EQ Magazine Feb 2022 Edition by EQ Int'l Solar Media Group

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CONT EN T

VOLUME 14 Issue #03

Disclaimer,Limitations of Liability While every efforts has been made to ensure the high quality and accuracy of EQ international and all our authors research articles with the greatest of care and attention ,we make no warranty concerning its content,and the magazine is provided on an>> as is <<basis.EQ international contains advertising and third –party contents.EQ International is not liable for any third- party content or error,omission or inaccuracy in any advertising material ,nor is it responsible for the availability of external web sites or their contents

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100 87 INTERVIEW MR. HONEY RAZA

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INDIAN SOLAR INDUSTRY OUTLOOK CY Q4 2021

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C o n tent PG. NO. INTRODUCTION ………………………………………………………………………………………...…………………………………………………………….10 SOLAR INSTALLATIONS IN INDIA BY YEAR ……………………………………………………………………………………………………………12 UTILITY-SCALE SOLAR INSTALLATIONS …………………………………………………………………………………………………………...……13 MARKET SCENARIO ………………………………………………………………………………………………………………….……………………………..15 SOLAR ROOFTOP INSTALLATION ……………………………………………………………………………………………………………………...……17 INSTALLED POWER CAPACITY FROM DIFFERENT SOURCES ……………………………………………………………………………….19 DISCOM DUES TO POWER GENERATOR ………………………………………………………………………………………………………………..22 RE GENERATION IN INDIA ……………………………………………………………………………………………………………………………………..23 SOLAR POWER GENERATION BY STATE …………………………………………………….…………………………………………………………24 ELECTRICITY ENERGY DEMAND & DEFICIT BY STATE …………………………………………………………………………………………26 ANNUAL GROWTH IN POWER GENERATION ………………………………………………….…………………………………………………..26 STATE-WISE SOLAR ENERGY GENERATION ………………………………………………………….………………………………………………27 SOLAR PV INSTALLATION BY STATE ……………………………………………………………………………….……………………………………..28 INDIA ACHIEVES 100 GW MILESTONE …………………………………………………………………………………………………………………..29 SECI MONTHLY PAYMENT ……………………………………………………………………………………………………………………………………...30 TRANSMISSION AND DISTRIBUTION LOSSES …………………………………………………...………………………………………………..32 ELECTRICITY CONSUMPTIONS IN INDIA ……………………………………………………………………...………………………………………34 MARKET SHARE …………………………………………………………………………………………………………………………………….………………..35 ELECTRICITY MARKET …………………………………………………………………………………………………………………………………………….38 IMPORTED SOLAR PV MODULE AVERAGE SELLING PRICE …………………...…………………………………………………………...41 RECENT SOLAR AUCTION ……………………………………………………………………………………………………...………………………………42 RECENT SOLAR TENDER …………………………………………………………………………………………………...…………………………………..43 QUARTERLY RESULTS …………………………………………………………………………………………………….………………………………………44 FUNDING AND M&A UPDATES …………………………………………………………………………………………………………………………….45 POLICY & REGULATORY UPDATES ………………………………………………………….…………………………………………………………….50 SOLAR PARKS IN INDIA …………………………………………………………………………………...……………………………………………………53 RENEWABLE ENERGY CERTIFICATE TRADING ………………………………….………………………………………………………………..58 TARIFF COST OF SOLAR ENERGY …………………………………………………………………………………………………………………………..59 INSTALLED CAPACITY TRENDS ………………………………………………………………………………...………………………………………….60 APPROVED LIST OF MODELS AND MANUFACTURERS (ALMM) …………………………..…………………………………………….61 HYDROGEN UPDATES ………………....................................................…..........................................................................67 EV UPDATES...................................................................................................................................................................68

A bbreviation ALMM ASP BCD BOM BU CEA CERC CFA cKM CPSU CY DISCOM EV GW GWh IREDA ISTS JNNSM KV

Approved List of Models and Module manufacturers Average Selling Price Basic Custom Duty Balance of Material Billion Unit Central Electricity Authority Central Electricity Regulatory Commission Central Finance Assistance Circuit kilometre Central Public Sector Unit Calendar Year Distribution Company Electric Vehicle Gigawatt Gigawatt Hour Indian Renewable Energy Development Agency Inter-State Transmission System Jawaharlal Nehru National Solar Mission Kilo volt

kW kWh LC M&A MNRE MoU MSME MU MVA MW PMKUSUM PPA PV RE REC RPO RTS T&D

Kilowatt Kilowatt Hour Letter of Credit Merger and Acquisition Ministry of New and Renewable Energy Memorandum of Understanding Ministry of Micro, Small and Medium Enterprise Million Unit Mega Volt Amp Megawatt Pradhan Mantri Kisan UrjaSuraksha evem Utthan Mahabhiyan Power Purchase Agreement Photovoltaic Renewable Energy Renewable Energy Certificate Renewable Purchase Obligation Rooftop Solar System Transmission and Distribution

INTRODUCTION olar capacity additions grow by 5% in Q4 2021

The market is slowly recovering from a pandemic, and

over the previous quarter with around 2.96 GW

projects are getting commissioned which were stuck in 2020 but one issue of rising in the Solar PV modules continues in the Indian Solar industry, the price of Solar PV modules has increased by 31% for Poly and 23% for Mono Perc comparison with the first quarter of 2021. India installed Solar PV capacity has reached the 47.89 GW (utility & rooftop) mark as of 31st December 2021. Of the total Solar PV installed capacity, most of the in-

installed Solar PV capacity, a decent increase compared to around 2.83 GW installed in Q3 2021. Installations were up by above 110 percent YoY compared to 1.41 GW installed in Q4 2020. In Q4 2021, large-scale installations totaled around 2.28 GW compared to around 2.1 GW installed in the previous quarter. YoY, large-scale installations increased by over 103 percent compared to 1.12 GW installed in Q4 2020. The large-scale Solar PV project installation figures were the highest since the first quarter of 2017 as the market opened after the first half of 2021, so many projects which were not able to get commissioned during the lock-down period due to COVID-19 restrictions, commissioned mostly in the last quarter of 2021, also there is a duty-free window in Q4, which allowed the developers to commissioned their project during this period. Even the installations are estimated to be high in Q1 2022, but in the recent Budget 2022, it was confirmed that the basic customs duty (BCD) will be imposed on Solar PV cells and modules from April 2022. Rooftop Solar installations accounted for around 684 MW in Q4 2021, a decrease of 6 percent compared to 726 MW installed in Q3 2021. In a YoY comparison, rooftop Solar installations increased by 136 percent, with around 289 MW added in Q4 2020. Considering the lockdown has been lifted across the country except for a few southern states, supply chain disruptions have been improved, and workforce shortages were the gone days, most Solar projects scheduled for commissioning at the starting of 2021 been slipped into the last quarter of 2021, which showed a whooping 2.96 GW (utility & rooftop) of Solar PV projects in the fourth quarter of 2021. The market has substantially improved since Q4 of 2020 due to which the Solar PV installations crossed 2 GW in all four quarters of 2021.

FEBRUARY 2022

stallation comes from utility-scale projects of more than 41.6 GW, while the rest comes from rooftop Solar. In Q4 2021, the pace of Solar rooftop installations has increased along with the installations of a utility scale. Many of the industrial and commercial customers are allowing the installers for rooftop Solar installations which was not available a few months back, especially in the second wave restriction. The year has started with a good note for the Indian Solar industry and ends with maximum installations, as India added around 10.4 GW of Solar PV capacity in the calendar year 2021 (utility & rooftop) whereas the installations in the whole calendar year of 2020 were just 3.7 GW. If we talk about the growth from 2020 to 2021, there was a growth rate of 179 percent whereas the installations grew from CY 2020 with 3.7 GW to 10.4 GW in CY 2021. The share of utility-scale in the total Solar PV installations as of December 2021 was around 87 percent, but in CY Q4 2021, it was reduced to 77 percent. While the share of rooftop Solar as of December 2021 was having around 13 percent of the country's total Solar PV installations, it has gained a 23% share in the fourth quarter of CY 2021 of the total Solar PV installations. The share of the rooftop especially in the commercial and industrial space will grow substantially as the net-metering policy which was pending for a few months has been approved by the Ministry of Power where the new amendment allows the net metering users to go for loads up to 500 kW or up to the sanctioned load, whichever is lower.

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FEBRUARY 2022

In 2021, the PV supply chain see substantial price fluctuations. Polysilicon shortages affect production output

As a result, some module suppliers turned conservative in terms of shipment targets, dialling

across the supply chain, whilst energy intensity and con-

back the figure in interim financial statements.

sumption control, and power rationing imposed in China since September 2021 affected overall raw material sup-

However, Tier-1 module makers, who have pro-

ply. Against these backdrops, not only supply chain prices, but prices for the module, BOM (balance of material) surged. Having been affected by price hikes across the supply chain in the first half of the year, it was obvious for module suppliers to renegotiate prices with developers and to see orders being cancelled.

FEBRUARY 2022

duction units from polysilicon to modules, were taking the benefit of the price rise in the Solar PV module. The installations in 2021 would have been more than the actual, but due to supply shortage, many developers were not able to plan their commissioning date, and postpone their project execution.

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FEBRUARY 2022

SOLAR INSTALLATIONS IN INDIA BY YEAR The growth rate of Solar PV installations is quite pos-

itive in 2021, as India commissioned capacity in the Calendar year (CY) 2021 was around 10.4 GW compared to the installations in 2020 were 3.7 GW in the full twelve months. There was an exponential growth in the Indian Solar PV installations from 2016 to 2019, but due to COVID-19, the installations have slowed down. The installations in CY 2020 were reduced to 3.7 GW from 8.5 GW in CY 2019. But in CY 2021, the installations have taken a U-turn, the installations were quite positive in comparison with last year, but India needs more projects to be commissioned in the coming quarters as the target is huge, and left with only twelve months where the country has to achieve 100 GW of Solar PV installations by December 2022. After the Paris agreement, there is a positive growth in the Solar PV installations in the country, and India became one of the top Solar markets globally after China & the USA. The total renewable

FEBRUARY 2022

energy capacity (excluding Hydro Power) already crossed the 100 GW mark in December 2021. The 175 GW installed RE capacity by 2022 announced in 2015 by the Hon’ble Prime Minister of India surpassed the 100 GW milestone (excluding large hydro) in 2021. India has only tapped a fraction of the vast potential for renewable energy and, therefore, India has raised the target to 450 GW RE installed capacity by 2030. India will install the maximum capacity of yearly Solar PV installation in the Calendar year 2022, which already installed whooping 10.4 GW in 2021, the developers should procure the modules before the imposition of BCD, and commission the projects with the duty-free module. Even, India has tier-1 panel manufacturers who can provide quality panels at an affordable rate, also many huge announcements are having where top domestic manufacturers are announcing an expansion, and trying to match the capacity of Chinese module manufacturers so that they can get the benefit of economies of scale and supply the modules at a competitive rate.

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Installations in Indian Solar Industry is picking pace, and developers are commissioning their projects which had put at a halt due to travel restriction, approval issue, still, the price of the modules are not stable but showing a positive sign for the developers as freight charges are stabilizing slowly.

India’s renewable capacity (excluding Hydro Power) has crossed the 100 GW mark, of which Wind and Solar Power contribute most of the installation with a market share of 38.2 percent and 47.1 percent as per December 2021 CEA (Central Electricity Authority) updates.

UTILITY-SCALE SOLAR INSTALLATIONS In CY 2021, around 7.67 GW of Solar PV has been installed in the country under utility-scale installations. The projects which were not able to be commissioned in 2020

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due to COVID-19 restriction, those projects are commissioning in the calendar year 2021, but the shortage of modules is still looming in the sector.

FEBRUARY 2022

Source: MNRE, CEA “*Dec 2021data estimated”

FEBRUARY 2022

Source: EQ iSearch

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In Q4 2021, utility-scale projects accounted for 77 percent of the total Solar PV installed, which was up by 8.4 percent from Q3 2021, where the installations were around 2.1 GW. The installations in CY 2021 would have been more but due to an increase in the raw materials, also the safeguard duty was there whose last date was in July 2021, many projects were still on hold which might get commissioned in the coming quarter. Due to safeguarding duty removal in July, India installed around 5.8 GW in the second half compared to around 4.6 GW installed in the first half of 2021.

In the Budget 2022, it was mentioned that the date for BCD will not be postponed, but Indian developers cannot rely fully on domestic manufacturers as they have to procure the raw materials from Chinese players and the price of raw materials is quite high itself in China, so it will be an added cost to the developers who will buy panels either from India or from Chinese suppliers. It’s a wait and watches situation, what will happen to the projects which were aggressively quoted. The installations in CY 2020 were down by 66 percent compared to CY 2019 installations, whereas in CY 2021, total Solar installations have more than 2.79 times compared to 2020 yearly installations.

MARKET SCENARIO The installations for Solar PV in the calendar year 2021 were around 10.4 GW (utility-scale & rooftop), there was a growth of 179% compared to CY 2020 installations. Restrictions have been elevated, the workforce at the project locations are normal, but the significant issue is with the supply of Solar PV modules, as there is a shortage of raw materials in China, and there is a huge demand for Solar PV modules after restriction been uplifted across the world. Developers can delay projects and call for greater collaboration

Many signed orders will cause serious losses and seriously endanger the sustainable development of the industry due to the rising prices of materials followed by transport. As capacity utilization rates of Chinese manufacturers are falling, manufacturers request customers to delay the projects if possible. The module manufacturers have also called upon the relevant PV industry associations along with other bodies to monitor the upstream and downstream production capacity more closely to assist the planning of production capacities beforehand and balance upstream and downstream supply and demand. In the recently an-

among upstream and downstream players. Poly-

nounced Budget 2022, it was made clear that the BCD on

silicon prices recorded a rise, and glass prices are increasing. The world’s largest producer of Mono wafers (LONGi) is also increasing its wafer prices.

Solar PV cells and modules will be imposed from 1st April 2022, which creates ambiguity in the past for the BCD date and rates on Solar PV cells and modules.

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FEBRUARY 2022

As per the latest update on ALMM list l, 41 companies have been enlisted with 10.726 GW under the Approved

The year 2022 could be a pivotal one for India’s energy transition. Many big companies such as Reliance,

list of models and manufacturers. All the government

Adani, ReNew Power, NTPC had announced massive

Solar tenders coming these days are mandated to used modules listed under ALMM. On the other hand, none of the Chinese companies are there on the list, which might hamper and increase the tariff rate of future bids. PLI (Production Linked Incentive) scheme for Solar manufacturing concludes that the cell and module manufacturing facilities have a minimum gestation period of 18 months. Therefore, the first batch of the

investments in renewable energy (RE), mostly Solar, to slowly move their transition to a low-carbon fu-

Solar module from the facilities is expected before 2024. In the recently announced Budget 2022, The finance minister has proposed an additional allocation of ₹19,500 crore ($2.61 billion) for Production Linked Incentive for the manufacture of high-efficiency modules. This will also ensure the domestic manufacturing required for achieving the ambitious goal of 280 GW of installed Solar PV capacity by 2030. India’s current Solar PV module manufacturing installed capacities are in the range of ~10-15 GW, a significant portion of which is based on multi-crystalline technology, again many new expansions are happening these days with the highest rated panels of Mono PERC after the announcement of BCD. Solar developers have engineered and designed all upcoming Solar plants using Mono-PERC and bifacial technologies. India’s target to accomplish 280 GW Solar PV installed capacity by 2030 required a capacity addition of nearly 25 GWp per annum. The domestic module man-

ture. This is the last year for the JNNSM target which needs to be fulfilled as India installed around 493 GW of Solar PV capacity by the end of 2021 as per the CEA monthly update. In 2022, the installations will be a record year and will surpass an all-time high of Solar PV installations. There will be challenges for raw materials price and supply. There will also be a growth in Wind-Solar hybrid projects, along with green hydrogen. The Solar rooftop installation will also grow especially in the Commercial and Industrial (C&I) segment, as the electricity demand is increasing due to a sudden surge in demand in the economy after the upliftment of COVID restriction, and to reduce the cost of electricity C&I consumers will go for Solar installation. After the imposition of BCD on Solar, the duty will be 40% on the module and 25% on cell, this will affect the H2 2022 (second half 2022) installation, but the bailout option for the project developers is to procure the modules in advance before the 31st March 2022, whose project commissioning due date is in the calendar year 2022. The installations in the calendar year 2022 will be on the higher side, as this is the last year for the JNNSM target which was 100 GW till December 2022, but again this might change based on the surge in the third wave of COVID-19, even though the government has issue memorandum where it mentioned “Essential op-

ufacturing capacity is not sufficient to meet the yearly requirements and will cause a supply crunch. Factors

eration of renewable power generation utilities (Solar Power Plants, Wind Power Plants, Solar-Wind Hybrid

creating issues stating that the sector is going through a perfect storm. The prices of major raw materials for the manufacturing of modules like polysilicon, alu-

Power Plants, Small Hydro Power Plants, Biomass/ Biogas based Power Plants, etc.) and permissions re-

minium, silver, and more have increased substantially. The sea freight has also increased enormously.

FEBRUARY 2022

quired for the movement of personnel and goods for such operation because of restrictions being imposed due to rising cases of COVID-19”.

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SOLAR ROOFTOP INSTALLATION Rooftop Solar installations were slightly low by 6 %

The installations in CY 2020 were slow due to

in Q4 2021 reaching around 684 MW compared to Q3

massive lockdown across the country, also the uncertainty arising due to net-metering policy, as the final amendment came out from the Ministry of Power in 2021, the installations started rising and the results of which India installed over 2.75 GW in the twelve months of 2021.

2021. In CY, 2021 rooftop installations totaled 2.75 GW a strong 135 percent growth from CY 2020. The growth was majorly led by commercial and industrial installations followed by government and residential segments.

“*Dec 2021data estimated”

Cumulative rooftop Solar installations have reached 6.25 GW as per MNRE monthly updates and still make up just 13 percent of the total Solar PV installations in the country, the target for Solar rooftop by December 2022 is 40 GW, still a long way to go to reach the tar-

innovation was developing. Non-banking financing companies (NBFCs) offered credits with exor-

get, it is impossible to install 40 GW of Solar rooftop projects. We can estimate that India can achieve 10-12

ularly for MSMEs. The absence of creditworthiness, collateral, and long-haul vulnerability (both ad-

GW of rooftop Solar installations by 2022. In the past, raising money was a major challenge, Banks were hesitant to fund rooftop Solar projects, for which the

ministrative and strategy) are among the obstruc-

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bitant loan costs, making the rooftop project an unviable choice for the distributed Solar developer. Access to funding is still a major bottleneck, partic-

tions to the development of rooftop installation by MSMEs.

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After a slight decrease of over 6 percent quarter-over-quarter growth from Q3 2021 to Q4 2021, installations will move in double-digit growth as a net-metering policy which was pending for a few months to get the approval, also the restrictions on commercial and industrial units have been removed. Rooftop Solar installations will grow exponentially in 2022 as the demand in commercial and industrial are increasing every year. Following the safeguard, duty ended in July 2021 and duty-free window is left for just three months, we expect rooftop installations to

grow in that period as rooftop developers have to procure and do the maximum installations before BCD, to gain more profit from the rooftop project, as 40 percent duty on the foreign module is quite high for the rooftop installations as projects are of smaller size. Also, the government is allowing the movement of renewable goods and the continuation of project constructions even the restrictions are imposed in a few parts of the country.

Annual Solar Rooftop Installations in India (2015-2021)

Before uncertainty over policy was there so the installations were slow, but now there is a clear policy at least for net-metering, which gave the bump to Solar rooftop installations, also the government has taken various steps to increase public participation in Rooftop Solar Scheme such as Launch of phase II of the rooftop Solar program with CFA for the residential sector and incentives in slabs for the Power distribution companies (DISCOMs) for the achievement of additional capacity over and above the installed capacity of the previous year, Development of online portals and aggregation of demand relating to rooftop Solar projects, Preparation of model MoU, PPA, and Capex

FEBRUARY 2022

Agreement for expeditious implementation of RTS projects in the Government Sector. Electricity (Rights of Consumers) Rules, 2020 has been issued for net-metering up to 500 kW or up to the electrical sanctioned load, whichever is lower. SPIN-an online platform developed for expediting project approval, report submission, and monitoring the progress of implementation of RTS projects. Facilitation of concessional loans from the World Bank and Asian Development Bank (ADB). Renewable energy included under priority sector lending Innovative Business models for rooftop Solar Information and public awareness activities through print and electronic media. www.EQMagPro.com

India installed around 684 MW of rooftop projects in the

For Group Housing Societies/Residential Welfare quarter fourth of 2021. But the good day will over soon after Associations (GHS/RWA), CFA is limited to 20% for Q1 2022 (31st March 2022) when the government-imposed RTS plants for supply of power to common facilities BCD on Solar module and cell, the installations will again fall up to a maximum of 500 kW capacity. The governas rooftop installations always go for higher wattage import- ment of India approved Rooftop Solar Programme ed panels from Chinese companies such as Mono Perc, Bifa- Phase-II to achieve 40 GW of RTS (Rooftop System) cial, when this panels will cost 40 percent extra, the installers capacity in the country by 2022. The program enviswill suffer a huge loss as the cost of projects for rooftop Solar ages the installation of 4,000 MW of RTS capacity in become very competitive from the past few quarters and go- the residential sector by providing CFA and incentiving on the reverse direction will be very difficult for the in- izing distribution companies for achievement in tostallers to increase the cost and execute the projects. tal RTS capacity addition above year-wise baseline For the installation of Rooftop Solar systems (RTS) on resi- capacity. Against the target of 4 GW RTS capacity dential buildings, MNRE is implementing the Rooftop Solar for the residential sector, over 3,300 MW capacity Programme Phase-II in the country. Under this Programme, has been allocated to various discoms/state impleCFA up to 40% of the benchmark cost is provided for RTS menting agencies based on the demand received projects up to 3 kW capacity and up to 20% for RTS system from them, of which over 1,132 MW capacity has capacity beyond 3 kW and up to 10 kW for individual house- been reported installed as per the Lok Sabha Q&A update. holds.

INSTALLED POWER CAPACITY FROM DIFFERENT SOURCES Renewable capacity additions continue to increase at a rapid pace in India, accounting for approximately 26.7 percent of India’s power capacity mix at the end of December 2021. India’s total installed power capacity stood at over 393 GW at the end of the calendar year 2021 from all the sources,

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with renewables accounting for 104.87 GW making up 26.7 percent, compared to cumulative renewable energy installations of 101.53 GW at the end of September 2021, which represented a 3.30 percent growth quarter-overquarter.

FEBRUARY 2022

Solar power accounted for approximately 49.34 GW of installations, which is 12.5 percent of the total installed power capacity. The share of Solar power in the installation mix grew from 11.9 percent in September 2021 to 12.5 percent in December 2021. Among the renewables (excluding Hydro), Solar accounted for approximately 47.1 percent of the installed capacity. Wind accounted for 40.08 GW of the total installed power capacity and nearly 10.2 percent of the overall power capacity mix and 38.2 percent among the renewable mix capacity as of December 2021. As the restrictions

Small hydro had installed over 4.8 GW and represented 1.2 percent of the overall power mix capacity at the end of December 2021. The share of nuclear remains constant during the fourth quarter of 2021 which represents 1.7 percent of the total power mix installed capacity by December 2021, with no capacity added during the full calendar year of 2021. Nuclear power is not only clean and environmentally friendly, but it is also a source of base load power available 24x7 like

across the country have been uplifted, the overall installed capacity in the country has been increased by 1.2 percent which is 4.54 GW quarter over quarter from Q4 2021 over Q3 2021. Among the renewable, Solar Power shown the highest growth quarter-over-quarter by 6.6 percent, while Wind Power has grown by 0.5 percent, and BioPower by 0.3 percent. Hydro power’s cumulative installations stood at 46.512 GW, making up 11.8 percent of India’s total installed capacity.

has increased from 34,162 million Units in the calendar year 2014 to 43,918 million units in the calendar year 2021 for nuclear power. Thermal power (which includes coal, lignite, gas, and diesel) is still the significant source of energy in the country - with its cumulative installations reaching 235 GW, representing 59.8 percent of the total installed power capacity. Coal accounted for a dominant share of the mix, with 51.7 percent of the total installed power capacity, followed by natural gas at 6.3 percent, lignite at 1.7 percent,

thermal power. As the other segment in the pow-

and diesel with a 0.13 percent share. However, thermal power’s share in the overall power mix is gradually declin-

er mix were adding their capacities which results in a decrease in the share of nuclear in the overall power mix. The actual commercial generation

ing as the government is shutting down old thermal plants, especially coal, and moving towards the non-conventional source of energy.

FEBRUARY 2022

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But in the recent past, the country suffers outages across the country due to a shortage of coal in the thermal power coal unit, it’s a long way when renewable power

A total of 79 projects of hydro schemes with an aggregate capacity of more than 30,000 MW (comprising 11 Pumped Storage Schemes of 8,700 MW) have been envisaged for capacity addition during the period 2019-2020 to 2029-30. This includes 12,663.5 MW of Hydro power projects under construction for providing benefits during this period. The union minister pointed out that out of the above 79 projects, 5 hydro schemes with a capacity of 1,023 MW have

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generation will be able to dominate the country's electricity demand as mainstream renewable energy is intermittent.

since been commissioned. The existing nuclear power capacity of 6,780 MW is going to be increased to 22,480 MW by the year 2031 on progressive completion of projects under construction and accorded sanction. More nuclear power plants are also planned for the future. Similarly, a total capacity of 31,665 MW of coal-based capacity is in the various stages of construction.

FEBRUARY 2022

DISCOM DUES TO POWER GENERATOR There was an overdue amount that needs to be paid by discoms at the start of December 2021 were ₹96,634 crore ($12.95 billion), which was ₹3,436 crore ($460.67 million) higher than September 2021 and ₹3,479 crore ($466.437 million) higher by October 2021. In December, the total amount billed to discoms was ₹18,771 crore ($2.516 billion).

FEBRUARY 2022

Discom paid around ₹56,633 crore ($7.48 billion) in Q4 2021 for both current and overdue. Discom revenue losses are reducing slowly, which was quite high in the past years due to a reduction in theft, fewer transmission & distribution losses, also the introduction of smart meters. But the dues are increasing on regular basis over distribution companies which need to be paid to the generators.

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StepsweretakenbytheGovernmenttoresolvetheissue

(ii) In addition, the Ministry of Power has issued an order (no.

of long-pending dues of Discoms to renewable power

23/22/2019-R&R dated 28.06.2019) which mandates open-

generators: (i) Payment security mechanism has been in-

ing of Letter of Credit (LC) by DISCOMS as Payment Security Mechanism. (iii) The State Governments have been requested to pay out-

built in the Standard Bidding Guidelines issued by MNRE for renewable energy projects. Under this, provision of payment security fund has been made and all bids through Renewable Energy Implementing Agencies (REIA) such as SECI, NTPC, and NHPC have a provision of Tripartite Agreement (TPA) to ensure timely payment.

standing dues to the renewable energy developers. (iv) The Government of India has facilitated providing loans to various State DISCOMs through Indian Renewable Energy Development Agency Ltd. (IREDA), Power Finance Corporation (PFC), and Rural Electrification Corporation Ltd. (REC) to clear outstanding dues to renewable energy developers.

RE GENERATION IN INDIA Total renewable energy generations in December 2021 reach 12,754.4 million units, there is a decline of RE generators by 12% over September 2021, where the RE generations

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were 14,488.86 million units, also there is a decrease of over 30% quarter over quarter from Q3 2021 to Q4 2021 where the generation from RE was 50.363 billion units in Q3 2021 to 35.16 billion units in Q4 2021.

FEBRUARY 2022

Solar Power generation is having the largest percentage in terms of the generation behind Wind Power with 5,858.03 million units and contributes 45.93 percent of the total renewable generation share in December 2021, Wind Power with 28.05 percent market by generating 3,577.01 million units in December 2021. Other sources such as Bagasse, small Hydro, and Biomass

contribute 17.12 percent, 4.94 percent, and 2.32 percent respectively. Solar and Wind Power together contributed 73.97 percent of the total renewable energy generation in December 2021. There is a growth of around 23 percent in the total renewable generation from December 2020 to December 2021. While there is an exponential growth of 123.36 percent in Solar power generation from December 2020, Wind Power has increased by 93.74 percent in the generation in the same period.

SOLAR POWER GENERATION BY STATE Rajasthan overtake Karnataka, shows the largest Solar power generation among the top Solar generating states in December 2021, while Haryana shows a tremendous growth rate of 514 percent as the state has installed a huge amount of Solar power projects in the calendar year 2021. Name of State/UT Rajasthan Karnataka Andhra Pradesh Tamil Nadu Gujarat Telangana Madhya Pradesh Maharashtra Uttar Pradesh Punjab Haryana Orissa Kerala Chhattisgarh Uttarakhand

Solar Power Generation (MU) December’2020 797.88 1060.68 555.55 403.76 408.32 585.99 322.23 224.35 128.05 81.52 9.34 44.27 24.99 33.28 25.63

Solar Power Generation (MU) December’2021 1294.77 1102.02 631.85 596.74 594.8 538.87 293.65 222.97 202.55 108.59 57.37 44.96 40.3 37.22 24.63

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Growth (%) 62% 4% 14% 48% 46% -8% -9% -1% 58% 33% 514% 2% 61% 12% -4% Source: CEA

Only, Rajasthan and Karnataka have crossed over 1,000 million units of Solar power generation as the states have installed 9.9 GW and 7.4 GW of grid-connected Solar PV installation as of December 2021 as per Lok Sabha updates. Even though Gujarat has installed more than Tamil Nadu and Andhra Pradesh but by generation, these two states have more generations in terms of million units which shows the quality of generations and the irradiation level in southern states, as per the December 2021 data, Tamil Nadu has installed more Solar capacity but has generated less than Andhra Pradesh, but in December the state has gained its position.

FEBRUARY 2022

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FEBRUARY 2022

ELECTRICITY ENERGY DEMAND & DEFICIT BY STATE

ANNUAL GROWTH IN POWER GENERATION

The overall generation (including generation from grid-connected renewable sources) in the country has been increased from 1,110.458 BU (billion units) during 2014-15 to 1,173.603 BU during the year 2015-16, 1,241.689 BU during 2016-17, 1,308.146 BU during 2017-18, 1,376.095 BU during 2018-19, 1,389.121 BU during 2019-20 and 1,381.855 BU during 2020-21 as per Ministry of Power updates. The performance of category wise generation during the year 2020-21 was as follows: Thermal Reduced by 0.98% Bhutan Import Increased by 51.27% Hydro Increased by 3.51% Renewables Increased by 6.44% Nuclear Increased by 7.41% Overall Growth rate recorded by 0.52% Year Growth in Fossil Fuel Generation 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22*

6.6 7.3 4.2 10.8 7.5 5.3 4.3 3.4 -2.7 -1 10.08

Growth (%) Renewable Non-Fossil Fuel (RE Total Generation Generation + Nuclear) (Including Hydro) Generation 17.5 18.3 9.14 -5.9 -4.78 4.46 10 9.05 5.23 1.3 1.91 8.84 -1.8 0.97 5.69 8.9 7.68 5.8 11.1 9.55 5.35 14.3 12.09 5.19 12.7 13.99 0.95 2.1 0.86 -0.52 6 5.5 9.4

Source: Ministry of Power (*Provisional (up to Dec 2021)) EQ iSearch 34

FEBRUARY 2022

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STATE-WISE SOLAR ENERGY GENERATION

Solar energy production has increased from 39.27 BU (bil-

this region had shown a growth of 118 percent,

lion units) in 2018-19 to 60.40 BU in 2020-21 registering an increase of 53.8 percent to 51.25 BU in 2021-22 (till Decem-

which is quite positive for the country as a whole. In 2021-22 (till December), Northern Region has gained market share in terms of power generation compared with other regions of the country which shows 29%, while Western Region has 20%, but the maximum shares still come from Southern region which has more than 49% of the total Solar power generation in the country in 2021-22 (till December). Eastern Region is still the neglected region in the country where the share of power generation was just 1.3%.

ber). There is a tremendous growth from a different region of the country from 2018-19 to 2020-21, such as North Eastern Region shown a growth of 83 percent, followed Northern Region by 74 percent, Western, Southern, and Eastern Region individually all by 55 percent in the same period. North Eastern Region has been improved in recent years as the growth of Solar installations is increasing year after year due to the imposition of Solar RPO in those states which was not there earlier, from 2019-20 to 2020-21,

STATE-WISE AND YEAR-WISE SOLAR ENERGY GENERATION INSTALLED (IN MU) Name of State/UT

2018-19

2019-20

2020-21

2021-22*

Chandigarh

13.51

13.33

10.16

11.22

Delhi

10.83

136.3

189.99

165.72

Haryana

72.47

125.14

162.95

392.77

11.66

36.52

33.78

J&K

9.42

1.71

Ladakh

Punjab

1492.9

1358.22

1356.48

1140.01

Rajasthan

5109.35

7776.56

10384.24

10979.64

Uttar Pradesh

1235.08

1447.05

1856.19

2083.29

Uttarakhand

318.29

341.51

329.64

221.67

Northern Region

8252.45

11209.77

14335.59

15029.81

Chhattisgarh

335.15

326.42

370.8

307.01

Gujarat

2410.32

3631.86

4633.81

4692.18

Madhya Pradesh

2982.29

3496.23

4202.03

2848.54

Maharashtra

2206.62

2372.68

3089.46

2303.14

Dadra and Nagar Haveli

5.76

6.19

11.96

34.1

Daman & Diu

18.94

21.83

29.52

26.29

Goa

0.82

1.46

2.19

Western Region

7959.08

9856.02

12339.03

10213.45

Andhra Pradesh

4965.96

5855.11

6956.1

5644.64

Telangana

6312.26

6263.92

6351.04

4679.7

Karnataka

7575.83

11221.2

13238.86

9431.84

Kerala

110.84

143.59

275.44

344.13

Tamil Nadu

3554.5

4946.63

6115.48

5188.64

Lakshadweep

1.11

0.66

0.45

0.26

Puducherry

2.58

4.15

6.39

9.18

Southern Region

22523.09

28435.26

32943.75

25298.39

Andaman Nicobar

13.86

11.6

24.82

15.61

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FEBRUARY 2022

Bihar

179.89

160.16

160.63

118.77

Jharkhand

19.15

17.47

17.16

13.1

Orissa

263.03

362.29

476.26

425.25

Sikkim

West Bengal

40.65

64.29

73.89

70.57

Eastern Region

516.58

615.81

752.78

643.3

Arunachal Pradesh

1.2

1.6

1.54

1.27

Assam

6.67

6.14

13.37

52.84

Manipur

1.88

2.63

7.71

4.93

Meghalaya

0.47

Mizoram

0.12

0.44

2.45

1.42

Nagaland

Tripura

7.14

3.43

6.04

4.47

North Eastern Region

14.24

31.11

65.4

All India Total

39268.2

50131.1

60402.25

51250.34

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Source: Lok Sabha Update, CEA (*till dec)

SOLAR PV INSTALLATION BY STATE India installed around 48 GW of Solar PV installations as of December 2021 as per the Lok Sabha update. Rajasthan, Karnataka, Gujarat, Tamil Nadu, Andhra Pradesh, and Telangana were the top state who have installed grid-connected utility-scale Solar projects of above 4 GW and

FEBRUARY 2022

cover 76.7 percent of the total installed capacity. The top ten states installed a cumulative capacity of around 45 GW (both utility-scale & rooftop) and cover a market share of more than 93.6 percent by the end of December 2021.

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By the end of Q4 2021, India installed over 6.25 GW

restrictions have opened up and the demand has surged

of grid-connected Solar rooftop installations and

which pushes the distributed Solar installations. Rooftop

had a market share of 13 percent, while the rest 87

C&I consumers are very aggressive towards Solar installations as they are aware of the upcoming BCD and the project cost will rise further which increases their payback period For the utility-scale developers, construction is at an all-time high, developers are very aggressive to execute their projects and commissioned before the due date. So-

percent comes from the utility-scale project. Top Solar rooftop installations states were Gujarat, Maharashtra followed by Rajasthan. Recently, Rajasthan installed more rooftop projects which push the state to one of the top Solar rooftop installation destinations in the country. After the restriction has been uplifted across the country, many of the utility-scale projects which were not installed in 2020 and the first half of 2021, commissioning in the second half of 2021. For rooftop Solar installation, many big corporate and business units which were closed due to lockdown

lar PV installations under the utility-scale segment were around 2.28 GW in the last quarter of CY 2021. Rajasthan overtook Karnataka to become the largest Solar installer across the country with an installed capacity of 9.98 GW, followed by Karnataka with 7.49 GW. The installations in Rajasthan are picking up as there are GWs of under-construction projects which are commissioning in the second half of 2021.

INDIA ACHIEVES 100 GW MILESTONE The total installed renewable energy capacity in India, excluding large hydro, has crossed the mile-stone of 100 GW. Today India stands at 4th position in the world in terms of installed RE capacity, 5th in Solar Power, and 4th in Wind Power in terms of installed capacity. India has set an ambitious target for itself in the area of Renewable Energy, which the Ministry of New and Re-

The country’s installed Renewable Energy capacity stands at 151.39 GW while its nuclear energy-based installed electricity capacity stands at 6.78 GW. The Government is committed to achieving 500 GW of installed electricity capacity from non-fossil fuel sources by the year 2030. The achievement of an installed RE capacity of 100 GW is an important milestone in India’s journey towards its target of 450 GW by 2030.

newable Energy is committed to achieving. India has also enhanced its ambition to install 450 GW of renewable energy capacity by 2030 of that 280 GW comes from Solar. If large hydro is included the installed RE capacity increases to 151.39 GW by the end of the calendar year 2021. India had committed to achieving 40.1% of its installed electricity capacity from non-fossil en-

ICRA estimates the outlook for the capacity addition in the renewable energy sector remains strong with a large project pipeline of over 55 GW and the highly competitive tariffs of-

ergy sources by 2030. The country has achieved this target in November 2021 itself.

ment prospects in the renewable energy sector.

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fered by these projects. The commitment to climate change goals announced by the Prime Minister at the recent COP26 summit, including increasing the non-fossil power capacity to 500 GW and meeting 50% of energy requirement from renewable sources by 2030, further strengthen the invest-

FEBRUARY 2022

SECI MONTHLY PAYMENT

FEBRUARY 2022

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Solar Energy Corporation of India (SECI) paid ₹15.65 billion

SECI is the major power purchaser for Solar in

(~$209.489 million) for Solar and Wind power purchased

the country, and monthly payments to power generators are increasing year on year basis.

in the fourth quarter of 2021 from ₹19.262 billion (~257.839 million) in Q3 2021, there is a decrement of over 19 percent over the previous quarter. The disbursed amount was highest in June followed by July & August. There is a gradual increase in the payment to generators from January 2021 to August 2021 and from September 2021 it started declining. During the calendar year 2021, SECI has made a payment of around ₹64.018 billion ($856.937 Million). The payment of Solar and wind generators will start increasing in 2022, as lots many projects are coming online in the coming quarters.

SECI is in the process of implementing a 100 MW Solar PV project (160 MWp) along with 40 MW/120 MWh BESS at Rajnandgaon, Chhattisgarh, and a 100 MW floating Solar project in Getalsud Reservoir, Ranchi, Jharkhand. The projects are supported by a special loan from World Bank as part of its “Innovation in Solar Power and Hybrid Technologies project”. The $200 million loans were offered by the World bank.

SOLAR ENERGY ELECTRICITY POTENTIAL AND ACHIEVEMENTS BY STATE State Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur

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Solar Energy Electricity Potential by State in India Potential Capacity (MW) Installed Capacity (MW) 38440 4292.37 8650 5.61 13760 59.15 11200 169.48 18270 308.83 2050 209.66 880 18.37 35770 6206.34 4560 593.2 33840 45.04 111050 24.49 18180 53.56 24700 7496.8 6110 306.3 61660 2592.15 64320 2506.81 10630 6.36

Potential (%) 89% 100% 100% 98% 98% 90% 98% 83% 87% 100% 100% 100% 70% 95% 96% 96% 100%

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Meghalaya Mizoram Nagaland Odisha Others Punjab Rajasthan Sikkim Tamil Nadu Telangana Tripura Uttar Pradesh Uttarakhand West Bengal Total

5860 9090 7290 25780 790 2810 142310 4940 17670 20410 2080 22830 16800 6260 748990

0.19 1.53 1 405.22 119.24 1051.09 9979.72 2.76 4757.76 4154.42 9.41 1990.28 540.49 151 48058.63

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100% 100% 100% 98% 85% 63% 93% 100% 73% 80% 100% 91% 97% 98% 94%

Source: India Energy Dashboards, Niti Aayog

Of all the renewable energy, Solar power has the potential of around 750 GW across the country. India has tapped just 6 percent of the actual potentials for the Solar PV project, as per the available data. Punjab achieved the maximum potential capacity of 35 percent, out of the total potential of Solar power followed by Tamil Nadu with 26 percent. JNNSM target of Solar power by 2022 is 100 GW of this around 49 GW has already been achieved by the fourth quarter of the calendar year 2021. After the signing of the Paris Agreement, Solar installa-

schemes such as Ultra Mega Solar Power Park, PMKUSUM, Grid Connected Solar Rooftop Programme has been launched to promote Solar PV, the results of which Solar became the highest growing sector among the power. The share of Solar PV installed capacity among the renewable was around 12.5 percent. The installed capacity was around 5 GW by 2015, now India has installed around 49 GW as per the CEA update. India is set to achieve 450 GW re-

tions in the country has increased exponentially, many

280 GW comes from Solar.

newable energy installed capacity by 2030 of that

TRANSMISSION AND DISTRIBUTION LOSSES Transmission and Distribution losses incurred in electrical networks due to reasons including heat losses and billing inefficiencies. The cost of power generation depends on various factors including the type of generation, capital cost, finance costs, cost of fuel, operation and maintenance (O&M) costs, and employees & administrative costs. As per the information available in the “Report on Performance of Power Utilities" published by Power Finance Corporation (PFC), the cost of power to distribution utilities increased from ₹4.21 ($0.05642)/KWh in the year 2017-18 to ₹4.73

FEBRUARY 2022

($0.06339)/ KWh in the year 2019-20, in which time, the Aggregate Technical and Commercial Losses (AT&C) reduced from 21.50% to 20.93%. The Government is promoting Research and Development (R&D) for the Indian Power Sector through Central Power Research Institute (CPRI) and various R&D schemes. The Government has recently approved the proposal for the continuation of R&D schemes in the Power Sector to be implemented through CPRI with an outlay of ₹112 crore ($15.056 million).

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A Standing Committee on R&D (SCRD) in the pow-

& Energy Conservation, have also been constituted to

er sector has been constituted under the chairman-

tor and engages them in the research schemes. Tech-

assist the SCRD in evaluating R&D proposals and monitoring of the R&D projects till successful completion. The committees have representation from Academia, Industry, Utilities, and Policy making bodies. Further, Research projects from eminent Institutions across India like IIT Kharagpur, IIT Kanpur, IIT Madras, IIT Bombay, NIT Meghalaya, NIT Silchar, CMET Thris-

nical Committees in specific fields of power, namely, Thermal Generation, Hydro Generation, Transmission and Grid, Distribution

sur, CPRI, have been supported on various thrust areas about Generation, Transmission, Distribution, Clean Energy, and Renewables.

ship of the chairperson, Central Electricity Authority to identify and prioritize important strategic areas of R&D, which are to be implemented under “R&D” schemes. The SCRD identifies leading Researchers and Domain Experts in diverse areas of the power sec-

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FEBRUARY 2022

As on 31st October 2021, the status of national grid: Transmission line 4,50,552 (cKM), Transformation capacity 10,71,506 (MVA), Inter-regional capacity 1,12,250 (MW). The country has one of the largest synchronous

grids in the world and has achieved One Nation-One Grid-One Frequency. In the next 3 years, it is targeted to add about 17,500 cKM of transmission lines per year and 80,000 MVA of transformation capacity per year.

ELECTRICITY CONSUMPTIONS IN INDIA Electricity consumptions per capita in India have increased significantly by 91 percent, from 631 kWh in 2005-06 to 1,208 kWh in 2019-20. There is a yearover-year growth of 2.3 percent

FEBRUARY 2022

in electricity consumption from 2018-2019 to 2019-20. The per capita electricity consumption in China by 2020 was around 5,312 kWh, while the United States has more than 12,000 kWh.

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As per the CEA monthly report, the installed power capacity from all sources in India has increased from 333.5 GW by end of 2017 to 349.3 GW by 2018 to 375.32 GW by 2020, to 393.38 GW by 2021. The installed capacity in the country is increasing every year, but the demand growth is more than the growth of the installation. As per the recent statement from the Union Power Minister of India, the power demand has been increasing from August 2021 onwards. In August 2021, the power consumption was 124 billion units (BU) whereas the consumption in August 2019 (before the COVID period) was 106 BU an increase of almost 1820 percent. The increasing trend is persisting – the demand on 04th Oct 2021 was 1,74,000 MW, 15,000 MW more than on a corresponding day in the previous year. But the country should maintain its balance between conventional and non-conventional sources of electricity.

Non-conventional energy is based on nature such as Hydro, Wind, and Solar, depending fully on renewable energy may put the economy of the country at risk, such as in the recent time there has been a severe outage in China, where rules imposed by the government as it attempts to make the country carbon neutral by 2060 have seen coal production slow, even the country still relies on coal for more than half of its power requirement. Due to high cost, electricity production through coal is reducing year after year but due to sudden demand, the government was not able to balance and the result was a shortage of power. To reduce dependency on the conventional source of electricity, the only option is to start an incentives program to increase the storage in the Indian renewable market, which will help the country to balance the grid.

MARKET SHARE PV MODULE

Solar Panels Imports into India in Q4 of CY 2021 were Jinko Solar with a market share of 28 percent, followed around $1.514 billion. The top supplier of Solar pan- by LONGi Solar at second position with 23 percent. The els to India are giving tough competition to the other third and fourth major suppliers were JA Solar and Trina suppliers and captured maximum market share. Solar with a market share of 17 percent and 7 percent.

“*does not include Make in India product”

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FEBRUARY 2022

“*does not include Make in India product”

PV INVERTER

Out of the total inverter imports in India, String Inverter import value is around $41.55 million. Huawei was the top supplier with a market share of 31 percent followed

by Solis and Growatt with 16 percent and 9 percent respectively. Polycab and Sofarsolar have an individual market share of around 7 percent and 6 percent.

“*does not include Make in India product”

FEBRUARY 2022

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Out of the total Solar inverter imports in India, the central inverter imports into India excluding “Made in India” products were worth around $8.5 million in the calendar year of Q4 2021. The total value of combined String and Central Inverter imports into India excluding

“Make in India” products in Q4 2021 were around $41.5 Million. The top supplier in this category was Huawei and Sungrow with a market share of 26 percent and 18 Percent respectively. Solis and Growatt were the third and fourth top suppliers in this category with 13 percent and 8 Percent followed by Polycab with a 6 percent market share.

“*does not include Make in India product”

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FEBRUARY 2022

ELECTRICITY MARKET The entities showing aggressiveness in buying

Power Market trades the highest monthly volume of 9,538

Renewable Energy Certificates (REC) to meet their renewable purchase obligation (RPO), there is a growth of 7.04 percent quarter over quarter from Q3 2021 to Q4 2021. In August 2021,

MU in the quarter third of the calendar year 2021. In Q4 2021 of the calendar year, the electricity market achieved 27,677 MU volume resulting in 37 percent YoY growth across market segments.

The green term-ahead market traded the highest volume of 726 MU during July 2021 in the third quarter, For the fourth quarter of the calendar year 2021, the market registered a cumulative trade of 27,677 MU. The market has seen a considerable increase in the participant base as more and more utilities and C&I consumers participate in the market to meet their energy and RPO requirements in an integrated, flexible, and competitive manner.

FEBRUARY 2022

According to the power demand data published by the National Load Dispatch Center, the national peak demand in September 2021 saw a 2 percent YoY increase, with the highest ever peak demand at 180.7 GW, while energy consumption at 114.5 BU was flat during the month. For the quarter-over-quarter growth from Q3 2021 to Q4 2021, there was a decline of 48.7 percent for the green term-ahead market, 44.1 percent for the Term-ahead market, 9 percent for the Real-time Electricity market, and 3.4 percent in the Dayahead electricity market.

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SOLAR PV MODULE PROCURER IN Q4 2021 In the fourth quarter of CY 2021, Adani Green, ReNew Power, Azure Power, Avaada Energy, Ayana Renewable, followed by Tata Power Solar were the top procurer of Solar PV modules in India, which show that they have a projects pipeline that is going to be commissioned in the second half of the financial year 2021-22.

“*does not include Make in India product”

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FEBRUARY 2022

As per the availability inputs, Solar project developers

are huge under-development projects which had not

have imported around $1.514 billion worth of Solar PV been commissioned, also there is a duty-free window modules in the fourth quarter of 2021. The reason for this for six months before the imposition of basic customs aggressiveness in the shipments shows that there

duty (BCD) from starting of April 2022.

“*does not include Make in India product”

Even though the price of the Solar PV module is high, developers are importing the panels and executing the project. India has commissioned around 11 GW (utility, rooftop, off-grid) of Solar PV in the twelve months of 2021. Due to a duty-free window, and target to commission the projects before BCD, the import activity in Q4 2021 has increased by more than 95 percent compared to Q3 2021.

FEBRUARY 2022

Even though India’s domestic module manufacturing capacity has 12-15 GW of Solar PV module production capacity, on that around 10.7 GW of Solar PV manufacturing capacity has been registered under ALMM list-l, manufacturers are still dependent on Chinese suppliers for the raw materials such as cell, glass, & so on.

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IMPORTED SOLAR PV MODULE AVERAGE SELLING PRICE The price of Solar PV modules was quite unpredictable and the reason for fluctuation in the average selling price (ASP) of Solar modules was due to shortage of raw materials such as polysilicon, glass prices are increasing in China along with other raw materials for Solar panel, high freight charges, also currency fluctuations. As per the available data from the import and export tracker, India

The price of the modules will not come down, as the prices of the raw materials are sky rocketing these days and LONGi Solar (largest Mono wafer supplier) has announced that they are increasing the price of the Mono wafer. Even there is news about the recent outbreaks of Covid-19 again in the country, and the government has started shutting down the industrial units, which will again create havoc in the market and the shortage will continue and it will increase the panel prices.

imported more than 98 percent of the Solar PV modules from China in the fourth and its previous quarter of 2021, which shows how Indian manufacturers are highly dependent on Chinese raw materials suppliers. There is an increment of around 40 percent in the module ASP from Jan 2021 to December 2021 in Poly and around 30 percent in Mono Perc as pre the import tracker of the Solar PV module.

Many module manufacturers have already started negotiating with the developers to postpone their shipments by Q1 2022, as the price of the panels is way high. Module manufacturers will not be able to supply the modules at the agreed prices with the developers as the scenario has been changed from that time, either they have to defer the shipments or cancel the deals. And, BCD is knocking on the door, after a couple of months, the price of the module will be straightforward increases to 40 percent.

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FEBRUARY 2022

In quarter over quarter comparison, from Q3 2021 to Q4 2021, there is an increment of 6% on Poly ASP and 11% on Mono PERC module ASP. From Q4 2021 over Q1 2021, there is a rise of 31% on Poly and 23% on Mono Perc ASP of the module.

RECENT SOLAR AUCTION Winner Hindustan Power Greenko Group ReNew Power Power Mech JSW Energy NTPC

Capacity (MW) Tariff (₹/kWh) 250 3.01 1001 3.18 600 3.19 550 3.30 99 3.45 500 2.17

Sprng Energy

200

2.17

UPC Renewables

2.17

Metka EGN Singapore Pte

2.17

Renew Power

600

2.18

ACME Solar

375

2.18

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FEBRUARY 2022

Solar PV Auctions in Q4 2021 2.5 GW of round-the-clock (RTC) SECI 2.5 GW of round-the-clock (RTC) SECI 2.5 GW of round-the-clock (RTC) SECI 2.5 GW of round-the-clock (RTC) SECI 2.5 GW of round-the-clock (RTC) SECI SECI auction for 1,785 MW of Solar power projects (Tranche IV) in Rajasthan. SECI auction for 1,785 MW of Solar power projects (Tranche IV) in Rajasthan. SECI auction for 1,785 MW of Solar power projects (Tranche IV) in Rajasthan. SECI auction for 1,785 MW of Solar power projects (Tranche IV) in Rajasthan. SECI auction for 1,785 MW of Solar power projects (Tranche IV) in Rajasthan. SECI auction for 1,785 MW of Solar power projects (Tranche IV) in Rajasthan. Source: Auction Tracker

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RECENT SOLAR TENDER Issuer SECI Hindustan Salts Limited Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) Maharashtra State Electricity Distribution (MSEDCL) SECI SECI NTPC Renewable Energy Limited (NTPC REL) Hindustan Salts Limited Rewa Ultra Mega Solar Limited Punjab State Power Corporation Limited (PSPCL) Maharashtra State Electricity Distribution (MSEDCL) NTPC Renewable Energy Limited (NTPC REL) Singareni Collieries Company Limited Punjab Energy Development Agency (PEDA) NTPC

Capacity Project (MW) Type 10,100 Utility 4,000 Utility

Solar PV Tenders in Q4 2021 SECI issued tenders for 10.1 GW of hybrid/ RTC/ Peak power capacity, of which 5.35 GW has already been awarded. In addition, a bid for 500 MW capacity of wind-Solar hybrid project issued by Maharashtra DISCOM Expression of Interest for Development of Ultra Mega Solar PV Project at Sambhar Salts Ltd

2,810 Utility

RVUNL has invited bids to provide consultancy services to develop a 2 GW of Solar Park and install 810 MW of Solar projects at Ramsar Chota Village in Bikaner (Rajasthan).

1,250

For Procurement of 1.25 GW Solar projects to be developed in Maharashtra through Competitive Bidding Process

Utility

1,200 Wind-Solar RfS for Setting up of 1200 MW ISTS-Connected Wind-Solar Hybrid Power projects in India (Tranche-V) Hybrid 1,200 Wind Selection of Wind Developers for Setting up of 1.2 GW ISTS-Wind Projects under Tariff-Based Competitive Bidding (TrancheXII) 1,200 Utility NTPC REL invites online bids from eligible bidders on Single Stage Two Envelope for EPC Package with Land of ISTS Solar PV Projects (up to 1.2 GW) in Karnataka. 1,000 Utility

Central Electronics Limited Kerala State Electricity Board

950

Utility

Expression of Interest for Development of Solar Pv Project At Kharagdhah, Surendra Nagar, Gujarat

500 Utility

RfP for to provide Transaction Advisory Services for 950 MW Ground Mounted Solar PV Park with BESS at Chhatarpur, Madhya Pradesh PSPCL floats two tenders to procure 500 MW Solar power (250 MW in Punjab and another 250 MW anywhere in India)

444 Utility/ Rooftop

For Procurement of Cumulative 444 MW Solar Power from Decentralised Solar Projects of minimum 0.5 MW to maximum 2 MW capacity under Component-A of PM Kusum Scheme to be developed Maharashtra

325

Conducting Geotechnical Investigation for 105 MW (U6) and 220 MW (U7) Shajapur Solar Pv Projects of NTPC REL Shajapur, Madhya Pradesh

Utility

250

SCCL Floats Tender for PMC Services for 250MWp capacity Floating Solar Power Plant at Lower Manair Dam, Karimnagar

220 Utility

PEDA has invited bids for 220 MW of grid-connected Solar power projects of 1 MW, 1.5 MW, or 2 MW capacity.

200 Utility 147 100

Appointment of Consultant (including the hiring of DOE) for Registration, Validation & Verification exercise for first 05 years for 200 MW capacity of 250 MW Anantpur Solar Power Project (A.P.) under GCC (Global Carbon Council) program Utility Design, Engg., Supply, Constrn., Erection, Testing, Commissioning, and O&M of Decentralised Solar Power Gen. System ranging from 2MW to 10MW AC for a cumulative capacity of 147MW in 11 lots at various locations in Maharashtra. UtilSelection of Solar Power developer for setting up of Grid-connected floating Solar plant on 8 reservoirs owned by KSEBL and 2 ity Floating reservoirs in Kerala Water Authority based on tariff-based bids from eligible Floating Solar Plant developers / Companies on Solar Design, BOOM for 25 years.

NTPC Vidyut Vyapar Nigam Limited (NVVN) Central Electronic Limited (CEL)

100

Utility

EPC Package with Land for Development of Grid Connected Solar Pv Projects in Maharashtra

Utility

Gujarat State Electricity Corporation Limited (GSECL) Maharashtra State Electricity Distribution (MSEDCL) Kerala State Electricity Board UPNEDA

Utility

Rooftop

40 38

Utility/ Rooftop Rooftop

Utility

Design, Engineering, Supply, Construction, Erection, Testing, Commissioning and O&M of Decentralised Solar Power Generating System (SPGS) ranging from 2 MW to 10 MW (AC) for a cumulative capacity of 95 MW (in 7 lots) at various sub-stations/ locations in Maharashtra, India Design, supply, engineering, procurement, and construction of 60 MW grid-connected Solar power projects, ranging from 10 MW to 55 MW, along with the evacuation of power to the GETCO’s 66 kV substation through construction, erection, testing, and commissioning of the 66 KV bay. Empanelment of Vendors for “Design, Supply, Erection, Testing and Commissioning Including Warranty, Comprehensive O&M of Grid-Connected Rooftop Solar Plant of Various Capacities Aggregating to 50 MWp Under Phase-II Of GCRTS Scheme of MNRE being implemented by MSEDCL in Maharashtra (Two-Part Bidding E-Tender) Selection of Renewable Power Generators through tariff-based bidding for setting up of 0.5 MW to 2 MW aggregating to total 40 MW capacity on the land of farmers falling within a radius of 5 KM from the substations of KSEBL Empanelment of vendors for Site Survey, Design, Installation, Supply, Erection, Testing and Commissioning including Warranty and 5 years of Comprehensive Operation and Maintenance of Roof Top Solar PV Power System for Residential Consumers under MNRE GCRT Phase-2 scheme in the state of Uttar Pradesh. Design, engineering, manufacture, supply, erection, and commissioning of a 25 MW grid-connected Solar power project with associated 33 kV evacuation lines in the Dhule district of Maharashtra.

Rooftop

Utility

Maharashtra State Power Generation Company Jharkhand Bijli Vitran Nigam Limited (JBVNL) SECI

The Jharkhand Bijli Vitran Nigam Limited (JBVNL) has issued a tender to empanel agencies to develop 25 MW of residential rooftop Solar systems under the capital expenditure (CAPEX) model. Intimation of the tender Annulment: Tender for 25 MW (AC) Solar PV Power Plant having 5 years Plant O&M at BCCL, Bhojudih Coal Washery, Purulia District, West Bengal, India

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Source: Tender Tracker

FEBRUARY 2022

QUARTERLY RESULTS JINKO SOLAR

In the third quarter of 2021, shipments were 4,993 MW (4,671 MW for Solar modules, 322 MW for cells and wafers), total shipments down 4 percent sequentially, and down 2.4 percent year over year. Total revenues were RMB8.57 billion (US$1.33 billion), up 8.1 percent sequentially and down 2.3 percent year over year. The sequential increase was mainly attributable to an increase in the shipment of Solar modules with higher selling prices compared with cells and wafers. While, net income was RMB194.2 million (US$30.1 million), up 193.2 percent sequentially and up 27.3 times year over year. Over 7 GW of new cell capacity put into production in the second quarter reached full production in the third quarter, reducing cell production cost in the third quarter by more than 10% compared with the second quarter. Jinko’s N-type monocrystalline silicon Solar cell reached a maximum conversion efficiency of 25.4 percent, setting a world record yet again. Based on continuous leading R&D capabilities and two years of mass production experience, expanding N-type cell production capacity. The company is preparing for approximately 16 GW of N-type cell production capacity to be operational in the

shareholders was $292.3 million in Q3 2021, compared to $232.1 million in Q2 2021. Daqo's third-quarter polysilicon ASP was $27.55/ kg, a significant sequential improvement of more than 30 percent from $20.81/kg in the second quarter. The end-market demand continues to be strong even under today’s high-price module environment, and this has further raised polysilicon market prices to the current level of $33-$35/kg, production cost increased to 8.4% quarter-overquarter primarily due to the increase in silicon powder’s cost. During the first three quarters of 2021, the company generated $653 million of cash flow from operations. Also, repaid all the bank loans in the third quarter and reduced the debt to asset ratio to 18.2 percent. At the end of the third quarter, the company had $661 million in cash and cash equivalents, $414 million in short-term investments which are low-risk financial products, and $353.3 million in bank notes receivable which will mature in the next three to six months. This total liquidity of $1.4 billion is a strong foundation to support the expan-

first quarter of 2022. 7 GW monocrystalline silicon wafer plant in Vietnam will commence production in the first quarter of 2022. After that, Jinko will have approximately 7 GW of integrated mono wafer-cell-module manufac-

sion projects and plans to reward the investors. The construction of the company Phase 4B capac-

turing capacity overseas.

tion by the end of 2021 and ramp-up to full capac-

DAQO NEW ENERGY

ity by the end of the first quarter of 2022. The com-

In the third quarter of 2021, Daqo produced 21,684 metric tons (MT) of polysilicon compared to 21,102 MT in Q2 2021. The Polysilicon average total production cost was $6.84/kg in Q3 2021, compared to $6.31/kg in Q2 2021, while Polysilicon's average selling price (ASP) was $27.55/ kg in Q3 2021, compared to $20.81/kg in Q2 2021. Revenue was $585.8 million in Q3 2021. Polysilicon's average cash cost was $5.96/kg in Q3 2021, compared to $5.41/kg in Q2 2021. Net income attributable to Daqo New Energy Corp.

FEBRUARY 2022

ity expansion project is going smoothly according to schedule. And, expect to complete the construc-

pany produced 62,970 MT of polysilicon and sold approximately 63,714 MT of polysilicon in the first three quarters of 2021, representing the full utilization level of the company’s production facilities. For the full year of 2021, the company’s guidance on annual polysilicon production volume is at the level of approximately 83,000 to 85,000 MT, inclusive of the impact of the company’s annual facility maintenance.

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FIRST SOLAR

In the third quarter of 2021, First Solar produced 2 GWp of modules, and in October increased the top production bin to 465 watts. Net sales for the third quarter were $584 million, a decrease of $46 million from the prior quarter, primarily due to lower systems segment revenue, which was partially offset by an increase in module segment revenue. Increasing record year-todate bookings to 10.5 GWp. From a financial standpoint, while extended transit times for ocean freight impacted the third-quarter results, the company is reiterating its 2021 EPS guidance. The company also started construction and purchased equipment for the next-generation factories in Ohio and India. CANADIAN SOLAR

Solar module shipments of 3.9 GW in the third quarter of 2021, in line with guidance of 3.8 GW to 4 GW. Revenue increased 34% YoY to $1.23 billion, in line with guidance of $1.2 billion to $1.4 billion. The company has 2.9 GWh of battery storage projects under construction and 21 GWh of the total storage development pipeline. Net foreign exchange loss in the third quarter of 2021 was $14 million, compared to a net loss of $3 million in the second quarter of 2021 and a net loss of $13 million in the third quarter of 2020. The net foreign exchange loss was mainly driven by the strengthening of the U.S. Dollar against currencies such as the Brazilian Real. Canadian Solar is building over 6.2 GWp of Solar power plants across six continents. The company has built Solar project development with over 24 GWp total pipeline, as well as in energy storage project development with over 21 GWh of an aggregate pipeline. As of Sep-

CSI Solar (Canadian Solar Inc.) shipped 3.9 GW of modules to nearly 70 countries in the third quarter of 2021. The top five markets ranked by shipments were China, the U.S., Brazil, Germany, and Thailand. For the fourth quarter of 2021, the company expects total module shipments to be in the range of 3.7 GW to 3.9 GW, including approximately 250 MW of module shipments to the Company's projects. Total revenues are expected to be in the range of $1.5 billion to $1.6 billion. The gross margin is expected to be between 14% and 16%.

FUNDING AND M&A UPDATES CEAT Bought 26% Stake in Cleanwin Energy Tyre maker CEAT Ltd has completed the acquisition of a 26 percent stake in Cleanwin Energy, for which it had signed a pact with Yellowstone Clean Energy LLP in September 2021. Cleanwin Energy owns, operates, and maintains a captive Wind power generating plant in Maharashtra. The RPG Group company plans to move up to 50 percent renewable power in the next three years. Cleanwin will provide 5 MW wind power to CEAT plants in Bhandup and Nashik. IREDA Sets New Record for Highest Loan Disbursement to Vector Green Energy Indian Renewable Energy Development Agency (IREDA) has disbursed a loan amount of ₹1,100 Crore ($146.979 million) to Vector Green Energy, setting a record for the highest disbursement to a single Group in one day. It was also the highest single-day transaction for Vector Green Energy. The debt has been raised by Vector Green under a unique financing structure with attractive terms and the structuring has resulted in en-

tember 30, 2021, the company's total project pipeline

hancement of rating from A to AA category. With this, Vector Green’s entire operating portfolio is now rated

was 23.8 GWp, including 1.6 GWp under construction, 5.0 GWp of backlog, and 17.2 GWp of the earlier-stage pipeline.

either AAA or AA on a non-recourse basis, a unique feat amongst independent renewable power producers in India.

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FEBRUARY 2022

Cleantech Solar Secures Senior Secured Loan Facility with NIIF IFL for Projects in India Cleantech Solar announced the financial close of a ₹2 billion ($26.73 million) senior secured loan facility with NIIF IFL for the company’s portfolio of open access projects in India. This loan facility will refinance the company’s existing loans on operating open access projects in India and help optimize the overall capital structure and funding costs for the portfolio. With this transaction, Cleantech Solar es-

Kwh Bikes Raises Seed Funding from Multiple Investors Start-up electric scooter maker kWh Bikes raised $2 million in a seed round led by private market online investment platform, Let’s Venture along with individuals, including Paytm founder and CEO. The round also saw the participation of Bet-

structure Debt fund set up by the National Investment and Infrastructure Fund (NIIF).

ter Capital and Cloud Capital besides individuals such as Info Edge India Ltd Managing Director and CEO Hitesh Oberoi, Unacademy Co-founder and CEO Gaurav Munjal, and Kotak Mahindra Bank Joint Managing Director Dipak Gupta, among oth-

Reliance Buys REC Solar for $771 Million India’s Reliance Industries Ltd announced the acquisition of REC Solar Holdings for an enterprise value of $771 million from China National Bluestar (Group) as it seeks to become net carbon zero by 2035. The purchase of the Nor-

ers. With this, the start-up is planning to take their prototype to production and expand R&D across various EV components like battery, BMS (battery management system), VCU (vehicle control unit), and motor.

wegian Solar panel maker by the conglomerate’s Reliance New Energy Solar follows the June 2021 announcement by the parent – operator of the world’s biggest refining com-

TPG To Invest $1 Billion in Tata Motors Subsidiary for Electric Vehicles Tata Motors and TPG Rise Climate have ventured into a contract where, TPG Rise Climate and its co-investor, ADG, are going to invest ₹7,500 crore, (~$1 billion) in one of the subsidiaries of Tata Mo-

tablishes a new strategic partnership with NIIF IFL – Infra-

plex – that it would invest $10.1 billion in clean energy over three years. The group aims to build four “Giga factories” to produce Solar cells and modules, energy storage batteries, fuel cells, and green hydrogen. Reliance New Energy Solar to Acquire 40% Stake in Sterling and Wilson Solar Reliance New Energy Solar executed definitive agreements with Shapoorji Pallonji and Company, Khurshed Daruvala, and Sterling and Wilson Solar (SWSL) to acquire a 40% stake post-money in SWSL. With 11-plus GW of Solar turnkey projects executed globally and more than 5 decades of engineering experience. In December 2021, CCI approves the acquisition of a shareholding in Sterling and Wilson Renewable Energy. The proposed combination envisages the acquisition of 40% of the equity share capital of Sterling and Wilson Renewable Energy Limited (SWREL) by Reliance New Energy Solar Limited. However, acquisition can go up to 51.07% of the equity share capital of SWREL in the eventuality of full acceptance of the open offer. 54

FEBRUARY 2022

tors which would soon be consolidated. This new subsidiary would be focused on EVs. The company will make the best use of all existing investments and potentialities of Tata Motors. It will transform the future investments into electric vehicles, BEV platforms, battery technologies, and at the same time, it would focus on advanced mechanisms of automotive technologies. Oorja Secures Seed Funding to Scale Up Pay-PerUse Farming Services Oorja has completed its US$ 1 million Seed funding round with equity investment from Schneider Electric Energy Access Asia (SEEAA) and grant funding from Water & Energy for Food Grand Challenge (WE4F) and the DOEN Foundation.

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This capital will be used for agri-energy infrastructure projects and to expand operations and the team in northern India. The funding will help Oorja scale its operations in existing and new markets in India over the next 18 months. The company will expand its customer base in rural areas of Uttar Pradesh and Bihar. Oorja will deploy 121 Solar projects concentrated in 22 Clusters impacting up to 6,000 low-income households by December 2022. Technique Solaire Group Acquired Solar PV Project From Jakson Group Technique Solaire has acquired 34 MW of utilityscale Solar PV project from Jakson Group. This project has a track record of generating 49,500 MWh of green energy per annum. This project is located in Uttar Pradesh’s Mahoba district which got commissioned in 2017. With this acquisition, Technique Solaire has a total of 68 MWp of operational PV power projects in India. The company aims to reach 1 GWp of Solar PV plants capacity by 2024. REC Limited Closes SOFR Linked Term Loan with Sumitomo Mitsui Banking Corporation REC Limited has successfully raised a $75 million, 5-year Secured Overnight Financing Rate (SOFR) linked Syndicated Term Loan on October 7, 2021, with Sumitomo Mitsui Banking Corporation (SMBC), Singapore Branch appointed as the sole Mandated Lead Arranger and Bookrunner. Along with the loan, REC has also entered into an interest rate swap referencing SOFR to hedge the interest rate risk on this facility, which is the first such deal by any Corporate in India. The proceeds from this facility shall be utilized to fund infrastructure power sector projects as permitted under the ECB guidelines of the Reserve Bank of India.

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CDC Invests in India’s First Dedicated Climate Change Investment Fund CDC Group, the UK’s development finance institution and impact investor, has invested $70 million into the Green Growth Equity Fund (GGEF), India’s first dedicated climate change fund. The fund is managed by EverSource Capital, a joint venture between Everstone, and Lightsource BP, BP’s renewable energy platform. With CDC’s investment, GGEF will finance the development of between six and eight ‘green infrastructure’ companies in India. GGEF is different from many funds in that it adopts a ‘platform model’. This means that it sets up a company from scratch in a sector of interest and then grows the platform by making acquisitions of other companies in the sector. Adani Transmission Raises $700 Million for Under-Construction Projects Adani Transmission has raised $700 million to finance its under-construction power transmission asset portfolio. This will fully finance the under-construction transmission projects in four special purpose vehicles (SPVs) in Gujarat and Maharashtra to establish a green corridor and strengthen the overall grid. According to the agreement, eight international banks such as DBS Bank Ltd., Intesa Sanpaolo S.p.A., Mizuho Bank, Ltd., MUFG Bank, Ltd., Siemens Bank GmbH, Société Générale, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation, committed for the facility. Battery Smart Raises $7 Million in Pre-Series A-Funding Round Battery Smart has secured $7 million in a Pre-Series A round of funding. The company has been rapidly growing and establishing itself in the battery swapping scene since its inception in 2020. With 1,200 active vehicles on Battery Smart’s platform that perform 5,000 swaps daily, this funding is welcomed for the company. The added capital will help strengthen battery assignment technology, scale

FEBRUARY 2022

operations to service 10,000 electric vehicles, and expand to three new regions in the coming months. KKR Backed Virescent Renewable Energy Trust Ties-Up for Debt Financing Virescent Renewable Energy Trust raised ₹1000 crore ($134.356 million) in its debut issuance across 3, 5, and 7-year tranches. This transaction marks the first-ever issuance by a Renewable Energy InvIT in India thereby establishing a new yield curve. The Company will primarily use the proceeds to refinance existing debt at the SPV level as well as fund future acquisitions. The NCD structure benefits from a comprehensive covenant package thereby ensuring the highest domestic rating of AAA by CRISIL and India Ratings. VRET has also tied up an additional ₹1,000 crore ($134.356 million) of long-term financing from L&T Finance. This ensures complete debt tie-up for VRETs immediate nearterm acquisition pipeline. Further, VRET has availed a working capital facility of ₹150 crore ($20.15 million) from Tata Capital to enhance its liquidity position and meet its credit rating requirements. Germany Announces Clean Energy Commitments to India Germany announced new development commitments to the tune of over Euro 1.2 billion (~₹10,025 crore) to India to support its fight against climate change and assist in projects in related areas such as clean energy. German Ambassador Walter Lindner said support for the development and the fight against climate change are among key focus areas of relations between India and its country. EV Maker Simple Energy Gets $21 Million Funding Simple Energy announced the completion of a $21 million pre-series investment round. The company had aimed to raise $15 million in fundraising, but immense investor interest resulted in Simple Energy raising a total of $21 million. This new fund will be utilized to increase the manufacturing capacity, accelerate new product development, and expand experience centres, consequently bolstering the company's expansion plans.

FEBRUARY 2022

DFC Announces Approval of Debt Financing for First Solar Manufacturing Facility in India U.S. International Development Finance Corporation (DFC) announced its approval of up to $500 million of debt financing for First Solar, Inc., subject to negotiations of definitive agreements. The DFC financing will support the company's previously announced vertically integrated PV Solar module manufacturing facility in Tamil Nadu, with a projected annual capacity of 3.3 GW. This investment will promote DFC’s commitment to diversifying supply chains. DFC is thrilled to be in a position to support First Solar’s new venture in India, which will boost Solar panel manufacturing capacity for a key ally and help mobilize the industry to take up better standards that align with U.S. values, DFC’s Acting Chief Executive Officer stated. Keppel Corporation Consortium with Keppel Capital to Acquire Majority Stake in Cleantech Renewable Assets Keppel Corporation Limited (Keppel Corporation), Keppel Asia Infrastructure Fund LP (KAIF), and a co-investor of KAIF, through Cloud Alpha Pte Ltd, are acquiring a 51% equity interest in Cleantech Renewable Assets Pte. Ltd. for up to $150 million. The remaining 49% of the equity interest in Cleantech is held by its existing shareholder, Shell Eastern Petroleum (Pte) Ltd. (Shell), which will continue to support its future growth in the region. The investment in Cleantech marks KAIF’s first renewable energy investment and will form its beachhead into the burgeoning Solar energy sector in the Asia Pacific. The fund, together with its co-investment vehicles, also has a 30% interest in the Gimi floating liquefied natural gas (FLNG) facility, which is currently undergoing conversion at Keppel Offshore & Marine. Completion of the transaction is subject to and conditional upon

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certain customary conditions including regulatory and other approvals. The transaction is expected to close in 1Q 2022. Ayana Renewable Closes Deal to Buy 250 MW Solar Energy Plant from ACME National Investment and Infrastructure Fund (NIIF)-owned Ayana Renewable Power announced the closure of a deal to divest a 100% equity stake in 250 MW Solar PV projects, developed and operated from ACME Solar Holdings Private Limited (ACME) to Ayana. Ayana Renewable has acquired the Solar project located in Jodhpur, Rajasthan, as part of its strategic mission to increase renewable energy production in the country. The Rajasthanbased plant is connected to the inter-state transmission system and supplies power to Maharashtra State Electricity Distribution Company under a long-term Power Purchase Agreement. Cipla Acquires Stake in Clean Max Auriga Power LLP Cipla Limited announced that it has acquired up to 33% of a partnership interest in Clean Max Auriga Power LLP. This agreement is in line with the Company’s commitment to enhance the share of renewable power sources in its operation and to comply with the regulatory requirement for being a captive user under electricity laws. Clean Max Auriga Power LLP is a special purpose vehicle engaged in the business of production, supply, and distribution of Solar and wind or other renewable energy generation plants. This acquisition is in line with steady efforts towards progressing on goals that have been set out to achieve in the ESG space.

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Danish Investment Fund Invests in CleanMax The Danish Investment Fund for Developing Countries (IFU) is investing $34 million in CleanMax. The investment in CleanMax is in line with the ambition to support the green transition in developing countries and emerging markets. Going forward, financing will contribute to further reducing the carbon footprint from Indian companies and assist India in reaching its target of 450 GW of renewable energy by 2030. By investing $34 million in CleanMax, IFU will contribute to the green transition and make it easier for Indian companies to reduce their carbon footprint, stated IFU CEO. REC Limited Avails ODA Loan from Kfw Development Bank REC Limited has entered into an agreement with KfW Development Bank for availing ODA term loan of $169.5 million under Indo-German Bilateral Partnership following the approval granted by the Department of Economic Affairs, Ministry of Finance, Government of India. Proceeds of ODA loan will be deployed for part financing of innovative Solar PV Technology-based generation Projects in India at competitive interest rates. This is the fifth credit line signed between REC Limited and KfW for the financing of Power Sector Projects and the third credit line for the financing of Renewable Energy Projects. REC is continuously re-shaping its policies to align with market requirements and developing financial solutions and mechanisms that create scalable and effective ways of channelizing both Private and Public investments in the Renewable Energy space.

FEBRUARY 2022

POLICY & REGULATORY UPDATES Revised Policy for Biomass Utilisation for Power Generation Ministry of Power has changed its Biomass policy. As per the modification in the policy, all coal-based thermal power plants of power generations utilities with bowl mill, shall on annual basis mandatorily use 5 percent blend of biomass pellets made, primarily, of agricultural residue along with coal with effect from one year of the date of issue of this guideline. The obligation shall increase to 7 percent (other than Ball & Tube mill, the use of biomass remains 5 percent) with effect from two years after the date of issue of this order and thereafter. Further, it mentioned in the policy that the minimum contract period for procurement of biomass pellets by generating utilities shall be for 7 years to avoid any delay in awarding contracts by generating companies every year and also to build up a long-term supply chain.

Rules for Timely Recovery of Costs Due to Change in Law Ministry of Power notifies rules for the sustainability of the electricity sector and promotion of clean energy to meet India’s commitment towards Climate Change. The investors and other stakeholders in the power sector had been concerned about the timely recovery of the cost due to changes in law, curtailment of renewable power, and other related matters. Timely recovery of the costs due to change in the law is very important as the investment in the power sector largely depends upon timely payments. At present the pass-through under change of law takes time. This impacts the viability of the sector and the developers get financially stressed. The Rules would help in creating an investment-friendly environment in the country. Power Ministry Revises Terms of Reference of NCT to FastTrack ISTS Process Ministry of Power has revised the terms of reference of the National Committee on Transmission (NCT) to fast-track the Inter-State Transmission System planning and ap-

PSERC Allow a Reduction in the RPO Targets by 3.5% The Commission had allowed a reduction in the RPO targets by 3.5% (both for Solar and non-Solar combined) or the FY 2020-21 after carrying forward of shortfall of FY 2019-20 to FY 2020-21 given the pandemic. PSPCL (Punjab State Power Corporation Limited) has considered a reduction of RPO targets

proval process. NCT is mandated to propose an expansion of ISTS to the Ministry of Power for approval after assess-

to the tune of 1.8% for non-Solar and 1.7% for Solar. The Government of Punjab has imposed restric-

tified by the MNRE, need to be connected to ISTS, so that

tions on the movement of the public and opening of offices, other establishments, etc. to contain the spread of the COVID pandemic. PSPCL is committed to providing uninterrupted and round-the-clock

erence of NCT will help in timely developing the required

supply to all consumers including health care institutions across the state. The spread of pandemic and consequential lockdowns is wreaking havoc upon the financial health of PSPCL.

FEBRUARY 2022

ing the trend of growth in demand and generation in various regions, constraints, if any, in the inter-State, inter-region transfer of power, which are likely to arise in the near term/medium term. For enabling the growth of Renewable Energy capacity, areas that have high Solar/Wind energy potential, as idenRE capacity can come up there. The revision in terms of refISTS system for having 450 GW of RE by 2030. terminal benefits of the personnel transferred to the newly formed company. Transfer of assets, liabilities, personnel, etc to the newly formed company will be done as per the Dadra and Nagar Haveli and Daman and Diu Electricity (Reorganization and Reforms) Transfer Scheme, 2020.

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ISTS Waiver till June 2025 for Solar and Wind The Ministry of Power has declared that inter-state trans-

capacity i.e., ₹10,000 ($134.022)/KWp subject to capping of 20% cost of these vehicles. Demand in-

mission system charges will be levied on RE projects, including solar, wind, pumped hydro storage, and also with battery energy storage systems (BESS) commissioned af-

centive is restricted to vehicles with prices less than the threshold value which is ₹1.5 Lakh ($0.002 mil-

ter June 30, 2025. 25% of the applicable ISTS charges will be imposed on projects which come online between July 1, 2025, and June 30, 2026. The charges will be gradually increased by 25% annually, and 100% of ISTS charges will be levied from July 1, 2028. The waiver would be applicable for 25 years for solar, wind, and pumped hydro storage projects, while BESS projects would get a waiver for 12 years or a period notified by the government from commissioning the project. MNRE Allows Renewable, Thermal Power Bundling in Existing PPAs India has allowed its thermal generation companies to supply renewable power to consumers under existing Power Purchase Agreements (PPAs) and set up renewable energy generation capacity by themselves or through developers via open bids notified MNRE, as it issued revised guidelines for the power generation sector. As the cost of renewable energy is less than the cost of thermal energy, the gains from the bundling of renewable energy with thermal will be shared between the generator and distri-

lion) for e-2W, ₹5 lakhs ($0.0067 million) for e-3W, and ₹15 Lakh ($0.02 million) for e-4W. In addition, the creation of charging infrastructure is also supported to address range anxiety among users of electric vehicles. Production Linked Incentive Scheme for Manufacturing of Advance Chemistry Cell The Government on 12th May 2021 approved a Production Linked Incentive (PLI) Scheme for manufacturing of Advance Chemistry Cell (ACC) in the country. The total outlay of the scheme is ₹18,100 crore (~2.404 billion) for 5 years. The scheme envisages establishing a competitive ACC battery manufacturing set up in the country (50 GWh). Additionally, 5 GWh of niche ACC technologies is also covered under the Scheme. The scheme proposes a production-linked subsidy based on applicable subsidy per kWh and the percentage of value addition achieved on actual sales made by the manu-

bution companies/other procurers on a 50:50 basis.

facturers who set up production units. This scheme will facilitate the reduction of import dependence of ACC batteries and will reduce the prices of bat-

Centre Take Various Steps for Promotion of EVs Manufac-

teries used in electric vehicles.

turing

Energy Storage Technology with Off-Grid and De-

Under Phase-II of the FAME-India Scheme, incentives are being provided to the consumers on purchase of electric vehicles, used for public transport or those registered for commercial purposes in e-3W, e-4W (including Strong Hy-

centralized Solar PV Application Programme

brid) segment however, privately owned registered e-2W are also be covered under the scheme. The demand incen-

universities/laboratories and industries. A National Centre of Photovoltaic and Research and Education (NCPRE) at IIT Bombay has developed Lithium-ion

tive to these electrical vehicles is linked to battery

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Research & development in the field of renewable energy including energy storage technology in the country is carried out at various research institutes/

FEBRUARY 2022

and Sodium-ion batteries. Off-grid and Decentral-

requirement. MNRE has set it at 2% of the estimated

ized Solar PV Applications Programme provided fi-

project cost. In addition, instructions to set the performance bank guarantee at increased rates for upcoming

nancial support, primarily to public service institutions, for the installation of battery-backed off-grid Solar power plants/packs. Till December 2021, the 216.9 MWp capacity of these plants have been installed under the Programme. Bank Guarantee Increased by MNRE for Future RE Tenders For the upcoming renewable energy tenders, MNRE has reinstated the earnest money deposit (EMD)

renewable energy tender, and has instructed the implementing agencies that performance bank guarantees for upcoming tenders are to be set at 4% of the estimated project costs (where the procurer specifies the site) and 5% (where the generator chooses the site). Additionally, it had removed the EMD provision and permitted bid security declarations in future tenders. A performance bank guarantee and an EMD will now be required.

IREDA VOYAGE IN RENEWABLE SECTOR

Additional equity infusion of ₹1,500 crore ($201.03 million) by the Government of India will enable IREDA: To lend an additional ₹12,000 crore ($1.608 billion) approximately to the RE sector, thus facilitating the lion), Wind Energy with ₹6,017.49 crore ($806.475 million), debt requirement of RE of additional capacity of apSmall Hydro with ₹2,900.82 crore ($388.77 million), Short- proximately 3.5-4 MW Term Loan with ₹7,696.72 crore ($1.03 billion), Biomass & To enhance its net worth which will help it in addiCogen with ₹1,516.87 crore ($203.29 million) & Other (Mfg., tional RE financing, thus contributing better to the WTE, EEC) ₹1,282.42 crore ($171.87 million). Government of India targets for RE The Cabinet Committee on Economic Affairs, chaired by To improve the capital-to-risk weighted assets the Hon’ble Prime Minister, approved the equity infusion ratio (CRAR) to facilitate its lending and borrowing of ₹1,500 crore ($201.03 million) IREDA. operations.

IREDA dashboard of loan portfolio show, Solar Energy contributed the maximum percentage of the total renewable energy financed across the loan portfolio, followed by Wind Energy. As of September 2021, the IREDA loan portfolio includes Solar Energy with ₹9,442.16 crore ($1.265 bil-

FEBRUARY 2022

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IREDA signed a Memorandum of Understand-

IREDA will assist THDCIL in developing an action plan to ing (MoU) with THDC India Ltd (THDCIL). Under create and acquire Renewable Energy projects for the next 5 the MoU, IREDA will undertake Techno-Financial years. IREDA will also extend its techno-commercial expertise due diligence of Renewable Energy and Energy to THDCIL for Environmental & Social (E&S) due diligence of Efficiency & Conservation projects for THDCIL. RE projects as per the internationally accepted E&S standards.

FUNDS ALLOCATION IN SOLAR The details of funds released for Solar programs during the last three years and the current year are as under:

Funds Released for Solar Programmes (as of Oct 2021) Year Release (₹Crore) 2018-19 2524.65 2019-20 1955.67 2020-21 1355.71 2021-22 1425.16 EQ iSearch

Source: Lok Sabha Update

SOLAR PARKS IN INDIA Funds under the scheme are released based on the achievement of specified milestones. Four out of the five parks sanctioned in Jharkhand were sanctioned in October 2021. No funds have been released, so far, for these Solar parks because they have not reached the qualifying milestone. Damodar Valley Corporation has planned to set up the Lugu-Pahar Pump Storage project with 1,500 MW capacity (approximate) on Bokaro River, near Lugu Village in Gomia Tehsil, District Bokaro, Jharkhand. The Project envisages the construction of the Upper Dam across Kairo Jharna Nala with an underground Power House, the downstream of Upper Dam and a Lower Dam across the Bokaro River.

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Anantapur district will soon get a 300 MW Solar Park at Ramagiri to be set up by the SECI for which 70% of the land has been acquired and the preparation of the Detailed Project Report (DPR) has also begun. The Prime Minister also laid the foundation stone of the 600 MW Ultra mega Solar Power Park at Garautha in Jhansi in November 2021. It is being constructed at a cost of over ₹3,000 crore ($404.877 Million) and will help provide the dual benefits of cheaper electricity and grid stability. State-wise funds released under Solar Park Scheme are given below.

FEBRUARY 2022

State-Wise Details of Funds Released Under Solar Park Scheme State Actual CFA Disbursed (₹/Lakhs) Andhra Pradesh 59080.34 Rajasthan 53559.49 Karnataka 35194.55 Madhya Pradesh 21265.99 Gujarat 8911.35 Uttar Pradesh 3875.95 Kerala 882 Maharashtra 867.08 Mizoram 58 Tamil Nadu 25 West Bengal 25 Arunachal Pradesh 19.65 Chhattisgarh 15 Manipur 10 Nagaland 10 Uttarakhand 8.25 Meghalaya 3.07 Total 183810.72 EQ iSearch

The Ministry of New and Renewable Energy (MNRE) is implementing a scheme for setting up Solar Parks and Ultra Mega Solar power projects targeting over 40,000 MW of Solar power projects. The Solar parks offer a location for the development of Solar power projects that is well characterized, with proper infrastructure and access to amenities, and where the risk of the projects can be minimized. Solar Parks also facilitate developers by reducing the number of required approvals.

FEBRUARY 2022

Source: Lok Sabha Update

Under the Solar Park Scheme ₹20 Lakh ($0.0268 million) per MW or 30% of the project cost including Grid connectivity cost, whichever is lower, being provided for the development of the park. In addition, up to ₹25 lakh ($0.0335 million) per Solar Park is provided for the preparation of Detailed Project Reports (DPRs). The Government has approved 52 Solar parks with an aggregate capacity of 37,921 MW across 14 States for Solar power generation. For the state of Karnataka, Ministry has approved two Solar parks, one in Pavagada for 2,000 MW capacity and another in Kalburgi for 500 MW capacity.

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Solar Park Andhra Pradesh (4200 MW) Ananthapuramu-I Solar Park Kadapa Districts Kurnool Solar Park District Kadapa Solar Park

LIST OF SOLAR PARKS IN INDIA Capacity (MW)

Location

1500

NP Kunta of Anantpuramu & Galiveedu of

1000

Gani and Sakunala Village of Kurnool

1000

Vaddirala, Thalamanchi, Pannampalli, Ramachandrayapalli, Konna Ananthapuram and Dhidium villages in Mylavaram Madal, Kadapa District Talaricheruvu & Aluru Villages, Tadipathri Mandal, Anathapuramu District Ramagiri & Muthuvakuntla Village, Ananthapur District

Ananthapuramu-II Solar Park

500

Solar Wind Hybrid Park Gujarat (14375 MW) Radhnesada Solar Park Dholera Solar Park Ph-I

200 700 1000

Dholera Solar Park Ph-II

4000

NTPC RE Park District GSECL RE Park District GIPCL RE Park Himachal Pradesh (880 MW) Kaza Solar Park

4750

Radhnesada, Vav in Banaskantha District Dholera Special Investment Region (SIR), Taluka- Dholera in Ahmedabad District Dholera Special Investment Region (SIR), Taluka- Dholera in Ahmedabad District Village - Khavda, Bhuj Taluka of Kutch

3325

Village - Khavda, Bhuj Taluka of Kutch

600

Village - Khavda, Bhuj Taluka of Kutch District

880

Poh, Kibber, Hikkim, Hull in Kaza and Loshar in Lahaul & Spiti District

100 20

Getalsud dam in Ranchi District Village - Bada Dhobana in Deogarh District

20 20 20

Village - Jilinga in Palamu District Village - Puregada in Garwha District Village - Bari in Simdega District

Jharkhand (180 MW) Floating Solar Park Deogarh Solar Park Palamu Solar Park Garwha Solar Park Simdega Solar Park Karnataka (2500 MW) Pavagada Solar Park

2000

Kalburgi Solar Park

500

Villages- Valluru, Rayacharlu, Balasamudra, Kyathaganacharlu, Thirumani of Pavagada Taluk, Tumkur District Village Nadisinnuru, Kiranagi & Firozabad of Kalburgi Taluk , Gulbarga (Kalaburagi) District

Kerala (155 MW) Kasargod Solar Park

105

Paivalike, Meenja, Kinanoor, Kraindalam, and Ambalathara villages of Kasargode District

Floating Solar Park

West Kallada, Kerala

Rewa Solar Park

750

Badwar Ramnagar Pahadand Barsaita Desh in Gurh tehsil, Rewa District

Mandsaur Solar Park

250

Runija and Gujjarkhedi villages in Suwasra Tehsil, Mandsaur District

Neemuch Solar Park

500

Badi, Kawai, and Bardwada villages of Singoli Tehsil in Neemuch District

Madhya Pradesh (6000 MW)

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FEBRUARY 2022

Solar Park

Capacity (MW)

Location

Agar Solar Park

550

Susner & Agar tehsil in Agar District

Shajapur Solar Park

450

Moman Badodiya tehsil & South Shajapur tehsil in Shajapur District

Omkareswar Floating Solar Park

600

Omkareshwar Reservoir in Khandwa District

Chhattarpur Solar Park

950

Bijawar panchayat in Chhatarpur District

Morena Solar Park

1400

Morena

Barethi Solar Park

550

Village Barethi, Rajnagar Tehsil in Chhatarpur District

Sai Guru Solar Park

500

Bhamer Village, Taluka-Sakri, in Dhule

Patoda Solar Park

500

Villages Tambarajuri, and Wadzari, Taluka Patoda, in Beed District

Dondaicha Solar Park

250

Villages- Vikhran & Methi, Taluka- Dondaicha, in Dhule District

Bukpi Village, Pherzawl District

Thamar, West Jaintia Hills & Suchen, East Jaintia Hills Districts

Vankal, Khawzal RD Block Chmaphai

Solar Park in Odisha

100

Village-Kadopada, Deogarh District

Solar Park in Odisha

Village-Landeihill, Tehsil Jagannath Prasad, Ganjam District

Floating Solar Park

100

Rengali Reservoir, Angul District

Bhadla-II Solar Park

680

Village-Bhadla, Jodhpur District

Bhadla-III Solar Park

1000

Village-Bhadla, Jodhpur District

Bhadla-IV Solar Park

500

Village-Bhadla, Jodhpur District

Phalodi-Pokaran Solar Park

750

Villages Ugraas, Nagnechinagar & Dandhu, Tehsil Phalodi in Jodhpur District (450 MW) and villages Lavan & Purohitsar,Tehsil Pokaran, Jaisalmer District (300 MW)

Park

421

Fatehgarh & Pokaran, Jaisalmer District

Nokh Solar Park

925

Village-Nokh, Pokaran, Jaisalmer District

Solar Park in UP

440

Orai & kalpi Tehsils of Jalaun, Meja tehsil of Allahabad, Chaanbe tehsil of Mirzapur and Akbarpur tehsil in Kanpur Dehat Districts

Jalaun Solar Park

1200

Village Amroh, Dorhat, Nunai, Lidhora and Tikarya of Tehsil Orai, Jalaun District

Mirzapur Solar Park

100

Village-Sherwa, Chak Lathiya & Jafarkhani of Tehsil- Chunar, Mirzapur District

Parasan Kalpi Solar Park

Village-Parasan, Kalpi Tehsil, Jalaun

Maharashtra (1250 MW)

Manipur (20 MW) Bukpi Solar Park Meghalaya (20 MW) Solar Park in Meghalaya Mizoram (20 MW) Vankal Solar Park Odisha (240 MW)

Rajasthan (4276 MW)

Fatehgarh Phase-1B Solar

Uttar Pradesh (3805 MW)

Lalitpur Solar Park

600

Jharar, Kadesara Kalan, Barama Bihar, Shahpura, Sarkadi, Pawa, Piprai and Gevra- Gundera Villages of Tehsil Talbhaet in Lalitpur District

Jhansi Solar Park

600

Sujanpura, Jalalpura, Jaswantpura, Nadaura, Bararu and Pura Villages of Tehsil Garotha in Jhansi District

Chitrakoot Solar Park

800

Gahur, Katiyadandi, Manka, Chhataini, Kharagdhah Villages of Tehsil Mau in Chitrakoot District

Cumulative Approved Capacity EQ iSearch

37,921 Source: Lok Sabha Update (30th Nov 2021)

FEBRUARY 2022

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SOLAR STREET LIGHTS AND WATER PUMP

The MNRE is implementing PM-KUSUM, with provisions

for financial support for installation of 20 lakh standalone

In the case of North-eastern States including Sikkim, the hilly states of Himachal and Uttarakhand,

Solar water pumps under Component B and Solarization of

Union Territory’s of Jammu and Kashmir, Ladakh,

15 lakh existing grid-connected agriculture pumps includ-

Andaman & Nicobar Island, and Lakshadweep, higher CFA of 50% of benchmark cost or cost dis-

ing through feeder level Solarisation, under Component-C. For these components, the Government of India provides Central Financial Assistance of 30% of the benchmark cost or cost discovered through tender, whichever is lower.

covered through tender, whichever is lower, is being provided. Currently, there is no operational Scheme for the installation of Solar Street lights.

Details of Solar Water Pumps and Solar Street Lights Installed and Funds Released under Solar Off-grid Programme (2016-17 to 2020-21) States

Street Lights (Nos.)

Pumps (Nos.)

Funds Released (₹/Lakhs)

Andhra Pradesh

8648

28267

28060

Arunachal Pradesh

12670

5141

Assam

17641

3914

Bihar

47238

931

563

Chhattisgarh

2057

60430

31148

Gujarat

3000

9213

5625

Haryana

12607

9560

5198

Himachal Pradesh

68442

6907

Jammu & Kashmir

19223

4519

Jharkhand

13464

5051

3015

Karnataka

3000

4716

7020

3288

Madhya Pradesh

5270

23241

20106

Maharashtra

127

11064

5875

21464

4258

Meghalaya

4527

2440

Mizoram

8686

6483

Nagaland

10654

5005

Orissa

12271

8504

4408

Punjab

32690

3832

3415

525

25496

32713

556

3715

2533

2126

Telangana

2458

674

2550

Tripura

5688

4643

Uttar Pradesh

109254

26393

16189

Uttarakhand

12647

2309

West Bengal

7092

605

Andaman & Nicobar

745

2740

397

Kerala

Manipur

Rajasthan Sikkim Tamil Nadu

Chandigarh Lakshadweep Puducherry Others* Total

4621

448546

225246

61829 279760 Source: Lok Sabha

*Others include work done through implementation agencies other than the State Implementation Agencies, such as CPSUs.

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FEBRUARY 2022

RENEWABLE ENERGY CERTIFICATE TRADING In line with regulatory developments as well as the CERC order dated 18th November 2021, IEX resumed trading in the REC market on 24 November 2021 after a gap of almost 16 months. The market traded 2,444.35 MU in terms of total volume. The exchange received a great response with participation from over 800 plus participants who had been

eagerly waiting for the resumption to meet their RPO and voluntary obligation. The Exchange achieved a total of 24.4 lakhs Renewable Energy Certificates trade in November comprising 21.90 lakhs non-solar RECs and 2.53 lakhs Solar REC. A price of ₹2,000 ($26.8864) for Solar REC and ₹1,000 ($13.4432) per REC for the non-Solar RECs was discovered at the exchange platform.

No. of REC Redeemed Month & Year

Opening Balance (A)

REC Issued (B)

Total E=(C+D)

REC Revoked/Deleted (G)

Closing Balance (F=((A+B)E)-G)

Jul, 2020

5908672

530935

100471

6339136

Aug, 2020

6339136

198726

4744

3623895

2909223

Sep, 2020

2909223

544955

207

3453971

Oct, 2020

3453971

740650

1086

4193535

Nov, 2020

4193535

417810

7833

4603512

Dec, 2020

4603512

540794

3171

5141135

Jan, 2021

5141135

260411

2612

5398934

Feb, 2021

5398934

359001

109394

5648541

Mar, 2021

5648541

324035

109141

5863435

Apr, 2021

5863435

330267

66899

6126803

May, 2021

6126803

321455

1206

6447052

Jun, 2021

6447052

169616

63604

6553064

Jul, 2021

6553064

273669

3575

6823158

Aug, 2021

6823158

686264

7509422

Sep, 2021

7509422

644748

65930

8088240

Oct, 2021

8088240

540793

1409

8627624

Nov, 2021

8627624

507247

3517264

15586

3532850

5602021

Dec, 2021

5602021

1006556

2050812

54406

2105218

4503359

76117611

65068653

2921704

67990357

3623895

Total: EQ iSearch

FEBRUARY 2022

RECs RECs Redeemed retained by through RE GeneraPower tors (D) Exchanges (C)

Source: REC Registry of India

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TARIFF COST OF SOLAR ENERGY The cost price per unit of Solar energy purchased by discoms of

Concessional loans from World Bank and Asian

various states from Renewable Energy Implementing Agen-

Development Bank through State Bank of India and Punjab National Bank, for disbursal of loans to industrial and commercial sectors. Soft loan from KfW Germany for development of Green Energy Corridors for evacuation of renewable power. The Reserve Bank of India has included rooftop Solar systems & components of the PM KUSUM Scheme under priority sector lending.

cies is very different for region to region. And, accordingly, the government in consultation with various financing agencies including bilateral & multilateral agencies is making efforts for easy financing of RE projects. This loan will also be an important factor for the tariff rate based on different locations. The World Bank through IREDA is providing a loan facility at concessional rates for the development of Solar Parks.

Cost Price per Unit of Solar Energy Purchased by DISOMs of Various States During Last Three Years State

DISCOM

Capacity (MW)

Tariff (₹/kWh)

PPA/PSA signed by SECI Andhra Pradesh

APPCC

7000

2.49

Bihar

BSPHCL

150

2.51

BSPHCL

300

2.62

BSPHCL

150

2.6

BSPHCL

330

2.72

Chhattisgarh

CSPDCL

300

2.61

Delhi

BRPL

100

2.65

BRPL

250

2.67

BYPL

2.67

BYPL

100

2.68

TPDDL

200

2.68

BRPL

210

2.44

BYPL

2.44

HPPC

400

2.51

HPPC

250

2.61

Madhya Pradesh

MPPMCL

900

2.61

Odisha

GRIDCO

200

2.655

GRIDCO

500

2.61

Puducherry

Electricity Department, Puducherry

2.51

Rajasthan

RUVNL

640

2.55

RUVNL

110

2.56

RUVNL

680

2.57

RUVNL

600

2.07

RUVNL

470

2.08

Telangana

TSPCC

400

2.78

Tamil Nadu

TANGEDCO

500

2.78

TANGEDCO

1000

2.61

Haryana

Uttar Pradesh

UPPCL

150

3.36

Uttarakhand

UPCL

100

2.44

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FEBRUARY 2022

State

DISCOM

Capacity (MW)

Tariff (₹/kWh)

PPA/PSA signed by NTPC Bihar

Bihar DISCOMs

300

2.60

MPPMCL

200

2.63

Puducherry

PED

100

2.63

Chhattisgarh

CSPDCL

190

2.25

Uttar Pradesh

UPPCL

140

3.17

UPPCL

3.02

UPPCL

3.06

UPPCL

3.02

UPPCL

3.02

Telangana DISCOMS

150

2.86

Telangana DISCOMS

300

2.86

Telangana DISCOMS

230

2.69

Telangana DISCOMS

139

2.86

Telangana DISCOMS

161

2.86

Telangana DISCOMs

250

2.86

Telangana DISCOMs

296

2.86

Telangana DISCOMs

2.74

Telangana DISCOMs

2.69

Telangana DISCOMs

2.69

Telangana DISCOMs

735

2.45

KSEBL

2.97

CSPDCL

400

2.55

JKPCL

2.56

JKPCL

600

2.55

MPPMCL

300

2.55

MPPMCL

380

2.55

MPPC

320

2.55

PSPCL

300

2.56

Madhya Pradesh

Telangana

Kerala

PPA/PSA signed by NHPC Chhattisgarh Jammu & Kashmir Madhya Pradesh

Punjab EQ iSearch

Source: Lok Sabha Update

INSTALLED CAPACITY TRENDS The share of Wind Power has decreased by two per-

stalled capacity among Hydro (excluding pumped storage), Wind and Solar. In 2021, Solar Power in-

among the total installed capacity of Hydro, Wind, and Solar Power, on the other hand, the share of Hydro Power (excluding pumped storage) was in the decreasing mode on yearly basis and decreased by 3 percent, but the installed capacity has increased by

stalled capacity constitute 36 percent share

1.34 percent year over year from 2020 to 2021.

cent in 2021 compared to 2020 installation, as it has a market share of 29 percent in 2021, of the total in-

FEBRUARY 2022

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In 2011, the share of Hydro Power as mentioned in the above chart Hydro Power to give a boost to the segment, was 69 percent, which has gradually decreased year over year since and the installations have started to increase 2011. The Ministry of Power is also putting RPO compliance for for Hydro by 1.34 percent from2020 to 2021.

APPROVED LIST OF MODELS AND MANUFACTURERS (ALMM) The Ministry of New & Renewable Energy has issued Approved List of Models and Manufacturers (ALMM) order dated 2nd January 2019. Due to the pandemic, government officials were not able to inspect the for-

Many large Solar PV tenders are mentioning the requirement of ALMM registered panels, but the Indian

eign production unit, even domestic players are facing issues to enlist their capacity. Below are the only Indi-

Solar Market is being dominated by Chinese players who are not able to get their capacity under ALMM to be supplied to this project. As of Q4 2021, around 10,726 MW of manufacturing installed capacity has been en-

an manufacturers who can get their registration under the ALMM list-l by December 2021.

listed with 41 companies, compared to Q3 2021 where 34 companies were listed with 8,872 MW of capacity.

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FEBRUARY 2022

Approved list - I of Solar PV Module Manufacturers as Per the List issued by MNRE Manufacturer

Sr. No.

Enlisted Capacity (MWs / Year)

Location

Country

Mundra Solar PV Ltd.

1100

Tunda, Mundra SEZ, Mundra, Gujarat, India

Vikram Solar Ltd.

970

Falta SEZ, South 24 Parganas, West Bengal, India

India India

Bharat Electronics Ltd.

Jalahalli, Bengaluru, Karnataka, India

India

Emmvee Photovoltaic Power Pvt. Ltd.

500

Bettahalasuru, Bengaluru, Karnataka, India

India

ORB Energy Pvt. Ltd.

Yeshwanthapura, Bengaluru, Karnataka, India

India India

Tata Power Solar Systems Ltd.

300

Electronic City, Bengaluru, Karnataka, India

Swelect Energy Systems Ltd.

140

Dabaspet, Nelamangala, Bengaluru, Karnataka, India

India

RenewSys India Pvt. Ltd.

750

FAB City, Hyderabad, Telangana, India

India

Premier Energies Ltd.

482

Annaram, Medak, Telangana, India

India

Visaka Industries Ltd.

Gajalapuram, Miryalagunda, Nalgonda, Telangana, India

India

Websol Energy System Ltd.

250

Falta SEZ, 24 Parganas (South), West Bengal, India

India

Sova Solar Ltd.

240

Banskopa, Durgapur, West Bengal, India

India

Goldi Solar Pvt. Ltd.

500

Pipodara, Surat, Gujarat, India

India

Australian Premium Solar (India) Pvt. Ltd.

Tajpur, Sabarkantha, Gujarat, India

India India

Solex Energy Ltd

GIDC, Vitthal Udyognagar, Anand, Gujarat, India

Topsun Energy Ltd.

100

Linch, Mehsana, Gujarat, India

India

Waaree Energies Ltd.

1000

Tumb, Umbergaon, Valsad, Gujarat, India

India

Waaree Energies Ltd.

500

Surat SEZ, Diamond Park, Sachin, Surat, Gujarat, India

India

Waaree Renewables Pvt. Ltd.

500

Nandigram, Umbergaon, Valsad, Gujarat, India

India

Icon Solar-En Power Technologies Pvt. Ltd.

125

Dighari, Mandir Hasaud, Arang, Raipur, Chhattisgarh, India

India

PV Power Technologies Pvt. Ltd.

200

Tarapur Textile Park Ltd., Boisar East, Palghar, Maharashtra, India

India India

Saatvik Green Energy Pvt. Ltd.

240

Dubli, Ambala, Haryana, India

Navitas Green Solutions Pvt. Ltd.

100

Hojiwala Industrial Estate, Surat, Gujarat, India

India

Central Electronics Ltd.

Industrial Area, Sahibabad, Uttar Pradesh, India

India

Patanjali Renewable Energy Pvt. Ltd

UPSIDC Industrial Area, Greater Noida, Uttar Pradesh, India

India

Jakson Engineers Ltd.

Ecotech III, Udyog Kendra, Greater Noida, Uttar Pradesh, India

India

Himalayan Solar Pvt. Ltd.

HSIIDC Industrial Estate, Alipur Barwala, Panchkula, Haryana

India

Sun N Sand Exim (India) Pvt. Ltd.

HSIIDC Industrial Estate, Bahadurgarh, DisttJhajjar, Haryana

India

Insolation Energy Pvt. Ltd

100

Khasra No 766/2, Vill-Bagwara, TehAmer Jaipur, Rajasthan

India

Pennar Industries Ltd

Chandpur, Sadasivapet, Sangareddy, Telangana

India India

GreenBrilliance Renewable Energy LLP

GIDC Estate, Waghodia, Vadodara, Gujarat

M/s. Sanelite Solar Pvt. Ltd.

Bhagyalaxmi Industrial Estate, Rakanpur, Gandhinagar, Gujarat

India

M/s. Gautam Solar Pvt. Ltd.

110

Sector-8A IIE, Sidcul Haridwar, Uttrakhand249403, India.

India

M/s. Solarium Green Energy LLP.

At Bhamasra, Ta:Bavla, Dist: Ahmedabad 382240, Gujarat, India

India

Novasys Greenergy Pvt. Ltd

100

Khasra No. 185, Mouza: Mahalgaon, Tehsil: Kamptee, Nagpur-441202, Maharashtra

India

Pahal Solar

100

189, Block No.-71, Olpad Sayan Road, Atodara, Olpad Surat-394540, Gujarat.

India

Pixon Green Energy Pvt. Ltd.

355

R.S. No. 157/1, 158/1, 158/2, 165/1, 166 of Khijadiya Nana, R.S. No. 15/1 of Depaliya, Padadhari, Rajkot Gujarat-360110

India

Alpex Solar Pvt. Ltd.

240

Plot No. I-25 &I-26, UPSIDC, Site-5, Kasna, Greater Noida, Uttar Pradesh-201306

India

Vikram Solar Ltd.

972

B1000A, B1100C, Indospace Industrial Park, Panruti Pvt. Ltd., Survey No-2/A, Sriperumbudur Taluk, Panaiyur Village, Kanchipuram, Tamil Nadu603302, India.

India

Contendre Greenergy Pvt. Ltd.

Unit No: I/6, Rajlakshmi HiTech Industrial Park, Sonale Village, Bhiwandi, Maharashtra

India

Ritika Systems Pvt Ltd.

G-166, Industrial Area, Neemrana - II, Alwar-301705, Rajasthan, India.

India

EQ iSearch

Source: MNRE

FEBRUARY 2022

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The Solar PV module manufacturers from Gujarat got the maximum capacity of approved capacity under the ALMM List-l, having a capacity of 4.73 GW with 15 companies, followed by Karnataka with 5 companies of 1 GW capacity. Telangana got four companies listed with 1.337 GW production capacity, West Bengal got two companies with 1.22 GW. Chhattisgarh, Haryana,

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and Uttarakhand with just a single company listed under ALMM List-l. Tamil Nadu has an upcoming Solar Panel manufacturing unit of 4 GW from Tata Power Solar, the state has announced the inauguration of 1.2 GW of Solar PV Module manufacturing unit of Vikram Solar in 2021. Even, First Solar also announced 3.3 GW of manufacturing units in Tamil Nadu, soon going to be online.

FEBRUARY 2022

SCHEMES AND RELIEF PACKAGES TO PROMOTE LOCAL MANUFACTURING OF SOLAR PANELS (i) Modified Special Incentive Package Scheme (MSIPS) Scheme of Ministry of Electronics & Information Technology: The scheme mainly provides a subsidy for capital expenditure –20 percent for investments in Special Economic Zones (SEZs) and 25 percent in non-SEZs. The Scheme was open to receive applications till 31st December 2018. (ii) Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules: To enhance India’s manufacturing capabilities and exports, on 28th April 2021, the MNRE has issued the Scheme Guidelines for PLI Scheme ‘National Programme on High-Efficiency Solar PV Modules’, with an outlay of ₹4,500 crore ($594.75 million). The Scheme has provisions for supporting the setting up of integrated manufacturing units of high-efficiency Solar PV modules by providing PLI on sales of such Solar PV modules.

MNRE vide its Order No. 283/22/2019-Grid Solar dated 09th September 2021, has inter-alia, prescribed that in public procurement of items in respect of which there is sufficient local capacity and local competition, only Class-I local supplier shall be eligible to bid. Class-I local supplier means a supplier or service provider, whose goods, services, or works offered for procurement, has local content equal to or more than 50 percent. Solar PV modules are one of the products identified as having sufficient local capacity and competition. (iv) Domestic Content Requirement (DCR): Under some of the current schemes of the MNRE, namely CPSU Scheme Phase-II, PM-KUSUM, and Grid-connected Rooftop Solar Programme Phase-II, wherein government subsidy is given, it has been mandated to source Solar PV cells and modules from domestic sources.

(iii) Preference to ‘Make in India’ in Public Procure-

(v) Imposition of Basic Customs Duty on import of Solar PV cells & modules: The Government has announced the imposition of BCD on import of solar PV cells and mod-

ment in Renewable Energy Sector:

ules with effect from 01 April 2022.

FEBRUARY 2022

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(vi) Discontinuation of Customs Duty Concession

Notification No. 1/2011-Customs dated 06.01.2011 thereby

benefits: Ministry of Finance (Department of Rev-

withdrawing the benefit of concessional customs duty on

enue) vide its Gazette Notification No. 7/2021-Cus-

the items imported for initial setting up of the Solar power

toms dated 01 February 2021, has rescinded its earlier projects with effect from 02 February 2021.

STEPS TAKEN BY THE GOVERNMENT TO INCREASING SOLAR ENERGY GENERATION IN THE COUNTRY

Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022. Permitting foreign direct investment (FDI) up to 100 percent under the automatic route. Waiver of ISTS charges for inter-state sale of Solar and Wind power for projects to be commissioned by 30th June 2025. Setting up of Solar parks to provide land and transmission to RE developers on a plug and play basis. Schemes such as PM-KUSUM, Solar Rooftop Phase II, 12,000 MW CPSU Scheme Phase II, etc. Laying new transmission lines and creating new sub-station capacity for evacuation of renewable power under Green Energy Corridor Scheme. Notification of standards for deployment of Solar PV system/devices. Setting up of Project Development Cell for attracting and facilitating investments. Standard Bidding Guidelines for tariff-based competitive bidding for procurement of power from Grid Connected Solar PV and Wind Projects. Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators. Launch of Green Term Ahead Market (GTAM) to facilitate sale/purchase of Renewable Energy including Solar power through exchanges.

TO ARREST THE PRICE HIKE OF ELECTRICITY (i) Government of India announced a Liquidity Infusion Scheme (LIS) through PFC and Rural REC as a part of the Aatmanirbhar Bharat Abhiyan. Under this intervention, REC and PFC are extending special long-term transition loans up to 10 years to discoms. As on 07 December 2021, PFC & REC have disbursed ₹1,03,387 crore ($13.856 billion) to various Power discoms. This has reduced the burden of late payment surcharge (LPS) of discoms. (ii) CERC, in accordance with the directions issued by the Government of India under section 107 of the Electricity Act, 2003, had issued an order to the effect that if any delayed payment by the discoms to the generat-

beyond 45 days from the date of the presentation of the bills falls between 24.03.2020 and 30.06.2020, the concerned distribution companies shall make the payment with LPS at the reduced rate of 12% per annum. (iii) The Electricity (Late Payment Surcharge) Rules, 2021 notified on 22.02.2021 have reduced the rate of late payment surcharge. This will reduce the financial burden of Discoms. (iv) Discoms have also been permitted to exit from the PPA of Central Generating Stations which have completed 25 years. This will reduce the power purchase cost of the Discoms.

ing companies and inter-state transmission licensees

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FEBRUARY 2022

TO PROMOTE RENEWABLE ENERGY I. Permitting FDI up to 100 percent under the auto-

VII. Notification of standards for deployment of Solar

matic route II. Waiver of ISTS charges for inter-state sale of Solar and Wind power for projects to be commissioned by 30th June 2025 III. Laying of new transmission lines and creating new sub-station capacity for evacuation of renew-

photovoltaic system/devices. VIII. Setting up of Project Development Cell for attracting and facilitating investments. IX. Standard Bidding Guidelines for tariff-based com-

able power. IV. Declaration of trajectory for RPO up to the year 2022. V. Setting up of RE parks to provide land and transmission to RE developers on a plug and play basis. VI. Schemes such as PM-KUSUM, Solar Rooftop Phase II, 12,000 MW CPSU Scheme Phase II, etc.

petitive bidding for procurement of power from gridconnected Solar PV and Wind projects. X. Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators. XI. Green Term Ahead Market (GTAM) was launched to facilitate procurement of REpower through power exchange in the country.

SCHEME FOR SOLAR ENERGY DETAILS OF MAJOR SCHEMES FOR PROMOTION OF SOLAR ENERGY a) Rooftop Solar Programme Ph-II

Addition of 4000 MW RTS capacity in Residential Sector through provision of Central Financial Assistance (CFA). In addition, incentives to Discoms for initial 18000 MW RTS capacity addition. "b) Grid connected So- Total size of the scheme 12, 000 lar PV Power Projects by MW. the Government Producers under CPSU scheme." Total size of the scheme 40, "c) Solar Park Scheme 000 MW. for setting up of 50 Solar Parks and Ultra Mega Solar Power Projects targeting over 40,000 MW of solar power projects." d) Pradhan Mantri- Kisan "Component A: Setting up of 10,000 MW of Decentralized Urja Suraksha evam Utthaan Mahabhiyan (PM- Ground/Stilt Mounted Power KUSUM) Plants Component B: Installation of 20.00 Lakh Stand-alone Solar Pumps Component C: Solarisation of 15 Lakh Grid Connected Agriculture Pumps including through feeder level solarisation"

Source: Lok Sabha Update

FEBRUARY 2022

"(i) For Residential Sector - Central Financial Assistance (CFA) of 40% for capacity up to 3 kWp - CFA of 20% for capacity beyond 3 kWp and up to 10 kWp - CFA of 20% for GHS/RWA capacity up to 500 kWp (limited to 10 kWp per house and total upto 500 kWp) (ii) For Discoms incentives up to 10% of project cost of new installations in a year depending upon achievements in capacity addition above baseline." VGF of upto Rs. 55 lakhs/ MW; actual VGF is decided through bidding.

"Upto ₹25 lakh per Solar park for preparation of Detailed Project Report (DPRs). ₹20 Lakh per MW or 30% of the project cost including Grid-connectivity cost, whichever is lower."

"Procurement Based Incentive (PBI) to the DISCOMs @40 paise/kWh or ₹6.60 lakhs/ MW/year, whichever is lower, for buying solar/ other renewable power under this scheme. The PBI is given to the DISCOMs for a period of five years from the Commercial Operation Date of the plant. Therefore, the total PBI that payable to DISCOMs is ₹33 Lakh per MW. CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the standalone solar Agriculture pump is provided. However, in North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar pump is provided. CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component will be provided. However, in North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component is provided." EQ iSearch

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HYDROGEN UPDATES Reliance New Energy Solar and Stiesdal Sign a Cooperation Agreement for Hydrogen Reliance New Energy Solar Limited, a wholly-owned subsidiary of Reliance Industries Limited, and Denmarkbased Stiesdal A/S (Stiesdal) signed a cooperation agreement for technology development and manufacturing of Stiesdal’s HydroGen Electrolyzers in India. The agreement was signed during a state visit of Denmark to India and announced in the presence of the Prime Minister of both countries (India & Denmark). GAIL to Build Green Hydrogen Plant in India State-owned GAIL (India) Ltd will build India's largest green hydrogen plant in the next 12-14 months. The company is looking at building a 10 MW electrolyzer capable of generating 4.5 tonnes of green hydrogen daily. GAIL has already floated a global tender to buy the electrolyzer and is hoping to get delivery in the coming 12-14 months. It will take 12-14 months to put the plant, the company has also finalized 2-3 sites for the unit including one at Vijaipur in Madhya Pradesh, where the company has a gas processing plant. ReNew Power Wants to Set Up Green Hydrogen Production Facility in Madhya Pradesh The company is keen to set up a 50-kiloton green hydrogen production unit in the state said Chairman and Managing Director of ReNew Power, which will be the first project of this capacity in the world. He said hydrogen produced from green energy is useful from point of view of environmental protection. Considering the abundant Solar and Wind energy available in the state, there is ample potential for green hydrogen production in the state. Renew Power is

Ohmium Ships First Hydrogen Electrolyzer Unit to The United States Ohmium International, through its Indian subsidiary, has shipped its first unit of electrolyzer from India to the United States, as a first step towards establishing India as a global hub for green hydrogen generation. The electrolyzer has been manufactured by Ohmium at its Bengaluru plant, India’s first green hydrogen electrolyzer Gigafactory. This was set up to ensure the availability of end-to-end solutions within the country and reduce dependency on imports for this key equipment (electrolyzer). This development comes as a breakthrough for the start-up’s ongoing mission in alignment with the nation’s ‘Make in India’ and net-zero emission commitments. L&T and ReNew Announce Partnership for Green Hydrogen Business in India Larsen & Toubro (L&T), India's leading engineering conglomerate, and ReNew Power India's leading renewable energy company announced a partnership agreement to tap the emerging green hydrogen business in India. Under this agreement, L&T and ReNew will jointly develop, own, execute and operate green hydrogen projects in India. L&T and ReNew Power signed an agreement to tap $2 billion green hydrogen business opportunities in two years in India and the neighbouring countries, quoted by the CEO and MD of L&T.

ready to invest ₹18,000 crore (US$ 2.414 billion) in the proposed project. This will employ about 2,000 people.

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FEBRUARY 2022

EV UPDATES

India’s First Green Hydrogen Microgrid Projects Coming Up at Simhadri NTPC has awarded a project of “Standalone Fuel-Cell based Micro-grid with hydrogen production using electrolyser in NTPC Guest House at Simhadri. It is India’s first Green Hydrogen-based Energy Storage Project. It would be a precursor to large-scale hydrogen energy storage projects and would be useful for studying and deploying multiple microgrids in various off-grid and strategic locations of the country. The hydrogen would be produced using the advanced 240 kW Solid Oxide Electrolyser by taking input power from the nearby floating Solar project. The hydrogen produced during sunshine hours would be stored at high pressure and would be electrified using a 50 kW Solid Oxide Fuel Cell. This unique project configuration is designed inhouse by NTPC. Bloom Energy to Power India’s First Green Hydrogen Microgrid NTPC has awarded the project of ‘Standalone Fuel-Cell based 50 kW Micro-grid Pilot project with hydrogen production using electrolyzer’ to Bloom Energy India at NTPC Simhadri (Andhra Pradesh). This will be India’s first green hydrogen-based energy storage project and one of the world’s largest. The hydrogen would be produced using the advanced 240 kW Solid Oxide Electrolyser by taking input power from the nearby floating Solar project.

FEBRUARY 2022

PFC Forays into Financing Green Energy Projects for Deploying 700 Electric Buses PFC made its foray into financing Green Energy Projects by extending financial assistance of ₹570 crore ($75.89 million) for deploying 700 electric buses under FAME-II initiative to e-mobility platform supported by Government of India and Government of U.K. The initiative will help in providing e-mobility in various cities of Uttar Pradesh viz Meerut, Agra, Lucknow, Kanpur, Varanasi, etc for intra-city operations under the PPP model thus reducing carbon footprint and offering green energy solutions. PFC is all set to play a pivotal role in promoting green and clean energy through EVs. PGCIL Ready to Invest for EV Charging Station Power Grid Corporation of India Limited (PGCIL) is an Indian statutory corporation under the jurisdiction of the Ministry of Power states that the corporation is ready to invest in an electric vehicle charging station. The PGIL board in meeting declared the ₹14.23 crore ($1.89 million) investment, also to create an arm to undertake telecom and digital technology businesses for setting up of electric vehicle charging station in Navi Mumbai under the FAME India Scheme Phase-II. BEST Electric Buses to be Charged with Solar Brihanmumbai Electric Supply and Transportation (BEST) electric bus rides will now be on 100% green energy as BEST switched from coal-based thermal plants to Solar energy for its 386 buses fleet. BEST is procuring power from the grid from those who opted for Solar PV panels. Subsidy of 40% will be availed for rooftop projects in buildings and BEST is catering to 580kWp of Solar capacity with CFA from the government.

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Tata Power Achieves More Than 1000 EV Charging Sta-

which are looking to set up EV-related ventures like

tions Across the Country

service, maintenance, innovation, skill development,

Tata Power has a network of more than 1000 EV charging stations across the country, achieving a major milestone in India’s journey towards green mobility. This network of 1000 public EV charging stations provides EV charging experiences for customers across Offices, Malls, Hotels, Retail Outlets, and places of public access, enabling clean mobility and freedom from range anxiety. In addition, there are close to 10,000 home EV charging points, which

and research & development. Some of the incentives

make EV charging super-convenient for vehicle owners. The Company is planning to have a base of 10,000 Charging Stations as also to enable whole stretches of highways into e-highways across the length and breadth of the country. Greaves Electric Mobility Opens Its Largest EV Production Facility in Tamil Nadu Greaves Electric Mobility, the E-Mobility arm of Greaves Cotton Limited inaugurated its largest EV production facility in Ranipet, Tamil Nadu. The 35-acre plant built to preserve the green terrain surrounding the site is located in the Industrial Centre of Tamil Nadu and will serve as an electric mobility hub for both domestic and export markets. The Plant is part of the ₹700 crore ($93.209 mil-

also include benefits around scrapping, waiver on road tax and registration, swappable battery stations, and more. The Goa government will first 3,000 twowheelers, 50 three-wheelers, and 300 four-wheelers. Ministry of Heavy Industries Supports Electric Vehicles by Way of Demand Incentive Ministry of Heavy Industries( MHI), under Phase-II of FAME India Scheme, supported about 1.65 lakhs Electric Vehicles as of 25th November 2021, by way of demand incentive amounting to about ₹564 crore ($75.09 million). Further, 6,315 electrical buses have been sanctioned to various State/City Transport Undertakings under Phase-II of the Scheme. Ministry has also sanctioned 2,877 Electric Vehicles (EVs) Charging Stations amounting to ₹500 Crore (approx.) ($66.57 million) in 68 cities across 25 States/UTs and 1576 charging stations amounting to ₹108 crore (approx.) ($14.37 million) across 9 Expressways and 16 Highways under FAME India (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India) Scheme Phase II.

lion) investment roadmap announced by the Company

Jio-Bp and Mahindra Group Sign MoU for EV and

to expand its growing share in the Indian electric vehicle market. The Ranipet Plant will have the capacity to pro-

Low-Carbon Solutions

duce 120,000 units by end of this fiscal year and gradually ramp up to 1 million units in near future. Goa Approves Policy Aiming For 30 Percent EV By 2025 The Goa government has approved Goa Electric Mobility Promotion Policy (GEMPP) 2021. This policy encompasses several different incentives, subsidies, and goals, all in a bid to electrify Goa. The Goa government hopes to have 50 percent of their ferries running on battery power, in the next four years. Notably, there will be an emphasis on having at least 30 percent of vehicles in Goa to be electric by 2025. This will also be achieved by promoting investment in electric mobility start-ups or companies,

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Reliance BP Mobility Limited (RBML), operating under the brand name Jio-bp and the Mahindra Group, announced a non-binding MoU for exploring the creation of EV products and services, alongside identifying synergies in low-carbon and conventional fuels. The MoU also covers evaluating charging solutions by Jio-bp for Mahindra vehicles including electric 3 and 4 wheelers, quadricycles, and e-SCV (Small Commercial Vehicles – sub 4 ton). This would include captive fleets and last-mile mobility vehicles of Mahindra Group. The partnership aims to leverage the strengths of both companies in the areas of EV products and services.

FEBRUARY 2022

Mahindra Group and its channel partner locations will be evaluated for the setting up of Jiobp Mobility Stations and EV charging and swapping points apart from utilizing existing Jio-bp stations. TVS Motor and BMW Motorrad Announce Cooperation Agreement for EV TVS Motor Company and BMW Motorrad announced that they are extending and expanding their long-term partnership with the joint development of new platforms and future technologies, including Electric Vehicles. Based on this decision, TVS Motor Company’s scope will include the design and development of future BMW Motorrad products and delivering worldclass quality, supply chain management, and industrialization. BMW Motorrad and TVS Motor Company will develop common platforms by mutually tapping the emerging technologies in the future mobility space, keeping in mind the global requirements of customer segments in various markets. MG Motor India Leads the Way in EV Battery Recycling with Attero MG Motor India, in partnership with Attero, has successfully recycled MG’s first EV battery and the metal extracts along with various other commodities from the recycling process can be used to develop new batteries. With this significant achievement, MG Motor India has further augmented its initiatives to strengthen the EV ecosystem, essentially making it greener and sustainable. The move is also in synergy with MG’s ChangeWhatYouCan campaign, encouraging people to make a difference in their own lives and the world around them. MG Motor India has teamed up with Attero recycling to reuse and recycle Li-ion batteries of India’s first Pure Electric Internet SUV - ZS EV.

FEBRUARY 2022

Conclusion The installations in the fourth quarter of 2021 were the highest in the past two years. There is an exponential growth of Solar installation during this quarter. Duty-free window and upcoming BCD force the developers to commissioned their project during this period. The distributed sector was doing good, and Commercial and Industrial segment installations were increasing quarter over quarter due to upliftment of restrictions and inflow of foreign funds in the sector as Fourth Partner bought the whole rooftop portfolio of ReNew Power, which was backed by foreign investors. India installed over 2.75 GW of Solar Rooftop in the calendar year of 2021. Even the installations in Utility-scale are doing good, there is a seven percent growth quarter over quarter, and the installations were almost three times more than the previous year's installation. But there is a wait and watch situation in 2022 as BCD will be there on the Solar PV module, how the domestic developers will react with that and how Chinese suppliers will come up with the extra cost on Solar PV. 2021 was a great year for the Indian Power industry, such as on 7th July 2021 -highest ever all India demand of 20,0570 MW achieved, over 5 lakh smart-meters installed in Andaman & Nicobar Islands, Bihar, Himachal Pradesh, Madhya Pradesh, Punjab & Rajasthan, Total cleared volume in Green Term Ahead market increased from 785.83 MU in 20202021 to 2,744 MU in 2021-22, REC mechanism redesigned to promote new renewable technologies, while Electricity (Transmission Planning, Development, and Recovery of ISTS Transmission Charges) Rules, 2021 issued to give power sector utilities easier access to electricity transmission network across the country. The installation in 2021 was going to be more than the actual but due to price fluctuation of the raw materials, along with transportation issues affect the yearly installations. But, as per the current scenario, many under-development projects are going to be commissioned even though the BCD will impose from April 2022, as this is the most crucial year from the JNNSM target which was set for 100 GW by December 2022 for solar.

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FEBRUARY 2022

FEATURED

Navitas Solar Launches Solar Water Pumping Systems To provide a more sustainable and environmentally friendly solution to the water shortage and storage issues in remote areas, Navitas Solar has proudly launched Solar Water Pumps. These pumps are an ideal combination of Green Energy, Economy, and Reliability.

he World has been drawing water using pumps powered by Diesel, IC engines, or utility electricity. Yet, the biggest issue with Diesel pumps is that they have a hazardous impact on the environment. Even the pumps powered by utility electricity are difficult to use in remote areas due to the unavailability of the supply. Hence, Navitas Solar has come up with the Solar Water Pumps. They have a significantly lower environmental impact compared to other pumps since they emit less pollution and help in carbon footprint reduction. We can use them in remote areas where grid connectivity is not yet established or is uncertain. Electricity produced by the Photovoltaic Panels (PV) of a Solar system is used to drive these pumps. A submersible pump can lift upto 650ft of water and can be installed in large wells. When the well water is 20ft or more above the surface, the submersible pumps can operate directly to turn off Batteries, Solar Panels, and in some cases, Electricity on their own. They pump the water during the day and store it in tanks for future use. However, the only problem in bad weather conditions is that the water cannot be pumped due to the lack of sunlight. Thus, it is advisable to store the water only in good climate conditions. 80

FEBRUARY 2022

For the submersible pumps, the maximum recommended pump depth is 50m. Hence they are used in deep-water wells and undrilled areas. We can use them to water livestock, Aerate ponds, home water systems, irrigation, pressurization, and pump wells. However, when the well water supply depth is less than 20ft from the ground, we recommend using a Surface-Mono Block Solar Water Pump, also designed by Navitas Solar. These pumps can pump water up to 200ft or more but cannot pump very high water from deep wells. They can easily lift water from depths of up to 20m.

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FEATURED

APPLICATIONS OF SOLAR PUMP: ● Livestock watering ● Home water systems ● Pressurization ● Well pumping ● Irrigation for farming ● Drinking and cooking ● Industrial water processing ● Fountains ● Pond/ aquarium/ Swimming pool filtration

FEATURES OF SOLAR PUMP: ● Long-life support and maintenance-free ● Easy installation with internal combiner box ● A high technology control unit, water pump, and motor ● Maximizing energy efficiency (~+40%) with internal MPPT module ● Shorter payback period against DGs ● Zero operating costs ● Battery-free, direct drive system ● Possibility to work with a generator or grid electricity in case of requirement

ADVANTAGES OF SOLAR PUMP: ● No need for fuel ● Easy to move ● Doesn’t require a utility supply ● Used in remote areas ● High durability and performance ● Long service life ● Environmentally friendly

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COMPONENTS OF SOLAR PUMPS: PUMP AND MOTOR:

● Extremely efficient PMSM/BLDC motors ● Stainless steel rotor ● Rare-earth magnets that can withstand 160◦ C high-quality ceramic carbon thrust bearing ● Leak-proof motor filled with water for frictionless operation ● 100% stainless steel AISI304 parts for submersible application ● Sand guard ● Warranted for 5 years CONTROLLER:

It matches the output and input power of the pump and solar panels and provides voltage protection. With the pump controller, the operator adjusts the pump pressure, flow, frequency, operational times, etc. According to the end-use requirements, there are various categories of pump controllers to choose from, depending on the solar pump motors (AC or DC). ● Built-in MPPT for maximum output ● Sensor less dry running protects the controller. Tested as per MNRE and BIS requirement ● Warranted for 5 years ● Remote monitoring ● Remote start-up and stop ● Short circuit protected ● IP54 and IP65 certified controllers

FEBRUARY 2022

FEATURED DOMESTIC MANUFACTURERS APPLAUD MNRE’S MOVE TO INCLUDE

OPEN ACCESS & NET-METERING PROJECTS UNDER ALMM In an office memorandum released by the Ministry of New and Renewable Energy (MNRE), the Government of India has expanded the scope of “Approved List of Models and Manufacturers” (ALMM) and will be applicable to Open access & Net-Metering Projects from April 1st 2022.

hese include projects set up for sale of electricity to the Government under the Guidelines issued by Central Government under section 63 of Electricity Act, 2003 and projects under Component A of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program. Officials from North India Module Manufacturers Association (NIMMA), Indian Solar Manufacturers Association (ISMA) and All India Solar Industries Association (AISIA) and industry leaders have welcomed the decision.

“We are thankful to the government for taking this step which will help consumers to get better quality and reliable supplier, lenders and investors will have more confidence on their investment as module is major and most important component of solar power projects. Domestic Industry is suffering for long time due to almost 90% imports of solar modules. Local Manufactring capacity in India which is more than our requirement now will have some business. Thanks for supporting domestic solar manufacturing industry and huge employment ,” said Mr. Hitesh Doshi – President, All India

Solar Industries Association.

“The move will help provide necessary ammunition to the Make in India movement. It will also help smaller manufacturers expand capacities and improve business as the industry will see an uptake in demand.”said, Mr. Manish Gupta – President, NIMMA

“The ALMM policy amendment by MNRE is a significant announcement in interest of all stake holders . The announcement has come at an appropriate time, just when BCD will be implemented. The combined effect of both these policies will be massive, and I am sure India will grow to become a solar manufacturing hub in the coming years.” said, Mr. Bharat Bhut – Co-

founder & Director, Goldi Solar, leading Indian Solar Manufacturer

FEBRUARY 2022

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FEATURED MG MOTOR INDIA AND ACMA FORGE AN ALLIANCE TO PROMOTE

SKILL DEVELOPMENT IN THE EV COMPONENT INDUSTRY ACMA will utilise ZS EV to educate and foster skill development in the EV component industry

G Motor India has joined hands with the Automotive Component Manufacturers Association of India (ACMA) with a vision to educate and foster skill development in the EV component industry. ACMA will conduct a study on ZS EV to promote skill development in the component segment, syncing with the alliance’s objective of supporting the development of the EV ecosystem. It will work in tandem with the IIT Delhi campus of Sonepat to further its research on the deployment of electric vehicles in urban India. Commenting on the announcement

“We are grateful to MG Motor for providing us with this opportunity. A futureready workforce for manufacturing electric vehicles is the need of the hour and this collaboration will help the auto component makers in upskilling themselves and remaining relevant.” said, Mr. Sunjay J Kapur, President, ACMA

“MG Motor and ACMA will collaboratively add value to the EV component industry by imparting education and skill development to create a futureready workforce. The alliance is also aligned with MG’s vision of CASE mobility, learning & skill development, and overall commitment to strengthening the EV ecosystem.” said, Mr. Rajeev Chaba, MG Motor India (President and MD)

The association is in line with MG’s vision to support and develop the ecosystem for the electric vehicle. Previously, MG had formed an alliance with IIT Delhi – Centre for Automotive Research and Tribology (CART) for similar research.

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FEBRUARY 2022

FEATURED

SJVN – Creduce (JV) in 1500 MW, Largest Indian Hydro Power Based Carbon Credit Deal Creduce Technologies Private Limited – HCPL JV announces winning the bid for India’s single largest Hydro Power Carbon Credits project with Satluj Jal Vidyut Nigam Ltd. This project under joint venture could result in creation of more than 80 million carbon credits from Satluj Jal Vidyut Nigam’s vintage project making it the biggest public-private collaboration for claim and trade of carbon credits in the country in recent times.

ooking at the current International Carbon Market Prices, This carbon credit project activity is poised to fetch approx USD 100 Million revenue into SJVN’s books. The Satluj Jal Vidyut Nigam Ltd (SJVN) that began with a single project and State operation (i.e. India’s largest 1500 MW Nathpa Jhakri Hydro Power Station in Himachal Pradesh), today has commissioned several projects totalling more than 2500 MW of installed capacity. Besides the Nathpa Jhakri project SJVN also has Rampur Hydro Power project in Himachal Pradesh with a capacity of 500 mw together with consolidated installed and upcoming wind and solar power contributing to another 500 mw. SJVN decided to avail the carbon credits and Invited Bids from the eligible Service providers. Creduce – HPCL JV emerged as the winner of rigorous tendering process and Won the Project. With this project activity, SJVN and Creduce are also aiming to align with the new rules emerging from the Paris Climate Agreement. The additional revenue will also bolster efforts for SJVN’s additional projects that it is implementing and operating in Himachal Pradesh, Uttarakhand, Bihar, Maharashtra, Uttar Pradesh, Punjab, Gujarat and Arunachal Pradesh in India besides neighbouring countries of Nepal and Bhutan.

FEBRUARY 2022

Commenting on the mega collaboration, Shailendra Singh Rao, Founder, Creduce says, “Pursuant PM Modi’s announcement at COP26, Creduce has embarked on the ambitious journey of creating and servicing withing the Compliance and Voluntary Carbon Credits framework for all green projects to claim and utilize carbon credits. We are honoured to be a part of this deal where we would help SJVN claim millions in carbon credits and subsequent revenues over the coming decade.” With SJVN’s vintage and future produce, the numbers would definitely help enhance the health of this balance sheet and support implementation of more such projects in the State of Himachal Pradesh and the country. This announcement is a major step towards the mission of achieving net-zero emissions by the year 2070 as announced by Prime Minister Narendra Modi during the COP26 summit. “We are proud to have partenered with Creduce to help de-carbonise the Indian and global economy. It is incumbent among each firm, be it government or private to commit to the carbon markets and help the fight against climate change,” said Kartik Upadhyay, Managing Director, Hydel Consultants Private Limited.

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FEATURED Goldi Solar partners with SRK Knowledge Foundation to solarize the entire village of Dudhala, Gujarat

Goldi Solar, a global solar panel manufacturer and EPC services provider, in partnership with Shree Ramkrishna Knowledge Foundation (SRKKF) today laid the foundation stone for the solarization of the village of Dudhala in Southern Gujarat. 450 KW solar rooftop projects will be used to power around 350 houses and public areas such as anganwadis and gram panchayat.

nce complete, this would be the first village to be completely powered with solar panels by a foundation. Instead of providing financial aid, this move will empower close to 2000 lives to earn money from the solar rooftop systems.

Ishver Dholakiya, Founder & Managing Director, Goldi Solar said, “This plan has been undertaken under Shri Govindbhai Dholakia’s mentorship and vision to give back to society. It is a proud moment for Goldi Solar to take up this project in empowering people with better quality of life. We also believe that this project truly captures the true spirit of PM Modi’s Atmanirbhar campaign and takes a step towards providing 24×7 power for all. We thank SRKKF for giving us the opportunity to truly make a difference to the lives of many.”

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Shree Ramkrishna Knowledge Foundation (SRKKF) is the CSR arm of Shree Ramkrishna Exports, a leading Indian diamond company. Apart from setting up renewable energy, the foundation will provide free wi-fi services, healthcare, medical infrastructure and service to Dudhala. Commenting on the initiative, Founder-Chairman of SRK Exports, Shri Govindbhai Dholakia said, “SRK Exports is known for its world-class green facilities. In line with the efforts towards sustainable development, I was inspired to develop a village powered with 100% renewable source of energy. Dudhala is my native village where I was born and spent my early childhood. The love for my homeland motivated me to do good for the people of my village.”

FEBRUARY 2022

FEATURED

EKI ENERGY SERVICES VENTURES INTO DUBAI Expanding its offshore presence, the company has established its wholly owned subsidiary – Enking International FZCO in Dubai free zone “We are truly excited to set

orld’s premier Carbon Credit Developer and Supplier, EKI Energy Services Limited announced that it has established its presence in Dubai, the business hub of Western Asia. Expanding its footprint in the global carbon market, EKI has incorporated a wholly owned subsidiary company named – “EnKing International FZCO (“The Company”)” in Dubai free zone (IFAZA). With this subsidiary, EKI will be able to widen the scope of its climate actions to newer markets. The company currently has over 2500 clients across 40 countries and its offerings include Carbon Credit/Asset Management, Carbon Credit Generation, Carbon Credit Supply, Carbon Credit Offsetting, Carbon Footprint Management, Sustainability Audits, as well as Carbon Neutrality and Climate Positive initiatives.

foot in the beautiful city of Dubai. This strategic move will enable us to strengthen our operations in the Middle East as we fast track the climate change ambitions of businesses here. As we continue to expand our presence globally, we promise to consistently endeavor to build a sustainable future in all the markets with our comprehensive bouquet of turnkey solutions for carbon asset management”. Mr. Manish Dabkara, CEO and CMD, EKI Energy Services Ltd.

ADITYA THACKERAY LAUNCHES SPECIAL CELL DEDICATED TO ELECTRIC VEHICLES IN MUMBAI Aditya Thackeray launches special cell dedicated to accelerate Electric Vehicles in Mumbai. Stressing on the acceptance of EV among the general public, Thackeray said that Maharashtra has witnessed a jump of 157 percent in EV registration since the announcement of EV policy. On February 23, Maharashtra Cabinet Minister Aditya Thackeray launched a special cell dedicated to accelerate Electrical Vehicles `transition and adoption’ in Mumbai. The ‘Mumbai EV Cell’ was launched under Brihanmumbai Municipal Corporation (BMC) and in collaboration with a company called WRI India.

We launched the Mumbai EV cell, a BMC and WRI partnership, to accelerate EV transition and adoption. With experts working towards sustainable mobility, this cell will assist in creating a network of charging stations, supporting battery development and market penetration, tweeted Aditya Thackeray who is also the Guardian Minister of Mumbai Suburban District.

FEBRUARY 2022

Stressing on the acceptance of EV among the general public, Thackeray said that Maharashtra has witnessed a jump of 157 percent in EV registration since the announcement of EV policy (in July 2021). Source : ani

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INDIA

POWER CONSUMPTION GROWS 1.5 PER CENT IN FIRST

FORTNIGHT OF JANUARY AMID THIRD COVID WAVE India’s power consumption grew marginally at 1.5 percent in the first fortnight of January to 49.34 billion units (BU) compared to the same period a year ago, showing the impact of local restrictions imposed by states amid the third wave of COVID-19.

uring January 1 to 14 in 2021, electricity consumption stood at 48.59 BU, as per power ministry data. During January 1 to 14 in 2021, electricity consumption stood at 48.59 BU, as per power ministry data. Power consumption in the entire January last year was 109.76 BU, which was 4.4 per cent higher than 105.15 BU in January 2020. According to the data, peak power demand met or highest supply in a day rose to 179.59 GW during January 1 to 14 this year, compared to 178.88 GW in the same period of the previous year. It was 189.39 GW for the entire month of January 2021, and 170.97 GW in January 2020. Experts are of the view that the slowdown in power consumption growth in the first fortnight of January clearly shows the impact of local restrictions imposed by states amid the third wave of COVID-19 which affected industrial and commercial demand. The third wave of the pandemic hit the country in January 2022, which has forced many states to impose local restrictions like night and weekend curfews. They have also taken measures like banning dining in bars and restaurants.

The experts opined that the power demand as well consumption would remain subdued due to local restrictions imposed by the states. Power consumption had grown by 3.4 per cent in December 2021 to 109.25 BU from 105.62 BU in the same month of 2020. In November 2021, power consumption grew by 2.5 per cent to 99.32 BU from 96.88 BU in November 2020. Many states had imposed lockdown restrictions after the second wave of the pandemic in April 2021, which affected the recovery in commercial and industrial power demand. Curbs were gradually lifted as the number of COVID cases fell. Power consumption witnessed a 6.6 per cent year-on-year growth in May 2021 at 108.80 BU, from 102.08 BU in the same month of 2020. In June 2021, it grew nearly 9 per cent to 114.48 BU, compared to 105.08 BU in the same month in 2020. In July 2021, it rose to 123.72 BU from 112.14 BU year-on, while in August power consumption surged by over 17 per cent at 127.88 BU compared to 109.21 BU in the same month in 2020. Power consumption in September 2021 witnessed flat growth at 112.43 BU, mainly due to delayed monsoon. Source : PTI

RELIANCE BIDS FOR INCENTIVES UNDER BATTERY SCHEME India’s power consumption grew marginally at 1.5 percent in the first fortnight of January to 49.34 billion units (BU) compared to the same period a year ago, showing the impact of local restrictions imposed by states amid the third wave of COVID-19.

ndian conglomerate Reliance Industries, South Korea’s Hyundai Motor Co and automaker Mahindra & Mahindra are among companies that have submitted bids under the country’s $2.4 billion battery scheme, two sources told Reuters. India last year finalised an incentive program to encourage companies to invest in the local manufacturing of batteries as it looks to establish a domestic supply chain for clean transport and build storage for renewable energy. T he last day to submit technical bids. Softbank Group-backed Ola Electric, engineering conglomerate Larsen & Toubro and battery makers Amara Raja and Exide have also submitted bids, the sources said. None of the companies named by the sources immediately responded to requests for comment. India wants to establish a total of 50 gigawatt hours (Gwh) of battery storage capacity over five years, which it expects will attract direct investment of about $6 billion. To qualify for the incentives, companies must set up at least 5 Gwh of storage capacity and meet certain local content conditions, all of which would require a minimum investment of more than $850 million. Around 10 companies have submitted bids totalling close to 100 Gwh, the sources said. India was also encouraging global companies such as Tesla Inc, Samsung, LG Energy, Northvolt and Panasonic to invest. Clean auto technology is a key part of India’s strategy for cutting pollution in major cities and reducing oil dependence. But electric vehicles (EVs) currently make up a fraction of total sales in the country mainly due to their high price as batteries are imported. The South Asian country wants electric cars to make up 30% of private car sales by 2030 and for electric motorcycles and scooters to make up 40% of such sales, driving demand for batteries which currently contribute about 35% to 40% of the total vehicle cost. Source : businessworld

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FEBRUARY 2022

INDIA

BOSCH TO BUY SOLAR POWER FROM

AMP ENERGY IN KARNATAKA Amp will help energise three Bosch

plants in and around Bengaluru

osch Limited, supplier of technology and services in India, has partnered with Amp Energy India, a renewable Independent Power Producer (IPP), for its solar energy requirements. Bosch Limited and Amp Energy India have signed a Power Purchase Agreement (PPA) for procurement of solar power for 25 years. This project will provide solar power to energise three Bosch plants in and around Bengaluru and by switching to solar power, Bosch will also help reduce carbon footprint by about 31,000 tonnes of CO2 per annum. The solar open access facility commissioned this month will generate about 43 million units of green energy per year for Bosch Limited and will meet about 40 per cent of its energy consumption. Reliance New Energy Solar becomes promoter in Sterling and Wilson Renewable Energy The solar project capacity is 30 MW and would be provided from Amp Energy India’s open access facility in Mallat Village, Raichur district in Karnataka. This is Amp’s third open access project in Karnataka.

INDIA, A KEY MARKET FOR

“Solar energy adoption by top companies in India has seen a major growth over the last few years, especially post the challenges posed by the Covid pandemic. We are thankful to the Bosch team for extending their continuous support to us since the beginning. With this partnership, we are sure Bosch will set up benchmarks for other conglomerates to follow to switch to clean energy for their growth in the country and move towards accomplishing their RE100 targets,” Mr. Pinaki Bhattacharyya, MD and CEO, Amp Energy India

“Bosch globally is stepping up its investments in green energy there by investing in renewable in-house generation power plants and entering into exclusive long-term purchase agreements with partners like Amp Energy. India is an important and key market for us, and we would like to help the country reach its true potential. We are happy to partner with Amp Energy for this project that has helped achieve our sustainability objectives in a timely manner,” said Mr. Soumitra Bhattacharya, Managing Director, Bosch Limited & Regional President, Bosch Group in India

BOSCH . Amp Energy India has developed large open access projects such as the Solar Open Access Project in Maharashtra (30MW), the captive solar open access project in Uttar Pradesh (42MW) and its second open access project in Maharashtra (13.5MW). Source : thehindubusinessline 88

FEBRUARY 2022

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INDIA AZURE POWER REFINANCES ITS 600 MWS ISTS CONNECTED SOLAR PROJECT AT THE LOWEST RATE OF INTEREST IN ITS PORTFOLIO TO DATE 1. It is the largest owned and operated single site solar project in India, fully commissioned in December 2021. 2. The rate of interest of 7.2% p.a. – fixed for 42 months – is the lowest in terms of rupee financing for Azure Power.

Azure Power a leading independent sustainable energy solutions provider and power producer in India, today announced successful refinancing of its existing project finance facility of INR 23.50 billion (~USD 313 million) utilized towards construction of its largest project – 600 MWs Interstate Transmission System (ISTS) connected solar project implemented by Azure Power Forty Three Pvt Ltd, a Special Purpose Vehicle (SPV).

he project was fully commissioned recently in December 2021. The refinancing has been completed at a rate of interest of 7.2% per annum, which is fixed for 42 months and the lowest rate of interest for any project finance facility in terms of rupee financing for the company’s existing portfolio so far.

ABOUT THE PROJECT

This is the largest solar power project in India, owned and operated at a single location by any developer. The project is 600 MWs (897 MWp) Interstate Transmission System (ISTS) connected solar project in Bikaner, Rajasthan, allocated by Solar Energy Corporation of India (SECI).

The power generated from the project is being supplied to SECI at a tariff of INR 2.53 (~US 3.5 cents) per kWh under the Power Purchase Agreement executed with SECI for 25 years. The project was commissioned in multiple phases, with the last 100 MWs commissioned in December 2021.

AVAADA ENERGY PRIVATE LIMITED TO RAISE INDIA’S LARGEST AAA RATED GREEN BOND BY ANY RENEWABLE ENERGY DEVELOPER Avaada Energy Private Limited to Issue Green Bonds for INR 1440 Cr (USD 192 million) at 6.75% making it India’s largest AAA rated green bond by any renewable energy developer.

vaada Energy, India’s leading solar project developer, today announced that it is raising green bonds for INR 1440 Cr (USD 192 million) in the Indian capital market at 6.75% making it India’s largest AAA rated Green Bond by any renewable energy developer. The bonds are certified by Climate Bonds Standard Board of the Climate Bonds Initiatives and are also compliant with the SEBI guidelines for Green Debt Securities. The bonds will be listed on the Bombay Stock Exchange (BSE), having a tenure of 3 years. The issuance earned the highest rating by CRISIL ratings. Axis Bank and ICICI Bank are the arrangers of the issue. Avaada Energy is a leading Indian renewable energy IPP with a multi-GW portfolio. With the issuance of Green Bonds, Avaada has joined a select club of Indian firms to have raised capital through bond issuance. India is one of the fastest-growing markets for green energy globally. Hon’ble Prime Minister Shri Narendra Modi has been very categorical about his commitment to renewable energy. In the recently concluded COP26, where he also gave India’s gift ‘Panchamrit’- the five nectar elements to the world to address the climate change.”

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One of the major elements of ‘Panchamrit’ is the higher deployment of renewable energy. As announced by Hon’ble PM, India will meet 50% of its energy needs through renewable energy sources by 2030. Towards this end, the country will have an installed base of 500 GW of renewable energy assets. The issue saw overwhelming interest & participation from various banks & financial institutions. Speaking on the occasion Mr. Vineet Mittal – Chair, Avaada Group said, “It is a proud moment for Avaada family and reflection of confidence shown by investors on Avaada’s impeccable execution track record and high performing assets. ESG financing has witnessed major strides in the last few years. The response to bond issuance in the domestic market is extremely encouraging. It will help developers to raise capital domestically and avoid exposure of foreign exchange currency risk and achieve a reduction in fundraising costs.” Avaada Energy, a leading solar project developer is currently backed by PTT Group- Thailand, which is a Fortune 500 firm and one of the major oil and gas companies globally.

FEBRUARY 2022

INDIA VEDANTA ALUMINIUM LAUNCHES ‘RESTORA’, INDIA’S FIRST LOW CARBON ‘GREEN’ ALUMINIUM Unveils two products — Restora and Restora Ultra. Restora is the first Indian primary aluminium to be made using renewable energy. Restora Ultra is the first Indian aluminium with an ultra-low carbon footprint in collaboration with Runaya Refining.

Vedanta Aluminium Business, India’s largest producer of aluminium and value-added products, launched ‘Restora’, its low carbon, ‘green’ aluminium brand. The company unveiled two product lines – Restora (low carbon aluminium) and Restora Ultra (ultra-low carbon aluminium) under the brand.

edanta Aluminium is the first major non-ferrous Indian metals producer to manufacture low carbon products (primary aluminium) for customers worldwide, exhibiting a strong step towards its commitment of achieving Net Zero Carbon by 2050. Both products have been verified as low-carbon aluminium post assessment by an independent, global verification assurance firm. With Restora, Vedanta Aluminium will address the fast-growing global demand for low carbon aluminium, driven by greater climate consciousness. Vedanta’s Restora is being manufactured at the company’s world-class aluminium smelter using renewable energy. Restora has a GHG emission intensity that is well below 4 tonnes of CO2 equivalent (tCO2e) per tonne of aluminium manufactured – the global threshold for aluminium to be considered as low carbon aluminium, and Restora Ultra has an even lower carbon footprint that is amongst the lowest in the world. Restora Ultra, is made from recovered aluminium through Vedanta’s partnership with Runaya Refining, one of India’s fast-growing manufacturing start-ups focussed on creating innovative solutions for the resources sector and leverages patented technology licensed from TAHA International S.A. for processing aluminium dross at Vedanta’s plants. Under the Restora Ultra product line, the company will offer aluminium recovered from dross (a by-product of the aluminium smelting process). Restora Ultra is also a testament to Vedanta’s sharp focus on ‘zero-waste’ through enhancement of its operational efficiencies. Vedanta Aluminium has the capability to tailor-make Restora and Restora Ultra as Billets, Primary Foundry Alloy (PFA), Wire Rods, Slabs, P1020 Ingots, and more, customized to the needs of the end-use industries. Vedanta Aluminium already has interest from discerning, environmentally conscious customers for the first production volume of 100 kilo tonnes of Restora and Restora Ultra aluminium.

Launching the Restora brand, Rahul Sharma, CEO – Aluminium Business, Vedanta Ltd., said, “The launch of Restora, marks a proud moment in our commitment to decarbonize our operations as well as provide our customers an unmatched competitive advantage with sustainable aluminium products. Our holistic solutions are market-responsive and tailored to support evolving needs of customers. Restora has a GHG emission intensity which is almost half of the global threshold for low carbon aluminium. With consumers becoming increasingly conscious of the provenance of the products they use, Vedanta’s Restora will provide them the assurance that the aluminium they purchase has amongst the lowest carbon footprints in the world.”

FEBRUARY 2022

Speaking about co-creating Restora Ultra, Annanya Agarwal, co-founder, Runaya, added, “We are delighted to collaborate with Vedanta to create this innovative new product. With near-zero carbon footprint, Restora Ultra is a shining example of the value-creation that happens when we bring together innovation and leadingedge technologies for true business sustainability. Runaya has been working towards disrupting the linear economy model by building in principles of circularity and sustainability into the design of the resources industry.” It is a strategic imperative for the company to reduce carbon emissions across every process stage. As a result of this unwavering focus, Vedanta Aluminium has reduced its GHG emissions intensity by 21% in FY21 while almost tripling its production, over FY12 baseline. The company is also a member of the prestigious Dow Jones Sustainability Index (DJSI) family, is ranked 4th amongst global aluminium producers in 2021. Vedanta Aluminium currently produces one of the largest ranges of aluminium and its value-added product offerings. The company is India’s largest producer and exporter of aluminium billets, and the world’s largest producer of wire rods, excluding China. It offers manufacturing excellence in aluminium, global technology partnerships, deep R&D and innovation capabilities, and an evolved technical services cell for customers. Aluminium is the ‘metal of the future’, with potential for greater applications in a climate-conscious world. The metal is pivotal to the world’s transition to all potential clean energy technologies for a low-carbon future. Towards this end, the company has brought together technical, operations and marketing expertise in a Centre of Excellence to develop new products and product applications for sunrise sectors such as electric mobility, solar/renewable energy, green buildings, aerospace and more. Vedanta Aluminium Business, a division of Vedanta Limited, is India’s largest manufacturer of aluminium, producing half of India’s aluminium at 1.97 million tonnes per annum (MTPA) in FY21. It is a leader in value-added aluminium products that find critical applications in core industries. With its world-class Aluminium Smelters, Alumina Refinery and Power Plants in India, the company fulfils its mission of spurring emerging applications of aluminium as the ‘Metal of the Future’ for a greener tomorrow.

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INDIA

NET METERING VS GROSS METERING The biggest change occurred in generation of electricity in this era is Distributed Generation (DG)! The change that anyone would only imagine of is true these days. Yes, it is possible to generate our own electricity. The credit goes to Renewables for sure. Customers are able to install Rooftop Solar plants and generate their own electricity. India has solar insolation in abundant form so that rooftop solar has truly become a boon for users. Various policies launched by Government are useful for the end users to install solar rooftop. The basic issue in solar generation is that the generation is intermittent, so the end user might face problems in the nighttime if the solar rooftop is standalone type. The problem can be solved by installing solar rooftop with a battery that in daytime, user uses the solar generation and in the nighttime user uses the power from the battery. However, the rooftop solar with the battery becomes too costly. The problem can be solved by another method and that is grid connectivity. The solar rooftop is connected with the grid, so that the deficit power can be imported from the grid and the surplus power can be exported to the grid. Therefore, the end user will get the electricity continuously despite of having intermittent generation of solar. Majority of the solar rooftops are grid connected. There are two arrangements defined by governments to design solar rooftop: Net metering and Gross metering.

NET METERING In Net Metering, the electricity generated by solar rooftop plant is adjusted against the imports. Electricity produced by solar rooftop is deducted from the total energy consumption of the user over a period. The adjustments are based on different periods like monthly, bimonthly, half yearly or yearly based on the state government policies.

Generally, a bidirectional net meter is connected which is able to measure the bidirectional energy like the electricity imported to the user from the grid and the electricity exported to the grid by the user. If the exported electricity is higher than the imported electricity, then the end user may or may not get compensation depending on the state’s net metering policy rules and regulations for supplying surplus electricity into the grid. In simple words, consumer may use the energy generated by soar rooftop plant and then may export the excess energy to the grid and in case of deficit, the consumer will use the energy imported from the grid.

GROSS METERING In Gross Metering, two unidirectional gross meters are installed in the arrangement. One gross meter counts the energy being imported to the end user from the grid and the other gross meter counts the energy exported from consumer to the grid.

The consumer is compensated at a fixed feed in tariff for the energy generated as well as exported to the grid and has to pay the retail supply tariff for the electricity imported from the grid. The feed in tariff and the retail supply tariff are generally of different rates. Mostly, feed in tariff is at lesser rate than retail supply rate. In simple words, consumer has to export all the energy generated by rooftop solar plant to the grid and then consume the electricity by importing the energy from the grid.

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FEBRUARY 2022

INDIA BIHAR’S FIRST FLOATING SOLAR POWER PLANT TO BE COMMISSIONED The solar power plant will be directly connected to the utility power grid from where power will be supplied to consumers

ihar Renewable Energy Development Agency (BREDA) is set to commission the state’s first two MW floating solar power plant in Darbhanga, said electrical superintending engineer Sunil Kumar Das. As many as 40,04 photovoltaic (PV) panels, each capable of generating 500-watt electricity, will be installed in a pond in Darbhanga’s Kadirabad locality by Delhi based firm AVAADA. Rohit Kumar Singh, the project manager of AVAADA, said the work for the floating solar power plant started in October last year. However, the foundation work only began on November 15. It is now ready for commissioning, said Singh. The solar power plant will be directly connected to the utility power grid from where power will be supplied to consumers. The project is a part of efforts to tap as well as to generate mass awareness about solar energy. The floating solar power plant has been built in line with the state government’s promotion of clean energy.

Source : hindustantimes

SJVN TO ENTER POWER TRADING BUSINESS: CMD, SJVN Central Electricity Regulatory mission (CERC) has granted Trading License to SJVN Limited for interstate trading of electricity. The Commission said that SJVN meets the requirements of the Act and the Trading License Regulations for grant of inter -State trading license.

Shri Nand Lal Sharma, Chairman & Managing Director of the company said that by the grant of Trading License, another feather has been added to SJVN’s Cap, giving a big boost to its business. SJVN will now be trading electricity generated by any public & Mr. Nand Lal private generating companies including companies like SJVN Arun-3 Power DevelopSharma ment Company (SAPDC), SJVN Thermal Director(Personnel) Pvt. Limited (STPL) and other upcoming SJVN Ltd Subsidiaries in Renewable Sector. Sh. Sharma stated that efficient execution of electricity trading in a competitive environment will ultimately benefit consumers in the spirit of the open access regime brought about by the Electricity Act, 2003 and subsequent CERC & SERC regulations. Sh. Sharma further said that, "SJVN aims to be a one-stop source for any generator and consumer wanting to trade power in the country and contribute to the evolution of a robust and competitive electricity market in India." Sh. Sharma emphasized that SJVN has an adequate infrastructure, with state-of-the-art communication facilities and qualified and experienced staff for this task. SJVN has an energetic core business team with enormous knowledge of power sector related to renewable and non-renewable energy and trading thereof. Sh. Sharma further said that, SJVN will focus on fulfilling power supply deficiencies across various states while also addressing seasonal and regional variance of demand and supply. SJVN will also consolidate the power of small and medium power generators and trade into bulk power consumers. While SJVN currently has the requisite infrastructure and personnel to carry out trading activities efficiently, all incremental support system, manpower, and infrastructure requirements shall be dealt with as per need. SJVN aims to commence intra-state trading operations in India by tying up contracts to the extent of 900 MW round the clock or equivalent. Sh. Sharma informed that SJVN has a strong portfolio of 41 projects of 16432 MW capacity and has already bagged 1670 MW Solar Power capacity through competitive Bidding Process. Many more Projects in the Renewable Sector are under bidding process, he said. SJVN has already established its footprints in nine States of India viz Himachal Pradesh, Bihar, Maharashtra, Uttar Pradesh, Uttarakhand, Gujarat, Punjab, Arunachal Pradesh and in two neighbouring countries namely Nepal & Bhutan. These projects, Sharma told, will add up to realization of the company’s Shared Vision of capacity building of 5000 MW by 2023, 12000 MW by 2030 & 25000 MW by 2040. Source : PTI 92

FEBRUARY 2022

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INDIA

INDIA’S AMBITIOUS COP26 PLEDGE WILL RUN INTO FUNDING HURDLE, SAYS ICRA

Prime Minister Narendra Modi’s pledge to add 500 gigawatts of non-fossil fuel energy sources by 2030 is likely to face a funding hurdle as massive investments will be required to boost capacity, according to ICRA Ltd.

ndia will require up to Rs 45 lakh crore worth of investments by 2030 to meet that pledge, analysts Rohit Ahuja and Madhura Nejjur said in the rating agency’s first-ever climate series report. “Availability of adequate funding avenues remains critical to achieve capacity targets.” India made ambitious commitments at the COP26 climate summit in Glasgow last year. The country announced a two-phased plan—increasing non-fossil fuel capacity by 2030 and then targeting netzero emissions by 2070. While net zero is a distant target, the 2030 commitments will require urgent interventions on the policy and investment front. Till FY30, ICRA said, the country will need to spend Rs 20-25 lakh crore for adding more capacity. Another Rs 10-15 lakh crore will be required for the supporting transmission infrastructure and storage capabilities.

Source : bloombergquint

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FEBRUARY 2022

INDIA

NO PROGRESS DESPITE NATIONAL CLEAN AIR PROGRAMME: ANALYSIS Three years since the National Clean Air Programme (NCAP) was implemented across India to reduce particulate matter levels in 132 cities by 2030 per cent, data showed there has been little or no progress on ground.

n analysis of the government’s air quality data showed that not only have most non-attainment cities reduced PM 2.5 and PM 10 levels marginally, some have also recorded an increase. The Union government launched the NCAP on January 10, 2019 to address air pollution in 102 cities, to which 20 more cities were added later in the year and 10 more subsequently. These 132 cities are called non-attainment cities as they did not meet the national ambient air quality standards (NAAQS) for the period of 2011-15 under the National Air Quality Monitoring Program (NAMP). The country’s current annual safe limits for PM 2.5 and PM 10 are 40 and 60 micrograms/per cubic metre (ug/m3). The NCAP has set a target of reducing key air pollutants PM10 and PM2.5 (ultra-fine particulate matter) by 20-30 per cent in 2024 taking the pollution levels in 2017 as the base year to improve upon. The Ministry of Environment, Forests and Climate Change and Central Pollution Control Board are leading the programme at the national level. At the state level, state pollution control boards are mandated to develop the city action plans and monitor their implementation by identified departments and agencies. An analysis of air quality monitoring data from the Continuous Ambient Air Quality Monitoring System (CAAQMS) shows that among the cities where PM 2.5 and PM 10 levels for 2019 and 2021 were available and monitors had an uptime of at least 50 per cent, Varanasi in Uttar Pradesh recorded the highest reduction. Only 36 out of the 132 cities met the criteria. Varanasi’s annual PM 2.5 levels reduced 52 per cent from 91 ug/m3 in 2019 to 44 ug/m3 in 2021 and its PM 10 levels reduced 54 per cent from 202 ug/m3 in 2019 to 93 ug/m3 last year. In 2019, Varanasi had just one CAAQMS monitor which increased to four by 2021. The other cities that have already met its reduction target of at least 20 per cent were Hubli in West Bengal where PM 2.5 and PM 10 reduced by 42 and 40 per cent respectively and Talcher in Odisha which saw a PM 2.5 reduction

of 20 per cent and PM 10 reduction of 53 per cent. Ahmedabad recorded a 26 per cent decrease in PM 10 levels. On the other hand, Navi Mumbai’s PM 2.5 levels increased from 39 ug/m3 to 53 ug/m3 and PM 10 levels increased from 96 ug/m3 to 122 ug/m3 from 2019 to 2021. Three years later, none of the analysed non-attainment cities have met the Central Pollution Control Board’s PM 10 safe standard of 60 ug/m3. The NCAP Tracker ranked the 10 most and least polluted cities in 2019 and tracked the performance of these based on PM 10 and PM 2.5 data available from CAAQMS. Considering only those cities where monitors recorded a minimum uptime of 50 per cent, a total of 38, 46 and 58 cities were analysed and ranked in 2019, 2020 and 2021 respectively. Similarly, the tracker also ranked non-attainment cities (which recorded at least 52 days of data each year) based on NAMP data for the years 2017 to 2020. However, the number of monitored days for 2020 was not available and hence all cities have been considered. While in the same city, CAAQMS and NAMP monitors are placed at different locations and hence, cities have been ranked separately. Ghaziabad in Uttar Pradesh with annual PM 2.5 levels above 100 remained at the top of the table in the most polluted cities except 2020 when Lucknow ranked first with an annual PM 2.5 level of 116. Most other cities like Noida, Delhi, Moradabad and Jodhpur saw only a marginal dip in PM 2.5 levels and remained in the top 10 polluted non-attainment cities throughout the year. Varanasi with its drastic dip in PM 2.5 levels went from the fifth rank in 2019 to the 37th in 2021. While four of the top 10 polluted cities were from Uttar Pradesh, West Bengal had three cities — Howrah, Asansol and Kolkata -on the list.

Source : ians

FEBRUARY 2022

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FEBRUARY 2022

BUSINESS & FINANCE

BLACKSTONE TO INVEST $3 BLN

IN INVENERGY RENEWABLES

• Blackstone’s commitment is one of the largest renewable investments in North American history • Investment will provide significant capital to drive an accelerated build-out of Invenergy’s clean energy platform • Since 2019, Blackstone has committed nearly $13 billion in investments that Blackstone believes are consis tent with the broader energy transition • CDPQ and Invenergy management remain majority owners of the company and Invenergy will continue as managing member

oday, Blackstone Inc. (NYSE: BX) announced that funds managed by Blackstone Infrastructure Partners have entered into a definitive agreement with Caisse de dépôt et placement du Québec (CDPQ) and Invenergy for an approximately $3 billion equity investment in Invenergy Renewables Holdings LLC (“Invenergy Renewables” or “the company”), the largest private renewable energy company in North America. Blackstone’s investment will provide capital to accelerate Invenergy’s renewables development activities. CDPQ and Invenergy management remain majority owners of the company and Invenergy will continue as managing member. Invenergy Renewables is one of the largest and most well-respected renewable energy developers, with over 175 projects totaling nearly 25,000 megawatts developed across four continents, focused on long-lasting partnerships with utilities, financial institutions and commercial and industrial customers. The generation projects developed by the company power the equivalent of 8.5 million homes. Invenergy has received numerous industry recognitions, notably a #4 global rank for “Top Power Generators” based on renewables capacity by Energy Intelligence New Energy in 2020. The company’s developed projects have offset approximately 167 million tons of carbon dioxide, or approximately the annual emissions of the state of New York. Invenergy Renewables has a significant development and construction pipeline, and its affiliate Invenergy Transmission is solving power delivery challenges by advancing some of the world’s most innovative transmission infrastructure projects. The company is building both the largest wind and solar projects in the United States, that combined will deliver nearly 3 gigawatts (GW) of clean energy by 2023. Commenting on the transaction,

“Blackstone is committed to investing behind the energy transition and Invenergy is the clear independent leader in the renewable energy sector. We look forward to a long-term partnership with the Invenergy and CDPQ teams and are excited to invest alongside them to support the accelerated buildout of Invenergy’s clean energy portfolio.” Mr. Sean

Klimczak, Global Head of Infrastructure at Blackstone

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BUSINESS & FINANCE “We are proud to have the opportunity to work with Michael Polsky and the worldclass team at Invenergy. Invenergy has built an outstanding platform for delivering clean energy – which is essential to our future – and we are honored to be a part of their mission.” Mr. Matthew Runkle, Senior Managing Director in the Infrastructure Group at Blackstone

“For nearly a decade, we have worked alongside Invenergy to build a key global player in the energy transition, in the United States and around the world. Michael Polsky, Jim Murphy and their team raise the bar when it comes to developing and operating sustainable energy solutions, making their company a true innovator and leader in its field. We are delighted to welcome our long-term partner Blackstone as a new investor, combining our global reach and resources to help position Invenergy for continued growth.” Mr. Emmanuel Ja-

clot, Executive Vice President and Head of Infrastructure at CDPQ

“The Invenergy team is pleased to welcome Blackstone, a leader in the renewable investment space, as our partner. We greatly value our long-term relationship with CDPQ and are thrilled to continue to accelerate the clean energy transition with Blackstone’s additional investment and capabilities.” Mr. Jim Murphy, President & Corporate Business Leader at Invenergy

The investment in Invenergy Renewables is the most recent example of a number of clean energy companies Blackstone is proud to support. Since 2019, Blackstone has committed nearly $13 billion in investments that Blackstone believes are consistent with the broader energy transition. Additionally in 2020, Blackstone announced a plan to reduce carbon emissions by 15% in aggregate within the first three years of ownership across all new investments where Blackstone has control over energy usage. Lazard and CIBC served as M&A advisors to Blackstone and Kirkland & Ellis as legal advisor to Blackstone. Mayer Brown was legal advisor to CDPQ, and Sidley & Austin and White & Case represented the company and Invenergy.

BLACKSTONE INFRASTRUCTURE PARTNERS Blackstone Infrastructure Partners is an active investor across energy, transportation, digital infrastructure and water and waste infrastructure sectors. We seek to apply a long-term buy-andhold strategy to large-scale infrastructure assets with a focus on delivering stable, long-term capital appreciation together with a predictable annual cash flow yield. Our approach to infrastructure investing is one that focuses on responsible stewardship and stakeholder engagement to create value for our investors and the communities we serve.

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FEBRUARY 2022

BUSINESS & FINANCE

GREEN BONDS WILL PROP ADANI’S FUTURE GREEN PLANS Gautam Adani’s plans to revamp his business empire into the world’s largest renewables player are on a roll. The initiative to tap the green bond market to fund this change is certainly bearing fruit as his ambitious $20 billion investment plan gets underway.

dani Green Energy, which takes care of the renewables business, has been very active in the green bond market, raising $750 million through the market last September. It will not be the last as Adani reportedly told Nikkei Asia that the Group would use the market to fund its $20 billion investment plan. The $20 billion investment plan is part of Adani’s bigger game plan to invest across the entire renewable energy chain over the next decade. It includes production and manufacturing processes along with distribution and entails a ginormous sum of $70 billion. So far, investments have been made towards the manufacturing of equipment, including electrolysers. The Group is eager to cut down its dependence on fossil fuels, aiming to triple its renewable power generation capacity in the next four years. Currently, the share of renewables in electric generation is 21% and is expected to account for almost two-thirds once things fall into place. Adani stated that going green was the logical choice as it opened up new avenues for growth. “Our actions indicate that we are putting our money where our mouth is as over 75% of our planned Capex until 2025 will be in green technologies,” he quipped, in one of his rare interviews, to Nikkei Asia. Talking about funding for his ambitious project, Adani placed his confidence on green bonds. “Over the process of its development, Adani Green Energy has matured its capital management plan. The organization has a cycle of funding under-construction assets and then de-risking operational projects through US-dollar green bond refinancing, thereby releasing the credit line for the next set of construction projects”, he pointed out. Additional sources include debt raising and equity capital, as well as the Group’s internal cash flows. As of the last financial year, the Group companies had accrued $4.3 billion (Rs. 323.4 billion) in earnings before interest, taxes, depreciation and amortisation.

Adani dismissed any notion of competing with fellow billionaire Mukesh Ambani. Ambani has revealed similar plans to turn his business into a net-zero carbon emitter by 2035. However, Adani maintained that there was enough space for everyone when it came to renewables. However, he asserts that the Adani Group will become the world’s largest renewables company in the nottoo-distant future. The company achieved its target of 25 GW renewables capacity a full four years ahead of schedule. “This puts us well on track to be the world’s largest renewable power generating company by 2030,” he declared. Source : PTI

RENEW POWER RAISES $400 MILLION VIA DOLLAR BONDS ReNew Power has raised USD 400 million from global debt investors, making it the second issue from the country after Reliance Industries’ mop-up of USD 4 billion.

he renewable energy firm said the money was raised by the Mauritius-based Clean Energy Holdings, a wholly-owned subsidiary of Renew Energy Global Plc that is the parent of the operating firm ReNew Power. It offered a coupon of 4.5 percent to the USD 400-million 5.25-year senior secured dollar notes. The money will be used to refinance existing highcost debt and fund capital expenditure, among other uses, the Gurugram-headquartered and Nasdaq-listed company said. The dollar notes are certified green bonds by the Climate Bond Initiative and will be listed on the Singapore Stock Exchange. These green bonds have a tenor of 5.25 years and are the first high-yield issuance out of the ASEAN and South Asian regions in the new year. The issue was subscribed 40 percent each by American and Asian investors and the balance by EMEA (Europe, the Middle East and Africa)-based investors and most of the subscribers are long-only fund managers and pension funds. So far, ReNew Power has raised in excess of USD 3.5 billion from eight issuances,

of which, seven are outstanding, it said. ReNew Power President (Corporate Finance) Kailash Vaswani said the money will be used to refinance existing high-cost debt and fund capital expenditure of its subsidiaries and for other corporate purposes. The company is among the largest independent renewable energy producers developing, building, owning and operating utility-scale wind and solar energy projects, hydro projects and distributed solar energy projects. As of November 2021, its total capacity stood at 10.3 gigawatts (GW) across, including commissioned and committed projects. On January 6, Reliance had raised USD 4 billion in foreign currency bonds issue, which is the largest from the country so far to retire existing debt. The issue was “nearly three times oversubscribed with a peak order book aggregating around USD 11.5 billion”, the oil-to-retail giant said.It added that this was the largest-ever foreign currency bond transaction from the country, eclipsing ONGC Videsh’s USD 2.2-billion US dollar bonds issue in 2014. Reliance has a cash balance of Rs 2.59 lakh crore and a gross debt of Rs 2.55 lakh crore as of September 2021. Source : PTI

FEBRUARY 2022

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RENEWABLE ENERGY

DECARBONISATION

TO SEE $395 BN CAPEX BY 2030: REPORT At COP21 in Paris, as part of its nationally determined contributions, New Delhi had committed to achieve 40 per cent of installed electricity capacity from non-fossil energy sources by 2030.

As the country moves more aggressively towards its decarbonization goals with the overall energy economy shifting towards greener fuels, a Wall Street brokerage has said this space will see a capex of USD 395 billion by 2030.At COP21 in Paris, as part of its nationally determined contributions, New Delhi had committed to achieve 40 per cent of installed electricity capacity from non-fossil energy sources by 2030. But the target was achieved well ahead of schedule in November 2021 with installed renewable energy capacity reaching 150.05 GW, and nuclear energy capacity at 6.78 GW, said the Union Ministry of New and Renewable Energy last month and reiterated its commitment to achieving 500 GW of installed electricity capacity from non-fossil fuel sources by 2030. This brings total non-fossil fuels based installed energy capacity to 156.83 GW, or 40.1 per cent of the total installed capacity of 390.8 GW, in line with the government announcement at the COP26 at Glasgow in November. Addressing the media, Amish Shah, a research analyst at Bank of America Securities India, said the country now is aligned with large economies on decarbonization efforts. And this added focus will see the country incurring USD395 billion in capex towards decarbonization during the decade ending 2030.He did not however disclose how much of this has already been invested. The decarbonization move includes curtailing diesel intake, more aggressive shift to renewable energy, stepping up natural gas supply and intake, fledgling private sector push for becoming net-zero, improving energy efficiency by privatizing power distribution across the country, better water treatment facilities. Besides, increasing biofuel production, ramping up hydrogen supply and bringing in stringent decarbonization regulations are also part of the government’s green energy move. Efforts in this direction also include expanding rail freight capacity to ensure more goods are ferried by the railways, more metro rail projects by reducing diesel-powered public transport, improving technology at existing thermal plants, completing railway electrification, moving faster on the BSVI transition across the automobile industry, among others, the brokerage said.

Source : PTI

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FEBRUARY 2022

INTERVIEW

MR. HONEY RAZA Sales Head

Ginlong (Solis) Technologies

EQ: What is Ginlong Solis’s highest commissioned capacity in India? HR: At present in utility we are having 70MWs plant which is getting part commissioned in Assam. Considering the rooftop installation we have various 8MW to 10MW plants which are running very well across various geographies of India. Total capacity is now 2GW with more than 1 lakhs of inverters supplies so far. Globally we have supplied 20GW+ shipments. EQ: What new products will Solis introduce to its Indian customers? What are the key products introduced in India Renewable Leadership Summit? HR: Recently we have launched our off grid product in the range of 4k – 5k. These product are the having top notch design which can support Solar PV, Grid or any other generation source and External Battery pack. It can operate in conditions where there is no grid at all and can also be used to optimize the overall system efficiency by drawing minimum power from grid with no export. Another advantage for these products is the compatibility with both Lead Acid and Li-on batteries with a variety of battery brands . Product is also having the most required feature of one click fast charging. It Supports 1PH Parallel Connection- Support max 1p units parallel connection on 1PH System & Support 3PH Parallel Connection- which Support Balanced/Unbalanced parallel connection on 3PH System. Max total 10 units per system.

100 EQ FEBRUARY 2022

EQ: Will EVs become a viable choice for mass adoption in the absence of cheaper energy storage technologies? HR: I think with the new policy liberalization on EV Charging stations from the central government, the flexibility of setting up the EV charging station shall be eased which is a step closer towards mass adaptation. Also I am counting on the PLI schemes to make a sustainable eco system for energy storage technologies. EQ: Which technology, in your opinion, will lead the solar inverter industry in the future? HR: I still perceive Grid Tied segment to perform well as compared to other technologies. The reason is evident from the fact that the current storage capacity is limited also the technology is already proven one. The rooftop has great penetration because of various support reasons be it a land or system’s modularity. Simultaneously Utility projects are very well adoption the string inverters which can provide better efficiency and optimize the overall O&M cost. This translates in lowering the LCOE cost of the plants.

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INTERVIEW EQ: What is the highest rate of Solis inverter performance? Do these inverters perform equally well in all weather conditions? HR: All the inverters from Solis are tested under extreme test conditions like temperature test like heat run or extreme cold conditions. Solis Inverters are designed to endure these climatic extremities. We have experience of working in most toughest terrains or the world. Parallelly we are regularly sharing our knowledge sharing segment where installers and end users can get to know the best practices for handling such equipment. EQ: Do you detect any significant distinctions between the Indian and other large markets when it comes to inverters? What do you consider to be your most significant market challenge? HR: India has done very well last year in 2021 if you compare with US or Australia. Europe, Brazil and China Domestic market is still doing well which has support us in overall better revenues. We expect there would be a slight slowdown in Q1, 2022 due to the expect BCD on modules announcement but despite this I am bullish on the total installation to be done this year. Certainly, it would take some time to overcome this taxation change. Overall around increase of 30% capacity as compare to last year, would be figure which would be decent one. EQ: Can you tell us about Ginlong Solis’ response to the COVID19 pandemic, the following lockdown, and any financial consequences? HR: During the reporting period, COVID-19 brought some inevitable pressure and challenges to Ginlong Solis. However, the company’s capacity rapidly recovered increased to seize more domestic and foreign market share through the positive response of the company.” Ginlong Solis pointed in the announcement that due to the recent rapid recovery of overseas market demand, the shareholders of listed companies will increase significantly during the reporting period.

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As a leading manufacturer of string inverters, Ginlong Solis has achieved steady growth in recent years. In Q3 of last year the company reported its strongest ever quarter. Yiming Wang, the president of Ginlong Solis, said that the company has launched some new products since Q3 of 2019. At the same time, the company promoted sales in traditional and emerging markets with marketing channels and marketing teams. Solis expansion into overseas markets continues to increase with the growth of Ginlong Solis’s overseas offices, the company’s product improvements, new technology response and competitive prices. As a result, , Ginlong Solis boosted its global market share. In Q3 of 2020, since there is no time limit for pre-installation of residential systems, the average monthly installation numbers continue to grow. Sales of commercial inverters are growing rapidly as component and system costs continue to come down. “We expect several markets may exceed 1GW each year, and there will be a gradual improvement over time as installations accumulate and years of use grow. EQ: What are your plans in India over the next two years? Is there anything new you’re intending to release in the first half of 2022? HR: We are aggressive about the India market and so is the response. We are very strong in residential and C&I with the total installation, that’s why we are the No 1 Solar Inverter Company of India, and achieved almost 80% growth as compared to last years overall. Projects with our utility product of 255k picking up very fast with total installation around 300MW by FY 2021. Next two years we are planning to achieve 80% to 90% growth. This year we are also in process to launch many more products in storage and Utility segments. Utility product shall be of higher capacity than our present product with more advanced features.

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