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Renewable Energy

Steel Giant ArcelorMittal Seeks Approval For 600 Megawatt Solar Power Plant In India

written by saurabh

World’s largest steel manufacturer ArcelorMittal has sought approval for setting up one of the largest solar power projects developed by a single company in India.

According to media reports quoting the company’s annual report, ArcelorMittal has sought approvals from the state government of Karnataka (India) to set up 600 megawatts solar power project. The project will come up at the site earlier earmarked for a steel manufacturing unit of the company.

The company first indicated its plans to replace the planned steel mill with a large-scale solar power project in 2016 when the price of international commodities had collapsed and steel demand had dwindled.

At around the same time, the Indian government came out in full support of the renewable energy sector, particularly the solar power sector. The government announced plans to have 100 gigawatts of operational solar power capacity by 2022, including 20 gigawatts from large-scale projects (which was later doubled to 40 gigawatts).

The conducive regulatory, policy and monetary support (reduced interest rates) attracted several companies towards the solar power market. An Indian power generation company, RattanIndia Power, announced plans to replace a planned coal-fired power plant with a 200 MW solar power project. The company dropped plans for the coal-based power plant after it failed to receive assurance of domestic coal supply.

At present, the largest solar power project developed by a single company in India is 650 megawatts operated by Adani Green Energy in the state of Tamil Nadu.

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03/05/2017 0 comment

Renewable Energy

Malaysia To Auction 460 Megawatts Solar Power Projects

written by saurabh

Malaysia will soon auction perhaps its largest chunk of solar power capacity in one go as the government looks to take advantage of the increasing activity in the country’s solar power sector.

The Energy Commission of Malaysia has called for bids from prospective project developers for 460 megawatts of solar power capacity. A large majority of this capacity (360 megawatts) will be located in Peninsular Malaysia while 100 megawatts capacity will come up in Sabah and Labuan regions.

Capacity of each project will be in the range of 1 to 30 megawatts and will be connected to the grid. Power generated from these projects will be sold to the utilities Tenaga Nasional Berhad (TNB) or Sabah Electricity Sdn. Bhd. (SESB).

Over the last few years Malaysia has seen several major activities in the solar power sector. In 2015, JinkoSolar announced that it will set up 500 MW of solar PV module and 450 MW cell manufacturing unit in Penang, Malaysia at an estimated cost of $100 million. Hanwha Q Cells also shifted its production base from Germany to Malaysia.

Malaysia’s Sustainable Energy Development Authority (SEDA) has set long-term targets which would see 24% of all the electricity generated in the country from renewable energy sources by 2050.

The last date to submit bids is 1 August 2017.

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03/05/2017 0 comment

Renewable Energy

Eskom May End Anti-renewable Energy Stance Soon

written by saurabh

South Africa’s power utility is expected to end its alleged opposition towards procurement of renewable energy from some projects under the country’s auction programme, the energy minister has indicated.

Tina Joemat-Pettersson recently stated that the impasse between Eskom and renewable energy generators has been broken. This could mean that the utility may soon fulfil its promise to procure all electricity generated from projects already auction.

In August last year, Eskom had refused to sign PPA with a concentrated solar power project backed by SolarReserve with capacity of 100 megawatts. The project has a tariff of 12.40/kWh and the agreement was supposed to be signed for a duration of 20 years.

Eskom openly stated that it will no longer sign PPAs with any renewable energy projects. The utility stated that there was excess renewable energy going into the grid which has also increased the cost of power.

Eskom has expressed difficulty in absorption of the rapidly increasing renewable energy capacity in the country due to transmission capacity constraints. The utility recently secured funding to strengthen power grid. The African Development Bank (AfDB) announced a $1.34 billion loan to South African utility Eskom for the expansion and strengthening of its transmission network.

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03/05/2017 0 comment

Renewable Energy

Canada To Build Another 1,000 Megawatts Solar In Pakistan

written by saurabh

Pakistan got a much needed boost for its power sector when, recently, a Canadian government entity announced plans to set up large-scale solar power projects in the south Asian country.

The Canadian Commercial Corporation signed a memorandum of understanding with the government of Khyber Pakhtunkhwa province of Pakistan to set up 1,000 megawatts of solar power capacity. The capacity is expected to be installed over a period of three years but size and location within the province has not yet been disclosed.

Second such agreement with Canada

This is possibly the second such agreement signed by the Canadian government to set up solar power projects in Pakistan. Last year, Canada signed an agreement with the government of Balochistan province to set up 1,000 megawatts solar power capacity. As per the agreement, a Canadian company will set up 20 solar power projects of 50 MW capacity each. The projects are expected to be distributed across the province.

Pakistan: A suitable market for solar

Pakistan is the perfect location for setting up solar power projects. The company has vast swaths of land to host large-scale solar power projects. The power demand-supply situation in Pakistan has been poor for several years and the country has been marred with frequent and long power outages. The power sector is overwhelmingly dependent on furnace oil and hydro projects for power generation; the former is costly while the latter is highly dependent on rainfall.

Pakistan currently faces a shortfall of around 6,000 megawatts. It has been forced to import electricity from neighbouring Iran. The volume of import from Iran stands at 100 megawatts but Pakistan plans to increase it to 3,000 megawatts.

Attractive tariffs for developers

A number of foreign project developers are looking to invest in Pakistan due to the attractive feed-in tariffs offered by the government. The country is yet to shift to competitive auctions, like many developing countries have.

In late 2015, Pakistan’s National Electric Power Regulatory Authority (NEPRA) announced a 25% reduction in solar feed-in tariffs. Even at these reduced tariffs the developers of these projects are expected to get around 11.0/kWh. In neighbouring India, however, tariff discovered through competitive auction have fallen to 6.5¢/kWh, and more recently to 4.9¢/kWh.

02/25/2017 0 comment

Renewable Energy

1 GW Auction Yields India’s Cheapest Wind Power At 5.2¢/kWh

written by saurabh

Four developers secured rights to develop a cumulative of 1,000 megawatts in first-ever wind energy auction held in India.

According to media reports, the four project developers were allocated 250 megawatts capacity each at a tariff of Rs 3.46/kWh (5.2¢/kWh) in the auction organised by the Solar Energy Corporation of India. Mytrah Energy, Green Infra, Inox Wind and Ostro Energy were the successful bidders.

Mytrah Energy and Green Infra are expected to set up projects in the state of Tamil Nadu while Inox Wind and Ostro Energy would likely set up projects in the state of Gujarat. The companies shall sell electricity generated to Power Trading Corporation of India which will in turn sign power sale agreements with interested utilities across the country.

All companies except Inox Wind are project developers while Inox Wind is a turbine manufacturer. Another project developer Adani Enterprises also placed a bid of Rs 3.46/kWh (5.2¢/kWh) but could not get any capacity allocation.

The tariff discovered in the auction is lower than feed-in tariff offered by any state. The lowest tariff offered is Rs 4.16/kWh (6.2¢/kWh) in Tamil Nadu, although Rs 3.82/kWh (5.7¢/kWh) is also offered in the state of Maharashtra at sites with low wind speeds.

Apart from Inox Wind, another turbine manufacturer participated in the auction. Gamesa India quoted a tariff of Rs 3.68/kWh (5.5¢/kWh) and failed to make the cut. ReNew Power Ventures, one of the leading project developers in India, also failed to grab any capacity as it quote a tariff of Rs 3.47/kWh.

Wind follows solar’s trend

The sharp correction in the price of wind power comes just days after India saw its lowest ever solar power tariff in an auction of 750 megawatts capacity. Solar power tariffs in the auction for Rewa solar power park collapsed from previous low of Rs 4.34/kWh (6.5¢/kWh) to Rs 2.97/kWh (4.5¢/kWh) although the levellised tariff for 25 years period will be Rs 3.30/kWh (4.9¢/kWh).

Indian bids in-line with global trends

The tariff bids seen in India’s first-ever auction are in-line with those prevalent in other markets. According to the International Renewable Energy Agency (IRENA), tariff bids for wind energy projects have converged around 4.0¢/kWh. Auctions held in Mexico, Egypt, Chile and Morocco were around the 4.0¢/kWh mark. Interestingly, tariff bids in developed countries – United Kingdom, Italy, Australia and Canada – were above 6.0¢/kWh.

02/25/2017 0 comment

Renewable Energy

Schneider Claims 20% Share In India’s Solar Power Market

written by saurabh

Schneider Electric India is looking to increase its footprint in the rapidly expanding Indian solar power market.

The company recently announced that it aims to increase its share in the Indian solar power market to 25% in the near-term. Schneider Electric supplies inverters, transformers and other medium-voltage equipment that enable evacuation of power generated from solar power projects.

“We are on the verge of contributing 25 percent of the total installed solar capacity in India. Our share as well as contribution to India’s solar sector is only going to increase given the rapid growth witnessed by the sector on the back of the 100 GW target to be achieved by 2022,” Anurag Garg, vice president, solar business, Schneider Electric India.

India has an installed capacity of 10,000 megawatts solar power projects. Schneider claims that it has supplied equipment for 2,000 megawatts of projects, giving it an impressive share of 20%. By March 2017, the company is expected to supply an additional 500 megawatts of equipment.

Schneider’s equipment have been installed almost all the states that lead solar power generation in India. The company manufactures these equipment at four different facilities in the country.

Several companies have managed to reap fruits of the rapid expansion in the Indian solar power market over the last few years. One of Schneider’s competitors (at least in the inverter segment), SMA Solar, commands 26% share in the market. SMA Solar shipped 1,000 megawatts of inverters to solar power projects in 2016, with a total of 4,000 megawatts of solar power projects added in the country.

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02/22/2017 0 comment

Renewable Energy

Tata Power Solar Becomes First Indian Company To Ship 1 Gigawatts Solar Modules

written by saurabh

Tata Power Solar, part of one of the most reputed industrial conglomerates, has achieved a significant milestone that no other Indian solar modules manufacturer had achieved.

Tata Power Solar recently announced that it became the first Indian manufacturer to have shipped out 1 gigawatts of solar power modules. The company has seen rapid expansion and growth in production as well as exports over the last few years.

Found in 1989 as Tata BP Solar, the company set up it first manufacturing unit in 1991 with a minuscule capacity of 3 megawatts. In 2000, the company achieved Rs 100 crore in sales and also became the first company to upgrade cell manufacturing with plasma-enhanced vapour deposition system. In 2001, the company achieved Rs 100 crore sales from exports which increased to Rs 300 crore in 2004.

Tata BP Solar increased solar cell manufacturing capacity to 52 megawatts in 2007 and to 84 megawatts in 2009. In 2011, Tata Power Solar became a subsidiary of the Tata Group, following the exit of BP from the joint venture.

After that, the company expanded its operations as well as EPC services rapidly to match the expansion in the Indian solar power market. In 2012, the company increased its module manufacturing capacity to 200 megawatts. It also commissioned the world’s largest rooftop solar power project of 12 megawatts capacity the same year.

Last year, the company commissioned a 100 megawatts solar PV project at NTPC’s Anantapur solar power park. The project is the largest solar power project to use Indian-made solar power modules.

Tata Power Solar remains one of the largest solar cell and module manufacturing companies in India. As on 31 December 2016, the company had solar cell production capacity of 300 megawatts and solar module manufacturing capacity of 400 megawatts.

02/22/2017 0 comment

Renewable Energy

500 Megawatts Solar Tender In India’s Tamil Nadu Undersubscribed Yet Again

written by saurabh

The latest solar power tender issued in the state of Tamil Nadu is in stark contrast to the one issued for the Newa solar power park. The former has, once again, received a poor response from the project developers.

The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) had floated a tender for 500 megawatts solar PV power capacity. The tender received bids by 22 project developers willing to set up 300 megawatts capacity. The poor response is poles apart from the 10 times oversubscription for the 750 megawatts Rewa solar power park.

The poor response it ironically still better than that received for the 500 megawatts tender previously issued by TANGEDCO. In November 2016, the tender attracted 20 bids of just 122 megawatts. The utility had no choice but to scrap the tender. Project developers were unable to purchase land for their projects due to lack of funds owning to the demonetisation drive of the Indian government.

The improved funding situation seems to have been the only reason for the relative increased interest of the developers. Lack of adequate transmission infrastructure and poor financial health of the utility remain the major concerns of bidders. The threshold tariff for this tender was also reduced by 14.7%, from Rs 5.10/kWh (7.6¢/kWh) to Rs 4.35/kWh (6.5¢/kWh), although developers have 12 months to commission the projects, an increase from 10 months.

According to government estimates, an installed capacity base of 2.5 GW will be required to meet the 5% solar RPO target in 2017-18. TANGEDCO, however, expects that only 1.6 GW solar power capacity would be operational by that time, thus leaving a shortfall of 900 MW.

02/22/2017 0 comment

Renewable Energy

MENA Region Has More Than 5.7 Gigawatts Solar In Pipeline

written by saurabh

Middle East and North Africa remains hotbed of solar power development with more than 5,700 megawatts of capacity under development.

The Middle East Solar Industry Association (MESIA) recently reported that eight countries in the region have more than 4,050 megawatts of solar photovoltaic power capacity under development. Adding concentration solar power capacity increases the pipeline to 5,700 megawatts.

MESIA notes that 885 megawatts capacity is currently operational across the region. 3,618 megawatts capacity is under construction. Projects being executed in Morocco, Egypt and United Arab Emirates (UAE) likely contribute the most in this segment.

Morocco has several solar power projects operational at its Noor-Ouarzazate complex. In the UAE, 100 megawatts Shams-1 CSP project is operational and remains the largest project in the country. Construction on 200 megawatts solar PV capacity at Mohammed bin Rashid Al Maktoum Solar Park is at full swing while construction on another 800 megawatts at the same park is expected to begin soon. A 350 megawatts solar PV project was awarded in Abu Dhabi; the project will be expanded to 1,200 megawatts in the near future.

Construction of 1,800 megawatts solar PV capacity is underway at Aswan, Egypt. Agreements by several foreign companies have been signed already.

Jordan is seeing increased activity in the solar power market with several projects under construction. The government there is planning to launch more tenders soon.

Smaller countries like Oman and Kuwait are also planning large-scale solar power projects.

The new entrant in the region’s solar power market will be Saudi Arabia. The country has announced plans to issue tender for 300 megawatts of solar power capacity soon.

02/21/2017 0 comment

Renewable Energy

Suzlon Energy Now Controls 10 Gigawatts Of Wind Energy Capacity In India

written by saurabh

Perhaps the largest renewable energy company in India has announced achievement of a huge milestone.

Suzlon Energy, an integrated wind energy solutions provider, last month announced that it now controls 20 gigawatts of operational wind energy capacity in India.

This capacity gives Suzlon an overall share of 35% in India’s total wind energy capacity and 22% of India’s renewable energy capacity.

Suzlon Energy services and operates several of these projects on behalf of its customers that give the company a free hand in managing the projects from site identification to commissioning and operations.

The 10,000 megawatts capacity is installed in the form of more than 7,500 wind turbines. The capacity, Suzlon claims, is sufficient to power more than 5 million households and offset around 21.5 million tonnes of carbon dioxide emissions every year.

Once the leading original equipment manufacturer in the Indian wind energy market, Suzlon progressively lost market share to Gamesa. The Spanish turbine manufacturer has been the leading OEM in India for the last three years now.

In June last year, Suzlon Energy Chairman Tulsi Tanti, while interacting with an Indian media outlet, said that the company plans to increase market share in the Indian wind energy market to 40% this financial year, up from 26% in the previous financial year.

The company seems to be exulting such confidence after it financial position improved significant in the last quarter of previous financial year. The company reported its first profit in three and a half years in the quarter ending March 2016.

Suzlon entered the solar power market winning 210 megawatts capacity in competitive auctions. The company also opened a new blade manufacturing facility in the state of Madhya Pradesh.

02/21/2017 0 comment

Renewable Energy

Marubeni Reveals Plans For 1.18 Gigawatts Solar Power Project In UAE

written by saurabh

A Japanese company has reported that it will work on one of the largest solar power projects in the Middle East.

Marubeni recently announced plans of developing a 1.18 gigawatts solar power project in the United Arab Emirates. According to a press release issued by the Japan-based company, the project will come up in the emirate of Abi Dhabi.

The project will come up in eastern Abu Dhabi over an area of 7.8 square kilometres. Final agreements for the project are expected to be signed very soon with commissioning scheduled for 2019. Marubeni estimates the total project cost at $868 million with various stakeholders contributing towards funding the project.

Abu Dhabi Water & Electricity Authority will arrange for 60% finance through debt (likely at very low interest rates), Marubeni and JinkoSolar will provide for 20% of the funding each.

It should be noted that Abi Dhabi had awarded a 350 megawatts solar PV project to a joint venture of Marubeni and China’s JinkoSolar at record tariff of 2.42¢/kWh last year. The tariff was the lowest-ever quoted for a solar power project globally at that time. The 350 megawatts tender was believed to be the first phase of 1,000 megawatts solar park.

It is not, however, clear if the Abu Dhabi Water & Electricity Authority has offered to entire solar power capacity of the planned solar power park for development to JinkoSolar-Marubeni joint venture. There has been such a precedent in the country.

Dubai Electricity and Water Authority (DEWA) had offered 100 megawatts capacity in the second phase auction of Mohammed bin Rashid Al Maktoum Solar Park. The auction was won by ACWA Power at record-low tariff of 2.99¢/kWh. DEWA subsequently offered additional 100 megawatts to ACWA Power for development at the same tariff. ACWA Power is now developing a total of 200 megawatts capacity at the solar power park.

02/20/2017 0 comment

Renewable Energy

World’s Largest Oil Producer Set To Float 700 Megawatts Renewable Energy Tender

written by saurabh

Over the next few days the world’s largest oil producer and exporter – Saudi Arabia – will float tenders to set up large-scale wind and solar power projects.

On 20 February, Saudi Arabia will call for proposals by prospective project developers to set up 700 megawatts of solar and wind energy projects. The world’s largest oil producing country plans to set up 300 megawatts of solar and 400 megawatts of wind energy capacity through these auctions.

All the projects are expected to be commissioned in the northern part of the country. Energy Minister Khalid Al-Falih expects the bids for these projects to be lowest in the world. Already, the Middle East holds the record for the cheapest solar power project. A consortium of JA Solar and Marubeni won rights to develop 350 megawatts solar PV project in Abu Dhabi at 2.42¢/kWh.

Phase II and III of the Dubai solar power park also saw extremely competitive bidding leading to record-low prices. Interestingly, phase II (200 megawatts) project was awarded to a consortium led by Saudi Arabia-based ACWA Power.

Saudi Arabia has announced plans to set up 9.5 gigawatts of renewable energy capacity by 2023 and a long-term investment of around $30-50 billion in the renewable energy sector.

Results of the auction for these projects is expected to be announced on 17 April.

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02/16/2017 0 comment

Renewable Energy

Enel Green Power Reports 124% Jump In Renewable Energy Capacity Addition In 2016

written by saurabh

Enel’s Global Renewable Energies Division reported a record-breaking jump in capacity addition last year.

Enel Green Power reported that it added 2,018 megawatts of renewable energy capacity last year, a 124% increase from around 900 megawatts capacity added in 2015. Quite understandably, a good majority of the new capacity was added in developing markets, like Brazil, Mexico, Chile and South Africa.

“This record confirms once again the incredible efforts made by the entire Enel Green Power team,” said Francesco Venturini, Head of Enel’s Global Renewable Energies Division. “It’s a team result that makes us extremely proud. The credit goes to everyone who worked selflessly and steadfastly to attain this success.”

Solar and wind energy technologies dominated the capacity addition last year at Enel Green Power.

In Chile the company, through a subsidiary, added 542 megawatts of solar and wind energy projects. This includes 160 megawatts Finis Terrae solar PV park and 97 megawatts Carrera Pinto solar power project.

In Brazil, the company commissioned 102 MW Apiacás hydropower park in the state of Mato Grosso. The company has lined up several large-scale solar power projects in the country to be commissioned this year. These include a 254 megawatts and a 292 megawatts solar power project; the latter will be the largest solar power project in South America and also the largest solar power project owned by Enel when commissioned.

Additionally, Enel Green Power Peru is also working on a 160 megawatts solar power project which is expected to be commissioned this year.

Wind energy projects with cumulative capacity of 229 megawatts were commissioned in Mexico by Enel Green Power. The company added 470 megawatts of renewable energy capacity, second only to the United States. Enel Green Power RSA commissioned multiple solar and wind energy projects under the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP).

The company added 573 megawatts of renewable energy capacity in the United States. This includes 200 megawatts wind energy capacity at Cimarron Bend wind farm. The wind farm will eventually have an installed capacity of 400 megawatts making it Enel’s largest wind energy project globally.

02/13/2017 0 comment

Renewable Energy

Enel Commissions 165 Megawatt Solar Power Capacity In South Africa

written by saurabh

Expanding its footprint in South Africa’s renewable energy market, Enel Green Power recently announced the commissioning of two solar power projects.

The Italian renewable energy giant stated that its subsidiary Enel Green Power RSA commissioned two solar photovoltaic power projects under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). Both the projects have an installed capacity of 82.5 megawatts and were secured by the company in the third phase of competitive auctions under REIPPPP.

The projects, located in Northern Cape and Free State provinces, with together generate 318 GWh per year, equivalent to the annual consumption needs of around 100,000 South African households, while offsetting more than 290,000 tonnes of carbon dioxide emissions each year.

The projects have long-term power purchase agreements with Eskom, the South African utility.

EGP RSA currently owns and operates three other PV plants in South Africa: Paleisheuwel (82.5 MW), which is situated in the Western Cape province, Tom Burke (66 MW) in the Limpopo province and Upington (10 MW), which is located in the Northern Cape province. The company also operates the 88 MW Nojoli wind farm in the Eastern Cape, where it is also building the 111 MW Gibson Bay wind facility.

02/13/2017 0 comment

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