Optimization of Power Procurement cost at SAIL’s

Chandrapur Ferro Alloy Plant (CFP) through Renewable

Energy Sources (Green Energy)
 Agenda

 Setting the Context

 Indian Power Market

 Renewable Energy – Probable Options for C&I consumers

 Initiatives & diverse Regulations for Renewable Energy

 Policy Landscape – Maharashtra

 Probable solutions for sourcing RE power

 Recommendations & Way Forward 2

 Setting the Context

 SAIL-CFP is exploring alternatives for optimizing its power Scope of Work

consumption with dual focus on financial efficiency and
integration of renewable energy.
 In this regard, SAIL-CFP has appointed PTC to devise its
strategy for RE power procurement. PTC through a feasibility
study will assist SAIL-CFP in its objective of meeting the
power requirement through renewable sources through
evaluating Techno-Commercial aspects, Regulatory
Landscape, Preparation of tender documents including PPA.
 Presently, SAIL-CFP is procuring power from their
incumbent Discom MSEDCL which details are as follows:
Preparation of Detailed Feasibility Report
•Power Procurement Analysis, Regulatory/Policy overview
•Techno-commercial Viability
•Procurement strategy & Risk Matrix
Bid Process Management
•Preparation of RFP including PPA/SHA
•Attending meetings, evaluation, comparative statement etc.
•Recommendation for supplier, execution of documents etc.

Particulars Values
CD (MVA) 55 Management of operational & commercial matters
Tentative Daily Requirement (MUs) ~1.1 •Filing of Open Access application, scheduling & Operations
•Billing, Payment, energy reconciliation
Avg. Monthly Requirement (MUs) 32.71 •Compensation, Rebate, Refund etc.
Yearly Requirement (MUs) 392.56
3
Indian Power Market

4
 Installed Capacity (GW) - India

Nuclear, 7.5, 2%
Thermal, 240.0, 56%
Wind, 44.7, 10%
Solar, 73.3, 17%

RES, 180.8, 42%

Hydro, 46.9, 11%

Small Hydro, 5.0, 1%

Total – 181 GW
Total – 428 GW Bio Power, 10.8, 3%
Thermal Nuclear Hydro Solar Wind Small Hydro Bio Power

Sector-wise Installed Capacity (GW)

Hydro
Nuclear
Thermal
RES

0.00 50.00 100.00 150.00 200.00 250.00 5

Source –CEA (Dec, 23) Private State Central
 Installed Capacity Addition and Electricity Generation

1800
Installed Capacity (GW) Generation (BUs) 1624
1600 1492
428 1376 1389 1382
450
382 399 416 1400 1242
1308 1264
400 356 370 1110
1173
327 344 1200
350 305 928 969 1026
275 1000 852
300 249
223
250 800
200 161
136 600
150
400
100
50 200
0 0

Thermal Hydro RES

Thermal Renewable Nuclear Total
Nuclear Bhutan Import Total
Source –CEA (Dec 23)

 Since FY14, installed RE generation capacity grew at more than 8.3% CAGR
 Power generation from renewable energy sources stood at 204 BUs during FY23, which is ~22% of total energy generation 6
 The country plans to increase 500 GW of installed renewable energy capacity by 2030, with 50% of requirement to be met from RE sources
Renewable Energy – Probable Options for C&I
consumers

7
 Concept of Open Access

What is Open Access? Typical charges under Open Access

As per the Electricity Act 2003, section (2) (47)

“the non-discriminatory provision for the use of

transmission lines or distribution system or associated
facilities with such lines or system by any licensee or
consumer or a person engaged in generation in
accordance with the regulations specified by the
Appropriate Commission”

Why Open Access is beneficial for consumers?

Accords better choice to consumers on transparent and
fair terms - lowers cost of electricity through competition

“Open access” is a cornerstone of the Electricity Act 2003 which is bringing competition in the distribution sector 8
 Inter-State Transaction (RJ – MH) – Third Party

Rajasthan Control Area Maharashtra Control Area

Central
₹4.20/kWh at Gen Periphery State STU Losses
Ex Bus Periphery – 3.18%
CTU Losses –
3.50%

₹ 7.44/kWh at
SAIL-CFP
RE-RTC STU facility
CTU
Generator
CTU Charges
– ₹ 0.56/kWh* STU Charges – ₹ 1/kWh
*As per MOP orders dated 23 Nov & 30 Nov Cross Subsidy – ₹ 1.69/kWh
2021, CTU charges are proposed to be waived-off State Additional Surcharge – Nil
for the electricity generated from Solar or wind Central 9
source based Project
Periphery
Periphery
 Setting-up Captive Power Plant

▸ Under Group Captive (GC) mechanism, power is purchased in a similar process like
Group Captive Power Plant
bilateral contract
▸ Emerged as a feasible and viable option Association of persons/ entities
▸ This is a feasible option in states where cross subsidy charges are very high
o Consumers of group captive power need not pay cross-subsidy charges as they are Min. 26 % equity in the plant and
exempted for a captive power plant under section 42 of the Electricity Act, 2003 consume more than 51% power
o Sale of power at mutually agreed price
o Open access charges as applicable
Variation of +10% is acceptable for
▸ Recently, with the first amendment in Electricity Rules, 2003, any subsidiaries consumption of power
companies can now consume power from RE Project set-up by their parent company
without infusing any equity, which otherwise have required to certify it as captive
transaction

 MoP on 11.04.2023, designated Central Electricity Authority (CEA) as Verification Authority for certifying inter-state captive
transactions
 CEA is in the process of establishing procedure/mechanism for certifying such captive transactions 10
 Inter-State Transaction (RJ – MH) – Captive

Rajasthan Control Area Maharashtra Control Area

Central
₹4.20/kWh at Gen Periphery State STU Losses
Ex Bus Periphery – 3.18%
CTU Losses –
3.50%

₹ 5.76 / kWh at
SAIL-CFP
RE-RTC STU facility
CTU
Generator
CTU Charges
– ₹ 0.56/kWh* STU Charges – ₹ 1/kWh
*As per MOP orders dated 23 Nov & 30 Nov Cross Subsidy – Nil
2021, CTU charges are proposed to be waived-off State Additional Surcharge – Nil
for the electricity generated from Solar or wind Central 11
source based Project
Periphery
Periphery
Initiatives & diverse Regulations for
Renewable Energy

12
 MOP’s Green Energy Open Access Rules 2022

MoP, in June 2022, notified Green Open Access Rules, 2022 with
an objective to include every consumer to contribute in achieving
India’s commitment of 500 GW by 2030.
 Reduced OA capacity to 100KW from 1 MW
 Cap on increasing of cross-subsidy surcharge as well as the
removal of additional surcharge
 Banking of surplus green energy mandated
 Green Hydrogen/Green Ammonia included for fulfilment of
its RPO

As per MOP order dated 23 Nov 2021 and its subsequent

amendments, CTU Charges shall be waived-off for Wind/Solar
Projects for 25 years for projects commissioned before June 2025

13
 Diverse RE Regulations across the states

Parameters Gujarat Karnataka Maharashtra

RE Regulations/Policies Notified Notified Notified

CSS & AS are not applicable in case of Waste-to-Energy,

Applicability of Cross CSS applicable at full rate production of green hydrogen/ammonia.
CSS & AS are
Subsidy (CSS) & *AS not applicable for
applicable full rate AS will also not applicable in case of off-shore wind
Additional Surcharge (AS) consumers paying fixed charges
projects, & if consumers are paying fixed charges

Transmission charges
Applicability of Transmission Charges at twice of the normal rate on actual
are applicable at Transmission charges at full rate
Transmission Charges flow of energy.
booked capacity

#Banking as per billing

Banking Monthly banking @ 8% Monthly banking @ 8%
cycle of consumers

Treatment of surplus Surplus energy will May be entitled for RECs for Surplus energy will lapse. RE Generator will get RECs
energy lapse such energy remain unutilized equivalent to the lapsed banked energy

1. Electricity is concurrent subject in India, every state has their own policies/regulations for RE power
2. Above-mentioned waivers are mostly applicable/provided in case of intra-state transactions on Renewable Energy 14
3. As per Electricity Rules 2005, Cross Subsidy and Additional Surcharge are not applicable on captive transaction
Policy Landscape - Maharashtra

15
 Installed Capacity (GW) – Maharashtra

Nuclear, 0.9, 2% Wind, 5.2, 11%

Solar, 5.1, 11%

Thermal, 28.8, 62%

Small Hydro, 0.4, 1%

RES, 16.6, 36%

Bio Power, 2.6, 6%

Total – 46.2 GW Hydro, 3.3, 7%

Total – 13.3 GW
Thermal Nuclear Hydro Solar Wind Small Hydro Bio Power

Sector-wise Installed Capacity (GW)

Hydro
Nuclear
Thermal
RES

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00

16
Private State Central
Source –CEA & MNRE (Dec’23)
 RE Policies - Growth

Green Energy Open Access 2023

• Open Access allowed for 100 kW

2019-2022 and above consumers

2016-2019 • Annual banking replaced with

• No capacity limit for Captive
monthly banking.
• CSS & AS are not applicable in
• Waivers like CSS withdrawn for RE • Transmission charges applicable on case of Waste-to-Energy,
2014-2016 power (CSS ₹ 1.62- 2.67/unit) per unit basis on actual generation of production of green
power. hydrogen/ammonia
• Negative/Zero fuel surcharge,
• Open access viable, more than subsidy extended (>₹ 1) to • Discom has been reluctant in • AS will also not applicable in
350 consumers optimised power consumers in drought area made according approval to group captive case of off-shore wind projects,
cost from open access including open access unviable in the state transactions. & if consumers are paying
RE Power
• More consumers shifted to Group fixed charges
• More than 400 MW RE Capacities
• Incentives like annual banking captive mode and savings were installed
and waiver of cross subsidy ₹ 1.50-2.00 /unit • Monthly banking @ 8%
provided for RE Power
• More than 1000 MW RE Capacities • Any Surplus energy after
• More than 1800 MW RE installed banking, will lapse
Capacities installed

• Discom Tariff ~₹ 7/unit & ₹

11/unit for industrial and 17
commercial & savings were ₹
~1.50-2.00/unit
 Policy Landscape – Maharashtra

SAIL –CFP Particulars Data

•Contract Demand : 55 MVA Potential Sources  Wind/Solar
•Voltage Level : 220 kV
•Annual Power Requirement : 392.56 MUs Rebate/
 The transmission charges shall be on per unit basis
Incentives
•Open Access Capacity : Nil

 Banking of energy is permitted on monthly basis @ 8% charge

Grid Tariff: Banking of
 Surplus energy will lapse. RE Generator will get RECs equivalent
Energy
•Demand Charges : ₹499/kVA/month to the lapsed banked energy
•Energy Charge : ₹ 8.12/unit (+ED)
•Electricity Duty : 7.5% of Consumption Charges  Consumer may tie up the RE capacity as per the requirement,
Capacity
irrespective of their contract demand, but subject to conditions of
Open Access Charges Restriction
resultant power flow
•STU Charge : ₹ 0.50/kWh (double for RE)
•STU Loss : 3.18%  As per RE Policy Incentives GR 30.06.2022, Electricity duty for ten
Electricity Duty years is exempted from date of implementation of wind, solar,
•Cross Subsidy : ₹ 1.69/unit (FY24)
WTE captive projects
•Additional Surcharge : ₹ 1.36/unit (FY24)

18
Probable solutions for sourcing RE
power

19
 Probable options for SAIL-CFP

RE
Sourcing

ISTS InSTS
(CTU) (STU)
On- Off-
site site
Group Captive Third party Third Party Group Captive
(Min 26% of equity) (No Equity) (No Equity) (Min 26% of equity)

REC V-
Hybrid s Hybrid
PPA Wind Solar Wind/Solar
RE-RTC around 50% RE-RTC around 50% around 30% around 20%
20-30% CUF
CUF CUF CUF CUF

1. Charges like CSS (₹1.69/kWh) will be applicable in case of sourcing of renewable energy under third party mode by SAIL-CFP
2. As per Electricity Act’03, captive transactions provides waivers for Cross Subsidy Surcharge (CSS) & Additional Surcharge (AS)
3. Considering that load of CFP is constant (~40-50 MW), it may source RE power through ISTS network without banking, under captive mode
20
4. Presently, developers are offering RE-RTC solution through oversizing the project capacity wherein >70%CUF/annum is being assured
Recommendations & Way
Forward

21
 Recommended options for SAIL-CFP

After analysing the requirement of SAIL-

CFP, policy & options available in the RE
state, the following options are Sourcing
recommended in order of priority:

 Option 1 – Sourcing of RE-RTC power On- ISTS Off- InSTS

through inter-state open access under site (CTU) site (STU)
group captive route (min 26% equity)

 Option 2 - Sourcing of Wind / Solar REC Group Captive

V-
(Min 26% of equity)
Third Party Captive
power through intra-state open access PPA (No Equity) (100% owned)
under group captive route (min 26% s
equity)
Wind/Solar Wind/Solar
RE-RTC
 Option 3 - Sourcing of Wind / Solar ~20-30% CUF ~20-30% CUF
power through intra-state open access
under captive route (100% equity) 22
 Option 1 - Inter-state under group captive (min 26% equity)

Landed Cost
RE Developer SAIL to infuse min
26% of equity in Description RE-RTC
developer’s RE Project
to make it a captive
Open Access Capacity in MW 46
transaction
RE-RTC Plant Energy at Consumer’s bus in MUs/Annum 376
74%
equity Tariff in ₹/kWh 4.20
by RE
Seller 26%Equity infusion ISTS Charges in ₹ Crs. Nil
STU Charges in ₹ Crs. 17.28
RE consumption
CSS & AS in ₹ Crs. Nil
Impact of Demand Charges in ₹ Crs. 30.08
Landed Cost in ₹/kWh 5.76
Tentative Discom Grid Cost in ₹/kWh 7.70
Savings in ₹/kWh 1.94
Anticipated Annual Saving in ₹ Crores/Annum 73
Balance energy through grid as conventional Energy
Incumbent Discom
23
Return
 Option 1 - Inter-state under group captive (min 26% equity)

• Several RE suppliers like Renew, O2 Power,

Particulars Data Particulars Data
Brighnight Power etc. may offer under RE-
RTC structure
Energy at CFP
376 MUs Project Size 150 MW Wind + • RE- RTC requires oversizing of the project
bus
(MW) 150 MW Solar which is usually 2 – 2.5 times the load

Project Financials

Salient Features
requirement which also requires higher
equity infusion
Tariff ₹ 4.20/kWh

Capex ₹ 4200 Crs • Equity contribution of around ₹ 80–100

Landed Cost ₹ 5.76/kWh Savings Lakhs

• Higher replacement of conventional energy

Debt ₹ 2940 Crs with RE. Absolute Savings are higher
MSEDCL Cost compared to other alternatives
₹ 7.70/kWh

Equity ₹ 1260 Crs • Tariff in the range of ₹4.20 – 4.60 per unit
Anticipated
per unit ₹ 1.94/kWh • 15-25 years of PPA duration
Savings
26% of • CEA has already been designated as
Equity by ₹ ~328 Crs Verification Authority for certifying inter-
Annual
₹ 73 Crs CFP state captive transaction
Savings
24
Return
 Option 2 - Intra-state under group captive (min 26% equity)

Landed Cost
RE Developer SAIL to infuse min 26%
of equity in developer’s Solar Wind
RE Project to make it a Description
(~20% CUF) (~30% CUF)
captive transaction
Open Access Capacity in MW 77 77
74% Wind/Solar Plant Energy at Consumer’s bus in
equity 120 180
by RE
MUs/Annum
Seller 26%Equity infusion Tariff in ₹/kWh 4.10 4.20
ISTS Charges in ₹ Crs. Nil Nil
RE consumption STU Charges in ₹ Crs. 13.49 20.24
CSS & AS in ₹ Crs. Nil Nil
Impact of Demand Charges in ₹ Crs. 9.61 14.42
Landed Cost in ₹/kWh 6.53 6.64
Tentative Discom Grid Cost in ₹/kWh 7.70 7.70
Savings in ₹/kWh 1.17 1.06
Anticipated Annual Saving in ₹
14.04 19.07
Balance energy through grid as conventional Energy Crores/Annum
Incumbent Discom
25
Return
 Option 2 - Intra-state under group captive (min 26% equity)

Particulars Data Particulars Data • Option to source power either

through wind or solar source.
Energy at CFP
180 MUs • Several RE suppliers like Renew,
bus Project Size 77 MW Wind Brighnight Power, Torrent etc.

Project Financials

Salient Features
may offer wind power
Tariff ₹ 4.20/kWh
• Energy replacement through solar

Savings
Capex ₹ 724 Crs is limited to 31%, whereas the
Landed Cost ₹ 6.64/kWh same is 46% in case of wind. This
is limited due to capacity
Debt ₹ 507 Crs restriction (i.e. 140% of contract
MSEDCL Cost ₹ 7.70/kWh demand);

Equity ₹ 217 Crs • Tariff in the range of ₹3.70 – 4.30

Anticipated per per unit
₹ 1.06/kWh
unit Savings
26% of Equity • 15-25 years of PPA duration
Annual ₹ ~56.5 Crs
by CFP
₹~19 Crs • Banking will be available
Savings
26
Return
 Option 3 - Intra-state under own captive (100% equity)

SAIL to develop
the project • 100% own captive project will
give high returns

Wind/Solar Plant • Fulfilment of RE targets, if any

Salient Features
100% • Energy replacement through
equity by
SAIL
wind is limited to 55% due to
capacity restriction (i.e. 140%
of contract demand);

RE consumption
• Generation Tariff in the range
SAIL-CFP of ₹3.25 – 3.40 per unit

• Transaction till life of the

project

• Banking will be available

Balance energy through grid as conventional Energy

Incumbent Discom
27
 Option 3 - Sourcing of Wind power through intra-state open
access under captive route (100% equity)

Particulars Data Particulars Data

Project Financials
Energy at CFP
214 MUs
bus
Project Size 77 MW Wind
Generation

Savings
₹ 3.25/kWh
Tariff

Landed Cost ₹ 4.78/kWh Capex ₹ 724 Crs

MSEDCL Cost ₹ 7.70/kWh

Debt ₹ 507 Crs
Anticipated per
₹ 2.92/kWh
unit Savings
Equity ₹ 217 Crs
Annual Savings ₹~62 Crs

Capex reduce by Capex increase by CUF Increase by Capex reduce by 10% &
Parameters Base Case
10% 10% 1% CUF Increase by 1%
Project IRR (Post Tax ) 18% 20% 17% 20% 22%
Equity IRR ( Post Tax) 48% 58% 41% 54% 64%
SAIL's Overall Saving (in Rs. Cr) 62 69 56 73 79
Net Present Value (in Rs. Cr) 501 553 449 574 626 28
LCOE for 25 Yrs Rs./kWh 3.25 3.00 3.50 3.03 2.79
 CTU or STU Connected Project ???

 CTU Connected Projects:

Pros Cons
Options to source power from Hybrid project and RE-RTC State specific benefit like banking, ED waiver may not be
available
Higher replacement of conventional energy with RE DSM implication: Scheduling in 15 minutes time blocks

Waiver of CTU charges if project commissioned on or before No operational projects in ISTS for C&I consumers under LTA
June 2025
Annual savings of around INR 60 - 73 Crs under captive route Will require higher equity infusion as project capacity would
be around 2.5 times

 STU Connected Projects:

Pros Cons
Banking of Power, No real time scheduling, surplus to be Surplus post utilization will lapse
utilized during the banking period
Lower equity infusion as capacity restricted as per regulations Capacity restriction up to 140% of contract demand
Annual savings of around INR 14 - 19 Crs 29
Market Offering

- Solar/Wind Power
- Ex-Bus Tariff Mode (₹4.10 – 4.30 per unit)
- More than 10 years of Lock-in period
- Captive / Third Party
- COD: 9-`12 months from PPA signing

- RTC / Solar/Wind Power

- Ex-Bus Tariff Mode (₹4.10 – 4.50 per unit)
- More than 10 years of Lock-in period
- Captive / Third Party
- COD: 9-`12 months from PPA signing

- Wind / Solar
- Ex-Bus Tariff Mode (₹4.20 – 4.40 per unit)
- Minimum 10-25 years of Lock-in period
- Captive
- COD: `12 months from PPA signing

- Solar Power
- Ex-Bus Tariff Mode (₹4.10 – 4.20 per unit)
- Minimum 15 years of Lock-in period
30
- Captive Party
- COD: 9-`12 months from PPA signing
 Way Forward

 Considering the high Cross Subsidy and Additional Surcharge in Maharashtra, it is felt that, captive/group captive is the most
viable option for SAIL-CFP.

 The higher energy generation in ISTS connected RE-RTC power provides the highest savings for SAIL-CFP. However, it would
also require higher equity infusion (~₹320-340 Crs for 300 MW project) from SAIL-CFP.

 Under Intra-state captive/group captive mode, the savings are ~₹ 14 to 19 Crs per annum for around 75-80 MW Solar/Wind
project. This would require equity infusion of around ₹ 55-60 Crs for the said project.

 Considering the above, SAIL-CFP to confirm its preferred option.

 PTC/SAIL may also consider conducting the meetings with the prospective bidders before issuance of the RFP

 PTC/SAIL may also seek budgetary offers from the prospective bidders for supply of RE power

 PTC shall prepare the RFP/tender documents for the option selected by SAIL-CFP regarding sourcing of RE power
31
Thank You
Evolution of the Indian Power Market

Indian market is here.

Consumers with min 1 MW
33
load have choice
Power Sector - Industry Structure

Ministry of Power Central Regulator

Generation Transmission Distribution Consumption

State Gencos STUs Discoms/
Private Licensee Agriculture/
Input Domestic/
kWh Commercial/
CPSUs PGCIL Transformation,
Industries/
Transmission &
Others
Distribution Losses
including unaccounted
IPPs Licensees Energy

Captive Open Access Captive

Power Trading Companies

State Govt. State Regulators

34
 Options to purchase under Open Access - details

Captive / Group Captive

Parameter Third Party Bilateral Contracts Power Exchanges
Transaction

Type of contract Customised Customised Standard

Purchase from Generator Generator IEX / PXIL / HPX

Suitable for Longer duration procurements Longer duration procurements Short-duration procurements

Manual through price Manual through price Automatic through double-side

Price discovery
negotiation negotiation bidding

Market price
No No Yes
fluctuations

Payment risk to seller No Yes No

Payment to seller Seller may provide credit Seller may provide credit Upfront before contract

Consumer(s) will hold at least

Capital Investment NA NA
26% of equity investment

Returns / Savings Significant Not conducive Not conducive 35

 Year wise RE Capacity Addition

1800 800
1600 694 700
1400 600
1200
500

No. of projects
1000
400
MW

800 374
300
600
400 200
124 100
200 92
0 0
11-13 14-16 17-19 20-22
FY
Wind Solar No. of projects
36
Source- MEDA
MERC RPO Regulations 2019

MERC Renewable Purchase Obligation

FY Non-Solar Solar Total

FY 21 11.5% 4.5% 16%

22 11.5% 6% 17.5%

23 11.5% 8% 19.5%

24 11.5% 10.5% 21.5%

25 11.5% 13.5% 25%

37
 Renewable Energy Key Regulations – Maharashtra

MERC (Distribution Open Access) (Second Amendment) Regulations, 2023

Banking
“Banking of energy shall be permitted only on monthly basis. Provided that the credit for banked energy shall
not be permitted to be carried forward to subsequent months and the credit for energy banked during the month
shall be adjusted during the same month as per the energy injected in the respective Time of Day (‘TOD’) slots
determined by the Commission in its Orders determining the Tariffs of the Distribution Licensees;”

Provided further that the energy banked during peak TOD slots may also be drawn during off-peak TOD slots,
but the energy banked during off-peak TOD slots may not be drawn during peak TOD slots.

Banking charges shall be adjusted in kind @ 8% of the energy banked.”

Additional Surcharge
…Provided also that additional surcharge shall not be applicable for Green Energy Open Access consumers, if
fixed charges are being paid by such consumer…
38
 Renewable Energy Key Regulations – Maharashtra

MERC (Distribution Open Access) (First Amendment) Regulations, 2019

Transmission Charges
……Provided further that for renewable energy based MTOA and LTOA transactions,
the applicable transmission charges shall continue to be on per unit basis, except that
the same shall be equivalent to two times the approved transmission charges for short
term open access….

Maharashtra GR 30.06.2022
Electricity Duty
Electricity duty for ten years is exempted from date of implementation of wind, solar,
WTE captive projects
39
 Options to purchase power under Open Access

Renewable Energy
Captive arrangement
Captive / Group
Open Access Bilateral Power Exchange
Captive

Group Captive (GC) arrangement Long Term Long Term

Medium Term Medium Term -

Inter-State
Bilateral Contracts Short Term Short Term G-DAM/G- TAM

Long Term Long Term

Power Exchanges Intra-State Medium Term Medium Term -

Short Term Short Term G-TAM

SAIL-CFP can make its portfolio using combination of any available alternatives 40
 Key RE Developers

436
Details of other RE developers in
375

363

Maharashtra with projects

328
commissioned 2021
Capacity in MW

239

RE Type Wind Solar

137

136

126
Quantum (MW) 2388 1454
100

82
No. of projects 973 123

TATA RENEW FOURTH AZURE AVAADA TORRENT HERO

POWER POWER PARTNER POWER ENERGY POWER FUTURE
ENERGIES
Solar Wind 41
 Landed Cost of RE Power – Inter-State

Third Party Group Captive

(no equity infusion required) (at least 26% of equity infusion)
Description
Hybrid RE-RTC Hybrid
RE-RTC
(CUF of ~50%) (CUF of ~75%) (CUF of ~50%)
Open Access Capacity in MW 46 46 46 46
Estimated Energy at Ex-bus in MUs/Annum 403 403 403 438
Estimated Energy at Consumer’s metering point in MUs/Annum 376 376 376 376
Tariff in ₹/kWh 4.00 3.80 4.20 4.00
ISTS Charges in ₹Crores (₹0.56/kWh) in ₹ Crs. Nil Nil Nil Nil
STU Charges in ₹Crores (₹1.00/kWh) in ₹ Crs. 17.28 37.58 17.28 37.58
Cross Subsidy in ₹Crores (₹ 1.69/kWh) in ₹ Crs. 63.56 63.56 Nil Nil
Additional Surcharge in ₹Crores (₹ 1.36/kWh) in ₹ Crs. Nil Nil Nil Nil
Impact of Demand Charges (₹0.80/kWh) in ₹ Crs. 30.08 30.08 30.08 30.08
Landed Cost in ₹/kWh 7.24 7.56 5.76 6.09
Tentative Discom Variable Grid Cost in ₹/kWh 7.70 7.70 7.70 7.70
Savings in ₹/kWh 0.46 0.14 1.94 1.61
Anticipated Annual Saving in ₹ Crores/Annum 17.41 5.17 73 60.67
1. For a hybrid project, project size of 100 MW Wind & 100 MW Solar is assumed which will cater to the 96% of requirement on annual basis
2. For a RE-RTC project, project size of 150 MW Wind & 150 MW Solar is assumed which will cater to 43 MW RTC requirement
42
 Landed Cost of RE Power – Intra-State (within MH)

Third Party Group Captive

(no equity infusion required) (at least 26% of equity infusion)
Description
Solar Wind Solar Wind
(20% CUF) (30% CUF) (20% CUF) (30% CUF)
Open Access Capacity in MW 77 77 77 77
Estimated Energy at Ex-bus in MUs/Annum 135 202 135 202
Estimated Energy at Consumer’s metering point in MUs/Annum 120 180 120 180
Tariff in ₹/kWh 3.90 4.00 4.10 4.20
ISTS Charges in ₹Crores (₹0.56/kWh) in ₹ Crs. Nil Nil Nil Nil
STU Charges in ₹Crores (₹1.00/kWh) in ₹ Crs. 13.49 20.24 13.49 20.24
Cross Subsidy in ₹Crores (₹ 1.69/kWh) in ₹ Crs. 20.30 30.46 Nil Nil
Additional Surcharge in ₹Crores (₹ 1.36/kWh) in ₹ Crs. Nil Nil Nil Nil
Impact of Demand Charges (₹0.80/kWh) in ₹ Crs. 9.61 14.42 9.61 14.42
Landed Cost in ₹/kWh 8.00 8.11 6.53 6.64
Tentative Discom Variable Grid Cost in ₹/kWh 7.70 7.70 7.70 7.70
Savings in ₹/kWh -0.30 -0.41 1.17 1.06
Anticipated Annual Saving in ₹ Crores/Annum Nil Nil 14.04 19.07
1. Project Size under above options is capped up to 140% of the contract demand as being allowed by MSEDCL/MERC
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