We deliver the most reliable ‘levelised cost of electricity’ numbers to developers

Communication Feature

We deliver the most reliable ‘levelised cost of electricity’ numbers to developers

We deliver the most reliable ‘levelised cost of electricity’ numbers to developers

01 Apr 2012
“We deliver the most reliable ‘levelised cost of electricity’ numbers to developers.” - Prashant Jain, Head-Solar & Hydro, Siemens Ltd

Siemens is geared up to spread its power-packed performance in India. After having executed over 160 MW of EPC solar photovoltaic (PV) projects globally and more than 1,200 MW of equipment supply for solar PV projects, the group recently made its foray into sustainable and innovative EPC solutions for solar PV plants in India. Offering customised EPC solutions for utility-scale solar PV power plant and CSP plants – sun-to-heat, sun-to-steam, and sun-to-energy – these solutions, whose uniqueness lies in the ‘performance ratio guarantee’, are designed to meet profitability, yield and cost expectations of customers. Prashant Jain, Head-Solar & Hydro, Siemens Ltd, elaborates on the benefits and applications of these solutions, leveraged by decades of experience.

Tell us more about your sustainable and innovative EPC solutions for solar PV plants in India.
Siemens has been offering PV solutions in the European market for the past 30 years. Two years ago, the EPC Group was formed to bring additional focus to the PV market. In India, we established the EPC group in FY12. In the PV industry, we provide three types of system integrations or solutions. First is the entire EPC, where we provide solutions right from the inception of a project to electricity generation. In the second type, we provide a balance-of-plant solution, a Siemens contracted module, and offer a performance ratio guarantee for the plant with these solutions. These EPC solutions create investment-grade assets for our customers, and are customised according to each site. The third model is the E-EPC, where we provide the electrical and overall design of the plant, but guarantee only the scope of supply.

What does the performance ratio guarantee entail?
Siemens has detailed methodology and proper agreements with module suppliers for estimating, calculating and demonstrating the performance ratio guarantee at site. Our module qualification process is three times more stringent than the standard. One major aim is to increase profit for a site, and essentially does not mean highest yield or lowest capex. For a plant to have the best profit point for the developer, we design it according to set design performance ratio guidelines and Siemens power plant design guidelines, and then customise it to the particular site including the site layout. We compare this output to the financial model to check if the design meets the developer’s IRR expectations; if not, it is redesigned.

How does this raise the company’s existing position in this segment?
These solutions compliment Siemens’s existing products and solutions like Sinvert inverters, switchgear and substations by offering investment-grade and world-class reliable EPC solutions. Considering our discussions with developers, we have received positive feedback on the technical solution so far, and have found our pricing competitive in the multi-MW utility scale (>10 MW).

How cost-efficient are your solutions?
PV power plants have to deliver at least or better than the promised performance of the plant over a long-term period to provide the developer returns to easily service debts and make a profit. Having said that, we deliver the most reliable ‘levelised cost of electricity’ numbers to developers and are competitive in the multi-MW utility scale PV power plant segment in India, as we have a strong domestic footprint here.

What kind of projects can use your services or solutions?
Siemens currently offers bankable EPC solutions with its Crystalline solution using modules from its global frame agreements with performance ratio guarantee for the plant. This is under the state schemes, as under the National Mission, we currently offer the imported ‘thin film module’ solution. At present, local modules from India are under evaluation; the Siemens testing process takes about six months to a year before we qualify modules for use with our EPC solutions.

(Communication by the management of the company)