abhay tilwankar 11p174 final report

8/13/2019 Abhay Tilwankar 11P174 Final Report

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A. To better predict Schneider Electric India growth

- Using End markets

B. Understanding the Solar Off Grid Business in

India

Summer Internship !roposal for

!ost-Graduate !rogramme in "anagement

b#

bha# Tilwankar

$$!$%&

Management Development Institute

Gurgaon $'' (($

"a#) '($'


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A. To better predict Schneider Electric India growth

- Using End markets

B. Understanding the Solar Off Grid Business in

India

b#

bha# Tilwankar

Under the guidance of

Shri Anshul Gupta

Manager, Strategy & Alliances

Schneider Electric India

Management Development Institute

Gurgaon $'' (($

"a#) '($'


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Certificate of Approval

The following Summer Internship Report titled "To better predict Schneider Electric India growth -

Using End markets and Understanding the Solar Off !rid #siness in India" is hereby approved as

a certified study in management carried out and presented in a manner satisfactory to warrant its

acceptance as a prerequisite for the award of $ost-!rad#ate %iploma in #siness &anagement for

which it has been submitted. It is understood that by this approval the undersigned do not necessarily

endorse or approve any statement made, opinion expressed or conclusion drawn therein but approve th

e Summer Internship Report only for the purpose it is submitted.

Summer Internship Report Examination ommittee for evaluation of Summer InternshipReport

!rgani"ational #uide Signature

$ame% &r. 'nshul #upta(esignation% &anager, orporate Strategy

'ddress% Schneider Electric India )vt. *td.

+th loor, (* -uilding $o. /, Tower ,

(* yber ity, )hase II,

#urgaon 0 11//1

2aryana, India

Tel $o% /13 4+3/ 3//

Email% anshul.gup ta 5sc h ne id e r 0 e le c tr ic .c o m

$ame% 'bhay Tilwan6ar

Roll $o. )73
mailto:[email protected]:[email protected]


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Acknowledgments

I would like to express my deep gratitude towards my mentor, Mr. Anshul Gupta for

his constant encouragement and guidance to effectively meet the Project !jectiveswithin the schedule.

I would also like to thank Mr. P I Mathew, Mr. "achin #halla and Mr."unil $iku fromthe "chneider %lectric team for sharing their precious time and experience with me. Ialso thank them for giving their feed!ack and insights on my work.

I would like to express my special gratitude and thanks to all Industry exper ts and&hannel Partners in the "olar ff ' Grid industry for sharing critical informationwith me.

I would also like to thank the (aculty at M)I Gurgaon for having helped me atvarious junctures and the *i!rary team for making availa!le resources which werereally critical for successful completion of this project.

A!hay $ilwankar


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Contents

Acknowledgments ......................................................................................................... +

&ontents ........................................................................................................................

%xecutive "ummary .................................................................................................... -

Project !jectives ....................................................................................................... --

*iterature /eview ........................................................................................................ -0

A!out "chneider%lectric.............................................................................................................. 12

%nergy 1 Infrastructure............................................................................................................ 12

Industry ...................................................................................................................................... 12

)ata &entres 1 2etworks........................................................................................................ 13

#uildings .................................................................................................................................... 13

/esidential................................................................................................................................. 13

"tatistical)ata!ases3................................................................................................................... 14

Project3 $o !etter predict "chneider %lectric India growth ........................................... -4

MacroeconomicIndicators ........................................................................................................... 1

&ompetitor %nvironment.............................................................................................................. 1!

"%I Growth (orecast.................................................................................................................... 1!

Project3 5nderstanding the "olar ff ' Grid #usiness in India .................................... 00

6ey Market )rivers....................................................................................................................... 22

7awaharlal 2ehru 2ational "olar Mission 8722"M9 ..............................................................

22

/enewa!le Purchase !ligation 8/P9


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"tate Policies............................................................................................................................ 2"

"chneider %lectric /enewa!le %nergy ffering and &ompetitor Mapping ..............................

2!

Market /esearch.......................................................................................................................... 32

&onclusions and /esults ............................................................................................. ::

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&ustomer sentiments................................................................................................................... 33

&ustomer2eeds........................................................................................................................... 3#

MarketPotential ............................................................................................................................ 3$

)eriving from the Government Policydrivers......................................................................... 3$

)eriving from the IM" Market /esearch ; Apr 0-0..............................................................3$

/ecommendations and suggestions ........................................................................... :isit /esidential &ustomer Preliminary Interviews .....................................41

Appendix #3 (ield >isit Industrial &ustomer Interviews............................................................. 42

Appendix &3 (ield >isit &hannel Partner ? "I @uestionnaire ....................................................42

Appendix )3 (ield >isit &hannel Partner ? "I Interviews ...........................................................42

Appendix %3 nline @uestionnaire for ff ' Grid "olar &ustomer ...........................................43

Appendix (3 IM" /esearch orld Inverter "ales (orecast $ill 0- 8In B9 .............................44


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Page |


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List of Tables

$a!le -3 &apex under implementation.......................................................................................... 1$

$a!le :3 &ompetitor "egment wise @uarter wise /evenues ........................................................2%

$a!le +3 722"M $argets................................................................................................................. 23

$a!le 3 /P rates across "tates.................................................................................................. 24

$a!le 43 *ist of "olar cities.............................................................................................................. 2

$a!le C3 "tate wise Policies for /oof $ops.................................................................................... 2"

a'le " ( &ompetitor Mapping for "%I /% #usiness....................................................................... 31


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Page | $


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Table of Figures

(igure -3 &apex ' &MI%.................................................................................................................. 14

(igure 0 3 India "tat.......................................................................................................................... 1#

(igure :3 )atamonitor :4............................................................................................................... 1#

(igure +3 $rend analysis.................................................................................................................. 1!

(igure 3 Growth of "%I vis;D;vis 0 of the &ompetitors................................................................. 21

) ig u re ( *an tre+ *............................... ................................ ................................ .......................... 2!

) ig u re $ ( *an tre+ G............................... ................................ ................................ .......................... . 2!

) ig u re " ( *an tre+ - h ar g e - n tr llers............................... ................................ ................................ .. 2!

(igure = 3 Perceptual map "chneider /%Inverter......................................................................... 31

)igure 1% ( &ustomer 2eeds3 Industrial &ustomer.......................................................................... 3#

)igure 11 ( &ustomer 2eeds3 /esidential&ustomer....................................................................... 3

(igure -0 3 "olar ff ' Grid Market (orecast till 0- ; India.......................................................3$

(igure -: 3 Market %stimates )erived for the /esidential markets ..............................................3$

(igure -+ 3 Market %stimates )erived for the &ommercial and Industrial markets ....................3$

(igure -3 Market %stimates )erived for the &ommercial and Industrial markets .....................3$

(igure -4 3 /esidential ' - 6w..................................................................................................... 3$

(igure -C 3 "mall commercial - 6 ' -6w................................................................................. 3$

(igure -< 3 Medium commercial - 6 ' - 63$
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Page | "


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List of Abbreviations

"%I; "chneider %lectric India

#5 ; #usiness unit

/P ; /enewa!le Purchase !ligation

G(&( ; Gross fixed capital formation

M2/% ; Ministry of /enewa!le %nergy

"I ' "ystem Integrator

RE Renewable Energy


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Executive Summary

A. $he project is to !etter predict the growth of "chneider %lectric India using

the macro; economic indicators and the competitor analysis. $hedelivera!le included development of a model using the trend analysis of the

indices vis'a; vis the growth of the &ompany, validate it using previous

Euarters data and also find an index to incorporate the effects due to the

&ompetitors actions. $his project involved data collection and analysis with

respect to the Indian economy, the &ompany and its competitors. $he scope

of the project was reduced post the detailed study as the results showed a

good correlation !etween the macro; economic indicators and the other

trendsF a suita!le forecast could !e made with the model. As the

competition segments were not easily mapped to "chneiders !usinessunits and the activity level segment wise Euarterly data was not availa!le, the

competitor analysis was not used in the model.

#. $he renewa!le energy is a critical future resource which needs to !e tapped

and there is tremendous focus and incentive given !y the Indian government

for installation of renewa!le energy generation plants especially "olar

%nergy. $hese are via Grid connected as well as ff; Grid installations in

various spaces like the Industrial 1 commercial, /esidential and

Government. $he project involved identification of the need of the off;gridcustomer, the market potential of the "olar ff ' Grid !usiness in these spaces

and giving recommendations to tap this market potential.

Disclaimer

)ue to the confidential nature of the report the data points and results in thereport have !een modifiedF also names of entities and people have !eenchanged in the interest of the &ompany.

$he results and recommendations !oth !eing confidential in nature have not!een pu!lished in this report.


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Project bjectives

A. ; 5nderstanding the lines of !usinesses of "chneider %lectric

; 5nderstanding the trends !etween the Macro;economic indicators and &ompanyorder !ooking

; &ompetitor mapping and analysis

; )eveloping a model to !etter forecast the growth of "%I using %nd ; Markets

#. ; "tudying the triggers for installations in the "olar market

; Analysing the impact of these triggers

; 6ey market driver identification

; "tudying the various "tate and &entral government policies which are incentiviHingthe renewa!le energy usage

; &onducting a market research to know the reEuirements of the customer

; )etermining the market potential for "olar ff ' Grid solutions

; /ecommending action plans and esta!lishing changes in strategy to tap the marketpotential


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Literature !evie"

About Sc#nei$er Electric

"chneider %lectric 8"chneider9 is a (rance;!ased company that specialiHes in electricity

distri!ution, industrial control and automation management. $he company offers integratedenergy solutions to !uildings, industry, data centres and networks, energy and industrial andresidential markets.

"chneider has operations across %urope, 2orth America, Asia Pacific and othercontinents. It is headEuartered in /ueil Malmaison, (rance.

"chneider %lectric in figures3

00.+ !illion in sales in 0--

-:,J employees in more than - countries.

:=K of revenue in new economies

"chneider %lectric India is a su!sidiary of this company. $he !usinesses of"chneider%lectric are explained as given !elow3

Energy % Infrastructure

Products and services solutions cover3

/ Processes control and supervision/ Power supply 1 distri!ution/ %nergy monitoring and control/ 5tility management 8lighting, ventilation, elevators, intruder alert, etc.9/ "mart electrical networks management/ "ingle site or multi;site production data management/ &ritical power/ ffer prepayment systems that !ring electricity to disadvantaged customers

Main customers3 %lectrical utilities, water 1 waste treatment plants, Pu!lic;sectorinvestors, oil 1 gas infrastructure, Marine sector, etc.

In$ustry

Products and services solutions cover3

/ Processes automation/ Machine control and monitoring/ Power supply 1 distri!ution/ %nergy monitoring and control/ 5tility management 8lighting, ventilation, elevators, intruder alert, etc.9/ "ingle site or multi;site production data management/ &ritical power

Main customers3 %ngineering firms, systems integrators, %Ms, large industrial

companies, panel !uilders and electrical eEuipment distri!utors, end users.


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Statistical Databases*

Figure +* &apex , &MIE


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Figure - * In$ia Stat

Figure .* Datamonitor ./0


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Project* To better pre$ict Sc#nei$er Electric In$ia gro"t#

Macroeconomic In$icators

$he macroeconomic indicators are indicators which if used accurately can closely forecastthe economic scenario for a company. $he changes can !e seen to affect certain sectors. Afew important macroeconomic indicators are

/ Gross )omestic Product

/ &onsumer price index

/ Producers price index

/ Inflation rate

/ %mployment rate

/ 2ational Association of Purchasing management

(or the line of !usiness "chneider operates any amount of change in the Investment of the & J I JG leads to a direct impact in sales. $he Gross (ixed &apital (ormation hence has !een consideredas the most important macro;economic parameter in this study.

$he amount of fixed investment may !e stated NgrossN 8!efore taking into account depreciation9 orNnetN 8after depreciation9. #y su!tracting disposals of fixed assets from additions to fixed assets inan accounting period, we o!tain a measure of the net 8fixed9 capital formation.

$he concept of Ngross fixed capital formationN 8G(&(9 used in official statistics however doesnot refer to total fixed investment in a country.

(irstly G(&( measures only the value of additions to the fixed capital stock less the value ofdisposals of scrapped fixed assets. "o normally total fixed investment in a year is in fact a largervalue than G(&(. N$otal fixed investmentN 8gross9 is not usually a pu!lished statistical measure,since economists are interested primarily in the contri!ution of fixed investment to value addedi.e., they are interested in the net additions made to the total fixed capital stock 8additions lesswithdrawals9. If, hypothetically, the amount of fixed investment and the amount of scrappedfixed assets are eEual in value, then the total fixed investment figure would tell us only that the

scrapped fixed assets have !een replaced. If we want to know !y how much the fixed capitalstock has increased, we need to know the relationship !etween fixed assets purchased anddisposals of fixed assets.

"econdly, G(&( does not include land purchases, only investments in landimprovement, !ecause land purchased !y one person or company from another does notnormally increase the total amount of land there is 8except in cases of land reclamation9.All that happens is that the same land changes owners. If land is sold, it may yield acapital gain for the seller, !ut such profits from land sales are not usually made explicit inofficial statistics, in part !ecause a standard valuation of what the land was previouslyworth is often difficult to operationalise, in particular if the land was improved ordeveloped !y the seller. $he value of land can increase or decline due to all kinds offactors, and land valuations may differ from place to place. At !est one could estimatethe total value of land sales in an accounting interval.

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2ow that the concept of G(&( is explained, the data for the last -0 Euarters was extract ed

from the &MI% data!ase and noted. $his data was then used to create the indices taking

March 0= values as the !ase. $he Indices were then related to the "chneider %lectric

end market ratios to arrive at the #usiness unit &omposite index to get a clear picture of the

impact of the &apital formation in a given Industry or sector on the order !ooking for the#usiness 5nit.

Table +* &apex un$er implementation

Industry Aggregates

(Source : CMIE (capexunder ipleentation!!

Mar"## $un"##

Sep"##

%ec"##

Mar"#&

0ninancial

Manuacturing

0netallic ineral prducts3,",3$%

##,$%% 4$,2!$

4",12#4%,%%%

-eent3,,$$%

4,4%% 41,"!$

11,1331#,%%%

Metals & etal prducts2,#!,#

3,2#,4#1

3,%",1%

1,3",12% 2,3!,1"%

Machinery","!1 ",!!% 2$,!4

14%,$2%

1,3%,#1%

Electricity1%,!#,21

$,14,%%

!,21,#33

1,42,!1 ",%#,$4%

Electricity generatin1%,"",31

$,12,414

","$,1%

1,42,41% ",%#,$4%

Electricity distri'utin

,"## 1,4 34,3$

3

##1

%

-unicatin serices!4 2,"#% % %

1,%%%

-nstructin & real estate2,"%,"32

3,1%,#"#

2,3,%"

1,4,"# 2,!3,"%1

5eal estate2,"%,"32

3,1%,#"#

2,3,%"

1,4,"# 2,!3,"%1

6using cnstructin1,4,4!3

3,%4,!3%

1,%",#42

!","%%2,",311


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-ercial cple+es1,1,33"

#,## 1,2",%$

4$,""#2#,4!%

Indices (Mar"' )#''!

0ninancial

Manuacturing

0netallic ineral prducts12." 2$2.32 41.1" 34.! 3#.#"

-eent$1".42 1,232.%

!1##."$ 14%.$# 3$.4%

Metals & etal prducts1,%%1."

1,24!.11

1,#.1$

1,4"2.!

4."

Machinery!!.%! 1$%.!" 1$1.1$ #4.!" "%.13

Electricity"%.## !.3% 2.$" "1.%3 12.#$

Electricity generatin"2.!2 1%2.1% ."3 "3.22 13.3

Electricity distri'utin4#.2$ !.1 2.31 4".1" %.$$

-unicatin serices

%.%% 1#.$$ 4$.#% %.%% %.%%

-nstructin & real estate3%2." 1"2.!1 2%2.2! 1#4.11 !#.#4

5eal estate

3%2." 1"2.!1 2%2.2! 1#4.11 !#.#4

6using cnstructin

3"".$1 1#%.#" 2$!.14 !!.3 !%.44

-ercial cple+es!%.#% 22. 12.$$ 2"!.14 1%".11

$he ta!le a!ove shows the &AP%O under implementation in the Industries and "ectors given. $heindustry aggregates have then !een indexed to the March 0= value. $he indexed values are thenused to develop the %nd market Indicator 8*ike /esidential &ommercial #uildings Industry


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and )ata centres9. $he !usiness unit 8#59 composites have then !een derived using the %ndMarket indicators

$his part of the exercise had !een done along with the senior team ' "trategy 1 Alliances $eam at"%I.

A trend analysis was then done !y plotting the #5 indicators over several Euarters againstthe rders !ooked. $he plots showed a certain relation in the trends and using this, a fairlyaccurate forecast could !e made.

Figure 1* Tren$ analysis

8he analysis cannt 'e pu'lished due t the -70)I8E0IA9 nature this reprt:

&ompetitor Environment

"chneider electric India 8"%I9 !eing into diverse !usinesses like Industrial automation,

)istri!ution systems, "tarters, )rives, 5P", Power monitoring, "witchgear, "&A)A distri!ution

monitoring system, #uilding management systems, %nergy management systems, "ensors and

/enewa!le %nergies. It faces competition from companies like, A##, "iemens, *1$, )anfoss,

/ockwell automation, *e Grand, Loneywell in various segments and !usinesses.

SEI 2ro"t# Forecast

$he forecast model and details have not !een pu!lished in the report due to

&onfidential nature of the /eport.


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Table -* &ompetitor Segment "ise 3uarter "ise !evenues

(AllFiguresin Rs.Lakhs)

SegentType

%ec"## Sep"## $un"## Mar" ##To%ec "'( %ata notdisclosedintentionall

Sep"' $un"' Mar"'

ABB P;erSystes

$3141.#2 #41."2 #%$$. 1 3"13%.4" 442$.1$ 44$1.1!

P;erPrducts

#!#1!.4" 4!$#1.$ 4"$!.22 1 4$33."2 #%1#." 42#!%.3#

PrcessAutatin

42##1.3 2$"%#.4 2!3$!.!" 1 24%1!.4" 2!22%." 23##2.#

8iscrete

Autatin

#2$13."4 4343#.#3 4211%."# 1 44$"1.!! 4%43%.!2 3"43$.$

9;


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(igure 3 Growth of "%I vis;D;vis 0 of the &ompetitors

$he development of the model was not pursued !eyond this point as the Project!jective was met. $he incorporation of a factor to take into account the competitors wasnot accomplished due to3

-. *ack of activity level data of the revenues, reason !eing severalcompetitors not !eing listed and with no reporting in place.

0. $he mapping of segments at a #usiness 5nit level would not give the desired results


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Project* 4n$erstan$ing t#e Solar ff , 2ri$ )usiness in In$ia

5ey Mar(et Drivers

6a"a#arlal 'e#ru 'ational Solar Mission 76''SM8

$he 7awaharlal 2ehru 2ational "olar Mission is a major initiative of the Government of India

and "tate Governments to promote ecologically sustaina!le growth while addressing Indias

energy security challenge. It is a trigger for major investments in this space !y companies

and entrepreneurs !oth. It will also constitute a major contri!ution !y India to the glo!al effort

to meet the challenges of climate change.

&ost* "olar is currently high on a!solute costs compared to other sources of power such as

coal. $he o!jective of the "olar Mission is to create conditions, through rapid scale;up ofcapacity and technological innovation to drive down costs towards grid parity. $he Mission

anticipates achieving grid parity !y 000 and parity with coal;!ased thermal power !y 0:,

!ut recogniHes that this cost trajectory will depend upon the scale of glo!al deployment and

technology development and transfer. $he cost projections vary ' from 00K for every dou!ling

of capacity to a reduction of only 4K with glo!al deployment increasing -4 times the current

level. $he Mission recogniHes that there are a num!er of off;grid solar applications particularly

for meeting rural energy needs, which are already cost;effective and provides for their rapid

expansion.

$he immediate aim of the Mission is to focus on setting up an ena!ling environment for solar

technology penetration in the country !oth at a centraliHed and decentraliHed level. $he firstphase 8up to 0-:9 will focus on capturing of the low hanging options in solar thermalF on

promoting off;grid systems to serve populations without access to commercial energy and

modest capacity addition in grid;!ased systems. In the second phase, after taking into

account the experience of the initial years, capacity will !e aggressively ramped up to create

conditions for up scaled and

competitive solar energy penetration in the country. $o achieve this, the Mission targets

are3 $o create an ena!ling policy framework for the deployment of 0, M of solar

power !y

000.

$o ramp up capacity of grid;connected solar power generation to - M within three years '

!y 0-:F an additional : M !y 0-C through the mandatory use of the renewa!le

purchase o!ligation !y utilities !acked with a preferential tariff. $his capacity can !e more

than dou!led ' reaching -,M installed power !y 0-C or more, !ased on the enhanced

and ena!led international finance and technology transfer. $he am!itious target for 000 of

0,

M or more, will !e dependent on the learning of the first two phases, which if successful,

could lead to conditions of grid;competitive solar power. $he transition could !e appropriately


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up scaled, !ased on availa!ility of international finance and technology.

$o create favoura!le conditions for solar manufacturing capa!ility, particularly solarthermal for indigenous production and market leadership.

$o promote programmes for off grid applications, reaching - M !y 0-C and 0M !y 000.

$o achieve - million sE. meters solar thermal collector area !y 0-C and 0 million !y

000. $o deploy 0 million solar lighting systems for rural areas !y 000.

$he aspiration is to ensure large;scale deployment of solar generated power for gridconnected as well as distri!uted and decentraliHed off;grid provision of commercialenergy services. $he deployment across the application segments is envisaged asfollows3

Table .* 6''SM Targets

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!ene"able Purc#ase bligation 7!P8

5tility connected applications3 constructing the solar grid. $he key driver for promoting solarpower would !e through a /enewa!le Purchase !ligation 8/P9 mandated for powerutilities, captive generating plants and the open access consumer with a specific solar

component. $his will drive utility scale power generation, whether solar P> or solar thermal.$he "olar Purchase !ligation will !e gradually increased while the tariff fixed for solar powerpurchase will decline over time.

$a!le +3 /P rates across "tates

State Man$atory min Solar percentageconsumption un$er t#e !P -0++9+-

Laryana .0K$amil 2adu .KMaharashtra .0KGujarat .K

6arnataka .0KPunja! .:KMadhya Pradesh .+K

Andhra Pradesh .0K5ttar Pradesh .K/ajasthan .K

Assam .-K#ihar .K&hhattisgarh .0KLimachal Pradesh .-K7ammu 1 6ashmir .-KGoa and 5$ .:K

MiHoram .0KManipur .0K7harkhand .K6erala .0KMeghalaya .:K2agaland .0Krissa .-K$ripura .-K5ttarkhand .0K

$he off;grid opportunity ; lighting homes of the power; deprived poor3

A key opportunity for solar power lies in decentraliHed and off ;grid applications. In remote andfar;flung areas where grid penetration is neither feasi!le nor cost effective, solar energyapplications are cost;effective. $hey ensure that people with no access, currently, to light andpower, move directly to solar, leap;fogging the fossil fuel trajectory of growth. $he key pro!lemis to find the optimum financial strategy to pay for the high;end initial costs in theseapplications through appropriate Government support.

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&urrently, market !ased and even micro;credit !ased schemes have achieved onlylimited penetration in this segment. $he Government has promoted the use ofdecentraliHed applications through financial incentives and promotional schemes.hile the "olar Mission has set a target of - M !y 0-C, which may appear small, !utits reach will add up to !ringing changes in millions of households. $he strategy will !e learnfrom and innovate on existing schemes to improve effectiveness. $he Mission plans to3

Provide solar lighting systems under the ongoing remote village electrification programme ofM2/% to cover a!out -, villages and hamlets. $he use of solar lights for lightingpurposes would !e promoted in settlements without access to grid electricity and since mostof these settlements are remote tri!al settlements, =K su!sidy is provided. $he su!sidy andthe demand so generated would !e leveraged to achieve indigeniHation as well as lowering ofprices through the scale effect. (or other villages which are connected to grid, solar lights would!e promoted through market mode !y ena!ling !anks to offer low cost credit.

; "et up stand alone rural solar power plants in special category "tates and remoteand difficult areas such as *akshadweep, Andaman 1 2ico!ar Islands, *adakh region of 716.#order areas would also !e included.

; Promotion of other off grid solar applications would also !e encouraged. $his would

include hy!rid systems to meet power, heating and cooling energy reEuirements currently!eing met !y use of diesel and other fossil fuels. $hese devices would still reEuire interventionsto !ring down costs !ut the key challenge would !e to provide an ena!ling framework andsupport for entrepreneurs to develop markets.

Lence, knowing the availa!ility of the market the o!jective is to find out how !ig the marketis and how can "chneider %lectric tap it.

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Solar &ities

$he "olar &ity aims at minimum -K reduction in projected demand of conventional energy at

the end of five years, through a com!ination of enhancing supply from renewa!le energy

sources in the city and energy efficiency measures. $he !asic aim is to motivate the local

Governments for adopting renewa!le energy technologies and energy efficiency measures. Ina "olar &ity all types of renewa!le energy !ased projects like solar, wind, !iomass, small

hydro, waste to energy etc. may !e installed along with possi!le energy efficiency measures

depending on the need and resource availa!ility in the city.

M2/% has identified +< such potential solar cities of which :C have got sanctioned and 4

cities have su!mitted their Master plan.

Table :* List of Solar cities

Sr;'o; State &ities for "#ic# in9principle approvalgiven

-. Andhra Pradesh -. >ijaywadaQ

0. Assam 0. Guwahati, :. 7orhatQ

:. Arunachal Pradesh +. ItanagarQ

+. &handigarh . &handigarh Q

. &hhattisgarh 4. #ilaspurQ, C. /aipurQ

4. Gujarat


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2anded, 0. "hirdi

-:. Madhya Pradesh 04. Indore, 0C.GwaliorQ, 0


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State Policies

Apart from the &entral government initiatives the "tate Governments and the 2odal

Agencies for /enewa!le %nergy )evelopment also come out with policies. A summary of

state wise policies are given !elow3

Table /* State "ise Policies for !oof Tops

State pportunity Policy Driver

est #engal Ligh /ise #uildings Mandatory for all Ligh /ises to have "olar

Installations

Meghalaya #uilding Integrated P> "ystems

up to kp

M2/% support up to K of the cost, or

/s. 0 lakhs per kp

Andhra

Pradesh

"P> Power Projects Generation #ased Incentive 8G#I9. $ariff

applica!le is /s.-C.=- ps. per 6wh and thetariff is applica!le for a period of 0 years

Gujarat Gandhinagar /esidential space Green Incentive for the /oof $op owner

6arnataka /oof $op Grid connected solar

6p level projects of 6p to

- 6p

Green Incentive via 2et Metering

7harkhand Power Plants 1 ther systems /s. -, array &apacityor K of %x;works cost

Maharashtra "olar /oof $ops for the state $ariff for "olar /ooftop P> /s . ?kh

higher than the $ariff specified for "olar P>

projects. *evelised $ariff /s. - "ystems

up to kp

M2/% support up to K of the cost, or

/s. 0 lakhs per kp

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ii. Indian players with good local reach like PP" , "tat;con, 5niline etc

$he market sees a trade;off !etween price and Euality, where local players in general have a

lower price, lower Euality and lesser lead time, whereas the international !rands tend to have

a higher cost, !etter Euality and longer lead times.

"chneider Oantrex products can !e categorised in the &ategory I of the two categorie s a!ove. Afew !enefits are as listed !elow 3

*ightweight and easy to install

Inverters can !e mounted side !y side with Hero clearance

*&) provides instantaneous information ' power level, daily energy and lifetime

production, system status, and installer customiHed screens. $hese can !e used

for remote monitoring of the Plant and communication.

"ealed inverter enclosure can !e Euickly separated from the wiring !ox allowing )&?A&connections to remain intact in the event the inverter needs to !e serviced

$en;year standard warranty

"eamless networking with Oantrex O system components

Ligh efficiency over operating range

%asy;to;install

(lexi!le system configuration

5sed as stand;alone or as complete system

Oantrex G$ 8Grid $ie9 /ange from :.C 6 ' .: 6

Oantrex O 8ff ; Grid9 /ange from + k>A ' 4 k>A

MPP$ charge controllers and PM range of &harge controllers

It is a !uyers market in the solar Inverter market with the Installer, &onsultants and the %nd

; 5ser, in the order of increasing Importance, determine the installation of a the component.

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$he perceptual map !elow gives a picture of the market "cenario for the "chneider Oantrex

Inverters3

(igure = 3 Perceptual map "chneider /% Inverter

Table - : &ompetitor Mapping for SEI !E )usiness

Sr;

'o

;

'ame of t#e

&ompetitor

Max; P system.

&hannel Partners ? "Is ' (ield >isit Interviews3/ ho are the players in this market/ hat are the products availa!le with them/ $o judge the market sentiments/ Possi!ility of the channel partner tie ' up with "chneider %lectric

$he Euestionnaire used refer Appendix & 8&onfidential9.

- &hannel partners and "Is over the )elhi ' 2&/ region were interviewed to gaina perspective ? opinion over the "olar ff ' Grid &ustomer ' nline survey3

/ $o understand as to what makes a customer go for an investment in a solar Installation/ hat are the major hindrances in going solar/ here would a prospective !uyer go to find out a!out more the avenues/ $he need of the customer, primarily from the /esidential and Industrial space

$he nline survey received 00= responses. $he target audience for the survey were the&ustomers of "%I. $his ensured the survey was a Pan India survey and it had the correct mixof the Industrial and /esidential users.

$he respondents were from 0- states, with ++ K of the respondents from the Leavy%ngineering and Industries !ack ground.

$he responses for the Euestions were taken on a likert scale. $he Euestionnaire was draftedon the !asis of the (ield >isits and the preliminary surveys at the Aditya "olar shop and the/ajiv Gandhi /enewa!le %nergy Park, done !efore framing the survey Euestions.

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38/50

&onclusions an$ !esults

Given !elow is the "ummary of /esponses to understand the customer sentiments in the"olar off Grid industry.

&ustomer sentiments

Lindrances in going "olar3

he cnclusins cannt 'e shared due t the -70)I8E0IA9 nature the reprt

/eason for going "olar3


Page | 33


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Avenues a customer approaches to go "olar3


Page | 34


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&ustomer 'ee$s

+igure #' : &ustomer 'ee$s* In$ustrial &ustomer

8he cnclusins cannt 'e shared due t the -70)I8E0IA9 nature the reprt:

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+igure ## : &ustomer 'ee$s* !esi$ential &ustomer


Page | 3


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Mar(et Potential

$he market Potential for the solar ff; Grid !usiness was calculated !asis theGovernment Policy drivers, market environment and through insights gained from the

Industry expert interactions.

$he market potential was segregated into : major parts

/esidential

&ommercial and Industrial

Government

Deriving from t#e 2overnment Policy $rivers

(igure -0 3 "olar ff ' Grid Market (orecast till 0- ; India

(igure -: 3 Market %stimates )erived for the /esidential markets

(igure -+ 3 Market %stimates )erived for the &ommercial and Industrial markets

(igure -3 Market %stimates )erived for the &ommercial and Industrial markets

Deriving from t#e IMS Mar(et !esearc# 9 Apr -0+-

Market estimates for segments3

(igure -4 3 /esidential ' - 6w

(igure -C 3 "mall commercial - 6 ' - 6w

(igure -< 3 Medium commercial - 6 ' - 6

(igure -= 3 *arge commercial -6 ' - M

$he recast igures and the graphs hae nt 'een pu'lished here due t the -70)I8E0IA9nature the reprt.

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!ecommen$ations an$ suggestions

/ he recendatins hae 'een discussed and cneyed t the SEI Manageent.

he cntents this sectin cannt 'e shared as it is -70)I8E0IA9.

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!eferences

1. h ttp(>>; ; ; . s c hn e i d er e l e ctri c . c .in

2. h ttp(>>; ; ; .ind ias ta t. c

3. h ttp(>>c a p e + . c i e . c >

4. h ttp(>>; ; ; .in es t rg u i d e . c >ig u ar ti c l e 2" " e c n i c tren d s l ead i n g e c n i c

i nd i c a t rs e+plained.htl

#. ?erry @. Shan, 6siuhuern ang, 5en u, )ereydn Saai =2%%#:, 8ynaic

Mdelling and )recasting n Enterprise 5eenue ;ith 8eried Granularities,

6P92%%#!% May 12, 2%%#, Intelligent Enterprise echnlgies 9a'ratry, 6P

9a'ratries Pal Alt

. h ttp(>>i nd i a .g .in >a l li p r s > a lld c s > 1##$ . pd

$. 098- h ttp(>>n l d c .in > 5 E -.as p +

". Electricity in India B 7ct'er 2%11 B 8ata nitr reprt

!. 5E -nnect


45/50

Page | 3!


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Appen$ix

Appendix A3 (ield >isit /esidential &ustomer Preliminary Interviews

Appendix #3 (ield >isit Industrial &ustomer Interviews

8he cntents this appendi+ cannt 'e shared as it is -70)I8E0IA9:

Appendix &3 (ield >isit &hannel Partner ? "I @uestionnaire

8he cntents this appendi+ cannt 'e shared as it is

-70)I8E0IA9:Appendix )3 nline @uestionnaire for solar ff;

Grid customer 8he cntents this appendi+ cannt 'e shared

as it is -70)I8E0IA9:

Appendix %3 IM" /esearch orld Inverter "ales (orecast $ill 0-

8he cntents this appendi+ cannt 'e shared as it is -70)I8E0IA9:

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Appen$ix A* Fiel$ plants under the ff;Grid )ecentraliHed "olar Application Programme. $he*ead for the AAA and ### plants were claimed to !e generated here.

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Appen$ix )* Fiel$


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Appen$ix E* nline 3uestionnaire for ff , 2ri$ Solar &ustomer8he cntents this appendi+ cannt 'e shared cpletely as it is-70)I8E0IA9:

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Appen$ix F* IMS !esearc# =orl$ Inverter Sales Forecast Till -0+: 7In @8

8he cntents this appendi+ cannt 'e shared as it is -70)I8E0IA9 and 9icensed ruse t

Schneider Electric.:

abhay tilwankar 11p174 final report

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