A utility scale Solar PV plant can be installed through following options –
A. Sale of electricity to Utility –
Utility usually refers to state power generation or distribution companies (MAHAGENCO) or other large central power entities such as NTPC. The solar plant developer sells power to the DISCOM at Average Pooled Power Cost (APPC) which is fixed by each state, and is usually lower than the PPA/FIT tariff. The developer additionally receives Renewable Energy Certificates (RECs) that can be sold to entities with a Renewable Purchase Obligation (RPO). This model is currently not very popular in India due to poor sales of RECs
B. Captive Consumption –
For power plant developers who also happen to be running energy intensive businesses, the best route to sell power is through the captive consumption of the solar power generated by their own power plant.
The solar plant developer is also the consumer of power. Here, the cost to consumer is the cost of obtaining solar power at the facility i.e., landed cost of power.
A captive plant need not be located at the facility. If located some distance from the facility, the cost of transmitting power to the facility (including open access charges) will need to be paid to the grid operator. This cost will need to be added to the cost of generation of solar power to arrive at the landed cost of power at the facility.
Solar generation under captive consumption is also eligible for RECs, provided that no concessions have been obtained.
The solar plant developer is also the consumer of power. Here, the cost to consumer is the cost of obtaining solar power at the facility i.e., landed cost of power.
A captive plant need not be located at the facility. If located some distance from the facility, the cost of transmitting power to the facility (including open access charges) will need to be paid to the grid operator. This cost will need to be added to the cost of generation of solar power to arrive at the landed cost of power at the facility.
Solar generation under captive consumption is also eligible for RECs, provided that no concessions have been obtained.
C. Open Access and PPA –
A captive plant need not be located at the facility. If located some distance from the facility, the cost of transmitting power to the facility (including open access charges) will need to be paid to the grid operator. This cost will need to be added to the cost of generation of solar power to arrive at the landed cost of power at the facility.
Solar generation under captive consumption is also eligible for RECs, provided that no concessions have been obtained.
The solar plant developer signs a PPA with a private consumer for sale of power. The price is usually decided based on negotiation. The PPA term can be around 20-25 years initially. The private consumer will need to apply for Open Access to buy power from anyone other than the utility. Solar developers who sell power to private consumers are entitled to RECs, provided the consumer is not under a Solar Purchase Obligation.
Solar generation under captive consumption is also eligible for RECs, provided that no concessions have been obtained.
The solar plant developer signs a PPA with a private consumer for sale of power. The price is usually decided based on negotiation. The PPA term can be around 20-25 years initially. The private consumer will need to apply for Open Access to buy power from anyone other than the utility. Solar developers who sell power to private consumers are entitled to RECs, provided the consumer is not under a Solar Purchase Obligation.
