Continuation of Few question; few answers (1)
How financially sustainable is our organisational model?
The project cost includes the cost of engineering, erection and commissioning. O&M and AMC charges are billed separately. The Project ROI / Interest costs along with conservative estimates of energy generation are factored in, while calculating the pay-per-unit price quoted to the customer.
How scalable are our activities? What is the size of the opportunity in terms of the potential addressable market for our services? Target customers and our figures against external data.
All industrial heating applications in the 60-120 Deg Cel are potential target for our solution. The applications are spread across almost all manufacturing sectors such as Automobile, Engineering, Food, Dairy etc. New technologies in Effluent Treatment-Evaporation (ETP) also operate in the 90-120 Deg Cel range. The KPMG report of 2012, estimates the realistic size of the Indian market for Solar Thermal in Low temperature Industrial heating applications as 20,000 MW (70 Million SQ MTR of thermal collectors to replace 4.8 Million Tons of Oil per year)
(Source: Solarthermal World Page 65 Section 7.2.2) We can contribute at least 10,000 MW. At an average of 2 MW per project, this will require 5000+ projects to be executed through 50+ partners across India over 5 years. We can also offer our solution and business model to customers outside India by working through local partners in each country.
The scale of impact that our organisation’s achievements have had, technically, organizationally and socially. For you to understand the significance of this, we have provided tangible, quantitative figures and comparisons. The obstacles we face and how we try to overcome.
Currently we have 2 major industrial customers totaling 1200 KW of capacity and 3 ongoing customers close to 500 KW of capacity. This is excluding the small canteen applications we have done for others.
The details are as below:
Installation: Wheels India Limited Chennai
Project size & type 630 KWth – Auto Hybrid
Solar thermal energy produced 3780 KWh / day
Fossil fuel equivalent 383 liters / day
Fuel replaced Furnace oil
Annual carbon abatement 2,80,800 Kg
Application Pre-treatment process
Payment Model to AEPL Monthly payment
Installation: Sona Koyo Steering Systems Limited Chennai
Project size & type 210 KWth – Auto Hybrid
Solar thermal energy produced 1260 KWh / day
Fossil fuel equivalent 120 liters / day
Fuel replaced Diesel
Annual carbon abatement 97,000 Kg
Application Pre-treatment process
Payment Model to AEPL Monthly Payment
The social, environmental and economical impact of our achievement due to the innovation in technology and business model will be huge once there is wide spread adoption of this by the industry for <120 Deg Cel applications. We have so far identified 120 MW of applications. Seriously interested customers are 25-30 MW. But the actual installed base is only 1.2 MW. This is because the voluntary adoption and decision making process in the industry is very slow.
Worldwide and in India, the importance given to Solar PV is not given to Solar Industrial Heating. It is 20,000 MW opportunity in India alone, that can be achieved without any Government Subsidy. When the cost of solar thermal energy (after factoring all risks and commercial finance cost) in pay per unit ESCO model without subsidy is between Rs 4.5 to 6.0 per KWH, continuing to burn 4.8 Billion Tons of Oil per year for such applications is a criminal waste.
IEA task 49, GIZ So Pro, WWF are some pioneers that have identified this and hence involve us in their activities, recognize and support us currently.
(To be continued)