India’s first solar PV project registered under the CDM

September 24, 2011 11:58 pm

On 16th May 2011, India’s first 5 MW of installed capacity solar power project registered under the Clean Development Mechanism that uses solar PV technology for power generation.  This project is now eligible to earn carbon revenue from year 2011 onwards. Please find following details relevant to the project activity;

 

General Info

  • Project Title: 5 MW Solar PV Power Project in Sivagangai Village, Sivaganga District, Tamil Nadu
  • Project Developer: Sapphire Industrial Infrastructures Private Limited (SIIPL is a subsidiary of Moser Baer Clean Energy Limited)
  • Capacity: 5 MWp
  • Type: Grid connected solar PV
  • Location: Rettaipillai Ayyanarkulam Village, Arasani Muthupatti Panchayat, Sivagangai, District: Sivaganga, Tamil Nadu
  • Expected power generation: 8322MWh of net electricity per annum
  • Electricity buyer/PPA with: Tamil Nadu Electricity Board (TNEB) (southern grid)

Financial Information

  • Total project cost: Rs. 96,78,84,274
  • Project IRR without CDM revenue: 10.84%
  • Project IRR with CDM revenue: 12.78%
  • Power tariff: 4.50 Rs/KWh (+10.50 Rs/KWh MNRE incentives)

CDM info

  • Methodology used: AMS I.D./Version 16
  • Annual average of the estimated emission reductions (CERs) over the crediting period: 7866 tCO2 e
  • Crediting Period: 7 years (Renewable)
  • Additionality: Investment analysis
  • Benchmark: Prime Lending Rate (PLR) published by RBI

Revenue of SIIPL CDM Solar PV project

 

Technical description

  1. The project activity is solar photovoltaic based power generation. The rated capacity of the power plant will be 5MW at standard test conditions of 1000W/m2 solar radiation, 250C ambient temperature and 1.5 Air mass.
  2. North south oriented and layout with flat panel of thin film type modules of PV array
  3. Capacity of each Module is 78W (P) / any other compatible size.
  4. Inverters Capacity – 500 kW each
  5. Land area – 66 acres
  6. The DC electric power generated by the photo voltaic modules are converted into 415V, 3 phase, 50Hz, AC power in a number of outdoor inverters, stepped up to 11000V through a set of outdoor transformers located in a distributed manner all over the plant.
  7. The total power generated will be stepped up to 110kV in a 6.3MVA, 11/110kV power transformer with its associated 110kV outdoor switch gear located in a switch yard for interconnection to the 110kV transmission line of TNEB.
  8. Plant load factor: 19%
  9. Grid emission factor: 0.944793 tCO2/MWh

 

We are expecting more solar PV based Indian CDM project in near future. Following table shows solar PV CDM projects under the validation stage from India;

 

CDM solar PV projects under the validation-India

The amount of solar energy produced in India is less than 1% of the total energy demand. The grid-interactive solar power as of December 2010 was merely 10 MW (Read more on Indian electricity scenario). Government of India has taken initiative to promote solar energy in the country and have started Jawaharlal Nehru National Solar Mission (JNNSM) in 2010 (as a part of NAPCC).  Under the JNNSM, a total of 150 MW (each for 5 MW) of grid connected solar plants were awarded to 30 companies by Dec 2010.  JNNSM include generation based incentive to the each kilowatt hour of power produced by solar PV project and as a result of it, solar PV based power plants are becoming an exciting business opportunity. Carbon credits projects based on solar PV technologies are also helping the project developers to cover their project cost associated with the technology and equipments.

 

Reference;

Project Design Document of 5 MW Solar PV Power Project in Sivagangai Village, Sivaganga District, Tamil Nadu

Read more on;

Booming solar energy markets in India

Summary of Incentives and Subsidies for Renewable Energy Products by MNRE

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14 Comments

  • hi,
    can u give me some details about this project?
    thnks

    • Here at Green Clean Guide, we love to answer queries raised by our visitors. Please let us know your exact requirements. We will answer them at the best of our knowledge.

  • can you help me to understand CER revenue as /1Mwh Spv if its ok

    • Thanks for your comment. Certified Emission Reduction (CER) is popularly known as carbon credit and comes under compliance market i.e. UNFCCC administered Clean Development Mechanism (CDM). The price of the CER is market driven. Kyoto Protocol induced regulations (Obligations to buy CER to fulfill GHG emission reduction targets on developed countries mostly European nations) along with demand-supply ratio determines the price of the CER. Please read our article explaining the same here http://greencleanguide.com/2012/08/06/the-future-of-carbon-markets/

      There was very good price during past few years but the current price of the CER is not good. It’s around 1-3 Euro/CER. One CER generates when you reduce one ton of carbon dioxide emission. In Solar power project, 1 MWp plant approximately generates 1188 MWh/Year (Based on 1 MW X 24 Hours X 330 Days X 15% of PLF = 1188). You need to multiply total MWh generated by grid emission factor. For example in India, grid emission factor is 0.85 tCO2/MWh. Considering this grid emission factor, the project will reduce 1009 tCO2 emission from the atmosphere (As the solar power is green power). Therefore, the CER generation would be 1009/Year and the expected revenue would be 2019 Euros per year (Considering the price of 1CER = 2 Euro).

      Do contact us if you seek any other information.

      • Thx a lot for your Kind & Sincere support,

        But even tough if i count that its Aprox 2500CER with 2Euro/CER which makes it Rs 175,000. which is very Low isn’t it?

        And go back to the Above Table for say 5 Mwh is around 67lac for first year n they goes to 116.44 lac,

        i would appreciates your explanation above if its ok,

        Regards,

        • This Solar PV project registered under the CDM on 16th May 2011. The post is written on 24th Sep 2012. All the values considered in the revenue calculation are projected and based on YEAR 2010-11 scenarios.

          Current scenario of the price of the carbon credits is completely different. The compliance carbon market is completely linked to the international climate change negotiations in which countries are talking about the extension of Kyoto Protocol. Post 2012, we are uncertain about the future of carbon markets and its impact is visible – low carbon credit prices in international market.

          I think project developer should go for CDM (to earn carbon credits) as well as domestic market based Renewable Energy Certificate (REC) mechanism (to earn RECs). Under REC mechanism, solar project can earn Rs. 11-13 per unit (from the sale of REC) + sale of electricity on APPC price. Please read more on REC mechanism here http://greencleanguide.com/2010/12/25/renewable-energy-certificates-india/

  • Sir,

    Even though you get an RE Certified accreditation can you still apply for CDM?

    niel

  • t.praveen shukla

    sir i like to know more about your project, so i like to visit it. can u tell me the bus rout from trichy?

    • The project location is situated about 8 km from the Sivagangai town in Sivaganga district in the State of Tamil Nadu. The nearest railway stations are in Karaikudi and Manamadurai they are at distances of 65 km and 16 km respectively from the project site. Road Distance or driving distance from Trichy to Sivagangai is 130 kms. You can inquire at Trichy bus stand on following number 0431-2460992 and 0431-2333737

  • Sir,

    Even though you get an RE Certified accreditation can you still apply for CDM?

    • As long as the condition for the ‘additionality’ – i.e. the project being financially not-most-attractive in absence of carbon credit revenues is fulfilled, the project developer can continue to access REC market as well as the carbon credits under the CDM framework.

  • SRIHARI VARMA M

    dear sir,

    i am going to install 2KW Solar power plant for my residence and 5KW solar power plant for our agricultural pumpset. Can i get Carbon credits. If yes how can i get it.

    • 2 or 5 KWp is very less for generating enough electricity and hence less carbon credits. In addition, I’ve already answered in many of my posts and comments that there is no compliance market for carbon credits in India/for Indian projects. It resulted in no or very less revenue for the projects generating carbon credits.