Spanish developer Solarpack has revealed details of the record-breaking 300 MW project capacity it secured in the recent 2 GW solar auction held by the Solar Energy Corporation of India (SECI).
The Basque developer landed 15% of the capacity available in the auction and will construct a 396 MWdc solar project in Rajasthan which will sell power to SECI for an Indian record low solar electricity tariff of Rs2.36/kWh under a 25-year power purchase agreement (PPA).
Javier Arellano, Head of Corporate Development and Investor Relations at Getxo-based Solarpack told pv magazine: “The plant will be newly developed and the project will represent a total investment of approx. 129 million euros. The project will be financed with long-term senior debt from financing institutions, and equity provided by Solarpack.”
Solarpack expects the plant to become operational in 2022, when it will generate around 753 GWh per year, and anticipates income of more than Rs4,240 crore from the sale of electricity over the PPA contract lifetime.
The developer
“Solarpack is a highly specialized integrated solar PV platform that covers the full value chain of utility scale solar PV project integration,” Arellano told pv magazine. “We do everything from greenfield development to financing, construction and O&M [operations and maintenance]. Being present in the entire value chain since 2005 allows us to have an evolving, in-depth knowledge in all the key elements that make a project competitive: [the] right project location, competitive capex [capital expenditure] due to continuously improved engineering design, long-standing relationships with Tier 1 suppliers and subcontractors and experienced construction managers, optimal financial structure and competitive O&M provided by our own teams.”
Solarpack is a multinational which claims to have developed 876 MW of solar generation capacity in addition to 509 MW of facilities implemented on a ‘turnkey’ or engineering, procurement and construction basis.
The company, which began activity in India in 2015, generates power at 15 projects with a total capacity of 545 MW in Spain, Chile and Peru as well as India.
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I have a strong feeling and agree that coal plants have a sunset. The recent auction happened on 29th June, 20 of SECI’s 1200 MW capacity allotment when solar energy prices declined to Rs. 2.36 / unit and created a favorable environment and bright future for large scale solar penetration into the grid. Yes, the achievements are worth and appreciable. It is visible now globally when countries and companies have started talking about renewable energy as a replacement to eliminate coal generation.
Yes, the achievement of extremely low tariff and development so far are worth and appreciable. However, further installation of Ultra MEGA Scale Solar Farm may not be feasible because it will require site-specific development, the installation will be far from load centers, require huge land parcel, the huge investment will be required in EHV / DVDC transmission network construction, getting permits and approval will be time consuming and lenders may not support such development. The project may become unviable in the long run. I have studied the Indian Grid System and its deteriorating performance with an increased level of variable solar penetration (RE) at the current scenario resulting in frequent power swings, RE curtailment during peak RE generation, generating harmonics, and voltage fluctuation. This MEGA and Ultra Mega development need to be scaled down.
To push RE development into the forefront and move fast following are the recommendations.
India has immense solar energy potential all across and can be harnessed anywhere it is installed.
India has 55000 – 60000, 33 / 11 distribution S/S and therefore a well-engineered 500 KW to 2 MW small scale DSG system with feasible limited storage capacity to generate and service local load will technically fit in an existing transmission network, provides grid stability, improve tail end feeder voltage, eliminate accidental blackouts apart that all issues related to permitting process, biology, stormwater, noise, or any other possible environmental impact will disappear in execution. This concept can easily spread all across the country for high-level penetration into the grid. Large scale DSG with BES penetration therefore will technically accommodate easily 200 GW solar energy in the grid. DSG with Storage penetration at this level will transform India’s future energy resilience for its 2030 electricity road map and greatly replace all other formats of power generation – the concept of DSG added with energy storage is the answer vis a vis to limit mega-scale solar development and eliminate thermal power development.
A strong policy mandate in the new Electricity Act Amendment shall be required to encourage large scale penetration of solar energy into the grid through DSG with BES when prices for solar declined to Rs. 2.50 / unit and Li-Ion batteries are sharply falling.
I estimate costs for utility-scale lithium-ion batteries and solar PV systems, if we scale unsubsidized prices in India, even with higher financing costs, the PPA prices through the competitive bid process will emerge around Rs. 3.0–3.5/kWh for about 13% of PV energy stored in the battery for the installation years 2021–2022. The tariff adder for a co-located battery system storing 25% of PV energy at each 33 / 11 KV S/S is estimated to be Rs. 1.25 / kWh in 2020 -21, < Rs. 1.0/kWh in 2022 -25, and around Rs. 0.70 /kWh in 2030. A co-located plant with PV, the storage capital cost would be lower and this implies that the total prices (PV system plus battery storing 25% of PV energy) are Rs. 3.75 /kWh in 2020, Rs. 3.32/kWh in 2025, and Rs. 2.90/kWh in 2030. Such low battery storage with PV installation prices could transform the Indian energy sector and supply 24×7 solar energy to eliminate coal-based power generation to meet its growing energy needs.
DSG with BES development into the grid at distribution centers in the future for India’s 2030 energy road map. The technical issues apart from the financial, legal, policy, and regulatory challenges could be well addressed deploying best engineering practices with strong policy support for the grid to accept this unpredicted variable solar power to safely integrate into the grid.
Gopallal Somani
+91 8826150873
The recent auction happened on 29th June, 20 of SECI’s 2000 MW capacity allotment when solar energy prices declined to Rs. 2.36 / unit and created a favorable environment and bright future for large scale solar penetration into the grid. Yes, the achievement of extremely low tariff and development so far are worth and appreciable. The Performance of the Indian Grid System has deteriorated with an increased level of solar penetration and will further be detrimental without technical evaluation. Declining cost through an economy of scale and reverse auction though reached solar tariff to record low, but the further installation of Ultra MEGA Scale Solar Farm may not be feasible because such development will require sites in solar potential states like Rajasthan for specific development when the installation will be far from load centers, require a huge investment in building transmission lines and S/S. The industry must know that the current scenario itself resulting in frequent power swings, RE curtailment during peak RE generation, generating harmonics, and voltage fluctuation. Therefore, this MEGA and Ultra Mega development need to be scaled down and need a break now.
To push solar development and bring it to the forefront and move fast following are the recommendations.
India has immense solar energy potential all across and can be harnessed anywhere it is installed. It has 55000 – 60000, 33 / 11 distribution S/S and therefore a well-engineered 500 KW to 2 MW small scale Distributed Solar Generation DSG system with limited storage capacity to generate and service local load will technically fit in an existing transmission network, provides grid stability, improve tail end feeder voltage, minimize harmonics, provide reactive power, eliminate accidental blackouts apart that all issues related to permitting process, land issues, grid connectivity, biology, stormwater, noise, or any other possible environmental impact will disappear in execution. This concept can easily spread all across the country for high-level penetration into the grid. DSG with BES in large nos. and its penetration therefore will technically accommodate easily 200 – 300 GW solar energy in the grid. DSG with Storage penetration at this level will transform India’s future energy resilience for its 2030 electricity road map and greatly replace all other formats of power generation, therefore the installation of DSG added with energy storage is the answer vis a vis to limit mega and ultra – mega solar development and eliminate thermal power development in long run.
A strong policy mandate in the new Electricity Act Amendment for the DSG + BES shall encourage large scale penetration of solar energy into the grid when prices for solar system declined to Rs. 2.50 / unit and Li-Ion batteries are sharply falling.
The experts at NREL estimate that the installation costs for utility-scale lithium-ion batteries with solar PV systems at distribution centers, even its upscale unsubsidized prices with higher financing costs in India, the PPA prices through the competitive bid process will emerge around Rs. 3.0–3.5/kWh for about 13% of PV energy stored in the battery for the system installation in 2021–2022. (Reference LBNL-2001314). The tariff adder for a co-located battery system storing 25% of PV energy at each 33 / 11 KV S/S is estimated to be Rs. 1.25 / kWh in 2020 -21, < Rs. 1.0/kWh in 2022 -25, and around Rs. 0.70 /kWh in 2030. A co-located plant with PV, the storage capital cost would be lower and this implies that the total prices (PV system plus battery storing 25% of PV energy) are Rs. 3.75 /kWh in 2020, Rs. 3.32/kWh in 2025, and Rs. 2.90/kWh in 2030. Such a low battery storage price with PV installation system cost could transform the Indian energy sector and supply 24×7 solar energy to eliminate coal-based power generation to meet its growing energy needs.
DSG with BES development in large nos. into the grid at distribution centers in the future for India’s 2030 energy road map. The technical issues apart from the financial, legal, policy, and regulatory challenges could be well addressed deploying best engineering practices with strong policy support for the grid to accept this unpredicted variable solar power to safely integrate into the grid.
Experts at PV Magazine must put deep thoughts and support the concept and bring it to ET Amendment.
Gopallal Somani
+91 8826150873