Aspiration Energy, Blog

Free Solar Power for 18 years

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Aspiration Energy is the only Solar PV (Electricity) Project Developer in India to offer 7 years BOT (@ Rs 7.00 per KWH) at the end of which you will own the system 100% and get free power for the next 18 years. We can use your factory roof top to execute power plants from 200 KWp to 2 MWp, depending on the shadow free space available. Comparison of cash flows and savings – between PPA option available in the market, with our unique 7 year BOT is explained below: (for a sample 200KWp plant) Solar PV System Workings (200 KWp Plant) Advance Deposit paid by Customer in addition to Income Tax benefit from 80% Accelerated Depreciation. Rs 16,00,000 Estimated annual generation KWH 3,00,000 Cost per KWH-During 7 year PPA (BOT) Rs 7.00 Power Purchase bill paid to AEPL Per year (Rs 7.00 X Generation) Rs 21,00,000 Balance Asset value to be paid by customer at the end of 7 years, to get 100% ownership of the Solar Power Plant. Rs 0.00 Cost per KWH after tenure Rs 0.00 for 18 years Cumulative Savings compared to PPA model* Rs 419,00,000 *Please see cash flow comparison below Customer scope : Factory Roof top Infrastructure,  Periodic cleaning of panels. Cash flow Comparison between PPA model and AEPL’s 7 year BOT model. 200 KWp Solar PV Power Plant  7 Year BOT @ Rs 7.00  PPA Model  PPA rate  with 3% Escalation  Excess Paid / Saving  Advance          16,00,000          (16,00,000)                           1          21,00,000                   16,80,000                     5.60          (4,20,000)                           2          21,00,000                   17,34,000                     5.78          (3,66,000)                           3          21,00,000                   17,88,000                     5.96          (3,12,000)                           4          21,00,000                   18,42,000                     6.14          (2,58,000)                           5          21,00,000                   18,96,000                     6.32          (2,04,000)                           6          21,00,000                   19,50,000                     6.50          (1,50,000)                           7          21,00,000                   20,04,000                     6.68              (96,000)                           8 0                   20,58,000                     6.86          20,58,000                           9 0                   21,12,000                     7.04          21,12,000                        10 0                   21,66,000                     7.22          21,66,000                        11 0                   22,20,000                     7.40          22,20,000                        12 0                   22,74,000                     7.58          22,74,000                        13 0                   23,28,000                     7.76          23,28,000                        14 0                   23,82,000                     7.94          23,82,000                        15 0                   24,36,000                     8.12          24,36,000                        16 0                  24,90,000                     8.30          24,90,000                        17 0                   25,44,000                     8.48          25,44,000                        18 0                   25,98,000                     8.66          25,98,000                        19 0                   26,52,000                     8.84          26,52,000                        20 0                   27,06,000                     9.02          27,06,000                        21 0                   27,60,000                     9.20          27,60,000                        22 0                   28,14,000                     9.38          28,14,000                        23 0                   28,68,000                     9.56          28,68,000                        24 0                   29,22,000                     9.74          29,22,000                        25 0                   29,76,000                     9.92          29,76,000 Total        163,00,000                582,00,000        419,00,000 So before signing a PPA agreement for any Solar Power Project, contact us at deepa@aspirationenergy.com or call us at (044-42185301)

Aspiration Energy, Blog, Solar thermal

Few questions; few answers (2) – About Aspiration Energy

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Continuation of Few question; few answers (1) How financially sustainable is our organisational model? The project cost includes the cost of engineering, erection and commissioning. O&M and AMC charges are billed separately. The Project ROI / Interest costs along with conservative estimates of energy generation are factored in, while calculating the pay-per-unit price quoted to the customer. How scalable are our activities? What is the size of the opportunity in terms of the potential addressable market for our services? Target customers and our figures against external data. All industrial heating applications in the 60-120 Deg Cel are potential target for our solution.  The applications are spread across almost all manufacturing sectors such as Automobile, Engineering, Food, Dairy etc. New technologies in Effluent Treatment-Evaporation (ETP) also operate in the 90-120 Deg Cel range. The KPMG report of 2012, estimates the realistic size of the Indian market for Solar Thermal in Low temperature Industrial heating applications as 20,000 MW (70 Million SQ MTR of thermal collectors to replace 4.8 Million Tons of Oil per year) (Source: Solarthermal World Page 65 Section 7.2.2) We can contribute at least 10,000 MW. At an average of 2 MW per project, this will require 5000+ projects to be executed through 50+ partners across India over 5 years. We can also offer our solution and business model to customers outside India by working through local partners in each country. Impact 20% The scale of impact that our organisation\’s achievements have had, technically, organizationally and socially. For you to understand the significance of this, we have provided tangible, quantitative figures and comparisons.  The obstacles we face and how we try to overcome. Currently we have 2 major industrial customers totaling 1200 KW of capacity and 3 ongoing customers close to 500 KW of capacity. This is excluding the small canteen applications we have done for others. The details are as below:  Installation: Wheels India Limited Chennai Project size & type 630 KWth – Auto Hybrid Solar thermal energy produced 3780 KWh / day Fossil fuel equivalent 383 liters / day Fuel replaced Furnace oil Annual carbon abatement 2,80,800 Kg Application Pre-treatment process Payment Model to AEPL Monthly payment  Installation: Sona Koyo Steering Systems Limited Chennai Project size & type 210 KWth – Auto Hybrid Solar thermal energy produced 1260 KWh / day Fossil fuel equivalent 120 liters / day Fuel replaced Diesel Annual carbon abatement 97,000 Kg Application Pre-treatment process Payment Model to AEPL Monthly Payment The social, environmental and economical impact of our achievement due to the innovation in technology and business model will be huge once there is wide spread adoption of this by the industry for <120 Deg Cel applications. We have so far identified 120 MW of applications. Seriously interested customers are 25-30 MW. But the actual installed base is only 1.2 MW. This is because the voluntary adoption and decision making process in the industry is very slow. Worldwide and in India, the importance given to Solar PV is not given to Solar Industrial Heating. It is 20,000 MW opportunity in India alone, that can be achieved without any Government Subsidy. When the cost of solar thermal energy (after factoring all risks and commercial finance cost) in pay per unit ESCO model without subsidy is between Rs 4.5 to 6.0 per KWH, continuing to burn 4.8 Billion Tons of Oil per year for such applications is a criminal waste. IEA task 49, GIZ So Pro, WWF are some pioneers that have identified this and hence involve us in their activities, recognize and support us currently. (To be continued)

Aspiration Energy, Blog

Comprehensive tariff order on solar power – TNERC

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Comprehensive tariff order on solar power – TNERC This is good in more than one way for the solar developers. How will Tangedco fund it without massive tariff rationalization is the usual question that lingers in my mind. If not funded well, the payments will stutter and hence development may not happen. I am not seeing escalation specified clearly or may be I am missing something. As always, the reverse – higher the volume or capacity better pricing offer, unique to India and some developing countries is intriguing. Conventional wisdom says otherwise. Main comment is on the opposite view – Tangedco is ready to procure at 6.48. Alright. At generation end! Alright! So, tangedco absorbs transmission losses here. So, why can\’t we waive transmission losses for solar developers or make it concessional – some direct PPAs with end customers with group captive will immediately happen if that is done without much loss to the Government compared to this. Either way transmission loss is absorbed by tangedco, but higher tariff will be paid by the end user. Better, right? ~Bhoo

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