Solar power plant developers challenges

Initial challenges

Some of the challenges faced included forest clearance for the land, grid connectivity, identifying the right type of technology etc.

Key aspects for a solar project developer:

Some of the key aspects that a solar power developer should keep in mind when setting out to develop a solar project include:

• Availability of land, water and grid
• Solar radiation
• Technology
• Feasibility report
• Incentives and subsidies
• Tariff
• PPA(Power purchas agreement)
• Financing options (debt and equity)
• IRR
• Clearances required
• EPC agency
• O&M Agency

The PPA is crucial part of the project off late. The financials will get through based the quality of PPA’s. The Government PPA’s has the edge, but funding ratio depends again on the PPA price. In open access the PPA’s are signed from the private sectors, the financial closer depends on the power purchase contract and the strength of the Power buyers. Otherwise few captive projects have funded easily depending on the self financial strength. The Captive projects may pick up once the REC (Renewable energy certificate) market start rising. But In India, government should start enforcing the RPO (Renewable purchase obligation) to the boost the REC market.  The Rooftop projects are picking in the industrials segments, The SPO (Solar purchase obligation) obligation is becoming driving factor in these segments. Few states stared the SPO in the state budget but again state governments’ needs to enforce the SPO.

Land procurement is a challenge in few states because of the state land policies. The corresponding industrial developed lands cost high and become unviable for the projects. Few projects in the Karnataka are delaying because of the land procurement process. The energy park could be solution but again the cost viability needs to be considered by developers. The government should encourage Roof top, canal based projects to address the land related challenges.

The technological innovation should be required in the SPV segment to make the Grid parity. The Capex has reduced substantial. But we should bring the grid parity to see the miracle change in the energy infrastructure. Government should encourage the R& D in the country by way of incentives and grants instead of providing the subsidy to the capex.

Operational challenges:

Operations and maintenance (O&M) is relatively simple and challenges are few. Issues, if any, are more related to the electrical works. Sometimes, the grid is not available and then the plant is not able to export power even though solar radiation is there.

Operations and maintenance can be further segregated as monitoring, Field services, and asset managements

The automation in the plant like monitoring systems, is automatic and can be monitored from anywhere using the Supervisory Control and Data Acquisition (SCADA) system. IP CCTV to monitor remotely can ease the operational challenges. For module cleaning, a high pressure water cleaning system can be installed.

Differences in projects in India and abroad

Usage of tracking systems is more prevalent in solar PV plants in foreign countries. More so in countries where the solar radiations are weaker than, say in the sun-belt countries such as India, and also where the sunny hours are less. Also, roof top solar PV installation is quite common, especially in countries such as Germany. In addition, the concept of net metering is employed.

Under the net metering concept, there can be both inflows and outflows of electricity, and the energy meter will provide a measure of the net amount.)

Generally, the plants are bigger in size as compared to India. Higher capacity inverters are also used. Moreover, string inverters are quite prevalent. In India, one needs to balance cost and quality.

The rate of interest on loans is usually lower than in India.

The skill manpower and training is another challenge in this rapid growing industry. Government should encourage and provide grants to skill development in this industry which can create employments and self entrepreneurship.