water use - indiaenvironmentportal · to thermal power. while specific water consumption is lower,...
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Water usein solar power sectorSeptember 2018
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2© BRIDGE TO INDIA, 2018
© 2018 BRIDGE TO INDIA Energy Private Limited
AuthorsDeepak Singhal, BRIDGE TO INDIASangeetha Suresh, BRIDGE TO INDIAShipra Arora, BRIDGE TO INDIASurbhi Singhvi, BRIDGE TO INDIAVinay Rustagi, BRIDGE TO INDIA
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1. IntroductionIndia’s solar sector is growing rapidly – total installed capacity has risen from just 1 GW in 2012 to over 25 GW at present and is expected to go up by over 50 GW in the next five years.
Optimal operation and utilisation of solar plants is dependent, amongst other factors, on regular cleaning requiring extensive use of water. Soiling of solar panels drastically reduces power generation and negatively impacts project economics. Water consumption is much lower in comparison to thermal power plants – an average 0.1 m3/ MWh as against 2.2 m3/ MWh for thermal plants1. But procurement is nonetheless a considerable operational burden as solar plants are usually located in remote, arid regions with acute water shortage. Making matters worse, location of solar plants is highly concentrated – top 5 states account for 70% of total installed capacity and average solar project size continues is increasing every year.
Rapid growth and concentration in water-stressed areas exposes solar projects to a growing water risk – scarcity, rising cost, conflict with other social and economic uses and environmental degradation.
Figure 1.1: Distribution of solar power in top ten states
Madhya Pradesh 7%
Uttar Pradesh 4%
Rajasthan 12%
Gujarat 6%
Maharashtra 6%
Karnataka 23%
Telangana 14%
Andhra Pradesh 12%
Tamil Nadu 8%
Punjab 3%
Source: BRIDGE TO INDIA research
1Parched Power: Water demands, risks and opportunities for Indian power sector, WRI, 2018, BRIDGE TO INDIA research
Water procurement is a considerable operational
burden as solar plants are usually located in arid regions
with acute water shortage
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2. Water requirement in the solar sectorRegular cleaning of solar panels is necessary as soiling due to accumulation of dust, dirt, pollution, bird-droppings etc. can cause generation losses of 3-6%. To produce power at a competitive price, these ‘soiling losses’ need to be reduced to about 1% - typical operating assumption in most cases – requiring an average of two cleaning cycles per month. Even short duration of water unavailability can materially affect project returns.
Interviews with developers and O&M players across the country show high level of variation in water usage. Wasteful use is particularly common in southern regions where water availability is relatively better.
Figure 2.1: Variations in water use, litres/ module/ cycle
0
1
2
4
5
3
1 2 3 4 5 6
Minimum Maximum
Average consumption
Developer responses
Source: Industry interviews
We have estimated water consumption in each state based on installed capacity and average water consumption. We have then mapped water usage to water availability to assess water risk for the solar sector.
To produce power at a competitive price, ‘soiling
losses’ need to be reduced to about 1% - typical operating assumption in most cases – requiring an average of two
cleaning cycles per month
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Figure 2.2: Estimated water consumption in the solar sector by state
Almost 94% of solar capacity in India is exposed to medium-high level of water risk. It is imperative that water usage and adoption of suitable mitigation technologies receive more attention from both policy makers and project developers/ contractors.
At least 18% of the country’s installed capacity that is located in arid zones western India are exposed to extremely high levels of water risks. 38%, located in high water-stress parts of central and southern India, fall under high risk zones. Yet another 38% fall under medium to high risk category.
Source: BRIDGE TO INDIA research; India Water Tool, World Resources Institute Note: Water consumption has been estimated based on installed capacity as on June 30, 2018.
Gujarat
Telangana
Tamil Nadu
0
200
400
800
1,000
1,200
Wat
er c
onsu
mpt
ion
(’000
m3 /
year
)
Water stress level
600
Low Medium High Very High
Karnataka
Maharashtra
AndhraPradesh
Rajasthan
Punjab
Haryana
MadhyaPradesh
Uttar Pradesh
KeralaWest Bengal
Bihar
Chattisgarh
Uttarakhand
Odisha
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Source: BRIDGE TO INDIA research; India Water Tool, World Resources Institute Note: Water consumption has been estimated based on installed capacity as on June 30, 2018.
Figure 2.3: Water-risk exposure for solar power plants in India
Madhya Pradesh
Uttar Pradesh
Haryana
Rajasthan
Gujarat
Maharashtra
Karnataka
Telangana
AndhraPradesh
Tamil Nadu
Punjab
Very high
High
Medium to high
Medium
Low
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3. Water availability, sources and costBulk of the water (60%) used for cleaning in solar sector is sourced from ground through borewells while the remaining (40%) comes from surface water sources such as rivers, canals and lakes. Ground water is preferred by most developers and O&M contractors as it is almost free and is operationally expedient. But it requires specific regulatory permissions although there are various reports of illegal extraction.
Figure 3.1: Sources of water for solar power
Source: BRIDGE TO INDIA research
We have interviewed several industry players to get estimates of cleaning costs. Using ground water, cost of module cleaning primarily depends on labor cost and ranges from INR 42,000-66,000/ MW per year. There may be an additional cost for water treatment if water quality is unsuitable for direct use (total dissolved solids > 500 ppm).
If surface water is used, procurement responsibility is almost always outsourced to a vendor, who supplies water through tankers. In this case, the cost of cleaning rises to between INR 79,000-105,00/ MW per year depending upon location, source and quality of water. The higher costs are in observed the dry states of Rajasthan and parts of Gujarat. In parts of Rajasthan, water cost has almost doubled in the last 3-4 years due to sharp increase in demand. Sudden increase in water costs also pose a risk. For example, Karnataka hiked tariff for water meant for industrial use by 100 times in 2018 . Such drastic, unforeseen increase can substantially affect project economics since cleaning accounts for a significant 26-35% of total O&M cost if surface water is used and 14-22% if ground water is used. Conflicts over water use between industry and other users are also becoming more common.
Figure 3.2: Cost of module cleaning as a percentage of total O&M costs
Surface water
Ground water
Cost of module cleaning Other O&M costs
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Source: Industry interviews, BRIDGE TO INDIA research
In parts of Rajasthan, water cost has almost doubled in the
last 3-4 years due to sharp increase in demand
Surface water, 40% Ground water, 60%
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Wate r u se for so lar Cost o f water
Water consumed by solar power, m³/ MW/ year
Current installed capacity of solar power, GW
New annual capacity addition over the next few years, GW
174
25
10
Solar capacity, GW
Wat
er c
onsu
med
, 000
m3 /
year
0
2,0 0 0
4 ,0 0 0
6 ,0 0 0
8 ,0 0 0
10,0 0 0
12,0 0 0
25 35 45 6555INR 54,075/ MW/ yearINR 91,875/ MW/ year
Surface water Ground water
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Water use fo r so lar Co st o f water
Water consumed by solar power, m³/ MW/ year
Current installed capacity of solar power, GW
New annual capacity addition over the next few years, GW
174
25
10
Solar capacity, GW
Wat
er c
onsu
med
, 000
m3 /
year
0
2,000
4 ,000
6 ,000
8 ,000
10,000
12,000
25 35 45 6555INR 54,075/ MW/ yearINR 91,875/ MW/ year
Surface water Ground water
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4. Technologies for mitigating water useIn view of the increasing challenges in procuring water and rising costs, the larger developers have begun to actively manage their water consumption. They are trying to reduce consumption by using new technologies, improve procurement options and manage community impact through local engagement initiatives. One of the developers we interviewed is exploring rainwater harvesting to reduce conflicts with the local population over water usage.
There are two specific technologies being explored by developers and O&M contractors to mitigate water risk in the sector.
Robotic cleaning
There are many different types of robotic cleaning – with and without water. Robotic cleaning can reduce water consumption by 50-100% and has been commercially proven. It started gaining acceptance in India about two years ago and has gained significant traction in the past year. Around 3 GW of power plants are currently considering various types of robotic solutions.
Upfront capital cost of a robotic cleaning solution is about USD 1.6¢/Wp, an increase of around 3% to the total capital cost. Because of regular and more uniform/ methodical cleaning, robotic cleaning usually leads to generation gains of 1-2% per annum. Payback period is believed to be about 2-3 years in most cases.
Anti-soiling coating
Anti-soiling coatings for modules have been around for many years but have improved significantly in recent years. The ‘after- market’ solutions, where coating was applied after installing modules, were not popular as developers were apprehensive about their longevity and adverse impact on module performance/ warranties. But many module manufacturers are now offering integrated anti-soiling coating as a special add-on feature with complete lifetime warranties. Capital cost of such modules is usually higher by about USD 0.50 ¢/Wp. Water consumption is reduced by up to 35-50%, plus there is an added benefit of 1-2% incremental power output depending on project location and type of soiling.
Robotic cleaning and anti-soiling coating are not necessarily alternative solutions. They can be used together or in isolation. There are other new technologies such as hydrophobic, nanotechnology-based self-cleaning modules, which are currently in test phase.
Developers are trying to reduce consumption by using
new technologies, improve procurement options and
manage community impact through local engagement
initiatives
Module manufacturers are now offering integrated anti-
soiling coating as a special add-on feature with complete
lifetime warranties
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5. ConclusionSolar power has been acknowledged as a water-efficient alternative compared to thermal power. While specific water consumption is lower, water associated risks are higher as solar plants are typically located in dry regions and there is little headroom in cash flows to deal with rising cost and/or operational underperformance.
Water use can be optimized by benchmarking consumption levels and following industry best practices. Ideally, mapping and assessment of water availability at proposed plant locations should be completed prior to tender issuance. Policy makers should also consider specifications for maximum permissible water use and introduce norms for ensuring transparency in water procurement.
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