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saurabh

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 Cancels Solar+Storage Auctions Due To High Costs

written by saurabh

India’s first attempt to include battery-based storage with utility-scale solar power projects has failed.

Solar Energy Corporation of India recently announced that it had to cancel two solar+storage auctions. SECI believed that tariff bids for these projects could not have matched the bids for normal utility-scale solar power projects.

SECI had announced two tenders for implementing battery storage with solar power projects – 200 megawatts project at Pavagada solar power park in Karnataka and 100 megawatts project at Kadapa solar power park in Andhra Pradesh.

Project developers were asked to provide 2.5 megawatt-hour for every 50 megawatts capacity installed. Both the tenders involved viability gap funding mode. Participants had to bid for the lowest capital cost support required to set up the projects. SECI was willing to provide a maximum of ₹1 crore per megawatt as support.

In May this year, project developers placed the lowest-ever bid for a utility-scale power project at ₹2.44/kWh. Power utilities would prefer these new projects rather than slightly older ones whose tariffs are higher than thermal power plants. This was perhaps the reason SECI shelved the tenders as higher tariffs would not have found any takers in the market thus jeopardising the projects’ future.

Storage-equipped solar power plants are only a part of the overall strategy of the Indian government to integrate large-scale solar and wind energy projects. To safeguard the existing transmission network a dedicated transmission grid for renewable energy projects is being implemented. Additionally, several states have implemented regulations that require project developers to forecast their power generation to help grid operators schedule power while maintaining supply demand and frequency.

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.

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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 May Withdraw Support For Renewable Energy By 2022

written by saurabh

Indian government’s think tank has proposed in the National Energy Policy to withdraw all incentives available to the renewable energy sector to be withdrawn gradually with none available from 2022.

According to media reports, quoting senior government officials, market forces will be allowed to determine the price and position of renewable energy sources within the Indian power mix after 2022. The government believes that with prices already falling to below conventional energy prices the renewable energy sector would not require any support for long.

India has set a target to have 175 gigawatts operational renewable energy capacity by March 2022, a target that will most certainly be missed by a considerable margin.

Wind and solar power projects currently enjoy policy benefits but no major direct financial benefits, except rooftop solar power projects. Transmission of electricity from wind and solar power projects has been exempted from the levy of inter-state transmission charges.

Additionally, theoretically, wind and solar power project enjoy ‘must run’ status – utilities must procure electricity from solar and wind energy projects even if they have to shut down thermal power projects. This directive from the Ministry of New & Renewable Energy, however, is not always followed as several state utilities have been reported to forced wind and solar power developers to back-down on generation.

Utilities across India are also obligated to procure a set minimum percentage of renewable energy. The government may abolish that requirement as well after 2022. This could prove disastrous for the renewable energy sector as even today an overwhelming majority of utilities fail to meet their renewable energy procurement targets.

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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

This Indian State Plans Taxes, Reduced Tariff For Rooftop Solar Projects

written by saurabh

While the central government and most states in India are looking to promote, even obligate, the use of rooftop solar power projects, one state is looking to reduce tariffs for rooftop solar power systems and even impose tax on revenue generated from sale of the electricity generated.

The power utility of the Indian state of Tamil Nadu has approached the state’s electricity regulators asking it to reduce the tariff offered to rooftop solar power systems for consumers and impose an additional tax on the revenue. According to media reports, Tamil Nadu Generation and Distribution Company (TANGEDCO) has proposed to fix the tariff of electricity generated from rooftop solar power systems at 50% of the lowest tariff offered to utility-scale solar power projects in the state.

Several other conditions have also been proposed by the utility. It proposes that consumers be allowed to install rooftop solar power systems up to only 50% of their contracted demand. Perhaps one of the most shocking proposal is introduction of an additional tax on revenue from the power generated by these systems.

At present, there is no cap on the size of rooftop system that can be installed by a consumer. The electricity generated by the system is subtracted from the electricity consumed from the grid and the consumer pays for the net electricity consumption. By reducing the tariff applicable to electricity generated from rooftop systems, the utility would effectively reduce the generation, thus increasing the power bill for consumers.

The utility plans to fix the tariff of rooftop systems to half of the tariff offered to solar power companies in the states. While the media reports are not clear on the exact figure, the tariff could be lower than Rs 2.00/kWh (3.1¢/kWh) as 1.5 gigawatts capacity was recently auctioned to developers at Rs 3.47/kWh (5.4¢/kWh).

Last month, TANGEDCO received massive response to the tender with project developers willing to set up 2.67 gigawatts capacity against the offered 1.5 gigawatts capacity. The bids submitted by the participating companies varied from Rs 3.47/kWh (5.4¢/kWh) to Rs 4.00/kWh (6.2¢/kWh), the maximum allowed bid.

The main reason behind this move is the poor financial health of the utility. It is know to delay payments to wind and solar power developers despite having long-term power purchase agreements with them. Experts are also baffled by this proposal because TANGEDCO loses 19-25% of the electricity while supplying it to end consumers. Rooftop solar power systems would mean near-zero losses of electricity as the point of generation and consumption is the same.

July 30, 2017 0 comment

Hydro, Solar Bring Down Electricity Prices In El Salvador

written by saurabh

Increased hydro power generation and a newly commissioned solar power project has reduced the overall cost of electricity in El Salvador, the power regulator of the country – Siget recently stated.

Siget recently announced that the electricity tariff for the period 15 July to 15 October 2017 has fallen by 3.09% to $118.9/MWh. The price fall has come as a result of increased hydro power generation and operationalisation of a solar power project.

A 60 megawatt solar power project was commissioned by Neoen, a French independent power producer. The project was secured by the company in a competitive auction and sells electricity at a tariff of $0.1019/kWh which is 18% lower than the electricity tariff for the first quarter of this year. The project was secured in competitive auction held in 2014 and has been commissioned in partnership with a local conglomerate Almaval.

El Salvador has organised several competitive auctions for wind and solar power projects over the last couple of years. Earlier this year, it allocated four solar power projects with 120 megawatts of total capacity at tariffs between 4.955¢/kWh to 6.724¢/kWh. Successful project developers offered 36% to 53% discount compared to the ceiling tariff of 10.53¢/kWh set by the government.

The successful bidders – Tracia Network Corporation, Capella Solar, Sonsonate Energy and Asocio Ecosolar – shall signed power purchase agreements of duration 20 years and will be required to commission the projects in 2019.

Once these projects are commissioned the percentage of renewable energy in the country’s electricity mix will increased substantially. And given their low tariffs, the overall electricity price would also fall sharply.

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July 29, 2017 1 comment

Tata Steel Commissions First Solar Project At An Iron Ore Mine In India

written by saurabh

India’s second largest steel maker Tata Steel recently commissioned the country’s first solar power project at an iron ore mine.

Tata Steel has commissioned a 3 megawatt solar power project at an iron ore mine in the state of Jharkhand. The solar power project, the first at an iron ore mine in India, will help Tata Steel replace a part of the electricity it consumes from the grid or diesel-based generators to power operations at the mine.

The project was commissioned jointly by Tata Steel, Tata Power Solar and Tata Power Trading Company – all part of the Tata industrial conglomerate. Power generated from the project will be purchased by Tata Steel at a fixed tariff. According to the information provided by the company in a press release, the mine currently draws electricity from the grid to carry out operations. In case the grid electricity is unavailable the company shifts to diesel-based power generators.

We have constantly looked at opportunities to exploit renewable energy sources. This is yet another milestone in our quest to become a sustainability driven company, committed to exploring clean energy solutions. Renewable energy is the best way of mitigating the impact of climate change,” said T V Narendran, Managing Director, Tata Steel India.

With the implementation of this solar power project the company will be able to offset at least a part of the fossil fuel-based electricity coming from the grid or being generated using diesel. Apart from the solar power project, the company has also installed several solar-powered lights. The site of the project has enough area to increase the project size to 4.5 megawatts.

Other metal companies in India are also looking to implement renewable energy projects to power their operations. Vedanta-owned Hindustan Zinc, the largest zinc producer in India, is planning to set up 115 megawatts solar power capacity for captive power consumption.

According to company officials, the capacity shall be set up in two phases – 15 megawatts and 100 megawatts. In the first phase, 10 megawatts capacity shall be set up near a smelter facility while a 5 megawatts project will be set up close to a zinc mine.

With the rapid fall in solar module prices it makes financial sense for these large energy-intensive companies to switch to solar power and reduce dependence on costlier grid electricity. Additionally, using solar power will also help them meet their renewable purchase obligation.

July 29, 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

New Record-low Tariff Expected As Indian Wind Energy Tender Is Over-subscribed Three Times

written by saurabh

Solar Energy Corporation of India (SECI) responsible to conduct wind energy auctions in India has seen tremendous response to the latest 1 gigawatt tender.

According to media reports, project developers have placed bids to set up a total of 2,898 megawatts against an offered capacity of 1,000 megawatts. The actual auction will take place soon, following some clarifications from the central regulator. This is the second wind energy auction undertaken in India at the central government level. The first auction took place in February this year.

The tender was oversubscribed with total 13 developers submitted bids equivalent to 2.6 gigawatts in comparison to 1 gigawatts bids called for. Bids were received from major giants including Adani Power, Hero Future Energies, Renew Power and Inox Wind. Most of the developers i.e. 69% bid to set up projects in the state of Tamil Nadu.

The first-ever wind energy auction in India yielded the lowest-ever tariffs of Rs 3.46/kWh (5.2¢/kWh). Four companies – Mytrah Energy, Green Infra (owned by Sembcorp), Inox Wind and Ostro Energy were awarded 250 megawatts capacity each while Adani Green Energy secured rights to develop 50 megawatts capacity. This tariff is significantly lower than the tariffs currently being paid by various power distribution companies across India.

At least four developers that won projects in the first auction – Inox Wind, Green Infra, Mytrah Energy, and Adani Green Energy – have submitted bids to set up 250 megawatt capacity each in the second auction as well. Some of the other major players in the Indian market to have submitted bids include ReNew Power Ventures, Orange Renewable, Continuum Energy and Hero Future Energies. Enel Green Energy is also believed to have submitted a bid.

All but two project developers have reportedly mentioned Tamil Nadu or Gujarat as the host state for the projects.

With such a huge response to the tender experts believe that tariff bids could drop to a new low. With the success of such competitive auctions the state governments, too, have decided to launch their own auctions. Gujarat and Tamil Nadu have launched their respective tenders under the state government’s policy to meet renewable purchase obligation.

With the sharp fall in tariff bids compared to the prevailing feed-in tariffs for wind energy projects, several state governments have refused to sign power purchase agreements with under-construction or soon-to-be-commissioned wind projects.

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.

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July 24, 2017 0 comment

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