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india solar power

India-based Solar IPP Azure Power Raises $500 Million Through Bond Sales

written by saurabh

One of India’s leading solar power project developers – Azure Power – managed to raise $500 million through bond sale to overseas investors.

The proceeds from the bond sale will be used to purchase rupee-denominated debentures and loans of subsidiaries that directly own several solar power projects across India. The company has more than 1,100 megawatts of solar power capacity under construction.

The bond issue received tremendous response as investors offered to put in around $1 billion against the bond size of $500 million.

Azure Power will offer a yield of just over 5.5%. This is a pretty attractive rate for international investors but for Azure Power this is a much better deal. The yield it will pay is less than even the primary lending rate of the Reserve Bank of India. If Azure had raised these funds from Indian banks it may have had to pay as much as twice as much.

This is perhaps one of the most critical reason for Indian private sector renewable energy developers to raise funds from international markets through bonds. Indian banks are currently overexposed to the power sector and several thermal power plants have become non-performing assets due to several reasons including, over-supplied market, increased coal costs and competition from renewable energy.

As a result, renewable energy sector finds it difficult to raise debt from Indian banks even if the latter are willing to provide funding. Solar power developers are facing sector-specific issues as well. We reported in May this year that solar power tariff bids in India have collapsed 26% in just 3 months. This sharp correction and aggressive bidding by developers may be making Indian lenders nervous as they could be apprehensive of financial sustainability of the projects.

Recently, another India-based renewable energy developer Greenko Energy Holdings also raised $1 billion in the largest green bond in Asia. The company had acquired assets from SunEdison India following bankruptcy of latter’s American parent.

Funds raised from the issue will serve multiple purposes for Greenko. About half of funds will be used to refinance a $500 million dollar bond issue floated by the company in 2014. Proceeds from the issue will also be used to retire debt it inherited along with the acquisition of SunEdison India’s assets.

July 31, 2017 0 comment

India Needs To Do More To Achieve 175 Gigawatts Renewable Energy Target, Says Rating Firm

written by saurabh

Delay in payments from utilities, non-compliance with renewable energy procurement targets and non-availability of transmission infrastructure for power injection are some of the major issues Indian renewable energy developers are facing. These must be addressed on an urgent basis if the Indian government hopes to achieve 175 gigawatts of installed renewable energy capacity by March 2022.

Ratings agency ICRA has released a report stating that while the government’s policies and market conditions are very well suited for rapid growth in the renewable energy sector, several major challenges remain for the project developers.

According to the agency, the sharp fall in solar tariffs is the result of falling module prices, sharp increase in the number of project developers and the jump in number of competitive auctions. As we have reported earlier, solar power tariff bids have fallen 73% since the launch of the National Solar Mission in 2010.

The highest tariff some of the earliest projects still receive is Rs 17.91/kWh while the lowest and most recent auction saw tariff bids of Rs 2.44/kWh.

The Indian government has already increased its procurement target for solar power to 8% by 2022. However, many states are yet to align their own targets with this national target. States where solar installations are high often have transmission constraints forcing them to cutback on solar power procurement. Additionally, many states still prefer thermal power over solar and wind power as tariffs of majority of older renewable energy projects are higher than coal-fired power plants.

ICRA expects that under a conservative scenario the cumulative capacity requirement for solar and wind to meet the renewable purchase obligation will be 65 gigawatts between 2018 and 2022. This results in an installed capacity of 122 gigawatts by March 2022, significantly short of the 175 gigawatts target.

Current installed capacity for wind and solar power is 32 gigawatts and 12.5 gigawatts, respectively. However, given the large number of solar power auctions in last few months ICRA expects higher capacity addition from solar this year compared to wind energy.

Image by vectoropenstock.com for Cleantechies

July 31, 2017 0 comment

Indian State Asks Solar Developers To Voluntarily Reduce Tariffs Two Years After Auction

written by saurabh

15 project developers on the verge of commissioning their utility-scale solar power projects in the Indian state of Uttar Pradesh recently received a shock when the state’s regulator asked them to reduce the tariff for their projects.

Competitive auctions held in 2015 in Uttar Pradesh saw utility-scale solar power projects allocated to 15 developers in a tariff range of ₹8.60/kWh (13¢/kWh) and ₹7.02/kWh (11¢/kWh). All these projects are now nearing completion and 14 of the 15 developers have been asked to match the lowest bid of ₹7.02/kWh. This means a reduction of up to 18% for the highest successful bidder.

It is a near-standard practice to ask bidders to match the lowest received bid but this usually happens immediately after the auction is complete and not a couple of years later when the project developers have made all investments and are ready to feed the grid. The state of Tamil Nadu recently implemented this practice for its 1.5 gigawatts solar auction. Most of the project developers agreed to match the lowest bid without any issues.

Most auctions in India do not see a large band of bids, especially winning bids. However, Uttar Pradesh cannot be compared with states like Rajasthan, Tamil Nadu, Gujarat or Karnataka and Andhra Pradesh. Uttar Pradesh is not among the pioneering states in solar power development and thus lacks infrastructure and regulatory support that is available to developers in Rajasthan or Gujarat.

The recent auction in Rajasthan, for example, saw immense competition among developers who quoted India’s lowest-ever tariff of ₹2.44/kWh (3.8¢/kWh). This was possible because land for project had already been assigned and acquired, because transmission infrastructure for the project was already available and being park of a solar park, the project developer had access to other support infrastructure that would be needed to set up the project.

None of these conditions were available in Uttar Pradesh at the time of the auction. Additionally, the power purchase agreements signed in Uttar Pradesh are for only 12 years compared the country-wide standard of 25 years.

The timing of this decision by the regulator has jeopardised the investment of project developers. As they near commissioning date they may have limited choice between accepting the decision or challenging it in a tiring court case.

July 31, 2017 0 comment

Too Much Solar Power: Indian State Refuses Power From One Of Country’s Cheapest Solar Projects

written by saurabh

Solar power market in India seems to have expanded at such an astounding pace that now states are unwilling to accept more solar power market, such a case has propped up in the state of Andhra Pradesh.

According to media reports, Andhra Pradesh has refused to sign power purchase agreement for 250 megawatt solar power project part of the Kadapa solar power park stating that it has sufficient solar power coming up and does not required any more at the moment.

The project in question was secured by Solairedirect, a subsidiary of French energy major Engie. Solairedirect submitted a winning bid of Rs 3.15/kWh (4.9¢/kWh) in an auction organised by the Solar Energy Corporation of India for NTPC Limited which is developing the solar power park. NTPC Limited, the largest power generation company in India, was supposed to sign the power purchase agreement with Solairedirect and would have then supplied it to power utilities in Andhra Pradesh.

Andhra Pradesh had an installed solar power capacity of 1,294 megawatts at the end of March 2017 and is expected to increase it to 1,867 megawatts by March 2018. The state utilities thus claim that they have contracted enough solar power and do not require additional supply.

While the power utilities claim to have contracted enough solar power, the math does not add up.

The Andhra Pradesh Electricity Regulatory Commission (APERC) has proposed to increase the share of renewable energy in its electricity mix to 25.25% by March 2022. For non-solar renewable energy technologies, APERC has proposed a target of 12.50% by March 2022. The commission has also proposed to increase the solar power share from 4.75% in 2017-18 to 12.75% in 2021-22.

According to the Ministry of New & New Renewable Energy (MNRE) at 8% solar RPO target, Andhra Pradesh would require 9,834 megawatts operational capacity by March 2022. At 12.75% this capacity requirement would increase substantially.

Project developer Solairedirect is not expected to suffer from this setback as NTPC is free to approach power utilities of other states to sell this electricity. Several states across India are yet to move towards solar power on a large-scale.

July 31, 2017 0 comment

China Warns India Against Prospective Anti-dumping Duties On Solar Modules

written by saurabh

Amidst continued border issues, China has warned India against levying any anti-dumping duties on solar modules.

Chinese officials warned India against the use ‘trade remedies’ less than a week after India’s Directorate General of Anti-Dumping and Allied Duties announced that it shall undertake anti-dumping investigations into solar modules imported from three countries – China, Taiwan and Malaysia.

Officials of China’s commerce ministry said that any trade measures the levy duties on solar modules imported from China will be detrimental to India’s solar power sector as well as trade relations between the two countries.

On 21 July, India’s Directorate General of Anti-Dumping and Allied Duties responded to a petition by an association of Indian module manufacturers which sought relief from the low-cost Chinese modules that have flooded the Indian market. The sharp collapse in solar module prices imported from China has resulted in a much steeper fall in tariff bids for utility-scale solar power projects in India.

The Indian manufacturers have made several attempts to push the government for relief, either by levying anti-dumping duties or through direct financial incentives. None have worked.

In 2013, the Ministry of Commerce and Industry had proposed to levy duties ranging from $0.11 to $0.81 per watt on modules imported from the US, China, Malaysia and Chinese Taipei. However, this recommendation did not find favour with other ministries, including the Ministry of New & Renewable Energy. The proposal was thus rejected by the Ministry of Finance.

… the Ministry of Finance has refused to approve a Rs 20,000 crore ($3.1 billion) relief package for the solar cell and module manufacturers. The Ministry of New & Renewable Energy had proposed this incentives program in order to help Indian companies compete with foreign manufacturers.

Chinese officials may be correct in pointing out that any tinkering with the current situation may force project developers to starting increasing their bids in competitive auctions. Apart from Chinese imports, the latest investigation will also cover imports from Taiwan and Malaysia.

July 30, 2017 0 comment

India Auctions 500 Megawatts Rooftop Solar Capacity With Lowest Bid At 3.4¢/kWh

written by saurabh

India has auctioned the largest capacity of rooftop solar power projects in history and the results are extremely promising and could provide a much-needed boost to the rooftop solar power market.

The Solar Energy Corporation of India (SECI) recently announced that it auctioned just over 503 megawatts of rooftop solar power projects across 35 states and union territories of the country. The auction was the first phase of 1 gigawatts rooftop solar power program announced by SECI; under the program rooftop solar power systems will be implemented atop government buildings across the country.

As per the data released by SECI, 50.2 megawatts was auctioned under the CAPEX model in 32 states. Under the model, the project owner and developer will contribute towards the project implementation through a mix of equity and debt funding and electricity will be sold at a tariff specified by the central or state regulators.

Bids under the CAPEX model were in the form of lowest capital cost needed to set up the systems. The maximum bid allowed was Rs 75,000/kW ($1,166/kW). The highest bid was recorded as Rs 65,000/kW ($1,010/kW).

Just over 453 megawatts capacity was awarded under the RESCO model where the developers will be required to bear the entire project cost upfront. The electricity will be sold at the tariff quoted by the developer during auction. Once the project breaks even all revenue from the sale of electricity will actually be developer’s profit.

The lowest tariff bids received under the RESCO model was Rs 2.20/kWh (3.4¢/kWh) for 11.2 megawatt capacity in the Andaman & Nicobar Islands. The highest bid was placed for 9.6 megawatts capacity in the state of Bihar at a tariff of Rs 4.59/kWh (7.1¢/kWh).

Some of the leading names in the Indian solar power market that participated in the auction include ReNew Solar Power, Mytrah Energy and Azure Power.

Under the both the models, project developers would also receive financial incentives depending on the time taken to commission the projects and their location; incentives will vary from $116/kW to $700/kW.

July 30, 2017 0 comment

India Opens Anti-Dumping Investigations On Imported Solar Modules

written by saurabh

As India and China face-off at the troubled international boundary around Tibet, India has opened anti-dumping investigations against Chinese solar module imports. Along with Chinese modules, those imported from Taiwan and Malaysia will also be covered under this investigation.

The Directorate General of Anti-Dumping and Allied Duties, under the Indian Ministry of Commerce and Industry, announced that it shall undertake anti-dumping investigations into solar modules imported from three countries – China, Taiwan and Malaysia. The investigation shall look at the period between 1 April 2016 and 31 March 2017 however, data for three previous years shall also be looked at.

The petition to initiate investigation was submitted by the Indian Solar Manufacturers Association, on behalf of four module manufacturers – Indosolar, Websol Energy Systems, Jupiter Solar Power and Jupiter International.

Indian solar module manufacturers have reported very poor financial health and utilisation of production facilities despite the rapid increase in India’s solar power market. While the government increased the installed capacity target from 22 gigawatts to 100 gigawatts by 2022 the Indian manufacturers have completely failed to garner any significant share in the market. These manufacturers seem to have filed this petition as no other relief from the government was coming through.

Indian business daily Economic Times has reported that the Ministry of Finance has refused to approve a Rs 20,000 crore ($3.1 billion) relief package for the solar cell and module manufacturers. The Ministry of New & Renewable Energy had proposed this incentives program in order to help Indian companies compete with foreign manufacturers.

Chinese modules, whose prices have collapsed sharply over the last several months, continue to dominate the Indian market.

According to Mercom Capital, project developers imported solar modules worth US$763 million between April and August 2016, an increase of 53% from imports worth US$497 million during the same period last year. Share of modules from China also increased sharply. Chinese modules accounted for 85% of the total modules imported in India, followed by Malaysia at distant 9%; modules from Taiwan, the US and Singapore accounted for 3% to 1% each.

In financial year 2014-15 (April 2014 to March 2015), India imported 161.5 million with 70% of them coming from China. During the preceding financial year, the share of Chinese modules in total imports was 65%.

This is the second time that such anti-dumping investigations have been initiated by India. In 2013, the Ministry of Commerce and Industry had proposed to levy duties ranging from $0.11 to $0.81 per watt on modules imported from the US, China, Malaysia and Chinese Taipei. However, this recommendation did not find favour with other ministries, including the Ministry of New & Renewable Energy. The proposal was thus rejected by the Ministry of Finance.

Levying an anti-dumping duty on Chinese modules now could suck the steam out of India’s rapidly growing solar power market. Tariff bids have collapsed to new record lows and to sustain these tariffs, and keep solar power an attractive alternative to thermal power, cheaper solar modules are essential.

July 25, 2017 0 comment

French Energy Major Engie joins Buyout Queue For Equis Energy India Assets

written by saurabh

Indian media outlets have reported new development on the market buzz that Equis Energy, a renewable energy IPP in India, is looking to sell its assets.

Business daily Mint has reported that French utility Engie may be looking to acquire the Indian assets from Equis Energy. Equis Energy operates its India assets through two companies – Energon and Energon Soleq. Energon has operational assets of 414 megawatts while Energon Soleq has operational and under-construction assets of 560 megawatts. Equis Energy recently entered a new agreement with the government of Haryana which will enable the company’s expansion into markets other than utility-scale solar market.

Equis … signed an agreement with the government of Haryana to set up canal-top solar power projects. Under the agreement, Equis would invest $150 million to develop an undisclosed number or capacity of canal-top solar power projects.

In June, another company – Hero Future Energies – was reported to be in talks with Equis Energy to acquire these assets. No new development has been reported in this regard since.

Engie, through its subsidiary Solairedirect, is a major participant in the rapidly growing India solar power market. So acquisition of Energon Soleq could prove to be a logical expansion of Solairedirect’s portfolio as the latter missed out on several power projects in competitive auctions.

Solairedirect has grand plans in India.

Chief executive officer at Engie Isabelle Kocher recently stated that the company is looking to secure at 400 megawatts solar power capacity every year with a planned investment of $1 billion over the next five years in India.

Solairedirect has been very competitive in reverse auctions across India.

In January 2016, the company nearly tied for the lowest solar power tariff in India at that time. The company secured rights to develop 140 megawatts at the Bhadla solar power park in the state of Rajasthan; it placed a winning bid of Rs 4.35/kWh (6.7¢/kWh).

Solairedirect won rights to develop a 250-megawatt solar power project in the Kadapa solar power park being developed in the state of Andhra Pradesh. The company placed a winning bid of Rs 3.15/kWh (4.8¢/kWh), 4.5% lower than the previous record of Rs 3.30/kWh (5.1¢/kWh) levelized tariff set in February 2017.

Image by vectoropenstock.com for Cleantechies

July 24, 2017 0 comment

Warburg Pincus To Invest $100 Million In Indian Rooftop Solar Developer CleanMax

written by saurabh

In a major, and much-needed, boost for the Indian rooftop solar power market, a US-based private equity firm will invest $100 million in one of the leading rooftop solar developers in India.

CleanMax Solar recently announced that it will receive $100 million in investment from the private equity firm Warburg Pincus. These funds will be used by CleanMax to further expand its presence in the Indian solar power market and explore expansion opportunities in select international markets.

Investment by Warburg Pincus in the rooftop solar power market in India possibly indicates where the investor comfort lies. Utility-scale solar power market in India is extremely competitive. Earlier this year we saw tariff bids falling by 26% in large-scale solar power auctions held between February and May. Margins are really tight in the utility-scale business due to low tariffs and are highly dependent on availability of low-cost debt and support from regulatory bodies.

Rooftop solar power market, on the other hand, is yet to take off. There are several options available with the project developers, including competitive auctions. Developers can directly approach industries and commercial establishments to set up rooftop solar power systems to replace grid supply. With the fall in solar module prices several private sector institutions and organisations have opted to switch to rooftop solar replacing a part of their grid import.

Similarly, the Opex or Resco model is also available to the rooftop project developers which offers significant potential for profits. This is the model used for setting up rooftop solar power systems at Chennai Metro, an urban rail system.

Opex or Resco model wherein Chennai Metro will not have to make any upfront investment. CleanMax Solar shall make the entire capital investment to set up the power systems. CleanMax and Chennai Metro would enter a long-term power purchase agreement.

After recovering the capital investment in a few years, revenue from the sale of electricity to Chennai Metro will be profit for CleanMax Solar. Chennai Metro, too, expects to save around Rs 1.5 crore (over $230,000) every year, and Rs 37.5 crore ($5.8 million) over a 25-year period.

This investment by Warburg Pincus is a major milestone in India’s rooftop solar power market. This could hopefully spur additional investment in the sector helping India increase the rooftop solar power capacity to 40 gigawatts by March 2022, as has been targeted by the government.

July 22, 2017 0 comment

Rising Price Of Chinese Modules Could Jeopardise New Solar Plants In India

written by saurabh

As top executives of some of the leading Indian and international project developers slugged it out for more than 24 hours at a stretch in the May earlier this year to outbid one another in some the fiercest of competitive solar auctions in India to date, the winners would have hoped that they have overcome one of the biggest challenges. Now, it seems the winners could face another uphill task of keeping the project costs in check.

According to media reports, price of Chinese modules have increased by more than 47% from the price project developers of India’s cheapest solar power projects had assumed during the competitive auctions in May. According to business daily Mint, project developers bidding for 750 megawatts capacity at Bhadla solar power park had assumed cost of modules at 23¢ per watt. these prices have now increased to 34¢ per watt for delivery scheduled in August.

An increase of 47% in the cost of a component that comprises of a big majority of the project cost of a solar PV power plant is a matter of deep concern for a developer, to put it mildly! The concerns become a huge problem and challenge when the developer has quoted a tariff as low as Rs 2.44/kWh (3.8¢/kWh), the lowest-ever in India.

The rapid decline in solar power tariff bids in India has been fuelled, in a large part, due to the falling prices of Chinese modules which hold an overwhelming share in the Indian market.

Since February 2017 this year four major solar power auctions have taken place in India with the lowest tariff bids falling by as much as 26% between the first and the latest auction.

Over the years, dependence on Chinese imports has increased significantly.

According to Mercom Capital, project developers imported solar modules worth US$763 million between April and August 2016, an increase of 53% from imports worth US$497 million during the same period last year. Share of modules from China also increased sharply. Chinese modules accounted for 85% of the total modules imported in India, followed by Malaysia at distant 9%; modules from Taiwan, the US and Singapore accounted for 3% to 1% each.

In financial year 2014-15 (April 2014 to March 2015), India imported 161.5 million with 70% of them coming from China. During the preceding financial year, the share of Chinese modules in total imports was 65%.

July 22, 2017 0 comment

World’s First Solar-powered Train Launched In India

written by saurabh

The Indian Railways, world’s fourth largest railway network, recently took a massive step towards sustainable energy as it launched the world’s first-ever solar powered train.

A short distance inter-city train was launched in India’s capital recently which had 4.8 kilowatts of solar modules installed atop six coaches. The train is the first in the world to be powered by solar power. The train is also equipped with a battery backup which can power it for 72 hours.

The six coaches are equipped with 16 panels of 300 watts (peak) capacity each. These panels are used for powering fans and lighting systems inside the coaches. The initiative will soon be extended to other short-distance inter-city trains and eventually expanded to long-distance trains as well. Once fully implemented the program will result in significant savings for the Indian Railways.

The CEO of Indian Railways Organisation for Alternative Fuel told media outlets that the total monetary savings for this entire project is expected to be around Rs 700 crore ($108 million). Each such trains will reduce consumption of diesel by more than half a million litres over a 25 year period. Around 1,350 tonnes of carbon dioxide emissions will also be offset by each solar-powered train during the same time period.

Last month, the Indian Railways launched a tender for installation of solar panels and battery backup systems for 250 trains.

Companies selected through the tender process will be required to install flexible solar panels and battery systems on six trains on experimental basis. These trains will be put into commercial operations and performance of the panels and batteries would be tested for a period of two months before a decision on large-scale implementation is taken.

The Indian Railways is working on several initiatives to enhance sustainability in its operations. It is planning to set up bio-diesel refineries to blend 5% biodiesel in its diesel locomotives. It is also exploring using of Compressed Natural Gas to replace at least 20% of diesel consumption.

A highly ambitious project to cover almost every railway station in the country with rooftop solar panels has also been undertaken. Around 7,000 railway stations will be installed with rooftop solar power systems with a cumulative capacity of 1,000 megawatts.

A study by the Council on Energy, Environment and Water stated that Indian Railways has the potential to source 25% of its electricity needs from renewable energy sources by 2025. According to the study, Indian Railways can set up 3.9 gigawatts of utility-scale and 1.1 gigawatts of rooftop solar power systems to meet 25% of its electricity demand.

July 21, 2017 0 comment

Indian Lawmakers Propose Tariff Reduction For Operational Solar Projects

written by saurabh

Lawmakers of Indian state of Tamil Nadu recently revealed that they are negotiating with at least one solar project developer to reduce tariff. This could trigger a bad precedent across India as bids for new solar projects continue to decline rapidly.

The project in question in Tamil Nadu is no ordinary solar project. The government of Tamil Nadu is looking to get Adani Green Energy reduce tariff of its 648 megawatt project – the largest in India.

The Adani project, commissioned last year, gets paid Rs 7.01 (11¢) for every unit of electricity it feeds into the grid. That’s a massive premium to the current lowest tariff bid in the country, nearly three times as much.

Tamil Nadu recently issued a tender for 1.5 gigawatts solar power capacity and set a maximum tariff at Rs 4.00/kWh (6.2¢/kWh). It is clear that the government wants to check any ‘unjust’ profits that the developers may be getting due to advancements in technology and the share decline in module prices over the last several months.

A similar attempt was made in 2015 in the state of Gujarat. The projects in question at that time were among the first utility-scale solar power projects in India which predate even the National Solar Mission. The very first projects commissioned in Gujarat are still getting tariffs as high as Rs 12/kWh (19¢).

Power utilities in Gujarat approached the regulators to reduce tariffs of these operational projects but did not find any success. The matter was dragged into a court which ruled in favour of the developers.

Any retrospective reduction in tariffs will also send the wrong message to project developers which could put brakes on India’s march to become one of the largest solar power markets in the world. Any doubt in the developers’ mind could make them ask for new PPA templates which could elongate the regulatory procedures and delay project execution.

Screengrab from NatGeo documentary on Adani Energy solar power plant

July 12, 2017 0 comment

Indian State Of Uttar Pradesh Proposes 10.7 Gigawatts Solar Power Target For 2022

written by saurabh

The Indian state of Uttar Pradesh has proposed what could be the largest solar power target in the country as it lays out plans to achieve the mandated solar power consumption target.

The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) recently released a draft policy that calls for installed solar power capacity target of 10.7 gigawatts by 2022. The target includes 4.3 gigawatts of rooftop capacity as well. The new policy puts Uttar Pradesh on track to meet the 8% solar power consumption target mandated by the central government for all states.

The new draft policy has some major differences when compared with the previous solar power policy. The previous policy had a meagre target of 500 megawatts installed by March 2017. The state has failed miserably in achievement of this target. The state is reported to have just 102 megawatts of operational solar power capacity by the end of March 2017. No solar power parks were proposed either.

The UPNEDA now proposes to take the tried and successfully tested way of large-scale solar power parks. The Agency shall set up a joint venture company with the Solar Energy Corporation of India to oversee implementation of several large-scale solar power parks across the state over barren and wasteland. The minimum installed capacity of such parks will be 100 megawatts. Power utilities in Uttar Pradesh will procure at least 50% of the electricity generated from these solar parks while they balance could be exported to other states.

The large-scale solar park programme of the draft policy could be a game changer for the state of Uttar Pradesh. The state borders with Haryana, Delhi and Uttarakhand while Punjab and Himachal Pradesh are also nearby. All of these states will struggle to meet the 8% solar consumption target as they either lack waste, barren land to set up large-scale solar projects or have low solar radiation or the mountainous terrain makes it difficult for setting up new transmission lines to connect new solar projects to the existing grid.

Uttar Pradesh can easily export any surplus solar power that it may generate to these states. Or these states could urge the Uttar Pradesh government to expand the solar parks to accommodate additional capacity for them; something that Uttar Pradesh itself is planning to do.

June 30, 2017 0 comment

As Tariff Bids Crash, Indian States Look To Renegotiate Tariff For Operational Solar Projects

written by saurabh

The trend of retrospective reduction in solar power tariffs seen in Europe few years back has now propped up in India.

The project in question in Tamil Nadu is no ordinary solar people. The government of Tamil Nadu is looking to get Adani Green Energy reduce tariff of its 648 megawatt project – the largest in India.

The Adani project, commissioned last year, gets paid Rs 7.01 (11.00¢) for every unit of electricity it feeds into the grid. That’s a massive premium to the current lowest tariff bid in the country, nearly three times as much.

Tamil Nadu recently issued a tender for 1.5 gigawatts solar power capacity and set a maximum tariff at Rs 4.00/kWh. It is clear that the government wants to check any ‘unjust’ profits that the developers may be getting due to advancements in technology and the share decline in module prices over the last several months.

Power utilties in Gujarat approached the regulators to reduce tariffs of these operational projects but did not find any success. The matter was dragged into a court which ruled in favor of the developers.

June 26, 2017 0 comment

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