Indo-Dutch Cooperation on Solar PV

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India has high ambitions when it comes to solar photovoltaic (PV). The country aims to have 100 gigawatt (GW) of solar PV installed capacity by the year 2022. This is about twenty times as much as the currently installed solar PV capacity in India. More specifically, the country aims to divide the 100 GW target into 60 GW of utility-scale solar and 40 GW of rooftop solar. Regarding these high ambitions and regarding the strengths of the Dutch solar PV sector1 Ministry of Economic Affairs has decided to appoint solar PV as the focus area for their activities under their Memorandum of Understanding (MoU) with the Indian Ministry of New and Renewable Energy (MNRE). This MoU aims at intensifying cooperation on renewable energy between the two countries. The market study shows that there are several solar PV related business opportunities for Dutch organizations in India. Among others, these opportunities concern research and development (R&D) activities, the supply of production machines, project finance and the supply of solar PV systems and components like inverters, mounting systems, monitoring instruments, chargers and others.

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FINAL REPORT FEBRUARY 2016 INDO-DUTCH COOPERATION ON SOLAR PV IDENTIFICATION OF PROJECTS

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2 COLOPHON Title Indo-Dutch cooperation on solar PV: identification of projects Version Final report Date February 2016 An assignment of Netherlands Enterprise Agency RVO.nl International Energy Programme PEI Project coordinator Leon Wijshoff Senior Advisor Netherlands Enterprise Agency A production of Auroville Consulting and Energy Indeed Authors Mark Meijer +31 6 41 70 96 52 markenergyindeed.com Martin Scherfler +91 9486 144 076 martinaurovilleconsulting.com Nitin Cherian +91 9655 933 511 nitinaurovilleconsulting.com

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3 TABLE OF CONTENTS 1 – INTRODUCTION ................................................................................................................... 4 2 – AIM AND APPROACH ........................................................................................................... 5 3 – CONTACTED DUTCH ORGANIZATIONS ................................................................................ 6 4 – VISIT TO INTERSOLAR INDIA .............................................................................................. 11 5 – SELECTION OF STATES IN INDIA ........................................................................................ 13 6 – SELECTION OF MARKET SEGMENTS .................................................................................. 14 7 – POTENTIAL CLIENTS AND PROJECTS IN INDIA ................................................................... 15 8 – CONCLUSIONS AND RECOMMENDATIONS ....................................................................... 17 ANNEX I – PROGRAM OF THE INTERSOLAR INDIA 2015 ......................................................... 19 ANNEX II – COMPARISON BETWEEN INDIAN STATES ............................................................. 22 ANNEX III – SOLAR PV FOR TELECOM TOWERS ...................................................................... 26

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4 1 – INTRODUCTION India has high ambitions when it comes to solar photovoltaic PV. The country aims to have 100 gigawatt GW of solar PV installed capacity by the year 2022. This is about twenty times as much as the currently installed solar PV capacity in India. More specifically the country aims to divide the 100 GW target into 60 GW of utility-scale solar and 40 GW of rooftop solar. Regarding these high ambitions and regarding the strengths of the Dutch solar PV sector 1 the Dutch Ministry of Economic Affairs has decided to appoint solar PV as the focus area for their activities under their Memorandum of Understanding MoU with the Indian Ministry of New and Renewable Energy MNRE. This MoU aims at intensifying cooperation on renewable energy between the two countries. At the Dutch side the Netherlands Enterprise Agency RVO.nl and particularly its International Energy Programme PEI is assigned by the Dutch Ministry of Economic Affairs to put this focus into practice. The basis for this is a market study that was assigned by RVO.nl and performed by Auroville Consulting from India and Energy Indeed from the Netherlands in 2014-2015. 2 This market study shows that there are several solar PV related business opportunities for Dutch organizations in India. Among others these opportunities concern research and development RD activities the supply of production machines project finance and the supply of solar PV systems and components like inverters mounting systems monitoring instruments chargers and others. Especially with respect to the latter – the supply of solar PV systems and components – RVO.nl has requested the authors of the market study to set up follow-up activities for the identification of relevant niche markets and projects for Dutch organizations in India. This document provides a brief report of those activities. Figure 1 – 7.5 MW rooftop system Beas Punjab Figure 2 – 10 MW canal-covering system Vadodara Gujarat 1 Atrivé Energy Indeed – International positioning of the Dutch PV sector July 2014 assigned by the Netherlands Enterprise Agency RVO.nl 2 Auroville Consulting Energy Indeed – New solar PV business opportunities between the Netherlands and India March 2015 assigned by the Netherlands Enterprise Agency RVO.nl. See: http://www.rvo.nl/sites/default/files/2015/05/Solar20PV20Netherlands-India20final20report.pdf

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5 2 – AIM AND APPROACH Assigned by RVO.nl Auroville Consulting from India and Energy Indeed from the Netherlands have been working together on Indo-Dutch solar PV cooperation since September 2014. The first result of this was a market study that was published in March 2015. The following chapter briefly describes the aim and approach of the follow-up activities of this market study. 2.1 – Aim In brief the follow-up activities aim: 1. To provide Dutch companies a better insight in niche markets and projects where they can showcase their products/expertise on solar PV and where they can build up experience in cooperation with Indian Partners 2. To provide the Dutch government with insight whether existing support schemes are useful for Dutch companies who want to do solar PV related business in India as well as what kind of support could be requested from the Indian Government as part of the MoU activities. 2.2 – Approach In succession the following steps have been taken: a. Brief summaries of Dutch organizations – We have contacted about 20 Dutch organizations that have shown interest in solar PV in India before in order to make brief summaries about their current activities and the kind of projects and/or partners that they are looking for in India see Chapter 3. Some organizations like Cityblob DNV GL Esdec Orange Solar Philips Lighting PR Electronics and Solarus have provided input during face-to-face meetings with Leon Wijshoff RVO.nl Mark Meijer Energy Indeed and/or Vijay Kumar Netherlands Business Support Office Chennai. Others have provided input by mail and/or by phone. b. Visit to InterSolar India – Together with RVO.nl we have joined the InterSolar India exhibition and conference in Mumbai on November 18-20 2015 see Chapter 4. We have shared the results of this with the Dutch organizations. c. Selection of states – In order to create focus and to make opportunities more specific we have made a selection of states in India where the conditions for the Dutch organizations are good in the short and medium term see Chapter 5. d. Identification of niche markets and projects - Based upon the briefs of the Dutch organizations we have identified interesting niche markets and project types for Dutch organizations in the selected Indian states see Chapter 6. e. Identification of launching customers – Thanks to support from the Netherlands Business Support Offices NBSOs in India we have had discussions with Dutch organizations in India about launching an Indo-Dutch solar PV demonstration project at their site/buildings. f. Identification of Indo-Dutch partnerships – In order to make such a demonstration project happen we have linked Dutch solar PV organizations with organizations in India both potential launching customers as well as potential partners in India see Chapter 7.

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6 g. Business case analysis – We have explored the business case of a demonstration project at one specific site of a Dutch company in India. This business case analysis is part of a feasibility study that has been performed which covers both technical and financial aspects. h. Usefulness of existing support schemes – We have assessed the usefulness of existing support schemes of the Dutch government for this matter in particular the DHI-regulation for demonstration projects feasibility studies and investment preparation studies. 3 – CONTACTED DUTCH ORGANIZATIONS This chapter provides brief summaries of 20 Dutch organizations with a potential link to solar PV in India. In practice more than 20 organizations have been contacted but organizations without a potential link to solar PV in India in the near future are left out here. Later on Chapter 5 describes Dutch organizations who are based in India and who might become a launching customer. Most of the organizations mentioned have already been involved in the discussion on results of the first market study about solar PV in India. The others have been added as a result of new contacts by RVO.nl or by the authors. 3.1 – 4Washing 4Washing is a sales and marketing organization that sells fully automated window and solar PV cleaning systems to distributors and dealers. In the Netherlands the company also works on demonstration projects for building- integrated PV BIPV systems. The company’s main RD and assembly location is in India Chennai. www.4washing.com 3.2 – Cityblob Cityblob is an Amsterdam-based architecture urban planning and real estate development company. The company has several projects in India including the development of social housing units in India and the development of solar PV systems for schools in India. The latter project has also been the subject of a Master thesis by a student of the Delft University of Technology. www.cityblob.com 3.3 – DNV GL Since 2011 the former Dutch company KEMA is part of DNV GL. DNV GL provides services in several sectors Maritime Oil Gas Energy Business Assurance and Software including independent accredited certification services. DNV GL has about 100 solar PV professionals worldwide. The contact point of DNV GL for solar PV in India is their office in Singapore. www.dnvgl.com/solar

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7 3.4 – DOEN Foundation DOEN is a non-profit foundation set up in 1991 by the Dutch Postcode Lottery to invest in social cultural and environmental entrepreneurs as well as a variety of charity organisations that are unable to directly receive funding from the lottery. The focus of DOEN is on starting entrepreneurs who want to create sustainable access to energy in rural areas. The foundation is purely focussed on impact and prepared to take risks in early stages. The foundation’s geographical focus is on India and East Africa. www.doen.nl 3.5 – DSM The Dutch multinational DSM has developed an anti-reflection coating for solar panels Khepricoat that can improve the panels’ efficiencies. The company has also acquired a Dutch start-up Solar Excel that had developed a foil that ‘catches’ sunlight using a unique light management technology. To increase the demand for these products DSM works on demonstration projects to proof the performance of their products. An example of such a project is the 1 MW PV system next to their factory in Pune India. The overall focus of DSM is to create the lowest Life Cycle Costs of Ownership LCCO. www.dsm.com/solar 3.6 – Esdec Esdec develops manufactures and supplies professional mounting structures for the mounting of solar panels on roofs. These structures are called ClickFit for slanted roofs and FlatFix for flat roofs. Since the establishment of Esdec in 2004 more than three million solar panels with a combined capacity of more than 500 MW have been installed on ClickFit and FlatFix mounting structures. www.esdec.nl 3.7 – Eternal Sun Eternal Sun is an original equipment manufacturer OEM of AAA class large area solar simulators. The company mainly works with solar RD certification bodies and manufacturers. A brief impression of the company can be found on: https://www.youtube.com/watchvNjsvzaxd-Ls Eternal Sun already has several projects in India and a local representative in India to promote sell and service their equipment in the region. www.eternalsun.com 3.8 - Exasun Exasun manufacturers innovative back-contact glass-glass all-black solar panels. Their manufacturing takes place in the Netherlands. So far the focus of the company has not been on India but this might be different next year.

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8 In particular the company might be looking for building-integrated PV BIPV projects in India. www.exasun.com 3.9 – Heliox Heliox is a company specialized in switch mode power technology. The company designs and manufactures products and solutions for a broad range of markets such as PSUs Class D amplifiers lamp drivers chargers and inverters. This includes inverters for special purposes like solar PV micro- inverters for the built environment. The company is not just a design company. Their product can be manufactured by themselves or by another company but they always want to have a share in the sales revenues and they ask for a partial compensation when there is a shared development of a product. Since recently the company is active in India with Electric Vehicle EV chargers for heavy vehicles like buses. The company also has an agent in Mumbai. Heliox does not have any solar PV projects yet in India but they are open for collaboration. www.heliox.nl 3.10 – Hukseflux Hukseflux supplies monitoring equipment for solar PV systems. Customers are served through their main office in the Netherlands and locally owned representations in the USA Brazil India China and Japan. The company is very active in India. In fact Hukseflux is currently setting up an independent company in India: Hukseflux India. www.hukseflux.com 3.11 – Kipp Zonen Hukseflux originates from another Dutch company Kipp Zonen. Kipp Zonen supplies monitoring equipment for solar PV systems as well. The company is active almost all around the world and currently has one distributor in India in New Delhi. In the near future the company might expand its number of representatives in India. www.kippzonen.com 3.12 – Orange Solar Orange Solar provides solar panels inverters and solar production lines. The solar panels can be divided into two categories: 1 specials e.g. flexible light-weight custom-made panels and 2 more ‘standard’ solar panels. The first category is produced in the Netherlands while the second category is produced at several other locations in Europe. The company sells worldwide. www.o-solar.com

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9 3.13 – Philips Lighting The Dutch multinational Philips is present in India since the year 1938 . In India the company for instance supplies street lighting on solar energy. The solar part of these projects is performed by an Indian company Topsun Energy. In general the company is in the middle of a business transformation from products to services so for instance from supplying lamps to supplying a certain amount of lumen for a certain amount of time. http://www.lighting.philips.com/main/products/solar.html 3.14 – PR Electronics PR Electronics develops power electronics technology for original equipment manufacturers OEMs. This includes the development of technology for solar inverters but also for fast charging stations for electric vehicles. For instance the company has developed the technology for the famous FastNed charging stations in the Netherlands: http://fastned.nl/en/. Since recently PR Electronics is also the RD partner of Rural Spark. www.prelectronics.com 3.15 – Rural Spark Rural Spark is a Dutch start-up founded in 2013 by Evan Mertens Harmen van Heist and Marcel van Heist. The company delivers smart grid solar solutions at the ‘base-of-the-pyramid’ BoP in rural India. The company has an office in Delhi and a project with over 1500 households in Bihar. So far Rural Spark has received around 750k of investments and 125k in grants. www.ruralspark.com 3.16 – Solarus Solarus develops manufactures and supplies innovative CPVT systems which concentrate sunlight for both solar PV and thermal energy. The output of these systems is 80 heat and 20 electricity. Therefore the most interesting clients for Solarus are industrial buildings with a substantial heat demand. However the systems can also be used for cooling purposes. The company is based in Venlo the Netherlands. This is also where the core of the systems is produced. The company can supply up to 25000 collectors per year. Solarus has MoUs with two Indian organizations: TARA and Sunquest. Solarus also has a partner in Chennai who is also involved in the solar cooling projects of TNO in India. www.solarus.com 3.17 – TNO The Netherlands Organisation for Applied Scientific Research TNO was founded by law in 1932. With approximately 3800 employees it is the largest research institute in the Netherlands. Besides pure research the organization also offers consulting services and grants licences for patents

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10 and specialist software. Moreover TNO sets up new companies to market innovations. Regarding solar PV in India TNO does several things: 1 FDOV adjusting and implementing a solar powered cooling technique for decentralized storage and cooling of agricultural products 2 MPEDA using solar energy for water purification at fish farms in collaboration with CSIRO and 3 using solar energy to convert biogas into CNG for transport purposes. www.tno.nl 3.18 – Triodos Foundation Triodos Foundation supplies small donations – typically 5000 or 10000 euro – to projects which are not too big the donation should make a difference and often non-profit. In the past the foundation had a specific fund for renewable energy projects but the money of this fund is spent. Currently there is not such a fund. Occasionally energy projects might be funded by general means. www.triodosfoundation.nl 3.19 – Victron Energy Victron Energy is the world’s market leader in quality products for autonomous power supply. The company supplies solar charge controllers and inverters as well as batteries and solar panels. The company produces in India and also has projects in India. A project example is the transition of a guesthouse in Auroville from an oversized diesel generator to a solar-based electricity supply. www.victronenergy.nl 3.20 – Walraven Walraven is a Dutch multinational founded in 1942. The company is still in the same family hands. Walraven’s products are used by tens of thousands of installation companies in Europe North America Latin America Africa the Middle East Asia and Australia. The company has about 950 active employees. The company has three product groups: 1 fire protection systems 2 sanitary systems and 3 fixing systems. The latter group includes mounting systems for solar PV both for rooftop systems as well as for ground-mounted systems including large solar farms in China. The company recently started a production facility in India in a joint-venture with their partner in Dubai which is now fully ready for large and medium- sized systems at least 24 panels. Their strategy is ‘local for local’: their products produced in India are for the Indian market. Currently the company focuses on large PV projects both from public and private organizations. They are not really competitive concerning small

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11 systems. Their added value is that they can provide a total solution including all calculations project engineering etc. www.walraven.com 3.21 – ZigZagSolar ZigZagSolar supplies a smart solar facade system. This system offers both high architectural exposure and energy harvesting options. A brief impression of the company can be found on: https://www.youtube.com/watchvyMVsxy_EHfg ZigZagSolar focuses on new buildings with many facades. The company is preferably already involved in the first design. ZigZagSolar can make all the solar calculations including the shadow effects from surrounding buildings. www.zigzagsolar.com 4 – VISIT TO INTERSOLAR INDIA We have asked the Dutch organizations mentioned above if they would be interested to visit the InterSolar India conference and/or exhibition in Mumbai on November 18-20 2015. Intersolar is India’s largest solar exhibition and conference. With enough interest visiting this event could have been combined with other solar PV related visits in India. Unfortunately at that moment in time there was not yet enough interest. Still though several Dutch companies were present and we managed to collect information and contacts for Dutch organizations that were not yet present. Three Dutch companies were present with a booth at the exhibition: Hukseflux see paragraph 3.9 Kipp Zonen see paragraph 3.10 and Victron Energy see paragraph 3.18. Besides DSM see paragraph 3.4 was present as the main partner of the conference. RVO.nl Auroville Consulting and Energy Indeed were present at both the conference and exhibition to collect sometimes specifically requested information and contacts for Dutch organizations that were not yet present. After the event relevant information for instance typical prices and contacts have been shared with the Dutch organizations. Below Figure 3 a brief summary of the event is given. Figure 3 a – Impression of the InterSolar India 2015 in Mumbai source: InterSolar 2015

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12 Figure 3 b – Impression of the InterSolar India 2015 in Mumbai source: InterSolar 2015 The conference program which can be found in Annex I focussed on a broad range of subjects of interest for the on-going developments in India. Part of the program was dedicated to the Indo- German cooperation which showed to be very strong and strongly supported by the 1 billion euro loan arrangement made between Prime Minister Modi and German Chancellor Merkel. Besides many research related issues the development of the large solar PV projects was a topic of high interest. Dr. Kahre head of the solar programme of the Ministry of New and Renewable Energy paid specific attention to the fact that the tender system had already led to strong price reductions as the latest that tender in the state of Maharashtra has resulted in a price below of 5 INR/kWh 0.06-007 euro for a 500 MW solar farm. Next to these promising messages there were also some critical notes quality might get to too little attention because of the strong focus on price. The exhibition showed that the solar PV business in India is growing. Solar PV cells and modules are still mainly produced abroad but production of other parts of solar PV systems is already strongly present in India. Contacts were made with several exhibitors to inform them about the opportunities from the Netherlands using the brochure of RVO.nl 3 . First impressions from Victron Energy on the results of the exhibition were positive. The visit to InterSolar confirmed the assumptions by RVO.nl and the authors that no direct role is foreseen for the Dutch organizations mentioned in Chapter 2 in the development of large solar farms. For the Dutch niche markets with small and medium scale solar PV projects mainly rooftop would be more interesting as the price focus might also be less in these markets. 3 Brochure: Let the Dutch provide you with smart solutions for Solar challenges”. See: http://www.rvo.nl/sites/default/files/2015/05/Zon20PV20HB20brochure2C20spread.pdf

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13 5 – SELECTION OF STATES IN INDIA In order to better deal with the scale and magnitude of the Indian solar PV market we have decided to focus the initial efforts in bringing Dutch solar PV technology and know-how on 2 or 3 federal states in India that currently promise a conducive market trend and policy environment for small and medium scale solar PV projects mainly rooftop. For this selection procedure we have used selection criteria such as: a supportive solar PV policy environment attractive electricity tariffs good national and international transport connectivity and ideally a good presence of Dutch organizations. We have given each of these criteria a qualification from reasonable 1 point medium 2 points to good 3 points. These results have been multiplied by the importance factor 1-3 allocated to the criteria. Table 1 shows a summary of the results of this exercise. Details behind these numbers can be found in Annex II. In line with Table 1 the states of Tamil Nadu Maharashtra and Karnataka have been shortlisted as states that show a favourable environment for solar PV. The three states also have a strong presence of the Netherlands Business Support Office NBSO and a sizable number of Dutch companies. Different components that where compared have been weighted to arrive at the final rating for the shortlisting. No State Rooftop solar PV policy Type of policy Special features of existing policy Subsidies for rooftop solar PV Rooftop solar PV targets till 2022 Load Shedding Rating Importance: High max. 9 High max. 9 Low max.3 High max. 9 Medium max. 6 Medium max. 6 max. 42 1 Tamil Nadu 9 6 2 6 6 4 33 2 Maharashtra 9 6 2 3 6 4 30 3 Karnataka 9 9 2 3 4 2 29 4 Gujarat 6 6 1 3 6 6 28 5 Kerala 9 6 3 3 2 4 27 6 Puducherry 9 6 2 3 2 4 26 7 Odisha 9 6 2 3 4 2 26 8 Rajasthan 9 6 2 3 4 2 26 9 Delhi 6 6 2 3 4 2 23 Table 1 – Shortlist of Indian states based on rooftop solar PV policy

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14 6 – SELECTION OF MARKET SEGMENTS Besides reducing the complexity of the Indian solar PV market by focusing on some selected Indian federal states we have decided to identify specific market segments that present opportunities for Dutch organizations with solar PV related activities. We have identified market segments that have a promising trajectory for short and medium deployment of solar PV systems. We have done this identification through face-to-face talks with industrial experts and through information gained at the InterSolar see Chapter 4. Additionally Dutch strengths such as a good track record in hybrid and off grid-solutions solutions for solar PV thermal hybrid systems good products in the mounting structures and inverter segment have been considered to identify the following potential market segments: a. Telecom towers b. Petrol stations c. High-end guest houses/spas in rural areas d. Shopping malls e. Educational institutes colleges and campuses f. Hospitals g. Facilities of Dutch organizations in India h. Food processing industries. A more detailed description of segment a the telecom tower segment has been completed for the state of Tamil Nadu to enable a better discussion with the Dutch organisations see Annex III. This description includes the following components: market size and trends energy requirements for this segment policies and regulatory frameworks current trends for deployment of renewable energy technologies RETs major industries in the market and project costs and financials. This more detailed description of segment a has been shared with Dutch organizations in the solar PV sector see Chapter 3. It turned out that the telecom tower segment could specifically be interesting for Orange Solar since they are already working on solar PV for telecom towers in West-Africa. In general the Dutch companies indicated not to have a specific focus yet on certain sectors as they missed the launching customers. Some indicated their focus on India is not a priority but they have a more medium term focus.. Therefore it was decided to take another approach in which we have tried to arrange links with Dutch organizations which have production facilities in India and might be interested in Solar projects and a Dutch touch. Another advantage of this segment would be that the Solar companies might feel more at ease to do business with a Dutch company.

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15 7 – POTENTIAL CLIENTS AND PROJECTS IN INDIA In order to accelerate the deployment of Dutch solar PV technology and knowledge in India Dutch organizations operating in India have been identified as potential entry points. A total of 17 Dutch organizations have been contacted in order to identify their interest in installing solar PV demonstration projects using Dutch technology. With the assistance of the NBSOs and the Dutch Consulate General in Mumbai Dutch organizations operating in the shortlisted states – Karnataka Maharasthra and Tamil Nadu – have been identified. 17 Dutch organizations have been contacted mail and telephone in order to find out about their interest in collaborating on demonstration projects that showcase Dutch solar PV technology to India see Table 2. In addition via these Dutch organizations contacts have been established with 7 Indian organizations see Table 3. So in total 26 organizations have been contacted. 18 out of the 24 organizations have initially responded and expressed an interest. With about 11 organizations a dialogue has been initiated with potential Dutch partners. To highlight some initial results at the time of reporting: a. Solarus – Solarus and Auroville have signed a non-disclosure agreement NDA and are planning to install a demonstration project at a local community kitchen within the next 3 months. This was initiated through a meeting of a representative of Auroville to Solarus in January 2016 and followed up by a visit of the CEO of Solarus and local Solarus representatives to Auroville in February 2016. Based on the exchange of first ideas we also looked into the opportunities for subsidy from the DHI scheme. The DHI scheme is a subsidy scheme for demonstration feasibility and investment preparation see: http://www.rvo.nl/subsidies-regelingen/dhi in Dutch. Given the fact that Solarus had been assigned a subsidy in 2015 for another project they could not apply for a subsidy for the India project. A second demonstration by Solarus at a location in Puducherry Unity Territory is currently under discussion and may be finalized soon. b. Hunter Douglas – Hunter Douglas has asked for an initial indication of the technical and financial feasibility of installing a solar PV rooftop system at one of their manufacturing units. This feasibility study has been completed and shared with Hunter Douglas. Hunter Douglas agreed that this initial feasibility study is shared Orange Solar in order to explore future cooperation. c. PR Electronics – The CEO of PR-Electronic visited India in January 2016 and met with the Managing Director of Su-Kam an Indian company that manufactures solar PV inverters to explore possible collaboration with regard to grid-interactive and hybrid inverters. d. Rural Spark – Rural Spark was introduced to Kusters Engineering BV with regard to a project that aims at bringing solar street lighting to rural villages in Maharashtra. Rural Spark was also introduced to Indian Engineering Company Prakti Design which focuses

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16 on the manufacturing of energy efficient cooking stoves and focuses on the same market segment the bottom of the pyramid market as Rural Spark. A possibility for collaboration in marketing and distribution is currently being explored. Further Rural Spark was introduced to Auroville Energy Products a potential partner in the distribution of their solar light products. e. Fourth Partner – Fourth Partner an Indian solar PV project developer expressed interest in a series of Dutch solar PV related technologies such as anti-reflection coating for solar panels micro-inverters monitoring equipment for solar plant flexible panels module cleaning technology and on-site portable power storage. An introduction to the following Dutch Organizations has been facilitated: Alfen DSM Heliox Hukseflux Kipp Zonen Orange Solar PR Electronics 4Washing/Endotec and Victron Energy. f. Solarus and DSM – DSM is considering the installation of additional solar PV systems at new locations in India and is currently considering options to work with Solarus as the hybrid collector of Solarus also provides hotwater at temperatures that are attractive for industrial applications. g. Aditya Solar – Aditya Solar an Indian solar PV project developer installer and distributor of solar PV products expressed an interest in Dutch grid-interactive inverter technologies and in partnering with a Dutch solar PV installer. Introductions to Heliox Orange Solar PR Electronics and Victron Energy have been facilitated. No Organization State Status 1 Philips Innovation Campus Karnataka Initially interested no further communication 2 Shell Research Centre Karnataka Initially interested no further communication 3 Paques B.V. Tamil Nadu Initially interested no further communication 4 Hunter Douglas Tamil Nadu Site assessment for solar PV system completed 5 DFE Pharm Tamil Nadu No response 6 Honicel BV Tamil Nadu No response 7 Shell Shared Services Tamil Nadu No response 8 Lemon Tree Hotels Multiple No response 9 Hindustan Unilever Ltd. Maharashtra Initially interested no further communication 10 Kusters Engineering BV India Maharashtra Interested in solar street lighting for rural areas 11 Rabo India Finance Ltd. Maharashtra No response 12 Akzo Nobel Chemicals India Ltd Maharashtra Initially interested no further communication 13 DSM Engineering Plastics Pvt. Ltd. Maharashtra Considering new installations on various locations 14 Fugro Survey India Pvt. Ltd. Maharashtra Initially interested no further communication 15 Heineken / United Breweries Ltd Maharashtra No response 16 Philips Healthcare Development Manufacturing Center Factory Maharashtra No response 17 TomTom India Limited Maharashtra No response Table 2 – Contacted Dutch organizations in India

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17 No Organization State Status 18 Twin City Group Maharashtra Initially interested no further communication 19 Aditya Solar Telangana Interested in grid-interactive inverter technology and partnership with solar PV installers 20 Fourth Partner Energy Pvt. Telangana Interested in various products such as: micro-inverters monitoring systems technologies for module cleaning pre-paid metering systems on-site storage solutions for applications such as mobile towers 21 ITC Multiple states Interested in demonstration project for solar PV thermal hybrid system 22 Auroville Tamil Nadu Interested in demonstration project for solar PV thermal hybrid system NDA signed 23 Su-Kam Delhi Interested in hybrid inverter technology 24 Prakti Design Tamil Nadu Interested in co-distribution of Rural Spark solar light solutions 25 Auroville Energy Products Tamil Nadu Interested in co-distribution of Rural Spark solar light solutions 26 Sri Aurobindo Ashram Puducherry Interested in a Solarus demonstration project Table 3 – Indian contacts via Dutch organizations in Table 2 8 – CONCLUSIONS AND RECOMMENDATIONS As the first steps in increasing cooperation between Netherlands and India in the solar PV sector have been initiated and the first concrete collaborations are getting rooted it becomes more evident that some substantial work will have to be done in relationship building in order to build bridges and build long-term and sustainable partnerships. Face-to-face contact with potential business partners and the building of relationships will be essential for Dutch organizations in developing a presence in India. Whereas in the Netherlands it is not entirely necessary to have face-to-face communications as business can be done through telephone communication in India face-to-face communication is preferred. Casual conversation typically precedes discussion concerning business development. New and emerging opportunities require personal contact and face-to face meetings. Besides the necessity for personal contact a certain lead-time is required to identify concrete opportunities for products and for projects. A comparison on products and services with regard to quality and pricing will greatly help in taking this forward. Another way to facilitate the necessary personal contacts in India is to find an Indian partner/agent that can takes care of the local work in India. As the “Make in India” campaign of the Indian Government focuses on boosting local production companies can also consider having their products partially produced in India. This can also contribute to reducing the price of the product but requires the right domestic partner to be found.

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18 A gap in terms of knowledge and understanding of the Indian Solar PV market of many Dutch organizations has been identified. This may be due to the geographical size of Indian the fact that each federal state in India has its own solar PV policies and regulatory frameworks and the big number of domestic and international players in the solar PV market already active in India. Some concrete recommendations that can be given at this stage are: a. Invest in time if you consider to enter the Indian market b. Initiate face-to-face meetings between representatives of Dutch and Indian organizations c. Use the network of the Netherlands Business Support Offices NBSOs in India 4 d. Prepare the pricing of products and services and a comparison with competitive products and services at the Indian market before reaching out to Indian partners and clients e. Look into opportunities for subsidy from the Dutch Government DHI or DEI scheme. More specifically with respect to the demonstration projects that have been initiated: f. Follow-up on the Auroville-Solarus demonstration project by performance monitoring and communication of the project to potential clients and partners g. Invite Indian public and private organisations to visit demonstration projects of Dutch organizations in India h. Initiate and exchange experiences of Dutch solar PV organizations working in India such as Solarus Rural Spark Victron Energy DSM and 4Washing with other Dutch organisations. With this study first steps are made to collaborate in solar PV projects. Though small these steps can be very useful for the future. At the moment of reporting Indian and Dutch organisations are still negotiating on what can be done together so the report provides just the status at the time of writing. Hopefully the connections that were created through this study will become sustainable for the long term and can be a base for further Indo-Dutch partnerships in the field of solar energy. 4 See: http://india.nlembassy.org/doing-business/trade-network-india

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19 ANNEX I – PROGRAM OF THE INTERSOLAR INDIA 2015 Wednesday November 18: Thursday November 19:

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20

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21 Friday November 20:

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22 ANNEX II – COMPARISON BETWEEN INDIAN STATES Column1 Tamil+Nadu Kerala Karnataka Puducherry Odisha Delhi Maharashtra Rajasthan Gujarat SPV+Policy+ for+rooftop Yes Yes Yes Yes Yes YesDraft version Yes Yes Yes SPV+ Policy/Year 2013 2013 2014 2014 2013 2015 2015 2014 2015 Type+of+ policy Netmetering Netmetering Netmetering plusfixed tariffor surplus export Net metering/ gross metering Netmetering Netmetering NetMetering Netmetering Netmetering Special+ features+of+ existing+ policy aEnergy exportcredit cappedat90 ofimported energy bNotall consumer tariffsare eligiblefornet meteringsee note1 cSolarPV grid penetration cappedat30 ofdistribution transformer capacity aAllHT consumerswill havetosign SolarPurchase Obligations SPOand haveto purchase 0.25oftheir consumption with10 increaseevery year.ForLT consumers theabovemay beapplicable fromApril 2015. bAllnew domestic buildingswith floorareafrom 2000sq.ftto 3000sq.ftwill havetoinstall 100litressolar waterheater 500Wsolar PVsystem. cThe capacityrange forsolar rooftop systemisfrom 1kWpto 1MWp. a Distribution Transformer canbeloaded upto70of capacity bThe paymenttobe paidbythe distribution licenseeto SPGby30 daysthrough NEFT. cAlsothe SPGdeveloper canonlyinject avalueequal to70ofthe powerthathe consumes fromthegrid. dThe maximum capacityfor solarrooftop is1MWp. 28 aRangeof SPGsfrom 1kWto 500kWpbut grid penetrationof Distribution Transformers DTshould notbemore than30. 22 aCapacityof PVsystem shouldbe equaltothat ofthe sanctioned load.bThe grid penetrationto DTsshould notexceed 30.Alsothe generationis cappedat90 ofelectricity consumedand creditwillbe givenonlyfor 90.The minimum capacityis 1kWpto 500kWp. 41 aMinimum Capacityof 1kWpandif grid penetrationis above sanctioned loadservice line connection andother chargestobe bornbythe SPG developer. aCumulative capacity utilizationof distribution transformer DTshould notexceed 40ofthe ratedcapacity oftheDT 8 . aSolarPV grid penetration cappedat30 ofdistribution transformer capacity bThe maximum capacityof SPV installation cannotexceed 80of sanctioned load/demand ofthe consumer 5 . aGeneration capacity cappedat50 ofsanctioned loadfor residential. 24 Subsidies+ for+Rooftop+ Solar aRs.20000 perkWfor1 kW residential systemsin additionto 15capital subsidiesby MNRE Electricitytax exempted Subsidy applicable onlyunder TariffLT1A a15 capital subsidiesby MNRE Electricitytax exempted only residential Tariff a15 capital subsidiesby MNRE Electricitytax exempted only residential Tariff a15 capital subsidiesby MNRE Electricitytax exempted only residential Tariff a15 capital subsidiesby MNRE Electricitytax exempted only residential Tariff a15 capital subsidiesby MNRE Electricitytax exempted only residential Tariff a15 capital subsidiesby MNRE Electricitytax exempted only residential Tariff a15 capital subsidiesby MNRE Electricitytax exempted only residential Tariff a15 capital subsidiesby MNRE Electricitytax exempted only residential Tariff Installed+ Rooftop+ SPV+Solar+ Capacity+by+ June+2015+ Mw+ 36 8 25 nodata 14 8 39 21 25

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23 Table 4 – Comparison of states detailed information Column1 Tamil+Nadu Kerala Karnataka Puducherry Odisha Delhi Maharashtra Rajasthan Gujarat +Tariff+ structure+ payable+to+ the+utility++++++++++++++++++++++++ In+Rs./kWh+ sold+HT+ consumers+ HT consumers: Highest1Rs. 11Lowest1 Rs.7.22 32 HT consumers: Lowest1Rs. 2.80Highest1 Rs.7.30 33 . HT consumers: Highest1Rs.9 Lowest1 Rs.1.50 34 HT consumers: Highest1Rs. 9.45Lowest1 Rs.4.75 HT consumers: Highest1Rs. 7.20Lowest1 Rs.1.40 HT consumers: Highest1 Rs.9.50 Lowest1 Rs.2.75 37 HT consumers: Highest1 Rs.12.50 Lowest1 Rs.3.32 38 HT consumers: Highest1Rs. 7.45Lowest1 Rs.5.50 39 HT consumers: Highest1Rs. 4.65Lowest1 Rs.1.80 40 Tariff+ structure+ payable+to+ the+utility++++++++++++++++++ In+Rs./kWh+ sold++++++++++++++++++++++++++++ LT+ consumers+ LT consumers: Lowest1Rs.3 Highest1Rs. 12.10 32 . LT consumers: Lowest1 Rs.1.50 Highest1Rs. 14 33 . LT consumers: Highest1Rs.9 .Lowest1 Rs.5.36 34 LT consumers: Highest1Rs. 5.40. Lowest1Rs. 1.10 35 . LT consumers: Highest1Rs.7 36 Lowest1 Rs.2.50 LT consumers: Highest1 Rs.9.95 Lowest1Rs.4 37 LT consumers: Highest1Rs. 17Lowest1 Rs.0.87 38 LT consumers: Highest1 Rs.7.85. Lowest1Rs. 3.27 39 LT consumers: Highest1Rs. 5.30Lowest1 Rs.1.5 40 Utility+Scale+ Solar++ Installed+ capacity+by+ June+2015+ in+MW+43 164 nodata 104 nodata 71 4 344 1128 953 Solar+ rooftop+ targets+in+ MW+till+ 2022+42 3500 800 2300 100 1000 1100 4700 2300 3200 Tariffs+ range+for+ Utility+Scale+ SPV Rs.7.01/kWh WithoutAD andRs.6.27 WithAD 1a . Averaged Power Purchase CostAPPCis usedfor purchaseof excess energy.The APPCisatthe rateof 3.06/unit Rs.9.56/kWh without subsidyRs. 7.20with 30subsidy 1a along witha15 central subsidy. Rs.8.73 WithoutAD Rs.8.26With AD Averaged Power Purchase CostAPPCis tobeusedfor purchasing surplus power exportedto thegrid.The APPCrateis Rs.3/kWh Averaged Power Purchase CostAPPCis tobeusedfor purchasing surplus power exportedto thegrid.The APPCrateis around Rs.4.7515 /kWh 33 . Averaged Power Purchase CostAPPCis tobeusedfor purchasing surplus power exportedto thegrid.The APPCrateis Rs.3.76/kWh Rs.7.50/kWh withoutAD Rs.6.63/kWh withAD 1a . aRs. 9.63/kWh WithAD bRs. 10.76/kWh WithoutAD 27 . Electrificati on+rate+In+ MU+for+the+ period+AprilU+ Sept+2015+ 11 0.986 0.9913 0.951 0.995 0.992 0.998 0.9966 0.997 0.999 Load+ Shedding 20power cutonheavy users industrial commercial 15 . 8110 hours/day inrural areas. Asof2014 theKerala Stateboard has implemented a301minute powercut overNorth SouthKerala onalternate daystostem overthe powercrisis 18 . Theshortage inKarnataka isresultingin 314hoursof loadshedding inandaround Bengaluru andother places 19 . Thepower cutsrange from30 minutestoa maximumof 4hoursin placesin around Puducherry boulevard 26 . Asof2015 powercuts lastfortwo1 twoanda halfhours. Thisisdueto insufficient monsoon rains accordingto the administratio n 20 . Onaverage NewDelhi experiences powercuts rangingfrom onetotwo hoursevery day.Various reasonsare attributedto it 21 . Suburban areasof Mumbailike Mulundare alreadyfacing powercuts upto3to4 hours/day. Thenumber ishigherat six1seven hoursin otherpartsof thestate 25 . Powercuts rangefrom21 4hoursevery dayinvillages municipal townswhile 2hoursin districts 17 . Powercutsin thecaseof Gujarathas beenminimal andnotmuch information couldbe found. No+of+ Installers+ recognized++ 12 16 8 19 Nodatayet 1Installer 22installers 23 2 15

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24 References for Comparison of States 1 - Ministry of New and Renewable Energy MNRE Accessed October 2015 Source: http://mnre.gov.in/file- manager/UserFiles/State-wise-and-year-wise-target-for-installation-of-40000MWp-GCRT-systems.pdf 1a - Ministry of New and Renewable Energy MNRE Policy and Regulatory framework Accessed October 2015 Source: http://mnre.gov.in/file-manager/UserFiles/Grid-Connected-Solar-Rooftop-policy/Policy-and-Regulatory-Framework-in- Various-States.pdf 2 - The hindu paper Accessed October 2015 Source: http://www.thehindu.com/news/cities/chennai/shadow-over-solar- power-scheme/article7008145.ece 3 - The economic times Accessed October 2015 Source: www.economictimes.indiatimes.com 4 - Handbook for beneficiaries Accessed October 2015 Source:http://anert.gov.in/index.phpoptioncom_contentviewarticleid145:10000-solar-rooftop-power-plants- programme-catid18:curr-re-progItemid52 5 - Rajasthan Electricity Regulatory Commission RERC connectivity Net metering of rooftop systems Accessed October 2015 Source: http://mnre.gov.in/file-manager/UserFiles/Grid-Connected-Solar-Rooftop-policy/RERC-Connectivity-and-Net- Metering-2015.pdf 6 - Indian Institute of Technology IIT Kanpur presentation at the " 7th Capacity Building program for Officers of the regulatory commission" Accessed October 2015Source: http://www.iitk.ac.in/ime/anoops/for15/ppts/Day- 320IITK/Rooftop20PV20-20Mr.20B20D20Sharma.pdf 7 - Rajasthan State solar policy FAQ document Accessed October 2015 Source: http://www.rrecl.com/PDF/Final20FAQ20Booklet.pdf 8 - Maharashtra Electricity Regulatory Commission RERC Accessed October 2015 Source: http://www.mercindia.org.in/pdf/Order20582042/Draft20MERC28Net20metering20for20Rooftop20Solar2 0Systems2920Regulations2015.pdf 9 - Kerala State policy 2013 Accessed October 2015 Source:http://mnre.gov.in/file-manager/UserFiles/state-power- policies/Kerala-Solar-Power-Policy.pdf 10 - Odisha state solar policy 2013 Accessed October 2015 Source: http://mnre.gov.in/file-manager/UserFiles/state- power-policies/Odisha-Solar-Power-Policy.pdf 11 - Central Electricity Authority CEA Power supply position document Accessed October 2015 Source: http://www.cea.nic.in/reports/monthly/powersupply/2015/psp_energy-09.pdf 12 - Solar Photovoltaic Installers SPIN website Government of India Accessed October 2015 Source: http://223.31.33.76/public/spin-grid/public/Agencies_list.html 13 - Green Energy Development Corporation of Odisha Ltd GEDCOL Accessed October 2015 Source: http://gedcol.com/Home/Projects 14 - New Delhi Solar Policy Accessed October 2015 Source: http://delhi.gov.in/wps/wcm/connect/224a890049cda85ca0aae8124fa22605/Delhi_Solar_Policy_Draft_150910.pdfMOD AJPERESlmod-1181892927CACHEID224a890049cda85ca0aae8124fa22605 15 - Business Standard news report Accessed October 2015 Source: http://www.business-standard.com/article/current- affairs/tamil-nadu-announces-20-power-cut-for-industrial-commercial-users-114092401069_1.html 16 - Kerala State Electricity Regulatory Commission KSERC Accessed October 2015 Source: http://www.erckerala.org/userFiles/634177281778750000_JawaharSolarOrder_04-08-10__FINAL_.pdf 17 - Rajasthan Power shortage Accessed October 2015 Source: http://www.indiatvnews.com/news/india/rajasthan-heat- wave-power-cuts-in-rajasthan-discom-41020.html 18 - Kerala power crisis Accessed October 2015 Source: http://www.newindianexpress.com/states/kerala/Power-Cut-to- Go-from-Friday/2014/06/24/article2297021.ece 19 - Karnataka power situation Accessed October 2015 Source: http://www.ndtv.com/bangalore-news/why-bengalurus- power-cuts-are-the-worst-in-25-years-1216347 20 - Odisha power situation Accessed October 2015 Source: http://www.ndtv.com/india-news/power-cuts-likely-to- continue-till-june-2016-odisha-minister-1216881 21 - New Delhi power situation Accessed October 2015 Source: http://indianexpress.com/article/cities/delhi/1000-long- power-cuts-in-june/ 22 - Solar power generation regulations across Uts Accessed October 2015 Source: http://mnre.gov.in/file- manager/UserFiles/Grid-Connected-Solar-Rooftop-policy/Solar-Power-Generation-Regulations-Goa-and-UTs-201420.pdf

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25 23 - Grid connected rooftop solar generation status Accessed October 2015 Source: http://mnre.gov.in/file- manager/UserFiles/Status-of-Grid-Connected-SPV-Rooftop-Projects-Sanctioned-to_States_UTs_SEC_PSUs_OGA.pdf 24 - Gujarat Energy Development Agency GEDA Accessed October 2015 Source: http://geda.gujarat.gov.in/policy_files/jnnsm-g170610.pdf 25 - Maharashtra power situation Accessed October 2015 Source: http://www.livemint.com/Politics/xz0tQD4bYhRgdadSMsrVgL/Shortage-of-5500-MW-to-fuel-power-cuts-in- Maharashtra.html 26 - Puducherry power situation Accessed October 2015 Source: http://www.thehindu.com/news/cities/puducherry/unscheduled-power-cut-spectre-back-to-haunt-puducherry- residents/article6344607.ece 27 - Gujarat Solar Tariff order 2012 Accessed October 2015 Source: http://mnre.gov.in/file-manager/UserFiles/Grid- Connected-Solar-Rooftop-policy/Gujrat-Solar-Tariff-Order-of-2012.pdf 28- Karnataka tariff order 2014 Accessed October 2015 Source: http://mnre.gov.in/file-manager/UserFiles/Grid- Connected-Solar-Rooftop-policy/Karnataka_Tariff_Order-2014_2018.pdf 29 - Kerala State Electricity Regulatory Commission KSERC order Accessed October 2015 Source: http://mnre.gov.in/file- manager/UserFiles/Grid-Connected-Solar-Rooftop-policy/Kerala-ERC_Order_2014.pdf 30 - Delhi Electricity Regulatory Commission DERC Accessed October 2015 Source: http://mnre.gov.in/file- manager/UserFiles/Grid-Connected-Solar-Rooftop-policy/DERC_Renewable_Energy_Net_Metering_Regulations_2014.pdf 31 - Bridge to India website Accessed October 2015 Source: http://www.bridgetoindia.com/blog/derc-releases- implementation-guidelines-for-rooftop-solar/ 32 - Tamil Nadu Retail Supply Tariff Schedule Accessed November 2015 Source: http://tnerc.tn.nic.in/press20release/2014/Tariff202014- 1520For20Hosting20in20Web/TANGEDCO20FY20201415/Public20Notice-Tarif-23-09-2014.pdf 33 - Kerala Retail supply tariff Accessed November 2015 Source: http://www.tced.in/admin/Magazine/5_2319.pdf 34 - Karnataka Electricity supply tariff Accessed November 2015 Source: http://bescom.org/wp- content/uploads/2011/11/TO-BESCOM-2014.205-244.pdf 35 - Puducherry retail supply tariff for Control period FY 2015-16 - FY 2016-18Accessed November 2015Source: http://electricity.puducherry.gov.in/jerc/tariff_order.htm 36 - Odisha Electricity Regulatory Commission OERC tariff report Accessed November 2015 Source:http://www.cescoorissa.com/tariff/DISCOMs_Notification_2015-16.pdf 37 - Delhi Electricity Regulatory Commission DERC Accessed November 2015 Source: http://www.derc.gov.in/ 38 - Maharashtra Electricity Regulatory Commission MERC Accessed November 2015 Source: http://www.mercindia.org.in/pdf/Order20582042/Order-121of2014-26062015.pdf 39 - Rajasthan Electricity Regulatory Commission RERC Accessed November 2015 Source: http://rerc.rajasthan.gov.in/TariffOrders/Order203.pdf 40 - Gujarat Electricity Regulatory Commission GERC Accessed November 2015 Source: http://www.gercin.org/index.php/en/tariff-schedule 41 - Odisha Electricity Regulatory Commission OERC Net metering document Accessed October 2015 Source: http://mnre.gov.in/file-manager/UserFiles/Grid-Connected-Solar-Rooftop-policy/OERC-Net-Metering-Dated- 26.11.2014.pdf 42 - Karnataka Solar policy 2014-21 document Accessed October 2015 Source: http://mnre.gov.in/file- manager/UserFiles/Grid-Connected-Solar-Rooftop-policy/Karnataka_Solar_Policy_2014-2021.pdf 43 - Odisha solar power project Accessed October 2015 Source: http://solar-power.industry-focus.net/orissa-solar- projects/163-acme-bikaner-solar-to-set-up-25-mw-solar-power-plant-in-orissa.html 44 - Rajasthan solar power project Accessed October 2015 Source: http://articles.economictimes.indiatimes.com/2014- 01-09/news/46029983_1_godawari-power-rajasthan-sun-technique-energy-reliance-power 45 - Maharashtra Electricity Regulatory Commission MERC Accessed October 2015 Source: www.ireeed.gov.in/policyfiles/171-35_MH98R01220313.pdf 46 - Delhi Electricity Regulatory Commission DERC Accessed October 2015 Source: http://www.derc.gov.in/Public20Notice/Net20Metering/DERC20Net20Metering20Proposal.pdf 47 - Kerala State Electricity Regulatory Commission KSERC Accessed October 2015 Source: http://www.erckerala.org/regulations/KSERC2028Renewable20Energy2920201520-31.3.15.pdf 48 - Delhi solar power tariff Accessed October 2015 Source: http://indianexpress.com/article/cities/delhi/boost-for-solar- power-same-tariff-for-25-yrs-2000-mw-use/

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26 ANNEX III – SOLAR PV FOR TELECOM TOWERS 1 – Market size and trends The telecommunication industry in India has seen a huge growth in the last decade. It is currently the second largest telecommunication market in the world with over 1 billion subscribers as of May 2015 5 . Private companies and Joint Ventures have started installing telecom towers and leasing them to multiple telecom operators thus bringing down the investment cost for telecom operators and hence the customers. Currently close to 400000 telecom towers are installed in India and with an annual growth rate of 3 it is estimated to grow to 510000 by the year 2020 6 . Figure 4 – Graph showing number of telecom subscriptions in India in May and June 2015 Taking a look at Tamil Nadu the biggest telecom tower installer is Indus Towers Ltd. With 13000 telecom towers Indus Towers Ltd has 52 market share in Tamil Nadu 7 . 2 – Energy requirements A Telecom Tower requires on an average 3.5kWp but it can range from 1kWp to 8.5kWp. Generally each Telecom Tower has its own Diesel Generator DG of 10kVA to 15kVA capacity and a battery bank of 300Ah to 900Ah 8 see Figure 5 for a schematic diagram. Telecom towers are required to work 24 hours a day throughout the year and therefore uninterrupted power is a backbone to maintain the service level uptime obligation of 99.5 9 . On an average throughout India a telecom tower site receives grid power for 13.5 hours per day 10 . Thus for other 10.5 hours per day DG or batteries are used. This leads to high consumption of Diesel fuel resulting in energy expenses accounting for approximately 67 of operating costs. The grid availability in Tamil Nadu is better than most of the other states in India. Tamil Nadu on an average has grid availability of 20.3 hours 5 IBEF:Telecommunications Accessed November 2015 6 American Tower Corp to buy majority stake in Indian telecom tower co Viom - DealStreetAsia Accessed November 2015 7 Indus to Add Telecom Towers to Boost Market Share in Tamil Nadu Accessed November 2015 8 The True Cost of Providing Energy to Telecom Towers in India Accessed November 2015 9 DoT Directive on Green Telecom regarding powering up of Telecom Towers by RET Accessed November 2015 10 Recommendations on Approach towards Green Telecommunications Accessed November 2015 1002 1007 580 584 472 423 0 200 400 600 800 1000 1200 May-15 Jun-15 Total telephone subscribers millions Total Urban Rural May 2015 June 2015

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27 per day for Telecom Towers 11 . Therefore lower diesel costs are incurred. Typically a Telecom Tower of 3-4 kW per requirement consumes about 100 kWh of electricity per day 12 . It is estimated that Telecom Towers in India consume 11 billion kWh of electricity every year. An increase to 17 billion kWh by the year is expected by 2016 resulting in Green House Gas GHG emissions equivalent to 11 million tonnes of CO 2 per year 13 . Figure 5 – Schematic of power supply at telecom tower where PIU: Power Interface Unit SMPS: Switched Mode Power Supply BTS: Base Transceiver Station 3 – Policies and regulatory frameworks In 2012 the Department of Telecommunications DoT Government of India GoI has decided to adopt the following measures: a. 50 towers should run on hybrid power Renewable Energy Technologies RETs + grid in rural and 20 in urban by 2015 while 75 rural and 33 urban towers by 2020. b. All the instruments used should be energy efficient and should be certified “Green Passport GP” after energy and performance assessment. c. All service providers should submit carbon footprint of their network operations in the format prescribed by TRAI bi-annually. d. Base year of calculating carbon footprint is 2011. Carbon footprint should be reduced to 5 by 2012-2013 8 by 2014-2015 12 by 2016-2017 and 17 by 2018-2019. This was based on a recommendation by 14 as recommended by Telecom Regulatory Authority of India TRAI. 4 – Current trends for deployment of renewable energy technologies RET The industry has identified three RET which can be implemented within the Telecom towers see Table 5: 11 India Energy Security Scenarios 2047: User Guide for Telecom Sector Accessed November 2015 12 Is There Real Scope For Solar In Telecom Industry Accessed November 2015 13 Indian Cell Tower Companies Eye Renewable Energy To Cut Costs | CleanTechnica Accessed November 2015 14 Implementation of Green Technologies in Telecom Sector Accessed November 2015

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28 Telecom Tower Company Bio-Fuel kW Fuel-Cells kW Solar PV kW Total kW Bharti Infratel 4 5 1650 1659 GTL 0 0 80 80 Idea Cellular 1 35 590 626 Indus Towers 8 0 650 658 Vodafone Essar 0 0 390 390 National Total 13 40 3360 3413 Table 5 – Penetration of different RETs in Telecom Tower Industry till 2014 in India 15 Towers and Infrastructure Providers Association TAIPA has mentioned that they would like to use a future proof energy efficient technologies and RETs which would help in creating a win-win proposition. A capital investment of estimated INR 66000 crore by 2020 is required 16 . Further it is aimed at reducing carbon emissions through the application of more energy efficient technologies. 5 – Major industries in the market The Telecom Tower Industry in India is different from rest of the world. In India private companies as well as Telecom Operator Joint Ventures JV are in the business of installation of tower unlike only Telecom Operator in the installation of towers. Major companies are as follows: 1. Operator owned JV: a. Indus Towers Ltd. b. Viom Networks Ltd. 2. Operator owned: a. Reliance Telecom Infrastructure Ltd. b. Bharti Infratel c. BSNL Telecom Tower Infrastructure 3. Independent: a. GTL infrastructure Ltd. b. Essar Tower Enterprises c. ATC India Tower Corporation Pvt. Ltd. d. Tower Vision India Pvt. Ltd. : Part of TAIPA Tower and Infrastructure Providers Association Figure 6 – Market share of telecom tower companies 17 15 Applications Integrating Renewable Energy and Energy Efficiency Accessed November 2015 16 Telecom department urges industry to go green - timesofindia-economictimes Accessed November 2015 17 BIL Investor Presentation Accessed November 2015 Indus 29 Bhar Infratel 9 BSNL/MTNL 18 RTIL 13 GTL Infra 9 Viom 11 Others 11 Share of Telecom Towers Indus Bhar Infratel BSNL/MTNL RTIL GTL Infra Viom Others Total no. of towers 396000

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29 6 – Project costing and financials To understand the project cost three different scenarios are considered: 1. Scenario 1: Solar + Grid +Battery 2. Scenario 2: Solar + DG + Grid + small battery for switchover 3. Scenario 3: Solar + DG + Battery These scenarios will help cover different areas/regions where system installation can be done. Scenario 1 can be used in urban areas as grid availability is high 20 hours or more and only solar PV system is installed. Scenario 2 can be installed in areas where grid availability is medium 16 to 20 hours and a solar PV DG hybrid system is installed. At last scenario 3 can be considered for completely off grid system. High grid availability is considered because in Tamil Nadu on an average 20.3 hours of grid is available. To determine the system size it is important to know how much electricity would be consumed by the system. It is estimated that a Telecom Tower consumes 100 kWh per day. Thus it will consume approx. 40MWh per annum. Table 6 shows the system size cost of the system for different scenario IRR payback period and LCOE. Scenario 1 Scenario 2 Scenario 3 Electricity Requirement by other than grid source per annum Approx. 7MWh Approx. 14MWh 40MWh System Size Solar: 4.5kW Battery: 300Ah Solar: 5kW DG: 3.5kW 20 availability Battery: 150Ah Solar: 14kW DG: 6.3kW 34 availability Battery: 600Ah Project Cost INR 540000.00 500000.00 DG set cost is not accounted 1560000.00 Financial Viability Pre-tax IRR- equity 13.8 8.2 5.8 Pre-tax IRR-assets 7.5 3.8 2.0 Simple payback years 13.5 20.2 25.1 Equity payback years 12.5 16.1 18.2 LCOE Rs./kWh 14.59 12.15 14.59 Table 6 – IRR payback period and LCOE for different scenarios all the calculations done are excluding subsidies Typically the levelized cost of a kWh electricity generated by diesel generator is in the range of INR 18-20.

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