EQ Magazine August 2018 Edition by EQ Int'l Solar Media Group

I N T E R N AT I O N A L

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CONT EN T

VOLUME 10 Issue # 8

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

52 ELECTRIC VEHICLE

ELECTRIFYING INDIA: Building Blocks For A Sustainable EV Ecosystem

DISTRIBUTED SOLAR PROJECTS

Amazon to install solar rooftops at fulfilment sort centres

30 DISTRIBUTED SOLAR PROJECTS

Budweiser beer maker AB InBev goes green; inks pact...

August 2018

The Rise Fund, a Global Impact Fund Managed by...

Restriction on use

BUSINESS & FINANCE

The data and information presented in this magazine is provided for informational purpose only.neither EQ INTERNATINAL ,Its affiliates,Information providers nor content providers shall have any liability for investment decisions based up on or the results obtained from the information provided. Nothing contained in this magazine should be construed as a recommendation to buy or sale any securities. The facts and opinions stated in this magazine do not constitute an offer on the part of EQ International for the sale or purchase of any securities, nor any such offer intended or implied The material in this magazine is protected by international copyright and trademark laws. You may not modify,copy,reproduce,republish,post,transmit, or distribute any part of the magazine in any way.you may only use material for your personall,Non-Commercial use, provided you keep intact all copyright and other proprietary notices.If you want to use material for any non-personel,non commercial purpose,you need written permission from EQ International.

INDIA

INDAI

India to auction 40 GW renewables every year till 2028

DNV GL partners with the EU and Government of India to bring ...

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Mr. Sunil Rathi

ENERGY STORAGE

Director Sales and marketing Waaree Energies ltd

PV FLOATING PLANT

The New Rules Of Competition In Energy Storage

Floating Pv Plant

08 10

TECHNOLOGY

Thin-film solar charging pack to provide charging anywhere ...

Delta Launches String Pv Inverter M125hv Series With Industry...

24 BUSINESS & FINANCE

Gujarat Borosil Ltd to enhance production to meet rising...

TECHNOLOGY GoodWe Rocks the Market with Launch of New Smart Inverters and Energy...

19 BUSINESS & FINANCE

REC commits USD 1 mn to International Solar Alliance

16 Energy Storage Raasi Group to manufacture India’s first Indigenous Lithium-ion cell...

PV MANUFACTURING

40 RESEARCH & ANALYSIS China’s solar policy change triggers another cycle of price pressure

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What happens when low quality, unproven materials are used in solar panels?

RAHUL KHATRI Technical Manager, DuPont Photovoltaic Solutions

EQ NEWS Pg. 07-31

August 2018

LONGi Solar is a world leading manufacturer of high-efficiency mono-crystalline solar cells and modules. The Company is wholly owned by LONGi Group. LONGi Group (SH601012 )is the largest supplier of mono-crystalline silicon wafers in the world. Armedand powered by the advanced technology and long standing experience of LONGi Group in the field of mono-crystalline silicon, LONGi Solar has shipped approximately 4.6GW products in 2017. The Company has its headquarters in Xiâ&#x20AC;&#x2122;anandbranches in Japan, Europe, NorthAmerican, India and Malaysia. With strong focus on R&D, production and sales & marketing of mono-crystalline silicon products, LONGi Solar is committed to providing the best LCOE solutions as well as promoting the world widead option of mono-crystalline technology.

6Â

August 2018

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India Expo Centre

18-20 Sep. REI 2018 Huawei Booth: 3.61

TECHNOLOGY

Enphase Energy to Acquire SunPower’s Microinverter Business Enphase Energy to Acquire SunPower’s Microinverter Business PETALUMA, Calif. and SAN JOSE, Calif.: Enphase Energy, Inc. (NASDAQ:ENPH), and SunPower Corporation (NASDAQ:SPWR), announced a definitive agreement for Enphase to acquire SunPower’s microinverter business for $25 million in cash and 7.5 million shares of Enphase common stock. Key highlights of the acquisition include: • Advances AC Modules (ACM) as the future of residential solar • Enhances SunPower’s Equinox™ Home Solar System with a custom line of Enphase’s IQ microinverters for use with SunPower AC Modules • Enphase expects to add $60-$70 million annualized revenue in second half of 2019 at 33%-35% gross margin • Adds over 140 patents to Enphase’s strong IP portfolio • Expects to close by end of the third quarter of 2018 with initial IQ shipments in the fourth quarter • $25 million cash to be funded from Enphase’s balance sheet in two installments

“We are pleased to become the microinverter supplier for SunPower’s AC Modules,” said Badri Kothandaraman, president and CEO of Enphase Energy. “The IQ 7XS 320W AC microinverter in an ACM strongly complements SunPower’s high efficiency solar cells, communication and racking to create a high performance, high quality and easy-to-use Equinox™ Home Solar System, providing exceptional value to homeowners, dealers and architects.”

IQ 7 is Enphase’s seventh-generation microinverter platform leading the industry with its software-defined architecture, broad regulatory compliance, advanced “Smart Grid” features, and a high fire safety rating. The IQ 7XS microinverter offers 97.5% CEC efficiency and was designed specifically for the SunPower’s X Series 96-cell PV modules with peak AC output power of 320W and a Maximum Power Point (MPP) tracking range of 53-64V. “SunPower customers will continue to see the same quality, high performance that they see now as Enphase exclusively co-develops microinverters for our industry leading residential Equinox solar product,” said SunPower CEO Tom Werner. “As a result of this strategic partnership, SunPower looks forward to benefitting from Enphase’s expertise, allowing us to continue containing costs, leveraging R&D support and helping streamline our business priorities.” The transaction is expected to close at the end of the third quarter of 2018 subject to product qualification and other closing conditions under the definitive asset purchase agreement. Source: Enphase Energy, Inc.

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SolarEdge Presentied Expanded Commercial PV Offering for Improved Scalability and Performance at Intersolar New inverters and a power optimizer will be added to SolarEdge’s commercial PV suite SolarEdge Technologies, Inc. (“SolarEdge”) (NASDAQ: SEDG), a global leader in smart energy, is expanding its commercial solution with the launch of larger-capacity threephase inverters with synergy technology and a multi-input power optimizer in order to further improve the scalability and performance of its commercial PV systems.

olarEdge is increasing the capacity of its threephase inverters by 20% to now include 33kW and 40kW, while the range of its three-phase inverters with synergy technology will now reach up to 120kW. The new range of inverters adds a number of innovative features, including the introduction of SolarEdge’s new user interface for simplified installation and commissioning. In addition, its innovative PID Guard mitigates and prevents the build-up of PID and is fully embedded into the inverter. Furthering the scalability of its commercial power optimizers, SolarEdge is launching its M1500 power optimizer that has two inputs and two MPPTs for connection of up to four panels. The new commercial power optimizer allows for up to 35% more power per string, with strings up to 20.5kW. “After introducing our commercial inverters with synergy technology, we are committed to continuing to enhance the features and capabilities of our solutions through innovation and engineering excellence,” stated Lior Handelsman, VP of Marketing and Product Strategy of SolarEdge, founder. “With the industry looking for solutions to improve the scalability and economics of commercial PV systems, while still benefiting from optimization and high-resolution monitoring, we are leading the way with our new solutions that drive future progress.” Intersolar Europe attendees we wwwre invited to visit the SolarEdge booth, located at Hall B3, Booth 110, to meet with local and global members of our management and sales teams, learn more about SolarEdge’s newest product offerings, and participate in daily booth tours. Source: solaredge

August 2018

TECHNOLOGY

Thin-film solar charging pack to provide charging anywhere anytime; Thin-film solar backpack to provide users with worry-free mobile charging capacity At the Asia Consumer Electronics Show (CES) held in Shanghai on June 13th, 2018, Hanergy, a pioneering multinational clean energy company, unveiled two of its innovative, next-generation mobile energy solutions:

hin-film solar charging pack, an on-the-go electricity generator and storage device; and a thin-film solar backpack, equipped with thin film solar panels for on-the-go charging of personal electronics. As one of Hanergy’s star products, the thin-film solar charging pack drew significant attention at 2018 CES Shanghai. In terms of physical design, Hanergy’s thinfilm solar charging pack delivers an accent of high-tech, offering colors in Digital Grey, Gem Gold and Lady Rouge for options. The free-folding thin-film solar charging pack’s lightweight form provides users with convenient features such as “one-grip to go”. With its world-leading flexible thin-film solar technology, Hanergy’s thin-film solar charging pack adopts a split-body design which allows it to work regularly even under shadows, and in low light and low temperature environments. Not just an electricity generator, the thin-film solar charging pack also serves as a real-time power bank equipped with 5000mAh of capacity. Also, the thin-film solar charging pack can connect to multiple devices wirelessly. Moreover, designed to meet aviation management requirements, the thin-film solar charging pack is

August 2018

permissible to take on commercial flights. Hanergy’s new-generation thinfilm solar backpack is designed with the needs of a youthful, plugged in generation in mind. Whether travelling abroad, in the great outdoors, or just out and about in the city, the thin-film solar backpack allows its user a constant source of electricity for key electronics like mobile phones and computers. Rather than carry around a mobile charger pack or a tangle of charging cables, users can simply plug in their device to USB ports located inside the bag and on one side of the straps. The thin-film solar backpack combines even greater charging and energy saving capacity with a fashionable, youth-friendly design. The new model is athletic and sleek in appearance, with a hard exterior for protection of the equipment inside. While extremely durable, the new thin-film solar backpack also uses a light and flexible Hanergy MiaSole microchip, which converts and stores solar energy as the user walks around outside. With this store of energy, the user can charge his or her device on the go – an iPhone X, for example, can be charged to from 0 to 50% in just 75 minutes.

“We are very pleased to release our next generation thin-film solar backpack, which we are confident will resonate with consumers for its ingenious integration of fashionable design with environmentally friendly thin film solar chips,” said Zheng Di, Hanergy’s product president. “Our thin-film solar backpack will provide a convenient solution for young people in our increasingly mobile and networked society who need access to their devices at all times.” Zheng said users can also charge the backpack when they’re indoors and without sunshine, as there’s a battery inside the backpack. The latest products will be on Hanergy’s online shop within July, according to Zheng. Along with its thin-film solar backpack and thin-film solar charging pack, Hanergy has been pursuing an impressive range of innovative mobile energy solutions that are disrupting the global clean energy industry. Source: Hanergy

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August 2018

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TECHNOLOGY

Delta Launches String PV Inverter M125HV Series with IndustryLeading Efficiency up to 99% at Intersolar Europe 2018 Delta, a global leader in power and thermal management solutions, LAUNCHED ITS new 1,500 Vdc string solar PV inverter M125HV series alongside a broad portfolio of energy-saving lithium-ion battery energy storage solutions at Intersolar Europe.

he M125HV is designed to optimize the productivity of solar PV power plants as it featuresindustry-leading peak efficiency up to99%, 125kVA of maximum output power, active cooling, and an electromagnetic interference (EMI)-proof design. With extensive expertise in developing high-efficiency power electronics and integrating energy-saving solutions, Delta is uniquely positioned to facilitate solar PV power generation and energy storage projects.

New H4A & H5A FLEX string inverters for residential applications With its new Flex series, Delta is offering 4kVA and 5kVA single-phase string inverters for residential applications. The new models have the same compact dimensions as their predecessor, the H3 Flex 3kVA, yet at considerably higher power densities. Integrated wireless communications allow for remote commissioning and monitoring using the MyDeltaSolar app, which is available for Android and iOS mobile devices.

• 2 MPP trackers and ultra-wide 30-550 V input voltage range

• Rugged IP65-rated die-cast aluminum chassis and enclosure

• High peak efficiencies of up to 98.3% • Convenient AC and DC cabling with included plug-in Andreas Hoischen, head solar PV inverter sales for Delta in Europe, the Middle East & Africa (EMEA), said, “High-power utility-scale string inverters are currently transitioning from 1,000 Vdc to 1,500 Vdc. These new systems allow for longer strings, resulting in fewer combiner boxes, less wiring, less trenching, and significant balance of system cost savings. Our new M125HV series inverters for 1,500 Vdc systems, for instance, can reduce levelised cost of electricity by enabling higher-voltage arrays. That’s a huge advantage for solar developers, EPC contractors, and of course investors.”

connectors

The ES30 series commercial battery energy storage system Commercial photovoltaic systems use Delta ES30 battery storage systems for peak-shaving and peak-shifting to limit feed-in power to the grid and maximize the portion of their PV power generation that they consume themselves to lower electricity costs. ES30 systems also stabilize grid voltage and can be installed in parallel for modular expansion.

• Three-phase, 90kWh lithium-ion battery energy storage system rated at 6000+ cycles

• For commercial and industrial applications • AC-coupled, mounts in a standard 19” rack • Modular design scales from 6kWh to 90kWh battery capacity

• 30kW power conversion system with 0.99 AC output power factor

• Integrated battery management for over 2 hours continuous power

Hybrid E5 residential battery energy storage system Storage systems for residential and commercial photovoltaic installations are another trend reflected in Delta’s product portfolio on display at Intersolar Europe 2018. The company’s ES30 and Hybrid E5, for instance, lower costs for residential and commercial operators by increasing the amount of solar power a facility or residence can consume itself instead of feeding it into the grid. Another industry-wide trend Delta is helping to define is smart energy management enabled by technologies such as integrated connectivity. The Hybrid E5 energy storage system, for instance, combines an E5 hybrid inverter with an external 6kWh lithium-ion battery, power meter, and a smart monitor. Rounding out the Delta exhibition is its latest power conditioning products, which improve the quality of the solar power supplied to electrical equipment. Technical highlights of the Delta technologies on display are listed below.

August 2018

The Hybrid E5 energy storage system consists of an E5 hybrid inverter in combination with an external cabinet equipped with a 6kWh Li-ion battery module, a power meter, and a smart monitor. The Hybrid E5 boasts high DC charging efficiencies of up to 95% between the PV array and the battery.

• Simplified installation with separate inverter and cabinet • The smart monitor controls the E5 inverter and battery and sends data to mobile graphic interface

• High peak efficiency (PV to grid) of 97.2% and

nominal continuous power output of 5.0kW Source: deltaww

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TECHNOLOGY

Canadian Solar launches the next generation solar modules:

bifacial, high power density and over 400 W poly HiKu modules at Intersolar Europe Canadian Solar Inc. (the “Company”, or “Canadian Solar”), one of the world’s largest solar power companies, announced the global launch of its next generation solar modules at Intersolar Europe which were be held from June 20 – 22, 2018 in Munich, Germany. The Company’s Chairman and CEO Dr. Shawn Qu INAUGURATED BiKu, HiKu and HiDM modules during an exclusive event.

anadian Solar’s BiKu modules are at the forefront of high efficiency dual-cell bifacial modules in the industry. Its poly bifacial modules have up to 365 W power output on the front side and 75% bifaciality. It can increase energy yield by up to 30% with backside contributions under certain albedo, thus lowering LCOE dramatically. Canadian Solar’s BiKu modules will certainly help you maintain IRR on your project investment, in case project PPA decreases year after year. HiKu poly modules are developed specially for utility market with power output exceeding 400 W. This product uses the latest high efficiency cell technology, coupled with Canadian Solar’s Ku module technology. HiKu modules can reduce EPC cost of solar projects in terms of lower BOS and installation costs.

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HiDM (High-Density Module) is the shingle-type of module with Canadian Solar’s unique IP-granted design features. It enhances module power density with module efficiency reaching up to 20.2%. The power output of a 60-cell mono HiDM module can reach 335 MW, about 10% higher than a standard full cell mono PERC module. In addition, the design of HiDM modules have much better physical appearance and less shadow effect on electricity generation. HiDM modules, with high wattage, appealing aesthetics and good shading tolerance, are one of the best products for rooftop systems where the space is limited and where shadowing is unavoidable. BiKu, HiKu and HiDM modules will be on display at Canadian Solar Booth A1.480 during Intersolar.

August 2018

TECHNOLOGY

GoodWe Rocks the Market with Launch of New Smart Inverters and Energy Management System Top 10 global inverter supplier GoodWe has officially launched three new products at Intersolar Europe among great expectation.

he new GoodWe DS3 Series is the first singlephase on-grid inverter in the market compatible with bifacial double-glass modules. Awarded with the prestigious Red Dot Design Award for its beautiful aesthetics and user-friendly design with a color touch screen display, the DS3 Series inverter is also 30% lighter for easier installation both indoors and outdoors. Furthermore, DC oversizing of up to 35% and AC overloading of 10% is allowed. Thanks to its reliable performance, the DS3 Series can reach a highest efficiency of up to 98.6%.

he three-phase high voltage energy storage inverter GoodWe ET Series enables enhanced energy independence and maximizes self-consumption through export limit feature and time of use shifts for reduced electric bills. Covering a power range of 5 kW, 8 kW and 10 kW, the ET Series allows up to 100% oversizing to maximize power output and features Uninterruptible Power Supply (UPS) to inductive loads such as air conditioners or refrigerators with an automatic switchover time of less than 10 milliseconds, providing grid-tied savings when the grid is up and off-grid independence and security when it is down or compromised.

oodWe Smart Energy Management System (SEMS) is a comprehensive platform for visualizing and monitoring all kinds of power plants. The main focus of the system is to improve O&M efficiency by establishing an intelligent warning system which provides quick troubleshooting solution to underperforming power plants. SEMS also generates customized charts and tables to facilitate data analysis. This cost-free system will allow customers to overview their power plants via web or smartphone application.

he product launch ceremony was attended by Ulrike Therhaag, Vice President of TÜV Rheinland’s solar operations, who praised GoodWe’s focus on quality and technological innovation. GoodWe has been recognized as the winner of the “All Quality Matters” award for its innovative PV generation and energy storage solutions for three consecutive years. With years of experience and significant investments, GoodWe can offer a comprehensive portfolio of products and solutions for residential, commercial and utility scale PV systems an in-house R&D team of 200 people, technical ability and an advanced quality control system.

“we are proud to launch our new inverter solutions and smart energy management system, which place GoodWe at the forefront of new solar technologies,” stated Huang Min, CEO of GoodWe. “With our wide range of inverters for residential, commercial and utility scale projects together with our Smart Energy Management System, we believe GoodWe has now the most comprehensive and compelling solar power solutions in the industry.” Source: goodwe

August 2018

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August 2018

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Energy Storage

Triton Solar Brings Redundant and Affordable Solar Based Power Backup Solution to India

Batteries hasten winds of change for electricity stocks -Barron’s

Triton brings user-friendly and pocket-friendly Backup Solutions From 10KWH to 10MWH of requirements. The offering is live for entire India. From common households to manufacturing units to small commercial setups to mission critical healthcare institutions, Triton’s offerings covers customers of almost every size and type.

After a decade of steep cost declines, wind and solar installations, often paired with battery storage, are increasingly displacing older coal and gas-fired power plants, benefiting battery makers and some utilities, the Barron’s cover story said.

ew Jersey Based Triton Solar LLC, known for making innovative solar panels and solar energy based products, has made a remarkable introduction of their Solar based Power Backup solutions for the Indian market. The Triton’s unique Power Backup solution comes as a service offering delivered on easy monthly rental plans. With this offering from Triton Solar, customers can avail the solar-based power backup solution for all their power needs including mission critical and regular household operations on an extremely affordable rental plan. For example, a 10KWH backup solution can be offered at a very appealing monthly rental plan.

Commenting on the landmark offering for the Indian consumers, Himanshu B. Patel, Founder Chairman of Triton Solar stated, “Power availability in India is a subject of very critical importance. At Triton, we always focused on creating a robust, innovative and affordable solution for the power backup. In our bid to innovate, we used our unique printed solar panel technology and designed a robust working model which can be installed at the customer premise. The entire solution will be offered in a package of service which will ultimately at affordable cost considering a strong mass appeal.” The solar backup solution is offered to the customer on a simple monthly rental plan and the customer doesn’t need to pay any amount upfront for the installations.Conventional power backup solutions have a lot of limitations. The biggest challenge of fuel consumption followed by the crisis of air and noise pollution makes it incomparable with Triton Solar’s Power Backup solution. “In addition to the above-mentioned points that make the conventional power backup solutions very unaffordable and costly the overall experience of power backup is usually not so good in the diesel based power generators. For example, whenever the power goes down, our back solution takes less than 5 mile-seconds to switch over. Imagine a hospital or even a manufacturing facility where the availability of power means everything, our solution give almost a seamless experience whenever power switching takes place,” says Himanshu B. Patel. The solution can start from 12 KV and it goes up 10 MW. “From households to commercial setups, including high voltage mission-critical requirements for facilities such as data centers, healthcare institutions, schools, commercial places, manufacturing facilities and so on our solution is a one-stop redundant solution that fits all,” he further commented.

igger, better batteries are speeding up change in the U.S. electricity sector and could help power a rally in Xcel Energy Inc, American Electric Power Co Inc and other utility and renewable energy stocks, Barron’s reported. After a decade of steep cost declines, wind and solar installations, often paired with battery storage, are increasingly displacing older coal and gas-fired power plants, benefiting battery makers and some utilities, the Barron’s cover story said.

Batteries can now store enough electricity to help power small towns when wind and solar supplies ebb, Barron’s said. The United States is expected to install more than 35 megawatts of battery storage through 2025, which could save more than $4 billion in annual operating costs, Barron’s said, citing the Washingtonbased Energy Storage Association trade group. Minneapolis-based Xcel plans to draw 45 percent of its power from renewables by 2027, up from 23 percent currently. While the stock is down 11 percent this year, its performance has beaten the S&P 500 Index over the past 10 years, Barron’s said. American Electric is reducing its reliance on coal and holding gas generation steady, while ramping up wind and solar, in part through the $4.5 billion Wind Catcher project in Oklahoma, which claims to be the largest U.S. wind farm, Barron’s said. The paper also said NextEra Energy Inc, of Juno Beach, Florida, was combining 100 megawatts of solar capacity with 30 megawatts of battery storage at a project in Arizona. Investing in battery makers directly is complicated, since Panasonic Corp, Tesla Inc and other big makers come with a range of revenue streams. Utility stocks are under pressure as rising bond yields steal some of the appeal of dividend yields. But the outlook is improving for many companies in the Utilities Select Sector , Barron’s said. Reuters recently reported that a growing number of U.S. utilities are shutting fossil-fuel plants and have no plans to build combined-cycle natural gas power stations, because renewables are so much less expensive, posing problems for power plant makers such as General Electric Co. Source: reuters

August 2018

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TECHNOLOGY

JA Solar Named “Top Performer” by DNV GL for the Third Time JA Solar Holdings Co., Ltd. (Nasdaq: JASO), a world leading manufacturer of high-performance solar power products, announced that it was awarded the “2018 Top Performer” by DNV GL, a world renowned independent energy experts and certification institute.

his is the third time that JA Solar received the award. In both 2014 and 2016, JA Solar passed the product tests and received the product certification from PVEL (a wholly-owned subsidiary of DNV GL) and won the “Top Performer”. DNV GL enjoys strong reputation in the photovoltaic industry. Its annual PV Module Reliability Scorecard Report covers the testing and analysis of module products from various manufacturers, and is considered the most comprehensive assessment of PV module reliability. The honor of “Top Performer” is based on DNV GL’s PV Module Reliability Scorecard. The reliability test covers the complete life cycle of products, which encompasses IEC thermal cycling, damp heat, ultraviolet radiation, dynamic mechanical

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load, PID attenuation and hot spot testing. The test results provide potential PV equipment buyers and power plant investors with authoritative references. JA Solar is committed to the research and development of mass-produced, high-efficiency solar modules, which can effectively reduce the levelized cost of electricity (LCOE). Whether it is the development and mass production of PERC products, or the introduction of 1500V and bi-facial PERC double-glass modules, JA Solar has always been at the forefront of the industry. DNV GL’s “Top Performer” honor further demonstrates JA Solar’s technical strength and ability to provide high-performance, high-reliability solar products.

August 2018

Energy Storage

Raasi Group to manufac-ture India’s first Indigenous Lithium-ion cell Raasi Group (Raasi Solar Energy Pvt Ltd) signed an agreement with CSIR-Central Electrochemical Research Institute (CSIR-CECRI) Karaikudi, Tamil Nadu to codevelop Lithium-ion cells under the Public Private Partnership (PPP) model.

t present, India has no domestic manufacturing of Lithium-ion cells and millions of Lithium-ion cells are consumed every month, making it the highest annual negative net exports of Lithiumion batteries in 2017 for nearly $150 million.

“We want to bring down the cost of cell manufacturing below to compete with Lead Acid Battery. We also have plans to make Lithium-ion battery for solar rooftop with a life span of 25 years to make it affordable enough to drive the Photo Voltaic segment,” Raasi Group Chairmancum-Managing Director C Narsimhan said. CSIR-CECRI has developed an indigenous technology of Lithiumion cells in partnership with CSIR-National Physical Laboratory (CSIR-NPL) New Delhi, CSIR- Central Glass and Ceramic Research Institute (CSIR-CGCRI) Kolkata and Indian Institute of Chemical Technology (CSIR-IICT) Hyderabad. CSIR-CECRI has set up a demo plaint in Chennai to manufacture Lithium-ion cells. Under this partnership, Raasi Group will take it to the next level with an integrated approach to scale up the manufacturing and test it as per international standards in ESS and EVs. It is a joint co-development activity where CSIR-CECRI will contribute for technology development while Raasi will provide industry inputs and scale up mass production of Lithium-ion cells.

“I dedicated my whole career working towards the indigenous Lithium-ion cells technology and was hoping that this day will finally come for India,” CSIR-CECRI’s head of Lithium-ion program Dr. S Gopukumar said.

August 2018

Speaking after the signing of MoUs, Union Science and technology minister Dr. Harsh Vardhan said: development is a validation of the capabilities of CSIR and its laboratories to meet technology in critical areas to support our industry, besides other sectors.”

“It will give tremendous boost to two flagship programmes of Prime Minister Narendra Modi – increasing the share of Clean Energy in the energy basket by generating 175 Giga Watts by 2022, of which 100 Giga Watts will be Solar and the second, National Electric Mobility Mission, to switch completely to electric vehicles by 2030,” said Dr. Harsh Vardhan. The project, the minister said, is also in tune with PM Modi’s vision of Make in India” to turn the country into ” a manufacturing hub and to cut down outflow of foreign exchange.” Product Range: CSIR- CECRI’s cell fabrication plant has the capability to produce the most popular 18650 cylindrical cells as well as pouch cells. Based on current strength of fabrication plant, in the first phase Raasi Group will scale up the manufacturing of 18650 cylindrical cells of 3.7 V / 2.5 Ah, Pouch type of 3.7 V / 3 Ah and 5 Ah. It will be followed by manufacturing of Prismatic cells.Raasi Group’s vision is to make Lithium-ion cells more affordable for easy adoption of Lithium-ion based Electric Vehicles (EV) and Energy Storage Systems (ESS). Apart from affordability, other factors such as reliability, durability, safety and fast charging capabilities are to be focussed on. Electric vehicle applications are vast, it can replace any vehicle that runs on petrol or diesel, be it a truck or a bulldozer. Fossil fuels powered vehicles contribute to the global warming and Electric Vehicles can put a stop to that. Energy Storage applications are endless, ranging from hearing aid to container sized batteries to power a cluster of villages. Lithium-ion batteries can power any electrical application without the need of physical wires, meaning can be anything wireless.

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August 2018

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BUSINESS & FINANCE

GIC, ADIA to put $450 million into Greenko Hot on the heels of the billion-dollar acquisition of Orange Renewables, Greenko’s key shareholders GIC of Singapore and Abu Dhabi Investment Authority (ADIA) have agreed to infuse another $450 million to bankroll the company’s next phase of growth.

his involves 15 GW of integrated, round-the-clock renewable assets combining hydro, wind and solar with the latest storage technologies. This will be the largest single round of capital raising by a green energy company in India, overshadowing previous initiatives by Re-New Power Ventures that received $247 million in April for Ostro Energy’s buyout. Greenko Group announced the acquisition of Orange Renewable from Singapore’s AT Capital Group at an enterprise value of $1 billion. ET reported this ahead of the announcement. After this round, both investors will have cumulatively invested $1.3 billion with GIC alone putting in $1 billion since 2015 in four rounds.

Addressing Needs of Discoms

GIC will remain the controlling shareholder with a 60% stake. The two first-generation founders, Anil Kumar Chalamalasetty and Mahesh Kolli, control about 25% while ADIA holds the remaining 15%.

} } “We will not pursue standalone renewable assets. Our focus for the next three-five years will be on building integrated round-theclock renewable energy which can compete with base load curves to address the real needs of the discoms when our Indian energy market is transitioning from a deficit market to a real demanddriven market,” Greenko group CEO Chalamalasetty told ET. “Our new assets will compete with conventional coal energy projects on quantity, quality and cost. We are working on building 15 GW round-theclock renewable assets that will deliver 3GWs of base load. It’s a unique proposition but is required.”

POWER OF THREE

The plan is to have three strategic “integrated asset class” assets — one in the north and two in the south that are dispersed across the country to create a bundled form of energy supply. Most of the incremental investments will go into storage technology.

In recent months, there has been a big drop in new base load capacity addition while existing capacities have been operating at half of their rated levels. Close to 40 GW of base load assets are facing coal supply crunch or other disruptions. Gujarat recently saw a base load drop of 5GW. As a result, spot prices on the electricity exchanges have spiked to Rs 11-12 per unit from Rs 3 per unit earlier. Renewables are a 5-10% additional energy source on top of the base load powered by coal and gas. The challenge facing India power grids is the base load and clean energy on its own cannot be a replacement.

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“Renewable got the tag of cheap energy but it is destabilising the grid. Coal is of course firm energy but in the last few months both crude and coal prices have gone up. We don’t have a fixed-price, inflation-protected energy,” said Greenko joint managing director Mahesh Kolli. “In most markets, gas acts as a flexible base load energy to support renewables but we do not have that option with domestic gas and LNG imports cannot be a cheaper alternative either, so the discoms are all feeling the heat of this. We think we can create value — the capital infusion will support that growth plan.”

The Central Electricity Authority (CEA) reported a month ago that the more renewable energy is pumped into the distribution networks, the more expensive it gets for the grid. According to its calculations, every unit of energy from renewables is costing the discoms an incremental Rs 2 to Rs 2.50 per kilowatt hour.

August 2018

“We will be integrating multiple storage technologies like batteries, hydro, with wind, solar and hydro and creating an integrated round-the-clock (RTC) renewable energy asset class to meet the discoms’ cost-effective base load energy growth needs while meeting the future Renewable Power Obligations targets,” said Chalamalasetty. Most of the investments will go into storage technology. Battery prices are coming down but pumped hydro storage is becoming an important asset class. “It’s common in Europe and also in Tehri Dam where during off-peak time, you pump to bring the water levels up and vice versa during peak hours,” Chalamalasetty said.

NEW STRATEGY However, the existing portfolio of 4.3 GW, inclusive of Orange, will not be part of this since they already have signed power purchase agreements (PPAs) with state utilities while the new assets will be meant for supplying to the national power gridNSE -1.41 % at high voltage. Ever since losing the opportunity to acquire Reliance’s Mumbai power distribution business to Adani in 2017, Greenko has planning this new strategy, the executives said. Construction work is slated to begin later this calendar year. Commenting on the Orange acquisition, the biggest by the company so far, Kolli said more than scale it was the geographical complementarity that helped. “We are working with a large cluster approach in states where we operate,” he said. “Adding the (Orange) portfolio within those clusters is part of our business model. We did not acquire Orange because it has a gigawatt size portfolio, but because of the assets meeting the Greenko’s operational and financial benchmark returns.”

Source: economictimes.indiatimes

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REC commits USD 1 mn to International Solar Alliance State-run power sector financier Rural Electrification Corporation (REC) announced its commitment of USD 1 million to International Solar Alliance (ISA). “In view of the World Environment Day 2018, REC contributed USD one million to the International Solar Alliance (ISA) becoming a corpus contributor,” an REC statement said.

EC Chairman and Managing Director P V Ramesh handed over the cheque to Interim Director General of ISA Upendra Tripathy in the presence of the Power Minister R K Singh, RECs Director (Technical) S K Gupta and other senior officials from the two organisations. The pact was inked on June 4 at the World Environment Day exhibition at Vigyan Bhawan in New Delhi.

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Ramesh said, The REC is extremely proud to partner with ISA and promote sustainability through global collaboration, especially with India hosting the World Environment Day this year. The REC finances projects throughout the power sector value chain and has been focussing on increasing its renewable energy portfolio as well as venturing into the e-vehicle and storage infrastructure.

Source: PTI

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August 2018

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India Sees Record Low Solar Prices Returning on China Reforms India may be the biggest beneficiary of solar industry reforms in China that are poised to reduce prices for photovoltaic panels.

hina announced recently it was halting approvals of some new solar projects this year and cutting subsidies to developers to ease its pace of expansion. That’s expected to slow demand in the world’s biggest market, weakening prices, and force the country’s manufacturers to ship more panels overseas. Tariffs in India’s next solar auction scheduled for mid-June may fall below the 2.44 rupees per kilowatt hour record set May 17 last year, said Sanjay Sharma, general manager at Solar Energy Corp. of India, the agency responsible for implementing India’s renewable targets.

“India will be a big beneficiary of a fall in module prices,” said Vinay Rustagi, managing director at solar research firm Bridge to India. “If China’s demand weakens as expected, module prices should come down dramatically in the second half of the year and into the next.” India is seeking to boost its clean energy generation as Prime Minister Narendra Modi has pledged to double India’s renewable power capacity to 175 gigawatts by 2022, a target second only to China, as part of his plan to spearhead global efforts to combat climate change.

India’s maximum annual solar-cell manufacturing capacity is about 3 gigawatts while average yearly demand is 20 gigawatts, meaning the remainder needs to be procured on the international market, according to a December statement from India’s Ministry of New & Renewable Energy. The price of modules imported from China is expected to fall at least 10 percent from current levels of $0.31 per watt, according to Sunil Jain, chief executive officer at International Finance Corp.-backed renewable developer Hero Future Energies Ltd. “Cheaper prices may boost installations in countries that see grid parity, like India,” Sebastian Liu, director of investor relations at JinkoSolar Holding Co., the world’s biggest solar panel maker.

August 2018

Vijay Shekhar Sharma, Shailesh Vickram Singh unveil green fund

The fund will target environmental problems in the areas of food and agriculture, air and water pollution, renewable energy, recyclables such as e-waste and plastic, mobility, and sustainable development.

aytm chief executive Vijay Shekhar Sharma and serial entrepreneur and venture capitalist Shailesh Vickram Singh, launched an environmental protection fund, which will look to invest in startups, companies, and individuals working to mitigate pollution-related problems in the country. The ‘Massive Fund’ will target environmental problems in the areas of food and agriculture, air and water pollution, renewable energy, recyclables such as e-waste and plastic, mobility, and sustainable development. Investments made from the fund will be aligned with the United Nations Sustainable Development Goals. The fund aims to invest up to $150 million in projects built by startups, companies and individuals over the next few years. The fund also aims to build an ecosystem for reducing pollution by partnering with the academia, research and development labs, mentors, professionals and venture funds across the country. Massive Fund will raise capital from institutional and high net-worth investors, with the objective of saving the environment. The fund has also formed an incubator, called GoMassive, which will work closely with educational and research institutions such as NRDC, IIT-Delhi and IIMLucknow, besides Sustainable India Finance Facility (SIFF). GoMassive will run boot camps and hackathons across Delhi, Hyderabad, Mumbai and Bengaluru to mentor young start-ups.

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According to Sharma, there is a lot of room for bringing in technological solutions for reducing pollution. “Through this initiative, we will provide adequate funding for innovations that can reduce air, water and plastic pollution efficiently and on scale. We need the brightest funds, adequate capital and economic resources to tackle this massive problem of pollution that we are staring at. Our efforts, through this fund, will be to ensure that capital does not get in the way for innovative solutions to beating pollution,” he added.

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“We aim to encourage young entrepreneurs to innovate and build solutions such as pesticide-free food, plastic removal, biodegradable packaging, CO2 absorption, pollution-free cities and sustainable housing, which are crucial for our well-being. We will support our portfolio companies with high-end R&D labs and take insights from research institutes, scientists and the academia. We will also facilitate interactions with large industrial conglomerates to validate and utilise their new-age tech solutions,” said Singh, managing partner, Massive Fund. Source: livemint

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ISA plans global solar bank to finance $150 billion of power projects ISA will circulate a concept note for the solar bank to all 8 multilateral development banks with which the first treaty-based organisation has signed joint declarations

The International Solar Alliance (ISA) plans to approach multilateral development banks (MDBs) such as Asian Infrastructure Investment Bank (AIIB) to create a special purpose vehicle (SPV) to specifically finance solar projects, said the alliance’s interim director general, Upendra Tripathy.

he concept note for the solar bank will be shortly circulated by ISA to all eight MDBs with which the first treaty-based international government organisation based in India has signed joint declarations. The idea of a solar alliance was mooted by Prime Minister Narendra Modi during the India-Africa Summit in Delhi in October 2015. ISA has inked joint declarations with the World Bank, African Development Bank, Asian Development Bank, AIIB, New Development Bank, European Investment Bank, European Bank for Reconstruction and Development and the Green Climate Fund (GCF) for enhancing cooperation in the solar energy area. The proposal for a World Solar Bank comes against the backdrop of ISA’s mission to undertake joint efforts required to reduce the cost of finance and the cost of technology, mobilise more than $1,000 billion of investments needed by 2030 for massive deployment of solar energy, and pave the way for future technologies.

“MDBs have a global duty. All of them can come together and show the way,” said Tripathy. ISA also plans to leverage AIIB’s reach to build a global solar energy ecosystem. According to the contours of the initial plan, five common member countries between ISA and AIIB will be identified for financing more solar projects by the Beijing-headquartered bank. ISA also plans to draw up a two-year play book for training manpower, thereby creating local employment in countries where AIIB has financed solar projects. China has a 31.02% stake in AIIB, while India, with 8.72% stake, is the second-largest stakeholder. The first general assembly of ISA will be held in India in October. The marquee event is expected to coincide with the birth anniversary of Mahatma Gandhi and is expected to be attended by representatives of 65 countries, which are signatories to the framework agreement, Mint reported on 18 June. ISA has also been working on a $300-billion risk mitigation fund as part of a strategy to create a sustainable financing architecture for solar projects worldwide. The fund will be used to insure solar power projects against risks such as default in payment by electricity procurers, foreign exchange fluctuations and regime change. This, in turn, will help attract investors to the space.

“We are in touch with them (AIIB). We are trying to develop a two-year action plan. The first thing that we have requested them is to give us the names of the solar projects that they have financed. We are also requesting them to give us a list of projects in the pipeline,” said Tripathi. Aimed at improving “social and economic outcomes in Asia and beyond”, AIIB started operations in January 2016. With 86 countries as members, it has an authorised capital base of $100 billion. Of the $4.39 billion invested by AIIB, India has been the largest recipient, with six Indian projects accounting for $1.21 billion of that funding.

“The idea is that we can tie up with those member countries, where AIIB has sanctioned projects for training of people who will look after these projects…Why projects fail is because there is nobody to take care of them. We are establishing backward linkages,” said Tripathi. “We are trying to identify their member countries and our member countries who are common. Out of those countries, we will select five countries, where AIIB can actually give more projects (financing),” Tripathi said. India has sought project financing totalling $2.40 billion from the AIIB. The bank will also invest $200 million in the National Investment and Infrastructure Fund (NIIF) of India. Prime Minister Modi will address the opening ceremony of the third annual general meeting in Mumbai. Source: livemint

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August 2018

BUSINESS & FINANCE

Japan’s SoftBank to invest up to $100 billion in India solar power generation: NHK

SoftBank Group Corp has decided to invest $60 billion-$100 billion in solar power generation in India, Japanese public broadcaster NHK reported

oftBank and the Indian government are expected to make an announcement soon after final arrangements and made, the report said without naming its sources. The company is expected to make the investment through a fund backed by Saudi Arabia’s government, NHK said. Saudi Arabia is the largest investor in SoftBank’s Vision Fund, which raised over $93 billion last year. A SoftBank spokesman declined to comment.

In 2015 SoftBank pledged to invest $20 billion in Indian solar projects with a goal of generating 20 gigawatts (GW) of energy as the majority partner in a joint venture with India’s Bharti Enterprises and Taiwan’s Foxconn. And in April SoftBank teamed up with China’s GCL System Integration Technology Co Ltd on a $930 million Indian solar energy venture.

India has set a target to achieve an operational solar power capacity of 100 GW by 2022, five times current levels, under Prime Minister Narendra Modi’s renewable energy strategy. SoftBank’s Vision Fund has exposure to solar energy through its investment in the world’s largest such project in Saudi Arabia announced in March. Source: reuters

The Rise Fund, a Global Impact Fund Managed by TPG Growth, Invests $70 Million in Fourth Partner Energy, a Leading Provider of Distributed Solar Solutions Rooftop systems installed by Fourth Partner Energy will help companies reduce power costs and avert more than 16 million tons of atmospheric carbon

ourth Partner Energy announced a $70 million investment from The Rise Fund, a global impact investment fund managed by TPG Growth. Founded in 2010 by Vivek Subramanian, Saif Dhorajiwala, and Vikas Saluguti, Fourth Partner Energy is India’s leading distributed energy management company with complete in-house capabilities across design, engineering, construction, service, monitoring and financing. One of the Company’s main offerings is solar power under long term power purchase agreements leading to significant cost savings for industrial, commercial as well as public sector clients. The Rise Fund will leverage the extensive investing and business building experience and trackrecord of TPG Growth’s global network and team to help Fourth Partner Energy grow and develop the businesses. Fourth Partner Energy will use this investment to strengthen its leadership position in this emerging sector and accelerate its growth through the RESCO model across industrial and commercial, corporate and public sector clients. It will also allow Fourth Partner Energy to expand its basket of distributed energy management solutions to its customers and expand operations to other geographies including South East Asia, the Middle East and Africa. Fourth Partner Energy has executed over 1,500 projects across 22 states in India and lists Ultratech, Ferrero, Nestle, Sintex, Raymonds, Pepsi, Mars, ICICI Bank, Coca Cola, DMart, Schneider Electric, Myntra, Big Basket, BITS, Symbiosis University, IIM- Bangalore and Indian Railways as some of its marquee clients.

August 2018

“India is demonstrating to the world the positive commercial and environmental impact of distributed solar solutions. Across industries, our customers are realizing tangible savings in their power bills. By replacing traditional thermal power plants with renewable energy sources, we are helping nurture the critical ecosystem in India. We are now confident of exceeding our initial target of managing over 1 GWp of distributed solar assets by 2022 through this strategic partnership with The Rise Fund and TPG Growth.” said Vivek Subramanian, Founder Fourth Partner Energy. “We believe that The Rise Fund and TPG Growth’s global positioning, deep corporate connections and a long-term commitment to this space will ensure that we become the partner of choice for our customers across the region. We are grateful to our committed workforce of over 170 employees across India and to The Chennai Angels and Infuse Ventures for their strong faith in our vision and their support early in the life cycle of the company.”

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Fourth Partner Energy’s distributed solar model has demonstrated significant cost savings over traditional power sources, which allow commercial clients to redirect more money into their business growth. In addition, Fourth Partner Energy’s distributed solar platform has the potential to avert more than 16 million metric tons of atmospheric carbon, as well as dramatically reduce coal energy-related water use and cut emissions from backup diesel generators that are used to supplement less reliable grid power. Fundamentally, Fourth Partner Energy demonstrates a direct link between business growth and positive impact, a focus of The Rise Fund.

BRIEF-Fortum Divests Stake In India Solar Power Portfolio, Eyes New Projects SAYS WILL SELL SHARE OF 185-MW INDIAN SOLAR PORTFOLIO – AIMING AT FURTHER SOLAR INVESTMENTS SAYS HAS SIGNED AN AGREEMENT TO SELL A 54% SHARE OF ITS SOLAR POWER COMPANY OPERATING FOUR SOLAR POWER PLANTS IN INDIA TO UK CLIMATE INVESTMENTS (40%) AND ELITE ALFRED BERG (14%) SAYS ELITE ALFRED BERG HAS OPTION TO BUY UP TO AN ADDITIONAL 16% FROM FORTUM SAYS TOTAL CONSIDERATION FROM DIVESTMENT OF 54% STAKE ON A DEBT AND CASH FREE BASIS, INCLUDING EFFECT OF DECONSOLIDATING FORTUM’S MINORITY PART OF NET DEBT, IS EXPECTED TO BE APPROXIMATELY EUR 150 MILLION SAYS POSITIVE IMPACT ON FORTUM’S RESULTS FROM SELLING PART OF SOLAR PORTFOLIO WILL BE APPROXIMATELY EUR 20 MILLION SAYS AIMS TO CONTINUE THE PARTNERSHIP ALSO FOR FUTURE SOLAR POWER PROJECTS SAYS THE ARRANGEMENT FREES UP CAPITAL FOR FURTHER INVESTMENTS AND ENABLES FORTUM TO CONTINUE TO UTILISE ITS KEY COMPETENCIES TO DEVELOP, CONSTRUCT AND OPERATE SOLAR POWER PLANTS IN INDIA. Source: in.investing

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“Fourth Partner Energy and their high-quality management team with their ethos of customer centricity is a perfect fit for The Rise Fund’s mission of building great businesses that not only generate market rate returns for its investors but also deliver measurable environmental and social impact. By expanding rooftop solar across India, their model will help reduce carbon emissions, cut costs for growing businesses across India, and push India towards a more sustainable energy economy and their ambitious goals around renewable energy.” said Ankur Thadani, TPG Growth. “We are excited to partner with Fourth Partner Energy and their entrepreneurial, customer focused team to help them expand their services and grow their market presence. We are particularly excited about the collinearity of their business whereby the more solar systems they deploy, the more they save their customers money and the greater the positive environmental impact,” said Rick Needham, Energy Sector Lead for The Rise Fund.

Investec acted as the Advisor to this transaction, for Fourth Partner Energy, with KPMG and Shardul Amarchand Mangaldas providing diligence and legal advisory to The Rise Fund and TPG Growth.

BHEL bags Rs 125 cr worth orders for solar plants

State-owned BHEL said it has bagged orders worth more than Rs 125 crore for setting up solar photovoltaic power plants in Gujarat.

he solar photovoltaic (SPV) power plants will be set up on engineering, procurement and construction (EPC) basis, the company said in a statement. The first order for setting up a 20 mw SPV power plant has been placed on BHEL by Gujarat Alkalies and Chemicals Ltd, while the other for setting up a 10 MW SPV power plant has been received from Gujarat State Fertilizers and Chemicals Ltd, the statement added. Both the solar power plants will be set up at Gujarat Solar Park, Charanka, Gujarat. Source: PTI

August 2018

BUSINESS & FINANCE

Gujarat Borosil Ltd to enhance production to meet rising demand for solar energy Borosil, a brand well known for quality drinking water glasses that are used even by the Indian Army in Siachen at minus 40 degrees, also manufactures hi-tech glass used in making solar modules.

olar glass has the highest potential for growth as compared to any other form of glass. Currently their solar glass production facility is operating at 132% of its capacity producing 171 tonnes/day. The target for fiscal year 2018-19 is an increase of 6% i.e. additional 10 tonnes/day over existing capacity. The Borosil Group has over half a century of expertise in specialty glass making, having achieved 10 ‘World Firsts’ in this field. Gujarat Borosil Ltd (GBL) has made 2mm fully tempered solar glass for the first time in the world. International module makers have shown strong interest in GBL’s fully tempered 2mm solar glass.

75% of GBL’s production is bought by Indian clients like 75% of GBL’s production is bought by Indian clients like Tata Tata Power Solar Ltd., Bharat Heavy Electricals Ltd., Power Solar Ltd., Bharat Heavy Electricals Ltd., Central Central Electronics Ltd., Rajasthan Electronics & InstruElectronics Ltd., Rajasthan Electronics & Instruments Ltd., ments Ltd., EMMVEE Photovoltaic Power Pvt. Ltd. and EMMVEE Photovoltaic Power Pvt. Ltd. and many others. many others.

This is because most problems leading to module failure arise from the plastic back sheet. The module life stands extended to 40 years, instead of the current 25 years bringing down the cost of ownership per KW dramatically.

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Mr Pradeep Kheruka, Vice Chairman – GBL said, “The Government is strongly committed in bringing solar power to India. Over 90% of the benefit from this policy is accruing to the Chinese industry, which is strongly subsidized. Indian manufacturers of solar components have no subsidy and for the last four years are continuing to appeal to the Government to obtain a level playing field.”

The remainder 25% of their current production is exported to European clients like Solar Watt and RECOM from Germany, Reden Solar and Voltec from France, Trienergia and Sunerg from Italy. They also meet demand in countries like Netherlands, Spain, Portugal, Greece, Cyprus, Croatia, Poland, Estonia, Slovenia, Hungary, Bulgaria, Turkey, Kenya, USA and Mexico. This new product enables the production of glass to glass modules, which are a quantum improvement over the existing modules available in the market. When such modules using bi-facial cells are installed on rooftops or on sand, the back of the module absorbs reflected light thus boosting power output by as much as 30%. Such modules can be made to float directly on water, because the excellent sealing possible between glasses imparts unprecedented moisture resistance. Large water bodies when covered with these floating modules will generate power while greatly inhibiting evaporation and saving land use for cultivation. By using glass as the back sheet in a module, the failure rate plummets to about 1% from the current 10%.

August 2018

Solar will be the driving force behind energy generation and reliance on fossil fuels is going to drop. This understanding is spreading to several countries around the world. The business is built upon years of trust and verification. GBL has been in this business for over 8 years and has 30 certifications for their products from various accredited bodies. In addition, the laws require that all solar modules be certified with each component specified. All their customers have certified modules using GBL glass, so may continue buying from them without applying afresh. Any new manufacturer has to pass these tests before selling can take place.

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Adani Green Energy gains 5% on debut, trades at Rs 29 on BSE Adani Green Energy, the renewable power arm for Adani Enterprises, has locked in upper circuit of 5% at Rs 29.40 on the BSE.

dani Green Energy, the renewable power arm for Adani Enterprises, has locked in upper circuit of 5% at Rs 29.40 on the BSE on first day of its listing. The stock recovered 9% from its intra-day low of Rs 27, after opening at Rs 28 on the BSE. On the National Stock Exchange (NSE), the stock trading at Rs 31, after opening at Rs 30. The stock hit a high of Rs 31.50 and a low of Rs 28.50 so far.

Pursuant to the scheme of arrangement between Adani Enterprises Ltd (AEL) and Adani Green Energy Limited (AGEL), renewable power undertaking of AEL has been transferred to and vested in AGEL. In consideration of the demerger, AGEL allotted 761 fully paid up equity shares of Rs 10 each of AGEL shall be issued and allotted for every 1000 fully paid up equity shares of Re 1 each held in AEL. Till 10:58 am; a combined 4.74 million shares changed hands and there were pending buy orders for around 352,328 shares on the BSE and NSE. Source: business-standard

RBI eases norms for FPIs to invest in debt; to help RE, Corp bonds

The RBI increased the FPIs cap on investment in government security to 30 per cent of the outstanding stock of that security.

he Reserve Bank has eased investment norms for foreign portfolio investors (FPIs) in debt, especially into individual large corporates, a move that can help attract more overseas flows and thereby help arrest the recent fall in the rupee on one hand and also lift the recent fall in demand for corporate bonds. FPIs are allowed to invest in various debt market instruments such as government bonds, treasury bills, state development loans and corporate bonds, but with certain limits and restrictions. The RBI increased the FPIs cap on investment in government security to 30 per cent of the outstanding stock of that security, from 20 per cent earlier. FPIs were allowed to invest in government bonds with a minimum residual maturity of three years.

“Henceforth, FPIs are permitted to invest in Government securities (G-secs), including treasury bills, and SDLs without any minimum residual maturity requirement, subject to the condition that short-term investments by an FPI under either category shall not exceed 20 per cent of the total investment of that FPI in that category,” RBI said in a notification. Short-term investments are defined as investments with residual maturity up to one year. In the corporate bond segment, FPIs are permitted to invest with a minimum maturity of three years. The central bank has now allowed FPIs to invest in corporate bonds with minimum residual maturity of above one year. However, it has kept a condition that short-term investments in corporate bonds by an FPI shall not exceed 20 per cent of the total investment of that FPI in corporate bonds. The requirement that short-term investments shall not exceed 20 per cent of total investment by an FPI in any category applies on an end-of-day basis. “At the end of any day, all investments with residual maturity of up to one year will be reckoned for the 20 per cent limit,” RBI said.

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RBI said short-term investments by an FPI may exceed 20 per cent of total investments, only if the short-term investments consist entirely of investments made on or before April 27, 2018, and not made after April 27, 2018. Following the RBI notification, market regulator, Sebi, withdrew last evening the minimum three-year residual maturity restriction on investments made by them in government securities, corporate bonds and SDLs. FPIs were permitted to invest in government securities till the limit utilisation reaches 90 per cent, after which the auction mechanism was triggered for allocation of the remaining limit. “With Clearing Corporation of India (CCIL) commencing online monitoring of utilisation of governmentsecurities limits, the auction mechanism has been discontinued with effect from June 1, 2018,” the RBI said. The RBI said investment by any FPI, including investments by related FPIs, should not exceed 50 per cent of any issue of a corporate bond. In case an FPI, including related FPIs, has invested in more than 50 per cent of any single issue, it shall not make further investments in that issue until this stipulation is met, RBI said. “No FPI shall have an exposure of more than 20 per cent of its corporate bond portfolio to a single corporate (including exposure to entities related to the corporate),” RBI said. It can be noted that since this RBI circular in April, there has been a dip in corporate bonds market with papers worth hundreds of crore lying with dealers for want of buyers. The move will also help arrest the spike in call money rates after the June 6 rate hike by the central bank. The rupee has been on a falling spree and has hit the 68 levels many times in went months. With the fed hiking rates for the fourth time earlier this week since last year and hinting at four more hikes this year, there is no chance that the rupee will have an easy life going forward, according to analysts. Source: PTI

August 2018

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Amazon to install solar rooftops at fulfilment, sort centres

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In its global initiative to generate clean energy, e-commerce major Amazon India said it will install 8,000-kilowatt (kW) rooftop solar panels at its fulfilment centres and sortation sites in the country by year-end to make them self sustaining. he company has so far installed close to 1,600 kW of solar power panels at its two fulfilment centres in Delhi and Hyderabad, it said in a statement. It plans to expand the initiative to another five fulfilment centres and two sortation sites located in Bangalore, Mumbai and Chennai, while further expanding existing capacity in Delhi.

“By the end of 2018, we plan to expand this installation to an additional seven Amazon operations sites in India,” said Akhil Saxena, vice-president, customer fulfilment, Amazon India. With this deployment, Amazon India expects to generate solar energy close to 8,000 kW by the end of this year, according to the release. The investment in solar energy systems in India is in line with Amazon’s vision to deploy solar systems on 50 fulfilment and sortation centres globally by 2020, it added.

Further, the company said it will plant 10,000 trees around its fulfilment centres in the coming weeks. Amazon India has also extended the initiatives to cover communities around the fulfilment centres, by setting up solar energy systems in four Amazon Cares Community and Resource Centres in Haryana, which provide solar power to support the community programs in these centres all year round, it said. Source: PTI

Solar power plants to be installed on rooftops all sr secondary schools Solar power plants would be installed on the rooftops of all senior secondary schools in Haryana, Minister of State for Public Health Engineering Banwari Lal said

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In order to promote solar energy, solar photovoltaic power plants are being installed atop various other buildings also, he further said. Speaking after inaugurating 100 solar lights worth Rs 18 lakh set up with CSR fund of the Oil and Natural Gas Corporation at Agriculture College in Rewari district, he said solar pumps would be given to 1.5 lakh farmers of the state. Besides, solar lights would be installed at all public health centres and Anganwadi Centres by October this year.

August 2018

A solar power plant of 24 MW capacity would be set up at a cost of Rs 137 crore. It would generate 36 million units of electricity annually and result in saving of Rs 21.60 crore, he said. “Solar power plants would be installed on the rooftops of all senior secondary schools in Haryana,” he stated. Source: PTI

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Tata Power Renewable signs power purchase pact with GE Tata Power Renewable Energy Ltd said it has entered into a power purchase agreement (PPA) with GE to provide solar rooftop solutions for six manufacturing and services sites in India.

OPIC gives $5 mn loan to Grameen Impact via IndusInd Bank The US government arm Overseas Private Investment Corporation (OPIC) has given USD 5 million loan to Grameen Impact Investments to support domestic small and medium enterprises.

“Tata Power will install solar rooftop projects at manufacturing sites located at Durgapur in West Bengal, Pallavaram and Hosur in Tamil Nadu, multi-modal manufacturing site at Pune and upcoming factory at Marhowra in Bihar and maintenance facility at Roza in Uttar Pradesh,” the company said in a statement. The project would be executed on build-own-operate basis, it said. Tata Power Renewable Energy Ltd is the wholly-owned arm of Tata Power. The installation of the solar rooftop projects will help to generate over 1 million kWh of electricity per year, and will lead to an average tariff reduction of around 30 per cent, the statement said. GE will also be able to curb the emission of over 13,000 kg of carbon dioxide per day.

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“We are hopeful that the renewable segment will also be encouraged by these cost optimised energy solutions,” Tata Power (Renewables) President Ashish Khanna said in a statement.

The OPIC guarantee enabled the bank to disburse an equivalent of Rs 33.5 crore (USD 5 million) loan to Grameen Impact, IndusInd Bank said in a statement. “This is significant as it eliminates foreign exchange rate fluctuation risk from the balance sheet of Grameen Impact, a major challenge faced by borrowers in emerging markets,” it added.

Grameen Impact will use the financing to give loans to high impact social enterprises in India in sectors including financial services, affordable healthcare, affordable education, renewable energy and sustainable agriculture.

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“By supporting lending to high-impact businesses in local currency, this project will help businesses in India overcome one of the main challenges to obtaining financing,” said Ray W Washburne, OPIC President and CEO.

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“India has rapidly become a global leader in impact investing, with over USD 5 billion of investments in this space. “However, the bulk of this is equity; even social enterprises struggle to raise debt financing, which is critical for scale… IndusInd Bank is furthering our commitment to build a ‘capital-with-a-conscience’ ecosystem,” said Royston Braganza, CEO of Grameen Impact Investments.

Grameen Impact is backed by Grameen Capital India, whose shareholders include Acumen and other leading impact investors.

“India is an important manufacturing base for GE and sustainability is at the core of our business. Generation of solar power at our manufacturing plants will help us in reducing our carbon footprint,” said Amit Kumar, Vice President, Supply Chain – GE India and South-East Asia.

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he financing to Grameen Impact, a nonbanking financial company, comes through IndusInd Bank in the form of a loan guarantee agreement. The loan is to be deployed through the bank’s Impact Investing division, which will support Grameen Impact’s lending to local small and medium enterprises.

Source: PTI

August 2018

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CCEA approves plan to light up 3,00,000 solar street lights in country The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for implementation of PhaseIll of Off-grid and Decentralised Solar PV (Photo Voltaic) Application Programme to achieve additional 118 MWp(Mega Watt peak) off-grid solar PV capacity by 2020. Phase-Ill of Off-grid and Decentralised Solar PV Application Programme covers following components: Solar Street Lights: 3,00,000 numbers of solar street lights will be installed throughout the country with special emphasis on areas where there is no facility for street lighting systems through grid power, North Eastern States and Left Wing Extremism (LWE) affected districts. Stand-alone Solar Power Plants: Solar power plants of individual size up to 25 kWp(kilo Watt peak) will be promoted in areas where grid power has not reached or is not reliable. This component is mainly aimed at providing electricity to schools, hostels, panchayats, police stations and other public service institutions. The aggregated capacity of solar power plants would be 100 MWp. Solar Study Lamps: 25,00,000 numbers of solar study lamps will be provided in North Eastern States and LWE affected districts.

or solar street lights and solar power plants, financial support up to 30% of the benchmark cost of the system will be provided except for NE States, Hill States and Island UTs where up to 90% of the benchmark cost will be provided. For solar study lamps only 15% of the lamp cost to be borne by beneficiary student and balance will be provided as financial support as such systems will be provided to school going children in backward and remote areas. The total project of the three components included under the phase-Ill is Rs. 1895 crore of which Rs. 637 crore will be provided as central financial assistance. The off-grid solar systems will also open better livelihood opportunities for beneficiaries in rural and remote areas thereby increasing self-employment in such areas. It is estimated that, besides increasing self-employment, the implementation of Phase-Ill is likely to generate employment opportunity equivalent to 8.67 lakh man-days for skilled and unskilled workers. Off-grid and Decentralized Solar PV Applications Programme has high impact in the rural and remote areas of the country where grid power has either not reached or is not reliable. During the Phase-Ill, the programme is likely to benefit 40 lakh rural households. In addition, the off-grid solar power plants proposed in the programme to provide electricity to schools, hostels, panchayats, police stations and other public service institutions will help communities at large and also help in increasing participation of women in education, social and livelihood activities.

TN to study feasibility of 250 MW floating solar power plant In order to reduce the evaporation of reservoir water and increase sourcing of solar power, Tamil Nadu is looking at the feasibility of setting up a floating solar power plant, Chief Minister K. Palaniswami said

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Announcing this in the assembly, CM said that the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) and another company will study the feasibility of setting up 250 MW floating solar power plant at an outlay of Rs 1,125 crore. He also said the government will come out with a new Energy Policy. Palaniswami said the stateâ&#x20AC;&#x2122;s Solar Power Policy will be aligned with the Vision Tamil Nadu 2023 document that has set a target of 8,884 MW of

August 2018

solar power capacity by 2023. The Vision Tamil Nadu 2023 was released by then Chief Minister J.Jayalalithaa in 2012. Source: IANS

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Eastman Auto and Power Ltd. Floating solar power projto solarise 100 government ects: Maha mulling Swiss primary schools in 2018-19 Challenge method Being the only primary school in the village, it is expected to bring about a paradigm shift in literacy levels. Yet many basic amenities elude the school. Come summers and power outages become common.

tudents have to brave the scorching heat amidst the lessons and it becomes increasingly difficult to sit and study in the classrooms. Eastman Auto and Power Limited (EAPL), one of India’s leading companies in energy storage and solar solutions, has found a noble way of redressing the power woes of the school by harnessing sunshine. The government primary school will be one of the schools among 100 others in India that will be solarised as soon as the part of the company’s ‘Yellow Umbrella Campaign’. This CSR initiative apart from taking the schools solar and providing them uninterrupted electricity also aims to sensitize students about the need for sustainable development and judicious use of green resources. The project is aligned with the broader vision to contribute to National Solar Mission by moving a step forward towards encouraging the use of renewable energy through solarising schools. As a part of this initiative, a full solar structure consisting of solar panels, PCU and Batteries will be installed by EAPL at the school completely free of cost. A total of 15,000 students are expected to be sensitized about the benefits of solar energy through this project. Beginning from Mewat, Haryana, the campaign will target states such as Rajasthan, UP, Gujarat, Maharashtra, Karnataka, Kerala & Madhya Pradesh.

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“CSR forms the core philosophy of Eastman Auto and Power Limited. This is a real impact that we want to create and give back to the community. Solar energy is the future of India’s energy roadmap. The initiative will provide schools with a sustainable and cost-effective solution for resolving electricity woes. It will also go a long way in not only improving the student turnout but also sensitize children to embrace solar energy,” said Saurabh Srivastav, President-Marketing and Product Strategy, Eastman Auto and Power Limited.

The campaign will be implemented in association with a nongovernmental organization, United Ways who will help Eastman in finding the right set of schools in these states. These schools need to be in remote areas with either very little or no grid power, wherein solar energy will ensure normal functioning of the school and a healthy student turnout. Going solar entails numerous benefits. Solar energy is not only cost-effective but is eco-friendly and has a potential to reduce India’s carbon footprint. To promote the nationwide adoption of solar energy, the Indian government launched National Solar Mission in 2010 which aims to achieve 100 GW of solar energy by 2022. According to the November 2017 report of Bloomberg New Energy Finance (BNEF), around 715 MW of capacity was added across the country in the last fiscal as compared to 227 MW in the previous year, taking the country’s total installed capacity to 1.3 Gigawatts. (Newsvoir)

The state government is mulling adoption of Swiss challenge method to finalise a bidder to set up floating solar plants across various reservoirs and water bodies in the state. Under the Swiss challenge system.

he state government is mulling adoption of Swiss challenge method to finalise a bidder to set up floating solar plants across various reservoirs and water bodies in the state. Under the Swiss challenge system, any person with suitable credentials can submit a development proposal to the government for a public project. The proposal will be then put online and a second party can give suggestions to improve and challenge that proposal. A committee comprising officials of the water resource and energy departments along with the representatives of the Maharashtra Energy Development Agency (MEDA), Mahagenco and state-run power utility MSEDCL has been set up to examine various models for floating solar, including the Swiss challenge system and tariff-based bidding.

“We have a large number of reservoirs across the state where floating solar projects can be developed. We hope to receive the committee report in the next two months,” said a state government official. The state government in February this year cleared the Maharashtra Infrastructure Development Enabling Authority Act, to serve as a framework to allow for infrastructure proposals to be allotted to private players using the Swiss challenge method. The official pointed out that there is still ambiguity on who will take responsibility for implementing the floating solar projects in the state. Under the state’s solar policy of 2015, Mahagenco has been mandated to set up at least 250 MW of capacity through floating solar projects on lakes, canals and water bodies of the water resources department (WRD). A consultant, appointed by Mahagenco, has identified several water bodies, including reservoirs such as Bhatsa, Ghatghar (lower), Ghatghar (upper), Alwandi, Dhamani, Vaitarna and Vaitarna having a cumulative potential of 475 MW. Meanwhile, MSEDCL had invited bids to develop 1000 MW floating solar projects at the Ujani Dam in Solapur district.

“It had received 25 bids. But since it is not clear on the implementation of the project as well as revenue sharing, the project is facing a status quo. Since these water bodies are under the WRD there is a thought process that they should be the implementing authority,” said an official from WRD said. “In case we get a go ahead for the Swiss model, we may consider taking up the project on our own,” the official added.

Source: ANI

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Source: PTI

August 2018

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Budweiser beer maker AB InBev goes green; inks pact for renewable energy

The brewery in Mysore, which manufactures beer brands especially Budweiser, Knock out and Beck’s Ice, is the company’s third unit in the world that will be operated through renewable source.The other two are in the US.

World’s biggest beer giant Anheuser-Busch (AB InBev) announced that its Mysore unit in Karnataka has started using green energy and a power purchase agreement has been inked with Canadian firm Amp for ten years. The brewery in Mysore, which manufactures beer brands especially Budweiser, Knock out and Beck’s Ice, is the company’s third unit in the world that will be operated through renewable source. The other two are in the US.

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“We will source 80 per cent of the electricity requirement of the Mysore unit through renewable source. However, Budweiser will be made using 100 per cent renewable energy,” AB InBev APAC South President Jan Craps told reporters here. A long term agreement has been signed for supply of renewable electricity of 3.6 gigawatt hours per year for a period of ten years with Amp, he said.

The solar power plant, which is located 60 km away from the Mysore unit, has a capacity to generate 30 MWAC and production has commenced. The company owns 10 breweries in India and seven are contracted. It plans to shift to renewable energy in all its breweries gradually. AB InBev India President Be Verhaert said, “The adoption of solar generated electricity at our brewery is a first step towards extending Budweiser’s global commitment to a brighter future. We are confiident that businessses can contribute to a 100 per cent renewable electricity future and plan to enter into similar agreements in the country..” AB InBev is one of more than 100 multinational firms to have committed to use renewable power to combat pollution and climate change under the Paris accord. Source: PTI

August 2018

Godrej & Boyce Mfg. Co. Ltd commission 162 kWp solar rooftop order for Shipping Corporation of India Ltd., Mumbai

Godrej & Boyce Mfg. Co. Ltd (G&B) is pleased to announce commissioning of 162 kW prestigious order from M/s Shipping Corporation of India Ltd. (SCI), Mumbai. This was the second order from SCI after 350 kWp rooftop order which was bagged in April 2016.

his order reconfirms the delivery, quality and safety standards and workmanship showcase by G&B which are hallmark of the company in the execution space. This was one of the rarest and challenging project where in solar plant was installed with elevated mounting structures on uneven land located near bay of the pond located at site. Project was commissioned without affecting natural flora and fauna in the campus.

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Mr. Raghavendra Mirji, AVP & Head – Power Infrastructure & Renewable Energy vertical, said that the company is presently executing more than 3 MW of roof top projects in Maharashtra and around 5 MW in other states. This unique project 160 kWp roof top project will add another feather in the cap of G&B and demonstrates its execution capabilities in solar field.

G&B plans to play a larger role as an EPC contractor for both On-Grid and Off-Grid solar power generation. Being driven by the focus on sustainability, reliability, values, G&B intends to enhance its presence in the sphere of Renewable Energy and will focus on various green initiatives aimed at reducing the carbon footprint.

Source: Godrej

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India became net power exporter in last four years: Union Minister RK Singh

Govt to come up with new energy policy as per Vision 2023

India became a net exporter of electricity for the first time during the last four years and aims to achieve the target of universal household electrification by the year-end three months ahead of the original deadline, Power Minister RK Singh said.

The Tamil Nadu government said it would come up with its ‘New Energy Policy’ in accordance with the Vision 2023 document of late Chief Minister J Jayalalithaa.

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Chief Minister K Palaniswami, while making a slew of announcements in the Tamil Nadu Assembly concerning the Energy sector, among others, however, did not reveal when the policy would be rolled out. “In accordance with the Vision 2023 document provided by Amma to meet the economic and social objectives, a New Energy Policy will be formulated,” he said.

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n a media briefing here on the government’s achievments in the four years of NDA rule at the Centre, he also referred to the issue of stressed projects, saying efforts are underway to revive some of the non-performing assets (NPAs) in the sector.

“India became a net exporter of electricity for the first time during the last four years, and 7,203 million units were supplied to Nepal, Bangladesh and Myanmar in the last financial year,” Singh said. “The government will connect every house in the country with electricity by December 2018,” he said.

In September last year, the government had launched the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) scheme aimed to connect all households with electricity March 2019. With 100 per cent village electrification being achieved by the end of April, the government brought ahead the Saubhagya target of powering around 4 crore households three months ahead of the original deadline.

He said 100,000 MW of power generation capacity and one lakh circuit km (ckm) of inter state transmission capacity had been added in the last 4 years. Besides, 25,000 ckm of transmission capacity were added per year, as against 3,400 ckm during previous governments. Referring to the woes of the power sector that contributes a major chunk of the massive NPAs, or bad loans, accumulated in the Indian banking system, Singh said that “banks are coming together and drawing up schemes to salvage power assets”. “SBI (State Bank of India) and other banks have launched a scheme called Samadhan to revive assets and 11 plants have been selected under the scheme, while some power assets are getting revived under the Shakti scheme,” he said. On renewable energy, he said that its capacity was doubled to 70 gigawatt (GW) in four years, while the country is poised to achieve 225 GW renewable energy capacity addition by March 2022, as against the current target of 175 GW. “India’s current capacity stands at 70 GW, we will cross the 175 GW target well before 2022. We have new schemes like offshore wind, floating solar, which will help us overachieve the current target,” he said. As per a ministry release, India’s energy deficit reduced from 4.2 per cent in fiscal 2013-14 to 0.7 per cent in 2017-18.

he Vision 2023 document is an ambitious proposal made by Jayalalithaa in 2012, with an aim to ensure manifold economic growth through various sectors. Palaniswami further said the the state’s ‘Solar Policy 2012’ would also be revised. According to the Vision 2023 document, the aim was to achieve 8884 MW of solar power.

Further, state-run TANGEDCO would join hands with Solar Energy Corporation of India to establish, on the basis of feasibility, floating solar sub-stations in different reservoirs in the state at a cost of Rs 1,125 crore, he said. Among others, Palaniswami announced setting up 25 substations at an estimated Rs 5,068 crore across in various parts of the state to give a fillip to the power sector. The substations would come up at Madurai, Tirunelveli, Chennai, Cuddalore and Sivaganga districts, among others, he added. The Chief Minister also made a number of other announcements concerning the departments of Municipal Administration and Drinking Water Supply and Rural Development. These included solid waste management programmes, construction of percolation pits in various places, road repair and upgradation works, drinking water initiatives and provision of loans to women Self-Help Groups for their upliftment. Source: PTI

Source: IANS

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August 2018

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Cabinet approves Continuation of Off-grid and Decentralised Solar PV Applications Programme – Phase III The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for implementation of PhaseIll of Off-grid and Decentralised Solar PV (Photo Voltaic) Application Programme to achieve additional 118 MWp (Mega Watt peak) off-grid solar PV capacity by 2020. Phase-Ill of Off-grid and Decentralised Solar PV Application Programme covers following components: Solar Street Lights: 3,00,000 numbers of solar street lights will be installed throughout the country with special emphasis on areas where there is no facility for street lighting systems through grid power, North Eastern States and Left Wing Extremism (LWE) affected districts. Stand-alone Solar Power Plants: Solar power plants of individual size up to 25 kWp(kilo Watt peak) will be promoted in areas where grid power has not reached or is not reliable. This component is mainly aimed at providing electricity to schools, hostels, panchayats, police stations and other public service institutions. The aggregated capacity of solar power plants would be 100 MWp. Solar Study Lamps: 25,00,000 numbers of solar study lamps will be provided in North Eastern States and LWE affected districts.

August 2018

‘All meters to be smart prepaid in 3 years’, says Power Minister; advises meter manufacturers to scale up production “In next three years metering will go smart prepaid, and gone will be the days of bills reaching your house. So need of the hour is to scale up manufacturing of smart prepaid meters and to bring down their prices.”said Shri R K Singh, Minister of State(IC) for Power and New & Renewable Energy. Shri Singh was addressing a meeting of meter manufacturers called by the Power Ministry here

he Power Minister advised the manufacturers to scale up the manufacturing of smart prepaid meters as the demand would be huge in coming years. The Minister also advised the officials of the Ministry to consider making smart prepaid meters mandatory after a particular date. This will revolutionise the power sector by way of reduced AT&C losses, better health of DISCOMs, incentivisation ofenergy conservation and ease of bill payments etc. Further, it will generate skilled employment for the youth. The meeting discussed various aspects of smart meters e.g. BIS certification, compatibility with RF/GPRS, harmonisation with existing digital infrastructure etc. It was also agreed that all technical aspects will be further deliberated into in consultation with meter manufacturers, DISCOMs and system integrators. Shri A K Bhalla, Secretary, Power; Shri Sanjiv Nandan Sahai, Additional Secretary;Shri Arun Kumar Verma, Joint Secretary, Ministry of Power were among the officials present from the Central Electricity Authority, PFC, REC, EESL and meter manufacturers.

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India to auction 40 GW renewables every year till 2028 India will auction 40 GW of renewable energy projects comprising 30 GW solar and 10 GW wind every year for the next 10 years till 2028, indicating huge potential for domestic manufacturers and developers, a senior official said.

“We have 30 GW solar energy bidding plan for 201819 and 2019-20. This 30 GW auction per annum would continue till 2028. Similarly, we have to auction 10 GW of wind energy for next 10 years till 2028 to meet the power demand of 862 GW by 2030,” New and Renewable Energy Secretary Anand Kumar told reporters at the Global Wind Day celebration by the Indian Wind Turbine Manufacturers Association (IWTMA).

laborating further, he said, “We have to do 350 GW in solar (to meet demand by 2030), of which 100 GW is planned till 2022. So we have to bid out at least 30 GW each year from 2020 onwards to achieve additional 250 GW.” The government’s power projection indicates that India will have to bid out 140 GW of wind energy to meet demand by 2030, he said, adding the country would complete bidding of 60 GW of wind energy by 2o2o. Kumar further said,

“Therefore, we have to do 10 GW every year till 2028 to meet the overall power demand of 862 GW by 2030. India has already achieved 70 GW of renewable energy capacity including 22 GW of solar and 34 GW of wind.” India would ultimately have around 500 GW of renewable energy capacity by 2030, including 350 GW of solar and 140 GW of wind energy. The secretary was of the view this capacity addition would give enough opportunity to domestic renewable energy equipment manufacturers and project developers. The Central Electricity Authority and other government agencies have worked out a demand projection of 862 GW by 2030 factoring in 6 per cent growth in electricity demand per annum.

About the best bidding mechanism, he said, “We have engaged IIM Lucknow for preparing a detailed report on merits of close envelop auction and reverse bid-

ding method. They are expected to give their report in July. The government will take call only after that.” Kumar explained that some players had expressed concerns that the bidders with deep pockets can hurt small developers by outbidding them in auctions for renewable projects. However, he also admitted that tariff-based reverse auction helps in achieving the best pricing. Under the close envelop auctions, the bid price cannot be changed whereas in reverse auction, the bid price is known and bidders can outbid each others. The secretary also said the ministry would call a meeting of bankers and financial institutions in July to allay fears related to projects turning into NPAs or bad loans as there is no such case at present. He said the 500 MW capacity in Bhadla Phase-III Solar Park, Rajasthan — which witnessed lowest solar tariff of Rs 2.44 per unit last year in May — would be commissioned in August this year.Suzlon Group Chairman Tulsi Tanti and President IWTMA said India would double its wind energy manufacturing capacity to 25 GW per annum by 2020.He exuded confidence that India would overachieve wind energy capacity target of 60 GW by 2022 and would rather have 80 GW by that time. He said that keeping in view scenario beyond 2030, offshore wind and solar-wind offshore would be the future in respect of issues and cost related to land acquisition.

Source: PTI

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August 2018

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Government offers 10 Joint Secretary posts for lateral entry, Congress objects Opening the doors of the bureaucracy for private sector professionals, the government invited applications for 10 Joint Secretary-level posts through lateral entry as opposed to those inducted through the UPSC exam.

he opposition Congress criticised the decision, saying it was just to “sabotage” the efficiently-running system and with a view to “take in people from the RSS, BJP and some of the industrial houses of the country”. However, the government said the proposal of lateral entry was aimed at bringing in “fresh ideas and new approaches” to governance and also to augment manpower.

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The government of India has decided to invite talented and motivated Indian nationals willing to contribute towards nation-building to join the government at the level of Joint Secretary, said a notification issued by the Department of Personnel and Training.

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Joint Secretaries are placed at a crucial level of senior management in the government and lead policy-making as well as implementation of various programmes and schemes of the department assigned to them. They report to the Secretary or the Additional Secretary in the respective Ministries. The Joint Secretary’s post is usually filled through the competitive exams conducted by the Union Public Service Commission (UPSC). The government notification said that candidates with expertise in specific areas of revenue, financial services, economic affairs, agriculture, road transport and highways, shipping, environment and forests, new and renewable energy, civil aviation and commerce can apply for the posts.

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While candidates from state governments as well as central or state public sector undertakings will be appointed on deputation, the candidates from private sector will be appointed on contract basis, the notification said.

The NITI Aayog welcomed the move, with its CEO Amitabh Kant saying it was “long overdue”. “NITI’s experience with lateral entry has been extremely good. They (candidates) bring in a vast number of fresh and vibrant ideas. “This move in government was long overdue and I welcome it. (It) Will catalyse UPSC entrants to specialise. The government must also allow deputation of its officers to private sector as well,” Kant said in a tweet.

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Congress Spokesperson P.L. Punia told IANS that there is a time-tested efficient system of recruitment of IAS and officers in other services, which is foolproof. Training is given keeping in mind the government’s requirement and they are all brilliant brains. “This is just to sabotage the efficiently-running system and with a view to take people from the Rashtriya Swayamsevak Sangh, Bharatiya Janata Party and some industrial houses. So that they can directly influence the decision-making of the government,” he said. Punia, a former IAS officer, said they (government) have also written in the advertisement that it is for ‘Indian nationals’. Normally, it is open to Indian citizens. “What do they mean by ‘nationals’? Why have they not mentioned ‘Indian citizens’ but ‘Indian nationals’. So, we will have to examine whether they have something else in mind — whether they want to include NRIs,” he said. Asked if he suspected foul play, the Congress leader said: “Yes”. Source: IANS

August 2018

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DNV GL partners with the EU and MERC denies CleanGovernment of India to bring maxe’s plea to use open offshore wind to the Indian market access and net meterThe first phase of the Rs 870 crore project begins on July 2 where the state goving simultaneously ernment would provide financial assistance to 12,400 farmers out of the state’s total 15 lakh farmers to generate an estimated 175 MW of power.

ujarat unveils scheme to encourage farmers to use, produce solar power Gandhi nagar : In an attempt to promote solar energy, the Gujarat government announced Suryashakti Kisan Yojana (SKY) scheme under which farmers would be encouraged to generate electricity and sell their surplus to power distribution companies. The first phase of the Rs 870 crore project begins on July 2 where the state government would provide financial assistance to 12,400 farmers out of the state’s total 15 lakh farmers to generate an estimated 175 MW of power. Chief Minister Vijay Rupani announced the scheme here in the presence of Deputy Chief Minister Nitin Patel and Energy Minister Saurabh Patel.

Giving details, the Energy Minister Saurabh Patel told reporters: “At present, the farmers consume power purchased from power companies. Now, we will help them set up solar systems in their fields. After they consumer power according to their requirement, they can sell the surplus back to the distribution companies.” “The state government and the Centre would jointly share 60 per cent of the cost of installing a solar generating unit in the fields, while the farmers would need to chip in only 5 per cent,” he said. The remaining 35 per cent would be in the form of a loan by the state government at the rate of four to 4.5 per cent. “The farmers would be able to recover their costs within eight to 18 months, depending on their power needs and generation,” he added. The government would also enter in a 25-year power purchase agreement with the farmers. “Till the farmers repay their loan, the distribution companies would buy electricity from them at the rate of Rs 7 per unit and at Rs 3.5 per unit once the loans are settled. After that, the farmers would get ownership of the solar system,” the minister said. Of the total power consumption in the state, industry and domestic sectors consume 74 per cent or 66,159 million units (MU), and agriculture uses 26 per cent or 22,704 MU annually.

Chief Minister Vijay Rupani said: “This is a revolutionary step which would help the farmer earn money. It is one more step in helping double income of farmers. This would take care of the complaint of the farmers that they did not get adequate electricity. Now they would get seamless power for 12 hours during the daytime.”

In a petition filed by Cleanmax Enviro Energy Solutions Pvt. Ltd., the organization had sought clarification regarding the net metering arrangements for Open Access consumers under the MERC regulations 2015 from the commission. As a part of the reply to the petition, according to the ruling by MERC, the generators cannot use both Open Access and net metering simultaneously.

egulatory commission also mentioned that benefits of net-metering are limited to the rooftop solar installations with capacity up to 1 MW only. The generators above 1 MW can avail Open Access. The explanatory ruling came as a result of responding to a petition filed by Cleanmax Solar to grant net metering permission for a 991 kW rooftop solar photovoltaic (PV) project at Asahi India glass limited situated at MIDC – Taloja, Raigad Maharashtra. Asahi was a customer of MSEDCL with a contract demand of 7500 kVA connected at 100 kV. Asahi also availed partial open access at 3,000 kVA from traditional energy under a group captive arrangement from Sai Wardha Power Generation Limited. In 2017, Asahi made an application for Net Metering arrangement for the Rooftop Solar Photovoltaic system under the rooftop solar regulations 2015.

After listening to both the party’s petition the commission came to a decision that… “Net metering and Open Access are two different sets of arrangements for different eligible consumers and its Regulatory framework also has been provided by the two different Regulations. If these two arrangements are mixed up then there are various issues related to Grid security, accounting, billing, settlement etc. Hence, the Commission has made Net Metering Regulations for “below 1 MW” and Open Access for “1 MW and above” and cannot avail simultaneously by same consumer”. Hence denying Cleanmax’s plea. One of the reasons for the commission to take this decision was their concern for grid security due to which the DISCOMs would have to go into distribution network contingencies and other related issues to Open Access and Net Metering Simultaneously.

Source: IANS

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August 2018

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India poised to reach target in renewable energy sector: Power Minister Union Minister of State for Power and New & Renewable Energy, R K Singh, said that the Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) a scheme meant to harness solar power for rural India will be launched in July 2018. Addressing a video conference from New Delhi, the Minister said that the scheme would provide for installation of grid-connected solar power plants each of capacity up to 2 MW in the rural areas. He said the installation of standalone off-grid solar water pumps would fulfill irrigation needs of farmers not connected to grid. Thus, the solarization of existing grid-connected agriculture pumps would make farmers independent of grid supply and also enable them to sell surplus solar power generated to DISCOM and get extra income. Enlisting the achievements of the Energy sector, the Minister said that all the villages in the country which did not have access to power the government has electrified all the villages which had no electricity.

He said that in a bid to achieve One Grid One Nation, the transmission grid has been expanded by by 1 lakh ckm and highest ever transformation capacity addition of 86,193 MVA was done in FY 2017-18. He said that in the last four years , the renewable power installed capacity in the country has reached over 70 mw and would reach the target of 175 mw. He said over USD 42 billion have been invested in the last four years in the renewable energy sector in India. In answer to a question, he said that the disputes over power sharing and related issues between Telangana and Andhra Pradesh would soon be resolved by the Southern Regional Power Committee with the help of Centre.

RESEARCH & ANALYSIS

New China policy may hit domestic solar manufacturing: Icra

China has turned away from the feed-in tariff regime and restricted new capacity addition of distributed generation solar projects to 10 GW in 2018. hina’s measures to disincentivise solar power capacity building might lower solar costs in India, according to Icra Ratings. China is the world’s largest solar equipment manufacturer and India imports more than 85% of solar modules from the country. China has turned away from the feed-in tariff regime and restricted new capacity addition of distributed generation solar projects to 10 GW in 2018. It has also removed the target-based system for utility scale solar projects. While these may lower costs for Indian developers, higher imports would put added pressure on domestic module and cell manufacturers. The country now ranks fourth, trailing China, the US and Germany. Lower tariffs do not favour Indian module makers as prices of their products are higher than Chinese players. Domestic manufacturers have been calling for imposing duties on such imports to sustain the industry. As FE recently reported, the threat of safeguard duties on solar panels has had a dampening effect on bidders for new projects, with states postponing and cancelling solar auctions. The directorate general of safeguards in January recommended a provisional safeguard duty of 70% on solar cells and panels. A public hearing on the issue is scheduled for June 26.

“The policy changes in China are likely to impact the domestic demand for solar PV modules and consequently result in a softening of export prices for Chinese PV module manufacturers, said Sabyasachi Majumdar, senior vicepresident, Icra Ratings. Icra estimates that every 8 cent/watt decrease in module prices would lower capital cost by about 13%. However, it noted that if the recent trend in depreciation of the rupee against the dollar continues, it will partially offset the benefit of module price reduction. Low renewable power tariffs discovered in recent auctions, coupled with uncertainties related to proposed duties on solar components, were the main reasons behind India coming down two spots in the renewable energy country attractive index in a year.

Source: financialexpress

August 2018

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RESEARCH & ANALYSIS

ICRA pegs wind energy capacity addition at 3-3.5 GW in FY’19

Solar energy sector sees 76% jump in job searches in 2014-2017: Report

Wind energy capacity addition is estimated at about 3-3.5 GW in FY2019 and the viability of bid tariffs and inter-state connectivity will be key headwinds for developers, ratings agency ICRA said.

According to a study by job portal Indeed, under the sustainable energy job profiles, searches for solar design engineers, solar project engineers and solar electrical engineers witnessed significant increase.

he project awards so far are expected to improve the capacity addition in the wind power segment to about 3 to 3.5 GW in FY2019 against 1.7 GW in FY2018, ICRA said in a statement. The Ministry of New and Renewable Energy (MNRE) along with the distribution utilities in Gujarat, Maharashtra and Tamil Nadu have awarded wind-power capacity of 7.6 GW over the past 15 months and another 10 GW each are proposed to be awarded in FY2019 and FY2020. This is in line with the trajectory of project awards announced by the MNRE in November 2017 to achieve the cumulative wind capacity target of 60 GW by FY2022. However, on a cautious note, the winning bidders in these auctions face the twin challenges of project viability at the quoted tariffs and securing connectivity and long-term access to inter-state transmission network.

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“While the regulations recently notified by the Central Electricity Regulatory Commission (CERC) on connectivity for renewable energy projects are positive for these developers, the adequacy of the existing inter-state transmission infrastructure in the states with high wind potential remains a challenge, said Girishkumar Kadam, Sector Head and Vice President, ICRA Ltd.

The connectivity regulations recently notified by the power regulator CERC provide clarity on the procedure and timelines for securing connectivity from the central transmission utility and accord priority to projects holding a letter of award under the tariff-based competitive bidding. However, it said the uncertainty on availability of adequate evacuation infrastructure persists, given that the existing inter-state transmission infrastructure in the states with high wind potential may not be sufficient to provide connectivity to the projects bid out so far and proposed bids by the SECI. Moreover, its said the augmentation of transmission infrastructure would take about 24-36 months, whereas the winning developers must commission the wind power projects within 18 months from the date of award. The significant decline in order volumes during the transition from feed-in tariff regime to competitive bidding regime, coupled with pricing pressures, had an adverse impact on the financial profile of the wind turbine manufacturers. This remains a concern for the wind power IPPs using the services of such players as O&M contractors, given that the weakening of the financial profile would affect their ability to ensure machine availability for the wind farms, said Vikram V, Associated Head and Assistant Vice President, ICRA Ltd. Source: PTI

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enewable energy sector has witnessed an rising appeal among job seekers and the solar energy sector has seen a 76 percent jump in jobs searches since 2014, says a report. According to a study by job portal Indeed, under the sustainable energy job profiles, searches for solar design engineers, solar project engineers and solar electrical engineers witnessed significant increase. With the introduction of the Central Government’s Scheme for the Development of Solar Parks in December 2014, various parts of India have seen the installation of solar plants, making the solar energy sector account for one of the highest generation capacities in the Indian electricity grid.

“The solar energy sector has witnessed an increase of 76 percent in the number of job searches between October 2014 and October 2017,” the report said. Incidentally, the wind energy sector, which is largely complementary to solar energy sector in India, saw only a 28 percent increase in the number of job searches during the same time period. “India has witnessed substantial growth in the renewable energy sector since 2014, which has led to the rise in the number of job seekers looking for work opportunities in the field,” said Sashi Kumar, Managing Director, Indeed India.

}

Initiatives such as the Solar Cities Programme, the launch of an Indian satellite to monitor greenhouse gases, and the Indian Network for Climate Change Assessment (INCCA) have opened doors for employment for skilled professionals in India.

“With the increased participation of women in the renewable energy sector, India can safely hope to achieve the projected target of employing over 300,000 people in the sector by 2022,” it added. In recent years, India’s increasing efforts towards the expansion of renewable energy have led to a substantial increase in solar power generation, through the setting up of several solar parks and solar power projects. Accordingly, there has been an increase in job searches for solar design engineers, solar project engineers and solar electrical engineers between October 2014 and October 2017. Source: PTI

August 2018

RESEARCH & ANALYSIS

Chinese Burn Will Only Make the Solar Industry Stronger A glut that drives prices lower will help the uptake of photovoltaic technology.

emember how there was a glut of computer chips in 2008, and then the world stopped using computer chips? Yeah, me neither. That’s a good reason to discount your worries about the effects on solar power from recent policy blows on panel manufacturers by the U.S. and Chinese governments. The falls in the share prices of some major producers have certainly been dramatic – 43 percent so far this year for JinkoSolar Holding Co., 20 percent for Canadian Solar Inc., and 4.4 percent for Hanwha Q Cells Co. But to date, what hasn’t killed the solar industry has only made it stronger.

Weakness Is Strength Falling solar module prices have been great for the solar industry

What will be the impact of the recent policy moves from Washington and Beijing? The Trump administration in January slapped a 30 percent tariff on imported solar panels, one reason that JinkoSolar and Canadian Solar shares are down so much this year, while the Chinese government last week said it would reduce the permits for new utility-scale projects this year and cut the feed-in tariffs that solar generators are paid for their kilowatt-hours. That’s clearly bad news for incumbent panel manufacturers, but it’s worth considering why. The near-term fall in demand in China – and the increase in supply from manufacturers that have announced 4.55 annual gigawatt-hours of new U.S. production capacity this year in response to Trump’s tariffs – will lead to a glut in the global market that will drive prices lower. That will hurt the margins of manufacturers, but help the uptake of photovoltaic technology, especially in Asia, where electricity demand is rising fast and utility-scale solar is already at or past the tipping point where its generation costs start to undercut fossil fuels.

Cheap as Chips Solar module prices are expected to fall by about a third in 2018 To see why, reflect upon some history. Solar module prices slumped 80 percent between 2010 and 2017 as rising efficiencies and burgeoning supply pushed down expenses. That process put many manufacturers out of business – but the plummeting costs caused global installed capacity to increase almost nine-fold, and the victors of that market battle have since done well on the spoils. Those who bought shares in JinkoSolar and Canadian Solar at the end of 2011 when the market was in crisis had received total returns of 33 percent a year and 22 percent a year respectively by the end of last week. That compares to 22 percent and 17 percent for investors in Taiwan Semiconductor Manufacturing Co. and Intel Corp. over the same period.

Value Driver In EV/Ebitda terms, the valuation of major solar module manufacturers has just returned to multi-year ranges

BY : Bloomberg

August 2018

In China, module prices – still about a third of the cost of a solar system – should fall 35 percent this year and another 10 to 15 percent in 2019, Yvonne Liu, Yali Jiang and Xiaoting Wang of Bloomberg New Energy Finance wrote in a note. That’s an acceleration of the expected pace before Beijing’s intervention, when a drop of 20 to 27 percent was forecast for 2018. While aggregate global demand will fall this year because of the decline in Chinese build, those lower prices may stimulate the market in 2019 and 2020, they wrote. We’ve become so used to large companies extracting a profit from their market power that an industry in which it’s hard to pick the winners three years hence feels like one that’s in a state of crisis. In truth, this is precisely the situation in which capitalism is supposed to excel, for the benefit of all. Policy changes in 2018 have been bad news for incumbent producers of solar panels. For the industry as a whole – and for the global climate – they’re likely to prove a salutary tonic. Source: Bloomberg

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RESEARCH & ANALYSIS

Lower incentives for Chinese Power sector stable, says solar developers to benefit Moody’s; ICRA sees mix results for UDAY India: Icra The reduction in incentives for solar energy projects in China will benefit Indian solar independent power producers with softer module prices, Icra Rating said.

he revision in feed-in tariff rates and imposition of installation caps for solar power projects by the Chinese government is expected to negatively affect the demand for solar power modules in China, Icra said in a statement. According to the statement, it has not only imposed a cap of 10 GW for new distributed generation solar power projects based on feed-in tariff in CY2018, against 19 GW installed in 2017, but further has removed the capacity target for utility scale projects and stated that no new utility scale projects should be awarded on feed-in tariff basis. “The policy changes in China are likely to impact the domestic demand for solar PV modules and consequently result in a softening of export prices for Chinese PV module manufacturers. This is likely to result in lower equipment costs for Indian developers/IPPs.

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“On the other hand, the aforesaid softening in the module price levels internationally is likely to be a negative for domestic module and cell manufacturers due to increase in competitive pressures through imports,” Sabyasachi Majumdar, Senior Vice President & Group Head, Icra Ratings said.

Out of the total 5.5 GW solar power capacity that has been bid out during FY2018, as much as 2.9 GW has been bid at tariffs equal to or lower than Rs 3 per unit. The developers have based the bids on expectations of fall in imported module prices and certain other advantages like availability of land and evacuation infrastructure for projects in solar parks. However, it said that risks have accentuated because of the unexpected reversal in the trend of falling module prices with prices rising from about 30 cents/watt in May 2017 to about 36 cents/watt in August 2017 and remaining in this range till date, besides factors like the rising interest rates and the fairly steep depreciation of the rupee in recent months. Here onwards, any material reduction in module prices from the current levels will improve the viability of these projects. As per Icra estimates, an 8 cent/watt decrease in the PV module price is estimated to lower the capital cost by about 13 per cent, which in turn is estimated to result in improvement in cumulative debt service coverage ratio (DSCR) by 0.15 times for a solar power project with tariff of Rs 2.5 per unit.

This is assuming a debt and equity ratio of 70:30, rupee dollar exchange rate of 67, cost of debt at 9.5 per cent post commissioning with debt repayment tenure of 18 years and plant load factor (PLF) level of 24 per cent (with DC-AC ratio of 1.3 times and degradation factor of 0.5% per year). The recent trend in rupee depreciation against USD, if continued, will however partially offset the benefit of module price reduction for the solar IPPs in India, It added.

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Moody’s projected a stable outlook for power sector while its Indian affiliate ICRA said that reforms for the distribution sector under UDAY scheme have seen mixed results. “Moody’s has a stable outlook on the power sector. However, ICRA believes that the reforms for the Distribution Utilities (DISCOMs) — UDAY (Ujwal DISCOM Assurance Yojana) have seen mixed success,” a Moody’s statement said.

t the 4th Annual Credit Conference in Mumbai, the Moody’s statement said its stable outlook on the power sector reflects that improvement in domestic coal availability is moderating the fuel supply risk. It also said that while distribution utilities have seen an improvement in their liquidity, the extent to which operational efficiency has improved is still unclear. Moody’s believes that India is taking steps to align its power generation mix towards its nationally determined contribution (NDC) commitments under the Paris accord signed in December 2015. Renewable Energy’s (RE) share in new capacity additions has been around 60 per cent for last two years while on the other hand the coal based additions have seen a sharp slowdown.

}

India’s focus on greening its energy mix would imply strong growth for renewable energy over next many years, said Abhishek Tyagi, Moody’s Vice President and Senior Analyst.

}

This growth, according to the US based credit rating agency, will however be accompanied by key challenges for RE projects, notably weak offtaker credit quality and an evolving regulatory framework. Moreover, the recent round of biddings in the case of solar projects have seen a sharp drop in the quoted tariffs, and the ability of such projects to achieve financial closure, given the concerns over the fact that the long-term viability of projects at such tariffs remains to be seen, it said. ICRA Ltd Executive VP and Chief Rating Offier Anjan Ghosh said the UDAY reforms for discoms have seen mixed success. However, it said, some of the state governments have in turn lent the same amount as loan, which dilutes the beneficial impact to some extent. Nonetheless, it added, these loans will be subsequently converted to grant over the next three years and the full interest savings benefit can be seen in the 2020-21 fiscal. More importantly, however, the progress on achieving the operational efficiency improvement has a lot of ground to cover. As against the target AT&C (aggregate technical and commercial) losses of 15 per cent that all utilities are supposed to achieve by FY2019-FY2020, data available shows that some of the states, including large ones like Bihar, Rajasthan, Uttar Pradesh and Madhya Pradesh have much higher loss levels, in the range of 25 to 36 per cent, it said. The sustainable improvement in financial position of the discoms remains dependent on improvement in operating efficiencies and reducing the gap between tariff and cost of supply, it added.

August 2018

RESEARCH & ANALYSIS

China’s solar policy change triggers another cycle of price pressure and industry consolidation, but global demand fundamentals remain strong : IHS Markit HIGHLIGHTS Although photovoltaic (PV) industry fundamentals remain solid, recent solar industry policy changes in China will lead to overproduction, price declines and market consolidation. The IHS Markit outlook for 2018 installations in China has been cut from 53 gigawatts to 38 gigawatts. Furthermore, as the majority will already have been completed in the first half of 2018, installations completed in the second half of 2018 will amount to less than half the number installed in the first half of the year. Accelerated demand across the world will still only partially compensate for the reduced outlook in China. As a result, the IHS Markit outlook for global PV installations in 2018 has fallen from 113 gigawatts to 105 gigawatts, which is still 11 percent higher than in 2017.

OUR ANALYTICS On May 31, 2017, the Chinese government announced its “2018 Solar PV Generation Notice,” which set hard limits on PV installations in China this year. This move will force the global solar industry to increase competitiveness and make up for falling prices, which will only make it more competitive in power markets worldwide. China has grown to become the dominant country for PV technology, both in terms of installations and the manufacture of PV modules. With 50 gigawatts in 2017, China accounted for over half of all global installations. The sustainability of the market growth levels the industry has enjoyed recently have never been assured, as high levels of curtailment, severe delays in feed-in tariff (FiT) payments, a growing subsidy-budget deficit and an oversupply of electricity have cast doubt on PV demand fundamentals in China. Even so, the timing, ferocity and immediate impact of this latest policy U-turn have taken the global PV industry by surprise. This sudden slump in China will reshape the whole PV supply chain. Supply-chain producers with a significant share of business in China will be placed under great pressure, causing a fiercely competitive environment in international markets, which will lead to aggressive price reductions across the board.

August 2018

European markets are waiting for a decision on the MIP in August. If the MIP is removed in Europe, the new prices will accelerate installations. In the US market, lower international prices will counteract the 201 case import duties and increase module imports. The precise outcome, in terms of volumes installed, will depend on the appetite of quickly emerging regions to procure modules in the second half of the year or bet on additional price declines. For now, many projects and orders are on hold, with developers and engineering procurement construction firms (EPCs) fully aware that the industry flipped to a buyers’ market overnight. The bigger questions now surround the outlook for the next two to three years. The global solar industry is now forced to take another significant step to reduce production costs, after a period of relative stability. The fact that solar is becoming increasingly competitive in power markets worldwide perhaps offers some light at the end of what is currently a rather dark tunnel for the PV industry. Solar power is already the cheapest source of electricity in some countries, and it’s also the largest energy source, in terms of capacity net-additions, for the last two years, Once these lower prices are settled, and the industry has gone through another wave of oversupply, low profitability and consolidation, solar energy will become even more competitive across new markets.

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India‘s Most Pioneering Solar Exhibition and Conference Twice a Year Serving Two Key Markets! NEW IN BENGALURU, KARNATAKA, INDIA! BANGALORE INTERNATIONAL EXHIBITION CENTRE

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August 2018

PV MANUFACTURING

What happens when low quality, unproven materials are used in solar panels? Revealing the results of over 4 million solar panels inspected in 275 Installations across the world

AUTHOR: RAHUL KHATRI Technical Manager, DuPont Photovoltaic Solutions

46Â

August 2018

The quality of PV modules and the materials used in them can be best assessed by evaluating their performance in the field. Challenging climatic conditions,like the osein India,cause severe environmental stresses for PV materials in the field over their lifetime. Materials with poor durability can degrade quickly, so materials mustbe chosen carefully. Material degradation can lead to premature, faster power degradation, electrical safety hazards or even catastrophic failures of solar PV systems. Though PV modules manufactured by different suppliers look similar,different Bill of Materials (BoM)are used, and module performance varies significantly based on the materials used. Understanding

the field performance of different modules and materials is crucial to differentiate between good and poor quality materials toensure reliable, durable, safe operations for PV systems.DuPont initiated an extensive global fielded module inspection program tostudy module aging and degradation and analyze root causes. Many modules from the field have been taken to DuPont PV labs for detailed analysis.The learnings can be used to strengthen themodule selection process for project developers, EPCs, banks, and others.This article focuses on key findings from the inspections of solar installations and recommendations based on the extensive analysis done on the fielded modules.

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PV MANUFACTURING

CELL DEFECTS

Dupont Field Module Inspection Study: Result Summary

he focus of this study was to inspect solar panels to understand the real aging and degradation of modules in the field. The study included visiting more than 275 installations (>1GW) and inspecting more than 4 million modulesinstalled around the globe. Figure 1 shows the summary of visual defects observed in different materials. About 22% of the inspected modules exhibited visual defects in one or more components. Defect rate was found to be highest in cells and observed in about 12% of modules checked. This was followed by backsheet defects which were observed in 9.5% of modules we evaluated. Encapsulation defects were observed in 1.3% of the modules. Some visual defects were observed in junction box and glass as well. Typical failure modes observed were cell snail trails and ribbon corrosion backsheet cracking, delamination, abrasion and yellowing; and encapsulant yellowing and delamination from glass.High defect rates were observed insolar cells, leading to accelerated power lossand solar backsheets leading to current leakage, inverter tripping, loss of insulation and increased safety risks.

The visual changes in cells mainly included snail trails. Snail trails, as shown in figure 2a, is a discoloration of fine silver grid lineson the front side of the cells,which develop mostly along the cell micro-cracks.This phenomenon occurs due toa reaction between EVA encapsulant and silver grid lines in the presence of oxygen and UV light. [ref 1] Snail trail defects confirm the presence of cracks in the cells that can impact the power generation of the module over time. Solder Ribbon Corrosion- can be seen as a color change on the flat wires used to interconnect individual cells â&#x20AC;&#x201C; in many modules as shown in figure 2b.This defect can lead to increased resistivity and, in extreme cases, can lead to ribbon break and module power loss.

Figure 2: a) Snail trails along cell crack; b) Ribbon

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August 2018

47Â

PV MANUFACTURING

ENCAPSULANT DEFECTS

BACKSHEET DEFECTS

The most common encapsulant defect observed was yellowing of EVA as shown in figure 3a, due to constant exposure to UV radiation and elevated temperature. Yellowed EVA was predominantly observed in older modules.This defect can reduce light transmission by up to 6%, directly impacting power generation [2,3]. Another issue related to encapsulant was its delamination from the front glass as shown in figure 3b due to poor material selection or lamination process in production.Based on the severity of delamination, this defect can significantly reduce light transmission and drop power output.

c a

In backsheets, observed defects included cracking and yellowing of the inner layer, and cracking, yellowing, delamination and erosion of outer layer as shown in figure 4.While cracking, delamination and abrasion of the backsheets represents actual failures of the backsheets, change in appearance of the backsheet such as yellowing is an indicator of polymer degradation and can potentially result in the embrittlement and cracking of the backsheet. Cracking is typically associated with the loss of mechanical properties and increase in brittleness of the backsheet material / materials due to exposure to UV radiation, heat and humidity. The brittle material eventually cracks due to thermal stress caused by day-night changes in the temperature. Erosion of the outer layer is caused by degradation of the polymer outer layer. Loss of the outer layer can also happen due to abrasion by airborne particles propelled by wind, in the extreme case sandstorms at high speeds.Erosion of the outer layercan lead to a significant reduction in its thickness over time. These backsheet failures can expose energized electrical components and accelerate power degradation,create electrical safety hazards, or both. Inner layer backsheet cracking has recently been linked to moisture ingress and subsequent overloads and inverter tripping. Many backsheet typesare observed in the field [ref. 4,5], such as backsheets based on Polyamide film, PVDF Film, PET Film, Fluoropolymer coatings, and Tedlar® PVF film as outer layers.Typical observations are shown in figure 4. Note the Tedlar® PVF based backsheet (figure 4h) shows no visible defects and the field had <0.5% annual power loss at 27 years of service

• Polyamide based-backsheets: extensive outer layer cracking (figure 4a) • PVDF-based backsheets: Outer layer cracking (figure 4b); Inner layer yellowing(figure 4c) • PET backsheets: Inner layer cracking (figure 4d), outer layer cracking (figure 4e), yellowing (figure 4e and 4f) and abrasion (figure 4g)

Figure 3: a) EVA Yellowing; b) Encapsulant delamination from glass

August 2018

In many cases, the cracking of backsheet inner / outer layer was leading to current leakage, which is a serious safety hazard. Moreover, in some cases, the defect led to significant power loss in the form of module ground faults (no power output) and inverter tripping (no power output from the whole block).

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PV MANUFACTURING

Figure 4: a), b) AAA and PVDF outer layer cracking; c) PVDF inner layer yellowing; d) PET Inner layer cracking; e) PET outer layer crackingand f) yellowing; g) PET outer layer abrasion; h) PVF backsheet no backsheet degradation and <0.5% annual power loss after 27 years in field

CONCLUSION

Field studies conducted by DuPont clearly demonstrate that modules with different materials behave differently in the field. Low quality materials degrade quickly when exposed to environmental stresses that can negatively impact power generation and safety performance of the modules. Alarge percentage of less than 5-year old installations exhibited material level defects in solar panels highlighting the compromise made by module suppliers.Cellsand backsheets exhibited early failures and high defect rates and call for greater attention. Moreover, defects such as backsheet crackingare becoming frequent in young modules and highlightthe risk of using unproven materials. It has become critical for stakeholders investing in PV plants to give more importance to BoM while selecting panels to specify and ensure use of right materials rather than leaving it to the discretion of module suppliers. DuPont has developed a set of specifications for key PV materials based on the data collated from the field studies. Please write to us if you are interested in BoM specifications or discussing the results of these studies in detail.

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REFERENCES 1.

3. 4.

Fan, Jing; Ju, Daliang; Yao, Xiaoqin; Pan, Zhen; Terry, Mason; Gambogi, William; Stika, Katherine; Liu, Junhui; Tao, Wusong; Liu, Zengsheng;, “Study on snail trail formation in PV module through modelling and accelerated aging tests”By Solar Energy Materials & Solar Cells (2017), 164, 80-86. Pern, F. J.; “Ethylene-vinyl acetate (EVA) encapsulants for photovoltaic modules. Degradation and discoloration mechanisms and formulation modifications for improved photostability”, Angewandte Makromolekulare Chemie (1997), 252, 195-216. Module Analysis of 23 years field-aged poly-Si module, Dongxian, Shenhui T.J. Trout, W. Gambogi, T. Felder, K. R. Choudhury, L. Garreau-Iles, Y. Heta, and K. Stika; “PV Module Durability – connecting field results, accelerated testing, and materials” IEEE PVSEC, Washington D.C. (2017) K. R. Choudhury, W. Gambogi, T. Felder, S. MacMaster, L. Garreau-Iles, H.J. Hu, R. Khatri, T. J. Trout, “Degradation of fielded PV modules from across the globe”, WCPEC-VII, Waikoloa, HW (2018)

August 2018

PV floating PLANT

FLOATING PV PLANT R

enewable energy sources are of prime importance as they would power our future. Solar energy power plant which utilises the sunâ&#x20AC;&#x2122;s energy needs adequate space for installation. It is a well-known fact that out of the 510 million Km2surface area of earth, a mere (appx.) 29% is covered with land. Additionally (at some locations) the land may be of importance and it may not be feasible to dedicate (some) space for solar energy power plant. In a country where cities are dense and agricultural land is limited, installing solar power plant (which require huge swathes of land) may not be viable. This is where floating PV power plant can come to our rescue. Floating PV power plant as the name suggestsare floating bodies of solar PV plants on water

50Â

August 2018

Mr. Sunil Rathi

Director Sales and marketing Waaree Energies ltd

The basic components of floating PV system are mentioned below:

1 2 3

Floating structure: Also known as Pontoon, the floating structure is a sturdy structure which easily holds the solar panel. It also has enough buoyancy to stay afloat on water while supporting the heavy load.

Mooring system: The floating structure is held securely with a permeant structure known as mooring. This halts the free movement of the floating structure in water. The floating structure can be fixed with reference to a point on bottom of waterway eliminating the need to connect to the floating structure to the shore. This can be done with help of anchor mooring.

Under water Cabling:This form as an important link between the grid and the solar panels. Due to its usage under water, the cabling may be designed to be shock and/or leakage proof. A typical technical diagram of floating PV system is shown in the figure below:

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PV floating PLANT The floating PV system has the following advantages over the ground/ roof mounted solar systems

Increased output from system: Various studies have been carried out to understand the output of floating PV system. These studies confirm that there has been an increase in energy generation from such plants. This increase can be attributed to the reduced operating temperature of solar modules resulting from natural cooling from water. Additionally, these systems if installed in huge water bodies may have less settled dust on them resulting in increased energy output from plant. An increase in energy of around 10% to 12% from such ystem may be realized.

Figure 1: Recently installed floating PV power plant in Kerala (Source: PVTECH)

Savings of water: Water from water bodies is lost in form of vapour. Installing floating PV plant reduces the water loss due to evaporation. Additionally, cleaning a typical solar power plant require huge amount of water. CEEW estimates that around 7,000 ~ 20,000 litres of water per MW is required in cleaning of plant. A cleaning cycle in power plant may happen more than once a week. Such huge quantities of water may be saved if floating PV system is used. The cleaning water used in floating PV system goes into the water body again which can be reused leading to savings in water and its associated cost. Alternate source of energy at Dams: Dam based reservoir can utilize their water bodies to install floating PV system. Such system may help boost the usage of solar energy during day time. The water saved during day time may be utilized during night time to generate more power reducing dependence on fossil fuel based plants. Additionally, the Ministry of Power had already indicated in its (draft)National Tariff Plan (released in 2016) that it may implement Renewable Generation Obligation (RGO). While the policy is still in draft state, utilizing floating PV may fulfil the generators RGO. The concept of floating PV is not new to the world. There are various countries in the world like, Australia, China, Japan, UK, etc. which have already installed floating PV plants. India which has adequate water bodies has also tried and implemented floating PV projects. Recently, India’s largest floating solar PV plant standing at capacity of 500 kW was completed in Kerala. It could withstand the variations in water level of 21 meters between summer and monsoon. The country seems to have realized the potential of floating PV system and further capacity addition in same technology can be expected soon.

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Figure 2: Technical details for floating PV system (Source: Google Images) Weight balancing is one of the important factors in floating PV plants and any reduction in the weight would result in significant savings. In our last blog, we informed you about performance of our Merlin modules. These modules are flexible and come at a reduced weight (when compared to the frame based solar modules). Such modules may be a perfect match for this application. Additionally all our modules are tested stringently and are certified by various international bodies for maximum on field performance. We encourage the use of our modules on both the existing as well as such innovative ideas.

August 2018

Energy storage

THE NEW RULES OF Competition In Energy Storage

The costs of energy-storage systems are dropping too fast for inefficient players to hide. The winners in this market will be those that aggressively pursue and achieve operational improvements.

E AUTHOR: David Frankel

partner in McKinseyâ&#x20AC;&#x2122;s Southern California Office

Sean Kane associate partner

Christer Tryggestad senior partner in the Oslo office

52Â

August 2018

nergy-storage companies, get ready. Even with continued declines in storage-system costs, the decade ahead could be more difficult than you think. The outlook should be encouraging in certain respects. As our colleagues have written, some commercial uses for energy storage are already economical. Still more uses will become attractive for utilities, industrial customers, and households, because lower system costs, combined with developments such as the rollback of solar incentives, will make it financially sensible to store power rather than export it to the grid. The more the cost of an average system goes down, though, the less room storage developers will have to undercut competitors, which will force them to squeeze

every dollar of savings out of processes like customer acquisition, engineering, permitting, system integration, and installation. This is essentially what happened in the solar photovoltaic (PV) business from 2005 to 2015, when a 75 percent drop in the cost of PV modules compelled solar developers to focus on operational efficiency, triggered a major restructuring among module manufacturers (including several bankruptcies), and compressed profit margins. As the market evolves, we expect a relatively small set of energy-storage companies to win big, taking share away from less cost-effective rivals. In this article, we look at how the cost profile of energy-storage systems is changing and what companies in the sector can do to boost their chances of success.

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Energy storage

Going down: Battery and balanceof-system costs

uring the past five years, several factors have caused the costs of energy-storage systems to drop across the board. Global demand for consumer electronics and electric vehicles spurred investments in battery-pack manufacturing that brought down the unit cost of each pack. Meanwhile, other hardware such as inverters, containers, and climate-control equipment also became cheaper, thanks to design advances and efficiency gains in manufacturing and supply-chain management. And “soft” costs (customer acquisition, permitting, and interconnection, among others), as well as engineering, procurement, and construction (EPC) costs, declined as companies gained experience and streamlined their processes. From 2012 to 2017, battery costs fell more than 15 percent per year, for a total five-year drop of more than 50 percent. In aggregate, balance-ofsystem (BOS) costs—other hardware, soft costs, and EPC—declined even faster: more than 25 percent per year. Overall, the decline in BOS costs contributed more than three times the savings that the decline in battery costs did. Our component-by-component analysis of further cost-improvement opportunities suggests that the costs of energy-storage systems will continue their rapid decline, with some variations by type of system (see sidebar, “How costs compare by type of system”). This decline could, however, be held up for several reasons. For example, utility and power-market regulators might

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Exhibit 1

enact rules or policies such as those governing permitting and interconnection that make storage systems costly and time-consuming to install. Investments in manufacturing might produce smaller improvements in efficiency than they did in the solar PV market. Tariffs could boost the cost of imported batteries and BOS hardware from low-cost manufacturing locations. Having assessed the potential for these developments, we think it is unlikely that they will materially impede cost reductions for energy-storage systems, and so we have not accounted for them in the two scenarios described below. In our base case, the installed per-kilowatt-hour cost of an energy-storage system would decrease roughly 55 percent by 2025, thanks to continued advances in manufacturing scale and technology as well as improvements in storage-system engineering and design. There is also a plausible best-in-class scenario in which marketleading energy-storage manufacturers and developers deliver a step change in cost improvement: additional process-efficiency gains and hardware innovations could reduce the cost of an installed system by more than 70 percent (Exhibit 2). At that point, each kilowatt-hour of storage capacity would cost about $170 in 2025—less than one-tenth of what it did in 2012. In this scenario, battery packs could break through the $100 perkilowatt-hour mark by 2020.

August 2018

Energy storage

• Battery-pack costs decline by more than 50

•

percent by 2025 in the base case as global competition intensifies, leading to largerscale manufacturing, consolidation, improvements in manufacturing processes and technology, and commoditization of products. The best-in-class scenario envisions that battery makers will incorporate multiple chemistries and formats (for example, reduced cobalt cathodes and solid-state batteries), gain more efficiencies from automation and added scale, integrate their supply chains, and even move some operations like electrode manufacturing in-house. All these advances can be financed inexpensively as the cost of capital comes down. BOS hardware costs drop by more than 50 percent in the base case. Design improvements remove unnecessary costs and complexity from inverters, wiring, containerization, climate controls, and other components. Further competition from incumbents and new low-cost manufacturers will also pressure pricing for storage hardware. In the best-in-class scenario, the use of new materials and technologies (such as silicon carbide for inverters), the

•

accelerated growth of low-cost manufacturers, and innovations in design (such as the development of prefabricated, modular components) enable additional cost savings. Soft costs drop 60 percent in the base case. As utilities optimize the use of battery storage, they streamline their procurement processes and require less time and effort from developers. The additional cost reductions expected under the best-in-class scenario stem from developers’ efforts to digitize tendering and the emergence of standard approaches to permitting and interconnection. EPC costs fall in the base case because efficient, experienced EPC firms achieve economies of scale and reduce on-site labor by pursuing standardization in design and construction. Alliances with committed developers also provide EPCs with the confidence to invest in capabilities and resources that improve efficiency. The best-in-class scenario accounts for larger-scale EPC enterprises, the development of hardware and software with plug-and-play compatibility, and prefabricated components that reduce manual installation steps on-site.

Exhibit 3

August 2018

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Energy storage

The low-cost future of the energy-storage market will make for a tough competitive environment—but a rewarding one for players that make big improvements in performance. Here is how companies along the value chain can achieve the cost reductions they’ll need to attract and win customers:

Staying ahead: Opportunities for energy-storage players BOS hardware manufacturers will likely need to pursue aggressive increases in scale. Low-cost manufacturers have not yet turned their full attention to the storage market. But that situation should change as utilities spend more on energy storage. (A similar dynamic played out in the solar-inverter market over the past five years or so, when new Asian manufacturers arose to challenge incumbents.) To counter the low-cost threat, existing manufacturers may have no choice but to pursue economies of scale and perhaps expand into other product segments. Few companies now manufacture both storage components and solar inverters, but combining operations could be beneficial because the underlying technologies are similar. Component makers can also reduce costs by adopting new technologies such as three-phase inverters by replacing inverter hardware with software and by switching to lighter materials like silicon carbide. EPC companies can adopt more efficient practices, such as lean construction (for example, optimizing crew sizes and eliminating downtime and wasted effort), prefabrication of major system elements, simplified bidding, and streamlined interconnection processes. Some of these practices will take hold naturally, as companies gain experience. Purchasing components in higher volumes will reduce per-unit costs. Alliance-contracting relationships can enable companies to work with sophisticated, low-cost installation partners across many projects. There is also ample opportunity to save time and effort with better design. Standardizing certain aspects of storage systems (for example, container and climate-control specifications) will lessen the need for expensive custom engineering. EPC companies should learn to match their designs closely to customers’ requirements and thereby avoid including components that are more expensive than necessary. Modular hardware, along with hardware and software that are made to be compatible, will also eliminate manual installation steps. Storage-project developers used to have to teach new customers about storage technology, system design, project economics, and available incentives. All this effort made customer acquisition more expensive. Now that customers are better informed, selling a project costs a good deal less. Technology can make customer acquisition even more efficient. Advanced analytics can help developers identify prospective customers and target them with attractive offers. Digital tools for engaging customers and facilitating sales, which are already in use, can be improved with automated capabilities for estimating savings and developing preliminary system designs (for example, simulating customer loads to help with system sizing, or using images from satellites and drones to lay out sites). For utility-scale projects, developing storage along with renewable-energy generation will make projects more profitable by spreading out customer-acquisition costs, making more efficient use of land and site infrastructure, and improving the ability to optimize intermittent renewable generation (for example, time-shifting generation). Storage developers and system integrators will also need more flexible approaches to procurement so they can take advantage of rapidly declining battery and BOS hardware costs. Like their peers in the solar market, some storage developers struck forward-pricing agreements with battery and component makers in the hope of achieving certainty over their costs—and came to regret these agreements as costs fell. Storage developers should be mindful of the same risk.

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August 2018

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ELECTRIFYING INDIA: Building Blocks For A Sustainable EV Ecosystem

E D.S. Rawat Secretary General, ASSOCHAM

lectric Vehicles (EVs) have witnessed an unprecedented global interest in recent times, emerging as the one of the most promising alternate powertrain technologies with zero tailpipe emissions and long term economic viability. India, too, is actively considering EVs to reduce India’s excessive dependence on oil imports and curb pollution levels. In addition, the country is also looking at EVs as a stepping stone in designing an intelligent transport infrastructure in India. Electrification of mobility is still in nascent stages in India but significant growth momentum is expected over the medium term. The growth, however, is dependent on multiple factors such as technology development, demand creation, price ifferentials, charging infrastructure and ease of charging for unhindered transportation.

By : Electrifying India

August 2018

he global automotive industry is at the cusp of a paradigm shift from internal combustion engine vehicles to zero emission vehicles. This is primarily due to the stringent regulatory interventions by governments worldwide in response to increasing greenhouse gas emissions and depleting air quality. India, too, is actively exploring cost-effective and viable solutions to the problem of poor air quality in a number of its cities. Furthermore, India is also focusing on reducing its excessive dependence on oil imports. The country has announced a significant shift to an all – electric public fleet by 2030, necessitating attention and action by players across sectors including automobile, power and utilities, oil and gas, etc.

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EV LANDSCAPE in India

The EV ecosystem is an interplay of several sectors and stakeholders. Thus, it is imperative for these stakeholders to come together to drive EV adoption. In a similar way, the government needs to consider the holistic EV ecosystem while developing the regulatory agenda Source: EY analysis The transition to EVs would present challenges for the incumbents,while, at the same time, offering a tremendous opportunity for those who undertake the requisite investments and start planning for the shift. Given the scale of the Indian automotive market, any significant proportion of vehicle electrification by 2030 is likely to present a multi-billion dollar opportunity. Market players across sectors will find it difficult to ignore this as they risk losing out to competitors both from within the industry as well as new entrants from other sectors. In light of the above scenario, we have arrived at the following considerations for the industry participants that could help them gain ground in the emerging mobility landscape:

• Develop and operationalize a future-of• • • • • •

mobility strategy to position the business in the evolving market landscape. Consider alternate business models that decouple ownership (vehicle, battery) and accessibility. Explore niche markets and use cases that are more amenable to EV adoption. Challenge the type of innovation portfolio required — optimize “how to win vs. where to play”. Collaborate across traditional industry boundaries to create a competitive ecosystem. Work closely with “city as a customer” — to deliver exceptional consumer experience. Collaborate closely with policymakers on pilot programs to demonstrate viability.

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The Indian EV market is at a nascent stage with EVs forming less than 1% of overall vehicle sales. The market is now seeing a renewed interest and engagement on the back of government’s plan to achieve significant electrification by 2030. The transition to EVs is necessary for the Indian automotive industry to continue to etain its foothold and gain additional groundas the world shifts its axis towards EVs.

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Indian EV market and key trends India has emerged as one of the key automotive markets globally with a dominant position across several vehicle segments. The country is actively exploring cost-effective and viable solutions to the problem of poor air quality in a number of its cities as well as reducing its excessive dependence on oil imports. The EV industry is at a nascent stage in India and is dominated by e-rickshaws and two-wheelers (2Ws). However, the market has the potential to grow significantly in the coming years. A varied pace of electrification is expected across different vehicle segments driven by specific user groups in India. The growth will depend on multiple factors that will be crucial in making the market ready for electrification of mobility in India.

Source: EY analysis, IEA. For more details, please refer to EY’s thought leadership report titled “Standing up India’s EV ecosystem - who will drive the charge?”

2-Wheelers (2Ws) are expected to be one of the early adopters of electrification. High vehicle utilization and easy home or workplace charging would drive the uptake in the commercial 2W segment The sales saw a dip in the following years with a withdrawal of subsidies by the Ministry of New & Renewable Energy (MNRE), with sales of only 25,000 units in 2016. However, development of an end-to-end ecosystem (right from in-house manufacturing to setting up the charging infrastructure) by emerging start-ups is likely to accelerate the adoption of e2Ws.

2Ws is the largest segment of the Indian automotive industry representing ~80% of Indian automotive sales in FY17 (17.6 million units). Owing to the vastness of this segment, it has a huge potential to promote emissionfree mobility in the country. The e2W segment has already demonstrated its potential in 2011–12, when e2Ws clocked sales of 90,000 units. However

The following aspects would help drive e-mobility in this segment: ► Over 2 million petrol-run 2Ws with a long daily run engaged in courier services ► Intra-city travels (maximum of around 100—150 km a day) ► Ease of charging: Can be easily charged on a standard residential/workplace plug point

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3-Wheelers (3Ws) Given the head start of the e-rickshaw segment, a mild push by the Government could drive a nationwide adoption

India has emerged as one of the biggest 3W markets, with total sales of 0.6 million units in FY17. 3Ws are widely used in India as an affordable means of public and goods transportation over short to medium distances. The segment is also witnessing an influx of e-rickshaws, with some estimates putting their numbers around 1 million. (3Ws) Considering the lack of essential public transport for last-mile connectivity, e-rickshaws could play a critical role while giving the necessary boost to vehicle electrification in the country. However, there is a need for significant steps to ensure their expansion: ► Make safety and prototype tests mandatory ► Integrate e-rickshaws in city-based mobility plans ► Define area of operation; ascertain limit to the maximum number of e-rickshaws per zone; provide designated parking places as well as charging facilities ► Relax the rate of interest on loans from various financial institutions

PV fleets are expected to adopt EVs early, while retail customers are likely to wait for a better value proposition

India is the fifth largest car market in the world with over 3.0 million cars sold in FY17. The market offers a significant growth potential given the car density stands at 34 cars per 1,000 individuals. Private Vehicle Electric car sales have so far been be very low on account of multiple challenges such as high cost, range anxiety, lack of EV models, etc. The acceptance of EVs will depend on multiple drivers such as range, cost and charging infrastructure and will also vary for different applications / use cases: ► Corporate fleets, which have a defined route and operations in a limited geography, will be the first ones to adopt ► Government fleet is already one of the areas where EVs are being deployed through the ongoing procurement of 20,000 EVs by Energy Efficiency Services Limited (EESL). These tenders will help provide some scale to EVs and improve the confidence toward the adoption of EVs ► Cab aggregators/fleets are likely to be more willing to adopt EVs as the low running cost of vehicles is one of the major influencers in purchase decisions ► Private consumers are likely to be the last in line to adopt EVs, given the concerns around range, high acquisition cost and lack of awareness

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CVs: Electrification of buses allows for an opportunity to showcase a plausible deployment of EVs in the Indian context

The intra-city bus segment is more market-ready than others because of shorter trip length, route predictability and ease of charging at bus depots. India is already witnessing a few e-bus pilots by state-run transport units (SRTUs) — Navi Mumbai, Himachal Pradesh and Bengaluru — with a few more in the pipeline — Chandigarh, Telangana and Gurgaon.

Commercial Vehicle ► The Government is exploring ways to address one of the biggest hurdles — the high cost of e-buses (due to larger batteries). It is developing a plan to work with automakers to reduce the battery size of intra-city buses from 300 KWh to 50 KWh ► For a large-scale sustainable rollout of fleets of e-buses, there is a need to formulate a city-based approach by running a pilot in smart cities, installing charging points at major bus depots and rolling out pilots of fast charging and battery swapping stations ► In a welcome move, several state governments have rolled out e-bus tenders in 10 cities. The initiatives should help the market achieve some scale while also increase consumer confidence in EVs ► In the CV - goods carrier segment, we believe there are niche user groups/applications within the SCV and LCV segments that could see early adoption. Some of the potential applications include postal delivery vans and urban delivery vans/trucks. These vehicles have low average daily run and some route predictability, which can be served by current/upcoming product offerings ► On the other hand, the electrification of M&HCVs is likely to be further out as the current range does not meet the requirement of average daily run of these vehicles. Additionally, the nature of their operations is also inter-city, which necessitates a widespread network of charging infrastructure on main highways which, currently, is not in place

August 2018

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1.2 Central-level policy frameworks on EV adoption in India Under the National Electric Mobility Mission Plan 2020 (NEMMP), scheme, a total estimated subsidy worth INR 14,000 crore is planned to be invested in creating infrastructure and promoting the use of environment-friendly electric vehicles. In 2015, the Government of India launched Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) scheme for a two-year period at an approved outlay of INR 795 crore, with a focus on technology development, demand creation, pilot projects and charging infrastructure. The scheme has been extended till September 2018 or till the time an inter-ministerial consensus on funding for the FAME- II scheme is reached. Under FAME -II, the government is planning to extend financial support of INR 8,730 crore for five years. The focus area of the scheme is likely to be the electrification of public transport by rolling out a number of electric buses, electric 3Ws and electric shared cabs for multi-modal public transport. The fund support includes INR 2,500 crore for buses, INR 1,000 crore for fourwheelers,INR 600 crore for two wheelers (with maximum speed greater than 25 km) and INR 750 crore for high speed threewheelers. The Central Government has taken several fiscal measures to drive EV adoption in the country. Under FAME-II, the government plans to provide long-term tax holidays for domestic manufacturing and levy high custom duties on equipment imports. The proposal of mandatory sourcing of 50% domestic components, 60% in the second year and 70% in the third year is also likely to provide a boost to the ‘Make in India’ program

Lower rates of GST for EVs has also been implemented by the Government as it is expected to help electric mobility gain momentum ► Pure EVs have been kept in the 12% tax slab under GST ► Manufacturing of EV batteries and other EV components have been kept under the GST bracket of 28% ► Hybrid vehicles have been kept in the same category as luxury cars and will be taxed at the peak rate of 28% plus a cess of 15% The Government backed Energy Efficiency Services Ltd (EESL) has issued tenders for 20,000 EVs to be deployed across the country for government use. The government, in a recent move, has approved distinctive green license plates for electric vehicles in order to encourage people to use them. The purpose behind distinctive number plates is their easy identification for proposed benefits such as concessional toll, preferential treatment for parking and free entry in congested zones. The government is also planning a few other measures such as allowing youth in the age bracket of 16- 18 years to drive electric scooters, mandating taxi aggregators to have a certain percentage of e-vehicle fleet and bringing down the GST on batteries to 12% from 28%. There is an ongoing debate across various ministries on the taxation policy for EVs i.e. whether just pure EVs be kept in a lower GST slab or an emissions based taxation is followed. We believe, clear policy guidelines are essential for the EV market to take-off, given the huge capital investments involved.

We recommend a focus on both fiscal and non-fiscal incentives in the short run and, in order to make the ecosystem selfsustaining, a shift to only non-fiscal benefits in the long-run.

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1.3 State-level policy frameworks on EV adoption in India Along with the Central Government, various state governments have also started developing their EV and charging infrastructure policies. These states are looking to take advantage of the opportunities presented by the upcoming transition to EVs. States such as Andhra Pradesh, Karnataka, Maharashtra, Telangana and Uttar Pradesh are the first movers, coming up with their own policies to promote the EV ecosystem while electric bus tenders have also been released by several state governments across 10 cities. State governments also plan to develop charging infrastructure as a commercially viable business venture that will attract private investments. We believe, for a successful transition to EVs, the Centre and state governments have to align their policies, particularly, relating to transport and power, which forms the major components of EV ecosystem

ANDHRA PRADESH The state government is looking to put in place an electric-mobility policy and is seeking to attract investments of INR 30,000 crore in the EV industry by providing capital subsidies to automakers and charging-equipment manufacturers

As a part of the EV drive, the Andhra Pradesh Government and Energy Efficiency Services Ltd (EESL) have inked an agreement to invest INR 10,500 crore over the next five years to deploy about one lakh EVs in the state. Andhra Pradesh, in its proposed policy is looking at waiving off registration and road tax on the sale of EVs. In addition, the Government plans to impose additional taxes on petrol and diesel vehicles and introduce promotional schemes for women and consumers for 2W purchases. In order to invite investments into the charging infrastructure, the Government has proposed to provide capital subsidy and SGST exemptions for charging infrastructure installations. They also have a plan in place to provide land at concessional rates to charging stations and battery swapping kiosks and are looking to make it mandatory for bus terminals, bus stops, government offices and public parking to have charging stations. KARNATAKA With the aim of becoming the EV capital of India, Karnataka government approved the stateâ&#x20AC;&#x2122;s Electric Vehicle and Energy Storage Policy 2017. The new policy aims to attract investments worth INR 31,000 crore and create around 55,000 employment opportunities.

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The State Government is looking to set up new EV manufacturing zones, set up charging stations in public and private spaces including airports, railway stations, metro stations, and encourage start-ups to develop business models focused on supporting economic applications for EVs. According to the policy document, the Karnataka Government plans to do the following:

Come out with standards for battery, charging infrastructure and swapping mechanism to help build interoperable network where different OEMs can participate

Provide land on long-lease basis for setting up of EV fastcharging stations and battery swapping infrastructure

Electricity Supply Corporations of Karnataka to bring amendments to their policies and allow resale of power to encourage setting up of charging stations

Introduce lease/pay-per-use business models with batteryswapping station network in partnership with private players Facilitate the deployment of used EV batteries for solar application, and provide battery disposal infrastructure in PPP

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ELECTRIC VEHICLES MAHARASHTRA The Maharashtra government has recently announced its Electric Vehicle Policy 2018 to support faster EV adoption in the state.

UTTAR PRADESH The state government has recently released the draft EV Manufacturing Policy 2018. The policy is aimed at making the state a preferred destination for investment in EV manufacturing capacity.

In the first phase, the policy will be implemented in six cities: Mumbai, Pune, Nagpur, Thane, Aurangabad and Nasik. The salient features of the policy are as follows:

1 1

A subsidy of 15 per cent of the total cost of the EV will be given to the buyer. However, this will be limited to only the first 1 lakh EVs that are registered in the state. To further bring down EV prices the government has also exempted them from road tax and registration fees

2 2

EV manufacturers are now allowed to set up charging stations at existing petrol pumps (subject to safety clearance), and the first 250 charging stations to set up will get a subsidy of 25 per cent from the state government

3 3

To make charging the EVs cheap the charging stations will get electricity at a tariff that is on par with residential electricity rates

TELANGANA has come up with a final draft of a comprehensive EV policy in order to provide incentives to manufacturers and private players in setting up charging stations. Some of the salient features are as follows:

It aims to facilitate the development of common standards for setting up EV charging systems and infrastructure.

Distribution companies of the state will bring in amendments to their policies to enable setting up of private charging stations and allow resale of power.

Land belonging to government agencies within Hyderabad city will be made available to private players on a longterm lease at subsidized rates for setting up charging or swapping stations.

Renewable energy will be supplied on preferential basis at special tariffs for EV charging stations with zero connection cost and wheeling charges.

The Government will facilitate the deployment of used EV batteries and will provide a battery disposal infrastructure in the PPP model.

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The policy (salient features provided below) outlines special incentives and concessions to attract investments in EV manufacturing capacity, EV battery manufacturing and assembling capacity, and the development of charging and swapping infrastructure for EVs in the state.

The state government plans to make industrial land available for the development of EV charging infrastructure and EV manufacturing capacity in clusters and zones

EV incubation centers will be set up at IIT-Kanpur and other leading engineering institutions would facilitate EV mobility and encourage EV business models. The Startup Fund created by the UP Startup Policy 2017 would also be used to promote EV startups

To promote the development of private EV parks, the state government also plans to provide an interest subsidyin the form of te reimbursement on loans

The state government will also provide a 100 per cent road tax exemption for EVs purchased in Uttar Pradesh

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Enabling ecosystem for electric mobility in India

Technology advances have blurred the line between multiple sectors/ stakeholders operating in an EV ecosystem. Electric mobility is increasingly augmented and interconnected by technologies, where both power and information flow in both directions across vehicle and information systems. While EV solutions will vary from market to market — with multiple solutions most likely to drive new customer relationships and service opportunities — a number of new players from multiple sectors are entering the EV value chain, such as equipment manufacturers, software, and networking and consumer electronics companies.

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For the scope of this publication, we are focusing on the following three major themes: ► Charging infrastructure ► EV components manufacturing ► Technology and telematics In chapter 3, 4, and 5 we will discuss in details on the above themes around the recent developments, major challenges and impact of EV adoption on the system as a whole.

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Charging infrastructure in India One of the major barriers to the adoption of EVs is range anxiety. Globally, the proliferation of EVs has taken place with several incentive mechanisms and federal policies such as subsidies, tax breaks and fee bates. But apart from a strong mandate from governments, it is evident that a thriving network of charging infrastructure plays a pivotal role in the proliferation of EVs.

A blossoming EV market is accompanied by a world record number of electric vehicle supply equipment (EVSE) installations, also known as EV charging points. In 2016, the total installed publically acessible chargers grew to 322,265, an increase of 72.2% from 2015. With more than 80,000 installations last year, China has become the global leader in installed charging stations. Source: EY Analysis, IEA

The growth dependency of EV adoption and charging stations is often described as the chicken and egg problem, i.e., the need for ample EV penetration as a prerequisite for EV charging infrastructure deployment vs. the need for abundant EV charging infrastructure as a prerequisite for EV adoption. However, recent studies confirm that availability and accessibility of reliable public charging infrastructure must precede dense EV penetration. In the absence of a robust charging infrastructure, EV fleet growth will also be difficult to sustain, as can be seen in the example of California. The region of California leads the US EV adoption, with 269,0004 sales during 2011â&#x20AC;&#x201C;16, representing nearly 48% of total EVs across the US. However, charging infrastructure has not kept pace with the EV growth, with only 12,000 public chargers available in California5 .

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3.1 Current penetration of charging stations and proposed pilots We are already witnessing a divergence of business models for operators of charging infrastructure aimed at the users of private EVs. As of now, India has about 222 charging stations (353 charger units). Recently, EESL floated a tender for 4,500 chargers for installation in Delhi NCR. However, many installations are taking place in the country at a pilot level, offering free charging services to consumers:

Automobile/fleet aggregators ► A leading EV manufacturer in India has entered into an agreement with chain of malls to set up charging points and is investing in setting up charging stations at the Bangalore airport ► A leading car aggregator has set up a network of 10 fast chargers (initially) across three strategic locations as part of a pilot

Utilities ► One of India’s largest private sector power company is inve -sting INR 600 crores to set up 1,000 charging stations in Delhi, including free stations. It is setting up charging points at Mumbai at a regulated tariff of electricity ► A large European player has set up a charging station at NBCC’s premises and plans to set up about 150charging stations along with cloud-bas ed solutions and payment gateways ► EESL is facilitating the installation of 2,500 chargers to cater to 10,000 e-Cars being procured for governmentpart of a pilot

Heavy industries

Oil and gas

► DHI has expressed interest for city administration to avail subsidy of INR 120 crore for 11 cities, of which INR 15 crore shall be provided for installation of charging infrastructure and the rest for the procurement of EVs

► Multiple oil companies are setting up EV charging stations at their petrol pumps ► India’s first ever fast DC charging station was setup in Nagpur at a company owned and operated outlet of India’s largest oil company

Over the last year, the Indian Government has held extensive discussions with many companies, both domestic and foreign, for setting up a charging infrastructure. EESL has floated a tender of 2,000 electric vehicle chargers for the second phase of its EV programme and is looking to float additional tenders during the course of the year.

Despite the progress, the lack of standardization remains a key challenge. Going forward, in order to meet the rising demand of charging stations the Government will have to quickly facilitate standardization of charging infrastructure and incentivize R&D for advanced charging technologies.

urce: Interviews with industry executives, EY analysis.

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3.2 Current charging policy, standards and expected developments The charging infrastructure is being developed in the country keeping in mind the following criteria: ► Affordable on-board and off-board chargers ► Affordable cost per KWh (efficiency) for end users ► Minimum support and investments from the Government in the form of subsidy ► Development of open standards that can be adopted by manufacturers In order to achieve the EV target, policy interventions are inevitable for facilitating the growth of the ecosystem, of which charging infrastructure is a vital component The April 2018 ruling on the non-requirement of separate distribution licence for setting up charging stations for electric vehicles, provides a big boost to ambitious EV plans. The charging of battery of an electric vehicle by a charging station involves a service requirement and not an activity of transmission, distribution or trading of electricity, which would require a license under the 2003 Electricity Act. This development is expected to create a level playing field as public undertaking, private players, Discoms, manufacturers can partner or compete to capture the opportunity. In addition, provisions related to standardization for widespread charging infrastructure deployment will play a crucial role in widespread deployment Solutions that need to be developed for India: ► Specifications of the AC and DC chargers must cater to open standards ► Standardized communication and billing standards are required ► There must be energy consumption monitoring, control, metering and storage specifications In order to develop a robust information exchange system, communication and billing are major concerns for which standards and mechanisms need to be developed. Standardization of communication protocols for data exchange: ► Communications between EV and charging stations/EV supply equipment (EVSE) ► Communications between EVSE and central management system (CMS) ► Grouping of stakeholders such as manufacturers of vehicle, charging stations and batteries as per the functional require ments for the development of a standard communication protocol In addition, provisions related to standardization for widespread charging infrastructure deployment will play a crucial role in widespread deployment

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3.3 EV charging investment models and strategies As the EV penetration picks up, there will be an ever-increasing requirement to have a wide charging infrastructure. While home charging would continue to be the preferred mode for EV charging in the next few years, increasing focus will have to shift toward building public charging infrastructure. Destination chargers (e.g., workplace charging) and parking spaces (with charging ports) will have to be created, as vehicles remain parked there for longer durations and can serve a large base.

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Implementing an appropriate EV charging infrastructure does not necessarily mean mandating an outlet at every street corner. It means creating a profitable industry where the economics are profitable and selfsustaining to justify the investment as the market develops. This will depend on understanding the EV charging value chain and developing innovative business models. In the entire value chain, distinct business activities are grouped to develop five potential business strategy variants for different spheres of operations.

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3.4 Outlook for EV charging infrastructure in India India suffers on the infrastructure front and mobility solutions are not that fluid, which stalls the growth of charging infrastructure. This directly increases the issue of range anxiety multifold and has a direct impact on the EV adoption. The required need at this point in time is the presence of related support industry and infrastructure as it will help the charging infrastructure thrive.

The Government of India is trying to create an investor-friendly environment to push the adoption of EVs, creation of EV charging infrastructure and launch of various schemes to promote EVs. We expect the Government to take active measures to streamline regulatory challenges and provide further policy impetus to drive uptake of EVs.

Public charging picks up, but home charging will dominate EVs and the EV ecosystem is still evolving in the Indian context, with home charging emerging as the primary option mainly due to the lack of public charging facilities. We expect the share of public charging to grow; however, home charging would still continue to be the dominant source with a share of nearly 70% in 2030. Overall, the charging models are expected to vary by vehicle category. Both short-term and medium-term overviews of this are given in the table below.

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3.5 Impact of EV charging on the power and utilities value chain Growing EV penetration is likely to have a varied impact on different players in the power and utilities value chain. An EV with a daily commuting distance of 30–40 km will need an energy of 6-8 KWh, which is equivalent to daily power needs of a small household. Hence, adding one more EV in the neighborhood will create a similar impact on the local electricity network as of one more household metering point. This has presented with unique challenges for electrical utilities, where the shift from fuel to electricity requires an increase in electrical production, and resolve the problem of clustered charging, which can create a localized problem for the grid. The risk of overloading local transformers is particularly high during peak hours, when all EV owners in the neighborhood decide to recharge them at the same time. Utilities across the globe are looking to modify customers’ demand by offering EV owners discounted rates for charging their

August 2018

vehicles during off-peak hours. Managed charging, also known as smart or intelligent charging, entails a combination of infrastructure and communication signals sent directly to a vehicle or via a charger to influence the driver’s decision on when to charge the car. The leading US utilities are running a pilot featuring special rates encouraging electric car drivers to charge their vehicles when the electricity supply is abundant and the prices are low. Despite all the above challenges, if handled correctly, EV provides an impactful and beneficial cross-cutting opportunity for power sector stakeholders and can nable transformation to a green and efficient power sector in India. Arrival of electric mobility is expected to help the P&U sector realize net cost and revenue benefits from both the demand and the supply side. A summary of these benefits is tabulated below

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3.5.1 EVs to provide a boost to India government’s power sector goals The power and utilities sector in India is undergoing rapid transformational developments — reducing dependence on imported coal, rising energy independence with renewables, reducing plant load factors (PLFs) and national grid integration to name a few. Increasing adoption of EVs across India will be instrumental in transforming the country’s power sector. The surge in electricity demand from EVs will help recover the slow demand growth in

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India. By 2020, the overall electricity demand from EVs is projected to be around 79.9 GWh and is expected to reach 69.6 TWh by 2030. The overall EV demand is expected to help utilities earn an estimated US$11 billion (INR700 billion) in revenue by 2030. The impacts of high EV adoption are expected to start showing positive results within 5–7 years in the power sector, while a few developments will take a bit longer to have a meaningful impact.

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3.5.2 Challenges currently faced by power distribution companies in providing efficient charging facilities Poor financial health of DISCOMs: For many decades, DISCOMs were supplying electricity at tariffs far below cost, accumulating massive losses and mounting debts over the years. This led to the launch of UDAY Scheme in 2015, when DISCOMs reported an annual loss of INR600 billion and total accumulated debt of INR3.96 trillion14 15. Despite an improvement over the last two years, annual losses still stand at ~INR400 billion, which can continue to restrain DISCOMs from taking any new investment decisions16 17. Stressed distribution networks: Many parts of India are still facing power shortage, with 16 states and 2 union territories (UTs) reporting electricity deficits in FY17. Northern, Eastern and Northeastern regions have

stressed electricity networks. Increasing adoption of EVs is expected to boost electricity demand, which may put additional strain on the electricity networks and lead to more load shedding and power outages, especially in regions that are already facing deficits18 19. Lack of regulations for charging services: The Government is in discussion to standardize charging infrastructure development in India. Many norms are proposed to standardize the market, but they are still in the planning stage. Additionally, EV charging tariffs are regulated at some locations, while tariffs are not fixed at other locations. There is a growing need for a national regulated rate that can be applicable to all charging stations across India20

Despite these challenges, DISCOMs are entering the EV charging space23

One of India’s largest private sector power company is among the few distribution companies that are exploring this space and have aggressive plans for expansion ► Announced plans to invest INR6 billion to upgrade its power transmission network and install 1,000 charging stations across Delhi ► Installed its first charging facility in Mumbai in August 2017 and in talks to install more stations in the city ► Launched two free charging stations for electric 2Ws in North and North West Delhi

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EV manufacturing ecosystem in India The success of Indiaâ&#x20AC;&#x2122;s EV mission depends on the development and proliferation of the domestic manufacturing ecosystem. However, the absence of an EV supply chain in the country demands an urgent investment in domestic R&D and local manufacturing capabilities.

4.1 Current EV supply chain scenario The transformation from ICE vehicles to EVs has significant implications for the existing automotive industry supply chain. The growth of EVs will lead to profound changes in the automotive value chain, including technology, manufacturing systems, ownership models, distribution and aftermarket support. An EV is relatively simpler to build with only 20 moving parts against ~2,000 in an ICE vehicle. This would have a significant impact on the incumbent automakers while also disrupting the supplier ecosystem on the back of a major decrease in the addressable market for vehicle repairs/service and would require them to build new capabilities. From the perspective of component suppliers, large automotive suppliers are likely to adapt to the dramatic changes;

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however, small players could be hit the hardest by this disruption. The existing suppliers will not only have to deal with the transition but also face severe competition from the new entrants in the industry such as technology companies and battery producers. OEMs likely to lose some control in the EV value chain: EVs are less complex to manufacture as compared to ICE vehicles with far fewer moving components and the battery constituting around 50% of the value of the vehicle. This would result in a dilution of control for the OEMs. Significant changes in component manufacturersâ&#x20AC;&#x2122; portfolios: Existing powertrain-related suppliers would lose market share, in an all-EV scenario, while new opportunities would emerge in EV parts such as battery, motors, controllers and microprocessors.

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The changes in the manufacturing supply chain will have long-term implications on market leaders and component manufacturers: ► OEMs need to reinvent their business to focus on building relationships with battery and electric/electronics component suppliers and also explore opportunities for in-house battery manufacturing ► Given the ease of manufacturing of EVs combined with a larger trend of increased vehicle sharing, there is a risk of vehicles getting commoditized and thus an increased focus on OEM brand differentiation would be required ► Component manufacturers need to re-align their product portfolios as the industry transitions to EVs ► Given EVs are a cross-sector play, new sources of value creation will need to be discovered and the pecking order of the industry participants will get redrawn

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4.2 Battery storage technology 4.2.1 New emerging battery technology and global best practices As EVs gain traction, there is an increased focus on finding and adopting an optimal battery solution that provides the highest energy density for maximum range. Lithium-ion batteries are currently used in most of electric cars, and it is likely that they will remain dominant in the coming future. The growth in the production capacity is likely to be led by China, with 62% of the Li-ion mass

production set to be in China by 2020. EVs are likely to account for around 40% of the total battery production (in GWh) in 2020, and the requirement is expected to further grow up to almost 60% by 2024. According to BNEF, the annual demand for Li-ion batteries from EVs is expected to reach around 1,293 GWh in 2030, representing an annual growth of 32.49% from the 2015 levels.

Researchers are also working on “beyond lithium” projects, and are looking at other technologies that are more efficient in terms of energy density and can replace Li-ion in the long run.

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Solid-state batteries are getting significant attention as they can operate at super capacitor levels to completely charge or discharge in just minutes. Their construction provides several advantages: no electrolyte leaks or fires, extended lifetime, decreased need for bulky and expensive cooling mechanisms and the ability to operate in an extended temperature range between -30°C and 100°C.

Lithium-air batteries offer far greater energy density – maybe as much as 10 times more. As cathode typically makes up most of the weight in a battery, having one made of air is a major advantage. However, these batteries suffer from poor cycle life and cyclability issues.

Toyota has been focusing on solid-state and Li-air batteries and is reportedly planning to begin releasing plug-in EV utilizing solid-state battery tech in early 2020. Another automotive giant BMW has announced to partner with Solid Power to develop solid-state batteries for use in BMW’s future EV models and is targeting to field solidstate batteries in commercial vehicles within 5–10 years.

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4.2.2 Locked smart (LS) batteries

There is a need to distinguish Li-ion batteries in EVs from the ones used for other applications, so that different tax-and regulation treatment can be provided if needed. LS batteries are batteries designed to be used with EVs and cannot be used for any other applications. This is especially important when the battery is leased/sold separately from the vehicle.LS batteries are specially designed smart lithium batteries built to power authorized EVs only. They work with a highly secured encryption algorithm that exchanges a unique key during each use to ensure they are used only by authorized EVs (and no other applications) and authorized charging and swapping stations. ►They cannot be charged except at the authorized charging and swapping stations. ► They cannot be discharged except in the authorized vehicle. These batteries are programmed with a unique ncrypted key to be used for authenticating the specific vehicle and the chargers where such batteries will be charged. These keys are generated in such a manner that they cannot be changed except by authorized personnel. When LS batteries are used by a chargingcum swapping operator, a discharged LS battery can be swapped with another charged locked smart battery. The new swapped LS battery shall be specifically authorized again at the time of swapping to be usable with that specific vehicle only. The returned discharge battery shall go for charging to the bulk charging station.

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4.2.3 Battery manufacturing in India In order to achieve significant electrification of automobiles by 2030 and beyond, India needs a robust and competitive battery manufacturing supply chain. As per a report by NITI Aayog and Rocky Mountain Institute, India would require to set up a minimum of 20 Gigafactories to produce batteries at an investment of US$100 billion for meeting India’s EV targets. However, lack of clear long-term policies, technology uncertainty, low mineral reserves and absence of major EV battery producers are preventing investments in battery storage technologies in India. As EVs gain traction in India, OEMs are looking to secure access to Li-ion reserves and R&D capabilities to manufacture batteries indigenously. Going forward, a number of foreign collaborations, partnerships and consortiums between OEMs, battery producers and suppliers could be expected. While the policy and regulatory framework for battery storage system does not exist at the Central Government level; however, State Governments of Uttar Pradesh, Karnataka and Telangana have, in particular, proposed some policies for battery storage in their EV policy draft. access to Li-ion reserves and R&D capabilities to manufacture batteries indigenously. Going forward, a number of foreign collaborations, partnerships and consortiums between OEMs, battery producers and suppliers could be expected. While the policy and regulatory framework for battery storage system does not exist at the Central Government level; however, State Governments of Uttar Pradesh, Karnataka and Telangana have, in particular, proposed some policies for battery storage in their EV policy draft.

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4.2.4 Battery recycling and disposal: Repurposed EV batteries EV batteries have a shelf life of less than 10 years and after 8–10 years of usage, they are not considered fully functional to power an EV. However, studies have proven that 70%–80% of the initial battery capacity can be retained and batteries may function for up to 25 years. Such an EV battery can serve the purpose of utility/home storage, reducing overall cost without seriously compromising the storage capacity or quality. A potential cumulative capacity availability of “second use” batteries isexpected to be around 1,000 GWh by 2030, at a repurpose rate of 80% and at a replacement timescale of 7 years. Several global automakers are establishing storage rrays with repurposed EV batteries for remote facilities and data centers, combined with renewable capacity to provide power equivalent to baseload supply. At present, India does not have any policy framework or mechanism for the battery recycling and second use market. However, in order to achieve its electrified mobility target, reclaiming the materials from old Li-Ion batteries in a certified and sustainable manner should be a huge priority of the Government of India. The Government should focus on the following: ►Using an environmentally friendly method of recycling involves significant investments in infrastructure and technology, and the Government should develop a detailed incentive framework such as investment subsidy for setting up plants, tax holiday and income tax deduction for R&D ► The battery recycling market should be organized, where all vehicle suppliers should take back used Li-ion batteries and enable second-use of these batteries before giving them to a suitably certified recycling organization for disposal

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Technology landscape in the EV ecosystem

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Many new emerging technologies could play a supportive role in making the entire EV charging value chain more efficient and profitable. A number of disruptive startups with new models are expected to come up in these areas.

Digital payments and blockchain ► There is a need to provide a hassle-free payment mechanism, where users will be directly billed using their vehicle’s unique identification number, with transactions being secured through a blockchain layer. ► Share&Charge, a decentralized marketplace that connects EV owners with private and public charging stations, has released its mobile app enabling digital payments secured using an Ethereum block-chain

Data analytics ► Data analytics is likely to be a great enabler of improvements in charging services. The analysis based on data sets can be used for anomaly detection and preventive maintenance by helping estimate the present energy consumption and future demand, load on grid during peak demand and recharge pattern. ► A US-based charging station operator, provides data around charging patterns, charging times, sessions lengths, idle time etc., which can be analyzed using various data analytics tools

Solar-based charging stations

Vehicle-to-grid (V2G) charging

► As India plans to reduce its dependence on oil imports, it is shifting its focus toward solar PV. Using solar based charging tations for EV will help optimally utilize renewable energy by shifting the charging load to different times of the day depending on overall demand. This would help take off additional load from the grid and ensure energy security apart from being the cleanest fuel. ► A Taiwan based e-scooter manufacturing company has come up with a new initiative where the swapping stations run on solar power

Integrating EV with the grid can provide various benefits as it would provide additional storage device to make the grid more resilient and could also serve as a load-balancing device

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► A Japanese automobile manufacturer in collaboration with an Italian utility has announced a V2G trial with 100 V2G units. ► A Netherlands-based utility has announced a pilot with a charging solutions provider to explore whether EVs can provide reserve capacity without disturbing the European grid frequency.company

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Bringing it all together toward smart and sustainable Mobility The combination of disruptive trends such as sharing economy, vehicle electrification and connected car are likely to transform the Indian automotive industry and present an unimagined mobility experience.

Evolving demographics, urbanization, digitization and collaborative consumption are likely to disrupt the mobility ecosystem. The future urban mobility network will involve vehicles with connectivity and digital technologies enabling the provision of customizable mobility packages, and stakeholders will compete for a share of customers’ mobility spend. In line with what we are witnessing globally, the Indian market is also witnessing proliferation of technology-driven mobility service providers, as the consumer is being drawn towards the idea of “access” from “ownership”. The Indian market has witnessed a growth in shared mobility as a result of evolving demographics, rising disposable income and confluence of smartphones and internet penetration, which could help bring in the new age of mobility. 31% of people were residing in Indian Urban areas in 2011,

set to go up to 40% & 58% in 2030 & 2050 respectively 10% of miles driven in 2015 estimated to be shared, the number could reach 25% by 2030, 30% of cars in India estimated to be bought as second cars in the household, one of the segments worst hit by car sharing 3.5x Faster replacement rates of a shared vehicle as compared to a private vehicle, which will support vehicle sales to some extent Source : EY analysis, Census 2011, World Bank, The World’s Cities in 2016 - UN Report, Analyst reports Driven by rising real incomes and low penetration rates (in both car ownership and per capita miles travelled), the Indian mobility market is likely to be one of the fastest growing in the world. However, car ownership is likely to grow since it is a highly aspirational purchase and first time buyers will drive the market, at least, over the next decade or so.

At present, the industry is in generation 1.0 and has already implemented ride sharing and ride-hailing models. The adoption of new innovative models and technology advancement will drive the industry into the next generation mobility solutions, where vehicles will be considered as a platform. Smart mobility will also increasingly lead to boundaries blurring in multiple industries such as automotive, insurance, car rentals, logistics, telecoms, energy and media creating a whole new industry ecosystem.

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