This presentation Gives you an idea about procurement for a solar power plant and the industry leaders in solar PV module manufacturing

1. Solar Power Plant Procurement's

2. COMPLETE PROCESS OF PROJECT EXECUTION

3. KEY PARAMETER FOR EFFECTIVE
SOURCING
• Experienced Team – Shouldhaveexperienced professionals. The management team is constituted by a highly experienced
leadership team.
• Engineering Excellence – Focus on value based engineering, design and planning.
• Quality Focus - Well-defined and stringent quality standards for supplier selection. Existing relationship with the tier 1 supplier
helps in ensuring the quality and timely execution of the projects.
• Engineering – Re-engineering of complex processes in the most economical manner
– Resulting in increase in output and reduction in losses
– Resulting in minimal cost over-run
– Resulting in cost savings during execution
• Effective procurement – Procurement strategy driven by a deep understanding of vendors / contractors network in India and
abroad.
– Ordering with established vendors to facilitate cost effectiveness & standardization
– Explore & develop vendors for contingency
– Efficient time management in finalizing, ordering & tracking of supplies
• Demonstrated capability in systems integration: An in-depth knowledge of PV plant design and optimization techniques for a
wide spectrum of PV technologies.
•

4. STRATEGY OF PROCUREMENT
PROCUREMENT
New supplier
identification
Optimally rated
equipment chosen
Quality and Certified
products
Tie-ups & SLA with
reputed vendors
Experienced procurement
team
Strategic
payment
terms for
critical items
for long term
view
Pre-Bid tie up
and SLA
Vendor base and
Geographic
location of
projects is
mapped
Requirement
Consolidation

5. GLOBAL SOURCING TIE UP
STRATEGY FOR SOURCING
 Tie-ups with Major OEM’s,
Vendors
 Strong Focus on Quality and
Certification of products
 Strong SLAs with major
vendors for dedicated O&M
practice
 Procuring Electrical
Equipment for more than 8
decades
 Pre Quality audit of
manufacturing facility of
vendors
 EHS process validation
Modules Inverters Cables Transformers

6. CENTRALIZED PROCUREMENT
Leverage Buying Power and Optimize System Cost
Deploy best practiced procurement teams to establish broad
connections with world famous solar suppliers and are
professional in both quality control and cost optimization.
Advantages Ensuring the Success of Project
- Robust, agile supply chain with a global network, strong
purchasing power, and timely delivery
- Integrated planning, scheduling, and execution system
- Significant improvements in cost reduction and installation
speed
- Ideal partner with leadership, experience, and technical
expertise
- Globally centralized supply chain management
- Selection of the best components and equipment with
respect to quality, price-performance ratio, and harmonization
- Key components of the highest quality from premium
bankable suppliers
- Cost control and security through strict cooperation
agreements
- Leverage buying power and optimize project cost
- Significant cost-reduction improvements

7. EFFICIENT LOGISTICS & LOGISTIC DIFFERENTIATOR
Single window for all
Centralized CHA
and freight
forwarder
Finalization
B.O.E
,Advance
reconciliations
LC Remittance
Centralized
LC, TT &
Advance
releases
Advantages:
verticals
Single window for all
bank liasonning
Post export documents
traceability
• Deploying of freight forwarders for material
movement at vendors premises
• Tracking of shipments on daily basis to ensure
timely deliveries at sites
• Planning and co-ordination for Road permits
and MNRE documents for excise exemption –
Teams formed to ensure smooth movement of
material to site
• HSS, B/L retrieval from bank ,clearing of
containers at port and local freight seamlessly
completed within 4 days of shipment docking
• Planning and distribution of resources allocated
to this ensure vital element and monitored by
Head SCM
• Co-ordination with site team to ensure
minimum turnover time of containers
evacuation.

8. S
O
LONG TERM RELATIONSHIP WITH SUPPLIERS
•
•
•
•
•
Identifying and developing new vendors with audit
Periodic vendor evaluations
Getting differential rates in the market
Establishing Rate contracts both annual and monthly
Strategic Purchase decision involving Top personnel of suppliers
ANNUAL RATE
CONTRACTS WITH
VENDORS WHICH
HELPS IN
COMPETITIVE RATES
AND STOCKS
DISPOSAL ONCE
PROJECT SITES ARE
OVER.
VENDOR FINANCING
SCHEME : VENDORS
GET THEIR PAYMENT
WITHIN 30-45 DAYS
THROUGH RTGS
IMPROVING THEIR
WORKING CAPITAL
REQUIREMENTS
WORKING WITH
VENDORS FROM PRE
TENDER STAGE AND
GETTING THEM
ENLISTED FOR
PROJECTS PROVIDES
DIFFERTIAL PRICES T
SECURE ORDERS
PROVIDING LAST
CHANCE OF REFUSAL
TO VENDORS WHO
HAVE SUPPORTED IN
TENDER STAGE

9. ty and
HS
pliance
ost
BASIS FOR SELECTING OF VENDORS
Time
C
Quali Supplier past
E
performanceCom and reliability
• There should be a proccess for audit and to
have strong and long term strategic tie up
• Involve in process improvement of vendors and
suppliers
• Standardization of engineering design to
procure material/ equipment's from regular
vendors in time
• Bulk buying to get the benefit of economies
• Selection of Freight forwarded for carrying the
material at competitive prices
• Supplier past performance and reliability
ensures delivering the right quality st the
project

10. ``````` ``` QUALITY CONTROL
QUALITY IS OUR MOTTO
Activity
ITP (Inspection Test Plan)
For Procured Materials at
Factory
Activity Owner Documentation
Incoming Material Inspection Report
In-Process Inspection Reports
Final Inspection Reports
Performance Witness
Performed by: Vendors
Checked by: SWL QMC Team,
Third Party & Project Owner
Installation Inspection
Method Statement
Installation Checklist
Inspection Records
FQP (Field Quality Plan)
For Physical Installation of
System
Performed by: SWL
Checked by: SWL QMC Team,
Project Owner
•
•
•
Integrated Testing Plan
Pre-Commissioning Checklist
IndividualTest Records
System Test Records
Data Inputs/ Outputs
Certificate of Conformance
ATP (Acceptance Test Plan)
Integrated Performance
Test
Performed by: SWL
Checked by: Project Owner
•
•
•
•
•

11. SELECTION OF PV MODULES
KEY PARAMETERS FOR SELCTION OF PV MODULES:
1. Module shall be 320 Wp or higher with linear degradation.
2. It should be PID resistant
3. It should have 4 sq. mm cable with atleast 1200 mm length
4. Current sorting shall be available for +_5% per pallet.
5. Serial defect should not be present in the modules
6. Have good reference in INDIA
7. It should have backing from Insurance co. such as Munich, RE
8. It should have anti reflecting coating glass of 3.2 mm thickness.
9. Power coefficient shall be low.
10. Junction box shall have at least 3 bypass diodes and output cable shall be compatible with MC4 or MC4
compatible connectors.
11. It should have 4 BB

12. SELECTION OF PV MODULES
KEY PARAMETERS FOR SELCTION OF PV MODULES:
Validity of the documents including Certificates.
- Compliance of the product (including Bill of Materials) with the required certifications designated by the
manufacturer.
- Compliance of the product with other related certificates required by the client, including but not limited
to IEC62804 (PID).
-IV test and curve analysis, including:
Equipment validation | Annual calibration | Maintenance records | First and Second Reference Module
validation
Testing Procedure | Standard Operating Procedure validation | Frequency of calibration and records
Test Results | Pmax (to be within the tolerance) | All electrical parameters including fill factor | IV curve
- Electro-luminescence inspection
- Visual Inspection
Workmanship defects
Verification of components visually and from manufacturer’s internal system
Packaging
--BOM Verification as per agreed and certified specifications.

13. Module losses
generally
account for
major losses in
the system

14. PRICING TREND IN SOLAR PV

15. CURRENT PRICE OF ROOFTOP MARKET
ROOFTOP MARKET:
• Prices vary from 52 RS/ Wp to 60 Rs. / Wp
• Prices depends on the following:
 size of the roof.
 Evacuation Voltage
 Type of roof ( Trapezoidal/ high seam/ RCC)
 Inverter selection
 Module configuration
 Misc. requirement
In the range of 42-44 USD Cents/ Wp
Modules
String Inverter approx. 6 Rs/ Wp without tax.
Inverter
RCC ROOF: Approx 3-4 Rs/ Wp, metallic roof approx. 2 Rs/
Wp
Structures

16. TREND OF SOLAR PV PRICING
WHAT ARE THE REASON FOR THE DROP IN SOLAR SYTEM PRICING?

17. REASONS OF LOWERING OF SOLAR PV
PRICING
1. Drop in Module Price.
2. Optimization of Engineering i.e. DC: AC ratio
3. Entry of New manufacturers in the market
4. Customized solutions
5. Increase in Size of the project
6. Reduction in BOS price due to higher
efficiency of Modules
7. Reduction in structure weight due to better
material like ZAM/ Galvalume

18. TYPICAL SOLAR PLANT
solar@sterlingwilson.com
Rohit Bhandari
THANK YOU