Unlocking the Potential of Floating Solar Photovoltaics in India VOLUME 1: MAIN REPORT OCTOBER 2023 Disclaimer The study focuses on Floating Solar Photovoltaics (FSPV) based power plants on inland waterbodies and details of applicable standards are included in the Volume 2: Guidance Document. The study reflects the view of the World Bank and does not necessarily reflect the view of the Government of India (GoI) and the findings of the study are not binding on the GoI. FOREWORD India by Country Director, india Ramping up renewable energy is an integral part of India’s plans to reduce greenhouse gas emissions to meet its Nationally Determined Contributions (NDC) under the Paris Agreement. In this context, India is taking rapid steps to incorporate abundantly available and affordable renewable resources into its energy mix. Yet while India’s renewable energy resources are widely available, they often cannot be fully utilized due to a variety of factors, such as the paucity of large tracts of suitable land, or the high opportunity cost of land, among others. This report builds a compelling case for India to look beyond land and institute an ecosystem that supports the installation and operationalization of floating solar photovoltaics (FSPV) power plants. Since these plants are installed on the underutilized surfaces of large water bodies, no land needs to be diverted from other uses. The installation of FSPVs also spurs job creation and catalyzes the development of a domestic value chain as some of the components, such as floaters, need to be manufactured close to installation sites. They also provide a range of other benefits as they generate relatively more power than ground-mounted solar plants (due to the cooling effect of water) and better utilize shared infrastructure such as transmission systems, wherever available. India has an estimated potential of about 300 gigawatts of FSPV but less than 350 megawatts has been realized to date. The report analyses the constraints leading to the moderate pace of FSPV installation in the country and draws from global experience to suggest measures that can unlock the FSPV potential in India and other South Asian countries. The report also provides insights on the technical standards to be adopted in the use of floating solar technology. I hope this study contributes towards deepening the understanding of policymakers and developers and facilitates the deployment of floating solar power plants, contributing to the achievement of India’s NDC objectives, promoting energy independence and creating jobs for the people. Auguste Tano Kouame Country Director, India The World Bank FOREWORD FOREWORD by by Country COuntRy Director, DiRECtOR, India•• inDia iii Acknowledgements This report is an analytical study of “Unlocking the Potential of Floating Solar Photovoltaics in India” by a World Bank team led by Surbhi Goyal (Senior Energy Specialist) and comprised of Satyaki Bhattacharya (Energy Consultant) and Vivek Jha (Energy Consultant) with logistical support provided by Neetu Sharda (Program Associate). The team acknowledges the valuable insights and comments of peer reviewers from the World Bank: Jari Vayrynen (Senior Energy Specialist) and Zuzana Dobrotkova (Senior Energy Specialist), and from International Finance Corporation: Iban Vendrell Armengol (Senior Industry Specialist). Their inputs and advice have enriched this report. The team is also grateful to Ministry of Power and Ministry of New and Renewable Energy for their invaluable comments on the report. The World Bank team greatly values the insights provided by Cecile Fruman (Director, South Asia Regional Integrity and Engagement). The team appreciates the strategic guidance, advice and support provided by Demetrios Papathanasiou (Global Director Energy & Extractives) and Simon J. Stolp (Practice Manager-South Asia Energy and Extractives). A consortium of DNV GL and Ernst & Young undertook required assessments and market studies on Floating Solar projects in India. The DNV team comprised of Alok Kumar, Silpa Babu, Jayachandran Kasi, Gijo George, Aseem Dhingra, Alex Argyros, Modini Yantrapati and Balasubramoniam Sivasubramaniam. The Ernst & Young team comprised of Ashish Kulkarni, Shreyas Gaur, KJC Vinod Kumar, Malay Nigam, Vishal Srivastava and Susmit Datta. We wish to acknowledge the financial and technical support provided by South Asia Water Initiative (SAWI)* and the insights from Janet Minatelli (Senior Operations Officer), Halla Maher Qadummi (Senior Water Economist) and Sarwat Batool (Senior Executive Assistant). The report also benefitted from the inputs provided by the External Affairs and Communications team led by Sona Thakur (Senior External Affairs Officer), Vinita Ranade (Consultant) and Nitika Man Singh Mehta (Consultant). The South Asia Water Initiative (SAWI) was a multi-donor Trust Fund supported by the UK, Australia and Norway and managed by the World * Bank. SAWI supported a rich portfolio of activities designed to increase regional cooperation in the management of the major Himalayan river systems in South Asia to deliver sustainable, fair and inclusive development and climate resilience. It did this through four complementary outcome areas: strengthening awareness and knowledge on regional water issues; enhancing technical and policy capacity across the region; dialogue and participatory decision processes to build trust and confidence; and scoping and informing investment designs. Its work, structured across three river basins (Indus, Ganges and Brahmaputra) and the Sundarbans Landscape, spanned seven countries: Afghanistan, Bangladesh, Bhutan, China, India, Nepal and Pakistan. iv • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Table of Contents Abbreviationsix Executive Summary xiii 1. Introduction 1 2. Mapping of the Value Chain and Identification of Barriers 7 2.1. Value Chain Mapping 9 2.2. Value Chain Assessment 15 2.3. Recommendations 38 3. Benchmarking the FSPV Ecosystem in India Against International Practices 47 3.1. Approach & Methodology 51 3.2. Benchmarking 52 3.3. Key Observations from Other Countries 69 3.4. Key Takeaways, Observations from Global Practices and Associated Risks of FSPV 70 3.5. Associated Risks and Mitigation Strategies for India 77 4. Review of Technical Standards and Tenders 81 4.1. Manufacturing 84 4.2. Equipment and Technical Specifications 86 4.3. Design 87 4.4. Testing 88 4.5. Meteorological Measurements 89 4.6. Material Storage at Site 90 4.7. Other Requirements 90 5. Regional Co-operation and Status of FSPV in South Asian Countries 91 5.1. Countries 93 5.2. Lessons Learned 100 5.3. Deployment Model 101 5.4. Knowledge Transfer 101 Table of Contents • v Appendix Appendix A: Details of Stakeholders 107 Appendix B: Methodology for Shortlisting of the Countries for Benchmarking Study 116 Appendix C: Floating Solar Plants in Japan, Netherlands and Vietnam 119 Appendix D: Floating Solar Plants in India 120 Appendix E: List of Policies, Permits and Approvals 122 List of Figures Figure 1.1: Global installed capacity of floating solar 3 Figure 1.2: Country-wise FSPV installed capacities 4 Figure 2.1: Value chain of FSPV projects 9 Figure 2.2: Key stakeholders in the value chain 14 Figure 2.3: Market readiness of value chain – assessment elements 15 Figure 2.4: Result of assessment 38 Figure 3.1: Mechanism of power procurement by electricity retailers in Japan 53 Figure 3.2: FiT mechanism in Japan 54 Figure 3.3: Framework for RE project auctions in Japan 55 Figure 3.4: Green bond financed FSPV plant in Japan 56 Figure 3.5: Kyocera’s 13.7 MW FSPV plant on a dam reservoir 57 Figure 3.6: FSPV plant located on an irrigation pond in Japan 58 Figure 3.7: Sustainable bank financed FSPV project in Netherlands 63 Figure 3.8: Partnership between a developer and a research institute 64 Figure 3.9: Evolution of FiT program in Vietnam 66 Figure 3.10: IFI (ADB) financed FSPV plant in Vietnam 67  SPV project involving collaboration between private organisations and Figure 3.11: F government in Vietnam 68 Figure 3.12: Trend of FiT rates in Japan 73 Figure 4.1: FSPV System Components 83 Figure 4.2: Points of attention in an FSPV system 84 List of Tables Table 1.1: Scenarios for Upscaling of FSPV 5 Table 2.1: List of major equipment applicable for the different value chain phases  9 Table 2.2: Services applicable for the different value chain phases 11 Table 2.3: Skill sets applicable for the different value chain phases 12 Table 2.4: Stakeholders directly involved in the FSPV value chain 14 Table 2.5: Stakeholders from relevant parallel sectors 15 Table 2.6: Market readiness of value chain 16 Table 2.7: Definition of risk parameters 18 Table 2.8: Annual manufacturing capacity (2023) of floats in India 24 vi • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Table 2.9: Impact of Barriers on the Risk Parameters 29 Table 2.10: Summary of recommendations  39 Table 2.11: Fixed assumptions for LCOE calculations 44 Table 2.12: Variable assumptions for LCOE calculations 45 Table 3.1: Summary of Business Models in Initial Projects 50 Table 3.2: FiT per kWh for solar projects in Japan  55 Table 3.3: Component manufacturers or suppliers in Japan 59 Table 3.4: Component manufacturers or suppliers in Vietnam 68 Table 3.5: FiT rates in Taiwan for solar systems 70 Table 3.6: Summary of observations in key areas 71 Table 3.7: Targets for RE in the three shortlisted countries 71 Table 3.8: Key observations on business models 76 Table 3.9: Risks and mitigation strategies for India 78 Table 4.1: Limitations of existing standards and technical requirements of tenders 85 Table 4.2: Reference standards in tenders for major equipment in FSPV plant 85 Table 4.3: Data available from tender and data to be collected by bidder 87 Table 5.1: Total electricity installed capacity in Sri Lanka as of 2021 93 Table 5.2: Total electricity installed capacity in Bangladesh as of Jan 2023 95 Table 5.3: Total electricity installed capacity in Pakistan as of June 2022 96 Table 5.4: Key drivers for floating solar in South Asian countries 100 Table of Contents • vii Abbreviations AC Alternating Current ADB Asian Development Bank Asia EDGE Asia Enhancing Development and Growth through Energy ASTM ASTM International BHEL Bharat Heavy Electricals Limited BIS Bureau of Indian Standards BoS Balance of System CAPEX Capital Expenditure CEA Central Electricity Authority CEB Ceylon Electricity Board CEIG Chief Electrical Inspector to Government CERC Central Electricity Regulatory Commission COD Commercial Operation Date/Chemical Oxygen Demand CPPIB Canada Pension Plan Investment Board CTU Central Transmission Utility CUF Capacity Utilization Factor CWC Central Water Commission DC Direct Current DHD Da Mi Hydropower Joint Stock Company DISCOMs Distribution Companies DNV Det Norske Veritas DPPA Direct Power Purchase Agreement DVC Damodar Valley Corporation EGAT Electricity Generating Authority of Thailand EPC Engineering, procurement, and construction E&S Environment and Social ESCAP Economic and Social Commission for Asia and the Pacific ESIA Environmental and Social Impact Assessment ESMF Environment and Social Management Framework ESS Environmental and Social Standards EVN Vietnam Electricity FAT Factory Acceptance Test FI Financial Intermediaries Abbreviations • ix FiP Feed in Premium FiT Feed in Tariff FoS Factor of Safety FSPV Floating Solar Photovoltaics FY Financial Year GDP Gross Domestic Product GHG Greenhouse Gases GIS Geographic Information System GoI Government of India GPS Global Positioning System GVMC Greater Visakhapatnam Municipal Corporation GW Giga Watt HDPE High Density Polyethylene HPP Hydropower plants HSE Health, Safety and Environment IBA Important Bird Areas ICMBA Important Coastal and Marine Biodiversity Areas IEC International Electrotechnical Commission IFI International Financial Institution IIT Indian Institute of Technology IP Ingress Protection IPP Independent Power Producer IREDA Indian Renewable Energy Development Agency Limited IRENA International Renewable Energy Agency ISA International Solar Alliance IUCN International Union for Conservation of Nature IVN Institute for Nature Education and Sustainability JRI Japan Research Institute KSEB Kerala State Electricity Board LCOE Levelized cost of energy LNG Liquefied Natural Gas METI Ministry of Economy, Trade and Industry MNRE Ministry of New and Renewable Energy MoEFCC Ministry of Environment, Forest & Climate Change MOIT Ministry of Industry and Trade MoP Ministry of Power MoU Memorandum of Understanding MPWRD Madhya Pradesh Water Resources Department NDA Non-disclosure agreement NETRA NTPC Energy Technology Research Alliance NGT National Green Tribunal NHPC National Hydro Power Corporation x • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 NISE National Institute of Solar Energy NREL National Renewable Energy Laboratory NSM National Solar Mission O&M Operation & Maintenance OMPL ONGC Mangalore Petrochemicals Limited ONGC Oil and Natural Gas Corporation OPEX Operating Expense PGCIL Power Grid Corporation of India Limited pH power of Hydrogen PPA Power Purchase Agreement PPE Personal Protective Equipment PMC Project Management Consultancy PSA Power Sale Agreement PV Photovoltaic QA/QC Quality Assurance/Quality Control QAP Quality Assurance Plan R&D Research & Development RE Renewable Energy RESCO Renewable Energy Service Company RGCCPP Rajiv Gandhi Combined Cycle Power Plant RoW Right of Way RUMSL Rewa Ultra Mega Solar Limited SAARC South Asian Association for Regional Cooperation SAREH South Asia Regional Energy Hub SBI State Bank of India SCADA Supervisory Control and Data Acquisition SCG Siam Cement Group SDE++ Stimulation of Sustainable Energy Production and Climate Transition SEAC Solar Energy Application Centre SEB State Electricity Board SECI Solar Energy Corporation of India Limited SERC State Electricity Regulatory Commission SOP Standard Operating Procedure STU State Transmission Utility TERI The Energy and Resources Institute TPP Thermal Power Plant TW Tera Watt USAID United States Agency for International Development UV Ultraviolet VGF Viability Gap Funding WAPDA Water & Power Development Authority WB/WBG World Bank/World Bank Group Abbreviations • xi EXECUTIVE SUMMARY EXECUTIVE SUMMARY Developing countries, in order to avoid the make the most compelling case for developing worst consequences of a changing climate are countries towards instituting an ecosystem that identifying, assessing, and deploying renewable supports the installation and operationalization energy solutions at scale that can facilitate of floating solar photovoltaic (PV) plants (FSPV). in fulfilling their climate and development An FSPV, apart from avoiding land-energy objectives. This is transformative for countries conflicts and providing fillip to development that are dependent on costly energy imports of a domestic value chain can also provide and are exposed to both price volatility and a multitude of benefits such as (a) lowering energy security risk if the fuel supply is land acquisition and site preparation costs; partially or fully disrupted1. Within this frame (b) gaining potential system efficiency and of reference, the developing economies are production due to temperature-regulating effect incorporating available, reliable and affordable of water; (c) improving solar PV performance resources to power their economic activities and due to reduced shading effects; (d) increasing meet their national development objectives2. panel density for a given area; (e) power system Although renewable energy resources are widely benefits and reduction of costs when co-located available in many developing countries, they with power plants; (f) reducing costs of often cannot be fully developed and utilized waterbody maintenance due to decreased algae due to a variety of factors that include, amongst growth; (g) potentially reduced rates of water others, availability of suitable land parcels evaporation and thereby increasing availability (large tracts with little or no undulations) for of water for other uses such as irrigation; and establishing utility scale solar plants which (h) converting potentially underused space into have large spatial footprints, alternate uses of areas that allow for revenue-generating use available land that may lead to unwarranted (Booth, Aznar and Lee 2019). land-energy conflicts, or, absence of technical know-how and value chains. An FSPV, installed over an underutilized water body, in addition to providing additionality These impediments to establishing large scale in energy generation3 (Liu, et al. 2018) renewable energy projects, though significant, also overcomes some of the limitations of 1 These fuel supply disruptions could be caused by regional conflicts, geopolitical tensions or the financial situation of local utilities – all of which undermine economic growth and development objectives. 2 For example, India’s envision to achieve net zero by 2070. The net zero commitment is buttressed by enterprising but ambitious near-term targets such as 500 GW of renewables capacity, 50 percent of requirements to be met with renewables, one billion tonne reduction in cumulative emissions and 45 percent lower emissions intensity of gross domestic product (GDP) by 2030. 3. PV modules, by virtue of being in close proximity with water stay relatively cooler due to the effect of evaporative cooling. Based on the temperature coefficient of the specific PV module used, this can translate into energy gains vis-à-vis a conventional ground mounted or rooftop solar PV power plant. The gains due to evaporative cooling can however be offset by the lower tilt angle of a FSPV. Hence, a combination of factors – [a] evaporative cooling; and [b] inclination angle of solar PV module determines the net benefit. EXECUTIVE SUMMARY • xv conventional ground mounted solar PV power • Cost and design optimization; plants4 (Rosa-Clot and Tina 2018). FSPV • Standardization; technology, based on learnings from installed projects and supported by a combination of • Comprehensive data bank ensuring standardization, innovation, and reduction in availability of requisite technical and costs, is rapidly approaching maturity. non-technical information; • Continued focus on research and The summary of the three volumes (Volume 1: development; and Main Report, Volume 2: Guidance Document, and Volume 3: Green Jobs) of the report is • Training/re-training of workforce. presented below. Based on the analysis of these barriers and their impacts on various risk parameters, several Mapping of Value Chain and mitigation measures are recommended: Identification of Barriers • Set FSPV targets, facilitate roadmap studies, resource characterization and A comprehensive assessment of the value chain prioritization for FSPV; was undertaken to broaden the understanding of roles, responsibilities and preparedness of • Create a plug-and-play model for large- the involved stakeholders. This was based scale projects under Solar Park Scheme on desk review and consultative meetings. of the Government of India (GoI) with a During the mapping, an emphasis had minimum 1-year tender-calendar5; been laid on stakeholders’ engagement and • Upscale manufacturing of floaters, solar collection of important data and information panels, and balance of plant; thereby facilitating an analysis of the barriers • Build skills and capacity with a focus on to implementation and help design the path gender and diversity inclusion; forward. The FSPV segment has a multitude of stakeholders who influence business • Develop standards and guidelines, models, access to capital, energy off-take, certification of components, and testing and technology maturity. When mapping infrastructure; stakeholders, the role of parallel industries • Research & Development (R&D), single including prospective players from sectors like & reliable source of information & its automobile, plastics, maritime, oil and gas dissemination through regular workshops has been highlighted as such category could and other outreach programs such as potentially have a lower entry cost into the newspapers; FSPV manufacturing arena. • Facilitate development of different In summary, the following drivers were identified business models (for example, the to address gaps and increase adoption rate: Renewable Energy Service Company [RESCO] model6) for FSPV projects; and, • Visibility of scale of deployment for the short and medium terms; • Create a separate credit line for FSPV, similar to the one created for rooftop • Prioritisation of less complex waterbodies solar. for building scale and experience; 4 The benefits include reduced land usage, less shading, less soiling due to dust, reduction of evaporation loss and large potential. 5 MNRE has granted approval to at least six floating solar parks with a cumulative capacity of 1,805 MW. 6 RESCO is a company that provides energy to the consumers from renewable energy resources. In this model, offtaker utilizes the services of a developer who owns and operates the project, and the off taker pays only for the electricity generated. xvi • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Benchmarking the FSPV • In the short term, components can be imported but, over time, it is important to Ecosystem in India Against develop manufacturing capability within International Practices the country. The benchmarking covered three countries - • Government support is required to create Japan, Netherlands, and Vietnam, post analysis standards that are robust but also flexible of all countries active in the domain. The three enough to allow for innovative solutions. selected countries have a good solar potential • While private players are expected to but have challenges with respect to making set up the projects, the government can appropriate land available for large scale solar collaborate by providing incentives. projects. This emerged as common driver for floating solar in the shortlisted countries. The countries, post shortlisting, have been Review of Technical Standards analyzed from the aspects of policy and regulatory landscapes, technical capabilities, and Tenders make versus buy strategy of components, FSPV plants worldwide have similar technical and research activities. Further, select global challenges including the absence of specific practices related to incentives offered, business design codes or guidelines to determine models adopted, innovation in components design loads, factor of safety, complex and manufactured, and R&D activities have been computationally intensive structural system discussed for a few other prominent countries simulations, and the lack of a unified approach in FSPV as well. Key learnings from the study for solar PV and float testing. For sustainable for India include: growth, it is important that the technical • Although the existence of mandatory standards remain flexible to encourage targets for floating solar generation innovation, while ensuring quality and has provided a major push in some reliability. Considering the nascency of the FSPV other countries, technology agnostic technology, the following approach was adopted targets would work better in India’s for the assessment with specific focus on inland developing market, particularly for and nearshore waterbodies: emerging technologies including floating • Review and evaluate the gaps in the solar. Innovation and scale-up of such relevant technical standards for design, technologies is best left to open market material, installation, operation and forces. maintenance of various specialised • Successful pilots create confidence equipment while adopting it for floating among players and can spur investments solar applications. in scalable FSPV plants. Floating solar • Formulate a Guidance Document (refer to projects could be promoted through Volume 2: Guidance Document) based government agencies such as under Solar on the above review, current knowledge of Park Scheme. the FSPV system and the standardization • The government should focus on creating efforts already undertaken. a conducive environment while allowing • Review the technical requirements market forces to run competitive price included in some of the tenders issued in discovery. India and provide recommendations for improvement/optimization. EXECUTIVE SUMMARY • xvii The Volume 2: Guidance Document (as referred Development, Manufacturing & Procurement, above) provides a review of the technology, Construction, Operations & Maintenance, and deliberations for technology selection for Decommissioning was conducted (refer to the FSPV plants, challenges/issues which may Volume 3: Green Jobs). Further, an attempt has arise during design, installation and operation been made to identify the emerging skills in & maintenance (O&M) of FSPV equipment, the solar landscape based on an understanding mitigation to address the challenges and, finally, of the current scenario and a study of leading a review of the technical standards (and gaps practices. in these standards) for FSPV applications. This guidance document is intended to make the While there is large employment potential for reader acquainted with the broad requirements FSPV in India, a significant proportion of the of components deployed in a FSPV system and Indian workforce would need to be trained is not envisioned to be a detailed document with the necessary skills. Hence, building in itself. Further, Det Norske Veritas’ (DNV) skills to bridge this gap is of paramount Recommended Practice DNV-RP-0584 importance and must be addressed. There (Design, development and operation of FSPV is considerable overlap with the solar sector projects) can be referred to for more information in terms of skill requirements. However, on requirements, recommendations and there is a need to build expertise in the fields guidelines for design, development, operation such as geology, geophysics, oceanography, and decommissioning of FSPV systems. The hydrography engineering, marine biology, recommended practice focuses on the lifecycle environmental monitoring, and marine of FSPV systems and has been developed based architecture. FSPV requires an advanced on the recognized and agreed best practices level of specialization in areas such as and relevant requirements from existing design, construction, O&M of under and standards, codes and guidelines. The World over water civil structures, electrical and Bank’s publication Where Sun Meets Water: mechanical works. A high level of knowledge Floating Solar Handbook for Practitioners is and proficiency in offshore first aid, fire- also a good reference for practical guidelines fighting and prevention and personal survival on FSPV projects, evolved from lessons learned techniques have emerged as critical skills from early projects. across levels. Key challenges pertaining to availability of the Green Jobs potential across FSPV right skills are: value chain • Limited government impetus on building skills for FSPV; While India has achieved good progress in the field of solar technology, building its floating • Limited upskilling and re-training solar capacity in the years to come will require opportunities for existing manpower; and personnel with the capabilities and skills to • Lack of specialized course, curriculum drive success. and institutions for knowledge building. A detailed analysis of the roles, skills and Some of these challenges and a mitigation plan experience required across the FSPV value to overcome them have been discussed in detail chain, covering Feasibility, Design and in the Volume 3: Green Jobs. xviii • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Regional Co-Operation and Status India can facilitate regional knowledge transfer through: of FSPV in South Asian Countries Many South Asian countries are characterized 1. Regional forums (including but not limited to) by similar key features such as high population, • International Solar Alliance (ISA) high incidence of poverty, low per capita • South Asia Regional Energy Hub (SAREH) electricity consumption, and high dependence under the United States Agency for on imported crude oil and petroleum products. International Development (USAID) While each country faces a unique set of challenges, regional co-operation will help • International Renewable Energy Agency to accelerate the energy transition through (IRENA): Investment forums in South Asia knowledge sharing and integrated market • South Asian Association for Regional approach. As other countries in South Asia Cooperation (SAARC) Expert Group on are relatively at an earlier stage than India for Renewable Energy FSPV development, India can play a bigger role • United Nations; Economic and Social in the whole value chain of floating solar for Commission for Asia and the Pacific these countries, drawing on its early learnings (ESCAP) and mitigation strategies for challenges. The summary of recommendations from 2. Bilateral relations this assessment would apply to South Asian 3. Joint conferences and initiatives countries, with different degrees of importance. EXECUTIVE SUMMARY • xix 1. Introduction 1 Introduction The world’s waterbodies have great potential Realising the huge potential of FSPV, several for power generation. It is estimated that man- countries such as China, India, Japan, Vietnam, made inland waters alone have the potential to Republic of Korea, Netherlands, Taiwan, and support up to 4 Tera Watt (TW) of new power the United Kingdom have been developing such capacity globally7. Furthermore, a study8 by the projects. As of September 2020, the global US Department of Energy’s National Renewable FSPV installed capacity was around 2.1 giga Energy Laboratory (NREL) states that deploying watt (GW)9. floating solar plants on existing hydropower reservoirs around the world would meet around The country-wise FSPV installed capacities 50 percent of total electricity demand. of the world are shown in Figure 1.2. Asia is Figure 1.1: Global installed capacity of floating solar 800 2,500 706 700 2,087 598 2,000 Cumulative installed capacity (MW) 600 1,909 Annual installed capacity (MW) 500 436 1,500 1,311 400 1,000 300 178 200 605 500 99 100 59 3 5 170 70 0 3 11 0 2013 2014 2015 2016 2017 2018 2019 2020* Annual installed capacity (MW) Cumulative installed capacity (MW) *Until September 2020 Source: World Bank analysis based on market research 7 Hopson, C. (2020, October 15). Floating solar going global with 10GW more by 2025: Fitch | Recharge | Latest Renewable Energy News. https://www.rechargenews.com/transition/floating-solar-going-global-with-10gw-more-by-2025-fitch/2-1-894336 8 Lee, N. (2020, September 29). Untapped Potential Exists for Blending Hydropower, Floating PV. https://www.nrel.gov/news/ press/2020/untapped-potential-exists-for-blending-hydropower-floating-pv.html 9 SolarPlaza. (2021, February). Top 50 Operational Floating Solar Projects 2021. Introduction • 3 Figure 1.2: Country-wise FSPV installed capacities10 China 960 MW South Korea 80 MW Netherlands 52 MW UK 12 MW Japan USA 210 MW 1.46 MW Talwan 26 MW Vietnam India 117 MW 344.8 MW Brazil Thailand 1.55 MW 1 MW Source: World Bank analysis based on market research expected to lead the future growth, mostly ready to support such expansion and growth. driven by China, India, Republic of Korea, Regarding major FSPV projects in India, NTPC Taiwan, Thailand, and Vietnam. China, the developed a 100 kilowatt-peak (kWp) FSPV largest market for FSPV, deploys systems plant in 2017, at their Rajiv Gandhi Combined with Feed in Tariff (FiT) or without subsidy Cycle Power Plant (RGCCPP) in Kayamkulam, support. Korea selected a preferred bidder to Kerala, which has now been expanded to implement the world’s largest FSPV installation 92 megawatt (MW). NTPC Energy Technology of 2.1 GW in the tidal flats of the southwest Research Alliance (NETRA), the R&D arm coast, in addition to an estimated onshore of NTPC, developed the floating platform for FSPV market potential of around 9.7 GW. the pilot 100 kWp plant, while the latter was Taiwan and Vietnam have been following a FiT installed and commissioned by Tata Power. system for FSPV systems from 2017 and 2020, NTPC Limited has also developed a 25 MW respectively. Thailand has announced plans unit at Simhadri power plant, a 20 MW unit to build 2.7 GW by 2037 (total of 16 FSPV at Auraiya, Uttar Pradesh and a 100 MW systems on dams). at Ramagundam, Telengana. A number of FSPV tenders have been floated by various Some studies11 have indicated the potential for agencies, including a 600 MW capacity plant in about 280-300 GW of floating solar in India, Omkareshwar dam in Madhya Pradesh by Rewa considering only grid connected projects on Ultra Mega Solar Limited (RUMSL), of which still water. Given the potential and benefits, the first phase of 280 MW is currently under India could mainstream floating solar and construction. ramp-up its annual installation in the range of that witnessed for ground mounted solar. This The scenarios in Table 1.1 are proposed will be possible only when the value chain is as part of this study for upscaling and 10 The list of FSPV plants in Japan, Netherlands & Vietnam and in India are listed in Appendix C and Appendix D, respectively. 11 Acharya, M. & Devraj, S. (2019). Floating Solar Photovoltaic (FSPV): A Third Pillar to Solar PV Sector? | TERI Discussion Paper: Output of the ETC India Project | New Delhi: The Energy and Resources Institute (TERI). 4 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Table 1.1: Scenarios for Upscaling of FSPV Short term (3 years) Medium term (7 years) Long term (10 years) Institutionalize Mainstream (Inland/nearshore Expand (Inland/nearshore (Inland/nearshore waterbodies) waterbodies) waterbodies and Offshore) • Policy support • Economies of scale • Next round of growth fuelled by • Standardization • Product & service optimization innovation • Deployment strategies • Capacity enhancement to 6-8 GW • Floating solar to go offshore • Skilling of annual installations • Integration with offshore wind • Build local capacity for 2-3 GW • Part of larger picture (support to annual installations green hydrogen) mainstreaming FSPV in India. The short- and carried out in Section 2.2.1, it is anticipated medium-term targets can have specific focus that the value chain needs to be upscaled by on inland and nearshore waterbodies, while more than five times to achieve 2-3 GW of the expansion phase in the long term could annual installations in the next three years include offshore installations. Further, based and more than 10 times to achieve 6-8 GW of on the analysis of current market readiness annual installations. Introduction • 5 2. Mapping of The Value Chain and Identification of Barriers 2 Mapping of The Value Chain and Identification of Barriers 2.1. Value Chain Mapping The value chain of FSPV projects include the primary activities depicted in Figure 2.1 below: Figure 2.1: Value chain of FSPV projects Operation and Manufacturing Maintenance Feasibility & Procurement (O&M) Design & Construction Decommissioning Development To enable large-scale deployment in the FSPV • Competence development across the sector, key stakeholders across the value chain value chain have been identified to address the following key topics: 2.1.1. Equipment, Services & Skills • Current and prospective players in the As a first step, the major equipment, services, segment and skill sets relevant to the different value chain phases of a FSPV plant were mapped. • Level of indigenization of supply chain and services Tables 2.1, 2.2 and 2.3 present the outcome • Drivers to establish economies of scale of the mapping. Access to equipment, services, in the value chain and enable cost and skills is not difficult to come by in India, competitiveness owing to the presence of large- and small-scale players from parallel industries, experienced • Reliability of system and equipment freelancers, and float manufacturers, with some • Leveraging knowledge from other related players offering turnkey solutions. sectors Table 2.1: List of major equipment applicable for the different value chain phases Feasibility, Design and Manufacturing & Construction and Decommissioning Development procurement O&M Major ƒƒ Bathymetry ƒƒ Photovoltaic ƒƒ Boats ƒƒ Boats Equipment ŒŒ Survey platform/vessel/ (PV) Modules ƒƒ Tools and tackles ƒƒ Tools and anchored barge to mount ƒƒ Floaters ƒƒ Diving tackles all equipment/sensors, ƒƒ Mooring & equipment ƒƒ Diving ŒŒ Single or multi beam echo anchoring ƒƒ High precision equipment sounders devices GPS ƒƒ Cranes Mapping of The Value Chain and Identification of Barriers • 9 Feasibility, Design and Manufacturing & Construction and Decommissioning Development procurement O&M ŒŒ LiDAR airborne acquisition ƒƒ Inverters ƒƒ Drones (infrared ƒƒ Ambulance ŒŒ Direct measurements ƒƒ Balance thermography, ƒƒ PPE against with hand-lead line and of System: underwater drowning, graduated pole combiner inspection) slips, electric ŒŒ High precision Global boxes, ƒƒ Cranes shock etc. Positioning System (GPS) transformers, ƒƒ Ambulance ƒƒ Machines for cables, weather recycling ŒŒ Magnetometer ƒƒ Personal station, ŒŒ Gyrocompass Protective cleaning robots, Equipment ŒŒ Motion sensor Supervisory (PPE) against Control ŒŒ Sound Velocity Profiler drowning, slips, and Data ŒŒ Bar Check Equipment electric shock Acquisition ŒŒ Auto Level/Total Station etc. (SCADA) and with accessories monitoring ŒŒ Navigation and Processing system12 Software ƒƒ Blow moulding/ ƒƒ Geotechnical investigation injection moulding ŒŒ Van Veen grab sampler machines ŒŒ Niskin water sampler ƒƒ Test equipment ŒŒ Geo-electrical resistivity for materials meter and finished ŒŒ Thermal conductivity products meter ƒƒ Health, ŒŒ Seismograph Safety and ŒŒ Cable percussion or rotary Environment drilling machine (HSE) equipment ŒŒ Loading device ŒŒ Stiff frame for compression tests ŒŒ Digital or analogue dynamometer ŒŒ Digital or analogue micrometre ŒŒ Auxiliary tools (shovel, magnetic tripod, slings, hydraulic jack, hooks, pile load cap, etc.) 12 With respect to digitalization i.e., Internet of Things (IoT), control system, measurement, and other components, it is imperative that interoperability of components is ensured. 10 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Feasibility, Design and Manufacturing & Construction and Decommissioning Development procurement O&M ƒƒ Geophysical Survey ŒŒ Differential GPS ŒŒ Side scan Sonar ŒŒ Sub Bottom Profilers ŒŒ Magnetometer ŒŒ Ultra-Short Baseline with beacons ƒƒ Metocean survey equipment ƒƒ Meteo sensors ŒŒ Weather stations • Pyranometers • Wind speed and direction • Temperature (ambient and water) • Humidity • Rainfall ŒŒ Wave and water current sensors (Moored weather buoy, Acoustic Doppler Current Profilers, Drifter (for open oceans)) ŒŒ Wave Rider Buoys ƒƒ Diving equipment ƒƒ Boats/ships Table 2.2: Services applicable for the different value chain phases Feasibility, Design and Manufacturing & Construction and Decommissioning Development procurement O&M Services ƒƒ Bathymetry and ƒƒ Manufacturing ƒƒ Installation and ƒƒ Waste recycling geotechnical surveys consultancy commissioning services ƒƒ Geophysical surveys ƒƒ Polymers services ƒƒ Logistics service ƒƒ Metocean studies and plastics ƒƒ Project providers consultancy management ƒƒ Topography surveys ƒƒ O&M services consultancy ƒƒ Satellite service providers services ƒƒ Testing and ƒƒ Structural design ƒƒ O&M services certification consultancy – agencies ƒƒ Testing and Computational Fluid ƒƒ Logistics service certification Dynamics analysis providers services Mapping of The Value Chain and Identification of Barriers • 11 Feasibility, Design and Manufacturing & Construction and Decommissioning Development procurement O&M ƒƒ Technical consultancy – ƒƒ Inspection and ƒƒ Diving services grid integration, feasibility, Auditing services ƒƒ Boat operators etc. ƒƒ Emergency ƒƒ Environmental and Social rescue services Impact Assessment ƒƒ ESIA consultancy (ESIA) consultancy ƒƒ Testing agencies ƒƒ Auditing services for soil, water ƒƒ Testing agencies for soil, etc. water etc. ƒƒ Logistics service ƒƒ Structural testing – wind providers tunnel, wave pool ƒƒ Testing and certification of components ƒƒ Software licenses ƒƒ Boat operators ƒƒ Diving services ƒƒ Financial and Legal advisory services ƒƒ Government departments – ownership data, topography maps, green belt, reserve areas etc. Table 2.3: Skill sets applicable for the different value chain phases Feasibility, Design and Manufacturing & Construction and Decommissioning Development procurement O&M Skills ƒƒ Surveyors ƒƒ Material experts – ƒƒ Project Managers ƒƒ Researchers required ƒƒ Geographic Information plastics ƒƒ Finance ƒƒ Factory workers System (GIS) analysts ƒƒ Technology professional ƒƒ Labourers ƒƒ Marine Engineers experts – ƒƒ Construction ƒƒ Divers modules, Engineers ƒƒ Solar and Electrical ƒƒ Drivers inverters, etc. Engineers ƒƒ Divers ƒƒ Finance ƒƒ Power System Engineers ƒƒ Solar and professional ƒƒ Communication and Electrical ƒƒ Manufacturing Engineers Instrumentation Process experts Engineers ƒƒ Communication ƒƒ Lab Technicians and ƒƒ Production Instrumentation managers Engineers ƒƒ Machine ƒƒ Civil Engineers operators ƒƒ Quality personnel 12 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Feasibility, Design and Manufacturing & Construction and Decommissioning Development procurement O&M ƒƒ Lab Technicians ƒƒ Manufacturing ƒƒ HSE personnel ƒƒ Structural & Civil technicians ƒƒ Sustainability Engineers ƒƒ Process Engineers personnel ƒƒ Draftsperson ƒƒ Quality Engineers ƒƒ Environmental ƒƒ Divers ƒƒ Design Engineers Engineers ƒƒ Trainers ƒƒ Maintenance ƒƒ Site Managers ƒƒ Environmental Engineers ƒƒ Technicians Engineers ƒƒ Industrial ƒƒ Trainers ƒƒ Sociology experts Engineers ƒƒ Site supervisors ƒƒ Finance professional ƒƒ Supervisors ƒƒ Boat operators ƒƒ HSE professionals ƒƒ Procurement ƒƒ Labourers executives ƒƒ Boat operators ƒƒ Security personnel ƒƒ Accounts ƒƒ Emergency personnel personnel – ƒƒ Material doctors, rescue inspectors etc ƒƒ Auditors ƒƒ Drivers ƒƒ Security personnel ƒƒ Drivers 2.1.2. Stakeholders • Policy & Regulatory bodies, responsible for formulation of policies & framing The analysis places an emphasis on regulations. stakeholders’ engagement and collection of important data and information, as • Enablers from industry and academia. understanding the roles, responsibilities • Implementers, responsible for and preparedness of the stakeholders would development of FSPV projects for the end facilitate an analysis of the barriers to user. implementation and help design the path forward. The desk review and consultative In the spectrum of stakeholders listed above, meetings show that the FSPV segment has parallel industries include prospective players a multitude of stakeholders influencing the from sectors like automobile, plastics, maritime, business models, access to capital, energy oil and gas etc. who might be interested and off-take, and technology maturity. may have lower entry cost to foray into FSPV manufacturing arena. Tables 2.4 and 2.5 The key stakeholders as shown in Figure 2.2 identify the stakeholders directly involved in the below have been classified based on the value chain of FSPV and those from the relevant function they perform in the FSPV value chain: parallel sectors, respectively. Mapping of The Value Chain and Identification of Barriers • 13 Figure 2.2: Key stakeholders in the value chain Policy and Regulatory Enablers Implementers Bodies y Ministry of New and y National Institute of y Lenders & y Engineering, Renewable Energy Solar Energy (NISE) Investors procurement, and (MNRE) and Ministry y Surveyors y Solar Energy construction (EPC)/ of Power (MoP) Corporation of O&M Contractors y Testing agencies y Central Electricity India (SECI) y Manufacturers y Design consultancies Regulatory y State renewable (including Parallel y Certification agencies Commission (CERC) agencies Industries) y Bureau of Indian y State Electricity y Developers/ - Balance of Standards (BIS) Boards (SEBs) Independent System (BoS) y Skill development agency - Inverter y Waterbody Owners Power Producers y Fisheries Boards y Research organisations (IPPs) - Modules y Ministry of y Water body - Anchoring & Mooring Environment, Forest owners - Floats and Climate Change y Insurance (MoEFCC) y Transmission and y Central Water Distribution Commission (CWC) utilities y National Green Tribunal (NGT) Table 2.4: Stakeholders directly involved in the FSPV value chain Feasibility, Design and Manufacturing & Construction and Decommissioning Development procurement O&M Direct ƒƒ Lenders & Investors ƒƒ Floater ƒƒ Engineering, ƒƒ Plastic Stakeholders ƒƒ Research manufacturers Procurement Recyclers organisations ƒƒ Module and Construction ƒƒ Regulatory manufacturers (EPC) Company/ bodies ƒƒ Surveyors O&M contractors ƒƒ Developers/IPP ƒƒ BoS manufacturers ƒƒ Project ƒƒ Skill Development ƒƒ Inverter Management Agency manufacturers consultancies ƒƒ Waterbody Owners ƒƒ Anchoring/Mooring ƒƒ Testing and manufacturers ƒƒ Design certification consultancies ƒƒ Testing and agencies certification ƒƒ Policy and ƒƒ Insurance agencies regulatory bodies ƒƒ Regulatory bodies ƒƒ Policy and ƒƒ Testing and ƒƒ Skill Development regulatory bodies certification Agency agencies ƒƒ Skill Development Agency ƒƒ Transmission ƒƒ Transmission and and Distribution Distribution utilities ƒƒ Research utilities organisations 14 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Table 2.5: Stakeholders from relevant parallel sectors Feasibility, Design and Manufacturing & Construction and Decommissioning Development procurement O&M Stakeholders ƒƒ Fisheries Boards ƒƒ Plastic industries ƒƒ Maritime and - from Parallel ƒƒ CWC ƒƒ Oil & Gas offshore Sectors ƒƒ National Green Tribunal (engineering ƒƒ NGT (E&S) (NGT) (Environment plastics) and Social [E&S]) ƒƒ Automotive sector ƒƒ Maritime & offshore ƒƒ Plastic industries The detailed list of various stakeholders segment. Further details of the float and is included in Appendix A along with the anchoring system manufacturers consulted are categorization of “well established” and also presented in Appendix A. “prospective” players and the rationale for selection. However, it is to be noted that this is not an exhaustive list. A total of 44 stakeholders 2.2. Value Chain Assessment were consulted from this list. The distribution of various stakeholders consulted is also available 2.2.1. Market Readiness of the Value in Appendix A. Chain The market readiness of the value chain was As described in the Section 2.2 below, float assessed based on the four elements depicted manufacturing has been identified as one of in Figure 2.3, with inputs from the responses of the major bottlenecks in FSPV value chain stakeholders and further internal analysis. and hence emphasis has been given to this Figure 2.3: Market readiness of value chain – assessment elements • Installed capacity • Ease of access/availability • Complex installations • Special requirements for • Standardisation complex waterbodies • Project timeline Equipment Experience of • Scaling up and Service stakeholders • Regulatory Competency Technology and • Design expertise and Skill set Manufacturing • Bankability of technology • Complex designs • Manufacturing capacity • Construction • Supply chain • Operation and • Investment in Maintenance infrastructure • System cost Mapping of The Value Chain and Identification of Barriers • 15 • Green status indicates a conducive • Red status indicates that significant situation for scaling up. efforts are needed for scaling up. • Yellow status indicates that some efforts are needed to create the initial momentum for scaling up. Table 2.6: Market readiness of value chain Value chain elements Description Status Equipment ƒƒ The equipment identified in Section 2.1.1 for site investigations and construction is typically used for surveys or work on waterbodies depending on its characteristics. Although FSPV is relatively new, this equipment is being utilized in parallel industries like maritime, offshore, etc. Specialised survey or construction vessels might be necessary for complex and deep waterbodies. ƒƒ The components of a solar PV plant, like modules, inverters and other BoS, are no different from those of land-based plants but need to have additional specifications for continuous use in a water environment. ƒƒ The floatation devices are varied in design, with High Density Polyethylene (HDPE) based floats seeing wider commercial deployment in fresh water so far. ƒƒ The mooring and anchoring devices are also varied in design and can be designed to suit the specific requirements of the project. Service ƒƒ The services identified in Section 3.1.1 for site investigations and construction are typical and a number of service providers are already present in the marine and offshore industry, which is valuable to address the current and projected scale of ambition in the FSPV segment. However, big players might find the scale of FSPV unattractive to begin with. ƒƒ Certain services like electrical design, grid integration, soil and water testing, logistics etc are no different from ground mounted plants. ƒƒ The testing infrastructure for floating structures is currently limited. ƒƒ Recycling is well established for plastic and other components (except PV modules) of the plant. Experience of ƒƒ The experience of the stakeholders in ground mounted PV plants is stakeholders relevant for FSPV installations. However, the added expertise needed for work on water is still low, owing to the handful of relatively small sized installations in India. ƒƒ As scale of deployment increases, complexity of waterbodies is also expected to increase, which calls for a higher level of expertise in technical, commercial, construction and O&M aspects. ƒƒ Some stakeholders are integrated into the value chain and are equipped to provide multiple services including supply of floats and anchoring system, inverters, BoS components, and installation. 16 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Value chain elements Description Status ƒƒ When it comes to floats, anchoring and mooring, the required expertise can be drawn from parallel sectors including plastics, maritime, and offshore. ƒƒ Scaling up prospects depend on efficient project management to manage timelines and standardization of processes by the Developers/IPP and EPC/O&M contractors. ƒƒ The regulatory process for leasing a waterbody, approvals for safety of installations and monitoring of E&S impacts need to be revisited by regulators for applicability to FSPV projects. Technology ƒƒ Although the technology of floaters is still evolving, utility scale installations worldwide and in India have proven their feasibility. ƒƒ Some early accidents, globally, have highlighted the need for specific standards for the development and design of the floatation devices. However, this is true of any nascent technology. ƒƒ Reliability of the materials used for the floats for the expected plant life of 25 years is still to be proven and continuous investment into research and testing is needed. ƒƒ For complex waterbodies like hydropower plant (HPP) reservoirs, pilot projects will help to address design challenges and establish the fitness of the design concept. Manufacturing ƒƒ Manufacturing plastic floats is not a challenging task given the established plastics industry in India. Blow and injection moulding facilities are also easily available in India and can be adapted for the manufacture of floats. However, limitations should be anticipated for designs requiring a precision manufacturing process and a specialized supply chain for raw materials. ƒƒ The current FSPV specific manufacturing in India has an annual capacity of <550 MW (see Table 2.8 in Section 2.2.2.4), which is insufficient to cater to the scale of ambition. However, the infrastructure is capable of a fast scale up. ƒƒ Given the universal use of plastics, no issues are anticipated with the supply chain of plastics for floats. However, competing use in parallel sectors could impact availability of virgin HDPE. ƒƒ It is crucial to achieve a reliable blend of the raw material for floaters to ensure a 25-year lifetime expectancy for an FSPV plant; the raw material blend needs to be optimized through tests and learnings from the field. Competency and ƒƒ Significantly inadequate competencies in designing of anchoring and Skillset mooring system in the FSPV industry. ƒƒ While expertise is obtainable from parallel industries, it is fragmented, and synergies have not yet been tapped into. ƒƒ Re-skilling of existing workforce would be a fast way for rapid scale up. Mapping of The Value Chain and Identification of Barriers • 17 In summary, these drivers are identified to 2.2.2. Barriers address gaps and increase adoption rate: The barriers identified through consultations • Visibility of scale of deployment for the with stakeholders were assessed for short and medium terms. potential impacts on 10 risk parameters (see • Prioritization of less complex waterbodies Table 2.9 in Section 2.2.2.11) which have for building scale and experience. an influence across the value chain phases. Table 2.7 gives a summary of the 10 risk • Cost and design optimization. parameters with their explanations. These • Standardization. parameters have overlapping impacts and categorization has been done mainly to devise • Comprehensive data bank ensuring recommendations (presented in Section 2.3) availability of requisite technical and non- for mitigation. Further discussion on the risk technical information. parameters and drivers to address barriers are • Continued focus on research and presented in the sections following development. Table 2.7. • Training/re-training of workforce. Table 2.7: Definition of risk parameters Sl. No. Risk Parameter Explanation 1. Technical Aspects which limit the optimization or reliability of the technical design of the projects like inadequate design considerations, safety factors, testing infrastructure, lack of standardization, inadequate experience, and unavailability of relevant input design data. 2. Commercial Factors affecting Capital Expenditure (CAPEX) such as scale, unoptimized designs, design validation, supply chain inefficiencies and bottlenecks, challenging site conditions, inexperience resulting in delays and project cost escalations, and cost of logistics. Factors affecting Operating Expense (OPEX) such as quality of plant and construction, reliability of components, site complexity, system degradation, inadequate design resulting in damages, climate change impacts, and lack of consideration of O&M in design. 3. Policy and Timeline for securing approvals for project development and setting up of Regulatory manufacturing units, policy and regulatory changes impacting project cost, budgets, approvals, unclear regulatory authority for HSE topics on waterborne power plant, lack of regulations, for example, for recycling. 4. Manufacturing Limitations of manufacturing capacity, product development time, technological and Scale up patents owned by overseas suppliers, inflexibility of float designs to customization, investment cost for manufacturing infrastructure, raw material supply chain issues and price fluctuations, new factories established near the sites without stabilized processes and necessary quality standards, process excursions resulting in delays, access to working capital, regulatory uncertainties, lack of roadmap and clarity among stakeholders, pitfalls on account of design adequacy, quality, incorrect data, incompetence all of which will limit fast scaling up. 5. Site related and Factors which result in extended development timeframe of projects like challenging Timeline site conditions, lack of planning, supply chain issues, prolonged time for statutory permits and compliances, long term data acquisition, unplanned construction issues, and difficulties with operation and maintenance. 18 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Sl. No. Risk Parameter Explanation 6. Quality, Safety Factors which impact the quality, safety and reliability of the project and its and Reliability components like cost pressure, lack of standards and regulations, manufacturing process control and repeatability, material degradation, lack of experience, inadequate design and testing, substandard quality of material or services, and inadequate planning. 7. Indigenization Dependence on imports, perception of stakeholders, small volume, and lack of R&D initiatives. 8. Investment Risk or lack of motivation to invest in FSPV projects attributed to insufficient data to prove quality and reliability, lack of competence, lack of awareness, unfavourable regulatory environment, and uncertainties around environmental and social impacts. 9. Environmental Uncertainties around impacts on environment or social aspects attributed to and Social insufficient data, inadequate methods of impact assessment, lack of research studies, and climate change. 10. Skill Lack of skilled personnel for design, testing, manufacturing, construction, and maintenance for the scale of growth. 2.2.2.1. Technical Global efforts to ensure standardization include: Technical risk encompasses all aspects which • The World Bank’s When Sun Meets limit the optimization or reliability of the Water series, including the Handbook for projects. FSPV practitioners. • STOWA (Netherlands) Guide for licensing Lack of specific standards: The most notable of floating solar parks on water. risk is the absence of specific standards which has manifold implications across the value nternational Electrotechnical Commission • I chain of FSPV, from initial feasibility studies to (IEC) TC 82, established to prepare design, testing, construction and operation. A international standards for PV systems, major challenge in standardization is finding has included FSPV in its agenda. the right balance to make it efficient and • Working Group for Singapore-based useful. Blind adoption of offshore standards technical reference (building on will set the bar too high (overdesigned), while IEC TS 62738). use of existing standards of ground mounted • Korea and China (NB/T 10187-2019) installations would invariably lead to inadequate have national requirements for floating design (under designed), both resulting in an solar HDPE structures. unviable business case for floating PV. The • Pilot testbeds and scientific research in absence of floating specific standards can also Netherlands, Singapore, Germany, Italy, result in situations where quality conscious Norway, Spain, Portugal and Korea. manufacturers do not get a level playing field in competitive bids. • Dedicated conferences organized in a few markets for dissemination and sharing of Drivers: Standards defined based on test results, experiences. theoretical and empirical studies to ensure the • DNV’s Joint Industry Project that resulted desired quality and reliability of material and in the development of a Floating Solar PV components in a water environment. Recommended Practice (DNV-RP-0584).13 13 DNV, (2021, October), Recommended practice | https://rules.dnv.com/docs/pdf/DNV/RP/2021-10/DNV-RP-0584.pdf Mapping of The Value Chain and Identification of Barriers • 19 • DNV has developed project certification authorized to test float materials and formulate of PV power plants (DNVGL-SE-0078) specific standards. and has certified ground mounted solar projects. A similar document can be Input data for design: Several stakeholders developed for FSPV. identified the unavailability of reliable historical data (wave height, water current, water depth, Testing infrastructure: The current bathymetry, wind speed, soil type, frequency infrastructure in India for structural testing is of waves etc.) as a barrier for optimization of not geared to the needs of floating structures designs of floater platforms, anchoring and which are subjected to complex mechanical mooring systems. Data sharing is generally not motions. Some organizations have the capability done publicly by owners due to confidentiality to do material testing but this knowledge is reasons. Another hindrance is the lack of not widely disseminated. Given the variability digitisation of available historical data. Site- in the float designs and site conditions, testing specific investigations done for a short period to customized requirements is key to optimize of time (based on the project development and validate product designs. Equally important timelines and cost), cannot be a substitute for is the design of tests to adequately cover all long-term historical data. If data is inadequate, known and foreseen situations that the system six months to one-year surveys could be carried could be subjected to during its lifetime. out. Absence of proper design inputs can result in over/under designing of the system, higher Commonly used polymer blends such as HDPE, cost, and long-term risk to the project. blended with other co-polymers or monomers and additives, require development specific to FSPV Drivers: Inclusion of base data such as application. Hence, the results of material testing historical data of waterbody, feasibility of plastics used for floats is an important input to surveys, location identified for installation, and the design of systems, especially in the absence evacuation point in bid documents will drive of specific standards and adequate experience. competitiveness of bids and avoid time delays The cost and time for testing, however, can be a in project development. Developing detailed possible hindrance to adoption by the industry. atlases for mapping of waterbodies (a recent initiative is the Global Solar Atlas14) and making Drivers: The need of the hour is a commercial historical data, waterbody characteristics, and R&D centre and possible grants or support other relevant data available through a single for technological innovation with probable window will aid the stakeholders. Further, participation from the government, industry and the development of standard requirements for research organizations. Facilitating collaboration conducting technical and E&S studies as well between think tanks will ensure that learnings as procurement specifications will contribute feed into faster formulation of standards and towards the uptake of FSPV. testing guidelines. Inadequate experience: Some players struggle A clear projection of scale of growth of FSPV with lack of design competency and inadequate (see Table 1.1 for scenarios) along with testing focus on innovation. Lack of experience can mandates can create a profitable business case result in incorrect budgeting of cost and for establishing new laboratories and drive underestimation of timelines, both of which reduction in the cost of testing. A system should are imperative for installations in complex near be devised to enrol certifying bodies which are shore and inland waterbodies. 14 The World Bank Group. Hydro-connected sites. https://globalsolaratlas.info/map 20 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Drivers: Experience builds with scale, but to make commitments on infrastructure and it is important to avoid early mistakes in investment, resulting in cost optimization. the process. Formulation of FSPV specific The tender specifications could also be standards and drawing on expertise from finalized in discussion with the stakeholders to parallel industries or design consultants can promote design optimisation and engagement. help streamline the design process. Pilot Government support like Viability Gap Funding projects on complex waterbodies like HPP (VGF), reduction of Goods and Services Tax for reservoirs, will help to establish fitness for floaters, and removal of import duties (currently purpose of the design concept. Existing 15 percent) on floater raw material for an initial capacity-building programs may be extended embryonic period could be explored. Further, to include the design process and applicable a method to factor the benefit of avoided technical standards. Experience-sharing evaporation loss in the calculation of tariff could sessions with forerunners in the sector can be considered. provide valuable insights to all stakeholders. OPEX: The quality of design, construction and reliability of components have a strong 2.2.2.2. Commercial influence on the operational expenses of the Barriers with commercial implications are plant. Equally important are the potential highlighted throughout the value chain; risks due to climate change. Compared to the most important is the constraint of their ground mounted counterparts, FSPV manufacturing capacity. installations have additional operation and maintenance challenges due to limited CAPEX: The current fragmented approach accessibility to the modules (depending to conducting initial feasibility surveys and on the type of float). Original Equipment developing projects has not yet resulted in a Manufacturers do not currently offer any scale attractive enough to optimize cost. Supply long-term warranty15 for the float system chain bottlenecks and inexperience can add (as back-to-back warranties for lifetime to delays and project cost escalations apart performance of floaters is not received from from the high investment cost for complex raw material suppliers), leading to contractors waterbodies. Establishing manufacturing bearing a high-risk exposure disproportionate facilities near the project site is required to to rewards. Given the lack of confidence in a offset the high cost of logistics. Further, the 25-year design life and limited warranty on common methods of blow moulding and floaters, close monitoring of the vulnerable pressure injection moulding, machinery, land, components and a proactive inspection plan and associated infrastructure require substantial is needed, which adds to O&M costs. An investment. International players desirous of increased maintenance reserve account for key entering the market face hurdles with pricing, components like floaters is also likely to be policies, identification of right partners, and needed. visibility of volumes. Drivers: Building a plant to last longer comes Drivers: Clearly articulated targets for FSPV with a marginally higher initial investment but in the Government of India’s National Solar the benefits are reaped during the operational Mission (NSM), with timelines for tendering phase. A focus on quality, innovation, research, and implementation, will give the much- and testing to prove reliability of components needed visibility of volume for the industry can achieve the desired outcome. 15 Typically, 10 years for floatation devices. Mapping of The Value Chain and Identification of Barriers • 21 2.2.2.3. Policy and Regulatory Lack of experience in the process of FSPV systems can make projects less financially The following policy and regulatory barriers appealing to banks and other financial are identified, with impacts on aspects institutions. Given the lack of experience that such as project timelines, cost budgets, and banks, insurers, and other financial institutions approvals. currently have with FSPV projects, financial Delays and an increase in cost of FSPV closing is likely to take longer than it may deployment due to uncertainty about water for more familiar, ground-mounted solar PV rights. The uncertain ecological impacts of projects. FSPV systems on natural waterbodies and Lack of clarity on the rules on the ownership, related uncertain enacting of laws and rights market participation and operation of hybrid can cause delays. Furthermore, there is hydropower-FSPV or thermal-FSPV plants. uncertainty on whether various water right If an FSPV system is hybridized with a doctrines apply to FSPV systems developed hydropower, thermal or other system, there on artificial reservoirs. This can increase FSPV are multiple stakeholders involved (such as deployment costs as developers may have the owners and operators of the reservoirs, to invest significant time and money to gain hydropower dams, and FSPV systems) who clarity before formally applying for the rights may have conflicting interests. Project approval and permission to site FSPV systems on a given may face various barriers depending on the waterbody. The lack of clarity in licensing and ownership model and market participation permitting can also present major barriers to model. Clear regulatory processes on the FSPV deployment. ownership and market participation models and Lack of cooperation and coordination among operation methods for such hybrid systems is different stakeholders may stall FSPV required to provide clarity to all stakeholders deployment. Deployment of FSPV plants may and support an informed decision-making require reviews, approvals, and permits16 process. from multiple government entities. Lack of Unclear and non-existent standards for FSPV coordination between these agencies and non- installation, O&M and its equipment may governmental agencies can lead to delays in result in deficient policies and regulations. installation of the plant. Such agencies may The regulatory landscape is more pertinent include: for the waterborne power plant on the • Energy agencies, such as the MNRE, topics of electrical safety and fire safety. MoP , and distribution companies A lack of consistent FSPV installation and (DISCOMs). equipment standards may lead to poor quality • Water management agencies, such as FSPV products, installations, and system the CWC, Ministry of Jal Shakti, and performance. Standards (and their enforcement) hydropower or thermal plant owners. are a vital part of policies and regulations as they provide manufacturers with a benchmark • Land management agencies, such as the of performance requirements for their products, Department of Land Resources. guide users during product selection, and help • Environmental protection agencies, such government agencies to incorporate them into as MoEFCC. workplace safety and health regulations. 16 A collection of applicable policies, permits and approvals are included in Appendix F. However, this list could be dynamic, and a project specific due diligence is recommended. 22 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Economic policy uncertainty may stall private • Overall engagement approach that sector interest in FSPV systems. Policies and fosters trust in decision makers and other support pricing specific to FSPV are currently stakeholders. not in force in India. Private sector players, especially in emerging industries, rely on a Policy must address the barriers related to stable, transparent, and favourable policy resettlement and rehabilitation, compensation environment that supports reliable and long- practices. Unfairly applied resettlement and term energy markets. If a policy environment is compensation practices can create a negative uncertain, especially at the state level, private perception of FSPV projects. FSPV systems sector actors are less likely to pursue projects. may thus face public opposition due to negative An uncertain policy and regulatory environment public perceptions stemming from previous can stall deployment of new technologies, such conflicts. as FSPV, because developers prefer regulatory Open ended market rules may lead to multiple certainty in their investment choices. interpretations. A lot of market rules such as Uncertainty about FSPV’s ecological impacts prioritization of power despatch, must-run may cause delays in development of policies. status, and energy banking are not currently The potential ecological impacts of FSPV robust enough to manage hybrid as well as systems, especially their effect on the aquatic stand-alone FSPV plants. Complexities further ecosystem, are not yet fully understood, and arise due to multiple end uses of the water there is limited publicly available research on in the reservoir such as irrigation or peak the impacts. This uncertainty may impede power generation. As two or more different FSPV policy development because this could stakeholders come into the play, there is a need complicate environmental review processes for clear rules and regulations for operating the and raise public concerns about the unknown FSPVs as well as water reservoirs. impacts of FSPV deployment. Drivers: Given the above, it is noted that the Policy for FSPV needs to address the barriers formulation of specific guidelines and regulatory of lack of public buy-in of FSPV technology process for deployment of FSPV projects can due to visual impacts and competing uses of ease the timelines and uncertainties in setting waterbodies. Public opposition to development up of such plants. Including targets and of new technologies such as FSPV could hamper timelines for FSPV in the NSM can further give implementation. Therefore, while drafting the the visibility of the volume to the industry to policies, it is important to understand and drive investment in infrastructure and hence incorporate the following elements: cost optimization. • How FSPV projects will factor in the values of community (for example, 2.2.2.4. Manufacturing and Scale Up concerns about climate change, job Among the varied solutions for floaters17 creation, etc.); available in the market currently, the • Overall evaluation of costs, risks, and HDPE pure float version has typically been benefits of the technology and project; adopted for the large-scale installations commissioned till date, primarily attributed to • Clarity on the project development desirable material properties of HDPE for the decision-making process; and 17 Pure floats (characterised by direct mounting of PV modules onto the floats), module rafts (characterised by structural frameworks supported by floats), membranes (characterised by PV modules attached to a reinforced membrane which is supported by additional structures, such as tubular rings to provide buoyancy support). Mapping of The Value Chain and Identification of Barriers • 23 application, ease of manufacturing, and cost fillers, and additives are mostly loaded with effectiveness. These floats, by virtue of their orders from parallel sectors, and the current blow moulded construction, are bulky and low demand from the FSPV segment makes incur significant transportation costs. Hence, availability throughout the year difficult. The moving the factories closer to project sites current manufacturing capacities of some has been recommended as a viable option prominent suppliers in India are given in by the industry. However, a project capacity Table 2.8. of 20-50 MWp was indicated by different stakeholders as a minimum scale to justify the Drivers: A visible scale of deployment through a cost and effort for setting up such temporary project pipeline/tendering timeline would entice facilities. This, however, poses new challenges interest in scaling up of manufacturing facilities. in terms of time-consuming regulatory A series of tenders released by the government approvals for setting up of the factory and between 2018 and 2019 did not result in ensuring quality and repeatability of processes. upscaling of manufacturing as expected, Process stabilization and control in a temporary probably due to a wait and watch approach by manufacturing set up can be a challenging task, the stakeholders involved. The recent 600 MW with impact on the long-term reliability of the tender from RUMSL for Omkareshwar reservoir, end product. along with others in the pipeline, could trigger a renewed interest from the industry. For injection moulded components, the Establishment of manufacturing facilities near preference is to have centralized facilities project sites can be facilitated through creation as these components require heavy moulds, of specific infrastructure and single window complex machinery, and stable power supply clearance mechanisms under the purview of the to ensure quality. Excess capacity, available in “Aatma Nirbhar Bharat” and “Make in India” India with other industries like automobiles, can initiatives of the Government of India. The use easily be tapped into if customized moulds for of recycled plastic in manufacturing could be floaters are provided. However, the benefit of explored; however, it is not the most preferred injection moulded components is that, unlike option of manufacturers owing to challenges in blow moulded components, their shipping can meeting the required technical specifications, be done with nesting of components, which reliability, and possible environmental concerns. reduces the volume. Facilitation of working capital for small-scale manufacturers can be provided by extending India does not have many established suppliers debt for longer tenure. of floats and the availability and cost of working capital is a major deterrent to investment and Table 2.8: Annual manufacturing capacity (2023) scaling up of manufacturing capacity. Moulds, of floats in India18 especially for large parts, are imported by Supplier Annual Manufacturing some float manufacturers and the cost is Capacity, MW significant (INR 30 lakhs to INR 1 crore per mould). Hence, some manufacturers prefer to Quant Solar 50 subcontract manufacturing to meet additional Ciel et Terre 300 demand rather than making capital investment Adtech Systems 100 themselves. Petroleum prices also add the risk Bloomseal 100 of price fluctuation for raw materials. Major Flotex 300 suppliers of raw materials like HDPE pellets, Total 850 18 This is not an exhaustive list and covers only few technology providers. 24 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 2.2.2.5. Site Related and Timeline 2.2.2.6. Quality, Safety and Reliability Identification of favourable sites is important Considering the limited knowledge available for the early projects. Waterbodies with issues in the field, the risks to design, execution and such as greater depths and high-water level operation are manifold. Apart from the possible variations pose technical challenges for design compromise on quality and over optimization and installation and drive up the development of design driven by cost pressure and lack of cost of projects. A lack of reliable historical data specific standards, the unseen risks of safety, for the waterbody increases the uncertainties in long term reliability of components, challenges the design boundary conditions which results in of carrying out routine maintenance, and impact increased expenditure and time for site specific of future changes to the waterbody (presence of investigations. pollutants from industrial activity, physical risks due to climate change and the like) are other Restricted access to the waterbody and local factors that need to be addressed to maintain environment (such as water level changes, confidence in the investment. seasonal delays, rain, high wind, seasonal wildlife movement, floating debris during Currently, the workers employed in ground monsoon, and sedimentation,) can also impact mounted plants are not trained to do work in the implementation timelines. a marine environment. Additionally, process control and repeatability of manufacturing Drivers: Prioritizing waterbodies with less process is important for the long-term reliability complexities (such as those with lesser depth of product and system. and water level variations, captive reservoirs) for deployment of initial plants will help in Drivers: Formulation of specific standards for building confidence and aid faster scaling up product, structural design, and testing, and of the value chain. Learnings can be translated leveraging the expertise from parallel industries into best practices and necessary data can be are important steps toward ensuring quality collected for making the sector more bankable and reliability (please see Section 4 for more to attract investments. details). A continued focus on research and innovation is also needed to realise the scale A centralized approach to conduct pre- of deployment. Project developers could be feasibility studies and surveys for identification mandated to maintain and share records of of waterbodies would improve quality of specific parameters of interest with regard assessments and reduce cost. For instance, the to FSPV like energy generation and impact Global Solar Atlas19, hosts a database of 2,173 on biodiversity. Knowledge sharing can be reservoirs across India. Further streamlining facilitated through means such as formation of can be done with standardization of technical expert committees and conferences. Training requirements of surveys and identification of or re-training of the workforce is paramount to approved service providers. ensuring safety and quality of construction. More meticulous project planning is needed for FSPV installations in view of the hurried 2.2.2.7. Indigenization timelines typical of ground mounted PV Barring floats, the components of a FSPV plants, to avoid incidental construction quality plant are sourced similarly to those of a issues. ground mounted plant. Major components 19 The World Bank Group. Hydro-connected sites. https://globalsolaratlas.info/map Mapping of The Value Chain and Identification of Barriers • 25 like modules are largely imported, while established plant machinery manufacturers inverters are imported or locally sourced. could also be explored. As mentioned earlier, The interactions with stakeholders made it a clear visibility of volume for the industry clear that the dependence of supply chain on to make commitments on infrastructure and imports is not significant in the manufacturing investment is vital. of floats (import option is typically explored by float manufacturers for machinery and raw 2.2.2.8. Investment materials). The relevant experience is already present in parallel industries which, if used While FSPV is attractive in many aspects, the to advantage, can contribute to the upscaling higher tariff ensuing from a higher project cost of the sector. However, more emphasis needs compared to ground mounted installations is to be laid on R&D. Multiple indigenous a matter of concern for offtakers. Since the manufacturers are known to license patented ecological impacts of FSPV system on a natural technology from international players and then reservoir have not been sufficiently studied, focus on manufacturing and implementation, investors and other stakeholders with a strong which would limit their capability to optimize focus on sustainable investing would prefer the product, system design and cost. On the captive waterbodies to natural ones. Further, other hand, there are home-grown start-up insurance of floating PV assets is neither easy companies that are small in scale currently nor affordable as the scale is small and scant but have the flexibility and knowledge of local field data is available on the long-term status of conditions to continually improve and innovate installations. their designs. Innovation is the key to sustain the segment. Drivers: From the perspective of gaining confidence and experience, it is preferable As local manufacturing (closer to the project to have initial installations on less complex location) should be mandatory for cost waterbodies with low depth and less water effectiveness and faster turnaround times level variations (the so-called low hanging in FSPV plants. Significant investment in fruits) before considering large reservoirs (and manufacturing infrastructure across feasible offshore developments in the future) to step locations in the country is necessary. up the scale. Maintenance of data like energy generation, material and equipment degradation Drivers: Funding of the following activities can etc. can help in reinforcing the quality and provide the much-needed impetus to the FSPV reliability of the project and thereby, trust in segment: the technology. DNV, Quant Solar and ONGC • research on materials, product design and Mangalore Petrochemicals Limited (OMPL) are impact on biodiversity; in an agreement for a research and monitoring project on an operational MW scale floating • specific infrastructure and single window solar to quantify the benefits of FSPV. clearance mechanisms for establishing manufacturing facilities near proposed project sites; and 2.2.2.9. Environmental and Social (E&S) • support to small scale companies for The short- and long-term impacts of FSPV raising debt and working capital. plants on biodiversity of the waterbody are not sufficiently known. Potential impacts Development of mobile platforms for blow could include changes in dissolved oxygen moulding (a containerized solution which levels, temperature stratification, exposure can be moved to different locations) with to electromagnetic field associated with 26 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 underwater electrical cables, and leaching of 2.2.2.10. Skill detergents, oil and chemicals. The methods to The skill requirements of FSPV systems across measure impacts during the operational period the value chain find substantial overlap with could also be ineffective. The social impacts ground mounted solar plants (please see could include restricted access to the waterbody Section 1 for more details). However, owing for general public and an impact on livelihoods. to its nascency and situation in a water This can be a deterrent to investors who are environment, lack of experience is evident in committed to sustainable investments. specific aspects of design of the floaters and Drivers: Creation of a baseline is important for anchoring and mooring systems, material measuring impacts on the environment and engineering and safe and efficient working on society. Although solar plants are currently waterbodies during construction and operational exempted from environmental impact phases. The knowledge and experience from assessment, the same should be mandated parallel sectors like maritime, automotive, for FSPV installations depending on the nature offshore, and oil and gas are still untapped. of waterbody (captive/natural reservoirs) Drivers: Extracting synergies from the knowhow and extent of coverage of water surface, to and experience in the parallel industries is vital identify and limit any long-term impacts. The for preventing early mistakes that could prove Final Environmental and Social Management a deterrent for the scaling up of the segment. Framework document of SECI20 can provide Structural design expertise from maritime guidance for undertaking ESIA, formulating an and offshore industries, creation of material Environmental and Social Management Plan, blends for engineering plastics from oil and conducting social assessments, stakeholder gas industry, manufacturing optimization from consultations, and monitoring and evaluation of automotive and other consumer segments projects. are some instances of such opportunities. Research funding can be allocated to Specialists in the fields relevant for FSPV assess the long-term impacts of the floating integration need to be developed. Reskilling of PV installation on the biodiversity of the existing certified installers of ground mounted waterbody. A periodical measurement of the plants could be looked at as a faster option impacts during the lifetime of the project can in comparison to the creation of a new FSPV- also be mandated to factually establish the specific resource pool. Ensuring participation assumptions. of women by guaranteeing their safety and a gender-neutral working environment Protecting Biodiversity BayWa.re, installed “biohuts” from a French company Ecocean in its floating PV plant in Netherlands (Bomhofsplas) in an effort to monitor biodiversity and water quality. Biohuts are “fish hotels” that provide food, shelter and protection to young and small fish to protect them from predators. This increases the survival rate of small fish and ensures biodiversity of the waterbody. BayWa.re is monitoring these biohuts, while taking regular measurements of water quality, oxygen levels inter alia in a multi-year study to assess their effectiveness. Source: BayWa.re 20 SOLAR ENERGY CORPORATION OF INDIA LIMITED (SECI). (2018, October). Final Environmental and Social Management Framework. https://www.seci.co.in/web-data/docs/ESMF_final.pdf Mapping of The Value Chain and Identification of Barriers • 27 and formulate specific training courses for • Manufacturing and scale up: Lack of technicians, installers, and designers through a quality standards will have an impact on joint effort between industry and academia. product quality. • Site related and timeline: Inadequate or 2.2.2.11. Assessment Summary inaccurate collection of site data owing to absence of standardized specifications for Stakeholder consultations helped identify 38 surveys, can impact CAPEX or introduce barriers. As shown in Table 2.9, each barrier delays in project execution timelines. was assessed for its potential direct impact on 10 risk parameters (elaborated in Table 2.7, • Quality, safety, and reliability: Lack Section 2.2.2). For instance, the barrier of standards can impact the quality, “absence of specific standards” has direct safety and reliability of the project and impact on the following risk parameters: equipment. • Technical: Lack of standards can result • Indigenisation: No direct impact. in inadequate or sub-optimal design • Investment: Cost, quality and reliability considerations impacting reliability of the are pertinent to secure investment in equipment. FSPV projects, which are dependent on • Commercial: Unoptimized designs will development of specific standards for the have impact on upfront CAPEX and application. OPEX in the event of failures attributed to • E&S: No direct impact. design deficiencies. • Skill: No direct impact. • Regulatory: No direct impact. 28 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Table 2.9: Impact of Barriers on the Risk Parameters Impact on Risk Parameters Sl. No. Identified Barriers Technical Commercial Regulatory Manufacturing & Scale up Site related & Timeline Quality, Safety & Reliability Indigenisation Investment Environmental & Social Skill 1. Testing infrastructure: 1. Insufficient testing infrastructure. 2. Low volume to justify investment in additional testing infrastructure. Yes Yes Yes Yes 3. Repetition of tests to local standards is an added cost for overseas manufacturers trying to enter the market. 2. Standards: 1. Lack of specific standards governing the requirements of a floating plant. 2. Absence of standards for design and Yes Yes Yes Yes Yes Yes testing, factor of safety (FoS). 3. Standards and requirement specifications of surveys. 4. Standardization of survey method. 3. Lack of rules on fire protection for plastic Yes Yes Yes Yes components. 4. Experience: 1. Low experience and expertise of suppliers and subcontractors. Yes Yes Yes Yes Yes Yes 2. Inadequate skills for installation and Mapping of The Value Chain and Identification of Barriers maintenance on water. • 29 30 • Impact on Risk Parameters Sl. No. Identified Barriers Technical Commercial Regulatory Manufacturing & Scale up Site related & Timeline Quality, Safety & Reliability Indigenisation Investment Environmental & Social Skill 5. Installation: 1. Requirement of sophisticated equipment depending on characteristics of waterbody. 2. Local environment impacting activities and timelines—water level changes, seasonal delays (rain, high wind etc.), restrictions to site access, seasonal wildlife movement, floating debris during monsoon, Yes Yes Yes Yes Yes Yes sedimentation etc. 3. Time needed for surveys—some inputs might have to be collected over a long term. 4. High cost of hiring available workmen for marine work. Need for expert diver Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 companies for accurate positioning of anchors and mooring lines. 6. Technical: 1. Unavailability of specific design standards. 2. Lack of experience to estimate the design boundary conditions, challenges with Yes Yes Yes Yes Yes design of anchoring and mooring. 3. Lack of expertise with developer to specify required properties and testing standards of plastic floaters. Impact on Risk Parameters Sl. No. Identified Barriers Technical Commercial Regulatory Manufacturing & Scale up Site related & Timeline Quality, Safety & Reliability Indigenisation Investment Environmental & Social Skill 4. Need to identify, specify and hire expensive consultants to do design calculations, conduct wave pool and wind tunnel experiments to improve confidence on design of floater assembly. 7. Operation: Unavailability of trained fire servicemen yes Yes Yes Yes at reasonable distance [in case of remote locations]. 8. Capex: 1. Unfavourable conditions at the waterbody (e.g., high depths, water level variation, waves, high salinity) etc leading to high Yes Yes Yes Yes Yes costs of investment and infeasibility of projects. 2. Higher CAPEX resulting in high tariff which would be unfeasible for offtakers. 9. Data availability: 1. Unavailability of historical data of waterbody leading to incorrect preliminary design and cost estimation. Yes Yes Yes Yes Yes Yes 2. Data sharing is not done publicly by owners due to confidentiality reasons. 3. Digitisation of available historical data is Mapping of The Value Chain and Identification of Barriers needed to facilitate fast information sharing. • 31 32 • Impact on Risk Parameters Sl. No. Identified Barriers Technical Commercial Regulatory Manufacturing & Scale up Site related & Timeline Quality, Safety & Reliability Indigenisation Investment Environmental & Social Skill 10. Permits & regulatory: 1. No clarity on ownership of waterbody. 2. Regulatory issues and securing approvals, especially with setting up of manufacturing Yes Yes Yes Yes Yes unit near to the sites. 3. Policy and regulatory changes impacting project cost, budgets, approvals etc. 11. Regulatory requirements on ESIA – e.g., extent of coverage of waterbody. Yes Yes Yes Yes Yes 12. Unclear regulatory authority for HSE topics on Yes Yes Yes Yes Yes waterborne power plant. Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 13. Raw material: 1. Raw material supply chain issues and price fluctuations. Yes Yes Yes Yes Yes 2. Cost of raw material being controlled by major players in the market and also linked to petroleum prices. 14. Manufacturing: 1. New factories near the sites without stabilised processes and necessary quality standards, process excursions resulting in delays. Impact on Risk Parameters Sl. No. Identified Barriers Technical Commercial Regulatory Manufacturing & Scale up Site related & Timeline Quality, Safety & Reliability Indigenisation Investment Environmental & Social Skill 2. Need to identify manufacturers of plastic floaters close to the sites or move the factories closer to site so that sum of cost of manufacture and cost of transportation is kept competitive. 3. Foreign players preferring to keep manufacturing centralised with overseas facilities, owing to requirements of precision and quality. Yes Yes Yes Yes Yes Yes Yes 4. Moulds for manufacturing are imported as original manufacturer does not want to part with Ingress Protection (IP). 5. Technological patents (or IP) owned by overseas suppliers (parents) and associated costs of acquisition. 6. Need for scale of orders for economic development and manufacture of floaters. 15. Manufacturing tolerances - less control on Yes Yes Yes Yes processes, impact on design calculations. 16. Local availability and cost of flexible connectors in mooring lines for accommodating high water Yes Yes Yes Yes Yes Yes Yes level variations. 17. Limited manufacturing capacity. Yes Yes Yes Yes Mapping of The Value Chain and Identification of Barriers • 33 34 • Impact on Risk Parameters Sl. No. Identified Barriers Technical Commercial Regulatory Manufacturing & Scale up Site related & Timeline Quality, Safety & Reliability Indigenisation Investment Environmental & Social Skill 18. Funding for setting up of manufacturing unit Yes Yes Yes Yes Yes and access to working capital. 19. Float design and manufacturing for accommodating higher capacity panels Yes Yes Yes Yes Yes >500 Wp with bigger sizes is a challenge. 20. O&M: 1. Insufficient field experience to formulate a spare parts strategy and estimate lifetime. Yes Yes Yes 2. Reliability issues of components leading to increased replacements and maintenance costs. 21. Investment: Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Lack of field data to support reliability Yes Yes Yes of system to maintain confidence in the investment. 22. 1. Safety aspects of working on water - drowning, water animals, floating objects, slips and falls, electric shock etc. Yes Yes Yes 2. Work on waterborne plant requiring special skills on Health & Safety. 23. Corrosion and degradation rates accelerated by water, presence of pollutants in water due to Yes Yes future industrial activity, etc. 24. Electrical design safety. Yes Yes Yes Impact on Risk Parameters Sl. No. Identified Barriers Technical Commercial Regulatory Manufacturing & Scale up Site related & Timeline Quality, Safety & Reliability Indigenisation Investment Environmental & Social Skill 25. 1. Price pressure leading to compromise on quality and specifications. Cost vs technology distinction is a deterrent to foreign players. Yes Yes Yes Yes Yes 2. Specifications of floats not matured to suit the project and are copied. Optimizations happen after order. 26. Difficult maintenance due to low clearance of Yes Yes Yes modules from water. 27. Transition and physical risks attributed to climate change—typhoons/cyclones, flooding, Yes Yes Yes Yes high temperature or humidity leading to underperformance of PV plants. 28 Environment: 1. Insufficient information on short- and long-term impacts on biodiversity and a baseline. 2. Insufficient methods to measure impacts Yes Yes Yes due to construction and operation. 3. Standardize method for ESIA surveys. 4. Negative impact on tourism, water sports, fishing (livelihood of local villagers). Mapping of The Value Chain and Identification of Barriers • 35 36 • Impact on Risk Parameters Sl. No. Identified Barriers Technical Commercial Regulatory Manufacturing & Scale up Site related & Timeline Quality, Safety & Reliability Indigenisation Investment Environmental & Social Skill 29. Recycling: 1. Recycling technology (adoption of high value recycling). 2. Economies of scale of recycling. Recycling plastic waste is a challenge due to Yes Yes Yes Yes Yes Yes contamination and inconsistency of materials. 3. Recycling industry is largely unorganized. 4. Lack of recycling regulations, awareness creation. 30. Developer having to bear the risks of deviation in environmental conditions and lack of Yes Yes Yes Yes support and risk sharing by Owner. 31. Inaccurate energy yield estimations and Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 financial analysis - unavailability of site meteo Yes Yes Yes Yes data, validation of design assumptions, system degradation etc from site data. 32. Lack of understanding of the scope of work Yes Yes Yes Yes leading to incorrect estimation of cost. 33. Surveys: 1. Cost of surveys. 2. Cost of mobilization and demobilization could be more than the cost of actual Yes Yes Yes Yes Yes survey depending on the nature and location of the waterbody. 3. Survey scale of FSPV is not attractive for established large players. Impact on Risk Parameters Sl. No. Identified Barriers Technical Commercial Regulatory Manufacturing & Scale up Site related & Timeline Quality, Safety & Reliability Indigenisation Investment Environmental & Social Skill 34. Warranties: 1. Material reliability. 2. The terms of PBG upto 10 years with LD clauses is not viable for float manufacturers. 3. Lack of back-to-back warranties for lifetime performance of floaters from raw material or finished product manufacturers, leading Yes Yes Yes Yes to contractor having high risk exposure disproportionate to rewards. 4. Warranty is one of the biggest barriers for the manufacturer. 5. Manufacturers will not get warranty for the raw material from the master batcher. 35. Cost of transportation. Yes Yes Yes Yes 36. Tender requirements limiting flexibility to Yes Yes Yes Yes developers. 37. 1. Reliability of existing wind data due to quality and maintenance issues of meteorology equipment used. Yes Yes Yes Yes 2. Available data (15 years probably) is not sufficient to predict 50-year return period. 38. Lack of funding for research on materials, Yes Yes Yes Yes Yes recycling etc. Mapping of The Value Chain and Identification of Barriers Impact Score of each Risk Parameter 23 32 7 25 17 23 4 23 5 12 • 37 The “impact score” of each risk parameter Figure 2.4. As can be discerned, “commercial,” was then calculated. For instance, the risk “manufacturing and scale up,” “quality, safety parameter “Commercial” had an impact score of and reliability”, “technical” and “investment” 32, indicating that 32 out of the 38 identified risks have a wider impact across the value barriers were susceptible to this risk. The chain. These barriers are also the main result of the assessment is presented in influencers on the cost of FSPV projects. Figure 2.4: Result of assessment 38 36 34 32 30 28 26 24 22 Impact score 20 18 16 14 12 10 8 6 4 2 0 Site related & Timeline Commercial Technical Investment Skill Regulatory E&S Indigenisation Quality, Safety & Reliability Manufacturing & Scale up Risk parameter 2.3. Recommendations implementation and the quantification of impact on levelized cost of energy (LCOE) wherever Based on the analysis of barriers and their possible. The quantification of LCOE is mainly impacts on various risk parameters, various indicative to highlight the importance of each recommendations are provided for mitigation. recommendation; however, the impacts of Table 2.10 presents a summary of the recommendations are not mutually exclusive. recommendations to be implemented in the The assumptions indicated in Table 2.11 were short term (1-3 years) along with the expected considered for the LCOE calculations. positive impacts, stakeholders responsible for 38 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Table 2.10: Summary of recommendations Recommendation Barriers addressed Responsibility Drivers Expected Positive Impacts Likely impact on LCOE Setting of targets Technical/Commercial/ MNRE/State ƒƒ Clearly articulated targets ƒƒ Commitments on Up to 21 percent with at least 1-year Policy and Regulatory/ Nodal agencies/ for FSPV in the NSM with manufacturing (Construction time: tender-calendar Manufacturing and SECI/MoEFCC timelines for tendering infrastructure and ~3 percent, CAPEX: scale up/Indigenization/ and implementation investment from ~14 percent, OPEX: Investment industry ~4 percent) ƒƒ Formulation of specific guidelines and regulatory ƒƒ Cost optimization and process for deployment of lower tariff due to likely FSPV projects, including economies of scale ESIA ƒƒ Establish new test laboratories for structural and material testing. Roadmap studies Technical/Commercial/ MNRE/SECI/State ƒƒ To identify long term ƒƒ Long term investment Up to 18 percent & resource Manufacturing and scale nodal agencies/ commercial potential of ƒƒ Research and (CAPEX: ~14 characterization up/Site related and National Institute FSPV percent, OPEX: ~4 innovation and prioritization timeline/Indigenization/ of Solar Energy percent) ƒƒ To conduct pre- ƒƒ Lower discovered tariff for FSPV Investment (NISE) feasibilities and survey ƒƒ Streamlined and of most suitable & less planned development complex 7-10 GW of sites (prioritization of ƒƒ Enable more players waterbodies) to be and positive competitive developed in next tension 3 years ƒƒ Enabling quality and ƒƒ Standardization of uniformity of studies technical requirements of surveys and identification of approved service providers Mapping of The Value Chain and Identification of Barriers • 39 40 • Recommendation Barriers addressed Responsibility Drivers Expected Positive Impacts Likely impact on LCOE ƒƒ To include different types of waterbodies to enable different business models and provide space to small players Plug and play Technical/Commercial/ SECI/State nodal ƒƒ Development risks of ƒƒ Scale-up and ramping Up to 21 percent model for large Policy and Regulatory/ agencies approvals, clearances, up of local capacities (Construction scale projects in the Manufacturing and interconnection etc. are time: ~3 percent, ƒƒ Minimum critical scale line of solar park21 scale up/Indigenization/ mitigated (equitable CAPEX: ~14 for viability of the with at least 1-year Investment distribution of risks to the percent, OPEX: ~4 tender-calendar ecosystem percent) most suited actors) ƒƒ Supports certification ƒƒ More attractive to players and standardization resulting in CAPEX and ƒƒ Enable infusion of large- OPEX optimization. scale investments ƒƒ Size favourable for large scale investment in manufacturing, new test laboratories and risk mitigation Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Development of Technical/Commercial/ NISE/Bureau of ƒƒ To form a committee ƒƒ Optimized design and Up to 18 percent standards and Quality, Safety and Indian Standards consisting of key procedures (CAPEX: ~14 guidelines Reliability/Investment (BIS)/MNRE stakeholders for percent, OPEX: ~4 ƒƒ Assurance of controlled Certification of necessary customization, percent) risks to investors, components and adoption and regular system insurers and other updating of standards stakeholders and hence and guidelines developed more accessibility to by DNV and other capital agencies 21 MNRE has granted approval to 6 floating solar parks of cumulative capacity 1805 MW. Recommendation Barriers addressed Responsibility Drivers Expected Positive Impacts Likely impact on LCOE Single & Reliable Technical/Commercial/ NISE/BIS/MNRE/ ƒƒ To have a dedicated ƒƒ Scale-up Up to 18 percent Source of Quality, Safety and SECI webpage for FSPV to ƒƒ Entry of more players (CAPEX: ~14 Information & Reliability/Indigenisation provide all the necessary percent, OPEX: ~4 (parallel industries) for its dissemination information to parallel percent) innovation through regular sectors workshops and ƒƒ To develop competitive other outreach ƒƒ To provide guidance landscape programs such as documents to key stake- newspapers holders Facilitate Commercial/Policy SECI/MNRE/ ƒƒ To develop guidelines ƒƒ Democratisation of Up to 14 percent on development of and Regulatory/ Central Electricity and regulatory process sector CAPEX FSPV projects Indigenisation/ Regulatory for deployment on small ƒƒ Solarisation of rural through different Investment Commission waterbodies where the areas business models (CERC)/State water surface can be (e.g., RESCO Electricity ƒƒ Conservation of water, leased to the developer model). Regulatory waterbodies and water Commission table (SERC) Separate credit line Commercial/ IREDA and Banks ƒƒ To provide exclusive ƒƒ Working capital for Up to 14 percent on for FSPV in the line Manufacturing and credit line for FSPV with scale-up and innovation CAPEX of rooftop solar scale up/Indigenisation/ clear guidelines and ƒƒ Promotion of local start- Investment simple procedures (easy up, innovation, and access) customization ƒƒ To provide debt and working capital to float manufacturers Development Technical/Commercial/ NISE/BIS/MNRE ƒƒ To provide basic ƒƒ Standardization of Up to 4 percent on of Testing Quality, Safety and guidelines for testing testing OPEX infrastructure Reliability/Investment ƒƒ To enrol certifying bodies ƒƒ Enhanced reliability authorized for testing of ƒƒ Possibility of more materials of floats and investment formulation of specific Mapping of The Value Chain and Identification of Barriers standards • 41 42 • Recommendation Barriers addressed Responsibility Drivers Expected Positive Impacts Likely impact on LCOE Skilling and Skill Skill Council ƒƒ To constitute a committee ƒƒ Availability of key skilled Up to 21 percent Capacity Building for Green Jobs/ of key stakeholders workforce (Construction Ministry of Skill (key industry players) time: ~3 percent, ƒƒ Scale-up Development to frame necessary CAPEX: ~14 ƒƒ Industry participation percent, OPEX: ~4 training curriculum and and commitment percent) certificates ƒƒ To regularly update the curriculum to ensure relevance Gender and Skill NISE, BIS, Skill ƒƒ To undertake an audit ƒƒ Access to large potential Nil. Diversity Inclusion Council for Green of guideline, training workforce Jobs curriculum and guidance ƒƒ Access to localized and documents to ensure diverse resources gender & diversity ƒƒ Innovation due to inclusion & neutrality diverse experience in (female workforce, rural the workforce workforce etc) ƒƒ Localization and ƒƒ To modify and exclude customization any inherent & subtle Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 bias (e.g., pictures of only men with safety harness in the instruction sheet) ƒƒ To provide positive incentive for wider participation (e.g., less fees for training) Recommendation Barriers addressed Responsibility Drivers Expected Positive Impacts Likely impact on LCOE R&D Technical/Commercial/ MNRE, NISE, ƒƒ Research funding to ƒƒ Risk mitigation for long Up to 18 percent Quality, Safety and Department of assess the long-term term green investment (CAPEX: ~14 Reliability/Investment/ Science and impacts of the floating percent, OPEX: ~4 ƒƒ Cost reduction due E&S Technology PV installation on the percent) to innovation and biodiversity of the customization waterbody ƒƒ Research funding to promote innovation and customization ƒƒ Funding for research on reliability of engineering plastics used for floats Upscaling of Technical/Commercial/ Ministry of ƒƒ Removal of Basic Custom ƒƒ Rapid ramp up of Up to 21 percent Manufacturing Policy and Regulatory/ Finance, Nodal Duty (7.5 percent) on manufacturing capacity (Construction Manufacturing and agencies import of Blow Moulding ƒƒ Optimization of time: ~3 percent, scale up/Indigenization/ Machines for float CAPEX: ~14 transportation cost and Investment manufacturing percent, Savings in timelines transportation: ƒƒ Establishment of ƒƒ Local employment ~1-4 percent) manufacturing facility generation near project sites can be facilitated through creation of specific infrastructure and single window clearance mechanisms. Mapping of The Value Chain and Identification of Barriers • 43 Table 2.11: Fixed assumptions for LCOE calculations22 Assumption Head Sub-head Unit Parameter Power Generation Installed Power Generation MWp 100 Capacity Useful Life Years 25 Annual system degradation rate Percent 0.64 Financial Assumption Tariff Period Years 25 Debt Percent 70 Equity Percent 30 Debt Term Years 15 Interest rate Percent 10 Discount rate/Weighted Average Percent 7.5 Cost of Capital Depreciation rate for 1st 15 Percent 4.67% years23 Depreciation rate 16th year Percent 2% onwards24 Total depreciation over 25 years Percent 90% Corporate Tax Percent 30 Plant Residual value Percent 10 O&M Expenses Normative O&M expense per INR Lakh/MWp 4 annum Waterbody leasing per annum INR Lakh/MWp 0.7 Escalation Factor Percent per annum 3.84 22 All assumptions are for the purpose of illustration only and may be revised based on the contemporary market scenario. For the purpose calculation, the assumptions are based on best available data at the time of compilation. 23 Assumption as per CERC RE Tariff Order for FY 2021-22. 24 Assumption as per CERC RE Tariff Order for FY 2021-22. 44 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Table 2.12: Variable assumptions for LCOE calculations Sl. Sub-head Drivers for the target Unit Base Target LCOE No. impact 1. Alternating Current (AC) Learnings from field data input into Percent 23 25 8% Capacity Utilization simulation process Factor (CUF) 2. Construction time Visibility of volume, innovation, Months 24 12 3% standardisation, enhanced manufacturing capacity, manufacturing close to site etc 3. Capital cost25 Visibility of volume, innovation, INR 42 35 14% standardisation, enhanced Rs/Wp manufacturing capacity etc 4. Savings in Manufacturing facility 42 40.2 4% transportation (base <250 km from project location case of >1000km)26 Manufacturing facility 250-500 km INR 42 40.7 3% from project location Rs/Wp Manufacturing facility 42 41.4 1% 500-1000 km from project location 5. OPEX27 Visibility of volume, design INR 4 2.5 4% optimisation and reliability testing Lakh/ MWp 25 Base capital cost derived from stakeholder consultations and publicly available information, primarily for controlled waterbodies (e.g., small ponds and reservoirs of thermal power plants) with water depth <10 m and water level variation within 5 m. Target is the current CAPEX level of ground mounted installations. 26 The base indicated is the system CAPEX considering >1000 km distance to manufacturing plant. Target is the expected system CAPEX with savings in transportation cost as the manufacturing facility is moved closer to the project location. 27 Base OPEX derived from stakeholder consultations, primarily for controlled waterbodies (e.g., small ponds and reservoirs of thermal power plants) with water depth <10 m and water level variation within 5 m. Target is the current OPEX level of ground mounted installations. Mapping of The Value Chain and Identification of Barriers • 45 3. Benchmarking the FSPV ecosystem in India against international practices 3 Benchmarking the FSPV ecosystem in India against international practices An FSPV, installed over an underutilized water PV plant.31.This, on one hand opened new body, apart from providing additionality in avenues where underutilized surface area of energy generation28 (Liu, Krishna, Leung, water bodies that could be tapped to generate Reindl, & Zhao, 2018) also overcomes some of power such as HPP reservoirs, thermal power the limitations of conventional ground mounted plant (TPP) reservoirs and natural and human- solar PV power plants29 (Rosa-Clot & Tina, made lakes. The availability of water bodies 2018). FSPVP technology, based on learnings defines the various business models that can from installed projects and buttressed by a be adopted, and a few initial plants have been combination of standardization, innovation, summarised in Table 3.1. and reduction in costs, is rapidly approaching • FSPV on hydropower plant reservoirs maturity. As a result, there has been an increase can enhance utilization of existing in the number of installed projects world over infrastructure, provide additional revenue, dominated by projects in developing countries prevent water evaporation. (~ 90% of the top 50 FSPV, are in Asia). This • FSPV on TPP reservoirs can enhance has been driven by [a] availability of under- revenue stream, fulfil auxiliary power utilized water bodies30; [b] high opportunity demand, and reduce evaporation losses. cost of equivalent land; and [c] avoidance of land acquisition. • FSPV on lakes can provide revenue stream to local bodies and ensure upkeep The genesis of FSPVP was based on the of lakes. It can also support remote rural idea of avoiding the use of land, which has a areas with a possibility of off-grid or mini high opportunity cost, for setting up a solar grid solutions. 28 PV modules, by virtue of being in close proximity with water stay relatively cooler due to the effect of evaporative cooling. Based on the temperature coefficient of the specific PV module used, this can translate into energy gains vis-à-vis a conventional ground mounted or rooftop solar PV power plant. The gains due to evaporative cooling can however be offset by the lower tilt angle of a FSPV. Hence, a combination of factors – [a] evaporative cooling; and [b] inclination angle of solar PV module determines the net benefit. 29 The benefits include reduced land usage, less shading, less soiling due to dust, reduction of evaporation loss and large potential. 30 Such as regular in-land water bodies, sand extraction lakes, hydropower dams, water reservoirs, flooded mining subsidence, fishery lakes and near-shore waters. 31 With time, in addition to reduced land usage, multiple co-benefits have been identified, which include reduction in temperature loss, relatively lower near shading losses, lower soiling due to dust, access to grid, reduction in algae growth, application along with aquaculture and fish farming, inter alia (Liu, Krishna, Leung, Reindl, & Zhao, 2018). Benchmarking the FSPV ecosystem in India against international practices • 49 Table 3.1: Summary of Business Models in Initial Projects Country Status Solutions offered by integrating FSPV Background with available water bodies Brazil Planned The deployment of floating solar plant Capacity to store water in reservoirs in the dam of a reservoir compensates of HPPs has declined, due to the the unstable generation of these increased Brazilian electricity systems by adjusting hydropower consumption and more stringent output. environmental conditions for flooding FSPV systems can compensate for the areas leading to increased risk of power hydropower energy deficiency in mid to deficit in case of prolonged water long term. shortage. A co-located solar component of generation can increase the dispatchable energy production, making better usage of the HPP’s electrical grid connection. Installing 34 GW of FSPV on roughly 2.2 percent of total water surface of hydropower reservoirs can increase energy production by 53.3 TWh per year which is approximately 14 percent of Brazil’s generation from hydropower. Portugal Operational With 840 solar panels occupying an HPPs located in the vicinity of area of 2,500 square metre, the plant reservoirs have a connection to the has installed capacity of approximately power grid that is underutilized as the 220 kWp and estimated annual output seasonality of rainfall means that the of around 300 MWh. installed capacity cannot be occupied The platform generated net output continuously. 5 percent higher than forecast, an This technology offers many increase of 15 MWh. environmental advantages related Alto Rabagão reservoir was chosen to the protection of the underwater for FSPV deployment because of the environment from solar radiation, availability of space and the adverse with less proliferation of algae and, climatic conditions that enabled the therefore, a lower eutrophic effect and technology to be tested in extreme fewer emissions of greenhouse gases. conditions. It also has a deep valley with rocky soil and significant height variations which meant that the mooring solutions could be tested, with positive performance when the water level dropped. The FSPV plant was also able to withstand a harsh winter, with swell of about one metre, low temperatures and snowfall. 50 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Country Status Solutions offered by integrating FSPV Background with available water bodies Pakistan Planned The University of Lahore scientists It was observed that the cost of modelled the implementation of FSPV connecting FSPV to the grid accounts at the 1.45 GW Ghazi Barotha Dam, for about 25 percent of total which features five generating units project cost. However, that shrinks with around 290 MW of capacity each. considerably when such projects To cover daytime peak loads, installing use the existing infrastructure of a 200 MW floating system on the dam's hydroelectric dams. reservoir could replace one of the five generating units if water levels are low. The researchers noted that Pakistan suffers frequent outages due to peak load hours during the day. Therefore, FSPV was adopted to work like a peaker plant. China Operational The 40 MW FSPV is located in Huainan The plant was built by Sungrow Power, city in Anhui province of China. The who converted abandoned flooded array of solar PV modules floats on an opencast mine in Anhui province. artificial lake, created on the site of a Establishing FSPV over abandoned coal former coal mine. mines allows for productively utilizing an otherwise unsuitable site. While providing clean energy, it also offers employment to the local population, which would otherwise be completely dependent on coal mining. Germany - According to an assessment by the Fraunhofer Institute for Solar Energy Systems ISE, Germany's exploitable FSPV potential at opencast mines is set at 2.74 GWp70. 3.1. Approach & Methodology • Driver identification: Key drivers that promote installation of FSPV in those To benchmark the floating solar ecosystem countries were identified. in India, certain international markets were shortlisted. The shortlisted markets were then • Evaluation of technical capabilities: studied for these specific areas: Some countries have more success than others with certain technology and • Policy & Regulatory Ecosystem analysis: therefore have superiority in areas of the How attractive does the government value chain that use that technology. make FSPV projects—incentives Hence, the technical capabilities of offered by the government, government shortlisted countries were evaluated. intervention to create efficient value chain and key practices being followed. • Evaluation of major projects: Countries are following diverse market mechanisms • Risk mitigation: Steps taken by the to promote FSPV. Different projects were government of that country to mitigate evaluated to identify key takeaways. merchant risk/offtake risk. Benchmarking the FSPV ecosystem in India against international practices • 51 • Make vs buy strategy for components: following sub-sections delve into each of the Countries are growing in terms of three countries. manufacturing capacity of solar panels as well as floaters. The manufacturing capability and amount invested in the 3.2.2. Japan import of components was studied for In Japan, 210 MW of floating solar projects each country. have been installed and another 52 MW is in • R&D activities: Countries across the the pipeline. The key drivers for adoption of globe are actively involved in R&D floating solar in the country are: activities. The key breakthroughs in the 1. Policy driver for Renewable Energy (RE): In R&D sector for floating solar was studied Japan, the Ministry of Economy, Trade and for the shortlisted countries. Industry (METI) has jurisdiction over a broad policy area concerning Japan’s industrial/ Apart from countries shortlisted for study, best trade policies, energy security, control of practices followed under different parameters by arms exports and the like. It is responsible different countries were also investigated. For for securing stable and efficient supplies of example, while China and Singapore are not on energy and mineral resources. Furthermore, the shortlist, they are relatively focusing more METI shapes policies for international trade on certain parameters such as R&D or technical and investment, Abenomics structural standards. reforms, and energy. It drafts and amends legislation while enforcing and administering existing laws and regulations. METI and 3.2. Benchmarking its affiliated agency, the Agency for Natural Benchmarking has been done against three Resources and Energy, establish RE countries—Japan, Netherlands and Vietnam. policies and incentives, including the FiT The rationale for selecting these three countries programme, at the national level. In Japan, is given in Appendix C. This section delves into by 2019, around 97.5 GW of RE capacity the practices in each of these countries with was achieved34 (Solar – 78.5 GW; hydro respect to the areas specified in Section 3.1. – 28 GW; wind - 3.8 GW; bioenergy – 3.2 GW; geothermal – 0.5 GW). 2. High potential for RE: Owing to the high 3.2.1. Introduction to the Shortlisted potential of RE, in 2030, METI expects Countries renewable energy to account for 36%- The three shortlisted countries (from a list of 38% of the country’s energy mix for power nine countries presented in Appendix C) have generation in Financial Year (FY) 2030-31 - great solar potential and the common driver of with the 1% introduction of green hydrogen/ land scarcity. Furthermore, if the top 50 FSPV ammonia and 20%-22% of nuclear power – projects (by capacity) are considered at a global totalling 57%-61% of the non-fossil fuel level, these three countries have the highest power supply (S&P Global, 2023). installed capacity32 after China. The shares 3. Land resource constraints: Japan faces of global installed capacity (excluding China) the constraint of limited ground space, a are 31.8 percent in Vietnam, 21.5 percent in key driver for the country to switch from Netherlands and 12.8 percent in Japan33. The large-scale ground PV systems toward 32 SolarPlaza. (2021, February). Top 50 Operational Floating Solar Projects 2021. 33 SolarPlaza. (2021, February). Top 50 Operational Floating Solar Projects 2021. 34 IRENA. Energy Profile Japan. www.irena.org. https://www.irena.org/IRENADocuments/Statistical_Profiles/Asia/Japan_Asia_RE_SP.pdf 52 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 floating solar. Furthermore, installation of on irrigation reservoirs must also comply with solar panels on water can mitigate land the Basic Law on Food, Agriculture, and Rural cost and the need for excavation. However, Areas. In addition, environmental approvals these costs are replaced by waterbody lease are also required. Furthermore, as illustrated charges and the cost of dredging. in Figure 3.1, for procurement by electricity retailers, the purchase price and purchase 3.2.2.1. Policy and Regulatory Ecosystem period are set by the METI annually or, at the discretion of the METI, semi-annually, for For installation of FSPV plants in Japan, each category, depending on the configuration construction plans must be filed in advance of installation and scale of RE generation with METI. In addition, apart from METI, facilities. authorization is required from local power utility for FSPV projects to enter into a power In Japan, FiT was introduced in 2012, under purchase agreement (PPA) under the Feed-in the Act on Special Measures Concerning Tariff (FiT) programme. A renewable power the Procurement of RE by Operators of producer must fulfil certain requirements in Electric Utilities35,36. Japan’s percentage of relation to grid connection, such as consent to electricity generated by renewables in total the output curtailment rule. FSPV projects built power generation increased from 10% in Figure 3.1: Mechanism of power procurement by electricity retailers in Japan Renewable energy Electric utility Sell RE power producers Purchase electricity at fixed tariff Purchase Purchase price period Japanese Government METI Legend Electricity flow Monetary flow Information flow 35 Government of Japan. (2011). Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities (Act No. 108 of 2011) (2016 Ed.) | ESCAP Policy Documents Management. https://policy.thinkbluedata.com/ node/1316 36 METI. (2016). Promulgation of the Partial Revision of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities (METI). https://www.meti.go.jp/english/press/2020/0225_001.html Benchmarking the FSPV ecosystem in India against international practices • 53 FY2011 to 18% in FY2019 thanks to the FiT The FiP program will allow power producers scheme that was introduced in July 2012. to freely sell generated electricity to wholesale With the reduction of capital cost, the cost of electricity trading markets or through direct generation decreased and hence FiT decreased negotiation. This will guarantee such power as well. The price difference between the producers investment incentives by enabling expenditure for renewable electricity under them to receive a certain premium on top of FiT and the procurement cost for conventional the market price for the electricity that they electricity (avoided costs) is filled using the generate. The premium will be equivalent to surcharge collected from electricity consumers the price difference between the FiP price and (FiT surcharge) (Refer Figure 3.2). Due to this the electricity market reference price. METI increased burden on consumers, Japan has will be responsible for determining the method decided to introduce the Feed in Premium (FiP) for calculating the premium and the period for program. which it will be granted. Under the amended RE Act of 2020, the FiP Incentives mechanism will be introduced for certain types For FSPV systems under 2 MW, Japan and sizes of RE generation in 2022. Although provides incentives in the form of FiT. The the details of the applicable technologies FiTs for solar PV (including rooftop, ground and capacities have not been announced, mounted and floating solar projects), for the FiP is expected to be applicable to large- 2020 Japanese Financial Year (JFY2022) are scale solar power and wind power projects. given below37: Figure 3.2: FiT mechanism in Japan Renewable energy Sell RE power Electric utility Electricity supply End user producers Purchase Electricity charge electricity at fixed tariff set by METI FiT surcharge Determine tariff and Determine contract Japanese Government FiT period surcharge METI Legend Electricity flow Monetary flow Information flow 37 Colthorpe, A. (2020, February 6). Japan sets feed-in tariffs for the 2020 Japanese FY. PV Tech. https://www.pv-tech.org/japan-sets- feed-in-tariffs-for-the-2020-japanese-financial-year/ 54 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Table 3.2: FiT per kWh for solar projects in Japan Several risks were identified: System size Feed-in tariff per Mandate of signing completion bond: In kilowatt-hour Japan, there are two types of commitment Below 10 kW 17 yen (US$ Ct 14.7) bonds: a bid bond to ensure contract signing, and a completion bond to ensure project Between 10 kW and 50 kW 11 yen (US$ Ct 9.6) implementation. The bid bond requirement Between 50 kW and 250 kW 10 yen (US$ Ct 8.7) in Japan is 500 yen/kW ($4.5/kW) and the main criteria for its confiscation include failure For FSPV projects above 250 kW and up to sign the contract and/or evidence of bid- to 2 MW, the winning bid receives FiT rigging. The bid bond is usually counted toward certification, and the bid’s pricing becomes the the completion bond or returned if the project official FiT (or purchasing price). is not awarded. However, the completion bond, is 10 times higher than the bid bond at 5,000 yen/kW ($45.3/kW). 3.2.2.2. Key Projects Deployed and Major Developers Investor’s revenue loss due to curtailment of power generation: The Electricity Power Most areas in Japan that are suitable for large- Companies can curtail power generation scale solar power plants are already being from renewable power plants without utilized or being planned for use. This section compensation, for up to 360 hours a year discusses the mechanism of public procurement for PV plants. This potential risk of losing adopted for FSPV projects, key projects revenues for investors can translate to the deployed, and major developers in Japan. total cost of the projects, which may lead to Mechanism of public procurement increase in the bid prices. In Japan, the public procurement is generally Risks associated with currency exchange through auction. The framework for auctions in rates and inflation: Exchange rates and Japan is given in Figure 3.3. inflation can have a considerable impact on Figure 3.3: Framework for RE project auctions in Japan38 Auction demand Winner selection and contract award process Choice of the auctioned volume, how it is divided A sealed-bid procedure is followed, winner among different RE technologies and project selection is based only on price and contracts sizes, and the auction category. are awarded Framework of auctions in Japan Qualification requirements and Risk allocation and remuneration of sellers documentation Minimum requirement for participants in the Types of risks among stakeholders and rules auction and necessary documentation to ensure timely implementation of awarded projects 38 IRENA. (2021). Renewable Energy Auction in Japan: Context, design and results. https://www.irena.org/publications/2021/Jan/ Renewable-energy-auctions-in-Japan Benchmarking the FSPV ecosystem in India against international practices • 55 the viability of a project which is supposed to Ichigo obtained independent confirmation from operate for a long time. the Japan Research Institute (JRI) that the bond complies with the Green Bond Principles40 Key FSPV projects in Japan issued by the International Capital Market In 2007, the world’s first floating solar plant Association and the Green Bond Guidelines was built in Japan, in Aichi Prefecture in 201741 issued by Ministry of the Environment, central Honshu. Furthermore, till early 2019, Japan. JRI is a company which performs three 73 of the 100 largest floating projects were key functions - information systems, consulting, based in Japan. As per SolarPlaza’s report and think-tank. The certification from JRI Top 50 Operational Floating Solar Projects enabled smooth approval process for the 202139, the 10 largest operational FSPV project. plants in Japan have capacities in the range of 2 MW to 14 MW with an average capacity In Japan, FSPV projects are generally developed of 5 MW. by private players on government waterbodies and the power is sold to local utilities. This Most of Japan’s FSPV plants are primarily study identified two projects that differ by type located in the western part of the country of waterbody. because installers can take advantage of the area’s many reservoirs and accessible grid FSPV plant on a dam reservoir (public connections. The north part of the country waterbody): Kyocera TCL Solar (a private receives heavy snow in winter. company) started operation of the company’s largest 13.7 MW floating solar plant, located Different modes of financing were evaluated, on the Yamakura Dam reservoir in Ichihara, and a project identified to be financed via green Chiba Prefecture. The plant was constructed bonds. In April 2020, the Ichigo Kasaoka over the surface of the reservoir, which is Osakaike ECO Power Plant began operation managed by the government water utility, as a floating power plant on an agricultural Waterworks Bureau of Chiba Prefecture, for reservoir in Okayama Prefecture. The 2.66 MW its industrial use. The project used Hydrelio plant consists of 7,000 panels, covers an area technology by Ciel & Terre. All power generated of 122,000 square meters, and is estimated to is sold to Tokyo Electric Power Company (public provide enough power for 1,110 households. electric utility). Figure 3.4: Green bond financed FSPV plant in Japan Green bonds Finance Confirmation that the bond complies with the Ichigo Green Bond Principles Japan Research Institute Operates the FSPV plant (JRI) 39 Solarplaza. 2021. Solarplaza | Top 50 - Operational Floating Solar Projects. 40 For more details: Green Bond. 41 Green Bond Guidelines, 2017 | Environmental Policy | Ministry of the Environment, Government of Japan. 56 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Rationale for Green Bond Issuance by Ichigo ECO On July 25, 2019, Ichigo decided to issue a green bond to grow its clean energy business and further contribute to the company’s goal of building a more sustainable society. The green bond issued by Ichigo ECO Energy (“Ichigo ECO”) funded six Ichigo solar power plants. The proceeds from the green bond were used to pay for the refinancing and construction of the six solar power plants, five of which were already in operation, and one was under development. Green Bond Market in India In India, the first green bond was issued by Yes Bank in 2015. Further, the Indian green bond market observed these key milestones: • In 2018, SBI entered the Green Bond market with a $ 650 million certified climate bond. • In the first half of 2019, India became the second-largest Green Bond market globally after China with $10.3 billion worth of transactions. • In October 2019, India joined the International Platform on Sustainable Finance to scale up environment-friendly investments. However, despite achieving these goals, the Indian Green Bond market hasn’t been able to diversify regarding assets, which remain focused on renewable energy projects. Since 2018, green bonds have constituted only 0.7 percent of all the bonds issued in India. Further, as of March 2020, bank lending to non-conventional energy projects constituted about 7.9 percent of outstanding bank credit to the power sector. In November 2022, the Government of India launched the framework for Sovereign Green Bonds. It successfully raised INR 8000 crore ($980 million) in the first issue of the sovereign green bonds in January 2023. Sources: Verma, I. (2021, May 13). Sustainable Finance Through Green Bonds. Outlook Money. https://www.outlookindia.com/ outlookmoney/opinions-and-blogs/sustainable-finance-through-green-bonds-7221 Javaid, A. (2021, January 29). What are Green Bonds? Jagranjosh. https://www.jagranjosh.com/general-knowledge/ green-bonds-1611908611-1 Figure 3.5: Kyocera’s 13.7 MW FSPV plant on a dam reservoir Operates the plant Manages the reservoir Kyocera TCL Chiba Solar Prefecture FSPV Plant Sale of power generated TEPCO FSPV plant on an irrigation pond: JFE irrigation pond. The plant is owned by Plant Engineering, a Japan-based EPC Energy Bank Japan and Ciel & Terre provided provider, constructed the Hyoshiga Ike its patented floats (Figure 3.6). The plant FSPV plant with 2.7 MW capacity, on an provides electricity for utility use. Hyoshiga Benchmarking the FSPV ecosystem in India against international practices • 57 Typhoon Faxai caused the 2019 fire at the FSPV plant on Yamakura Dam, Japan On September 9, 2019, the FSPV plant caught fire after Typhoon Faxai’s impact. METI investigated and discovered the reasons behind the fire: • Aquatic level and mooring wire tension: It rained heavily on the day of the typhoon, which caused the water level in the lake to reach around its maximum level of 37.5 m. The installed mooring lines were under tension due to the high water level. The tension on the lines allowed the forces from the oscillating movement caused by wind and waves to dissipate to the anchors more directly. • Shape of the plant: Anchors were attached around the perimeter of the island, with mooring wires connected only to the outermost floats. The floats behind the fixed row were attached with resin bolts. Each row picked up wind forces, which accumulated into the first bolt. • Anchor failure: The Yamakura Dam array had 112 anchors on the northern end, 107 on the western side, and 133 on the eastern edge, but only 68 anchors on the southern perimeter, where the anchors failed. The typhoon exceeded the standard technical assumptions set out when the site was designed. • Bolts and uplift: After the anchors failed, the resin bolts started to collapse, because the wind loads were now dissipated more unevenly. After each collapsed bolt, the loads on the adjacent ones increased, causing a chain reaction. In this way, the array was ripped into three parts. • Fire: The outermost floaters of floating PV installations are usually ballasted with water, to prevent uplift in windy conditions—a phenomenon that has been observed in the past. When the array was ripped apart, the wind-facing edge did not have any ballasted floats anymore. The installation then began to curl up, and mangled modules and other equipment started to short circuit, causing the electrical fire. The findings of the investigations can be useful in designing floating solar systems which can withstand such storms or typhoons. Source: Willuhn, M. (2020, February 22). The weekend read: Don’t throw caution to the wind. pv magazine International. https://www.pv-magazine.com/2020/02/22/the-weekend-read-dont-throw-caution-to-the-wind/ Ike can generate 3.14 MWh, equivalent to Major developers in Japan around 872 residential electricity annual Ciel & Terre is the biggest installer in the consumption. Japanese FSPV market. Its projects are In countries, such as India, with abundant mainly located in the western part of Japan presence of irrigation ponds, FSPV projects can due to availability of many reservoirs in that be developed over such waterbodies. area. Another major developer is Mitsui Figure 3.6: FSPV plant located on an irrigation pond in Japan Constructs the plant Provides floats JFE Plant Engineering Energy Bank Japan Ciel & Terre Owns the plant Sale of power generated Local utility 58 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Sumitomo Corporation, which provides floating temperatures (lower temperature coefficient), structures for 60 and 72 solar cells panels for better tolerance for shadows, and higher the domestic market and is also working on guaranteed performance during longer periods. overseas expansion to other Asian countries. Some examples are Panasonic’s HIT technology (heterojunction solar cell with a bifacial structure), Solar Frontier’s Copper Indium 3.2.2.3. Research and Development (R&D) Selenium technology, and Sharp’s black solar Activities modules. In a study in Hyogo Prefecture, local authorities concluded that solar panels on water generated 14 percent more power than those placed on 3.2.2.4. Make vs Buy Strategy for the rooftop of an office building due to the Components cooling effect that the water has on the panels The major module and float manufacturers or that makes them work closer to their ideal suppliers in Japan are given in Table 3.3. temperature. For FSPV projects, Kyocera leads the solar PV The largest Japanese companies, such as module suppliers in Japan, followed by the Kyocera, Panasonic, Solar Frontier, Sharp, Chinese Yingli Green Energy. Other prominent and Kaneka are developing high efficiency players include Jinko Solar, Sharp, and solar modules, with higher outputs at higher Trina Solar. Table 3.3: Component manufacturers or suppliers in Japan Component Home Country Company Solar modules Japan Kyocera Panasonic Toshiba Sharp Kaneka Solar Frontier XSOL China Yingli Green Energy Jinko Solar Trina Solar JA Solar Risen Energy South Korea Hanwha Q-CELLS Canada Canadian Solar Floats Japan Sumitomo Mitsui Construction Kyoraku France Ciel & Terre China Mibet Energy Sungrow Benchmarking the FSPV ecosystem in India against international practices • 59 Foreign companies such as Hanwha Q-CELLS, in the pipeline. The key drivers for adoption of Jinko Solar, Canadian Solar, JA Solar, Yingli floating solar in the country are: Green Energy, Trina Solar, and Risen Energy 1. High potential for solar energy: also operate in the country. Netherlands is a country with a huge potential for solar PV. In 2021, the About 60 percent of the PV modules used installed capacity of solar energy was in the country are produced by Japanese 14.30 GW, which accounted for around companies. However, these companies 60 percent of the country’s renewable (e.g., Kyocera, Panasonic, Sharp and Kaneka) installed capacity44,45., In addition, as produce only 55 percent of their products per the Netherlands Environmental within the country with the remaining Assessment Agency, by 2030, the 45 percent produced overseas. The balance country is expected to witness another 40 percent of the modules used in Japan are 12 GW, bringing the total capacity to produced by foreign companies in overseas approximately 27 GW46. countries. The South Korean Hanwha Q CELLS leads Japan’s imported solar panel market. 2. Easy availability of waterbodies: To achieve the expected solar capacity, the The import figures for PV cells (whether Government of Netherlands considers assembled in modules or made up into panels) that floating solar has an important role stood at $3.03 billion in 2018, $2.88 billion in to play. With plenty of inland water in 2019 and $2.50 billion in 2020.42,43 the form of lakes, canals and old sand pits, the Dutch geography is suitable for Ciel and Terre has a manufacturing facility floating solar. in Japan, and it has provided floats for FSPV 3. Policy driver: A consortium of national projects with a cumulative capacity of around and local governments, Dutch companies, 100 MW—approximately 50 percent of the knowledge institutes, and water FSPV installed capacity in Japan. Other float authorities have announced a target to manufacturers in Japan are Sumitomo Mitsui achieve 2,000 hectares of floating solar Construction (which has provided floats for a farms by 202347. cumulative FSPV capacity of 6 MW) and Kyoraku (which has provided floats for a cumulative FSPV capacity of 5 MW). China-based manufacturers 3.2.3.1. Policy and Regulatory Ecosystem of floats, such as Mibet Energy and Sungrow, also The permission and approval process for supply their products in Japan. FSPV projects consists of identification of type of ownership of water surface, permits 3.2.3. Netherlands (such as environmental and water permits), adherence to building code requirements In Netherlands, 52 MW of floating solar projects and several other permits (such as license to have been installed and another 500 MW is generate, license to operate, and license to 42 (2020, October 1). www.customs.go.jp. https://www.customs.go.jp/english/tariff/2020_10/data/e_85.htm 43 Trade Statistics Data for Japan Values by Commodity Import. (2021). https://www.e-stat.go.jp/en/stat-search/files?page=1&layout=d atalist&toukei=00350300&tstat=000001013141&cycle=1&tclass1=000001013183&tclass2=000001013185&tclass3val=0 44 Statista. (2021). Renewable capacity in the Netherlands 2008–2020. https://www.statista.com/statistics/1189567/total-renewable- capacity-in-the-netherlands/ 45 Bhambhani, A. (2021, January 21). 2.9 GW New Solar Installed In Netherlands In 2020. Taiyang News. http://taiyangnews.info/ markets/2-9-gw-new-solar-installed-in-netherlands-in-2020/ 46 Bellini, E. (2019, November 4). Netherlands to reach 27 GW of solar by 2030. PV Magazine International. https://www.pv- magazine.com/2019/11/04/netherlands-to-reach-27-gw-of-solar-by-2030/ 47 DutchNews.nl. (2019, June 12). Floating solar farm group targets 2,000 hectares of water. https://www.dutchnews.nl/ news/2019/06/floating-solar-farm-group-targets-2000-hectares-of-water/ 60 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 connect to the grid). These processes were • Regional: Works to be undertaken recommended by the National Consortium are in regional waters (under the Zon op Water (a partnership of more than jurisdiction of a water utility) or on 35 parties, consisting of private companies, provincial waterways, which are smaller knowledge institutions and governments, in the waterbodies. Netherlands, with a focus on floating solar), and • Private: The waterbody is owned by an Deltares (an independent institute for applied individual or private company. research in the field of water and subsurface). The key permits required for setting up a FSPV If the waterbody is owned by a private party, project are: then the civil laws apply, and the mechanisms of agreements or lease contracts are used. For • Environmental permit: Environmental public waterbodies, additional permission may impact assessment is required, along with be required from the Water Authority or state a landscape design plan, showing visual water works agency. landscape impact. • Water permit: If any project, such as In 2017, a national consortium called Zon FSPV, is developed on a water surface, op Water (Sun on Water), was created by permission is required. the Ministry of Infrastructure and Water Management and led by the Solar Energy • Building code requirements: Since Application Center (SEAC). SEAC is a non- Zon op Water has recommended that profit organisation which is focussed on FSPV systems be considered as building research in innovative solar energy products structures, building codes similar to and services. The national consortium Zon op national standards for ‘construction in a Water commissioned studies to understand the marina,’ or ‘construction of house boats,’ licensing and permitting processes applicable including worker safety standards for for FSPV systems in the Netherlands. These ‘working near water’, ‘diving workers’, studies concluded that FSPV systems should ‘working in electricity environments’, be considered building structures, installed are required. for a long period of time and connected to the ground via cables. In this sense, they could Some other permits, such as license to be compared to houseboats, common in the generate, license to operate, and license to Netherlands, which require environmental connect to the grid are expected to follow. After permits. going through this approval process, technical studies are conducted before construction of Further, according to Deltares, when evaluating floating solar projects. the FSPV permitting process, developers must first evaluate who controls the waterbody. A Incentives different set of rules apply for each of these The Netherlands has an operating subsidy scenarios. Three types of waterbody ownerships (subsidy provided during the operating period were identified: of project) scheme, called Stimulation of • National: Works to be undertaken Sustainable Energy Production and Climate are in or close to a waterbody under Transition (SDE++). The scheme is a follow the jurisdiction of the Ministry of up to the SDE+ scheme. The SDE++ focuses Infrastructure and Water Management on the large-scale rollout of technologies for (Rijkswaterstaat) or on a national dam RE production and other technologies that (typically large rivers, lakes and canals). reduce greenhouse gas (CO2) emissions. It Benchmarking the FSPV ecosystem in India against international practices • 61 compensates the difference between the cost dredging depot in the Port of Rotterdam, price of the sustainable energy or the reduction to function as a pilot testbed. The dredging in CO2 emissions and the revenue. The subsidy depot is a contaminated water basin at the is calculated over 12 to 15 years. The duration Maasvlakte, an artificial extension of the and amount of subsidy depends on the Europoort industrial facility at the Port of technology used and the level of CO2 reduced. Rotterdam. The goals of the program are to: Under SDE++, for floating solar, a subsidy • demonstrate the feasibility of floating intensity of €175 per tCO2 ($210 per tCO2) and solar farms at a wave category 2 location; incentive of €0.08 per kWh ($0.10 per kWh) • determine the revenue model for the has been announced48. By the end of 2020, concepts, also compared to the yield on 4,112 applications were received (5,776 MW) land; under the scheme which accounted for a total budget claim of €6,397 million. Out of these • map the dynamic forces on the systems; total applications, solar energy contributed to and 3,989 applications (4,195 MW) with a budget • optimize the concepts claim of €2,360 million49. Bay.Wa.re. GmbH developed the 27.4 MWp Higher incentives are offered for projects with Bomhofsplas floating solar farm in the sun tracking. Netherlands. The installation featured around 73,000 solar modules, 13 floating transformers and 338 inverters. Financing for the project 3.2.3.2. Key Projects Deployed and Major was provided by ASN Groenprojectenfonds, Developers a Netherlands-based sustainable bank50. The Driven by space scarcity in the Netherlands, company recently sold the plant to a tie-up of floating solar farms with good yields have Dutch energy players. The consortium of new already been built at a variety of locations, owners consists of provincial fund Energiefonds including sand extraction lakes, water treatment Overijssel, local cooperative Blauwvinger plants, water reservoirs and ponds. SolarPlaza’s Energie and an unnamed private investor. Top 50 Operational Floating Solar Projects 2021 reports that the four largest operational Furthermore, BayWa r.e. developed several FSPV plants in Netherlands have capacities in other major projects in the country. In 2019, the range of 8 MW to 28 MW with an average it developed a floating solar plant, with a total capacity of 16 MW. capacity of 14.5 MWp. The project consists of 40,000 solar panels and can power around Key FSPV projects in Netherlands 4,000 homes. In addition, BayWa r.e. and its Dutch subsidiary GroenLeven recently energised In the Netherlands, a 100 MW project named two floating solar projects in the Netherlands Zon op de Slufter was developed with a goal with a combined capacity of 29.2 MWp to study how national sites could be optimized (13.5 MWp Nij Beets park with 33,648 for the generation of power from renewable modules and 15.7 MWp Kloosterhaar plant sources. The Zon op Water consortium installed with 39,256 modules). FSPV systems on De Slufter, a contaminated 48 Martín, J. R. (2020, February 18). The Netherlands moves to CO2-based green energy subsidies in €5bn new push. PV Tech. https://www.pv-tech.org/the-netherlands-moves-to-co2-based-green-energy-subsidies-in-5bn-new-push/ 49 Weijden, C., Rietvelt, M., & Rabbie, M. (2021, January 19). Update SDE++ 2020 round. Lexology. https://www.lexology.com/ library/detail.aspx?g=3bc2c87a-337f-45a5-b704-3e5d8fabaedf 50 A sustainable bank is a bank which focuses on socially responsible and sustainable investments. It can be viewed as a source of financing for RE projects, including FSPV. 62 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Figure 3.7: Sustainable bank financed FSPV project in Netherlands ASN Groenprojectenfonds (Sustainable Bank) Finance BayWa r.e. Sale of plant Consortium of provincial funds, Developed the FSPV plant local cooperative and private investor In 2020, Evides Waterbedrijf, a water utility sand and gravel extraction company Netterden’s company, installed a 1.6 MW floating solar farm onsite operations in Gendringen on the latter’s at Rotterdam. The plant has been developed by gravel quarry. the Dutch-based developer, Floating Solar. The system consists of 4,787 solar panels and is 3.2.3.3. Research and Development (R&D) expected to generate around 1.7 million kWh of clean power annually. The project has been set Activities up partly on land and partly on a reservoir in As mentioned earlier, the Zon op Water Kralingen where Evides runs its operations. consortium installed four FSPV systems of 50 kWp each on De Slufter, a contaminated Some observations have been made related dredging depot in the Port of Rotterdam, to to technical standards or practices in FSPV function as a pilot testbed. projects in the country: Floating Solar has developed the world’s • In FSPV projects, limited sensors are largest solar-tracking PV system in Andijk seen to be applied, for example, only one in a drinking water treatment plant owned pyranometer and one reference cell for a by Netherlands-based water utility PWN 14 MWp plant. (Waterleidingbedrijf Noord-Holland). The • The major projects are built by BayWa r.e. system is based on an algorithm which can and they build initially on full equity gradually adjust panel position and increase before opting for bank finance. This system yield by approximately 30 percent. To ensures a high-quality standard from an minimise ecological impact, the 73,500 solar electrical design perspective. panels will be arranged to form 15 individual islands. The islands’ design and construction Major developers in Netherlands have a transparency factor of 80 percent to In the Netherlands, the floating solar space ensure that plenty of light reaches the water’s is being led by a German RE developer, surface. Special Weather Risk Management BayWa r.e. Another major developer is the technology will minimise the risk of damage by Dutch-based, Floating Solar. Furthermore, automatically repositioning solar panels during several global developers are trying to enter storms. the Netherland’s FSPV industry. For example, in September 2020, Sweden’s Vattenfall BayWa r.e. and the Institute for Nature completed its first floating solar farm in the Education and Sustainability (IVN) collaborated Netherlands. The project has a capacity of in January 2021 on a study on the impact 1.2 MW and has been developed to power of floating solar on aquatic plants and Benchmarking the FSPV ecosystem in India against international practices • 63 Figure 3.8: Partnership between a developer and a research institute Partnership between developer and research institute BayWa r.e. IVN Develops the plant Conducts research FSPV Plant animals. BayWa r.e. and its Dutch subsidiary, This arrangement is planned to be used in a GroenLeven BV, developed two FSPV projects pilot project. with a combined capacity of 29.2 MWp. Both the sites, Nij Beets and Kloosterhaar, Solar Duck and Voyex (a private hydrogen use minimal water surface for solar panels to producer) are planning to set up a prototype ensure that enough sunlight can penetrate the of a solar island on the Waal near IJzendoorn, water surface. Only 23 percent of available which can power ships with hydrogen that can water space at Nij Beets has been used, leaving be refuelled at offshore floating solar islands. space near the banks to protect flora and fauna. The two Dutch companies have secured The plants will be monitored over the next five €350,000 in subsidies from the Province of years. Gelderland for the project that will also be supported by Dekker Group which will provide Zon op Water, which includes the Netherlands space for testing. Solar Duck will supply the Organisation for Applied Scientific Research, is solar island consisting of four linked platforms, aiming, through the floating solar pilot projects each containing 39 solar panels. The floating that it oversees, to demonstrate the feasibility solar island, which produces 65 kWp power, of floating solar in rough water conditions. will be connected to a 10 kW electrolyser The research is being conducted at a special that produces hydrogen. The hydrogen will be testing facility at Oostvoornse, a lake that is bonded to a ‘Liquid Organic Hydrogen Carrier’, located near Maasvlakte, an artificial extension an oil-like liquid which will serve as a binding of the Europoort industrial facility at the Port of agent, or carrier, for the produced hydrogen. Rotterdam. Solar Duck, a Dutch start-up, has developed 3.2.3.4. Make Versus Buy Strategy for a triangular structure for floating PV that Components resembles an offshore oil platform. The triangular structure measures 16 x 16 x 16 The Netherlands is a major solar panel import meters. The solar panels are placed on the and trading centre. In 2015, more than 50 platforms which are raised using floating percent of the imported panels came from pillars. These platforms allow PV modules to China. In 2017, traders imported panels be placed more than three meters above the worth €1.7 billion of which 40 percent were water surface, allowing the structure to handle built in Vietnam and only 13 percent in waves and dynamic loads. In addition, the China; this was because several Chinese solar distance from the water surface ensures that panel manufacturers moved production to the modules and other components stay dry. Vietnam51. In 2020, the Netherlands imported 64 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 around $2.31 billion worth of photosensitive authorities of the Nghe An province (Vietnam) semiconductor devices, including PV cells have authorised the construction of two floating (whether assembled in modules or made solar projects on the Vuc Mau and Khe Go up into panels) and light emitting diodes. lakes in Quynh Luu district, totalling 450 MW The imports of photosensitive material of capacity. The Vuc Mau project, developed by accounted for 0.48 percent of total imports Vuc Mau Solar Power Investment at a cost of to Netherlands. In the same year, the export VND3,700 billion (US$160 million) will have figures stood at, $1.46 billion52, which an installed capacity of 200 MW, while the Khe accounted for around 0.26 percent of total Go project proposed by Khe Go MK Solar Power exports from Netherlands. at a cost of VND4,100 billion (US$180 million) will be rated 250 MW. Both are targeted to By the end of 2017, the solar panel industry be commissioned by December 2023. Power in the Netherlands had a workforce of 9,000 generation will be sold to the national power and estimated annual turnover of €3 billion53. utility Electricity of Vietnam (EVN). The key Some of the solar panel manufacturers in the drivers for adoption of floating solar in the country are Hyet Solar, Girasolar, CCL Solar, country are: etc. Eurotron is a Netherlands based company, 1. Policy driver for RE: The National Power established in 2005, which develops equipment Development Plan for the 2011-2020 for solar panel manufacturing. Zimmermann, a Period with the Vision to 2030 set out Germany-based company, is a major provider a strategy to ensure Vietnam’s energy of a floating system called ZimFloat. The float security, improve rural electrification, system for the entire 80 MW of FSPV which and increase RE capacity. In March is operational in the Netherlands, has been 2016, a Revised Power Development provided by Zimmermann. Master Plan VII revised the percentage Pro Floating manufactures floats in the of RE required. It was determined that Netherlands and has provided its product for a RE (excluding large and medium scale cumulative FSPV capacity of over 3 MW. Ciel & hydropower) should make up 10 percent Terre has supplied floats for a cumulative FSPV of total generation by 2030. This was capacity of ~2 MW. Other major suppliers accompanied by a mandated reduction of floats include Isifloating, Solarisfloat, and in coal-fired generation. Solar is seen as Sungrow. key to the proposed increase in renewable generation capacity, with a goal of 12 GW installed by 203054. 3.2.4. Vietnam 2. Land resource constraints: With limited In Vietnam, 117 MW of floating solar projects land resources, solar power competes have been installed and another 400 MW with agriculture for land. With abundant is in the pipeline. In March 2022, the local water surfaces available, the rise of 51 DutchNews.nl. (2018, January 24). The sky’s the limit - solar panels soar in popularity in the Netherlands. https://www.dutchnews. nl/news/2018/01/the-skys-the-limit-solar-panels-soar-in-popularity-in-the-netherlands/ 52 Netherlands | Imports and Exports | World | Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light emitting diodes; mounted piezo-electric crystals | Value (USD) and Value Growth, YoY (%) | 2009 - 2020. (2021). TrendEconomy. 53 DutchNews.nl. (2018, January 24). The sky’s the limit - solar panels soar in popularity in the Netherlands. https://www.dutchnews. nl/news/2018/01/the-skys-the-limit-solar-panels-soar-in-popularity-in-the-netherlands/ 54 Volkwyn, C. (2020, August 27). The transitioning of Vietnam’s energy sector. Smart Energy International. https://www.smart-energy. com/industry-sectors/policy-regulation/the-transitioning-of-vietnams-energy-sector/#:%7E:text=The%20National%20Power%20 Development%20Plan,and%20increase%20renewable%20energy%20capacity.&text=This%20initially%20prioritised%20the%20 development%20of%20solar%20energy%20over%20other%20energy%20sources. Benchmarking the FSPV ecosystem in India against international practices • 65 floating solar along with the still mostly the power purchasers (offtakers) are private untapped solar rooftop potential offer power consumers, who purchase electricity suitable future applications for solar directly from independent power developers power in Vietnam. under long-term contracts, instead of buying electricity from the utility. Further, in synthetic (or financial or virtual) DPPA, renewable 3.2.4.1. Policy and Regulatory Ecosystem power is not directly physically delivered to In Vietnam, the policies and regulations for RE the offtaker. Instead, the generator sells the are led by the Ministry of Industry and Trade renewable power to the grid and receives the (MOIT), which acts as the market supervisor, open market price. The power generator and and the national electric utility EVN. the offtaker enter into a DPPA in the form of Contract for Differences. The project developer Till the end of last year, the country followed FiT pays the difference to the offtaker when the programs. These programs were divided into agreed-upon PPA price is below the market two phases: price. However, when the PPA price is more • FiT Phase 1: In 2016, a program for than the market price, then the difference is 850 MW overall solar capacity was paid by the offtaker to the project developer. announced with feed-in tariff of 2,086 Therefore, the amount received by the VND/kWh (USD 0.0935 per kWh) for developer is fixed, irrespective of the difference over 20 years. The tariff was applicable between PPA price and market price. to all solar projects, including FSPV. The Incentives phase 1 ended in June 2019. The incentives provided under FiT were • FiT Phase 2: In April 2020, Phase 2 of $0.0935 per kWh in phase 1 and the FiT program came into effect. In this $0.0769 per kWh in Phase 2. Another phase, separate tariff for floating solar incentive is the provision of DPPA. It allows was defined, which was 1,758 VND/kWh energy producers to sell and deliver electricity to (USD 0.0769 per kWh) for a duration corporate consumers instead of going through a of over 20 years. Criteria for eligibility state-owned electric utility company. included grid-connected solar power plants, reaching COD between June 1, 2019 and December 31, 2020. 3.2.4.2. Key Projects Deployed and Major Developers In 2021, Vietnam implemented an auction mechanism for all RE projects. For the projects As discussed earlier, Vietnam has the third to be eligible, they must be in the relevant highest installed capacity of floating solar master plans, not eligible for FiT Phase 1 or projects. As per SolarPlaza’s report Top 50 FiT Phase 2. Such FSPV projects are eligible Operational Floating Solar Projects 2021, to bid for the upcoming auctions post a pilot the three largest operational FSPV plants in auction scheme, and to participate in the Vietnam have capacities in the range of 35 synthetic direct power purchase agreement MW to 47.5 MW with an average capacity of (DPPA) scheme. Under the DPPA mechanism, 40 MW. Figure 3.9: Evolution of FiT program in Vietnam FiT Phase 1 FiT Phase 2 Duration: 2016 to June 2019 Duration: June 2019 to December 2020 Tariff: 2,086 VND/kWh (US$ 0.0935 per kWh) Tariff: 1,758 VND/kWh (US$ 0.0769 per kWh) 66 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Mechanism of public procurement The capacity of the plant is 47 MW. The project For initial years, the public procurement was is being developed on a man-made reservoir through FiT programs. As discussed in the at the company’s 175 MW Da Mi hydropower earlier section, the FiT program was divided into plant in Binh Thuan province, on Vietnam’s two phases: FiT Phase 1 and FiT Phase 2. south-eastern coast. In 2021, Vietnam implemented an auction In terms of the role of stakeholders involved, mechanism for all RE projects. The transition several projects were based on collaboration to auction mechanism consists of two pilot between private organisations and the programs: government. In such projects, private players have mostly played the role of the developer • Auction for floating solar: In February and owner of the plant, while the government 2020, a pilot auction scheme for floating acts as a waterbody provider. For example, two solar on hydropower plant dams of large-scale floating solar projects, with a total around 400 MW was announced. The capacity of 70 MW, have been commissioned first EPC auction was to be held for over in Vietnam. They are the 35 MWp Ho Tam Bo 50-100 MW, a second EPC procurement floating solar power plant and the 35 MWp Ho round for over 300 MW was planned for Gia Hoet 1 floating PV plant. The two projects 2021. The projects will be located at have been set up on irrigation lakes, in Quang hydro facilities belonging to the Da Mi Thanh commune, Chau Duc district. LONGi Hydropower Joint Stock Company (DHD), supplied high efficiency PV modules for both the owner of the FSPV plant. DHD is a projects. Both projects were developed by division of EVN, which is a government- Vietnam’s TOJI Group. owned power company in Vietnam. • DPPA: In January 2020, the government Major developers outlined a pilot program on DPPA As discussed in the key projects, the major mechanism (discussed in the previous FSPV developers in Vietnam include DHD and section). the Vietnam-based TOJI Group. Key FSPV projects in Vietnam Several major global players have been planning to enter the Vietnam’s FSPV A major project in Vietnam has been financed market. For example, in 2018, California- by Asian Development Bank (ADB), which is based clean energy developer Vasari Energy an International Financial Institution (IFI). It Inc announced a deployment of between has provided a US$37 million loan to the DHD. 180 MW and 200 MW of solar capacity in Figure 3.10: IFI (ADB) financed FSPV plant in Vietnam Asian Development Bank (IFI) Provided loan DHD, a subsidiary of Vietnam Electricity Developed the plant (EVN) FSPV Plant Benchmarking the FSPV ecosystem in India against international practices • 67 Figure 3.11: FSPV project involving collaboration between private organisations and government in Vietnam Solar panel manufacturer (LONGi) Develops Provides the the plant FSPV plant owned by a water body Private developer private organisation Government (TOJI Group) (TOJI Group) Vietnam, both through land-based and floating 3.2.4.4. Make vs Buy Strategy for installations. The company intended to build Components and operate two land-based and two floating The major module and float manufacturers or solar power plants, each with a capacity of suppliers in Vietnam are given in Table 3.4. 40 MW-50 MW.55 3.2.4.3. Research and Development (R&D) In 2022, Vietnam’s cumulative solar module Activities manufacturing capacity was 3,500 MW56 (VIR, 2023). Furthermore, several manufacturers, Information on R&D activities in floating solar both domestic and global, are trying to enter technology in Vietnam is not available. the country or expand their manufacturing Table 3.4: Component manufacturers or suppliers in Vietnam Component Home Country Company Solar module Vietnam Solar Power Vietnam Technology Boviet Solar Technology Dehui Solar Power Green Wing Solar Technology IREX Energy Red Sun Energy Venergy Solar Industry Vietnam Green Energy Technology VSUN Solar Vina Solar Technology China Jiangsu Seraphim Solar System Co. Ltd JA Solar USA Allesun New Energy Float France Ciel & Terre 55 Shumkov, A. I. (2018, January 18). Vasari plans 200 MW of land-based and floating solar in Vietnam. Renewables Now. https://renewablesnow.com/news/vasari-plans-200-mw-of-land-based-and-floating-solar-in-vietnam-598664/ 56 At present, its annual production capacity in Vietnam stands at 1.5GW of silicon wafer and 3.5GW of solar modules. 68 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 capacity in the country. For example, a solar won ($64.8 billion), which accounts for panel maker Vsun, a subsidiary of Japan-based around 4 percent of the country’s Gross Fuji Solar, is planning to set up a solar cell and Domestic Product (GDP) in 2019, to create module manufacturing facility in the Hoà Phú 3,19,000 jobs by 2022 and 6,59,000 jobs Industrial Zone in the B c Giang province, in by 2025 to boost the green energy sector57,58. the northeast part of Vietnam. The factory is The amount of 73.4 trillion South Korean won expected to be operational soon with an annual comprises private investment of 30.7 trillion solar module production capacity of 4 GW South Korean won and public investment and a cell capacity of 2 GW. Vsun invested of 42.7 trillion South Korean won. The US$300 million in the project. Furthermore, investment will be made on eight projects China’s Jiangsu Seraphim Solar System Co which are listed under the Green New Deal Ltd plans to build a 750 MW solar module Policy. assembly factory in Vietnam. In Taiwan, the FiT scheme follows a multi- JA Solar is planning to set up 3.5 GW capacity phase bidding process within a year to of new high-power modules in Vietnam through determine the suitable tariff level payable. JA Solar Viet Nam Company Limited. It will be For instance, in 2021, the FiT for floating set up in Gwangju Industrial Zone of Bac Giang solar is 4.1957 New Taiwan dollars per province by using existing land to build this kWh under phase 1 and 4.1204 New new production line and supporting facilities. Taiwan dollars per kWh under phase 2. The It estimates an investment of RMB 700 million factors which determine the applicable FiT (US$103 million) on this project. rate (among phase 1 and phase 2) include the type of facility categorized under the In Vietnam, Ciel and Terre has a manufacturing Rules for Management of Renewable Energy facility, which has a patented water-based Generation Facility Installation (Rules), its PV concept, Hydrelio technology, consisting expected installed capacity, and the commercial of modular ‘Lego-esque’ (building block type) operation date. The key reason behind following floaters assembling into rows. the multi-phase approach is that the cost of PV varies frequently even within a year, and so the 3.3. Key Observations from Other constant yearly FiT rate becomes inappropriate. Further, within the FiT scheme, the FiT provided Countries for FSPV are higher than those for ground- In this section, select global practices related mounted PV. The 2022 tariffs for solar PV that to incentives offered, business models adopted, would remain unchanged for 2023 are shown innovation in components manufactured and in Table 3.5. Given such conducive incentives, R&D activities are discussed. Chena Energy, a local developer in Taiwan, has built the world’s largest floating solar PV with a capacity of 180 MW (Grid Connected). 3.3.1. Incentives Offered Such projects help to explore and capitalize As part of its Green New Deal Policy, Korea on offshore capacities in the coastal areas of invested a total of 73.4 trillion South Korean Taiwan. 57 Joon, P. S. (2021, April 8). Strengths and Limitations of the Korean Green New Deal | Heinrich Böll Stiftung Hong Kong | Asia Global Dialogue. Heinrich-Böll-Stiftung. https://hk.boell.org/en/2021/04/08/strengths-and-limitations-korean-green-new-deal 58 The World Bank. (2021). GDP (current USD) - Korea, Rep. | Data. https://data.worldbank.org/indicator/NY.GDP .MKTP. CD?locations=KR Benchmarking the FSPV ecosystem in India against international practices • 69 Table 3.5: FiT rates in Taiwan for solar systems59 Type of solar PV Installed Capacity 2021 Feed-in-Tariff (NT$/kWh) system Phase 1 Phase 2 Rooftop 1 kW or more but less than 20 kW 5.8952 5.7848 20 kW or more but less than 100 kW 4.5549 4.4538 (without grid connection fee) 20 kW or more but less than 100 kW 4.4861 4.3864 (with grid connection fee) 100 kW or more but less than 500 kW 4.0970 3.9666 500 kW or more 4.1122 3.9727 Ground-mounted 1 kW or more 4.0031 3.8680 Floating 1 kW or more 4.3960 4.2612 3.3.2. Research and Development durability and is eco-friendly. The pontoons can last up to 25 years which is equivalent to Several research activities in the FSPV sector the solar panel’s lifecycle. Furthermore, SCG are being undertaken in Korea. In December provides a 25 year warranty on the pontoons. 2020, the Ministry of Trade, Industry and The long-lasting benefit helps reduce the costs Energy announced that the government associated with float maintenance. would invest 50 billion South Korean won ($45.1 million) to build a joint solar energy R&D centre to focus on the development 3.4. Key Takeaways, Observations of solar technology and business models. from Global Practices and In addition, the Korea Institute of Energy Research, a public sector research organization, Associated Risks of FSPV leads the development in PVs in Korea. Based on the benchmarking study of the three In Thailand, the Siam Cement Group (SCG), countries in Section 3.2, some key observations a Thailand-based public holding company, were made in the areas of drivers of FSPV, has signed a Memorandum of Understanding policy and regulations, FSPV component (MoU) with the Electricity Generating Authority manufacturing and R&D, which are presented of Thailand (EGAT). EGAT is a government- in Table 3.6. owned company, responsible for electric power generation and transmission as well as bulk 3.4.1. Key Observations from Japan, electric energy sales in Thailand. As part of Netherlands and Vietnam the MoU, the two organisations will work collaboratively in research and development 3.4.1.1. Need for FSPV on a mooring system for a floating solar farm The countries under consideration are majorly in EGAT’s reservoirs and dams. SCG provides dependent on imports of conventional floating pontoons that are made of high-quality sources—Liquefied Natural Gas (LNG) and polyethylene resin which employs strength and 59 The Ministry of Economic Affairs of Taiwan announced the feed-in-tariff for renewable energy projects for 2022. https://www. moeaboe.gov.tw/ECW/English/news/News.aspx?kind=6&menu_id=958&news_id=25032 70 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Table 3.6: Summary of observations in key areas Key areas Countries Japan Netherlands Vietnam Drivers of FSPV RE or Solar targets    Limited land availability  -  Availability of waterbodies    Policy and Competitive bidding - -  regulations FiT   - DPPA - -  Component Solar panels    manufacturing Floats    R&D Efficiency of FSPV as compared to other   Data not technologies available Solar panels   Solar tracking -  Aquatic flora and fauna under solar PV panels -  Other areas -  coal imports in Japan, natural gas imports in solar. To address this barrier, these countries are Netherlands, and coal imports in Vietnam—for switching to floating solar projects. In addition, electricity generation. However, the cost of coal the abundance of waterbodies makes FSPV and gas imports have increased over time and plants suitable for all the three countries. these country governments have committed to reducing their carbon footprint. Therefore, these 3.4.1.2. Key Learnings for India countries are looking to transition to RE and have set defined RE targets. Target level inclusion Although, each of these countries has good In all three countries, the governments have potential for RE and the cost of renewable set targets for reduction of emissions and power has decreased over time, there are generation from RE sources. Netherlands, in several barriers to its large-scale adoption. particular, has specified technology-specific With the exception of Netherlands, one of targets for floating solar while others have set the key barriers is low availability of land for broader, technology-agnostic targets. deployment of RE projects like ground mounted Table 3.7: Targets for RE in the three shortlisted countries Country Target Japan ƒƒ Reduce GHG emissions by 26 percent by 2030 from the 2013 level ƒƒ Increase the share of RE and nuclear power to 44 percent by 2030 ƒƒ 22 percent-24 percent of the generation mix to be attributed to renewables by 2030 Vietnam ƒƒ RE target of 10 percent of total generation by 2030 ƒƒ 12 GW of solar energy by 2030 Netherlands ƒƒ Achieve 2,000 hectares of floating solar farms by 2023 Benchmarking the FSPV ecosystem in India against international practices • 71 Learnings for India: Set technology-agnostic targets Developing countries, as borne out by case examples, typically institute technology-agnostic RE generation targets and leave it to market players to choose scalable technologies to achieve the same. For an emergent technology like FSPV, that is behind the maturity curve of ground-mounted solar PV in India, it could help to not have a specific target. It is anticipated that solar market players in India, having tasted success and scale with ground-mounted PV, will automatically expand into floating solar, given India’s abundant water resources and the country’s push for innovation and growth in clean technologies. This process would be further catalyzed by demonstration effects if the government were to take up a few pilot floating solar installations in the short term. Technology maturity development strategies on Yamakura Dam triggered by Typhoon Faxai resulted in several key learnings to ensure Several studies and pilot projects helped reliability of FSPV plants. Japan, Netherlands and Vietnam realize the on-ground requirements and key issues faced For large scale deployment of floating solar in the deployment of floating solar plants. This plants, the following assessments are required learning helped these countries gain confidence to be undertaken: in deployment of large-scale FSPV projects. • Identification of areas with a large When faced with a lack of data regarding the number of reservoirs and other favourable feasibility of FSPV, Netherlands developed a conditions. pilot testbed to assess whether national sites • Feasibility of installing floating solar could be optimally utilized for the generation projects in different types of waterbodies of power from FSPV plants. Furthermore, to such as lakes, and reservoirs. fathom the impact of floating panels on aquatic • Requirements to ensure optimum flora and fauna, a private developer and an utilization of waterbodies and existing educational/research institute collaborated infrastructure. to undertake a study via a pilot project. In addition, a study was undertaken to • Efficiency of FSPV plants as compared demonstrate the feasibility of floating solar in to other technologies such as ground rough water conditions. mounted solar. • Impact of FSPV projects on the In Japan, a study to assess the efficiency of environment. FSPV plants concluded that solar panels on water generated 14 percent more power than • Designing of the plant must ensure that it those placed on the rooftop of a building. can withstand rough water conditions. For That water has a cooling effect on the panels instance, assessments may be required that makes them work closer to their ideal for technical standards for mooring lines, temperature. The 2019 fire at the FSPV plant anchors, connection bolts, and the like. Learnings for India: Promote pilots The Indian FSPV market is at a nascent stage and there is a need to establish the proof of concept. Government agencies such as Solar Power Park Developers could promote floating solar projects. Successful pilots will create confidence among private players which in turn will spur investment in scalable FSPV plants. An example of the government taking the initiative is the 600 MW Omkareshwar Floating Solar Park being developed by RUMSL in Madhya Pradesh. 72 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Market mechanisms of the location and the solar technology used, While all three countries followed FiT approach, including FSPV. Higher tariffs were proposed they varied by strategy. for regions with lower solar irradiation and potential. New proposed tariffs varied from In Japan, the FiT policy for RE was enacted $0.0667/kWh to $0.1087/kWh. at the beginning of July 2012 with FiT of 40 Japanese yen per kWh. By 2020, the tariff The key observations derived from each of these decreased by 70 percent to reach 12 Japanese strategies are: yen per kWh. The cost differential which arises • When floating solar technology was at due to FiT is borne by the consumer in the a nascent stage, FiT helped in lowering form of a surcharge. The tariffs for the period of investment risks and financing costs 2017-2020 are given in Figure 3.12. which led to rapid increase in its adoption. In Netherlands, as already discussed, SDE++ is a subsidy that compensates for the difference • The decrease in FiT in Japan is primarily between the cost price of the sustainable driven by decrease in CAPEX of solar PV energy or the reduction in CO2 emissions system, which has decreased by almost and the revenue. The subsidy is calculated 80 percent from 2010 to 2020. over 12-15 years. The subsidy intensity of • The amount of the subsidy in Netherlands €175/tCO2 ($210 per tCO2) and incentive depends on the technology used and of €0.08/kWh ($0.10 per kWh) has been the level of CO2 reduction that can be announced for FSPV. achieved. Hence, the developers’ focus is on FSPV that offers high CUF. Higher In Vietnam, between June 1, 2017, and June incentives are offered on projects with 30, 2019, FiT rates offered were $.0935/kWh sun tracking. in Phase 1 which was available for all solar technologies, including floating solar projects • In Vietnam, higher tariffs for floating solar under the FiT program. The second phase projects are offered which compensate for offered variable FiT considering solar irradiation the higher cost of technology. Figure 3.12: Trend of FiT rates in Japan Decreased by 68%-70% JPY40 per kWh JPY181 per kWh JPY12-133 per kWh 2012 2017 2018 2019 2020 JPY211 per kWh JPY142 per kWh Note: 1FIT for >2 MW non-residential solar power production determined via auction process; 2FIT for >0.5 MW non- residential solar power production determined via auction process from 2019; 3FIT for >0.25 MW non-residential solar power production determined via auction process from 2020. Benchmarking the FSPV ecosystem in India against international practices • 73 Learnings for India: Allow competitive bidding Although the FiT approach ensures upfront security, the Indian market, along with the global experiences, seems mature enough to allow competitive bidding for tariff discovery. The requirements for successful competitive tariff discovery payment security mechanism, standardization of contracts, offtake assurance and recourse to payments will need to be in place. The government should focus on creating a conducive environment using such mechanisms while allowing the market forces to enable competitive price discovery. Value chain evaluations to Japan. Similarly, in Netherlands, a large proportion of solar panels is imported. Manufacturing of solar modules In terms of solar module manufacturing, Manufacturing of floats various manufacturers, both domestic as The countries under consideration have well as foreign, are already present in the achieved some level of maturity in float three countries. Furthermore, existing as well manufacturing capabilities. The France-based as new players are trying to expand their manufacturer, Ciel and Terre, has manufacturing manufacturing base in these countries. For facilities in all the three countries. Furthermore, example, in Vietnam, solar panel makers such several other foreign companies (such as as Vsun, JA Solar, and Jiangsu Seraphim the China-based Mibet Energy and Sungrow, Solar System are planning to set up large- and the Germany-based Zimmermann) scale solar cell and module manufacturing are present in these countries. Apart from facilities. Apart from producing the solar panels foreign manufacturers, there are domestic for domestic use, manufacturers also export manufacturers such as Sumitomo Mitsui their products. For instance, manufacturers in Construction and Kyoraku in Japan, and Pro Netherlands exported US$1.46 billion worth of Floating in the Netherlands. photosensitive semiconductor devices, including PV cells, in 2020. International experience with FSPV In Japan, about 60 percent of the PV modules Globally, several FSPV projects have been are produced by Japanese companies. However, developed by deploying solar panels on these companies produce only 55 percent of waterbodies which are already in use as their products in Japan. The remaining 45 hydropower stations. Such FSPV plants are also percent is produced overseas and imported present in the countries under consideration. Learnings for India: Boost domestic manufacturing Initially, components required for construction of a floating solar plant may be imported. However, to help the floating solar sector grow, easy availability of solar panels, floats, and other components is a must. Domestic manufacturing capabilities need to grow over time. It is important that both domestic as well as foreign players expand their manufacturing base in a country. Further, once the manufacturing capability reaches a certain level of maturity, the manufacturers could focus on exporting their products. Domestic manufacturing capacity for floats and solar panels needs to increase. During stakeholder consultations, manufacturers highlighted the need for a clear project pipeline to put additional capital expenditure for increasing floater manufacturing capacity. Solar cell manufacturing can be promoted via benefits such as safeguard duties and government-driven R&D initiatives. Further, the government must define quality standards and technical specifications to ensure that components can withstand high moisture content, salinity of water, high wind speeds, and other harsh conditions. 74 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Learnings for India: Develop robust regulations The 2019 FSPV plant fire in Japan presents a convincing case for governments to develop robust standards and quality controls; it also requires developers to meet these standards to avoid environmental damages to the assets. Innovative deal structuring, and low-cost financing also plays an important role in adoption of the technology. While government support is required to provide an initial push to the market and reduce the fear of new technology, the regulations should be flexible enough to allow market players to design innovative solutions. In Japan, the fire at the FSPV plant on and hydropower plant can reduce Yamakura Dam highlighted the importance of transmission costs. ensuring the reliability of a plant under harsh • Floating solar reduces water evaporation conditions. Thorough analysis of designs is from the reservoir, thus increasing required to ensure that the plants can withstand hydropower generation. the worst possible environmental conditions and external actions (loads). • Deployment of FSPV power plant on the reservoir of a dam compensates the In the Netherlands, a 27.4 MW FSPV unstable generation of these systems by project was developed by BayWa r.e. on the adjusting hydropower output, whereas Bomhofsplas lake in Zwolle. The plant was then PV systems can compensate for the sold to a tie-up of Dutch energy players. This hydro energy deficiency in the mid- to is an example of asset recycling which may be long-term. adopted to absorb the construction risks. In Vietnam, Da Mi Hydropower Joint Stock 3.4.1.3. Proliferation Strategies Co. unit of Vietnamese power company Key deployment strategies and targets Electricity of Vietnam, which is a government- In Japan, Netherlands and Vietnam, the key owned electricity provider, constructed a drivers of proliferation of floating solar were the 47 MW FSPV plant on a man-made reservoir RE targets and land availability constraints. at the company’s 175 MW Da Mi hydropower In India, acquisition of land is accompanied plant. with regulatory roadblocks and high cost. Some of these countries have opted to integrate Further, similar to the three countries, India is hydropower and floating solar PV due to several endowed with a large number of waterbodies, advantages: unlocking a huge potential for FSPV. Therefore, to accomplish its RE targets, India can adopt • The combination can provide a balance floating solar for electricity generation. of electricity generation from RE and conventional sources, with solar power For instance, NTPC Limited is leading the generating significant power during the floating solar segment in the country by dry seasons and hydropower generating constructing FSPV plants at their TPPs. In this electricity during rainy seasons. way, they are trying to utilise the waterbodies • By linking to a common substation, available to them, which have an estimated a combined system of floating solar potential of at least 800 MW60. 60 NTPC. (2017, March 10). NTPC installs India’s largest Floating Solar PV Plant at RGCCPP Kayamkulam, Kerala | NTPC. www.ntpc. co.in. https://www.ntpc.co.in/en/ntpc-installs-india%E2%80%99s-largest-floating-solar-pv-plant-rgccpp-kayamkulam-kerala Benchmarking the FSPV ecosystem in India against international practices • 75 Deployment Strategy Commercial competitiveness The key components in business models of In the countries under consideration, several floating solar projects consist of waterbody type, factors have led to the decrease in cost waterbody provider, project developer, plant difference between RE power and electricity owner, and source of financing. The findings from conventional sources. on the business models adopted in the three In Japan, the nuclear phase-out after countries are summarized in Table 3.8. Fukushima resulted in costly LNG and coal In India, waterbodies are available in the imports. This increased its energy import form of agricultural reservoirs, dam reservoirs, dependencies and related supply insecurities. irrigation ponds, lakes and man-made Therefore, to decrease dependency on costly reservoirs, and all these may be considered imports, Japan started focussing on RE. In for deployment of FSPV projects. Furthermore, Netherlands, over the period of 2010-2018, since most of these waterbodies are owned by the province of Groningen, from where a major the government, they may provide access for proportion of gas was extracted, faced several development of the FSPV plants. The FSPV earthquakes. In March 2018, the Dutch plant can be owned by the government or its Cabinet decided to scale back extractions in departments (such as the power and water the Groningen gas fields, resulting in increased utilities) as well as private players (such as a dependence on import of natural gas from private company, plant developer, or private Norway. Similarly, Vietnam is highly dependent power utility). In addition, the financing for on costly imported coal and hydropower the construction of the plant may be obtained (primarily dependent on a single river shared by through bank loans, green bonds, IFIs, etc. multiple countries). Table 3.8: Key observations on business models Country Observations Japan ƒƒ FSPV projects are generally developed by private players on government waterbodies and the power is sold to local utilities. ƒƒ Major waterbodies include agricultural reservoirs, dam reservoirs and irrigation ponds such as Shinano, Tone, Ishikari, and Teshio. ƒƒ Some projects were financed via green bonds. Netherlands ƒƒ Private developers constructed plants on waterbodies such as reservoirs and lakes. ƒƒ Waterbodies are mostly provided by the government. However, a water utility company also provided its waterbody for an FSPV project. ƒƒ Apart from key financial sources such as banks, financing for some projects was via a sustainable bank (a bank which focuses on socially responsible and sustainable investments). ƒƒ Major waterbodies include rivers such as Rhine, Meuse, and Eems. Vietnam ƒƒ Majority of projects are based on collaboration between private organisations and the government. Private players mostly play the role of the developer and owner of the plant, while the government acts as a waterbody provider. ƒƒ Several projects were developed on man-made reservoirs. ƒƒ An IFI provided funding for a key project in Vietnam which is owned by a power utility. ƒƒ Major waterbodies include rivers such as Dong Nai, Gianh, and Vam Co Dong river. 76 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Therefore, these countries considered switching Maharashtra, Uttar Pradesh, Jharkhand, to RE power as an alternative to the expensive Telangana, Tamil Nadu, and Andhra Pradesh. power from conventional sources. However, Active players participating in these tenders with RE power, other barriers started appearing are ReNew Power, AMP power, NTPC Limited, which led to increased focus on FSPV. For NHDC Limited, SJVN Limited, Shapoorji & instance, Japan and Vietnam, faced with Pallonji, Sterling & Wilson Solar Limited, limited ground space, decided to switch from Mahindra, Waaree, Bharat Heavy Electricals large-scale ground PV solar systems to floating Limited (BHEL) inter alia. Although there are solar. In Vietnam, solar power plants have to no targets for FSPV at the national level, many compete with agriculture for land. Therefore, states are supporting FSPV under their state high untapped potential for solar energy and specific RE policies, such as, Kerala. The abundant availability of waterbodies function as ecosystem development strategies followed a key driver of FSPV plants. by the countries under consideration are a combination of two approaches: Netherlands also has plenty of inland water in the form of lakes, canals and old sand • Focus on promotion of local pits, making the Dutch geography suitable for manufacturing of existing technologies floating solar. In addition, it has been focusing • Focus on R&D activities to develop on R&D activities in the FSPV segment which advanced technologies has resulted in development of advanced In Japan and Vietnam, there is a major focus technologies with higher efficiencies. Such is on promoting floating solar component developments have resulted in making floating manufacturers to expand their manufacturing solar competitive with other technologies. capacity in the countries and help in reduction Furthermore, in the Netherlands, the RE of imports. Furthermore, their goal is to enable prices are decreasing steadily. As the prices new manufacturers, both domestic and foreign, fall further, RE is expected to sustain without to enter the floating solar manufacturing subsidies. industry. However, these countries are not In summary, high import prices of oil and gas, focused on undertaking R&D initiatives. combined with decrease in prices of renewable In the Netherlands, several manufacturers of power, competitive land use, easy availability floating solar components are already present. of waterbodies and R&D breakthroughs in They are mainly focused on undertaking R&D floating solar technology have helped in making initiatives which can help them in developing new FSPV commercially competitive with other and innovative technologies and hence become technologies. global leaders in the floating solar industry. Market ecosystem development strategies The market in India is at a nascent stage with 3.5. Associated Risks and about 345 MW of floating solar plants already Mitigation Strategies for India commissioned. Another 2,300 MW (approx.) The risks associated with floating solar along are under different phases of implementation with the mitigation strategies are summarized in and are majorly planned in the states of Table 3.9. Benchmarking the FSPV ecosystem in India against international practices • 77 Table 3.9: Risks and mitigation strategies for India Risk Description Mitigation strategy Absence of Being a new technology, no The government needs to work with multiple FSPV-specific specific standards are currently stakeholders such as research institutes, certification standards available for floating solar. agencies and private developers to develop robust standards and quality control mechanisms. This would require a cross-functional task force to develop the standards. The team must comprise experts with experience in the fields of Floating PV, Grid Scale PVs, Marine Anchoring, Materials, Environment and Ecological and Financing. A guidance document including review of the technology, considerations for technology selection, review of the technical standards and gaps in these standards for each of the main equipment that comprise a floating solar project is being issued separately. Absence of There is no data available related Existing bodies, such as CWC already gathers data waterbody data to the ownership, water surface for all the waterbodies in the country. However, CWC area, water level, etc. for most of may be mandated to collect data for other aspects the waterbodies in the country. which may be required for FSPV project development and share it with the project developers. Risks related FSPV plants regularly face harsh Research is needed on ways to improve long-term to safety environmental conditions such as reliability of the components. For example, in 2020, from harsh high humidity and salinity of water. Floating Solar (a Dutch company) revealed the results environment They may also be exposed to of three years of testing of its pilot PV system at the conditions natural calamities such as storms Slufter, and said that its FSPV plants were storm and cyclones. resistant61. Furthermore, innovative components that are proven to last for long periods should be adopted. For example, in Thailand, SCG provides floating pontoons that are made of high-quality polyethylene resin which can last up to 25 years (equivalent to the solar panel’s lifecycle). Data sharing and regional cooperation on technical aspects of the technology can accelerate deployment as well as reduce the risks by following the best practices. Lack of The manufacturing capabilities of Policy support is required from the government to domestic FSPV components, which majorly help the domestic manufacturing market to scale up. manufacturing include solar panels and floats, capabilities is low. Floating solar Since the technology is still at The government can promote collaboration between is a nascent a nascent stage, there is not public sector, private developers and research technology much information available on institutes to set up pilot projects aimed at studying the impacts and reliability of the the reliability of the technology. technology. 61 Garanovic, A. (2020, November 5). Trial demonstrates floating solar islands as storm-proof. Offshore Energy. https://www.offshore- energy.biz/trial-demonstrates-floating-solar-islands-as-storm-proof/ 78 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Risk Description Mitigation strategy Higher The cost of setting up a FSPV plant To bring the tariffs at par with other RE technologies, electricity is higher than the cost of a ground incentives can be provided to project developers for tariffs as mounted or rooftop solar plant. some years, until the technology matures. compared to Therefore, the tariffs for electricity other RE plants generated are expected to be higher. Possibility The impact of long-term Project developers can partner with research of adverse deployment of FSPV to the aquatic institutes to undertake such studies. For example, environmental flora and fauna is not known. in the Netherlands, BayWa r.e. partnered with IVN impacts to ensure and study how local flora and fauna thrive together with the floating PV panels. Availability of Lack of standardized data to Sensors may be deployed on the FSPV plants to data eventually understand the technical and capture data in real time over the years to produce environmental hurdles. evidence. Investment Lack of projects that have reached Governments need to focus on developing cheaper Risk end of life creates risk for the financing options by introducing mechanisms such as investor which in turn can lead to issuing government bonds, designing credit guarantee increased financing costs. schemes. Global experience and fund availability for IFI can be leveraged to reduce the investment related risks. Benchmarking the FSPV ecosystem in India against international practices • 79 4. Review of Technical Standards and Tenders 4 Review of Technical Standards and Tenders An overview of the components of a floating PV installation is presented in Figure 4.1: Figure 4.1: FSPV System Components M oo s ri n a ter g lo s an F M ec h ic al ys te SYSTEM m d ule s erters Mo Inv Electrical Bala nce of System Compared to the conventional ground mounted unified approach for PV and float testing. For solar installations, the equipment installed sustainable growth, it is important that the in a floating solar plant has to endure harsh technical standards remain flexible to encourage environmental stress like increased ultraviolet innovation, while ensuring quality and reliability. (UV) exposure, corrosion, high humidity, and Most of the floating solar projects have been damp heat, and increased mechanical stress developed on a tendering basis in India and an due to constant wave motion. Figure 4.2 inadequate set of technical requirements was summarizes the points to be considered for included in some of these tenders. This could floating solar applications. have been a contributing factor to the mediocre response from the industry. FSPV plants worldwide have similar challenges regarding technical aspects. These challenges With this context, this approach was adopted pertain to absence of specific design codes for the assessment presented in this section: or guidelines to determine design loads, • Review and evaluate gaps in the relevant FoS, complex and computationally intensive technical standards while adopting it for structural system simulations, and lack of floating solar applications. Review of Technical Standards and Tenders • 83 Figure 4.2: Points of attention in an FSPV system SITE CONDITIONS ENERGY YIELD ASSESSMENT DESIGN PHILOSOPHY ANCHORING AND MOORING y Assessment of waves and y FPV-specific phenomena: y Site conditions as vital y Dynamic load modelling winds at relevant heights soiling, mismatch losses, starting point (combined loads) cooling effect y Defining appropriate return y Safety philosophy from y Load distribution periods y Applicability of satellite data offshore standards y Water level variation y Water depth and water level y Defining a methodology for y Tuning safety factors y Testing variations accurate and realistic EYA FLOATS ELECTRIC LAYOUT INSTALLATION AND O&M ENVIRONMENTAL IMPACT y Functional requirements y Building on existing solar y Increased focus on safety y Ongoing research for different technologies standards and norms and access during O&M y Water quality and water y Interconnections y Increased requirements for composition y Preventive maintenance y Buoyancy water protection and monitoring y Impact on flora and fauna y Durability y Fail-safe design y Lessons learnt from past in and near the water body y Additional tests for PV modules projects y Permitting procedures • Formulate a guidance document (issued • missing or low quality of historical data separately) based on the above review, of the waterbody and results of feasibility current knowledge of the FSPV system, surveys; and the standardization efforts already • technical criteria with no relevant logical undertaken. backing, leading to over-design and cost • Review the technical requirements over-run; and included in some of the tenders issued in • prescriptive technical requirements that India and provide recommendations for lack the flexibility to accommodate different improvement/optimization. float technologies and room for innovation. The review of technical standards and technical A detailed analysis of the tender specifications requirements of some of the tenders62 floated along with recommendations are provided in in India for floating solar projects in reservoirs the subsequent sections. and water storage areas of coal power plants resulted in the summary in Table 4.1. During 4.1. Manufacturing the consultations, stakeholders expressed concerns about: The tenders specify compliances to various International Electrotechnical Commission (IEC) • lack of clarity on the boundary conditions and ASTM standards to meet the requirements of the installation, for example, the of UV rating, corrosion protection and installation area identified on the mechanical impact rating. Table 4.2 tabulates waterbody, evacuation point, ownership the reference standards for major equipment of waterbody, and permits; included in the tenders. 62 NTPC. (2018, October). Invitation for Bids for Development of 70 MW Floating Solar PV Project At Rajiv Gandhi Combined Cycle Power Project Kayamkulam in Kerala. SECI. (2018, August). SECI Expression of Interest for Empanelment of Consultants for Bathymetric Survey and Hydrographic Survey for SECI’s Floating Solar PV Projects. SECI. (2018, April & September). Request for Selection (RfS) Document for Selection of Solar Power Developers for Setting up of 150 MW (50 MW x 3) Grid Connected Floating Solar Power Projects to be installed at Rihand Dam, Sonbhadra District, Uttar Pradesh under Global Competitive Bidding. Greater Visakhapatnam Smart City Corporation Ltd. (2017, August). RfP for 2MWp grid connected Floating Type Solar PV Power Project on Mudasarlova Reservoir. 84 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Table 4.1: Limitations of existing standards and technical requirements of tenders Category Identified Gaps Manufacturing ƒƒ Deriving desired properties of raw materials of floats and acceptance criteria Equipment ƒƒ Technical specifications for reliability and minimum environment impact ƒƒ Requirements of ingress protection Design ƒƒ Establishing design boundary conditions ƒƒ Considerations for determination of design loads ƒƒ Requirements of design FoS ƒƒ Requirements of electrical safety Testing ƒƒ Test procedure and duration for reliability testing ƒƒ Test acceptance criteria ƒƒ Extrapolation of test results to expected design life Meteorological ƒƒ Measurement parameters measurements ƒƒ Specification of measurement instrumentation Services ƒƒ FSPV specific requirements for equipment for surveys and installation ƒƒ Standardised specifications for bathymetry surveys for FSPV Energy assessments ƒƒ Guidelines for resource assessment ƒƒ Guidelines for system modelling Installation and O&M ƒƒ Guidelines for preventive and breakdown maintenance ƒƒ Requirements for data collection and documentation HSE ƒƒ Guidelines for measurement of impact on biodiversity ƒƒ Requirements for work safety ƒƒ Standards for recycling ƒƒ Guidelines for waste disposal ƒƒ Guidelines for risk assessment Logistics ƒƒ Requirements for transportation ƒƒ Specifications for storage Table 4.2: Reference standards in tenders for major equipment in FSPV plant Test Component Standard UV Test PV Modules IEC 61215 Inverters IEC 62093 Combiner Boxes IEC 62093 Cables TUV 2pfg 1169/08/07 Floats ASTM D2565, ASTM D4329 Corrosion Protection PV Modules IEC 61701, IEC 62716 Floats ASTM D1693 Mechanical Impact PV modules IEC 61215 Inverters and Combiner Boxes IEC 62262 Floats International Organization for Standardization 16770. ASTM D638 Review of Technical Standards and Tenders • 85 Identified Gaps • Include a field quality plan during construction and O&M phase for • Manufacturing-related aspects for the key testing and recording the details of components are not clearly covered in various equipment/floats dimensions, any of the reviewed tenders. visual inspections, and for undertaking • The mechanical and chemical properties mechanical strength tests of floaters. of the key equipment to endure the challenges as listed in the Figure 4.2 are not completely covered. 4.2. Equipment and Technical Recommendations Specifications • Evolve tender technical specifications The basic specification and IEC compliance for to meet the key challenges of FSPV key equipment with respect to corrosion, UV and to ensure material longevity for an resistance, high humid conditions, chemical anticipated 25-year lifetime. resistance, and environmental compliance are covered. While PV modules and inverter • Make tender specifications more technology selection may be made by applying technology agnostic to cover a wider the experience gained from the ground mounted range of technologies and types of floater systems, floats, systems for anchoring and structures, anchoring and mooring. mooring, earthing and lightning protection shall For example, the tenders are currently be specific to the site conditions. more focused on HDPE floats, which will limit participation from other technology providers. A wider required Identified Gaps definition for performance in tenders • The bidder is made responsible for will facilitate innovation and allow the collection of key site data. This not industry to learn, develop and mature the only increases the time for responding technologies. to bids, but also leads to different • Include a indicative manufacturing quality assumptions being taken by the different assurance plan (QAP) for key equipment, bidders, which could limit discovery of especially for the floats and anchoring commercially optimized bids. and mooring system. However, it is noted • Many references for national and that owing to the large-scale deployment international standards for each major and experience of the solar industry, component are included. However, the manufacturing QAP is standardized for technical specification on a component the equipment like PV modules, inverters, level does not adequately reflect the transformers, combiner boxes, electrical requirements of the floating solar switchgears, and cables. environment. • Include requirements for owners/ developers regarding witnessing factory Recommendations acceptance test (FAT) and issuing • Have the bidding authority carry out the material dispatch clearance certificate for preliminary site investigations and make all main equipment like floats, anchoring the data available to the bidders. This and mooring system, PV modules, effort can also be centralized for a cluster inverters, transformers, combiner boxes, of waterbodies to optimize cost of surveys electrical switchgears, and cables. and drive standardisation. 86 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 • Make historical data on the reservoir and the technical specifications based and waterbody owners available to the on recommendations in the document. bidders. DNV’s Recommended practice for • Include desired UV (rated for minimum design, development and operation of of 2000 hours exposure) and IP rating floating solar photovoltaic systems (DNV- for BoS items like connectors (minimum RP-0584) can also guide reliability in a IP68), inverters (minimum IP55), marine environment. combiner boxes (minimum IP65), electrical panels (minimum IP55), SCADA 4.3. Design & communication panels (minimum IP 65) and cable accessories which are The tenders reviewed do not provide base installed on water. data about the sites and the bidder is made responsible for collection of key site data, as • Specify requirements of corrosion indicated in Table 4.3. protection for BoS items, floats and PV modules. The tenders specify the high-level design • Specify restriction of hazardous requirements for HDPE floats and anchoring substances and environmental and mooring system. impact for PV modules and other BoS Floats components like usage of ester oil in transformer, halogen free cables etc. • Minimum 1.15 safety factor at extreme At present, they are specified for HDPE conditions. floaters only. • Temperature extremities of +50°C to • Include specific construction and testing -10°C. requirements of components to suit the • PV fixation system shall be of proven high humidity and possible immersion in design and subjected to mechanical test water. to withstand unit failure conditions under • Evolve the Guidance document is being static and fatigue conditions for wind issued separately (which provides useful speeds to withstand the maximum wind insights for floating solar applications) speed of the area. Table 4.3: Data available from tender and data to be collected by bidder Data Description Data provided in tender ƒƒ Max and min water depth level Data to be collected by ƒƒ Historical water level variation bidder ƒƒ Depth of reservoir ƒƒ Bathymetry, Geophysical surveys, Geotechnical investigations ƒƒ Water discharge rate ƒƒ Wind speed, wave and water current details ƒƒ Water resistivity at surface and its variation with depth ƒƒ Historical water temperature and its variation with depth ƒƒ Total dissolved solids, power of Hydrogen (pH), Biochemical Oxygen Demand & Chemical Oxygen Demand of water Review of Technical Standards and Tenders • 87 • Float system should be designed to account for this movement. Added safety withstand the maximum wind speed margin on these mechanical properties of the location and shall be able to can be examined to further optimize withstand the weight of O&M personnel the cable length and to decrease the carrying tools, the forces of nature such associated ohmic loss. as wind/water flow etc. • Include a stability requirement for the • Buoyancy to support weight of one solar floaters. panel and one person per solar panel. • Require buoyancy to support weight of • Design of floating system shall be certified personnel only for those areas where the by a third-party agency for safety and movement of personnel is anticipated strength. during construction and O&M phases. The requirement may not apply to other Anchoring and Mooring areas of the system. • Withstand maximum wind speed, water • Set requirements for earthing and level variation, waves etc. lightning protection. • Design of anchoring system to be certified • Design boundary conditions and by accredited national or international considerations for determination of design laboratory. loads. Identified Gaps Refer to DNV’s Recommended practice for • The minimum FoS specified is design, development and operation of floating significantly less than what is followed for solar photovoltaic systems (DNV-RP-0584). onshore and offshore construction. • The requirement stated for buoyancy will 4.4. Testing result in overdesign if followed for the entire system. Presently, the tender specifies testing of only the critical components: Recommendations • PV modules and inverters deployed • Adopt a safe FoS value. The effective for the project shall have a valid minimum FoS for steel as per IS 800 test certificate from any National corresponds to approximately 1.65. Accreditation Board for Testing and In the absence of specific standards, Calibration Laboratories accredited labs a similar value can be adopted for the or International Laboratory Accreditation design of FSPV projects, particularly Cooperation accredited labs from India/ considering the significant uncertainty in outside India. both loads and material strengths. • Testing requirements specified in the • Include a safety margin in the tender for the PV modules and inverters mechanical load or cable pull test for cover type test, environmental stress cable terminations. Since the installation tests, reliability and durability tests. on a floating platform is subject to constant up and down and lateral • The aerodynamic design of HDPE floaters motions, it may add additional stress shall be tested by subjecting them to a on the cable terminations. The present wind tunnel test by imposing wind from practice is to leave additional cable to all directions on real scale and real angle. 88 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Identified Gaps 4.5. Meteorological Measurements • Although broad requirements for testing The tenders specify requirement for measuring: are defined, specific tests to probe reliability of equipment in a FSPV • Solar radiation on module plane installation are not included. • Ambient temperature Recommendations • Wind speed • Specify tests related to corrosion for all • Other weather parameters the BoS components, for example, IEC • Generated Direct Current (DC) & AC Power 61701—Salt Mist Corrosion Severity 7 for modules installed in saline water. Identified Gaps • Include accelerated tests for all critical • There is no reference to applicable components including PV modules, HDPE standards for meteorological floats and inverters. measurements. • Specify a study for marine growth for • Specific measurements of interest for floats. FSPV installations are not included, for • Include a minimum requirement of instance, module temperature, wave, sampling for HDPE floats for testing. current and so on. Additionally, the float manufacturers Recommendations can also offer the product for FAT and facilitate in-process inspection. • Monitor parameters related to wind, wave, current and water temperature for • Evolve a minimum threshold value for floating solar applications, in addition various mechanical properties based to the requirements of IEC 61724-1 on the experiences gained and industry (Photovoltaic system performance - participation. At present, most of the Part 1: Monitoring). standards for determining mechanical properties of floats provide test criteria • Record (periodically) other parameters for measurement of a particular like water quality, fire protection property, but do not define acceptance system for transformers and electrical criteria. resistivity/conductivity of water at various depths. • Include vibration tests for PV modules, inverters, electrical panels, low, high and • Install a test HDPE floater near the medium voltage switchgear and cable project area conduct periodical tests accessories. The vibration test procedure to study changes in mechanical and in the standards simulate the conditions chemical properties. This data will help when the equipment is not energized. in further evolving or developing the Since in FSPV plants the equipment is product. subjected to mechanical stress and cyclic • Mandate logging of transformer operational motion during its operation, the vibration parameters like winding temperature tests can be evolved to simulate actual indicator, Oil temperature indicator, oil operating conditions and testing carried level and control and relay protection out in energized condition. signals of transformers. Review of Technical Standards and Tenders • 89 • Include desired technical specifications 4.7. Other Requirements of the sensors for standardization of requirements along with the number of Identified Gaps sensors. • There is inadequate coverage of the requirements related to transport and logistics, energy assessment, O&M and 4.6. Material Storage at Site HSE to be followed during installation Material storage-related aspects are not covered and the commissioning and operational in detail in any of the SECI tenders63. However, phases. the tender of Vizag64 floating solar project, Recommendations indicates material storage yards along with the categorization for the following: • Submit the methodology for assessments adopted by the Bidder for Energy along • Special storage - air conditioned with bid. Compared to ground mounted • Closed storage installations, the two most important • Semi closed storage parameters which need attention are wave induced mismatch losses and • Open storage cooling effect. The material storage related aspects are • Request submission of risk assessment adequately covered in this tender encompassing and mitigation plan during installation security, demarcation of stored items, and commissioning and O&M phases. housekeeping, mitigation of water logging, lighting, precautions to avoid fire like declaring • Mandate that bidders submit indicative no smoking area, placing fire extinguishers etc. makes of the floats, inverter, PV module and other BoS items along with their Identified Gaps respective conformance to the requisite Material storage related aspects are not covered standards. in detail in most of the tenders. • Include close monitoring of the vulnerable components and proactive inspection Recommendations plan in the O&M requirements. Request bidders to indicate the material • Include relevant guidelines shall be preparation area requirement in the bid included for HSE practices. submission. 63 SECI. (2018, August). SECI Expression of Interest for Empanelment of Consultants for Bathymetric Survey and Hydrographic Survey for SECI’s Floating Solar PV Projects. SECI. (2018, April & September). Request for Selection (RfS) Document for Selection of Solar Power Developers for Setting up of 150 MW (50 MW x 3) Grid Connected Floating Solar Power Projects to be installed at Rihand Dam, Sonbhadra District, Uttar Pradesh under Global Competitive Bidding. 64 Greater Visakhapatnam Smart City Corporation Ltd. (2017, August). RfP for 2MWp grid connected Floating Type Solar PV Power Project on Mudasarlova Reservoir. 90 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 5. Regional co-operation and Status of FSPV in South Asian countries 5 Regional co-operation and Status of FSPV in South Asian countries Various South Asian countries are characterized of 4,217 MW, of which over 50 percent is by similar key features—high population, high thermal-based capacity as shown in Table 5.1. incidence of poverty, low per capita electricity consumption and high dependence on imported The electricity demand peaks in the evening crude oil and petroleum products. Despite each and is around 2,669 MW. The average realized country facing its unique set of challenges, tariff of Ceylon Electricity Board (CEB), the regional co-operation will help in accelerating government-owned largest electricity company the energy transition through knowledge sharing in Sri Lanka with major functions of electricity and an integrated market approach. The generation, transmission, distribution and following sections provide the background of retailing, is significantly lower than its average each country regarding power sector, renewable cost of supply (16.63 Sri Lankan rupees and target, current status followed by lessons 23.29 Sri Lankan rupees66 per unit respectively learned from Sections 2 to 7 and various modes in 2019) and hence it has led to accumulated of knowledge transfer at the regional level. losses over the years. Table 5.1 shows that around 30 percent 5.1. Countries of installed capacity is hydropower and hence electricity generation from the same 5.1.1. Sri Lanka is susceptible to variations during monsoon rainfall. The utility compensates for the 5.1.1.1. Background shortfall by procuring expensive fuel-oil based Sri Lanka has almost universal electrification, generation. The deployment of wind and solar but per capita electricity consumption is only provides an opportunity to lower the country’s around one-fifth of the world’s average. As on dependence on expensive and import led 2019, it has total electricity installed capacity fuel-oil based generation and to ensure energy Table 5.1: Total electricity installed capacity in Sri Lanka as of 202165 Source/Parameters Thermal (Coal & Hydropower Other RE power Total Fuel Oil) (including mini (wind, solar, hydro) biomass) Installed Capacity in MW 1,967 1,399 811 4,177 Generation percent 47 33.5 19.5 100 65 CEB. (2019). Statistical Digest 2019. https://ceb.lk/front_img/img_reports/1601877736Statistical_Digest_2019_Web_Version.pdf 66  16.63 LKR=8.4 cents USD and 23.29 LKR=12 cents USD with conversion rate of 198.95 LKR per USD Regional co-operation and Status of FSPV in South Asian countries • 93 security. Also, it will fulfil climate change 5.1.1.2. FSPV in Sri Lanka mitigation commitments. The first ever floating solar power plant of Sri The government’s policy states that 70 Lanka with 42 kW capacity was commissioned percent of power generation is to come in Jaffna University with Norwegian support through renewables by 2030. A significant in January 2020. This demonstration project part of that would come from wind and solar was the result of collaboration between the as Sri Lanka has already exhausted most of University of Jaffna and the Western Norway its large hydro potential. Also, it is expected University of Applied Sciences. Since then, that the current demand peak in the evening no other floating solar projects have been would shift to daytime due to steady economic commissioned, though a few such efforts are at growth resulting in higher commercial and various stages. industrial demand of electricity during the day. In April 2019, the Governments of Sri Lanka Solar power can cater to the shifting of such and Canada signed a co-operation agreement electricity demand patterns. for the construction of a 100 MW floating solar While Sri Lanka has more than 15,000 park in Sri Lanka’s Maduru Oya Reservoir. This MW of potential each for wind and solar, was envisaged to be developed as part of the only 226 MW of other RE power has been Soorya Bala Sangramaya Phase IV program, installed. There are significant barriers for under which the country aims to add 400 MW realization of the potential. For example, of solar. In September 2020, India offered a limited availability of land and fragmented line of credit worth $100 million for three solar nature of public land holdings pose significant projects including one FSPV project. barriers and delay in securing the permits for A tender for a feasibility study of two large utility-scale projects. Also, due to the 100 MW FSPV projects at Kalawewa tank and poor financial health of the utility, the capacity Udawalawe reservoir has been floated in April to build new capital-intensive transmission 2021 by the Sri Lanka Sustainable Energy infrastructure is limited. Authority. An effort has been initiated by The FSPV offers a solution that can address World Bank to conduct preliminary assessment multiple challenges. While it is relatively of potential ground-mounted or floating solar PV much cheaper than fuel-based sources, connected to existing HPP . it can utilize the existing infrastructure of hydropower thereby avoiding land acquisition 5.1.1.3. Way Forward and building of new transmission lines. If 10 percent area of 25 largest reservoirs is FSPV has not been considered for major considered for FSPV, it would constitute government programs like rooftop solar under around 9 GW, which is more than what is Soorya Bala Sangramaya. FSPV in Sri Lanka needed to meet the 2030 RE target67 of faces similar barriers and challenges to those 4.5 GW to meet 70 percent of electricity of India as mentioned in Section 2.2.2. Most of demand. Even 2.5 percent coverage area, as the recommendations mentioned in Table 2.10 per criteria mentioned in Section 6, would for development of FSPV in India would apply provide a capacity of more than 2 GW to to Sri Lanka too. Given the physical proximity, meet a large proportion of the RE target. Sri Lanka and India can share the supply chain 67 Ralapanawe, V. (2020, January 17). Powering Sri Lanka through renewables: The floating solar opportunity. https://www.ft.lk/ columns/Powering-Sri-Lanka-through-renewables-The-floating-solar-opportunity/4-693740 94 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 and benefit from each other’s learning in the power and off grid renewables) out of which, areas of FSPV. A proposed transmission grid natural gas is around 52 percent, coal and oil is interconnection between India and Sri Lanka 41 percent, hydro is 1 percent, and renewable would further help Sri Lanka to absorb more is 0.6 percent68. More than 95 percent of renewable power as well as export power to population has access to electricity and per India and vice versa. capita electricity consumption is slightly above 500 units. FSPV, especially small ones of 5-10 MW size set up in the existing hydro projects of CEB Solar has been recognized as the primary can increase investor confidence and the renewable source in Bangladesh as the government’s understanding of the technological potential for wind and its ensuing challenges and project development risks. For more than have not been encouraging. Under Bangladesh’s 10 MW projects, detailed GIS-based mapping new Five-Year Plan, the government’s draft needs to be conducted with water surface National Solar Energy Roadmap presents three coverage data to reduce damage to assets scenarios for the future of solar energy. Until due to total evaporation of water. Given that 2041, in the business-as-usual case, solar 30 percent of electricity generation is from capacity is estimated to be 6 GW; for the mid- hydropower which is susceptible to variations in and high-deployment cases, the estimations monsoon rainfall, a virtual battery configuration are 20 GW and 30 GW, respectively. The by integrating FSPV with hydropower would estimation includes largely grid connected alleviate the issue significantly, as described in utility and rooftop solar projects. A floating solar Section 6.1.2.1. of 500 MW capacity on Kaptai lake is also included in this roadmap. 5.1.2. Bangladesh 5.1.2.2. FSPV in Bangladesh 5.1.2.1. Background Bangladesh has one floating solar plant Bangladesh is one of the world’s most rapidly of 10 kW capacity in a pond of Mongla growing developing economies and the vision of Municipality, established by a private developer, the country is to become a high-income country Solar EPC Development Limited. A few projects by 2041. As per this vision, the electricity are under development. For example, a 10 MW demand forecasted by 2041 with base growth floating solar plant is being planned in the same scenario is 62 GW, of which 40 percent of total Mongla pond; Mongla Municipality will be an electricity generation will come from renewable equity partner as owner of the waterbody, while sources. two companies will set up the project as an IPP . As on May 2021, Bangladesh has total installed In May 2021, a feasibility study was conducted electricity capacity of 22 GW (excluding captive to identify 50 MW floating solar capacity in a Table 5.2: Total electricity installed capacity in Bangladesh as of Jan 2023 Source Natural Coal & Oil Hydro Renewable Import Total Gas (Solar PV) Installed Capacity in MW 11,522 10,311 230 259 1,160 23,482 Installed capacity in percent 49 43 1 1 5 100 68 Bangladesh Power Development Board. (2021, May 17). Present Installed Generation Capacity (MW) as on 17 May 2021. https://www.bpdb.gov.bd/bpdb_new/index.php/site/page/13e9-2cc0-ce41-9c09-088d-94d5-f546-04a6-b4fa-1d18 Regional co-operation and Status of FSPV in South Asian countries • 95 waterbody created after the extraction of coal to meet the 30 GW of high deployment case from Barapukuria coal mine in Dinajpur. There of solar by 2041. is also a plan to develop floating solar on Kaptai lake with the support of ADB. To date, no nationwide consolidated study has been conducted on the feasibility of developing floating solar PV systems. A study would 5.1.2.3. Way Forward help identify potential sites for floating solar Bangladesh is a highly populated and and set targets for RE. The recommendations agriculture-dominated economy and hence mentioned in Table 2.10 would apply well the competition for land is fierce. As ground- to Bangladesh too. Also, integration of FSPV mounted solar requires a large tranche of land, with TPPs, as explained in Section 6.2, can this will always pose a challenge. Further, land be explored. Given the physical proximity with acquisition is a complicated and long process. India, both India and Bangladesh can share the For energy security, Bangladesh has traditionally same supply chain of FSPV and complement relied on fossil fuel-based power plants; it had each other wherever possible. more than 25 coal-based power plants in the pipeline by end of 2019. However, due to 5.1.3. Pakistan environmental concerns, difficulty in financing, and renewables getting cheaper, many 5.1.3.1. Background previously approved coal-based power projects The installed power generation capacity are being closed. of Pakistan as on June 30, 2020, stands FSPV can circumvent the issue of land at 38,719 MW; 24,817 MW is thermal, availability and higher electricity prices due to 9,861 MW hydroelectric, 1,248 MW wind, expensive imported fossil fuels. Bangladesh is and 530 MW solar. In FY 2019-20, Pakistan a riverine country, and it has a vast multitude generated 134,745.70 GWh where 31 percent of irrigation canals, low-lying lands, haors, was generated by natural gas, 14 percent by baors (wetlands); FSPV can be developed in furnace oil, 16 percent by coal, 29 percent by these waterbodies. Water levels may drop hydropower and 5 percent by renewable. The during low-rainfall months—in these cases, high cost of electricity is a major challenge for a hybrid model of FSPV with a bed-like Pakistan which is endeavoring to shift to green structure at the bottom can be considered. and affordable sources of power. If 10 percent area of shallow waterbodies of As per the Alternative and Renewable Energy 250,000 hectares is considered, 25 GW of Policy 2019, the RE generation capacity will be floating solar can be developed. There would increased from current 5 percent to 20 percent be more than 20 GW of additional potential by 2025 and to 30 percent by 2030. This will from Kaptai lake, Padma river, and 150,000 require Pakistan to install around 24,000 MW hectares of pond. Collectively, this is enough of solar and wind by 2030. Table 5.3: Total electricity installed capacity in Pakistan as of June 2022 Source Thermal Hydro Renewable Nuclear & Total (Wind, Solar, small captive Bagasse) power plant Installed Capacity in MW 26,683 10,635 2,837 3,620 43,775 Generation in percent in FY 2019-20 61 24 6.5 8 100 96 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Pakistan has good wind and solar resources Pakistan can suitably utilize the reservoirs but harnessing of this potential has been slow. available at thermal and hydropower plants. According to the World Bank69, utilizing just Also, learnings from Section 5.3 can be used for 0.071 percent of the country’s area for solar the development of FSPV on lakes. PV (solar PV) power generation would meet Pakistan’s current electricity demand. Pakistan has several well-known wind corridors but less 5.1.4. Afghanistan than 10 percent potential is utilized. 5.1.4.1. Background Afghanistan is one of the least developed 5.1.3.2. FSPV in Pakistan countries in the world with less than 40 There is no floating solar project in operation as percent of the population having access to yet in Pakistan, though significant progress is electricity. It has about 600 MW of electricity underway towards realization of the same. As installed capacity, of which 49 percent is mentioned in Section 6.1.2.2, the University of hydropower, 3 percent is solar and rest is Lahore scientists modelled the implementation thermal and diesel generator. Afghanistan of FSPV at the 1.45 GW Ghazi Barotha Dam, relies heavily on electricity imports and which features five generating units with about 70 percent of the power supply is from about 290 MW of capacity each. In 2019, the neighbouring countries. Floating Solar Project was initiated by the World The Afghanistan National Renewable Energy Bank and the Water & Power Development Policy 2015 sets a target of deployment of Authority (WAPDA) of Pakistan. The plan is 4,500-5,000 MW of renewable capacity by to install floating solar projects of 150 MW 2032. Afghanistan has huge potential for each on Barotha & Ghazi Lakes and 25 MW renewables—222 GW of solar, 66 GW of wind on Tarbela reservoir. In this regard, a feasibility and 23 GW of hydropower. However, most of study on the 150 MW Floating Solar Project on the RE projects are grant-funded projects which Barotha lake has been completed and further while providing an impetus, cannot match the progress is underway. requirements. Hence, realization of the potential is limited. The Renewable Energy Policy 5.1.3.3. Way Forward envisions a transition to a fully private sector- led industry by 2032. Pakistan faces issues and challenges similar to those of India. Pakistan should start 5.1.4.2. FSPV in Afghanistan with a country-wide GIS mapping of all its waterbodies, taking a cue from the work done Afghanistan does not yet have a floating by TERI in India. Once the long-list is prepared, solar plant but it does have three operational it can be reduced to 50 best possible locations ground-mounted solar power plants currently where FSPV plants can be set up immediately. in Kandahar, Bamiyan and Herat provinces. Such a mapping exercise, funded by multilateral However, few efforts are on for realization agencies, would increase investors’ confidence, of FSPV. reduce the basic uncertainties and data gap, and kick-start the process for detailed In September 2018, ADB approved technical techno-commercial analysis and project assistance for floating solar project at the implementation. Qargha reservoir. In September 2020, 69 The World Bank. (2020, November 10). Expanding Renewable Energy in Pakistan’s Electricity Mix https://www.worldbank.org/en/ news/feature/2020/11/09/a-renewable-energy-future-for-pakistans-power-system Regional co-operation and Status of FSPV in South Asian countries • 97 Phelan Energy Group Limited announced The dispersed nature of the islands and high that it would develop, in collaboration with reliance on imported diesel for electricity a local partner and VGF from the USAID, a production has posed challenges in delivering 24 MW floating solar project on a dam in secure electricity at an affordable rate. Kabul province. The project is currently in the Increasing the amount of government spending procurement stage. on subsidies to the electricity sector has caused a significant strain to the government’s budget. Large-scale adaptation of RE technologies such 5.1.4.3. Way Forward as solar PV is an effective approach to address As 50 percent of installed capacity is these challenges. hydropower (with the issue of water scarcity), FSPV can be integrated with hydropower Considering these challenges, the National as described in Section 5.1. However, with Strategic Action Plan (2019-2023) set targets available land resources and good potential to increase the share of RE by 20 percent by for wind and solar, a preference for ground 2023, compared to 2018 levels, and ramp it mounted solar would dominate the RE up to 70 percent by 2030. penetration in the country and hence a large- scale FSPV installation in the near future is not 5.1.5.2. Offshore Solar in Maldives envisaged. Maldives, being an island country, offshore solar (and not floating solar) has a great 5.1.5. Maldives potential to scale up and fulfil the renewable target. However, offshore solar poses far more 5.1.5.1. Background challenges than floating solar due to its harsh Maldives comprises 1,192 small islands operating environment of humidity, salinity grouped into 26 atolls in the central Indian and wind and wave loads. Globally, offshore Ocean with a population estimated at 533,941 solar is at an early stage of development and people in 2019. Along with 187 islands there is insufficient experience in this area. inhabited by the Maldivian population, 123 However, this presents an opportunity to invest islands are self-contained tourist resorts, in technology development in cooperation with and 128 are primarily used for industry and countries such as Netherlands that have already commerce. Each region needs its own power begun R&D for offshore conditions. generation and distribution system and relies heavily on imported diesel for electricity. Areas near shore, such as harbours, jetty areas and docks, are being explored as sites for the Overall, Maldives is highly dependent on establishment of offshore solar as they are not imported oil and diesel which remains exposed to high wind and wave loads. Given the main source of power generation with the benign conditions in these nearshore areas, 80 percent contribution in the energy mix; many of the experiences and technology from petrol, aviation gas, and Liquefied Petroleum FSPV can be applied and such areas provide a Gas constitute 12 percent, 6 percent and huge opportunity in itself. 2 percent, respectively. By 2020, a total of about 354 MW capacity diesel generators were installed in inhabited islands, resort 5.1.5.3. Way Forward islands and industrial islands. A total of FSPV with suitable customization for nearshore 21.5 MW of RE systems are installed across can be explored. To harness such opportunities, the country. it is important to have surveys done for 98 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 such regions to understand and quantify the 5.1.6.2. FSPV in Nepal environmental conditions. Guidelines and best As of now, no floating solar project is being practices for FSPV as included in Section 4 and developed or planned in Nepal. the Guidance Document (issued separately) can be suitably customized for such conditions. Surveys would provide a list of best regions 5.1.6.3. Way Forward along with the suitable guidelines to develop FSPV can be integrated to hydropower FSPV at scale. and irrigation reservoirs and learnings from Section 6.1 can be suitably utilized. India can 5.1.6. Nepal take initiative as it has traditionally collaborated in construction of hydropower projects in Nepal 5.1.6.1. Background and FSPV can be integrated with these projects. Given that there are challenges for development Nepal is a landlocked country in South Asia of ground mounted solar and wind at large scale and contains 8 of the world’s 10 highest peaks due to rugged terrain, FSPV can be the major including Mount Everest. It has a population avenue for energy transition. of 29.6 million with electricity per capita consumption of less than 300 units. Nepal has around 1,320 MW of hydropower as of 2020 5.1.7. Bhutan out of the huge potential of 40 GW. Other 5.1.7.1. Background electricity sources include diesel generator (53.4 MW), while 340 MW was imported from Bhutan is a landlocked country in South Asia India in 2020. Nepal’s currently installed solar located in the Eastern Himalayas. The country’s capacity is ~60 MW and much of this is in landscape ranges from sub-alpine mountains in the form of more than one million small home the North to subtropical plains in the South. The systems that are not grid-connected. supply of electricity is dominated by hydropower. The country generates surplus power during the Nepal’s ambition is to increase clean and RE monsoon season from its run-of-river hydropower production tenfold to 15,000 MW by 2030. infrastructure and the surplus power is exported. As Nepal has low potential for the large- A significant portion of total electricity generation scale utilization of wind energy, a large part is exported to India, which has increased steadily of new RE would come from hydropower and from 2000 to 2017 when 74 percent of total solar. However, relying alone on hydropower generation was reported to be exported. has limitations as, during the dry season, a decrease in the river flow adversely impacts Bhutan has total installed generating capacity electricity generation. Solar seems to be the of 2,326 MW from hydropower as on 2019 other cheaper and greener source, but due to out of the total hydropower potential of 30 GW. the rugged terrain and 70 percent of the region By 2025, it is estimated that the country’s being hilly, ground mounted solar projects hydro capacity will be 5,264 MW owing to are challenging. This is where floating solar under-construction and pipeline projects with has good prospects as it could be used in additional capacity of 589 MW70. conjunction with irrigation reservoirs to prevent the evaporation of water and also in conjunction With regard to floating solar, there is no with hydropower reservoirs to provide an project in Bhutan as yet, but waterbodies auxiliary means of power generation. and hydropower reservoirs could be potential 70 Royal Government of Bhutan. (2018, June). National Transmission Grid Master Plan (NTGMP) of Bhutan-2018. https://www.moea. gov.bt/wp-content/uploads/2018/11/National-Transmission-Grid-Master-Plan-2018.pdf Regional co-operation and Status of FSPV in South Asian countries • 99 sources. Detailed feasibility studies would be • India has made significant progress essential to assess the viability of such projects. compared to other countries in South Asia. 5.1.7.2. FSPV in Bhutan • Sri Lanka and Bangladesh have demonstration projects in operation, As of now, no floating solar project is developed while feasibility studies for a few MW size or planned in Bhutan. projects are being conducted. • Pakistan and Afghanistan have plans for 5.1.7.3. Way Forward MW size floating solar projects. A detailed feasibility study to integrate FSPV • Nepal and Bhutan have no plans for into hydropower should be conducted to assess FSPV. the benefit. Learnings from Section 5.1 can be suitably utilized. As in the case of Nepal, • Maldives will have offshore solar which is India can take initiative as it has cooperation more challenging than floating solar due with Bhutan for the construction of hydropower to the operating conditions in the sea. projects, as mentioned in Section 5.4.2. However, nearshore areas with benign conditions in Maldives can have FSPV with suitable customization. 5.2. Lessons Learned It is important to recognize that the The key drivers for floating solar would be development of floating solar worldwide is different for different South Asian countries as gaining importance. shown in Table 5.4. Table 5.4: Key drivers for floating solar in South Asian countries Country Key Drivers Challenges/Comments Sri Lanka Competing use of land, predominance No exclusive focus on FSPV, challenge to collect of hydropower (30 percent), large FSPV information across various agencies. potential to complement hydropower. Bangladesh High population density, scarcity of No prioritized focus on FSPV, challenge of data land, unsuitable wind resource, FSPV collection from several agencies, requirement of primary avenue for energy transition. roadmap study. Possibility of setting up near-shore systems on the atoll-side can be examined in detail. Afghanistan Lowest per capita electricity Security issue, support from India and Middle East consumption, 49 percent hydro, donor can help develop FSPV, but ground mounted solar driven development, possibility of would be preferred due to large availability of land. hydropower optimization. Maldives More than 1,000 islands, largely fuel Concerted efforts by the World Bank, offshore based, potential of offshore solar. solar could be more challenging, FSPV with customization can be explored in nearshore areas. Pakistan 29 percent Hydropower, 164 dams, Early efforts by WAPDA. Big scope for using the hydropower optimisation, water large dams to generate solar power. In Sindh conservation and energy affordability. region, the long canals can have some amount of FSPV to check evaporation losses and also generate power at the tail-end of the grid. Nepal & Rugged land, largely hydropower, No efforts so far. India can take the initiative and Bhutan collaboration with India. include FSPV in already ongoing engagement on hydropower. 100 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 As other countries in South Asia are at an like Nepal, Bhutan, Afghanistan and Sri Lanka, earlier stage than India for FSPV development, where hydropower is the major source of power. the set of challenges faced by India would also Similarly, business models for deployment be faced by other countries in due course of of floating solar on lakes can be used for development. Hence, the learnings from the Bangladesh and Pakistan. current assessment could be applied to most of the countries at different stages of market 5.4. Knowledge Transfer development. As mentioned before, India has made It is important that a survey is conducted to significant progress in FSPV in comparison to assess the full realisable potential and quantify other countries in South Asia and can facilitate the importance of the same to be included the knowledge transfer at a regional level in the national planning. The summary of through the following ways: recommendations as mentioned in Table 2.10 1. Regional forums of Section 2.3 would apply to the countries listed with different degrees of importance, ŒŒ ISA except for Maldives where offshore solar ŒŒ SAREH under USAID requires more rigorous design criteria though ŒŒ IRENA: Investment forums in South many of he technical practices from FSPV Asia would be applicable. ŒŒ SAARC Expert Group on Renewable It should be noted that India can play a bigger Energy role in the whole value chain of floating solar for ŒŒ United Nations; ESCAP all the South Asian countries. Given the issues 2. Bilateral relations associated with transportation of floaters and to achieve economies of scale, it is important 3. Joint conferences and initiatives that a reasonably large size (20 MW and above or small sizes in cluster to utilize the same A short description of the above-mentioned manufacturing base) project is developed to modes of knowledge transfer is provided allow the manufacturing of floaters near the below. project site. All countries in South Asia will encounter 5.4.1. Regional Forums the issue of guidelines and standardization. There are several regional forums which are The Guidance Document (issued separately) working in South Asia in the areas of energy can be used after suitably customizing it security and energy transition. None of these for local conditions. Similarly, training and forums have included floating solar in their capacity building would be required and program yet. Hence, it is important to raise recommendations from Section 1 can be awareness about the importance of floating customized to suit the local size of the market solar so that these forums can recognize and level of upskilling, depending on the this and include FSPV in their programs. maturity of other parallel industries. Such awareness can be generated through workshops, dissemination programs and 5.3. Deployment Model meeting with key personnel from the forum. Below are some the of the important forums Deployment models for integration of floating working in the area of energy in South Asia. solar with HPP can be utilized for countries Regional co-operation and Status of FSPV in South Asian countries • 101 5.4.1.1. ISA Maldives. There are several projects and activities related to ground-mounted and rooftop ISA was conceived as a coalition of solar- solar, solar mini-grids and solar E-mobility resource-rich countries to address their and storage and due focus is also on the special energy needs. ISA aims to provide a capacity building as well as maintenance of dedicated platform for cooperation among such an online platform (Infopedia) dedicated to the countries, through which the global community dissemination of information, best practices (governments, bilateral and multilateral and knowledge. However, floating solar is organizations, corporates, industry, and other not yet included in any of the programs and stakeholders) can contribute to help achieve the activities. Hence, ISA would be an appropriate common goal of increasing the use and quality forum where floating solar can be included in of solar energy in meeting energy needs of ISA capacity building, online platform creation and member countries. a few projects for demonstration and knowledge As guided by the Framework Agreement of transfer. India, being the President of ISA, ISA, the interests and objectives of ISA are as should be able to use ISA for the knowledge follows: transfer of floating solar. • Collectively address key common challenges to scale up solar energy 5.4.1.2. SAREH under USAID applications in line with their needs. In 2018, the U.S. launched the Asia Enhancing • Mobilize investments of more than Development and Growth through Energy $1000 billion by 2030. (Asia EDGE) initiative to support the growth • Take coordinated action through program of sustainable and secure energy markets and activities launched on a voluntary in the Indo-Pacific region. To support the basis, aimed at better harmonization, implementation of Asia EDGE in South Asia, aggregation of demand, risk and USAID/India established the SAREH. USAID/ resources, for promoting solar finance, India coordinates and communicates all Asia solar technologies, innovation, R&D, and EDGE activities within South Asia through the capacity building. SAREH platform. The United States Energy Association is SAREH’s implementing partner. • Reduce the cost of finance to increase investments in solar energy in member SAREH’s overarching objective is to support countries by promoting innovative USAID to achieve enhanced development and financial mechanisms and mobilizing growth throughout the energy sector, specifically finance from institutions. focusing on the following: • Scale up applications of solar • Strengthening the energy security of technologies in member countries. South Asia partner countries • Facilitate collaborative R&D activities in • Creating open, efficient, rule-based and solar energy technologies among member transparent energy markets countries. • Improving free, fair, and reciprocal energy • Promote a common cyber platform for relations networking, co-operation and exchange of • Expanding access to affordable and ideas among member countries. reliable energy Currently, ISA has 76 member countries SAREH aids Asia EDGE interventions in including India, Sri Lanka, Bangladesh and Bangladesh, Bhutan, India, Nepal, Sri Lanka, 102 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 and the Maldives, and facilitates coordination the economic, social, cultural, technical and and collaboration between them, while creating scientific fields; to strengthen co-operation new avenues for private sector participation. among themselves in international forums on SAREH focuses on three interventions: matters of common interests; and to cooperate coordination, communication, and technical with international and regional organizations support. Floating solar could be among with similar aims and purposes. the interventions that SAREH considers for South Asia. The process of regional cooperation in the energy sector began in 2000 with the establishment of a Technical Committee 5.4.1.3. IRENA: Investment Forums in on Energy. The Council of Ministers, while South Asia recognizing the importance of focused attention The South Asia Investment Forum aims to for this vital area, approved creation of a scale up RE investments in the region, support specialized Working Group on Energy in 2004. project development and implementation, Within Energy, there is an Expert Group on and contribute to the creation of policy and Renewable Energy (Lead Country Pakistan) that regulatory frameworks conducive to RE can be suitably used for knowledge transfer of investments. floating solar. The regional forum is part of IRENA’s contribution to the Climate Investment Platform, 5.4.1.5. United Nations; ESCAP which aims to advance sustainable energy ESCAP serves as the United Nations’ regional projects to investment maturity and facilitate hub promoting cooperation among countries to their access to finance. achieve inclusive and sustainable development. The largest regional intergovernmental platform Key forum activities include matchmaking with 53 member states and 9 associate between projects, project developers, and members, ESCAP has emerged as a strong potential financiers, and investors. RE projects, regional think-tank, offering countries sound along with renewable-based electricity grid and analytical products that shed insight into the energy efficiency projects, are considered for evolving economic, social, and environmental support. The South Asia Investment Forum can dynamics of the region. be requested to fund the early floating solar projects in South Asia. The overall objective of ESCAP is to promote inclusive and sustainable economic and social development in the Asia-Pacific region, with 5.4.1.4. SAARC Expert Group on RE priority accorded to the implementation of the SAARC was established with the signing of 2030 Agenda for Sustainable Development the SAARC Charter in 1985. SAARC has eight and the achievement of the Sustainable member states: Afghanistan, Bangladesh, Development Goals. ESCAP pursues this Bhutan, India, Maldives, Nepal, Pakistan, and objective by carrying out work, in close Sri Lanka. cooperation with other United Nations entities and intergovernmental organizations in the SAARC’s objectives, as outlined in the Charter, region, in many areas including Energy. The are to promote the welfare of the people of forum of ESCAP can be suitably utilized South Asia and to improve their quality of life; for integration of floating solar in the UN’s to accelerate economic growth; to promote development programs in South Asia and for active collaboration and mutual assistance in overall knowledge transfer of the same. Regional co-operation and Status of FSPV in South Asian countries • 103 5.4.2. Bilateral Relations usage through the installation of rooftop units and commissioning of floating solar power Being ahead in the development of floating plants in Sri Lanka. solar, India can undertake capacity building and knowledge transfer related to floating Similarly, various projects including the solar for other South Asian countries. India is implementation of India-Bangladesh Friendship engaged with many of the countries bilaterally Pipeline, and Maitree Super Thermal Power for energy cooperation, and development of Project are underway in Bangladesh and India floating solar could be part of this bilateral can include floating solar too in the bilateral agreement and commitment. For example, the cooperation agenda. hydropower projects are an example of win- win cooperation between India and Bhutan. 5.4.3. Joint Conferences and Initiatives India has so far constructed four hydroelectric projects in Bhutan and three more hydroelectric It is in the interest of India to take the initiative projects are under construction. India can to integrate the market ecosystem for FSPV at consider floating solar to be integrated the South Asia level. Cooperation at South Asia with hydropower while developing projects level would provide the economies of scale and in Bhutan. Similar collaboration through exchange of experiences which would bring integrated hydropower with floating solar can down the prices. It would help many Indian be forged with Nepal too. companies active in FSPV play a leading role in other South Asian countries as well. Hence, India and Sri Lanka are already working on a India should proactively work to organize joint $100 million credit line by India in the solar conferences and capacity-building programs power sector of Sri Lanka. This multi-pronged and help to conduct feasibility studies in other project envisages enhancement of solar power countries. 104 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Appendix APPENDIX A: Details of Stakeholders The details of stakeholders selected for initial FSPV plants) or those from parallel consultations are presented in Table A.1 industries with expertise relevant to FSPV below, along with categorization into ‘Well projects - on plastic materials, manufacturing, established’ and ‘Prospective’. The ‘Well maritime projects etc. The ‘Prospective’ established’ category includes those players category includes those stakeholders who can who have already had a role to play in the contribute to the upscaling of FSPV industry Indian solar industry (ground mounted or the in India. Table A.1 Category Stakeholder Category Rationale for selection Government National Hydro Well established Largest organisation for hydropower in India, Power Corporation early initiatives taken (NHPC) NTPC Well established Largest power utility in India, early initiatives taken SECI Well established Facilitator for implementation of NSM MNRE Well established Policy driver CWC Prospective Premier technical organization of India in the field of Water Resources, provide inputs on feasibility and input data MoEFCC Well established Nodal agency for environmental and forestry policies and programmes, inputs on regulations and ESIA impacts of floating plants NGT Well established Dedicated jurisdiction on environmental matters, inputs on regulations and ESIA impacts of floating plants Fisheries department Prospective Stakeholder for alternate livelihood which might be impacted by FSPV projects Oil and Natural Gas Well established Largest crude oil and natural gas Company in Corporation (ONGC) India, early initiatives taken in line with the vision to enter solar development State Maharashtra Prospective Policy driver, early initiatives taken in floating Governments installations Kerala Prospective Policy driver, early initiatives taken in floating installations Odisha Prospective Policy driver, early initiatives taken in floating installations Madhya Pradesh Prospective Policy driver, early initiatives taken in floating installations Uttar Pradesh Prospective Policy driver, early initiatives taken in floating installations Telangana Prospective Policy driver, early initiatives taken in floating installations Appendix • 107 Category Stakeholder Category Rationale for selection Andhra Pradesh Prospective Policy driver, early initiatives taken in floating installations Utilities Power Grid Well established Owner of evacuation infrastructure Corporation of India Limited (PGCIL) Kerala State Well established Owner of floating plant Electricity Board (KSEB) Regulatory Central Electricity Well established   Body Authority (CEA) CERC Well established   Municipal Vizag Prospective Early initiatives taken in floating installations corporation Greater Mumbai Prospective Early initiatives taken in floating installations Indore Prospective Early initiatives taken in floating installations Kakinada Prospective Early initiatives taken in floating installations Kolkata Prospective Early initiatives taken in floating installations Owners of Bhakra Beas Prospective Third largest installed hydropower capacity waterbodies Management Board in India and also operates 98 km long water conductor system including channels & tunnels State Irrigation Prospective   departments Damodar Valley Prospective Owner of thermal and hydel power stations Corporation (DVC) in West Bengal and Jharkhand Bihar Directorate of Prospective Bihar Govt organisation owing waterbodies Fisheries and developing FSPV Karnataka Urban Prospective Floated tender for FSPV on Build, Own, Water Supply and Operate model Drainage Board Central Mine Prospective State owned coal mining corporate Planning & Design Institute Limited Lenders IREDA Well established Non-Banking Financial Institution promoting new and renewable sources of energy and energy efficiency and conservation L&T Finance, Well established Active in financing of renewable projects L&T IDF State Bank of India Well established Active in financing of renewable projects (SBI) Tata Capital Well established Active in financing of renewable projects Investors Actis Well established Active in investments in the Indian market Canada Pension Well established Active in investments in the Indian market Plan Investment Board 108 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Category Stakeholder Category Rationale for selection National Investment Well established India’s first infrastructure specific investment and Infrastructure fund set up by the GoI, collaborative Fund investment platform for international and Indian investors Caisse de dépôt et Well established Active in investments in the Indian market placement du Québec JP Morgan Well established Active in investments in the Indian market Abu Dhabi Well established Active in investments in the Indian market Investment Authority Potential Jaypee Prospective Diversified Indian infrastructural industrial movers/ conglomerate Prospective JSW Prospective Diversified Indian multinational conglomerate players/Parallel industries/ Reliance Industries Well established Integrated player across energy, materials Master batchers (petrochemicals) Indian Oil Corporation Well established Diversified energy major in oil, gas, Limited petrochemicals and alternative energy sources Sintex Plastics Prospective Parallel industry Technology Limited Vectus Industries Ltd Prospective Parallel industry Alok Masterbatches Well established Master batcher Polyblend Well established Master batcher Masterbatch Technik AVH Polychem Ltd Well established Plastic manufacturer ONGC Petro Well established Plastic manufacturer, downstream integration Additions Ltd for ONGC MEHR Petrochemical Well established Plastic manufacturer Company The DOW Chemical Well established Plastic manufacturer Company JAM Petrochemical Well established Plastic manufacturer company Saudi Arabia’s Basic Well established Plastic manufacturer Industries Corporation Mitsubishi Well established Plastic manufacturer Engineering Plastics LG Chem Well established Plastic manufacturer Kamal Polyplast Well established Plastic manufacturer Milacron India Prospective Injection & Blow Moulding Machines Private Limited Manufacturer Toshiba Machine Prospective Injection Moulding Machines (Chennai) Private Limited Appendix • 109 Category Stakeholder Category Rationale for selection Neoplast Prospective Machine manufacturer Engineering Pvt. Ltd. Fixopan Machines Prospective Rotomolding Machine manufacturer Pvt. Ltd. N. A. Roto Machine Prospective Rotomolding, Blow moulding Machine & Moulds India manufacturer Shyam Plastic Prospective Blow Moulding Machines Industries Shree Momai Prospective Rotomolding Machine manufacturer Rotocast Containers Private Limited Polymechplast Prospective Injection & Blow Moulding Machines Machines Ltd. Manufacturer Deesha Impex Prospective Manufacturer of test equipment, injection moulding machines Esemplast Prospective Injection Moulding Machines Prikan Machinery Prospective Injection Moulding Machines Private Limited Jagmohan Pla Mach Prospective Blow Moulding Machines Pvt Ltd G S Machinery Prospective Injection and Blow Moulding Machines ACME Drinktec Prospective Moulds and dies Solutions LLP Blow Engineering Prospective Blow Moulding Machines Torrenza Mould Craft Prospective Plastic Injection Moulds & Dies Pvt Ltd Bloomseal Prospective Manufacturers of Plastic containers in India GLS Polymers Pvt Prospective To bring in industry challenges on design, Ltd, Bengaluru manufacturing, scalability, cost PlastIndia Prospective Knowledge transfer, manufacturing capacity Foundation identification, identifying growth drivers, recycling Indian Plastics Prospective Industry association for locally available Institute, Mumbai manufacturing & testing facilities Polyene Group Prospective Blow moulded products All India Plastic Prospective Largest and the oldest apex body of plastic Manufacturers machine manufacturers in India - knowledge association of India transfer, manufacturing capacity identification, identifying growth drivers, recycling Float Ciel & Terre Well established International experience and installed capacity manufacturers Sungrow Well established Installed capacity Adtech Well established Indigenous supplier, early installations Quant Solar Well established Indigenous supplier, early installations 110 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Category Stakeholder Category Rationale for selection Sheetal/Prabh Dayal/ Well established Indigenous supplier, early installations Ram Setu Oceansun Well established Offshore/Nearshore expertise Oceans of Energy Prospective Experience in the industry ISI genere Well established Experience in the industry Sumitomo Mitsui Well established Experience in the industry, Japanese manufacturer LG CNS Well established Experience in the industry, South Korean manufacturer NRG Energia Well established Experience in the industry ZIM float Well established Experience in the industry Moss Maritime Well established Experience in the industry Scotra Well established Experience in the industry NemoEng Prospective Experience in the industry, Korean manufacturer Profloating B.V Prospective Experience in the industry, Dutch manufacturer Floating Solar B.V Prospective Experience in the industry, Dutch manufacturer Texel4Trading Prospective Experience in the industry, Dutch manufacturer Swimsol Prospective Experience in the industry, Dutch manufacturer HydroPV Prospective Experience in the industry, Dutch manufacturer SunFloat Prospective Experience in the industry, Dutch manufacturer Sun Rise E&T Prospective Experience in the industry, Taiwanese Corporation manufacturer Bosch Xiamen new Prospective Experience in the industry, Chinese Energy manufacturer Kyoraku Co. Ltd Prospective Experience in the industry, Japanese manufacturer Xiamen Mibet New Prospective Experience in the industry, Chinese Energy Co. Ltd manufacturer SolarisFloat Prospective Experience in the industry, Potuguese manufacturer Vari Pontoons Pvt Prospective Indigenous player and presence in floating Ltd. technology for various industrial applications Jain Tarang Prospective Indigenous manufacturer and presence in Irrigation Systems ground mounting solutions Appendix • 111 Category Stakeholder Category Rationale for selection Anchoring Seaflex Well established Experience in the industry manufacturers/ Hazelett Marine Well established Experience in the industry anchoring service HCM Marine Well established Experience in the industry providers/Diver Constructions organisations Rock & Reef Pvt Ltd Prospective Experience in the industry Bluefin marine Prospective Experience in the industry Mooreast Asia Prospective Mooring solutions Pte. Ltd. Mech Marine Prospective Mooring solutions Duke offshore Prospective Experience in the industry Module Trina Solar Well established One of the top module suppliers globally manufacturers Adani Well established Indigenous manufacturer (selected players) Renewsys Well established Indigenous manufacturer Jinko Solar Well established Top module supplier to India JA Solar Well established Top module supplier to India LONGi Solar Well established Top module supplier to India Risen Energy Well established Top module supplier to India TATA Power Solar Well established Indigenous manufacturer Inverter Sungrow Well established One of the top inverter suppliers to India manufacturer Huawei Well established Top string inverter supplier (selected players) Fimer Well established Local manufacturing, one of the top suppliers BoS Polycab Well established Leading indigenous cable manufacturer manufacturers Trinity Touch Well established Leading Indigenous SCB manufacturer (selected players) ABB Well established MV equipment manufacturer Raychem RPG Well established Diversified manufacturer (cable and Pvt Ltd transformer) Testing RWDI Well established Structural testing agencies Central Institute of Well established Research, knowledge transfer Plastics Engineering & Technology (CIPET) NAL Prospective Structural testing National Wind Well established Structural testing Tunnel Facility, Indian Institute of Technology (IIT) Kanpur Department of Well established Structural testing Ocean Engineering, IIT Chennai IIT, Kharagpur Well established Structural testing 112 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Category Stakeholder Category Rationale for selection National Institute of Well established Structural testing Ocean Technology Intertek Well established Material testing BIS Well established Testing CPP Well established Structural testing Surveyors Fugro Well established World's leading provider of geo-intelligence and asset integrity solutions for large constructions, infrastructure and natural resources Shankar Surveys Well established Indigenous surveyor Idax Consulting and Prospective Indigenous surveyor Research Pvt Ltd New Horizon Surveys Prospective Indigenous surveyor Comacoe Engineering Prospective Indigenous surveyor Geo Marine Well established Indigenous surveyor Solutions Pvt Ltd Deekay Marine Well established Indigenous surveyor Services Pvt Ltd Ocean science and Well established Indigenous surveyor surveying Pvt Ltd Yolax Infranergy Prospective Indigenous surveyor Private Limited Geostar surveys Well established Indigenous surveyor Design Tractabel Well established   consultancies The Energy and Well established   Resources Institute Aryatech Marine & Prospective Marine and Offshore Engineering and Offshore Services Consultancy Company Pvt. Ltd WAPCOS Prospective   Oceanergy Prospective   Oiltech Engineering Prospective   Tata Consulting Well established   Engineers Developers/IPP Sungrow Well established Experience in the industry, presence across value chain Adani Well established Large IPP Lightsource Well established Experience in UK Renewable Renew Power Well established Large IPP Bay Wa r.e. Well established Experience in the industry O2 Power Well established Experience in the industry Appendix • 113 Category Stakeholder Category Rationale for selection SunSource Energy Well established Experience in the industry Ayana Well established Experience in the industry Masdar Well established Initiative in SE Asia EPC contractors TATA Power solar Well established Experience in the industry Kyocera Well established Experience in the industry, module manufacturer L&T ECC Well established Experience in the industry Mahindra Susten Well established Experience in the industry BHEL Well established Experience in the industry Sterling & Wilson Well established Experience in the industry O&M Sterling & Wilson Well established Experience in the industry contractors Mahindra Susten/ Well established Experience in the industry Teqo Research National Institute of Prospective Research and knowledge transfer organisations/ Oceanography, Goa academic Solar Energy Well established Early research institutions Research Institute of Singapore Department Prospective Research and knowledge transfer of Hydro and Renewable Energy (formerly Alternate Hydro Energy Centre) IIT Roorkee IIT, Chennai Prospective General information on types of plastics and their applications relevant to floating solar plants IIT, Mumbai Prospective Research, testing and knowledge transfer Industry experts Dr Nanda Kumar, - Information on additive manufacturing in in plastic Technical Director plastics manufacturing S.R. Anujan, - Knowledge on manufacturing processes and Freelance advantages/disadvantages Consultant, Plastics Manufacturing Recyclers Shakti Plastics Well established   (preliminary AP Chemi Well established   list) Gravita India Well established   Global PlastChem Well established   Thermowaste Well established   solutions Skill Skill council of Well established Nodal agency for skill development in India development Green jobs Insurance Marsh Well established Insurance provider for renewable industry Chubb Well established Insurance provider for renewable industry Bajaj Allianz Well established Insurance provider for renewable industry Willis Towers Watson Well established Insurance provider for renewable industry 114 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 The distribution of the various stakeholders consulted is depicted in Figure A.1. Figure A.1 Total Consultations - 44 7 6 5 4 3 2 1 0 Govt. Corporation Design Consultancy Recyclers manufacturers Plastic expert Insurance Regulatory Body Float Surveyors State Government Anchoring/Mooring Bos Manufacturers Research manufacturers Agency Lender EPC/O&M Parallel Industry Skill Development Investor Inverter Developer State Utility Testing Agency Organisation Waterbody Owners Manufacturer The details of float and anchoring system manufacturers consulted is given in the Table A.2. Table A.2 Service Stakeholder Country Years of International Installed Name existence (As Presence Capacity on Mar’21) (FSPV) Float Ciel & Terre France 15 Japan, the US, UK, China, 490 MWp Manufacturer Taiwan, Malaysia, Thailand, India and France, South Korea and Brazil Quant Solar India 6 India 2.5 MW Ocean Sun Norway 5 Norway, Singapore, 3 MWp Philippines, Albania ISI Genere Spain 13 Chile, Netherlands, India 4 MW (partnership with Autonics in India) Sungrow China 24 China, Japan, Taiwan, 1.1 GW Thailand, Israel, Abu Dhabi Zimmermannn Germany 12 UK, Netherlands, Brazil, 70 MW Spain, Mauritania, Australia Anchoring & Seaflex Sweden 46 India, South Korea, USA - Mooring Mooreast Asia Singapore 28 SE Asia, India, Europe, UK - Surveyor Fugro Netherlands 59 61 countries across - continents Shankar India 20 India - Surveys Appendix • 115 APPENDIX B: Methodology for shortlisting of the countries for benchmarking study Floating solar is at different stages of maturity about the major initiatives in each key market. trajectory in various markets and each market A summary of the information gathered is given provides a different set of initial learning. in Table B.1. Hence, the team first gathered information Table B.1: Major initiatives in various markets Country FSPV Installed Brief Summary Capacity (MWp) China 960.0 In China, FSPV systems are either deployed as a result of a bidding scheme and are therefore eligible for a FiT granted over 20 years, or as a grid-parity project without any form of subsidy support. In June 2020, China’s Datang Power released a tender seeking several bids for a total capacity of 820 MW of FSPV to be installed across China by December 2021. Japan 210.0 With more than 210 MWp of installed capacity, Japan is a leading country in terms of total numbers of installation and home to 73 of the world’s 100 largest FSPV plants. The majority of these plants are installed on man-made waterbodies created to retain rainwater or irrigation. Vietnam 117.0 In April 2020, the government of Vietnam announced its plan to hold two auctions—one aimed at a 50-100 MW capacity and the second for a 300 MW FSPV project in 2021. In May 2020, the government announced a FiT for FSPVs. Accordingly, a tariff of VND 1,783/kWh, equivalent to EUR cents 0.65/kWh will be applied from the commercial operation date onwards for 20 years. Korea 80.0 Located on Korea’s southwest coast, the tidal flats of Saemangeum have been identified as the site for the world’s largest FSPV installation of 2.1 GW by 2025, requiring an investment of approximately $ 4 billion. Korea’s estimated onshore FSPV market potential is around 9.7 GW, which depending on the body of water (reservoirs, freshwater lakes, dams, irrigation and drain channels), would see between 2–20 percent of the water surface covered by FSPV. Netherlands 52.0 Netherlands is a country with a huge potential for solar PV. In 2019, the solar energy accounted for around 60 percent of the country’s renewable installed capacity71,72. Furthermore, in 2020, the solar capacity increased by 41 percent, reaching 10 GW73. In addition, as per the Netherlands Environmental Assessment Agency, by 2023, the Netherlands will have 15 GW of solar installed and by 2030 the country is expected to witness another 12 GW, bringing total capacity to approximately 27 GW74. 71 Statista. (2021). Renewable capacity in the Netherlands 2008–2020. https://www.statista.com/statistics/1189567/total-renewable- capacity-in-the-netherlands/ 72 Bhambhani, A. (2021, January 21). 2.9 GW New Solar Installed In Netherlands In 2020. Taiyang News. http://taiyangnews.info/ markets/2-9-gw-new-solar-installed-in-netherlands-in-2020/ 73 Bhambhani, A. (2021, January 21). 2.9 GW New Solar Installed In Netherlands In 2020. Taiyang News. http://taiyangnews.info/ markets/2-9-gw-new-solar-installed-in-netherlands-in-2020/ 74 Bellini, E. (2019, November 4). Netherlands to reach 27 GW of solar by 2030. PV Magazine International. https://www.pv- magazine.com/2019/11/04/netherlands-to-reach-27-gw-of-solar-by-2030/ 116 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Country FSPV Installed Brief Summary Capacity (MWp) Taiwan 26.0 The Taiwanese government has offered FITs specifically for FSPV systems since 2017. Accordingly, FSPV systems coming online in the second half of 2020 were eligible to receive a FiT of NTD 4.2709–4.7067/kWh (EUR cents 12–14/kWh) for 20 years. United 12.0 Like many other Asian countries, lack of space for land-mounted PV is Kingdom why the country is moving toward FSPV plants. The majority of the plants in the UK are installed on irrigation and water treatment ponds. United States 1.5 Department of Energy’s NREL released a report in 2019 outlining the potential of the technology to reach 9.6 percent of current electricity generation of US. This estimation is equivalent to 2100 GW. Thailand 1.0 A national FSPV target is set by EGAT, which announced in March 2019 that it aims to build a total of 16 FSPV systems on dams with a combined capacity of 2.7 GW by 2037. Individual capacities of the envisaged FSPV systems range from 24 MW up to 325 MW. After gathering the required data, a Furthermore, during the calculation process, methodology was developed for ranking the frontier and worst values were identified, countries based on multiple parameters. depending on the scoring criteria of ‘higher is better’, which means that higher the value, In the methodology, distance to the frontier better the performance (say installed capacity). method was used for shortlisting the countries. The method is described below: Illustration • Distance to the frontier measures the The values for installed capacity range from relative position of a given indicator the 960 MW (for China) to 0 MW (for UK). viz.-a-viz. a reference point. The higher the value on this scoring indicator, • The score illustrates the distance of more is the attractiveness of a country for FSPV. a country to the “frontier”, which As per this calculation, China is likely to get a represents the best performance observed score of 100 while it is likely to be 0 for UK. on each scoring indicator. The other countries will lie in between which • A country’s distance to frontier represents the distance to the best value. is indicated on a scale from 0 to This method of transformation warrants that 100, where 0 represents the lowest each data point has a unique score. Hence, performance and 100 the frontier. this method effectively captures the difference • It can show how much the country among the countries against their scoring has changed over time in absolute indicators. terms with respect to the scoring The parameters used and methodology adopted indicators. Calculating the distance to for ranking of the countries is given below. frontier score involves normalization of individual component (y) using • Target/Potential: Score of 100 is provided the linear transformation (worst – y)/ if FSPV target is in place, 50 if Overall (worst – frontier). RE/Solar target is defined, 0 if no target is in place. Appendix • 117 • Policy & Regulatory Analysis: Score of of 0 is provided in case of absence of 100 is provided if at least some policy business models. and regulations are in place, score of 0 is • R&D Activities: Score of 100 is provided provided if no policy and regulation is in if R&D centre/specific R&D related to place. FSPV exist or has been conducted, score • Incentives offered: Score of 100 is of 50 is provided if R&D activities are in provided if FiTs are being offered, score of progress, score of 0 is provided in case of 50 is provided if at least some subsidies, absence of R&D activities. investment plan is in place for RE/FSPV, score of 0 is provided if no incentive is in The scores obtained by the countries along with place. their ranks are given in Table B.2. • Business models: Score of 100 is Based on the ranks obtained by the different provided if some business models have countries and discussions with the World been deployed commercially (for eg. Bank, three countries—Japan, Netherlands Green Bond financing), score of 50 is and Vietnam—were shortlisted for the provided if some pilot testings have been benchmarking study. done on probable business models, score Table B.2: Countries with scores and ranks Score under different parameters Country Policy & Total Installed Target/ Incentives Business R&D Rank Name Pipeline Regulatory Score Capacity Potential offered models Activities Analysis Japan 21.88 0.00 50 100 100 100 100 471.88 1 South Korea 8.33 100.00 100 100 50 0 100 458.33 2 Netherlands 5.42 21.45 100 100 50 50 100 426.86 3 Vietnam 12.19 16.66 100 100 50 100 0 378.85 4 Taiwan 2.71 6.18 50 100 100 0 0 258.88 5 China 100.00 36.76 0 0 50 50 0 236.76 6 Thailand 0.10 0.14 100 0 0 0 100 200.25 7 United 1.25 2.49 50 0 0 50 0 103.74 8 Kingdom Singapore 0.00 0.38 0 0 0 0 50 50.38 9 118 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 APPENDIX C: Floating solar plants in Japan, Netherlands and Vietnam Below is a non-exhaustive list of the FSPV projects in Japan, Netherlands and Vietnam. These plants have been listed in the SolarPlaza’s report Top 50 Operational Floating Solar Projects 2021. Country Plant name Size (MW) Operational year Floating system provider Japan Yamakura solar 13.7 2018 Ciel & Terre power plant Umenoki 7.6 2015 Ciel & Terre Hirotani Ike 6.8 2018 Takiron Engineering Floating Solar Plant Oda ike 2.9 2018 Ciel & Terre Kato Shi (2 plants 2.9 2015 Ciel & Terre in total) Narasu Ike 2.8 2018 Ciel & Terre Hyoshiga Ike 2.7 2019 Ciel & Terre Katakami Oike 2.6 2019 Ciel & Terre Hiragio Ike 2.6 2017 Sumitomo Mitsui Floating Solar Construction Plant Ichigo Kasaoka 2.6 2018 Ciel & Terre Iwano Ike ECO Plant Netherlands Bomhofsplas 27.4 2020 PV-Floating/ Zimmermannn Kloosterhaar 15.7 2020 PV-Floating/ Zimmermannn Sekdoorn 14.5 2019 PV-Floating/ Zimmermannn Nij Beets 13.5 2020 PV-Floating/ Zimmermannn Tynaarlo 8.4 2019 PV-Floating/ Zimmermannn Vietnam Da Mi hydropower 47.5 2019 Narime-Qihua reservoir Gia Hoet 1 35.0 2020 NA Tam Bo 35.0 2020 NA Appendix • 119 APPENDIX D: Floating solar plants in India Table D.1 lists some of the currently operational FSPV plants in India. Table D.1: Operational plants in India Sl. No. Agency/Project name Capacity (MW) 1 National Thermal Power Corporation (NTPC) 100.0 2 National Thermal Power Corporation (NTPC) 92.0 3 National Thermal Power Corporation (NTPC) 25.0 4 National Thermal Power Corporation (NTPC) 23.0 5 National Thermal Power Corporation (NTPC) 20.0 6 Greater Visakhapatnam Smart City Corporation Limited (GVSCCL) 4.4 7 Bihar Renewable Energy Development Agency (BREDA) 1.6 8 Bihar Renewable Energy Development Agency (BREDA) 0.5 9 Kreala State Electricity Board (KSEB) 0.5 10 Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST) 0.5 11 West Bengal Power Development Corporation Limited (WBPDCL) 5.0 12 Cochin Port Trust 1.5 13 Greater Visakhapatnam Smart City Corporation Limited (GVSCCL) 2.0 14 Assam Energy Development Agency (AEDA) 0.0 15 Indian Oil Corporation Limited (IOCL) 0.1 16 Cochin International Airport (CIAL) 0.5 17 Kreala State Electricity Board (KSEB) 0.5 18 Vizag Smart City 2.0 19 Oil & Natural Gas Corporation (ONGC) 2.0 20 Tirupati Smart City 4.0 21 Solar Energy Corporation India (SECI) 4.0 22 Southern Pertochemical Industries Corporation (SPIC) 14.7 23 National Thermal Power Corporation (NTPC) 36.0 24 Kreala State Electricity Board (KSEB) 0.0 25 The Singareni Collieries Company Limited 5.0 Total 344.8 120 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 Table D.2 lists some of the planned/under construction FSPV plants in India. Table D.2: Planned/under construction FSPV in India Project developer/Procurement authority Location Capacity (MW) Government of Madhya Pradesh Omkareshwar Dam 600 JSW Energy Across India 250 NHPC Rengali, Odisha 100 NHPC West Kallada, Kerala 50 SECI Getalsud Reservoir, Jharklhand 100 DVC Floating solar Park, Ph 1 Jharkhand 755 DVC Floating solar Park, Ph 2 Jharkhand 234 NHPC Floating solar Park, Ph 2 Odisha 200 Total 2,289 Appendix • 121 APPENDIX E: List of Policies, Permits and Approvals While every attempt has been made to collate a comprehensive list of applicable policies, permits and approvals, please note that the list could be dynamic, and project-specific due diligence is recommended. List of Policies International Agreements Applicability of policy/regulation to FSPV projects and Conventions The Government of India being signatory to several international agreements and conventions, the States of India are also under obligation to adhere to the agreements and convention directions. Some critical international agreements and conventions and their relevance to the project are as follows: Ramsar Convention on The Convention on Wetlands is an intergovernmental treaty that provides the Wetlands framework for national action and international cooperation for the conservation and wise use of wetlands and their resources. The convention entered into force in India on February 1, 1982. India currently has 42 sites designated as Wetlands of International Importance (Ramsar sites), with a surface area of 1,081,438 hectares. International Union for IUCN is a democratic union that brings together the world’s most influential Conservation of Nature organisations and top experts in a combined effort to conserve nature and (IUCN) accelerate the transition to sustainable development. India became a State Member of IUCN in 1969, through the MoEFCC. IUCN in India operates under four projects: marine & coastal, inland waters, business and biodiversity and species conservation. Convention on Biological Signed by 150 world government leaders at the 1992 Rio Earth Summit, Diversity the Convention on Biological Diversity is dedicated to promoting sustainable development. Conceived as a practical tool for translating the principles of Agenda 21 into reality, the Convention recognizes that biological diversity is about more than plants, animals and microorganisms and their ecosystems – it is about people and their need for food security, medicines, fresh air and water, shelter, and a clean and healthy environment in which to live. Aarhus Convention The Aarhus Convention establishes a number of rights to the individuals and civil society organizations with regard to the environment. The Parties to the Convention are required to make the necessary provisions that public authorities, at a national, regional or local level will contribute to these rights to become effective. Paris agreement on India pledged to reduce the emission of GHGs and become carbon neutral by Climate Action 2030 under the Paris agreement act. SDG Goal 7 Sustainable development goal 7 aims to ensure universal access to affordable, reliable and modern energy services by the year 2030. National level policies Applicability of policy/regulation to FSPV projects The Electricity Act 2003 CEA is a statutory institution as per provision of the Electricity Act 2003. The main responsibility of the organization is to advise the government on matters relating to national electricity policy and to coordinate activities of the various planning agencies for the optimal utilization of resources. It is also responsible for laying down technical standards for construction of power plants, power evacuation lines and grid connectivity.The Electricity Act 2003 requires projects to obtain licenses and comply with the required safety regulations as stipulated in the Act. 122 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 National level policies Applicability of policy/regulation to FSPV projects NSM Aimed at achieving a national solar capacity of 175 GW by 2022, FSPV has a large potential in contributing to achieving this target. Environmental Clearance MoEFCC is the nodal agency responsible for the environmental management under EIA notification of the country at the national level. The responsibilities include environmental 2006 policy planning, environmental legislation, regulation for environmental protection, environmental clearance of projects, monitoring of environmental conditions imposed in the EC process, conservation and management of biological diversity, protection of waterbodies and coastal areas. MOEFCC office vide office memorandum J-11013/41/2006-IA.II (I) dated 7 July 2017 has clarified that solar PV projects, solar TPPs and development of solar power parks are exempted from provisions of the EIA notification 2006, subject to the project following the environmental and statutory provisions made in office memorandum dated June 30, 2011. Tiger Reserve Area In India, approximately 50 tiger reserves are created to prohibit human activities in these protected areas. Elephant reserves Being an endangered species, the Indian elephant is a part of the Wildlife Protection Act, 1972. Biosphere reserves Biosphere reserves are typically large areas that serve as testbeds for understanding and managing interactions between social and ecological systems. World Heritage sites Conservation of cultural and historical remains found in India. There are Ancient Monuments and seven natural heritage sites and 30 cultural heritage sites in India as of 2020. Archaeological Sites and These sites are considered to possess special cultural, physical or ecological Remains Act significance. For a project located within 300m of such features (first 100 meters as prohibited area followed by 200 meters to be regulated area), approval from Archaeological Dept. the central government, Indian Heritage Society and Indian National Trust for Art and Culture Heritage is required. Important Coastal and There are 106 coastal and marine areas under the ICMBAs in India as of 2021. Marine Biodiversity Areas (ICMBAs) Important Bird Areas IBAs are areas identified using an internationally agreed set of criteria as being (IBAs) globally important for the conservation of bird populations. Right to Fair Revenue Department through office of District Collector is responsible for Compensation and implementation of this Act to ensure that land acquired is for public purpose Transparency in and to provide fair compensation to the affected owners when private land is Land Acquisition and acquired for the project. Resettlement Act 2013 Guidelines issued by Tower base area impacted due to installation of tower/pylon structure and MoP for payment of compensation towards diminution of land value in the width of RoW corridor compensation towards due to laying of transmission line and imposing certain restrictions. damages caused by tower and Right of Way (RoW) for transmission lines. The Forest (Conservation) State Forest Department MoEFCC’s permission is required to divert forests for Act 1980 non-forestry use. Need to undertake compensatory afforestation if forestland is acquired. Appendix • 123 Environmental Protection To protect and improve the overall environment. The Department of Act 1986 Environment at the State level is the apex body for all environmental related issues including implementation of certain delegated responsibility under the Environment Protection Act 1986. It also has administrative responsibility for managing the State Pollution Control Board. State level policies Applicability of policy/regulation to FSPV projects Each state in India has departments that enforce policies and standards on energy, E&S issues pertaining to projects related to energy generation, including FSPV projects. FSPV project developers must comply with the state policies and standards. Some of the applicable policies are mentioned below: The Water (Prevention & State Pollution Control Boards function under the administrative control of the Control) Act 1974 State Departments of Environment. They are responsible for enforcing various provisions of environmental legislation like the Water (prevention & control) Act, The Air (Prevention & 1974, Air (prevention & control) Act 1981 and all these Acts are under the Control) Act 1981 umbrella of the Environmental Protection Act 1986. The Noise (Regulation & Control) Rules 2000 The Batteries (Management & Handling) Rules 2001 as amended Solid Waste Management Rules 2016 E-Waste Rules 2016 Hazardous and Other wastes (Management & Transboundary movement) Rules 2016 Labour Department This department is responsible for formulation and enforcement of labor laws in the State. Prevention and settlement of industrial disputes, industrial safety & health of workers, and welfare of workers is also its responsibility. Constitution (73rd The local Panchayats are an important institution in the decentralized Amendment) Act, 1992 administrative system of the country. They are empowered with management of local natural resources like forests, water, common property resources and for various infrastructure facilities like roads and buildings. A license from the local Panchayat is essential for construction-related activities. Reservoir Fishery Policy The State Government (Department of Fisheries is the main agency for implementation of the Reservoir Fisheries Development Programme. It is responsible for selection of the reservoirs, leasing of the waterbody to the beneficiary i.e., the lessee, monitoring and evaluation of the stocking and harvesting activities, assisting the beneficiaries in establishing sound forward and backward linkages, providing technical support and in capacity building of the beneficiaries from time to time. Wildlife (Protection) Act Projects located inside the boundary of Wildlife Sanctuary or National Park, 1971 Wildlife reserves or bio-reserves or National biodiversity reserves, have to comply with the Act. The Factories Act 1948 & Chief Inspectorate of Factory & Boilers State Rules 124 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 State level policies Applicability of policy/regulation to FSPV projects Building & Other All the Acts are to ensure welfare of workers. Construction Workers Act 1996 Contract Labour (Regulations & Abolishment) Act 1970 Payment of Wages Act 1936 Minimum Wages Act 1948 Employer's Liability Act 1938 Equal Remuneration Act & Rules 1976 Industrial Dispute Act 1947 Maturity Benefit Act 1961 Employees State Insurance Act 1948 Workmen’s Compensation Act 1923 Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act of 2013 World Bank E&S Applicability of policy/regulation to FSPV projects Framework The Environmental and Social Framework effective from October 1, 2018, enhances the World Bank’s commitment to sustainable development through 10 Environmental and Social Standards (ESS) that are designed to support Borrowers’ E&S risk management. ESS1: Assessment For assessing, managing and monitoring environmental and social risks and and Management of impacts associated with each stage of a project. Environmental and Social Risks and Impacts ESS2: Labour and Recognising the importance of employment creation and income generation in Working Conditions the pursuit of poverty reduction and inclusive economic growth. ESS3: Resource Efficiency Requirements to address resource efficiency and pollution prevention and and Pollution Prevention management throughout the project life-cycle. and Management ESS4: Community Health Health, safety, and security risks and impacts on project-affected communities and Safety and the corresponding responsibility of Borrowers to avoid or minimize such risks and impacts, with particular attention to people who, because of their particular circumstances, may be vulnerable. Appendix • 125 ESS5: Land Acquisition, Avoid or minimize involuntary resettlement through appropriate measures to Restrictions on Land mitigate adverse impacts on displaced persons. Use and Involuntary Resettlement ESS6: Biodiversity Protecting and conserving biodiversity and sustainably managing living natural Conservation and resources are fundamental to sustainable development and recognizing the Sustainable Management importance of maintaining core ecological functions of habitats, including of Living Natural forests, and the biodiversity they support. Resources ESS7: Indigenous Peoples/ To ensure that the development process fosters full respect for the human Sub-Saharan African rights, dignity, aspirations, identity, culture, and natural resource-based Historically Underserved livelihoods of Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Traditional Local Communities. Communities ESS8: Cultural Heritage Sets out measures designed to protect cultural heritage throughout the project life-cycle. ESS9: Financial Strong domestic capital and financial markets and access to finance are Intermediaries (FI) important for economic development, growth and poverty reduction. FIs are required to monitor and manage the environmental and social risks and impacts of their portfolio and FI subprojects, and monitor portfolio risk, as appropriate to the nature of intermediated financing. ESS10: Stakeholder Effective stakeholder engagement can improve the environmental and social Engagement and sustainability of projects, enhance project acceptance, and make a significant Information Disclosure contribution to successful project design and implementation. 126 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1 List of Permits and Approvals Sl. No. Permit/Approval Issuing Entity 1. Letter of award/allotment of the project Entity allocating the project (SECI, NTPC or state authorities). 2. Project registration State nodal agency 3. PPA Entity allocating the project (SECI, NTPC or state authorities). 4. Power Sale Agreement (PSA) Discoms 5. Tariff adoption order SERC of the DISCOM entering into PSA 6. Connectivity PGCIL/central transmission utility (CTU)/state transmission utility (STU) 7. Approval under Section 68 and Section 164 for CEA transmission scheme of connectivity system 8. Transmission agreement for transmission of power CTU in Inter-State Transmission System mode 9. Long term access or Long term open access CTU/STU agreement (as applicable) 10. No Objection Certificate (NOC) for Long term State DISCOM open access (as applicable) 11. Wheeling and Banking agreement (as applicable) DISCOM 12. Chief Electrical Inspector to Government (CEIG)/ CEIG/CEA CEA approval 13. Telemetry and communication approval (for Bharat Sanchar Nigam Limited/Power and getting clearance from Power, Telecommunication, Telecommunication Co-ordination Committee Railway and Defence Communication) depending on evacuation voltage level. 14. Synchronization approval DISCOM 15. Commissioning certificate Nodal agency/Local agency 16. Implementation Agreement Solar Power Park Developer 17. Overhead line approval DISCOM/PGCIL 18. Bay allocation approval DISCOM/PGCIL 19. Commercial Operation Date Certificate Commissioning committee/DISCOM/State nodal agency/STU 20. Load dispatch centre approval for connecting load 21. Metering approval Committee constituted for verification of commissioning of the plant or by the local DISCOM authorities. 22. Factory License Labour Department 23. Factory plan approval Labour Department 24. Consent to Establishment and consent to operate Central/State pollution control board Appendix • 127 Sl. No. Permit/Approval Issuing Entity 25. Fire safety permit Fire Department 26. Forest NOC Forest Department 27. Mining NOC Mining Department 28. Water Department NOC Water Department 29. Village panchayat NOC Gram panchayat 30. Building and other construction worker Labour Department 31. Contract labour regulation and abolition Labour Department 32. Land Use Permission Agreement: All land Revenue department/Collector/Tahsildar/District allotment approvals and documents (if allocated magistrate/Concerned commission by Government) or complete documentation of land if acquired from private owners. 33. Conversion of agricultural land to non-agricultural Revenue Department/Collector/Tahsildar/ land, if applicable District Magistrate/Concerned Commission 34. RoW if passing through lands of multiple owners, in case those lands are not acquired by developers   35. NOC/approval from port trust, coastal regulation zone, naval authorities or any other concerned authority 36. Clearance for surface water and extraction of Central Ground Water Authority ground water for solar PV panel cleaning and other activities. 37. Water Use Permission Agreement Owner of waterbody 128 • Unlocking the Potential of Floating Solar Photovoltaics in India: VOLUME 1