Monitoring
The following data will be continuously logged
and monitored during the life of the
power plant :
• Solar insolation
• Ambient temperature
• Wind speed
• Humidity
• DC power generated
• AC power generated

48. Pusad, Maharashtra Solar
Power Plant Local Advantage
• Local Ownership – we own the Land
• Local Relationships
• Indian Policy Expertise
• Excellent Execution Capability
• Local Risk Mitigation
• New York and Silicon Valley Business
Experience
• Engineering Expertise
• Finance Expertise
• Operations Expertise

49. Our Project Partners – Come Join
Us !
• International/Indian Module Manufacturers
• International/Indian System Integrators/EPCs
• International/Indian BOS
Manufacturers/Suppliers
• Maharashtra State Electricity – State
Transmission Utility Company
Potential Project Financiers
• Private Equity Investors
• International Foundations
• Entrepreneurs
• Venture Capitalists

50. Challenges ? We Plan Proactively !
• Land acquisition is the single biggest challenge for
solar developers in India ! – we already have secured the
land
• Potential conflicting policies between Federal and
State Governments ? - no problem
• Difficulties regarding requirements & permissions for
land use, power evacuation, water linkage, town
planning ?
– no problem
• Grid parity and power fluctuations, grid quality
problems ?
no problem – we know electricity
• Lack of experience: Absence of trained technicians,
engineers and managers ? – we have experience