ACME

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ACME Presentation To Forum of Indian
Regulators
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ACME Group Overview

• The ACME group was founded in 2003
• ACME Tele Power Limited (ATPL), the flagship
  company of ACME Group, is a leading provider of
  energy management solutions for telecom sector
• Presently has an employee strength of 1500
• Global presence
• 7 Patents Awarded 100 commercialized

Revenue Growth Path (in INR million)
ACMEs products and solutions are innovation
driven
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The ACME Group Diversified Businesses

• Provides technology solutions to the telecom
  industry both in India as well as around the
  world
• Energy management solutions for various
  industrial sectors

• Distributed power generation through various
  state-of-the-art technologies like Micro Solar
  Thermal, Microturbines, fuel cells etc

• Focused on commercializing technologies for
  environmentally-friendly and efficient energy
  generation system

• Provides complete water, waste-water and waste
  management solutions
• Offers both point-of-entry and point-of-discharge
  solutions

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Solar Potential in our Country

• Abundant solar energy of 5,000 trillion kWh/year
• Major regions of India enjoy strong radiation
  almost throughout the year
• A predictable, reliable, perennial source of
  energy and has got potential to meet the total
  energy requirement of the country
• Clean, environment friendly green energy

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Solar Thermal Globally promising technology

• 1200 MW of Solar Thermal capacity already under
  construction
• 13900 MW of Solar Thermal projects announced for
  2014
• Wide array of operational international
  installations
• Solar Energy Generation Systems plant, USA (354
  MW)
• Nevada Solar One, USA (50 MW)
• Andasol 1, Spain (50 MW)
• PS20, Spain (20 MW)
• PS10, Spain (11 MW)
• 3 World bank projects for Solar Thermal approved
  in Egypt, Morocco and Mexico
• eSolar technology While other plants still offer
  high tariffs (e.g., Rs. 21/unit for PS10 in
  Spain), with eSolar technology, tariff is
  approximatelyRs. 14/unit currently

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ACME in Solar Thermal

• ACME was first to introduce the cutting-edge
  modular Solar Thermal technology in India
• Exclusive agreement with leading technology
  provider eSolar of USA
• ACME Solar Thermal
• 2.5 50 MW modules for power generation
• First 10 MW plant is under implementation and
  first module is likely to be ready by March 2010
  in Bikaner
• 50 MW plant to be ready by Dec 2010 in Gujarat
• 150 MW being developed in Rajasthan for Northern
  regional states (Delhi, Haryana, Punjab,
  Rajasthan)
• 100 MW MOU signed with MP Govt.
• 5 MW allocated by Maharashtra Govt under MNRE
  scheme

ACME is building worlds cheapest solar thermal
power plants
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Advantages of Solar Thermal
Parameter Solar Thermal
Energy Security No dependence on imports Predictable perennial power supply
Manufacturing Potential Manufacturing facility for all components exist in India Only incremental investment. Boilers, Mirrors, Turbines, Towers
Raw material No raw material imported, as opposed to other solar technologies
Job Creation Highly labor intensive Creation of huge direct and indirect employment Solar Thermal plants create 2.5 times as many skilled high paying jobs as other conventional power plants
Efficiency Greater than 24 (Higher than any other commercially available Solar technology)
Allied beneficiary industries Steel, Glass, Software, Tools, Construction, Mining, Heavy equipment
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Solar Thermal Equipments Manufacturing Capacity
Component Suppliers Identified Manufacturing capacity
Solar Block Solar Block Solar Block
Mirror Indian and MNC majors 6 months delivery period Any capacity can be made available
Boiler Many local small medium industries 6 months delivery period Capacity can be ramped up as required
Tower Many local small medium industries 3 months delivery period Large production capacity in India
Power Block Power Block Power Block
Turbine Local SMEs, Maxwatt, Turbotech, Triveni, BHEL, Siemens Multiple 2.5 MW to 50 MW units with 6-12 months delivery time Capacity enhancement as required
Cooling Tower Local SMEs, Gammon, Paltech, Paharpur 5 to 50 MW modules with 6-8 months for commissioning Capacity enhancement as required
In 12 months, capacity can be scaled up to few
thousand MW
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ACMEs Capability

• ACME proposes to set up multiple solar power
  projects at different locations as follows
• Utility scale Solar Thermal Power projects of
  100 MW each at different locations
• Solar Photovoltaic technology based power
  projects
• Integrated solar combined cycle system (ISCCS)
  Power project of 210 MW capacity, which will use
  both conventional and non- conventional energy
  sources.
• Micro- Solar technology based power projects
• Off-grid (domestic)
• Off-grid non domestic
• Grid connected
• Distributed generation

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How Solar Thermal Technology works

• A field of sun-tracking heliostats reflects solar
  heat to a thermal receiver mounted on top of a
  tower
• The focused heat boils water within the thermal
  receiver and produces steam
• The plant pipes the steam from each thermal
  receiver and aggregates it at the turbine
• The steam powers a standard turbine and generator
  to produce solar electricity
• The steam then condenses back to water through
  cooling, and the process repeats

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Aerial view of the 5 MW facility
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About Solar Thermal Technology
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Sun rays producing steam from receiver
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Integrated Steam Combined Cycle

• The ISCC plant will generate 210 MW of power for
  about 6 7 hours and when the solar steam stops
  at sundown, the plant will deliver 160 MW
• This will help in meeting the loads during peak
  hours as well as in optimal utilisation of solar
  capacity.

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Photovoltaic Power System

• A photovoltaic (PV) power system converts the
  suns energy directly into electricity. The main
  component of a PV system is a photovoltaic module
  which consists of a number of photovoltaic cells
• Photovoltaic modules and inverter and all the
  ancillary control and management equipment
  together make a photovoltaic power system.
• PV systems vary in size to suit different
  applications (for example houses, commercial and
  industrial buildings or centralized production).

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Micro Solar Thermal

• A parabolic trough is a type of solar thermal
  energy collector. It is constructed as a long
  parabolic mirror (usually coated silver or
  polished aluminum) with a Dewar tube running its
  length at the focal point. Sunlight is reflected
  by the mirror and concentrated on the Dewar tube.
  The trough is aligned on a death star, and
  rotated to track the sun as it moves across the
  sky each day.
• Heat transfer fluid (usually oil) runs through
  the tube to absorb the concentrated sunlight

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Acmes perspective on Regulatory Frame work.
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ACMEs Observations

• Project Cost and Tariff Determination
• Acme has acquired eSolar technology, which is
  modular and scalable. The present project cost is
  Rs 15 cr per MW and corresponding energy tariff
  is comparatively high. The initial high tariff
  needs to be supported and nurtured by feed in
  tariff . This initial support is needed so as the
  technology is developed and all the high cost
  projects equipments are indigenized.
• After achieving scale of say 500 MW the project
  cost is expected to attain parity with
  conventional coal based Thermal projects.
• The subsidy on new projects can be gradually
  reduced and brought to zero.
• CERC/ SERC to determine the project cost and the
  corresponding tariff in the spirit as enshrined
  in The Electricity Act 2003 and the
  objectives/ strategy of Solar Mission document of
  National Action Plan on Climate Change.
• Cl. 86 (e) of Electricity Act 2003, mentions
  one of the functions of State Commission as
• promote cogeneration and generation of
  electricity from renewable sources of energy by
  providing suitable measures for connectivity with
  the grid and sale of electricity..

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ACMEs Observations

• In order to utilize and harness the generous gift
  of Mother Nature i. e. Radiant Solar Energy
  optimally, the provision of Integrated Solar and
  Combined Cycle Power Project (ISCCP), has been
  envisaged. Acme has planned to set up at least
  two such ISCCPP. Honourable commission may
  consider these projects with view to encourage
  these projects.
• Definition of Solar Thermal Projects to be
  brought in line with California Electricity
  Commission.
• CERC to decide the tariff , if beneficiaries are
  more than one state SERC/State Govt to decide
  extent of share by various utilities with in the
  state.
• SERC to decide the tariff , if beneficiary is
  with in a state.
• Solar projects where MNRE is providing subsidy,
  those projects should be eligible for tariff
  determination by CERC.

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ACMEs Observations

• Solar projects to be kept exempted from Custom
  and Excise duties.
• Accelerated depreciation has been introduced by
  some of the SERC s, however the same can only be
  availed by developers having income tax
  liabilities. It is requested to provide
  corresponding incentive in the tariff for the
  developers who cant avail the benefit of
  accelerated depreciation. This will provide level
  field to develop the solar power projects.
• Subsidized interest rate on loan.
• Speed up the process of tariff determination of
  each state and PPA.
• Grid Connectivity
• Transmission of solar energy will not be
  subjected to Open Access charges from Central
  Transmission system in case of inter state
  transmission of power with in the same region.
• Transmission line/ power evacuation system to be
  provided by state governments) or its agency.

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ACMEs Observations

• Capital Cost for Solar Thermal Power Project
• Normative capital cost for Solar Thermal Project
  with STP technology is to be specified as 15
  Cr/MW and above, depending on the technology
  adopted.
• Capital cost for
• 10 MW capacity PS-10 project at Seville, in Spain
  - Euro 35 Million i.e. gt20 Cr/MW.
• 20 MW capacity PS-20 project at Seville, in Spain
  - gt21 Cr/MW.
• Proposal to keep the capital cost of project with
  Solar Thermal technology in India, not less than
  15Cr/MW.
• Capacity utilization factor
• CUF is linked to Direct Insolation Level of the
  area where project is located.
• In best conditions CUF is not likely to exceed
  22, the same to be specified as a normative
  figure for solar thermal power project .

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ACMEs Observations

• Return on Equity
• The pre-tax return to the level of 19 for first
  10 years which gives effective post- tax return
  of 15 revised as per our suggestion. We are
  thankful for the same.
• Capital Cost of Solar PV
• Proposal to keep the Capital cost of project with
  Solar PV in India, not less than 18Cr/MW.
• Capacity utilization factor
• Proposed CUF of 19 for Solar PV is on the higher
  side.
• Reasonable figure of CUF with Solar Insolation
  level of 800-1000 W/m2 should be 16-18.

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Summary

• India has got huge potential for development of
  MW class Solar Thermal power projects.
• Technologies are credible, reliable simple.
• Biggest deterrent is high initial cost due to the
  fact that all critical components of solar block
  are imported.
• Technology needs initial support in the form of
  preferential tariff/feed-in tariff.
• Certain level of installed capacity in order to
  achieve economies of scale, critical components
  being imported can be localized 100.
• Capital cost of Solar Thermal Power Project can
  be brought down by localisation.

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• Thank You