Smart Energy Strategies
Dr. KRS Murthy
CEO
I3 World
(408)-464-3333
Mr. Shreedhar Kadur
President, i3 Energy
+91-879-255-8986
Current Solar installations in the World
1. Solar Energy
Conversion Efficiency - Very Poor – Below 15%
2. Land required per MW
– 6 acres to 10 acres -Too much
3. Horizon to Horizon
Power Production in a Day: Low during sun rise and sun set; Peaks only during
noon; uneven power throughout the day
4. The specified power
is only during mid for one hour or less
5. Rest of the day from
sunrise to 11 AM - starts with 5 % or less at 30 minutes or 1 hour after
sunrise of the specified power ("peak power") increasing only 10% per
hour.
6. Rest of the day from
1 PM to sunset: decreases from the specified peak to zero at 10 % per hour
7. Over 12 months of the
year: Specified peak only one day of the year.
8. All other days, weeks
or months: only 60% to 90% of the specified peak
Our Solution Advantage
•Cheaper per MW or multi
mega watt farm
•Better in output
profile in a day, with flat output compared to all in the solar industry with a
bell curve profile and only one hour of the specified peak
•Better in total power
output in a year - Our solution produces 70 percent more output for the same
specified 1 MWp compared to all in the solar industry.
•Better in scaling up
•Better in total
installation speed
Gujarat Solar Project
•This 590 MW "Solar
Park" is located at village Charanka, District Patan in
Gujarat
•Spread across 5,384
acres of unused land.
•This is Rs 4500 Crore divided
by 590 MW = Rs 7.63 Crores per MW
Murthy:
•This is about 9 acres
per MW.
•This is the most
inefficient use of the land in the solar history.
•It is 20 year old and
most inefficient art and surely NOT state of the art)
•Crystalline mono or
poly solar needs 6 acres MW.
•I3 technology requires
less than 2 acres per MW.
•Look at the ratio of
inefficiency. 9:6:2
Gujarat Solar Park Stats
I3 Technology Comparison in BOLD
•LOCATION : Charanka Village, Patan,
Gujarat
•AREA : +2000 hac.
( approx 4900 acres ) - versus 1088 Acres
•PLANT CAPACITY : +500
MW (on completion) versus 2500 MW in the same land
•DEVELOPERS/COMPANIES
INVOLVED : 17 versus We are OK with multiple contractor
developers
•PROJECT COST : We
are price competitive
•We could install 500 MW
in less than a year
Comparison List
•Our technology costs
less per MW
•Takes less time
installation
•Our technology would
have provided 2450 MW, which is more than FOUR TIMES the output)
•Produces about 70 %
more electricity per MW of solar installation
•Produces close to flat
output from sunrise to sunset
•In comparison, this
Gujarat installation produces
–A bell curve shaped put
from sunrise to sunset
–Starting from zero
output slowly increasing along that bell curve
–Peaking at noon
–Further declining to
zero along the other side of the bell curve.
–To clarify, the bell
curve power production of this Gujarat installation produces to specified 590
MW:
•Only for one hour or
less in a day,
•And not on all days of
the year
•But only one day in the
summer
•And NOT on Gujarat land
•But only if it were
installed on the equator
Cost and Savings in Scaling Up
•Total cost is in the
range of Rs. 6.5 Crores and Rs 7.0 Crores
•Total cost will be
lower on a per MWp basis for larger farms,
•Example: 1MWp to 10 MWp to
50 MWp to 100 MWp the overall cost savings include many
parameters.
•Every step increase in
the size of the solar farm in the above example, the overall savings can be
from 5% to 8%
•It is also important to
compare the following:
–Total land required per MWp
–Speed of installation
–Total power output in a
year for a given location
–The power production
profile in a day (diurnal variation or diurnal profile)
–Seasonal variations
–Cost of operation and
maintenance
I3 Solar
Advantage – 10MW Example
•The total solar power
production from our solution is 70% more compared to all in the industry.
•Therefore our
equivalent price based on annual power production cost, with an example that
our solution conservatively produces only 70% more output per year:
•Rs 75 Crores Divided
by 1.7 = Our equivalent price Rs 44 Crore, far lower than any company in
the solar industry.
•Another perspective on
total PPA revenue per year:
•13 M units for
competitors Versus 22 M units for i3
•At Rs 10 per unit:
•Rs 130 M = Rs 13 Crore Versus
Rs 220 M = Rs 22 Crore
•Great advantage in
Return on Investment (ROI)
Cost Break Down
•Cost break down of a 10 MWp solar
example.
•This is ONLY an
example.
•Each farm location
requires a visit to provide a detailed and definitive price quote.
•Our general labor and
technical labor rates for transportation, logistics, civil works and trained
panel installation etc cost estimates are based on USA rates.
•The total estimate for
Indian labor and technically trained installation team could be lower once we
do a solar farm site visit.
•The labor rates in C
and D level cities in India could also reduce the cost estimate further.
Important Assumptions and Exclusions
•The capital expenditure
(capex) of a 1 MWp solar farm solution without batteries
•Has the hooks to be
grid tied, with a transformer output at the perimeter of the solar farm.
•Does NOT include
lateral grid - tie high tension wires
•Does NOT include right
of way from the solar farm to the nearest electrical grid substation, that can
accept 1 MWp
•For larger solar
installations, the lateral high tension wires to the closest substation may be
many kilometers, with high cost & time to obtain all needed right of way
from farmers, who are probably individual farmers with small lands.
Solar Cell Manufacturing Pricing
•Here are the details of
the solar cell manufacturing factory, turnkey services for high efficiency
solar cells
•Annual Production of
the Cell Factory - 80 MW - Three Shifts
•Turn Key Services:
–All aspects from
building layout
–Power, water and other
utility planning and hook up
–Equipment set up
–Production line
connections and set up
–Recruitment and
training of the employees, supervisors, managers and executives
–One year of operation
of the factory
•All materials and other
supply chain services
•All Incoming Inspection
Services
•Planning for Inventory
Management Services
•Operation and
Maintenance
•Total Price of
the Solar Cell Manufacturing Factory Turnkey - $25 M
Solar Cell Factory Payment Terms
•All payments are in
advance
•Escrow of $1 M set
aside upon initial interest for our services
•Payment $200,000 for
site visit, site survey, initial planning
•At contract signing:
20% of the total
•Before we get the
equipment ready for shipping: 60% of the total
•After the equipment
arrives at the installation site: 10% of the total
•After completion of the
factory set and the first line of cells come out for a week - Remaining of the
total price
Not Included in Solar Cell Estimate
1.Cost of the building
2.Import duties
3.Local / domestic taxes
4.Any pay off to
government decision makers
5.Cost of land
6.Land acquisitions
process costs
7.Land preparation
8.Land grading
9.Any parking etc.
outside the factory building
10.Employee and
management salary and benefits
11.Cost of all supplies
to produce the solar cells
Contract Details Matter
•It is important to
compare different costs / budgets or prices line by line, to include all
included and not included.
•The cost and breakdown
and any variation depends on the local labor, transportation and other
logistics costs.
•Cost of land is NOT
included.
Cost and Savings in Scaling Up
•Total cost is in the
range of Rs. 6.5 Crores and Rs 7.0 Crores
•Total cost will be
lower on a per MWp basis for larger farms,
•Example: 1MWp to 10 MWp to
50 MWp to 100 MWp the overall cost savings include many
parameters.
•Every step increase in
the size of the solar farm in the above example, the overall savings can be
from 5% to 8%
•It is also important to
compare the following:
–Total land required per MWp
–Speed of installation
–Total power output in a
year for a given location
–The power production
profile in a day (diurnal variation or diurnal profile)
–Seasonal variations
–Cost of operation and
maintenance
