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					</table><p>The group captive model is the most preferred model by the commercial and industrial (C&amp;I) segment as it allows them to not only use green energy but also save 30-50% on energy bills, Pankaj Verma-Head of Business Development at <a href="https://sunsource-energy.com/" target="_blank" rel="noopener">SunSource Energy</a>, said on the sidelines of the <a href="https://www.mercomindia.com/indian-corporates-poised-renewable-transition-trajectory" target="_blank" rel="noopener">Mercom India Renewables Summit 2023</a>.</p>
<p>Verma added that companies opt for hybrid power projects offering round-the-clock power with a capacity utilization factor of up to 50%.</p>
<p>Below are excerpts from the interview.</p>
<p><strong>What is your current operational capacity?</strong></p>
<p>Initially, SunSource was primarily a rooftop-focused business. Three years ago, we entered the open-access segment. Our portfolio, including commercial and industrial (C&amp;I), is 400 MW, and we plan to commission another 300 MW by March 2024.</p>
<p>Most of the development is happening in Karnataka (100 MW). We are also developing 90 MW of projects in Uttar Pradesh and another 25 MW in Tamil Nadu.</p>
<p><strong>What are the reasons behind the surge in demand for round-the-clock (RTC) power?</strong></p>
<p>If you go with vanilla solar or wind projects, the maximum capacity utilization factor (CUF) you can achieve is 20% and 30%, respectively. However, you can achieve a CUF of 40-50% with a hybrid power project.</p>
<p>Beyond that, one has to go for battery storage. With companies going for carbon neutrality, replacing energy from conventional sources with 100% green energy is necessary.</p>
<p>If someone decides to go 100% carbon neutral, they would require both solar and wind. Since most states don&#8217;t allow energy settlement during peak hours, I see real-time settlement gaining prominence shortly.</p>
<p>Currently, hybrid power is the best available option. After Gujarat, Karnataka is also planning to develop a hybrid power policy.</p>
<p><strong>Can you name the top three states for C&amp;I customers procuring power from open access?    </strong></p>
<p>Karnataka has to be at the top. Earlier, it had annual banking, which is now monthly. With the oversizing of the project every year, you could replace 100% of the power annually. It will change with monthly banking, but still, it is one of the best states with oversizing.</p>
<p>The second has to be Tamil Nadu, which also has provisions for monthly banking, and the project size is unlimited.</p>
<p>Then we have Maharashtra and Gujarat, which are at par. Some of the other states that are opening up are Andhra Pradesh, Telangana, Odisha, and Madhya Pradesh.</p>
<p><strong>Out of the captive, group captive, and third-party models, which is the one that is attracting the most attention? </strong></p>
<p>The unique value proposition is the captive/group captive model. Here, you are procuring green energy and saving almost 30-50%, depending on which state you are in.</p>
<p>But some large MNCs are not free to invest money into equity and are forced to procure power under the third-party model. Under the third-party model, the commercial savings are lower than in the captive/group captive model.</p>
<p><strong>Is various charges imposed by distribution companies (DISCOMs) affecting the wider adoption of third-party open access?   </strong></p>
<p>In Maharashtra, the landed cost of power from the distribution company (DISCOM) is around ₹8.5 (~$0.103)/kWh. Even with the third-party model, you would save nearly ₹1 (~$0.012)/kWh-₹1.5 (~$0.018)/kWh.</p>
<p>In Maharashtra, the third-party model would make sense, but in other states, the power tariffs range from ₹7 (~$0.085)/kWh-₹7.5 (~$0.091/kWh and a consumer can save up to ₹2 (~$0.024)/kWh under the group captive model.</p>
<p>The group captive model would make sense in states like Punjab, Odisha, and Chhattisgarh, where the landed cost comes to ₹5 (~$0.061)/kWh. In these states, the third-party model is not a viable option.</p>
<p><strong>What would be the investment, and how long would it take for a customer to recover the costs for a 1 MW captive or group captive project?   </strong></p>
<p>For a 1 MW project, the equity investment for a customer is ₹4 million (~$48,548). The number of units generated is around 1.5 million.</p>
<p>Given the number of units generated, a consumer can save up to ₹2 (~$0.024)/kWh-₹2.5 (~$0.031)/kWh.</p>
<p>So, the total savings comes to about ₹4 million (~$48,548) for a 1 MW project.</p>
<p>In nearly one year, they can recover their equity. Customers making equity investments can get back their equity during the first year.</p>
<p><strong>Are your customers adopting green energy because they know that not doing so may affect their business prospects, if not now, then soon in the future? </strong></p>
<p>We have a mix of customers. Some Indian customers understand the value of going green and are committed to their energy transition targets.</p>
<p>Also, we have customers who have business requirements. We are supplying power to one of the largest bottlers for Pepsi and Coke. Companies like Pepsi and Coke are committed to having 100% green energy in their plants. For business requirements, they need green energy, or their business is in danger.</p>
<p><strong>How will waiving the interstate transmission system (ISTS) charges affect the C&amp;I business? </strong></p>
<p>The ISTS waiver keeps the equation the same. The government has waived the ISTS transmission charges, but when one enters a state, he has to pay the cross-subsidy surcharge, additional surcharge, and all the other charges.</p>
<p>The waiver of ISTS charges is going to help consumers who are multi-locational. For example, a consumer&#8217;s requirement is 100 MW, and they sign a power purchase agreement (PPA) with the developer, and the developer supplies power to all the plants across the states. The benefit is that the power can be supplied in states that do not favor open access. The only approval required is a no-objection certificate from the states.</p>
<p><strong>The Approved List of Models and Manufacturers (ALMM) has been kept in abeyance for a year. How will it affect the developers, given that projects with imported modules must be commissioned by March 31, 2024? </strong></p>
<p>In the short term, we plan to commission 300 MW of projects by March 2024, for which the procurement has already started.</p>
<p>For the future, planning needs to be done. We can&#8217;t import 400 MW-500 MW of modules and keep them in store for future projects. That is not a viable option. As soon as the ALMM announcement was made, the module prices came down to $0.21 (~$0.002)/Wp.</p>
<p>The developers got few benefits even when the ALMM regulation was in place. The domestic modules were only 5-7% cheaper than the Chinese modules. Also, the tariffs have come down by about ₹0.25 (~$0.003)/kWh from what it was nearly six months ago.</p>
<p><strong>What would SunSource do differently after being acquired by a Netherlands-based company last year? </strong></p>
<p>SHV Holdings is a Netherlands-based company in India as SHV Energy. The name of the brand in India is Supergas. SunSource was acquired in November last year, and now we are a part of SHV Energy.</p>
<p>The acquisition has given us access to capital, which makes us competitive, and we also have aggressive plans for the future.</p>
<p>We are expanding across five to six states, and by 2026, we intend to be a GW company in the C&amp;I segment.</p>
<div><strong>(Note: Sections of the interview have been paraphrased for better reading. Check out the video for a full chat)</strong></div>
<p>&nbsp;</p>
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<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/sumit-jha/" class="vcard author" rel="author"><span class="fn">Sumit Jha</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt"><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture2.jpg" width="50" /><strong style="text-decoration: underline">Sumit Jha,</strong> Assistant Managing Editor at Mercom India</div>
<div class="designboxt"><a href="https://mercomindia.com/author/sumit-jha/" target="_blank" rel="noopener">More articles from Sumit Jha.</a></div>
<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Picture2.jpg" width="102" height="102" /><a href="https://mercomindia.com/author/sumit-jha/" target="_blank" rel="noopener"><strong style="color: #00b451">Sumit Jha </strong></a>is the Assistant Managing Editor at Mercom India. Prior to Mercom, Sumit worked as a journalist for over a decade, covering the energy sector for Reuters, CNBC-TV18, Bloomberg TV India, and Financial Express, among others. Sumit holds a diploma in print journalism from the Indian Institute of Mass Communication, Delhi, and a Bachelor of Engineering (B.E) from Manipal Institute of Technology.<a href="https://mercomindia.com/author/sumit-jha/" rel="noopener noreferrer">More articles from Sumit Jha</a></div>
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Group Captive is the Most Preferred Open Access Mode for C&I Customers: Interview

<p><a href="https://www.shvenergy.com/" target="_blank" rel="noopener">SHV Energy</a>, a Netherlands-based global distributor of liquefied petroleum gas (LPG) has acquired a majority stake in India-based distributed solar company <a href="http://sunsource-energy.com/" target="_blank" rel="noopener">SunSource Energy</a>. The investment amount is undisclosed.</p>
<p>SunSource Energy, which initially focussed on design and engineering, procurement, and construction of solar projects, expanded to also invest in commercial and industrial (C&amp;I) solar projects to sell energy to its customers since 2018. The company also develops and invests in open access solar projects. SunSource now has a presence across South-East Asia.</p>
<p>SunSource Energy&#8217;s co-founders Kushagra Nandan and Adarsh Das will continue to run the company and remain shareholders.</p>
<p>The acquisition is part of SHV Energy’s renewable solutions strategy and ensures SunSource&#8217;s solar portfolio expansion to over 550 MW by 2023.</p>
<p>With this transaction, private equity firm Neev Fund, promoted by India&#8217;s largest commercial lender State Bank of India and the U.K. government will exit from its three year investment in SunSource Energy.</p>
<p>In 2018, SunSource Energy had <a href="https://mercomindia.com/sunsource-funds-solar-indian-states/" target="_blank" rel="noopener">raised</a> capital from Neev Fund to develop solar projects across various states of the country. The investment was used to develop solar projects in eight states with low levels of capital investment.</p>
<p>Meanwhile, SHV Energy enters India&#8217;s growing renewable energy market, with a focus on solutions for C&amp;I customers and capitalizes on SunSource Energy&#8217;s experience in decentralized energy projects. SHV Energy already operates in India through its &#8216;SUPERGAS’ brand, a leading local LPG player founded in 1996.</p>
<p>“We are pleased to have reached this agreement and look forward to collaborating with our new SunSource Energy colleagues to address the evolving energy needs of commercial and industrial consumers. India is a key market for SHV Energy, and this investment underpins our long-term commitment to the region and advancement of renewable energy solutions,” said Bram Gräber, Chief Executive Officer, SHV Energy.</p>
<p>Adarsh Das, Co-Founder, and Chief Executive Officer, SunSource Energy, said, “We are delighted that SHV Energy has partnered with us. We are happy to have a like-minded strategic long-term investor on board who believes in our model of sustainable development and decentralized energy solutions. This investment will enable us to leverage SHV Energy’s global presence and expertise to emerge as a leading global distributed solar company.”</p>
<p>Kushagra Nandan, Co-Founder, and President, SunSource Energy, added, “SunSource Energy will be able to draw strength from SHV Energy&#8217;s deep global experience in energy markets, well-tested processes, and business practices. We look forward to contributing further towards India’s clean energy goals and offer more products that continue to solve energy transition challenges faced by commercial and industrial customers.”</p>
<p>According to <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener">Mercom India Solar Tracker</a>, SunSource Energy has 40 MW projects in operation and 36 MW are under development as of March 2021.</p>
<p>Global VC funding for the solar sector in Q1 2021 came to $1 billion in 14 deals, a 33% increase compared to $773 million raised in 12 deals in Q4 2020, according to Mercom Capital Group’s <a href="https://mercomcapital.com/product/q1-2021-solar-funding-ma-report/" target="_blank" rel="noopener">Q1 2021 Solar Funding and M&amp;A Report</a>.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rahul-nair/" class="vcard author" rel="author"><span class="fn">Rahul Nair</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><p>Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. <a href="https://mercomindia.com/author/rahul-nair/" rel="noopener noreferrer">More articles from Rahul Nair.</a></p>
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SHV Energy Acquires Majority Stake in Distributed Solar Company SunSource

<p>Uttar Pradesh will soon have a 70 MW open access solar photovoltaic (PV) project. The project, which falls under Uttar Pradesh’s Open Access Program, will be developed by <a href="http://sunsource-energy.com/" target="_blank" rel="noopener">SunSource Energy</a>.</p>
<p>The project was allocated under the UPERC CRE Regulation, 2014. The power generated by this project will be sold through long-term power purchase agreements (PPAs) to commercial and industrial customers. The project is expected to be launched by Prime Minister Narendra Modi in Kanpur on March 8, 2019.</p>
<p>Once commissioned, it will be one of the largest open access solar PV power projects in Uttar Pradesh, according to the company. The project is expected to offset over 85,000 tons of carbon emissions every year. Uttar Pradesh is the most populous state in India and has a large peak energy supply deficit, according to the Central Electricity Authority.</p>
<p>This project will help the industries and commercial establishments to reduce their energy bills and meet their Renewable Purchase Obligation (RPO) targets.</p>
<p><a href="https://mercomindia.com/sunsource-funds-solar-indian-states/" target="_blank" rel="noopener">In February 2018</a>, SunSource Energy had raised capital from Neev Fund for the development of solar projects across various states of the country. Neev fund is the outcome of a partnership between the State Bank of India (SBI) and the UK’s Department for International Development (DFID). It is an infrastructure private equity fund focused on creating sustainable development. The fund aims to invest in low income/developing states of the country with a focus on infrastructure sub-sectors such as renewable energy.</p>
<p>From its base in India, SunSource has expanded to establish an international presence with headquarters in India and offices in the United States, Philippines, and Singapore. Since its inception in 2010, the company says it has delivered more than 150 solar power projects across 24 states in India and six countries globally. The company had earlier signed an MoU with the government of Uttar Pradesh to develop 200 MW solar projects in the state.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/saumy/" class="vcard author" rel="author"><span class="fn">Saumy Prateek</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
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<p><strong style="text-decoration: underline">Saumy Prateek</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/saumy/" target="_blank" rel="noopener">More articles from Saumy Prateek</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="79" height="102" /><a href="https://mercomindia.com/author/saumy/" rel="noopener"><strong>Saumy Prateek, </strong> </a>is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism &amp; Mass Communication from the Manipal Institute of Communication at Manipal University.<a href="https://mercomindia.com/author/saumy/">More articles from Saumy Prateek.</a></div>
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70 MW Open Access Solar Project to be Developed in Uttar Pradesh

<p>Jamia Millia Islamia University has joined the long list of educational institutes that have turned to solar power to light up their classrooms. Recently, the university commissioned a 2.25 MW solar photovoltaic (PV) project at its premises in the national capital.</p>
<p>The university will now get solar power at a tariff of ₹3.39 (~$0.04711)/kWh for the next 25 years. Jamia Milia Islamia was one of the many educational institutions to opt for solar to cut down its power costs in the recent times.</p>
<p>SunSource Energy Pvt. Ltd. has developed the solar PV project under RESCO mode. <a href="https://mercomindia.com/jamia-millia-islamia-tenders-2-25-mw-ac-solar-project/" target="_blank" rel="noopener">In June 2017</a>, Jamia Millia Islamia had tendered the 2.25 MW (AC) solar project to be developed at its campus premises in Delhi.</p>
<p>Per SunSource Energy, Jamia Millia recently signed an agreement with SunSource Energy Pvt. Ltd. (which was approved by Solar Energy Corporation of India) to execute the project on a turnkey basis.</p>
<p>The installation process of solar panels over 50 rooftops of various buildings in the campus like central library, colleges, various departments of Jamia, and hostels has been complete. The university didn’t incur any cost for the set up and maintenance of the project as the expenses will be taken care of by SunSource Energy, with due support from SECI.</p>
<p>The entire execution of the project took place over a period of four months.</p>
<p>According to Kushagra Nandan, COO &amp; co-founder of SunSource Energy, “With the installation of the 2.25 MW plant, Jamia Millia Islamia is expected to save over Rs. 1 crore annually apart from significantly contributing to the environment. The commencement of the project will greatly benefit students in training and carrier development as well.”</p>
<p>Adarsh Das, CEO &amp; CO-Founder of SunSource Energy also stated that the company is actively in talks with several other academic institutions for implementation of similar initiatives.</p>
<p><a href="https://mercomindia.com/schools-colleges-going-solar/" target="_blank" rel="noopener">Mercom recently reported that</a> solar – not black coal – is beginning to power classrooms, dormitories and canteens of multitudes of educational institutions across the country. Solar power is heating water, helping run laboratories, shining auditoriums, cooling down canteens, assisting in administrative work and illuminating street lights on school grounds. Due to surging electricity bills and the desire to protect the environment, large number of educational institutions are turning to solar to meet their daily energy needs.</p>
<p>In <a href="https://mercomindia.com/amity-installs-1-8-mw-solar-campuses/" target="_blank" rel="noopener">July 2018</a>, Amity University installed rooftop solar PV projects aggregating 1.8 MW across three campuses.</p>
<p>In <a href="https://mercomindia.com/iit-kharagpur-eoi-solar/" target="_blank" rel="noopener">May 2018,</a> IIT Kharagpur had invited an expression of interest to develop 5.5 MW of solar projects.</p>
<p><a href="https://mercomindia.com/uttarakhand-gb-pant-university-rooftop-tender/" target="_blank" rel="noopener">Recently</a>, Govind Ballabh Pant University of Agriculture and Technology in Uttarakhand’s Pantnagar town tendered a 5 MW grid-connected rooftop solar PV project.</p>
<p>Solar initiatives undertaken by the educational institutions are setting a good example for the rest of the country. Not only will this make the country adopt a sustainable and economical source of power, it will also help the overall growth trajectory of the rooftop solar sector. Mercom recently <a href="https://mercomindia.com/solar-carports-new-source-growth-rooftop-solar/" target="_blank" rel="noopener">reported</a> that India crossed the milestone of <a href="https://mercomindia.com/india-25-gw-solar-capacity-installed/" target="_blank" rel="noopener">25 GW</a> of installed solar photovoltaic (PV) capacity in August 2018. Out of the installed capacity, rooftop solar accounts for merely 2.5 GW.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/saumy/" class="vcard author" rel="author"><span class="fn">Saumy Prateek</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Saumy Prateek</strong> Staff reporter at Mercom India<br />
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/12/saumy-edited-1.png" width="79" height="102" /><a href="https://mercomindia.com/author/saumy/" rel="noopener"><strong>Saumy Prateek, </strong> </a>is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism &amp; Mass Communication from the Manipal Institute of Communication at Manipal University.<a href="https://mercomindia.com/author/saumy/">More articles from Saumy Prateek.</a></div>
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