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Renewable Energy

India Witnesses Two Solar Power Records In Two Days

written by saurabh

Two marathon competitive auctions for a cumulative solar power capacity of 750 megawatts yielded new all-time low solar tariff bids in India last week.

Indian and foreign developers competed fiercely in two auctions for solar power capacity offered at the Bhadla solar power park in the western state of Rajasthan. Both auctions beat the previous lowest tariff bid of Rs 3.15/kWh (4.9¢/kWh) discovered in a 250 megawatt auction held last month.

The Bhadla solar power park is divided into smaller solar power projects which are being developed by various companies, including India’s largest power generator NTPC Limited. The projects offered in the recent auctions are being developed by IL&FS (500 megawatts) and Adani Enterprises (250 megawatts). Auctions for these companies were carried out by government-owned Solar Energy Corporation of India (SECI). Tenders for these two projects had received an overwhelming response.

The first auction, for 250 megawatts received at least 14 bids in the range of Rs 2.62/kWh (4.1¢/kWh) and Rs 3.59/kWh (5.6¢/kWh). South Africa’s Phelan Energy and India-based Avaada Energy secured 50 megawatts and 100 megawatts at Rs 2.62/kWh while SoftBank-backed SB Cleantech won rights to develop 100 megawatts at Rs 2.63/kWh.

These bids were 9.2% lower than the previous lowest solar power tariff in India discovered in the 250 megawatt auction for Kadapa solar power park. The entire capacity was secured by Solairedirect, a subsidiary of French utility Engie.

Within two days the record of Rs 2.62/kWh was shattered by two companies that secured a total of 500 megawatt capacity. Acme Cleantech Solutions secured 200 megawatts at Rs 2.44/kWh (3.8¢/kWh) while SB Cleantech won rights to develop 300 megawatts at Rs 2.45/kWh (3.8¢/kWh).

Acme Cleantech Solutions had also secured 250 megawatts in the Rewa solar power park auction at a levelised tariff of Rs 3.30/kWh (5.1¢/kWh) with the first year tariff of Rs 2.97/kWh (4.6¢/kWh). SB Cleantech, a joint venture of SoftBank, Foxconn and Bharti Enterprises had emerged as a formidable entity in the Indian solar power market in a span of months. The company recently commissioned one of the largest solar power projects in India.

05/15/2017 0 comment

Renewable Energy

Jamaica Eyes $300 Million In Renewable Energy Investment

written by saurabh

Jamaica is looking to mobilise substantial investment into its renewable energy sector has is recognises the global movement towards a low-carbon economy.

Media reports quoting Jamaica’s Minister of Economic Growth and Job Creation Daryl Vaz stated that the Jamaican government is looking to attract $300 million in renewable energy investment in the near-term. The government is planning to develop frameworks to facilitate renewable energy projects across several sectors of the economy.

These frameworks and projects shall be developed in such a manner that they conform with the financing provisions and guidelines of the Green Climate Fund. If the Jamaican government could receive project funding from the Green Climate Fund it would be a substantial help towards the country’s aim to meet 20% of its energy demand from clean energy sources by 2030.

Jamaica has seen renewable energy growth at a rather slower pace. It has very few large-scale solar power projects and the net-metering policy was implemented not very long ago.

A 20 megawatt solar power project was commissioned by Florida-based WRB Enterprises last year. The project was allocated through a competitive auction involving more than 20 international companies. The project received $62 million funding from Overseas Private Investment Corporation (OPIC) and the U.S. Government’s Development Finance Institution.

Last year, the Ministry for Science, Energy, and Technology had stated that 150 megawatts of renewable energy capacity would be auctioned. The status of this auction remains unknown.

Another solar power project of 33 megawatts was allocated to Eight Rivers Energy. The project will sell electricity at 8.5¢/kWh when it starts operations next year.

05/08/2017 0 comment

Renewable Energy

Pacifico Energy Starts Work On Japan’s Largest Solar Project

written by saurabh

Tokyo-based solar power developer Pacifico Energy has initiated work on the largest solar power project.

Pacifico Energy has started construction at Sakuto solar power project, claimed to be largest in Japan. The project will have 257.7 megawatt (DC) capacity and is expected to be commissioned by September 2019. The company has, however, not announced the project financier and EPC contractor.

Sakuto solar power project, at Okayama, is expected to generate 290 million kWh electricity and offset around 200,000 tonnes of carbon dioxide emissions every year.

This is the second project in two months where Pacifico Energy has started construction. In March the company announced that it is working on a 96.2 megawatt (DC) solar power project at Miyazaki-shi, Miyazaki-ken. The project is being executed by Toyo Engineering and is being funded by 13 different banks led by Bank of Tokyo-Mitsubishi UFJ.

The Sakuto solar power project will the Pacifico’s third project at Okayama. The company already has two projects with combined installed capacity of 74.3 megawatts (DC) operational in the region. Both are supplying electricity to Chugoku Electric Power Company.

Image by vectoropenstock.com for Cleantechies

05/05/2017 0 comment

Renewable Energy

Oman Signs Pact For 1,000 Megawatt Solar Power Project

written by saurabh

Falling oil prices, international obligations to cut emissions and a global shift towards renewable energy technologies seems to have pushed even the oil producing countries to invest heavily in clean energy sources.

A Chinese company recently signed an agreement with the an Oman-based investment firm for the development of a large-scale solar power project in the Middle Eastern country. The project shall be developed in two phases, with the first one having a capacity of 400 megawatts. The first phase will eventually be expanded to 1,000 megawatts capacity.

Ningxia Zhongke Jiaye New Energy and Technology Management Co. signed an agreement with Oman Investment Fund to set up the project at Duqm. Ningxia will hold 51% in the project while the balance will be owned by Oman Investment Fund. Land lease agreement has already been signed for 1,172 hectares.

The project is believed to be the same that was proposed last year and had attracted attention of German investors. These companies are expected to provide technical assistance and support development of the project.

Solar-powered oil production!

Apart from this planned 1 gigawatt solar PV project, Oman will soon host perhaps the largest solar thermal power project in the world. Oil majors Shell and Total have partnered with California-based Glasspoint Solar to set up a 1,021 megawatt solar thermal power project to boost oil production.

Glasspoint Solar manufactures and installs aluminium mirrors near oil fields that concentrate solar radiation on insulated tubes containing water. The steam generated from heating the water is injected into oil fields to recover heavy crude oil or natural gas. The use of renewable energy like solar power makes great economic sense, as the fuel cost associated with this enhanced oil recovery technology is practically zero.

Glasspoint Solar reports that the project is currently under construction.

Oman’s Rural Areas Electricity Company (Raeco) plans to increase the share of renewable energy to 25% of the total power generated within the next 5 years.

05/04/2017 0 comment

Renewable Energy

NEXTracker To Supply Trackers To The Largest Solar Power Project In The Western Hemisphere

written by saurabh

California-based NEXTracker has landed the contract to supply solar trackers to the largest solar power project in the Americas and the western hemisphere.

NEXTracker recently announced that it has already shipped trackers for more than 200 megawatts capacity to a project in Northern Mexico. While the company did not name the project, it is easy to identify the project of this size. A subsidiary of Enel Green Power recently initiated construction of 752 megawatts solar power park.

The Villanueva solar power park will comprise of two projects that Enel secured through competitive auctions – 427 MW1 Villanueva 1 and 327 MW1 Villanueva 3. The solar power park is expected to begin generation in H2 2018. An estimated 1,700 GWh electricity would be generated from the park every year enough to meet power consumption of over 1.3 million households. The projects shall also offset more than 780,000 tonnes of carbon dioxide emissions. Enel Green Power will invest $650 million on these projects.

NEXTracker will support the project by supplying single-axis tracker technology. Over the few months NEXTracker has landed some very large contracts across the world which have enabled the company to expand its portfolio to 8 gigawatts globally.

Adani Green Energy commissioned a 105 megawatts project, one of the largest in north India last year and used NEXTracker equipment. Being one of the fastest growing solar power markets in the world, India will soon host a manufacturing facility of NEXTracker.

The company has already signed agreements with various project developers in India to supply 1 gigawatts of trackers. NEXTracker looks set up expand its presence in India where solar tracker market is expected to increase from 7% in 2016 to 31% in 2021.

05/03/2017 0 comment

Renewable Energy

India Nearly Doubles Solar Power Capacity In FY2016-17, Misses Target By 54%

written by saurabh

India recorded its highest-ever solar power capacity addition in financial year 2016-17 and yet missed out on the targeted capacity addition by a massive 54%.

The Central Electricity Authority (CEA) of India has reported that a record 5,526 megawatts of solar power capacity was added in the country between April 2016 and March 2017. The Ministry of New & Renewable Energy is yet to report the figures on its own website but it has communicated the same to the CEA.

With the record capacity addition took the cumulative solar power capacity in India to 12,289 megawatts as on 31 March 2017, an impressive jump of 82%. Even more the impressive is the pace of capacity addition in March 2017, the last month of the financial year. Between April 2016 and February 2017 a total of 2,804 megawatts capacity was added while 2,722 megawatts capacity was added during March 2017 itself.

The Ministry of New & Renewable Energy had set a target of 12,000 megawatts solar power capacity addition in FY2016-17. Despite the huge shortfall from the target ministry officials were optimistic given the record capacity addition. In FY2015-16, the ministry had set a target to add 1,400 megawatt solar power capacity while 3,019 megawatts capacity was added.

Rating agency ICRA now expects that an estimated 7.5 gigawatt solar power capacity would likely be added in the current financial year. Consultancy firm Mercom Capital Group expects almost 10 gigawatts capacity addition in the calendar year 2017.

04/30/2017 0 comment

Renewable Energy

Hareon Solar To Co-develop 118 Megawatt Solar Project In India

written by saurabh

Chinese solar modules manufacturer Hareon Solar is looking to expand its footprint in one of the fastest growing solar power markets in the world.

Hareon Solar has entered yet another investment deal with one of the largest independent power producers in the solar power sector in India. The Singapore-based investment unit of Hareon Solar has signed an agreement with Azure Power to develop 118 megawatt solar power project in the state of Telangana.

Hareon Solar will also supply solar panels for the project in another deal worth no more than $40 million. The investment arm of the modules manufacturer will pick up 45% stake in the project at $11.1 million.

The investment by Hareon Solar seems sound as the project was secured by Azure Power through a competitive auction organised by India’s largest power producer NTPC Limited. Power generated from the project will be sold to NTPC through a 25-year power purchase agreement, thus securing long-term revenue stream.

Last year, Hareon Solar and ReNew Power Ventures commissioned a 72 megawatt solar power project in Andhra Pradesh. ReNew Power Ventures had secured the project in auction at a tariff of ₹5.98/kWh (9.0¢/kWh). Hareon Solar had supplied solar panels and also acquired equity stake in the project.

04/30/2017 0 comment

Renewable Energy

India Added Twice As Much Renewable Energy As Coal Power Capacity In 2016-17

written by saurabh

India witnessed an extraordinary milestone in its power sector, something one would not expect in a developing country and one which is heavily dependent on coal for power generation.

India added more renewable energy capacity than thermal power capacity in financial year 2016-17, the Central Electricity Authority of India has reported. The renewable energy capacity added during the period April 2016 to March 2017 was nearly twice as much as the thermal power capacity added during the same period.

A total of 6,990 megawatt coal-based power capacity was added in India in FY2016-17 while the thermal power capacity addition during the financial year stood at 7,655 megawatts. In comparison, 14,140 megawatts of renewable energy capacity was added in the same period.

Wind and solar power were the largest contributors among the renewable energy technologies in terms of capacity addition in FY2016-17. A total of 5,413 megawatts of wind energy capacity was added, the highest-ever in India’s history. Solar power capacity addition stood at 5,526 megawatts, also the highest-ever in India.

The share of renewable energy capacity in India’s total installed capacity increased from 14.2% at the end of FY2015-16 to 17.5% at the end of FY2016-17. India targets 40% share of renewable energy technologies in the installed capacity mix by 2030.

This could very well be the first instance when India added more renewable energy capacity than thermal power capacity. However, this would certainly not be the last given the strong pipeline of wind and solar power projects waiting to be commissioned over the next few months.

A record 10 gigawatt of solar power capacity is expected to be added in calendar year 2017 and 6 gigawatts of wind energy capacity is expected to be added in FY2017-18. The thermal power sector in India is already feeling the pinch of increase generation capacity in the renewable energy sector. Last year, the Central Electricity Authority reported that thermal power plants were operating at a plant load factor of just 50% due to the increase power generation from renewable energy projects.

04/30/2017 0 comment

Renewable Energy

South Africa Simplifies EIA Procedures For Renewable Energy Projects

written by saurabh

Renewable energy development seems to be gaining pace once again in South Africa as the government there recently changed certain rules to expedite installation of projects in the eight Renewable Energy Development Zones of the country.

The Ministry of Environmental Affairs in South Africa recently announced changes to the procedures that renewable energy project developers must follow to gain approvals. The Ministry stated that large-scale solar and wind energy project developers will now have to follow a basic assessment procedure instead of all the procedures listed in the Environmental Impact Assessment Regulations, 2014.

The Ministry would allow project developers to provide basic assessment of the impact of project development as it has already completed scoping level pre-assessment of the project sites in the eight Renewable Energy Development Zones (REDZs).

By doing away with the requirement of detailed environmental assessment the Ministry will reduce the timeframe for decision making on each project from a maximum of 300 days to just 57 days.

The eight REDZs were notified by the South African government in February 2016 with an aim to facilitate better utilisation of renewable energy resources and integration of large-scale renewable energy projects into the existing power transmission network.

The move by the Ministry of Environmental Affairs would serve as a great incentive for project developers looking to be part of the forthcoming auctions under the Renewable Energy Independent Power Producer Procurement Program (REIPPPP).

Through this initiative the government has also thrown long-term support behind development of renewable energy market in the country. Last year, Eskom, the South African utility responsible to procure electricity from all renewable energy projects, had expressed inability to service power purchase agreements signed with several projects allocated under REIPPPP.

04/30/2017 0 comment

Renewable Energy

Philippines Approves 30 Megawatts Solar-Storage Project To Assess Grid Impact

written by saurabh

More developing markets are now considering storage solutions for better and efficient integration of solar power projects into the existing grid.

The Department of Energy in Philippines recently approved four large-scale solar power projects to assess the impact of their integration into the existing transmission network. These projects include two of 70 megawatts capacity each, one of 22 megawatts and another of 30 megawatts with battery storage.

The two projects of 70 megawatts capacity each will be developed by Pilipinas Newton Energy and Pilipinas Einstein Energy in San Manuel in the province of Pangasinan. C-Solar Power will develop 22 megawatt project in Tarlac. Battery-based solar power project with capacity of 30 megawatts will be developed by Silay Global Energy Solutions in Negros Occidental.

These projects are expected to play an important role developing a roadmap for large-scale integration of not only solar power but projects based on other renewable energy technologies as well. Absorption of renewable energy technologies into existing transmission grid remains a major challenge across all developing markets, be it India, Chile or China.

In March, the Department of Energy also approved a 150 megawatts solar power projects equipped with storage technology, based on batteries, for development in Concepcion. The project will be developed by Solar Philippines and will consist of nearly half a million modules.

The Concepcion solar power project will initially sell electricity in the open market while continuing to negotiate with utilities for a long-term power purchase agreement.

After the Renewable Energy Law was approved in 2008 a surge in renewable energy capacity addition was seen in the Philippines. The government had announced a feed-in tariff scheme wherein projects were offered ¢0.21 per kWh. The tariff scheme attracted overwhelming response from project developers, forcing the government to expand the capacity under the program from 50 megawatt to 500 megawatt.

Image by vectoropenstock.com for Cleantechies

04/30/2017 0 comment

Renewable Energy

India Likely To Add Almost 10 Gigawatts Solar Power This Year

written by saurabh

The Indian solar power market is expected to see another record capacity addition this year as several large-scale power projects are lined up for commissioning.

According to India-based consultancy Mercom Capital Group, almost 10 gigawatts of solar power capacity is expected to be commissioned in 2017. The group expects just over 9,000 megawatts of utility-scale and almost 800 megawatts of rooftop solar power capacity to be added this year.

Mercom also reported that an estimated 4,311 megawatt solar power capacity was added in 2016. The 130% expected jump in installed capacity this year will make India the third-largest solar power market in the world. India’s total installed solar power capacity touched 12.8 gigawatts as on 31 March 2017. Mercom estimates a pipeline of 12.6 gigawatts capacity under development and an additional 6.1 gigawatts capacity ready to be auctioned.

Southern states have already seen several cycles of competitive auctions in a span of few months and, understandably, have large capacities under development. Karnataka, Andhra Pradesh and Telangana are already among the leading states in terms of installed capacity and are reported to have more than 2 gigawatts of capacity under operational.

In February 2017 India generated more than 1 billion kWh of solar power for the first time-ever. Compared to the same month last year the power generated in February 2017 was 80% higher. Solar power generation in the southern states increased from 175 million kWh in February 2016 to 649 million kWh in February 2017. Andhra Pradesh, Telangana and Karnataka reported four times jump each in the power generation. Tamil Nadu, home to the largest solar power project in India, reported 173% increase in power generation.

The Indian solar power market is growing at a very rapid pace with no signs of slowing down. Increased support from the government and competitiveness among developers has resulted in a 73% collapse in tariff bids between 2010 and 2017 with bids falling by 27% between 2016 and 2017.

India had set a target to add 12 gigawatts solar power capacity between April 2016 and March 2017. According to data provided by the Ministry of New & Renewable Energy only 2.8 gigawatts was added between April 2016 and February 2017.

04/30/2017 0 comment

Renewable Energy

Fimer To Supply Inverters For 754 Megawatt Enel Solar Park In Mexico

written by saurabh

Italian inverter manufacturer Fimer has been selected by Enel to provide equipment for the largest solar power project in Americas.

A subsidiary of Enel Green Power is developing a 754 megawatt solar power park in Mexico. The project will be the largest across North and South America once it is operational next year. Fimer will supply more than 600 of its R 11015 TL 1500V inverters to the solar power park.

The company received grant worth €9 million from German bank Deutsche Bank and Italian export credit agency SACE.

An estimated 1,700 GWh electricity would be generated from the Villanueva solar park every year enough to meet power consumption of over 1.3 million households. The projects shall also offset more than 780,000 tonnes of carbon dioxide emissions. Enel Green Power will invest $650 million on these projects.

Enel had secured the rights to develop these two projects in the first-ever renewable energy tender announced by Mexico in March 2016. The company entered contracts to supply clean energy for a 15-year period and clean energy certificates for a period of 20 years.

Enel Green Power Mexico is also another solar power project of 238 megawatts in Mexico. The Don José project will generate 539 GWh electricity every year, enough to meet power demand of 410,000 households and offset more than 245,000 tonnes of carbon dioxide emissions.

04/30/2017 0 comment

Renewable Energy

Government-backed Solar Energy Corporation Of India Eyes International Markets

written by saurabh

Following the tremendous success in organisation of auction in the solar and wind energy markets, the Solar Energy Corporation of India is now looking to foray into international markets.

Managing Director of SECI, Ashwini Kumar, recently told a media outlet that the entity is considering to enter other developing markets in Asia and Africa with an intention to increase renewable energy access. He also stated that governments of several countries have shown interest in this regard.

Solar Energy Corporation has successfully organised several large-scale solar power auctions which have resulted in a massive decline in solar power tariffs. Since 2010 the solar power tariffs have collapsed 73% in competitive auctions; large-scale capacities offered by SECI in recent years have contributed the most to this decline.

The Indian government registered SECI as a company and allowed it to generate revenues like any other government-owned entity. SECI generates revenue from regulatory fees as well as through trading margin in-built into the power purchase agreements of several solar and wind energy projects it auctions. SECI also organises auctions for several private and public sector companies which want to set up projects but lack the infrastructure or the credibility that comes with a government-backed entity like SECI.

SECI can also play a major role in helping developing markets in Asia and Africa to develop their own renewable energy programs and policies. It can share best practices with these emerging renewable energy markets which will ensure sustained and cost-efficient growth of clean energy.

SECI has played a major role in making the International Solar Alliance (ISA) a reality. The ISA, a brainchild of Indian Prime Minister Narendra Modi, is a treaty backed association of 121 countries looking to partner in a goal to reduce solar power costs and increase electricity access through solar power. The ISA signed an agreement with the World Bank to mobilise $1 trillion in solar power investments by 2030.

04/28/2017 0 comment

Renewable Energy

Agreements Signed For 120 Megawatt Solar In Nigeria

written by saurabh

Two more project developers have signed financial risk agreements for utility-scale solar power projects in Nigeria strengthening the country’s roadmap towards becoming a major solar power market in Africa.

Local companies Afrinegia Nigeria Limited and CT Cosmos Nigeria Limited signed put/call option agreements with the Ministry of Power Works and Housing. Afrinegia Nigeria Limited will develop a 50 megawatt solar power project while CT Cosmos Nigeria Limited will set up a 70 megawatt solar power project.

A put/call options agreement helps in mitigation of financial risk to the project developers. These agreements transfer the payment risk from the state-owned company Nigerian Bulk Electricity Trading Plc (NBET) directly to the ministry.

The agreements are part of Nigeria’s push towards large-scale deployment of solar power projects across the country. In July last year Nigerian Bulk Electricity Trading (NBET) signed power purchase agreements with more than 10 companies willing to develop around 975 megawatts of solar power capacity.

Subsequently, more companies, including Scatec Solar, a joint venture of Nigus Greenergy and Volt Renewables, Phanes Group and GreenWish Partners, also signed similar power purchase agreements with NBET.

In 2015, the Nigerian Electricity Regulatory Commission approved feed-in tariff regulations for renewable energy sourced electricity. As per the provisions of the regulations, electricity distribution companies will be required to source at least 50% of their total procurement from renewable energy sources. The Commission also mandated that the balance 50% electricity would have to be sourced from NBET.

04/28/2017 0 comment

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