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Government of IndiaMinistry of New & Renewable Energy

Project Management UnitUNDP-GEF project on Concentrated Solar Heat

Inviting Expression of Interest for developing Demonstration and ReplicationProjects on Concentrating Solar Technology based systems for process heat,community cooking and space cooling applications in various sectors underUNDP-GEF project on Market development & promotion of solar concentratorbased process heat applications in India

Introduction

India is endowed with a vast solar energy potential. About 5,000 trillion kWh per year ofsolar energy is incident over Indias land area, with nearly all of India receiving anaverage 5-7kWh/m

2/day. The abundant solar radiation, clean character of solar energy,

high cost of fossil fuels and negative emission consequences along with large

requirements for process heat below 250C are the key drivers of the strong focus onthe development of solar thermal applications in India. The use of solar concentrator tomeet the process heat requirement of community, industrial and commercialestablishments is an emerging and exciting market opportunity in India.

Concentrating solar technologies(CSTs) basically focus the sunlight at receiver toachieve higher temperatures for various applications in the range of 150-450C. Sincethese technologies can focus the direct radiation coming from the Sun, they need to betracked alongwith the Sun. The technologies can be based on single axis (E-W) trackingas well as dual axis ( E-W & N-S) tracking. Depending on their tracking arrangement,they can be put in the category of medium or high temperature applications.

In abroad, most of these technologies have been developed and demonstrated in USAand Spain mainly for the purpose of power generation. Most popular technologies forthis purpose have been the Parabolic trough and Central tower receiver. Paraboloid andLinear Fresnel Reflector technologies have also been demonstrated at few places.These technologies, have, however, been hardly used for process heat, cooking orcooling applications. A couple of other technologies like Non-imaging concentrators andHeat pipes have also been developed abroad which find good applications for processheat and cooling applications in India .

In India 3 types of concentrating solar technologies are presently in promotion. These

are i) Manually tracked Dish solar cookers to cook food for 10-40 people, ii) Fixed focusE-W automatically tracked dishes for direct indoor cooking for about 50-100 people &for steam generation for the purpose of community cooking, laundry, space cooling etc.of any capacity and iii) Dual axis fully tracked Fresnel dishes for process heat, cooling,laundry applications etc. These technologies are in implementation for last many yearswith support from MNRE. A few other technologies e.g dual axis tracked paraboloiddishes, linear Fresnel reflectors, Non-imaging concentrators have also been developedrecently and are in demonstration stage.

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Concentrating solar systems have been found to be quite suitable for cooking food forhundreds and thousands of people in community kitchens especially at religious placesand institutional/ industrial canteens. The worlds largest system is functioning at Shirdifor cooking food for 20,000 people/day. The systems have also found applications forprocess heat, laundry and food processing in industries. These include systems atGajraj Drycleaners, Ahmed Nagar, Maharashtra; ITC, Maurya, Delhi and Tapi FoodIndustries, Valsad, Gujarat. The systems are being installed mainly at places wheresteam generated through conventional boilers is already being used for cookingapplication. Installed in hybrid mode, these systems could save a significant amount offuel oil at such places.

These systems alongwith vapour absorption machines have been demonstrated for airconditioning also. The systems have been installed at places where power cuts arehigh and electricity is expensive. 100 TR air conditioning plant at Muni Seva Ashram,Vadodara; 92 TR at TVS, Suzuki factory near Chennai; 212 TR at Civil Hospital, Thanenear Mumbai; 30 TR plant at Magnetic Mareli, Gurgaon, 100 TR for process cooling atMahindra Vehical Manufacturers Ltd, Chakan, Pune etc. are few such examples. A totalof about 80 steam generating systems have been installed so far in the country with a

cumulative figure of 25,000 sq. m. of dish area. There are 16 manufacturers/suppliers ofsuch systems whose list is available at MNRE websitewww.mnre.gov.in.

For promotion of these systems, support upto 30% of the cost of solar field subject tocertain benchmarks is available under off-grid scheme of JNNSM. Higher support of60% is available in special category states. The systems are being installed throughState Nodal Agencies/ accredited private channel partners as per technicalspecifications laid down by MNRE.

UNDP- GEF project

To boost the use of Concentrating Solar Technologies, the Ministry is also implementinga new UNDP-GEF supported project on Market Development & Promotion of SolarConcentrator based Process Heat Applications in Indiasince April 2012. The objectiveof the project is to promote and commercialize Concentrating Solar Technologies forindustrial process heat applications in India and facilitating the installation of 45,000 m

2

of installed solar collector area by March 2017 through 30 demonstration and 60replication projects. Direct emission reduction from these projects during its 5 yearsperiod will be 39,200 tonnes of CO2.

Demonstration & Replication Projects

To develop these demonstration & replication projects, Expression of Interest (EOI) areinvited from interested beneficiaries in the prescribed format given at Annexure-II.Guidelines for considering projects as demonstration or replication are given atAnnexure-I. UNDP-GEF support of Rs. 15 lakhs per project will be available forselected demonstration projects and Rs. 4 lakhs for replication projects which willinclude preparation of feasibility report, DPR and performance monitoring of the systemafter its installation as applicable for both the projects. This support will be in addition to30% support available from MNRE for installation of the systems (Details on MNREsubsidy is given at Annexure-III). Commercial organization will also be eligible to getaccelerated depreciation benefit which may come to around 25% of project cost.

http://www.mnre.gov.in/http://www.mnre.gov.in/http://www.mnre.gov.in/http://www.mnre.gov.in/

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Interested beneficiaries will first get the feasibility study done through some consultantand if found the project suitable, will then submit the proposal in prescribed format. DPRmay be prepared later after the projects are cleared for Demonstration projects. List ofempanelled consultants by Project Management Unit for preparing feasibility studiesand the DPRs will made available at MNRE website very soon. Beneficiaries will,however, be free to select any other consultant also known to him subject to satisfactoryof delivery of reports.

Based on the DPR and performance monitoring plan prepared and manufactureidentified for installation of the systems, proposals in prescribed format will be thenprepared by the beneficiaries and submitted to MNRE for subsidy support. Separately, afew Consultants/ Consultancy organizations are being hired by the Project ManagementUnit who may help beneficiaries in preparing proposals apart from being done byrespective manufacturers/ consultants hired for preparing DPRs.

Release of MNRE subsidy and UNDP-GEF support

For UNDP-GEF support, proposals received will be examined by a TechnicalCommittee formed by the Project Management Unit. Selected proposals will beprovided support as per above for preparation of feasibility report, DPR andperformance monitoring of the system as applicable for the type of project. Consultantfor performing these activities will be hired by the beneficiary organization at a costdecided by them within the support available. Part of this support could be utilizedtowards installation of the system also only if money is available after having feasibilityreport and DPR prepared and equipment/instrumentation procured for performancemonitoring of the system as applicable for demonstration/replication projects which aremust.

For MNRE subsidy proposals in prescribed format (Annexure-IV) alongwith feasibilitystudy report and DPR with performance monitoring plan will be send to Director, CSTProgramme, MNRE through identified Channel Partner of MNRE / respective StateNodal Agency (SNA) (if manufacturer is not Channel Partner) with a copy marked toNPM of the project. List of SNAs & Channel partners are available at MNRE website.

As per scheme provisions MNRE subsidy is made available after installation of thesystem with sanction issued in the beginning. UNDP-GEF support, however, will bemade available in parts from the date of approval of the project, 50% of which could bereleased in advance based on Bank Guarantee and rest on seeing the progress made.Proforma for preparing the DPR, list of equipment/ instruments required to be procured

for performance monitoring etc will be provided to beneficiaries while informing themabout their projects identified for demonstration/ replication projects

Time line for submission of proposals

There is no last date of submission of proposals. The proposals received on first cumfirst serve basis will be considered by the PMU in a meeting of the Technical Committeeto be held on monthly/ fortnightly basis and approval conveyed accordingly.

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Annexure-I

Guidelines for preparing Demonstration & Replication Projects

A. Demonstration Projects

Thirty (30) demonstration projects will be implemented under CSH project.

Qual i f icat ion

The Demonstration Projects Component will support projects demonstrating CSHtechnologies or applications which, although at or near commercial viability and havingpotential for replication, currently face market barriers due to lack of expertise,knowledge or market confidence and as such have not been successfully demonstratedpreviously. Projects that offer significant improvement over already demonstrated CSHtechnologies or applications will also be considered as demonstration projects.

Key select ion cr i ter ia

i) The demonstrations will initially focus on key sectors having largereplication potentials e.g. dairy, hotel, hospital, textile, pharmaceutical,chemical, metal treatment, food processing, institutional cooking, etc.

ii) Improvements in CSH technical and/or economic performance, e.g.,performance improvement (higher kWth/m

2), cost reduction (lowerINR/m2), improvement in cost/performance ratio (lower INR/kW th),performance consistency (reliability, durability over component life),improvements at component level (e.g. mirrors, tracking system),improvements in life of components (e.g. degradation of mirrors),

improvements at system level (e.g. integration with process, integrationwith existing energy system, integration with auxiliary/ backup system,automated operation, control strategy and control system, systemconfiguration optimization, system with storage (short-term/ long-term),performance monitoring system, operation with different working fluids,and scale-up with attendant improvement in technology parameters.

iii) Minimum size of the project will be 250 sq. m. of solar concentrator area.Slightly lower could be considered by the committee subject to necessary

justifications provided

iv) Preference will be given to projects related to process heat and coolingprojects rather than community cooking which have already been inpromotion under subsidy scheme of MNRE until and unless strong

justifications are given in support for demonstration project

v) Expected date of commissioning.

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Obl igat ions under demons trat ion project scheme

The participant must agree to report performance data in the specified format atthe specified periodicity.

The participant should put-up a display board at the site clearly stating thesupport received from MNRE-UNDP-GEF project and having logos of MNRE,UNDP and GEF.

The participant must agree to site visits by staff of the project and/or itsdesignated agent(s) for the purposes of technical or verification inspection, andto carry out performance monitoring.

The participant must be prepared to participate in follow-up research as may becommissioned by the project to establish the programme's impacts andachievements.

The participant must agree that the UNDP GEF MNRE CSH project may developa case study for dissemination and allow the acquisition of related informationand data (protecting as appropriate all agreed confidential or commerciallysensitive information/data).

The participant must be prepared to participate in dissemination activities suchas making presentations in workshops and participating in other such forumsorganized by the project.

The participant must be prepared to allow access of the site to designatedpersons for the purposes of demonstrating an operating installation subject to

reasonable frequency and notice period.

On - line data collected on performance evaluation of the system will beshared by the participants ans made available on MNRE/UNDP websites.

Obligations will be in force for a period of 2 years from commissioning of thedemonstration project or till end of the project period whichever is later.

Solar Conc entrator Technolog ies to be considered under Demonstrat ion projects

Parabolic trough concentrators

Dual axis tracked paraboloid dishes

Dual axis tracked Scheffler dishes

linear Fresnel reflectors

Non-imaging concentrator

Arun technology with dish area below 100 sq. m.

and

Single axis tracked Scheffler dishes

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Arun technology with 160 sq. m. of dish area

subject to fulfillment of ii) given under key selection criteria as above

Available Supp ort from UNDP-GEF

Support up to Rs. 15 lakhs will be available for each of the selected demonstrationproject for the purpose of preparation of feasibility report, DPR and performancemonitoring of the system after its installation. Part of this support could be utilizedtowards installation of the system also only if money is available after having feasibilityreport and DPR prepared and equipment/instrumentation procured for performancemonitoring of the system which are must. Release of this support could be 50% inadvance based on Bank Guarantee and rest on seeing the progress made.

Replication Projects (No DPRs are proposed in these projects)

Sixty (60) replication projects will be supported.

Qual i f icat ion

The replication projects that will be supported will either implement the application ofexisting CSH technology packages or implement the application of CSH technologypackages demonstrated during the project.

Obl igat ions und er repl icat ion project scheme

The participant must agree to report performance data in the specified format atthe specified periodicity.

The participant must agree to site visits by staff of the project and/or itsdesignated agent(s) for the purposes of technical or verification inspection, andto carry out performance monitoring.

Obligations will be in force for a period of 1 year from commissioning of thereplication project.

The participant should put-up a display board at the site clearly stating thesupport received from MNRE-UNDP-GEF project and having logos of MNRE,UNDP and GEF.

Technologies to be considered under Repl icat ion projects where no

impro vements are propo sed as ment ioned in i i ) und er key select ion cr i ter ia of

Demonstrat ion projects

Single axis tracked Scheffler dishes

Arun technology with 160 sq. m. of dish area

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Available Supp ort from UNDP-GEF

Support up to Rs. 4 lakhs will be available for each of the selected replication project forthe purpose of preparation of feasibility report and performance monitoring of thesystem after its installation. Part of this support could be utilized towards installation ofthe system also only if money is available after having feasibility report prepared andequipment/instrumentation procured for performance monitoring of the system whichare must. Release of this support could be 50% in advance based on Bank Guaranteeand rest on seeing the progress made.

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Annexure-II

Format for submission of proposals

Type of proposal submitted : Demonstration/ Replication project

1. Name and address of beneficiary with phone, fax & mobile etc2. Application for which Concentrating solar technology is proposed to be installed

(Cooking/ process heat/ cooling/ laundry/ any other)3. Present arrangement for meeting that requirement (Boiler/LPG or PNG

burners/any other)4. Type of fuel being used and proposed to be saved5. Heat requirement for application in the form of steam/ hot air/ pressurized hot

water/ hot oil/ any other)6. Required temperature and pressure of useful heat7. Available shadow free space during 9 A.M. to 4 P.M. for solar system to be

installed in sq. m. of area8. Whether space available at terrace or on ground

9. Distance in meters from available space to the point of utility of heat10. Whether solar system proposed, will be integrated with existing boiler/ heating

arrangement or it will be a standalone system11. Type of solar technology proposed to be installed12. Commitment letter from organization for bearing 70% of the cost towards

installation of the system. In special category states, it will be 40% for non profitmaking bodies.

13. Whether any feasibility study done for installation of the CST based system? Ifyes report to be submitted

14. Name of consultant/ manufacturer and his contact details who did the feasibilitystudy.

15. Whether any manufacturer identified for installation of the system? Please givedetails.

16. For Demonstration project following needs to certified and accordingly requiredinformation/ justifications to be provided ( Must to be provided for demonstrationprojects for the consideration of Technical Committee)

Any improvements in CSH technical and/or economic performance, e.g.,performance improvement (higher kWth/m

2), cost reduction (lower INR/m2),improvement in cost/performance ratio (lower INR/kW th), performanceconsistency (reliability, durability over component life), improvements atcomponent level (e.g. mirrors, tracking system), improvements in life of

components (e.g. degradation of mirrors), improvements at system level (e.g.integration with process, integration with existing energy system, integration withauxiliary/ backup system, automated operation, control strategy and controlsystem, system configuration optimization, system with storage (short-term/ long-term), performance monitoring system, operation with different working fluids,and scale-up with attendant improvement in technology para

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Annexure-III

Ministry of New & Renewable EnergyGovernment of India

Subsidy pattern for solar thermal systems/devices under off-grid scheme ofJawaharlal Nehru National Sola Mission (JNNSM)

Solar thermal systems/devices Capital subsidy (Rs./ sq.m. ofcollector area) or 30% ofproject cost whichever isless in General Categorystates*

Solar water heating & air heating systems,box cookers based on following type ofcollectors

Evacuated Tube Collectors (ETCs) 3000 Flat Plate Collectors (FPC) with liquid as the

working fluid 3300 Flat Plate Collectors with air as the working fluid 2400 Solar collector system for direct heating

applications 3600

Dish solar cookers & steam generatingsystems based on following type of collectors

Concentrators with manual tracking 2100

Non- imaging concentrators 3600 Concentrators with single axis tracking 5400 Concentrators with double axis tracking 6000

________________________________________________________________

* For special category states, this subsidy will be double limited to 60% ofproject cost expect for commercial organizations who will get 30% subsidybecause of accelerated depreciation benefits available to them. In un electrifiedrural areas, subsidy for solar thermal power plants will be 60% in all category ofstates.

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Annexure-IV

Format for submission of project proposal for installationof solar steam generating systems

1. Name of establishment with complete postaladdress, telephone, fax number and e-mail

address for correspondence purpose.

:

2. Type of solar concentrators to be used for steam system

Type Size (sq.m.) No. Approx. cost has given by supplier(Quotation to be enclosed)

1.2.3.

3. Requirement of application (Cooking, processheat/ cooling any other)

:

4. Existing arrangement for such application

5. Present fuel consumption per year :

6. Shadow free land area identified for solarsystem (sq. m.)

:

7. Distance of utility point from solar site :

8. Name and address of supplier identified forinstallation of the system

:

9. Details of the project report ( DPR) preparedby the identified supplier (Report will includethe technical specifications of variouscomponents and their life period)

: To be enclosed alongwith Supplierspast experience on such system, ifany

10. Expected outcome from proposed installationin terms of fuel savings & heat delivery withdetailed energy calculations.

11. Item wise budget break up ( including AMCfor 5 years )

12. MNRE support sought as per the schemeprovisions

13. Proposed means of balance financing

14. Commitments from the beneficiary

i) We will bear the remaining cost apart from the MNRE support as per detailsgiven above

ii) We will not dismantle the system at any stage without prior written permission ofMNRE

iii) We will regularly use and properly maintain the system and submit quarterlyperformance report for a minimum period of one year from the date of installationthrough implementing agency.

iv) We will take Annual Maintenance contract for a period of at least 5 years aftercompletion of the warranty period from manufacturers or get our people trainedfor successful functioning of the systems.

Date ..Signature with name and Seal of

Head of beneficiary organization