guide to solar project implementation

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olar PV Project Implementation How to stay on track & avoid pitfalls?

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Page 1: Guide to Solar Project Implementation

Solar PV Project ImplementationHow to stay on track & avoid pitfalls?

Page 2: Guide to Solar Project Implementation

Typical Timeline

750 MW of Solar PV Projects under Phase II Batch I of National Solar Mission would

get 13 months from PPA signing to commission the Power Plants.

Land Acquisition                  

   EPC Contractor /

Equipment Selection                    Financial Closure                        Plant Construction (EPC)                          Buffer1 2 3 4 5 6 7 8 9 10 11 12 13

Months

Identification of Land ParcelsTechno Commercial EvaluationNegotiation, Mutation & Registration

Technology FinalizationInvitation of Quotations & MeetingsNegotiation & Finalization

Preparation of DPRProject Financial & Technical Assessment In Principle Sanction & Disbursement

Basic & Detailed EngineeringEquipment ProcurementConstruction & Commissioning

PanicZone

Assuming a 10 MW Project taking 4 months in construction and 1 month for planning

Page 3: Guide to Solar Project Implementation

EPC – Meaning

Engineering Procurement Construction

There are approximately 110

drawings and design documents

including Electrical DC, Electrical

AC and Structural Engineering

which need to be prepared to start

execution.

The Request for Proposals are

floated for approximately 25

different packages including –

Modules, Inverters, Mounting

Structures, Cables, Transformers,

HT & LT Panels, Electrical, Civil &

Transmission Line Contractors etc.

Negotiation and Finalization of

vendors is done based on Techno

Commercial reasons.

The Contractors appointed

execute the plant in a phased

manner often using specialized

machinery including ramming &

auguring machines, hydras,

loaders, cranes, mixers, AJAX,

tractors etc. Typically, multiple

gangs of labor are used taking the

total number from 50 to 300

depending on size of the plant and

execution time.

Page 4: Guide to Solar Project Implementation

EPC – Concerns for Delay

Engineering Procurement Construction

Engineering of a Solar Power Plant is based on various technical data including Site Contour Survey, Soil Load

Bearing Capacity, Module & Inverter Specifications etc. Further, choice of technology plays an important role in Plant

Engineering.

The reasons for delay during Engineering phase are• Delay in conducting the preliminary surveys & studies required for Engineering. Typically these studies cost less

than 0.1% of the project cost and should be undertaken as soon as site is finalized

• Improper or incomplete assessment of all the Technical Parameters like fault level of the substation where the solar

power is to be evacuated

• Repeated Change in Specifications of Equipment, possibly because of Procurement Indecision – A change of panel

wattage from 250 Wp to 300 Wp would alter at least 50 drawings including all layouts & structure drawings.

• Carrying out different aspects of engineering in isolation. For eg. The Layout for Trenches if designed without due

concerns for roads & drainage.

Page 5: Guide to Solar Project Implementation

EPC – Concerns for Delay

Engineering Procurement Construction

Delays in delivery is the most common reason for delay of solar project, particularly because of delay in procurement

of Long Lead equipment:

Transformers: Lead time 6 – 10 weeks

Solar Power Plants typically use Double Primary Winding, low loss transformers which are made to order for projects.

The typical lead time is 6 – 10 weeks based on the make and spec of transformer. It is often not possible to squeeze

the timelines further as the raw material procurement for transformer assembly takes approximately 3 weeks to reach

the manufacturing plant. Further, drawing & inspection approval add to the problems.

CT, PT & Meters: Lead time 8 weeks

This equipment typically installed at the Plant Switchyard can be procured only from particular empanelled suppliers

for that state. Although, manufacturing time of these equipment is not long, however, the testing of these equipment

takes place in presence of respective discom representative’s presence and equipment is issued in the name of the

project.

Page 6: Guide to Solar Project Implementation

EPC – Concerns for Delay

Engineering Procurement Construction

HT Panels: Lead Time – 8 weeks

HT Panels are custom made according to the Voltage & Current ratings and design of the particular project. The HT

Panels contain protection equipment for the power plant at high voltage levels. The relays required to construct such a

panel are often not readily available and leads to delays.

Solar Modules: Lead Time – 6 – 12 weeks

The Solar Modules in most Indian Solar Projects are imported. Even when made with Domestic Cells, these cells have

a long lead time. On placement of order, the schedule for production is frozen which then follows the shipping period

of 14 – 21 days depending on vessel availability. Further transportation from port to site would take another 7 days.

Inverters: Lead Time – 8 - 12 weeks

Inverters till last year were mostly imported. However, with multiple inverter suppliers setting up assembly plants in

India, the lead time is reduced. In critical situations, it is not uncommon to airlift inverters meant to be imported.

Page 7: Guide to Solar Project Implementation

EPC – Concerns for Delay

Engineering Procurement Construction

Mounting Structures: 4 – 6 Weeks

Typically hot dipped galvanized iron (GI) is used for rafters and legs of module mounting structures, while cold rolled

pre galvanized sheets are made to desired sections and shapes for purlins on which the modules are fixed. There are

limited manufacturers of cold rolled steel like Jindal, Tata etc and though, there are multiple suppliers of hot dipped GI,

however, the zinc bath is often not deep enough leading to defects. Although, the lead time of Mounting Structures is

not high. However, it is the most important as Mounting Structures are the first equipment to be installed on site.

Cables: 4 – 6 Weeks

Cables are classified into 2 categories: DC Cables from module upto inverters and AC Cables from inverter upto

transmission line. Although, there are very reputed suppliers of both cables available in India, the Copper Cables are

often imported. When manufactured in India, the lead time can be as less as 4 weeks, while when imported it may

increase upto 6 – 8 weeks.

Page 8: Guide to Solar Project Implementation

EPC – Concerns for Delay

Engineering Procurement Construction

Key SuppliersModules

Canadian Solar

Yingli Solar

REC Solar

Trina Solar

Jinko Solar

Renesola

Chint Solar

Hanwha

Inverters

SMA

ABB & PowerOne

Schneider

Bonfiglioli

AEG

Hitachi

Toshiba

GE

Transformers

Crompton & Greaves

Voltamp

Emco

Raychem RPG

ABB

Areva

Schneider

DC Cables

Lapp

Leoni

Seichem

Polycab

KEI

AC Cables

Polycab

Havells

KEI

HT Panel

ABB

Areva

Scheider

Siemens

Mounting Structures

Tata Bluescope

Pennar Steel

Page 9: Guide to Solar Project Implementation

EPC – Concerns for Delay

Engineering Procurement Construction

The reasons for delay during Construction phase are

Inadequate Labor and/or machinery

Labor and machinery planning typically needs to be carried at least 2 – 4 weeks in advance in accordance with the

requirements of the implementation schedule. Skilled labor in the Solar Sector are easy to come across in states of

Rajasthan and Gujarat, while they need to be supervised closely in others.

Right of Way

The transmission line when being erected, encounters various problems of crossing private lands where the owners

might not be cooperative and demand unreasonable compensation for transmission poles / towers falling in their land.

Transmission Line for Solar Projects is covered under Activities for Public Good according to Section 63 E of the

Electricity Act and hence, the work may be carried out with Administrative Support once permissions are taken.

However, considering that the Project has a life of 25 years, it is best to establish good relations with the land owners.

Local Issues

Civil Work: Curing etc

Cable & Allied Items Quantity Mismatch

Page 10: Guide to Solar Project Implementation

EPC – Concerns for Delay

Engineering Procurement Construction

Local Issues

Solar Power Plants are typically constructed away from cities. It is typical to encounter demands of employment and

usage of locally available machinery and labor (mostly unskilled) and sometimes even sand and cement during

construction and O&M. It is advisable to take local population in confidence in the beginning of construction. For large

power plants, it would help if developmental activities like construction of a temple, school or housing is also done.

Civil Works

Civil Works wherever done require minimum curing time, else the quality of the civil structure will deteriorate overtime.

There is a shift towards Pre Fab structures to avoid this nowadays.

Cable & Allied Items Quantity Mismatch

It is not uncommon to encounter quantity mismatch of cables among other equipment during construction because of

undercalculation of lengths for bending radius, terminations and in some cases even theft on site. It is best to order a

contingency of at least 5 – 10% extra.

Page 11: Guide to Solar Project Implementation

Permits – The Little Known Devil

Pre Construction During Construction Commissioning

• State Nodal Agency Registration

• Power Purchase Agreement

• Acquisition, Mutation and

Registration of Land Parcels

• Permission for Evacuation of

Power to a Substation

• Change of Land Use to Industrial

• Consent to Establish from

Pollution Control Board

• MNRE Exemption Certificates for

Customs & Excise Duty

• Chief Electrical Inspector Approval

for Drawings

• CT / PT & Meters Inspection

• Transmission Line Permits

• Labor Licenses

• Chief Electrical Inspector Approval

of Installation

• Consent to Operate from Pollution

Control Board

• Permission for Connecting Plant to

Substation

• Commissioning Certificate

Page 12: Guide to Solar Project Implementation

Permits – Concerns for Delay

Pre Construction During Construction Commissioning

• State Nodal Agency Registration

• Power Purchase Agreement

• Acquisition, Mutation and

Registration of Land Parcels

• Permission for Evacuation of

Power to a Substation

• Change of Land Use to Industrial

• Consent to Establish from

Pollution Control Board

• MNRE Exemption Certificates for

Customs & Excise Duty

• Chief Electrical Inspector Approval

for Drawings

• CT / PT & Meters Inspection

• Transmission Line Permits

• Labor Licenses

• Chief Electrical Inspector Approval

of Installation

• Consent to Operate from Pollution

Control Board

• Permission for Connecting Plant to

Substation

• Commissioning Certificate• Land Acquisition & Final

Negotiation can take a long time

particularly for large solar power

plants covering 100’s of acres.

• Permission for Evacuation is

typically given after Load Flow

Studies which can take upto 4 - 6

weeks

• Change of Land Use can take

considerable time, often many

months, as they require the

consent of Collector or SDM.

• Although, the process of MNRE

Exemptions is very well defined

and transparent. However, it

requires accurate & correct

calculation of BoM, else any

change would lead to delays.

• CEI and Commissioning Teams

are mostly cooperative. However,

when running against timeline, and

particularly when other plants in

the vicinity are also scheduled for

commissioning, it is important to

avoid scheduling conflicts.

Page 13: Guide to Solar Project Implementation

Recommendations

Delay of 1 day in

commissioning of a 10 MW

Plant leads to a loss of

Rs. 6.5 Lacs in terms of

Loss of Generation and

Interest During Construction

in addition to the statutory

penalties in case of

exceeding timelines.

• Carry on the Technical Assessment Studies – Soil Testing, Contour

Survey, Load Flow Analysis – which comprise less than 0.1% of the cost

of project as soon as site is finalized.

• Do not wait for the ideal proposal – land, EPC or Financing – as settling

for the best proposal available would enable project completion in time.

The risk of delay far outweighs the extra cost.

• Manage Lead Times of the critical equipment

• Unlike other infrastructure projects, Solar Power Projects are built over a

small time of 4 – 8 months. Adopt a pro active approach to any problem.

• Understand and respect the Permits and Clearances required. Although,

a small part of the project cost, they can handicap execution beyond

repair if due attention is not given.

Pre Warned is Pre Armed...

Page 14: Guide to Solar Project Implementation

”“About Gensol Consultants Pvt Ltd

Gensol, an ISO 9001:2008 certified company is a pioneer in Solar Power Advisory and Project Execution. Gensol is an advisor to 800MW+ commissioned or under construction Solar PV Projects and has a cumulative portfolio of more than 1 MW of rooftop solar power plants under execution.

• Solar Advisory & Project Execution• Carbon Advisory & Trading

• Renewable Energy Certificate Advisory & Trading

• Power Trading

360o Clean Energy Solutions:

Page 15: Guide to Solar Project Implementation

About Gensol Consultants Pvt Ltd

Few Facts:

• 30+ Trained Team - all Graduates and Post Graduates in

Energy and Environment

• 800 MW+ Solar Power Projects under advisory

• 1 MW+ Solar Rooftop Projects under Execution

• Recipient of multiple awards including BusinessWorld Hottest

Young Entrepreneur and Economic Times Power of Ideas.

Quoted In:

Business Dailies: Business Standard | Economic Times Business

Magazines: Business India | Forbes India

Industry Journals: Power Line | Energetica | EQ International

Empanelled With:

Ministry of New & Renewable Energy

ANERT, Kerala (10,000 solar rooftops program)

Central Bank of India, PTC Project Financial Services,

L&T Infra Finance & Other Banks

Page 16: Guide to Solar Project Implementation

Solar Advisory & EPC Services

Owner’s Engineer:As Owner's Engineer, we guide our clients or investors through the complete process of project feasibility, financial closure, bid process management, vendor finalization and supervision of project execution up till successful project commissioning which meets our strict quality criteria.

Lender’s Engineer:Being consultants to some of the leading lending institutions in the country, we assess the key parameters impacting the returns from the project like generation, cost and conditions of the EPC Contract, preparedness of Project Developer for execution etc.

Detailed Engineering and Vetting of Drawings:Gensol Solar Division is staffed with experienced Electrical, Electronics, Mechanical and Civil Engineers who undertake detailed engineering of Solar PV Power plants on behalf of EPC Contractors and vetting of drawings for Project Developers and investors.

Permits & Clearances:It takes more than 32 permits and clearances from Nodal Agencies, District Authorities, Distribution and Transmission Companies etc. Gensol has an experienced liasoning team well aware of process and people to acquire these permits in time and in sequence.

Detailed Project Report:A Detailed Project Report is one of the most important documents to assess the feasibility of project and to get financial closure. Gensol with its sector expertise and established standing in the renewable energy consultancy not only gives the most exhaustive analysis of the project but also enjoys the confidence of industries, investors and banks alike.

Solar EPC ServicesGensol, being a channel partner of Ministry of New and Renewable Energy (MNRE) has attained amongst the highest allocation of subsidies for the Solar Rooftop Projects on account of its superior engineering, standardized procurement and quick execution. Gensol has executed projects in the range of 1 kW powerpacks to 400 kW single rooftop power plants.

Page 17: Guide to Solar Project Implementation

”“Experience Snapshot

Gensol is among the leading consultants to Project Developers, Financial Institutions and Investors. Total portfolio of Solar Power Projects commissioned or under construction under advisory at Gensol is more than 800 MW.

• 33 MW – Sterling & Wilson, Rajasthan• 25 MW – Alex Astral Solar Power Ltd., Gujarat• 20 MW – Essel Infraprojects, Maharashtra• 20 MW – SolaireDirect, Punjab• 17 MW – Sunrays Power Solutions, Rajasthan• 15 MW – NALCO, Orissa• 10 MW – Ghodawat Energy, Rajasthan• 6.5 MW – Haryana Power Generation Corporation Ltd,

Haryana Govt Enterprise• 5 MW – Alex Spectrum Radiation Pvt Ltd, Rajasthan• 3 MW – Par Solar, Rajasthan• 1.5 MW – Agarwal Infratech Ltd, Gujarat• 350 kW – Mapro Foods Pvt Ltd, Maharashtra

Owner’s Engineer:• 130 MW – Welspun MP Energy, Madhya Pradesh• 50 MW – Welspun Energy Ltd, Rajasthan

• 25 MW – Sun Edison, Gujarat• 20 MW – PLG Power, Gujarat• 15 MW – MI Mysolar 24, Gujarat• 15 MW – Dreisatz Mysolar 24, Gujarat• 10 MW – Greeninfra Solar, Gujarat• 10 MW – Millenium Synergy, Gujarat• 6.5 MW – Sun Group, Gujarat • 6 MW – Indiabulls Power, UP & Maharashtra • 5 MW – ESP Urja, Gujarat

Lender’s Engineer:

• 20 MW – Client Confidential, Gujarat• 12 MW – Lanco Solar, Andhra Pradesh• 8.5 MW – Jain Irrigation, Maharashtra• 5 MW – ABB Ltd, Gujarat• 1 MW – L&T ECC Division, Rajasthan

Detailed Designing & Design Vetting• 20 MW – Sai Sudhir Energy, Andhra Pradesh• 10 MW – Sai Sudhir Energy, Karnataka• 5 MW – Chemtrol Industries, Rajasthan• 2 MW – Shri Bhagirathi Textiles Ltd, Maharashtra• 15 MW – Boyance Infrastructure, Rajasthan• 5 MW – Sattva Salarpuria Group, Karnataka• 1 MW – NIT Hamirpur, Himachal Pradhesh

Feasibility Analysis & DPR:

Page 18: Guide to Solar Project Implementation

Experience Snapshot

• 163 MW Grid Connected Gujarat

• 130 MW Grid Connected Madhya Pradesh

• 129 MW Grid Connected Rajasthan

• 55 MW Grid Connected Punjab

• 35 MW Grid Connected Maharashtra

• 18 MW Grid Connected Karnataka

• 15 MW Grid Connected Odisha

• 6.5 MW Grid Connected Haryana

• 2 MW Grid Connected Uttarakhand

• 2 MW Grid Connected Uttar Pradesh

• 1 MW Grid Connected Himachal Pradesh

• 300 kW Rooftop Grid tied Andhra Pradesh

• 100 kW Rooftop Grid tied Karnataka

• 92 kW Grid Tied & Off Grid Gujarat

• Empanelled with ANERT, Kerala for 10,000 Rooftops

Solar Program

Advisory:

Execution:

”“Gensol is among the forefront of Solar Rooftop execution with more than 1 MW as its clientele ranging from 1 kW power packs upto 400 kW single rooftop power plants.

Page 19: Guide to Solar Project Implementation

”“Experience Snapshot

Gensol Consultants is a member of the Power Exchange for trading of Power and RECs and also has portfolio in excess of 10 million carbon credits across 16 states in India.

• Maize Products

• Yes Fashions

• Dishman Pharma

• Jay Chemical Industries Ltd

• Aarvee Denims and exports Ltd.

• Texmo Industries

• Heavy Metals

• Brigade group

• B K Developers

• Green Ply

• Time Technoplast

• Paramount Paper Steel Cast Ltd.

• Madhu Silica Pvt Ltd

Power Trading Clients:

• P & R Engineering Services Ltd.

• Sayaji Industries Ltd.

• Baghauli Sugars

• Santlal Industries Ltd

• Vishal Paper Industries Pvt Ltd

• Shree Bhageshwari Papers Ltd

• Daulat Rice & General Mill

• Ganga Pulp & Papers Ltd.

• RP Basmati rice Ltd.

REC Based Projects:• Hotel Golden Emerald

• Sree Minerals Pvt Ltd

• BVSR Energy Systems

• Singrun Realities

• RCM Fashion Suiting Ltd

• NecLife Science Ltd.

• Balaji Waffers Ltd

• Texmo Ltd

• Pothys

• Zaveri & Co. Exports

• Sanghvi Forging Eng. Ltd

• Ispat Udyog.

• Kishco Ltd

• Jindal Steels.

• P & R Engineering Services Ltd.

CDM Clients:

Page 20: Guide to Solar Project Implementation

Gensol Engineering Pvt Ltd | Gensol Consultants Pvt Ltd

Corporate Office108, Pinnacle Business ParkOpp Royal Arcade, PrahladnagarAhmedabad, GujaratIndia - 380015

Email: [email protected]: www.gensol.inPhone: +91 79 40068235Fax: +91 79 40068239Twitter: gensol_tweets

Gensol is one of the leading consultants and system integrators for Solar Power Plants. We boast of a portfolio of over

800 MW of Solar Photovoltaic Plants. Gensol is also a channel partner to Ministry of New & Renewable Energy and

installs kW scale Solar Rooftop systems on a turnkey basis with more than 1 MW of cumulative installations across the

country.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular

individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such

information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on

such information without appropriate professional advice after a thorough examination of the particular situation.