Presentation on Odisha 4 MWp Rooftop Solar Net

Presentation on Odisha 4 MWp Rooftop Solar Net Metering Project Green Energy Development Corporation of Odisha Ltd. (GEDCOL)

Renewable Energy: Estimated Potential & Present capacity § Different studies made by Govt. of India indicates the tentative source wise potential of Renewable Energy available in the State. § Presently, Odisha is having 215 MW of tied up RE capacity, out of which 140 MW is installed within the State. Technology Potential (MW) Installed capacity (MW) Solar 1 Wind 2 Small Hydro 3 Biomass 25780 910 295 350 63 - 57 20 MSW Total 27335 - 140 1 National Institute of Solar Energy (NISE) has estimated the Solar power potential for Odisha as 25780 MWp. 2 As per National Institute of Wind Energy (NIWE), Odisha has an estimated wind power potential of 910 MW (at 50 mtr. hub height) and 1384 MW (at 80 mtr. hub height). 3 As per survey of 222 sites in the State, the small hydro potential in the State is 295 MW.

Renewable Purchase Obligation (RPO) • RPO mandates the Obligated Entities to source a certain percentage of their power purchase from Renewable Energy sources. • For and beyond FY 2015 -16, OERC has notified revised RE Compliance Regulation, 2015 w. e. f. 10 th Sep. 2015, up to FY 2019 -20, wherein co-generation has been de-recognized under RPO. • National Tariff Policy, 2016 notified on 20 th Jan. 2016 mandates, the Solar RPO percentage as 8% with total RPO of 17% by 2022 (excluding hydro consumption). • The RE capacity addition required for the State up to 2021 -22 is detailed below as per OERC RPO targets; FY State Energy RPO Percentage (%) Requirement in MU Requirement in MW Year wise Additional Requirement in MW Consumption in MU Solar Non-Solar Non- Solar 2015 - 16 23748 0. 5 2. 5 118. 7 593. 7 91 136 138 77 2016 - 17 24550 1. 5 3. 0 368. 3 736. 5 283 168 145 91 2017 -18 25500 3. 0 4. 5 765. 0 1147. 5 588 262 305 94 2018 -19 26500 4. 5 5. 0 1192. 5 1325. 0 917 303 329 41 2019 -20 27500 5. 5 1512. 5 1163 345 246 42 2021 -22 30000 8. 0 9. 0 2400. 0 2700. 0 1846 616 683 271

Introduction

Background of the Project • India is aiming to achieve 40 GW of solar rooftop capacity out of the total target of achieving 100 GW of solar power by 2022 • Out of this 40 GW, State of Odisha has 1 GW of Solar rooftop target • Govt. of Odisha, with a view to develop a market for rooftop solar projects decided to undertake the development of a pilot project on grid connected rooftop solar project(s) • Project is to be developed on a net metering model with a proposed minimum installed capacity of 4 MWp • Project shall be implemented on buildings specified by the GOO in the cities of Cuttack and Bhubaneswar on GOO buildings • Project to be implemented through PPP route on a BOO basis • The GOO has appointed GEDCOL as the nodal Authority for the project • International Finance Corporation (IFC) was appointed lead transaction advisor to assist GEDCOL in the project.

Objective of the Project • The objectives of the Government of Odisha in developing the Project are to: a) Develop the Project to facilitate firming up of policy and regulatory framework for net metered solar PV rooftop projects in Odisha; b) To facilitate self-replicable consumer-driven electricity generation in Odisha; c) To leverage solar resources to increase the share of renewable energy in the overall energy mix of Odisha. d) To improve the capacity of State Discoms in implementation of Solar Rooftop Projects e) To attract investment from third party investors in grid tied solar rooftop segment in State of Odisha

Project Scope • Setting up of photovoltaic solar power plants on the rooftops of the selected Buildings • Solar power generated shall be utilized by the occupants • Any surplus power not consumed by the Facility/Building to be banked with CESU, subject to a maximum of 90% of total consumption in a FY • 25 year term (excluding 12 months commissioning period) • Minimum 4 MWp of rooftop based solar power to be generated on facilities in Bhubaneswar and Cuttack

Key Learnings

Preparatory Activities (1/5) Technical - Detailed Site Survey • Detailed site survey undertaken to assess rooftop suitability, potential & grid integration feasibility. Around 200 building identified for Project. • Results of survey shared with developers – enhanced developer confidence in project • Building wise consumer accounts (as per CESU) were mapped to assess • annual electricity consumption, connected load • identify DTR to which building is connected and DTR capacity available for rooftop solar, grid availability in the identified locations Total 1 Solar rooftop capacity identified - survey (k. Wp) 8, 201 2 Solar Capacity under net -metering (k. Wp) 5, 344 3 Final Solar Net-metering Capacity (k. Wp) (after DTR capping) 4, 642* Assuming 15 sqr. mtr. Roof area per k. Wp

Geographic spread rooftop solar sites Overview of sites in Bhubaneswar & Cuttack Sample Site view

Preparatory Activities (2/5) Regulatory – Net Metering Regulation • Implementation of Project under net metering required issuance of net metering regulation • GEDCOL, with assistance from IFC, submitted petition to OERC for issuance of Net Metering Regulation • Specific request made for allowing third party owned rooftop projects – as the proposed Project is under PPP arrangement • Aspects related to interconnection and metering standards for net meters shared with OERC after extensive discussion with CESU and reviewing other State experiences • Initially the Net-metering regulation was applicable for the Govt. buildings only under this Scheme, which was subsequently extended to all other buildings • OERC issued the Net Metering regulation paving the way forward for the implementation of the project.

Preparatory Activities (3/5) Policy – Leasing & Coordination • Issue – Govt. Building identified for the project were owned by multiple departments. Developer entering into separate lease agreement with each department on standalone basis would have been cumbersome. • In order to reduce time & issues related to multiple leasing : • Prior to floating the tender, consents letters were initiated by the governing body of the Govt. of Odisha buildings in Bhubaneswar and Cuttack that were proposed to be included in the project. • GEDCOL appointed as single point of contact for leasing • GEDCOL, on behalf of Energy department, was mandated to sign the Lease Agreement for all Government buildings • GEDCOL has also been authorized by way of Board Resolutions to sign the Lease Agreements on behalf of Autonomous Bodies/Universities/ Educational Institutions etc.

Preparatory Activities (4/5) Institutional – Discom (CESU) to play important role • Role of distribution utility important for implementing large capacity rooftop solar projects • CESU provided full support for project & is also party to the Project Implementation Agreement signed with the Developer • CESU’s support important in undertaking interconnection feasibility as well as implementation of project • CESU’s support ensured easy access to consumer consumption data, DTR capacity to which building is connected and finalizing aspects related to metering & interconnection • CESU acting as billing agent in the Project – thereby reducing transaction cost related to billing – CESU to get nominal fee for that • CESU involvement will also ensure monitored performance mechanism between the developer and the end consumers.

Preparatory Activities (5/5) Developing Standard Bid documents • Standard bid documents were prepared to facilitate selection of developer for the rooftop solar • technical assessment report (covering all buildings) provided in the tender document • The contractual arrangement ensured optimal risk sharing between different parties • Project Implementation Agreement • Ensure payment to developer is on solar power consumed (and not generated) • Billing & accounting system devised involving CESU – apart from developer & consumer (under net metering) • Technical Standards & specifications clearly detailed • Developer to install minimum 4 MWp - provided a provision to increase the capacity per building if roofs were found feasible for more capacity during the installation (under net metering) • Lease Agreement • Standard lease agreement for all the buildings

Developer Selected through competitive bidding • Bidder will provide Quoted Tariff (Rs. /k. Wh) & Quoted Project Cost (Rs. Crores/MW) • Lowest Total Outlay for installation of 1 MWp to be winning bid – (i. e. the summation of the Capital Subsidy and the Present Value of the Quoted Tariff) • Total Project Outlay will be computed based on following assumptions – • Capital Subsidy of 30% • CUF – 17% • Deration – 0. 5% • Auxiliary Consumption – 0. 00% • Discount Rate – 11. 24%

Participants & Contractual Structure Developer Retail Tariff for net purchase from utility plus solar energy consumed Solar Payment- i. e. , Retail Tariff for solar energy consumed + Capital Subsidy + GBI Consumer CESU to act as collection agent CESU GEDCOL Tripartite Project Implementation Agreement (PIA) between GEDCOL, Developer and CESU Lease Agreement between GEDCOL & Developer Connection Agreement between CESU and Consumer Funds Flow Solar Payment

Roles & Responsibilities GEDCOL • Ensure signing of lease agreement; allow unhindered rooftop access to Operator • Facilitate Net metering Applications by Consumers; Facilitate Signing of Connection Agreements • Make the following payments to Operator • Capital Subsidy • Project Payments - i. e. Retail Tariff + Generation Based Incentive Developer • Performance Standards : Maintain minimum annual CUF (13% for 1 st 15 years; 10% later) CESU • Execute Connection Agreements with Consumers through GEDCOL • Approve, position, install and seal the Net Meter and the Solar Meter for each Consumer in accordance with the OERC Net Metering Order • Take meter readings of the Net Meter and the Solar Meter on a Monthly basis

The Project has assisted in providing better clarity in implementation of net metered rooftop solar projects OERC has recently issued a new Order on Net Metering – key Highlights • Cumulative solar energy capacity at distribution transformer level from the earlier 30% of transformer capacity to 75% of transformer capacity • The maximum Solar PV installation capacity has been limited to the sanctioned load/contract demand of the respective consumer instead of earlier ceiling of 1 MW. • The system may be roof-mounted or ground-mounted, connected to the Distribution network, will be treated as a project on the consumer side of metering and will be allowed for netmetering. • This view is reinforced after taking into account the experience of DISCOMs. • It is also a fact that most of the solar energy generated by a consumer is self-consumed or consumed in the immediate neighborhood. • Thus, the distributed generation and local consumption of such Solar Energy will reduce the technical losses pertaining to respective Distribution network, particularly in the LT segment. This will also help DISCOMs in improving their commercial efficiency by way of reduction of input energy. • Further, GEDCOL has requested the DISCOMs to consider for DTR upgradations, when the cumulative RE penetration reaches 75% DTR capacity • The Commission may however increase/decrease the level of penetration and issue renewable energy penetration limits at overall grid level if required in the future to ensure grid stability.

Way forward • The developer has already initiated the implementation of rooftop solar project in Bhubaneswar & Cuttack. • GEDCOL is further looking forward to extend the scheme to the Central Govt. buildings in Odisha, if the Central Govt. intuitions provide their willingness to implement the Rooftop systems under the present model. • Govt. of Odisha is planning to replicate the Bhubaneswar and Cuttack project in 6 more cities in Odisha • GEDCOL has already conducted Knowledge Sharing & Dissemination workshop for different stakeholders (all Discoms, Consumers & others) to sensitize on the ongoing rooftop solar project as well as elements to be considered for further replication • Odisha has also finalized the process mapping starting from Registration up to installation of Solar Rooftops for the private & individual Roof owners, which will enable greater convergence of the programme.

Odisha Rooftop: Role of Stakeholders Overall Process Flow map Stakeholder 1 OREDA (SNA) Role & Responsibility • • To disseminate the Rooftop programs in the State across categories Training for larger consumer sensitization & installation (Surya Mitra) Facilitate installation through Channel Partners Process subsidy applications and disbursement of Subsidy to beneficiaries • • • Assess Technical Feasibility and Issuance of NOC for Installation Empanel Vendors for supply of Meters Test & verify meters prior to installation by consumers Post installation check Metering arrangement and system verification Interconnection, Synchronization and commissioning, Metering & billing • • • Define technical, regulatory limits for solar injection into LT grid Define solar PV capacity with voltage level Net metering regulation , cap on capacity, billing and accounting regulation • The applicant should be the owner of the property or authorized person and Consumer of DISCOM Maximum capacity is limited to contract demand Easy access to roofs, Roofs should be clear for PV installation Well understand the net metering policy and complete the application procedure 2 DISCOM (Utility) 3 Regulatory Commission (OERC) 4 Rooftop solar Consumer • • •

Process from Registration to Installation- 90 days Application to DISCOM Registration • Registration Online / www. odisharenewable. in • Offline application assistance by OREDA • Submit the print out of Application form in the Division Office of DISCOM with relevant documents • Deposit Application Fees Engagement with DISCOM • Site Verification & Feasibility Check by DISCOM • NOC for installation by DISCOM (90 days validity) • Intimation to OREDA • Specify the Net meter Procurement & testing process Consumer may approach Banks for Loan Subsidy Process • Process Subsidy Procedure • Facilitate engagement with Channel partners • Issue subsidy approval letter to Consumer Procurement & Installation of SRT & Net Meters Consumer to Engage with Channel Partners for procurement & Installation (Model Procurement Agreement to be prescribed) Procure Net Meters from Dealers Authorised by DISCOM and Testing by DISCOM Submit to the DISCOM the completion Report Consumers without subsidy Installation Verification • Verification of installed SRT components • Checklist as per the guidelines of OERC / CEA Consumers without subsidy Connection verification by DISCOM Consumer Safety Verification by Comp. Authority(EIC / Empanelled Engg. ) Discom Synchronisation & Charging Testing of Net meters Check of the system, synchronisation by DISCOM OREDA Disbursement of Subsidy

Tentative time schedule from Registration to Installation Consumer Discom OREDA

OREDA’s Role- Consumer Awareness & Engagement, Facilitation & Subsidy Customer sensitization with regards to awareness and information with regards to OREDA as SNA (State Nodal Agency) have following process map 1 Consumer Awareness 1. 2. 3. 4. 2 2. 3. 4. 5. Registration format (filling of the online / manual form) Submission of essential list of documents Online information on registration procedure to be made available to solar consumer Assistance for offline consumers Intimate DISCOM about registration and request to undertake study and issue NOC Installation of proposed rooftop plant 1. 2. 3. Solar Calculator – OREDA Website FAQs for consumer on tech & benefits OREDA Helpline desk 1800 -345 -7135 Checklist to be followed by solar consumer Engagement & Registration 1. 3 4 List of channel partners Training and capacity building (Surya Mitra) Format for work completion report Subsidy Disbursement 1. 2. 3. 4. 5. Register the application for subsidy Issue comfort letter for availing loans Co-ordinate & follow up with MNRE for process Subsidy applications Details and procedure required for consumers who wish to avail MNRE subsidy On completion of installation and charging disburse the subsidy

Channel Partners OREDA has empanelled Channel Partners who would assist consumers for; 1) Design, Supply & Install of Solar Roof Top PV as per guidelines of Competent Authority 2) Assist consumer in processing applications and obtaining approvals 3) Post Installation services including maintenance & other after sales services Empanelled Channel Partners: 1. Kirti Solar Limited, Kolkata. 2. Novus Green Energy Systems pvt. ltd, Secunderabad. 3. CIRA Renewable Energy Pvt. limited, Hyderabad. 4. Premier solar Systems pvt. ltd, Secunderabad. 5. Shanti Associates, Cuttack, 6. Environ Energy Corporation India pvt. ltd, Kolkata, 7. K. C. Kopar Energy Solution pvt. ltd. Kerala, 8. Lycos India Limited, Bhubaneswar, 9. Aditi solar pvt. ltd. , Hyderabad. 10. Jakson Engineers Limited, U. P. 11. Gayatri Engineering Construction and Consultancy (p) ltd. , Bhubaneswar, 12. Greenco Systems pvt. ltd. , Bhubaneswar.

Proposed activities to be facilitated by OREDA A. Consumer Awareness & engagement : 1. Improve on the online platforms to make it transaction enabled • Upload data by consumer and generates an Unique Application No. • Real time intimation to DISCOMS with Access rights to DISCOM for uploading data & updating • For offline consumers facilitate uploading at common service centers / OREDA • Mapping of the DISCOMS & their Divisions 2. Develop a Mobile App for engagement with consumers B. Easy and user friendly registration process • Applicant details like copy of the latest Power Bill, • Rooftop ownership details, • Checklist of all documents for enabling registration • Upload all the standard forms & sample formats for the entire process from registration to installations C. Subsidy Application process 1. process timelines and 2. disbursement rules & regulations with checklist D. Solar Roof top PV Procurement & Installation • Channel Partners details 1. Model SRT supply & installation Agreement E. Consumer Grievance & Redressal Mechanism – Online portal shall also have provision for

Installation and Commissioning Utility Review Process Application Process DISCOM Process Mapping NODAL OFFICER / DIVISION OFFICE receives the Application Details & Application Fees Utility shall provide suggestions and reasons for rejection of application Yes General Screening by DISCOM As per direction of DISCOM Nodal Officer, technical feasibility assessment by Division Office If, Application form fails to clear technical screening relevant information Yes After Obtaining Technical feasibility report, DISCOM to issue NOC, and notify to applicant & OREDA Applicant installs rooftop facility within 90 days on NOC, Submit work completion report (Format 4) No Consumer to reapply (stage 1) No Consumer & System Installer to take corrective measures & Apply to retest Yes 1. Installation verification by OREDA of SRT PV components 2. Verification by DISCOM 3. Safety Verification by Com Auth. 4. Charging by DISCOM Yes OREDA / DISCOM / CA to provide suggestions & reason for failure Not OK Utility Issues Letter of Sync. , Intimates to OREDA & Executes Net metering Agreement Lo. S: Letter of Synchronization

Chronology of Events: 4 MW Roof Top Solar Project Sl. No. Description Timeline 01 Proposal of GEDCOL to Govt. of Odisha for Solar Rooftop Project 07. 03. 2013 02 Approval of Govt. of Odisha and signing of FASA with IFC 02. 09. 2013 03 Decision for taking up the Net-metering model 03. 12. 2013 04 Floating of RFQ 28. 02. 2014 05 Receipt of RFQ proposals (from 7 no. Firms*) 19. 05. 2014 06 Intimated to all 7 Firms for qualifying in the RFQ 20. 09. 2014 07 MNRE sanctioned CFA @ 30% of project cost 27. 10. 2014 08 OERC issued Net-metering order 25. 11. 2014 09 Final RFP, PIA and Lease Deed document submitted by IFC 10. 09. 2015 10 Floating of RFP 08. 10. 2015 11 Pre-Bid meeting with Developers 29. 10. 2015 12 RFP Proposals Opened 13. 01. 2016 13 LOA issued 31. 03. 2016 14 Revised LOA issued 09. 06. 2016 15 Project Implementation Agreement signed 30. 07. 2016 16 Project completion (1 st Phase – 0. 2 MW) 28. 12. 2016 17 Project completion (2 nd Phase – 0. 8 MW) Project completion (3 rd Phase – 3. 0 MW) 29. 03. 2017 18 29. 09. 2017

Firms participated in the RFQ: ‒ Azure Power India Pvt. Ltd. , New Delhi ‒ Abacus Holdings (P) Ltd. , Bhubaneswar ‒ Green Infra Corporate Solar Ltd. , New Delhi ‒ Madhav Infra Projects Ltd. , Vadodara ‒ Sun Edison Solar Power India (P) Ltd. , Ahmedabad ‒ Tata Power Trading Company Ltd. , New Delhi ‒ Ujaas Energy Ltd. , Indore Firms participated in the RFP: ‒ Azure Power India Pvt. Ltd. , New Delhi ‒ Madhav Infra Projects Ltd. , Vadodara The Selected Firm: ‒ M/s Azure Power India Pvt. Ltd. , New Delhi

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