Tag:

india solar power

India Scraps Plan To Support Domestic Solar Equipment Manufacturers

written by saurabh

The Indian Finance Ministry has rejected a proposal by the Ministry of New & Renewable Energy for a financial support program from domestic solar equipment manufacturers.

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.

Under the proposed scheme, the government plans to have a manufacturing base of 5 GW by 2019. With the capital cost support the government hopes that these products will be able compete with cheaper modules from China and the United States.

Over the last few years, imported solar modules have gained an overwhelming share in India’s solar power market leading to a massive crash in the tariff bids. Several project developers have signed large deals with Chinese module manufacturers in order to make good on their low tariff bids.

According to the Ministry of New and Renewable Energy, India imported 161.5 million solar panels in financial year 2014–15. Of these, 113.5 million panels, or 70%, were imported from China. This marked a significant increase from the 65% share of Chinese modules in financial year 2013–14. Of the total 154.1 million panels imported that year, 100.4 million came from China.

The Indian government increased solar power capacity target by five times hoping that it would create a market bug enough for co-existance of domestic and foreign module suppliers. The government even set separate quotas for projects that could use only Indian-made modules. However, this policy did not conform with international trade regulations, the World Trade Organisation (WTO) found.

The Indian solar power sector is thriving well with project developers willing to set up projects at tariffs lower than those of coal-based power plants. The government, possibly rightly, does not see any reason to interfere and disrupt the market in any way. An additional $3 billion financial burden is certainly not something the government would like on its books.

06/26/2017 0 comment

Renewable Energy

Solar Energy Corp Of India Launches Fresh Tender For 750 Megawatts Solar

written by saurabh

Following the massive success of two recent auctions at the Bhadla solar power park in the state of Rajasthan, the Solar Energy Corporation of India has announced two new tenders for the expansion of the solar park.

Solar Energy Corporation of India (SECI) will offer 500 megawatts and 250 megawatts through two tenders at Bhadla solar power through the viability gap funding mode. Project developers to be offered the projects at a fixed tariff of Rs 3.93/kWh (6.1¢/kWh) but will have to bid for the capital cost support needed from the government.

Developers, however, will also be free to quote tariffs lower than the benchmark and opt not to take any capital cost support.

The tenders have been launched under the phase II batch IV of India’s National Solar Mission. The SECI had announced a target to auction 5 gigawatts capacity through the viability gap funding mode. It has so far auctioned 4.5 gigawatts capacity, of which power purchase agreement have been signed for 2.5 gigawatts. Through these tenders SECI would achieve its target.

The benchmark tariff offered by SECI is at 61% premium to the current lowest tariff for solar power projects. In May this year, ACME Cleantech Solutions secured a project at the Bhadla solar power park at Rs 2.44/kWh (3.8¢/kWh); no capital cost assistance was offered in that auction.

Thus, the higher tariff at offer, along with the capital cost assistance will act as a double bonanza for project developers. It would not be surprising if developers bids for lower tariff and no capital cost assistance.

We have seen extreme competition among project developers over the last few months in India. Tariff bids in India crashed 26% in a matter of just three months.

Acme Cleantech Solution (200 megawatts) and SB Cleantech (300 megawatts) were the winners in (Bhadla solar park) auction at a tariff of Rs 2.44/kWh and Rs 2.45/kWh (3.8¢/kWh), respectively. The massive jump in competition within two days is evident from the fact that Acme Cleantech Solutions reduced its bid from a losing one of Rs 3.36/kWh (5.2¢/kWh) in the 250 megawatts Bhadla auction to just Rs 2.44/kWh (3.8¢/kWh) for the 500 megawatts auction – decline of 27.4% in a matter of two days.

06/25/2017 0 comment

Renewable Energy

CleanMax Solar To Execute Rooftop Solar Projects For Chennai Metro

written by saurabh

India’s leading rooftop solar power EPC company has been selected to provide services to the Chennai Metro system in the state of Tamil Nadu.

CleanMax Solar will set up six megawatts rooftop solar power capacity atop stations and coach yard of Chennai Metro. Through these power systems Chennai shall join several other cities in India where metro systems have adopted solar power to meet a substantial share of their energy needs.

Chennai Metro shall use the same mode of project execution as the recently launched Kochi Metro. 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 after few years, revenue from the sale of electricity to Chennai Metro will also 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.

All power systems are expected to be commissioned in 12 months while the two parties are expected to sign the power purchase agreement within few weeks.

A number of cities across India are planning metro systems and are likely to set up rooftop solar power systems. Some, like the Delhi Metro, may even enter PPAs with large-scale solar power projects to reduce energy costs and keep a check on cost to the commuters. Using renewable energy sources make perfect economic sense for public transportation projects as the energy costs are very low making them attractive to commuters.

06/25/2017 0 comment

Renewable Energy

NEXTracker Achieves 1 Gigawatt Solar Tracker Sales In India

written by saurabh

The world’s leading solar power tracker company NEXTracker has achieved a major milestone in one of the world’s fastest growing solar power markets.

NEXTracker recently announced that it has now sold more than 1 gigawatts in solar trackers to projects in India.

“We are appreciative to be partnering on over 1 GW of solar power plants with many of India’s leading renewable energy firms,” stated NEXTracker CEO Dan Shugar. “We have designed the most flexible single-axis tracker to fit a wide range of project attributes in India such as property shape and size, terrain profile, voltage, and wind speed. We have significantly invested and grown our Hyderabad team, and have adapted our product for local conditions, supporting dozens of projects that are under present construction.”

NEXTracker has worked with some of the leading IPPs in India including Adani Green Energy, SkyPower, Suzlon Energy, CleanMax Solar, and ReNew Power Ventures. With Adani Green Energy, NEXTracker commissioned India’s largest tracker-equipped solar power project. While delivering trackers to Adani Green Energy’s Punjab-based project NEXTracker had indicated that it could receive more orders from the IPP.

Earlier this year, the company announced plans to set up a manufacturing facility in India to cater to the growing demand. The company has right reasons to expand manufacturing in the country which could soon become the third-largest solar power market in the world.

The company believes that the solar tracker market would increase from 7% in 2016 to 31% in 2021 with the massive push for large-scale project in India.

NEXTracker may receive support from the government under the Make In India program as well as special incentives planned for manufacturers of solar power modules and equipment. As per a draft plan discussed by the Ministry of New & Renewable Energy last year, the government is looking to offer direct subsidies to manufacturers, be it Indian or foreign, willing to set up manufacturing units in the country. The subsidies could be in the form interest subvention or cheaper loans.

GTM Research noted that NEXTracker remained the leading solar power tracker for a second consecutive year in 2016 and increased its global share in trackers market from 24% to 30%. NEXTracker also recently shipped trackers to the largest solar power project in the western hemisphere. The project, located in Northern Mexico, will have an installed capacity of 752 megawatts and is owned by a subsidiary of Enel Green Power.

06/22/2017 0 comment

Renewable Energy

Equis Energy Looking To Exit Indian Renewable Energy Market

written by saurabh

The largest independent renewable energy project developer Equis Energy maybe looking to exit one of the fastest growing renewable energy markets in the world.

According to media reports, Equis Energy is looking to sell around 700 megawatts of solar and wind energy capacity it owns in India. Indian business daily Economic Times reports that the Hero Future Energies, part of conglomerate Hero Group, is planning to buyout Equis’ assets.

According to a recent press release issued by Equis Energy, the company has financed 674 megawatts capacity with an additional 300 megawatt capacity under development. The company, through two subsidiaries, commissioned 130 megawatt solar power capacity in the state of Telangana. The company is expected to commission more utility-scale solar power projects over the next few months.

The two projects are expected to generate over 211,000 MWh of electricity every year offsetting more than 195,000 tonnes of carbon dioxide emissions in the process. The company is expected to generate around $18 million in revenue every year from these two projects.

A statement issued by Equis Board Chairman David Russell did not give any indication about the possibility of company’s exit from the Indian market. “Equis has nearly a gigawatt (GW) of renewable energy in operation and under development in India and we are excited about the prospects for continued growth, delivering low-cost, clean energy to Indian consumers and businesses, as well as offering jobs to the community,” Russell said. The statement seemed pretty generic and has been repeated used in several India-related press releases.

However, the company has been making business moves in new markets within India. Earlier this month, Equis also 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.

06/22/2017 0 comment

Renewable Energy

Indian Railways To Install Solar Panels Atop 250 Trains

written by saurabh

The Indian Railways is going all out to reduce its fuel costs and adopt solar power in a major way. Apart from planning large-scale solar power projects and rooftop solar power systems, the world’s fourth-largest railway network is planning to install solar panels on top of coaches.

The Indian Railways has floated a tender for installation of solar panels atop 250 trains to power fans and lighting systems. The tender, according to media reports, would require winning companies to install battery systems in addition to solar panels.

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, through the mandate of the central government and its own target to shift to clean energy sources in the long-term, has taken numerous initiatives in the recent past. A study by the United Nations Development Program stated that the Indian Railways could source as much as 25% of its energy needs from renewable energy sources by 2025.

The Council on Energy, Environment and Water (CEEW) has found that Indian Railways could set up 5 gigawatts of solar power capacity, through rooftop and utility-scale projects, to significantly increase its consumption of renewable energy over the next few years.

The study by CEEW shows that 3,900 megawatts of utility-scale projects and 1,100 megawatts of rooftop projects can be installed by the Indian Railways with an estimated investment of $3.6 billion. Last year, the Indian Railways joined hands with UNDP to execute plans to set up 5,000 megawatts of solar power capacity.

Earlier this year, the Indian government announced a major push by the Indian Railways in the rooftop solar power market, perhaps the largest in India and the world!

The Indian Finance Minister Arun Jaitley announced that the 7,000 railway stations across the country will be fed with solar power as per the Indian Railways mission to implement 1,000 megawatts of solar power capacity. The minister made the announcement during the union budget speech on 1 February 2017.

The minister stated that work to set up rooftop solar power systems at 300 stations has already started, and soon this number will increase to 2,000 stations. According to data released by the Minister of Railways, India had 7,137 railway stations at the end of March 2015.

In the large-scale solar power market, the Indian Railways is looking to adopt the model used by the Delhi Metro Rail Corporation (DMRC), India’s largest subway system. DMRC has signed a power purchase agreement of around 200 megawatts with Rewa Solar Power Park located about 800 kilometres.

The Indian Railways has approached the government of Madhya Pradesh with a proposal to set up a mega solar power park with a capacity of 700-800 megawatts (MW). The project will come up at Shajapur, a few hundred kilometres east of the Rewa solar power park which received the lowest-ever tariff bid ever in India.

06/18/2017 0 comment

Renewable Energy

World’s Largest Coal Miner To Shut 37 Loss-making Mines In India

written by saurabh

Coal India, the largest coal producing company in the world, recently announced plans to shutdown some mines that are no longer economically viable.

Government-owned Coal India recently informed the Bombay Stock Exchange that it will shut 37 underground mines as it is financially unviable to continue mining coal from them. The company plans to shut these mines by March 2018.

These mines comprise of about 9% of the total mines operational under Coal India. Media reports quoting industry sources stated that the company is expected to realise savings of Rs 800 crore ($124 million).

Coal India’s provisional production in 2016-17 was 554.13 million tonnes against a target of 598.61 million tonnes and recording a growth rate of 2.9 per cent. Of this underground mining contributed to around 31 million tonnes.

While underground mines have their own set of constraints and hurdles which significantly increase the cost of production, increased competition from renewable energy technologies, where fuel cost is nil, could also be a contributing factor.

Increased Competition From Renewable Energy

Earlier this year, solar power tariffs in India fell 26% over a period of 3 months as project developers placed extremely competitive bids for large-scale projects. The current lowest solar power tariff in India stands at Rs 2.44/kWh (3.8¢/kWh).

Wind energy tariffs in the first-ever auction organised by the Ministry of New & Renewable Energy were also substantially lower than the feed-in tariffs enforced by various states. The current lowest wind energy tariff bid in India is Rs 3.46/kWh (5.4¢/kWh) and is expected to fall further as 5-6 gigawatts wind energy capacity is planned to be auctioned every year till 2022.

Recent reports also stated that almost 14 gigawatts of planned coal-based power plants were shelved in India over financial viability concerns.

Renewable energy capacity addition, too, increased at a much faster rate in FY2016-17 compared to coal-based power plants.

A total of 6,990 megawatts of 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.

Coal India itself is planning to set up large-scale solar power projects. The company is expected to set up at least 1 gigawatts solar power capacity in the near future.

06/18/2017 0 comment

Renewable Energy

Trina Modules Now Generating Power At India’s 2nd Largest Solar Power Project

written by saurabh

Trina Solar recently issued a press release boasting of the fact that its solar modules have started feeding electricity to the grid in India from a large-scale project of SB Energy, a joint venture company of Softbank, Foxconn Technology and Bharti Enterprises.

The project, with a capacity of 455 megawatts (DC), is perhaps the second largest solar power plant developed by a single company in India. The largest operational project being the 648 megawatts power plant in Tamil Nadu owned by Adani Green Energy. The SB Energy power plant is part of the 1 gigawatt NTPC solar power park at Kurnool.

Trina announced that it shipped more than 700,000 TALLMAX 72-cell polycrystalline panels to the project which was commissioned on 29 March 2017 and recently started commercial operations. As mentioned in earlier articles,

SB Energy was the sole winner of the 350 megawatts (AC) solar power tender launched by India’s largest power generation company NTPC Limited for a solar power park in Kurnool district of Andhra Pradesh. The auction took place in December 2015 and was awarded to SB Energy at a tariff of Rs 4.63/kWh (7.12¢/kWh), the lowest in India at that time.

SunEdison also secured rights to develop a 500 megawatts (AC) project at the solar power park through in a separate auction. Once commissioned, the project will overtake SB Energy as the operator of India’s second-largest solar power project.

SB Energy is among the leading solar power developers in India and remains at the forefront of the sharp decline in solar power tariffs. Last month,

… the company secured rights to develop 100 megawatts capacity out of the 250 megawatts offered by Adani Enterprises at the Bhadla solar power park. The capacity was allocated at Rs 2.63/kWh (4.1¢/kWh), one of the lowest tariffs in India at the time. Two days later, the company also won 300 megawatts capacity offered by IL&FS, an infrastructure company, at the same solar power park at Rs 2.45/kWh (3.8¢/kWh) another record low in India.

06/18/2017 0 comment

Renewable Energy

French Energy Major Engie Plans At Least $1 Billion Solar Investment In India

written by saurabh

French energy company Engie has announced plans to invest ‘a minimum’ $1 billion in India as it looks to strengthen its share in the rapidly growing solar power market.

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. Engie is present in India through a subsidiary – Solairedirect.

Solairedirect is among the leading foreign solar power project developers operating in India, and is also among the first movers, operating since the launch of the National Solar Mission in 2010. The company has been at the forefront of the recent sharp decline in solar tariff bids in 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 set another record recently in an auction for a solar power park being developed by India’s largest power generator NTPC Limited.

Solairedirect recently 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.

Solairedirect currently owns only solar power projects in India but is looking to diversify into wind energy as well. Malcolm Wrigley, Engie’s India CEO stated that the company could participate in the upcoming wind energy auctions.

05/31/2017 0 comment

Renewable Energy

India’s Largest Port Plans 200 Megawatt Solar-Wind Energy Park

written by saurabh

India’s largest port (by volume handled) could soon be powered by renewable energy, the Minister for Shipping and Transport Nitin Gadkari recently stated.

Government officials are assessing the possibility of setting up a solar-wind energy park to power the seaport of Kandla, located in the west Indian state of Gujarat. In addition to meeting its own power demand the port may also be able to sell renewable energy to other buyers.

Minister Gadkari stated that the solar-wind energy park could be commissioned over an area of 150,000 acres with the total installed capacity of around 200 megawatts; Gadkari did not share the likely split between solar and wind energy at the park.

Gadkari noted that the solar power tariffs have crashed in India over the last few months and the port could use the surplus land to develop large-scale renewable energy projects.

Since February 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. The race to lower tariff bids has been fuelled primarily by the crash in solar module prices, regulatory support from the government and, perhaps, the promise and hope of cheap debt finance.

Interestingly, this proposed renewable energy park will have a capacity greater than the entire planned capacity addition at all seaports in India.

The Ministry of Shipping had announced that under the ‘Green Port Initiative’ a total of 136.5 megawatts of renewable energy projects will be implemented at a dozen major ports in the country. These include 91.5 megawatts solar power and 45 megawatts wind energy projects.

The Indian government is pushing for public sector companies and institutions to set up renewable energy projects. Any public sector company with surplus land is being asked to set up large-scale solar and wind energy projects. Meanwhile, the Ministry for Civil Aviation has announced that 143 airports in the country will set up a cumulative of 148 megawatts solar power capacity.

05/31/2017 0 comment

Renewable Energy

SoftBank-backed SB Energy Justifies India’s Lowest Solar Power Tariffs

written by saurabh

SoftBank led SB Energy has stated that India’s lowest solar power tariffs are financially viable given the sharp fall in module prices and ample supply of debt finance for energy projects.

Manoj Kohli, executive chairman of SB Energy, recently stated that the company’s tariff bid of ₹2.45/kWh (3.8¢/kWh) for a 300 megawatt solar power project in Rajasthan is aggressive but financially viable. Kohli stated three major reasons for the sharp fall in tariff bids in India’s solar power market over the last few months.

Price of Chinese solar power modules have fallen significantly over the last few months has been a major reason for conjugated fall in tariff bids world over, Kohli said. Chinese exports have increased as the country’s domestic solar power program has slowed down.

Global banks have also increased exposure to renewable energy projects, Kohli added. Several of the cheapest solar power projects across the world have received debt funding at very low rates. These projects include the 200 megawatt phase II of Dubai solar power park and the 750 megawatt Rewa solar power park in Madhya Pradesh, India.

Kohli also stated another global trend in the solar power market. Larger projects are being auctioned and commissioned now than at any time in the history. This results in lower costs due to economics of scale.

The three reasons mentioned by Kohli are applicable to the global solar power market in general but there are India-specific reasons as well for the declining prices. Withdrawal of inter-state transmission charges, increased renewable energy installation and consumption targets and efforts to improve the financial health of power utilities have contributed significantly to the decline in solar tariff bids in India.

05/28/2017 0 comment

Renewable Energy

Indian State Of Uttar Pradesh Plans 750 Megawatts Of Solar Power Project

written by saurabh

The unprecedented success of Rewa and Bhadla solar power auctions has promoted several Indian states to undertake similar auctions.

Now, Uttar Pradesh is planning to acquire 750 megawatts solar power from a project located within the Bhadla solar power park in neighbouring state of Rajasthan.

Officials of the Rajasthan Renewable Energy Corporation, the Solar Energy Corporation of India and the Ministry of New and Renewable Energy will soon chalk out the terms of auction.

The power generated at Bhadla solar power park will be transmitted to power utilities in Uttar Pradesh at no additional charges as the MNRE has exempted solar and wind energy projects from inter-state transmission and wheeling charges.

This off-site model of solar power procurement has been in practice for a while now. The state of Haryana had auctioned projects that would be installed in Rajasthan. Better solar radiation, availability of barren land and existing transmission infrastructure makes Rajasthan an apt location to set up large-scale solar power projects.

Delhi Metro Rail Corporation signed agreement to procure electricity generated at Rewa solar power park in Madhya, nearly 800 kilometres away. A Delhi-based utility also signed an agreement with SunEdison to procure electricity from a 180 megawatts solar power project that was supposed to come up in Madhya Pradesh.

The Indian government’s project of Green Energy Corridors promotes such off-site project development. It encourages states deficient in renewable energy resources to procure electricity through dedicated transmission lines.

05/27/2017 0 comment

Renewable Energy

India’s Tamil Nadu Plans 1.5 Gigawatts Solar Power Tender

written by saurabh

The power utility of India’s Tamil Nadu state will yet again try its luck at auctioning large-scale solar power projects after it failed to draw interest miserably in the last two auctions.

Tamil Nadu Generation and Distribution Corporation (TANGEDCO) it set to auction 1.5 gigawatts solar power capacity. Prospective projects developers can bid for project sizes of one to 500 megawatts.

The maximum tariff bid allowed will be Rs 4.00/kWh. This threshold tariff is 64% higher than the current lowest solar power tariff in India of Rs 2.44/kWh.

The latest auction is not expected to breach this lowest tariff price. TANGEDCO is not among the best buyers of renewable energy and has been known to default on monthly payments to projects developers. Additionally, project developers in Tamil Nadu face frequent issues of non-availability of transmission infrastructure and are thus forced to shutdown their projects which leads to revenue loss.

TANGEDCO had offered 500 megawatts solar power capacity in February 2016 but received bids for just 177 megawatts. The utility put 500 megawatts capacity on the block again in November 2016 but received bids for 300 megawatts only.

Now, TANGEDCO is taking extra measures to ensure bidders are attracted towards the latest tender. The utility is offering 24 months to project developers to commission projects of size exceeding 50 megawatts; this is the longest time ever given to commission solar PV power projects in India. Project developers will also be compensated in case of unavailability of transmission infrastructure.

Tamil Nadu has very ambitious solar power targets but infrastructure support remains an issue.

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.

Image by vectoropenstock.com for Cleantechies

05/24/2017 0 comment

Renewable Energy

Indian Hydro Power Company Scouts Partner For 500 Megawatt Solar Venture

written by saurabh

SJVN Limited is looking for a partner to set up solar power capacity of 500 megawatts. The state-owned company plans a joint venture which will participate the auctions organised by other public sector companies.

In the proposed joint venture SJVN shall have a minimum of 26% share. Eligible parties to the joint venture must meet certain conditions. In case of project developers, they should have commissioned at least 50 megawatts of cumulative capacity. In case of PV module manufacturers, the production capacity should be at least 100 megawatts.

SJVN is among several public sector companies in India that plan to set up large-scale solar and wind energy projects across the country as part of the government’s ambitious renewable energy targets.

A four gigawatts solar power park is being planned in Rajasthan by various public sector companies, including SJVN and Solar Energy Corporation of India.

The offer for partnership by SJVN offers a unique opportunity for private sector project developers struggling to survive in the extremely competitive Indian solar power market. Being partner to a public sector company could allow project developers access to cheaper debt finance which has proven to be critical for bidding at competitive tariffs.

From the point of view of the buyer as well the presence of a government-owned entity helps boost confidence regarding longevity and proper execution of the project.

05/24/2017 0 comment

Newer Posts

Older Posts