EQ Magazine March 2020 Edition by EQ Int'l Solar Media Group

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CONT EN T

VOLUME 12 Issue #03

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

india 7591.99 MW of Renewable Energy commissioned in 2019-20 (up to Dec 2019); 34160 MW RE capacity under implementation: R K Singh

19 business & finance

TOTAL to invest USD 510 mn for 50% stake in 2,148 MWac solar power projects held by Adani Green

53 research & analysis Off-grid solar improves lives, here’s why it still plays a big role in India

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 Restriction on use 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,NonCommercial use, provided you keep intact all copyright and other proprietary notices. want to use material for any non-personel,non commercial purpose,you need written permission from EQ International.

MARCH- 2020

electric vehicle EESL to set up 10,000 EV charging stations in next three years

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india

ENGIE fully commissions 250 MW Kadapa solar project in Andhra Pradesh

Power Minister dedicates 11 renewable energy management centres to nation

technology international Jeff Bezos: World’s richest man pledges $10bn to fight climate change

GoodWe becomes the world’s first non-European inverter manufacturer to obtain the very demanding VDE-AR-N 4110-2018 compliance certificate

international SOLAR ENERGY FIRM SUNSEAP SNAGS $50M FUNDING FROM TEMASEK, ABC WORLD ASIA

29 electric vehicle

EESL signs MoU with BHEL to set up a network of public charging stations at highways and cities across India

electric vehicle

Tata Power plans to have 700 EV charging stations by 2021

technology Enel’s Heterojunction Solar Cell Achieves 24.63% Efficiency

EQ NEWS Pg. 08-60 ARTICLE Pg. 74-75 international Foresight Group energy infrastructure fund secures 342 mln euros

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MARCH- 2020

Founded in 2005, JA Solar is a manufacturer of high-performance photovoltaic products. With 12 manufacturing bases and more than 20 branches around the world, the companyâ&#x20AC;&#x2122;s business covers silicon wafers, cells, modules and photovoltaic power stations. JA Solar products are available in over 120 countries and regions.

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MARCH- 2020

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MARCH- 2020

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INDIA

India to have 450 GW renewable energy by 2030: President

India has embarked on an ambitious target of having 450 GW of renewable energy by 2030 and also provide 17 lakh solar pumps to farmers under Pradhan Mantri-Kusum Yojana in coming days to capitalise on this clean resource, President Ram Nath Kovind said

he country is already working on the target of having 175 GW of renewable energy by 2022 which includes 100 GW of solar and 60 GW of wind energy. As of December 2019, 86 GW of renewable energy capacity has already been achieved. This includes 34 GW of solar and 38 GW of wind energy. Besides, around 36 GW of clean energy is under installation and about 35 GW is under bidding stage.

Addressing a joint sitting of both Houses of Parliament, Kovind said: “Keeping environment conservation in mind, my Government has enhanced the target for producing renewable energy to 450 gigawatts (GW). Under the Pradhan Mantri-Kusum Yojana, it has been targeted to provide more than 17 lakh solar pumps to farmers across the country.”

He noted that under the second phase of the solar roof top programme, the target is to generate 38 GW of electricity. In September last year, Prime Minister Narendra Modi had announced doubling India’s non-fossil fuel target to 450 GW at Climate Action Summit at UN headquarters. Kovind also told the members that after International Solar Alliance (ISA), India has been at the forefront of a global partnership. The ISA was set up under the aegis of India. It was created to provide a dedicated platform for cooperation among solar resource rich countries. As many as 85 countries have signed the ISA framework agreement. A total 64 nations have ratified it. Source: PTI

Contribution of Renewable Energy Sources is estimated to be around 21% of Electricity Demand in 2021-22 : R.K.Singh As per Central Electricity Authority’s National Electricity Plan, contribution of renewable energy sources is estimated to be around 21% of the total electricity demand of the country in the year 2021-22 and 24% by 2026-27.

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he major efforts being taken by the Government to meet the targets of renewable energy in the country, inter-alia, include Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route, strengthening of Power Purchase Agreements(PPAs), mandating requirement of Letter of Credit(LC) as payment security mechanism by distribution licensees for ensuring timely payments to RE generators, setting of Ultra Mega Renewable Energy Parks to provide land and transmission on plug and play basis to investors , waiver of Inter State Transmission System (ISTS) charges and losses for inter-state sale of solar and wind power for projects to be commissioned by 31st December, 2022, notification of standard bidding guidelines to enable distribution licensee to procure solar and wind power at competitive rates in cost effective manner, declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022, laying of transmission lines under Green Energy Corridor Scheme for evacuation of Power in Renewable rich states, launching of new schemes, such as, PM-KUSUM, Solar Rooftop Phase II, 12000 MW CPSU Scheme Phase II, etc.

MARCH- 2020

As part of Intended Nationally Determined Contributions under the Paris Accord on Climate Change, India has made a pledge that by 2030, 40% of its installed power generation capacity shall be from non-fossil fuel sources and will reduce its carbon emission intensity of GDP by 33-35 % considering 2005 level. The Government has set a target to install 175 GW of renewable energy capacity in the country by the year 2022. This includes 100 GW from solar, 60 GW from wind, 10 GW from biomass and 5 GW from small hydro power. This information was given by Shri R.K. Singh, Minister of State (I/C) for New & Renewable Energy, Power and MoS for Skill Development And Entrepreneurship in written reply in the Lok Sabha Source: PIB

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INDIA

Andhra Pradesh govt proposes to set up solar plants to produce 10,000 MW The government has already issued an order for setting up the Andhra Pradesh Green Energy Corporation Limited, as a subsidiary of Power Generation Corporation of AP, to erect the 10,000 MW solar power plants.

he Andhra Pradesh government has proposed to set up its own generating units to produce 10,000 MW of solar power to meet the energy requirements of the agriculture sector. The government has already issued an order for setting up the Andhra Pradesh Green Energy Corporation Limited, as a subsidiary of Power Generation Corporation of AP, to erect the 10,000 MW solar power plants.

Chief Minister Y S Jagan Mohan Reddy, who chaired a highlevel review meeting on the power sector here, directed the officials to focus on the 10,000 MW solar power plants and also their subsequent expansion, an official release said. The state has been incurring more than Rs 10,000 crore to meet the agriculture subsidy, lift irrigation power charges and aquaculture subsidy every year. The subsidy has been continuously increasing over the years on account of increasing cost of power supply and also an increase in the number of agricultural pump sets. To ensure that the subsidy is provided on a sustainable basis, there is a need for evolving an alternative mechanism to provide quality power and nine-hour day-time free supply to farmers.

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Solar energy has the potential to fulfill the above requirements due to its lower cost compared to the current average procurement cost of Discoms, ex-officio Principal Secretary to Energy Department G Sai Prasad said. Since solar power is generated during daytime, it could be well utilised for agricultural needs. To provide free power supply to the agriculture sector and lift irrigation schemes, the total capacity of solar plants required is likely to be about 10,000 MW (including the projected annual increase in agricultural demand), Sai Prasad pointed out. The chief minister asked officials to: Focus on making these plants successful and also plan for expansion. Also encourage solar and wind energy companies that come forward to sell power at a lower price, a CMO release quoted him as telling the Energy Department officials. This would reduce the financial burden on the ailing power distribution companies (Discoms). Reddy said the energy sector should be pulled out of losses in the next five years. Increase the productivity of thermal plants by using quality coal. Get a third-party audit done on the coal quality. Also concentrate on hydro reverse pumping projects, he added.

Source: economictimes.indiatimes.com

MARCH- 2020

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INDIA

7591.99 MW of Renewable Energy commissioned in 2019-20 (up to Dec 2019); 34160 MW RE capacity under implementation: R K Singh The Minister of State (I/C) For New & Renewable Energy, Power and MoS for Skill Development and Entrepreneurship Shri R K Singh informed the Rajya Sabha while replying to a question during Question Hour that a renewable energy (RE) capacity of 7591.99 MW has been commissioned in the year 2019-20 (up to Dec 2019). He added that another 34160 MW RE capacity is under various stages of implementation. It is expected that renewable energy capacity addition in the year 2019-20 will exceed the capacity addition achieved in the year 2018-19 which was 8532.22 MW.

Shri Singh also said that most of the grid connected renewable energy projects in the country are being implemented by the private sector developers selected through a transparent competitive bidding process. Capital investment made by these developers is their privileged information. However, based on standard capital costs per MW, an investment of Rs. 40459.99 Cr is estimated to have been made in Renewable Energy sector in the year 2018-19. An investment of Rs. 36729.49 Cr is estimated to have been made in the year 2019-20 up to Dec 2019. Elaborating the steps being taken by the Government to boost investment in RE sector, the Minister stated that these include permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route, strengthening of Power Purchase Agreements (PPAs), mandating requirement of Letter of Credit (LC) as payment security mechanism by distribution licensees for ensuring timely payments to RE generators, setting up of Ultra Mega Renewable Energy Parks(UMREPs) to provide land and transmission on plug and play basis to investors, waiver of Inter State Transmission System (ISTS) charges and losses for inter-state sale of solar and wind power for projects to be commissioned by 31st December, 2022, notification of standard bidding guidelines to enable distribution licensee to procure solar and wind power at competitive rates in cost effective manner, declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022, laying of transmission lines under Green Energy Corridor Scheme for evacuation of Power in Renewable rich states, finalization of manufacturing linked tender for setting up domestic manufacturing capacity, launching of new schemes, such as, Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase II, 12000 MW CPSU Scheme Phase II, etc.

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In reply to another question, Shri R K Singh further enumerated that the Government has undertaken several financial, policy and regulatory measures for incentivizing deployment of renewable energy in the country. These include financial incentives for roof-top Solar PV systems and performance based incentives to the distribution companies (DISCOMs), flexibility in generation and scheduling of thermal power stations; grid augmentation for absorbing increasing share of renewable energy; schemes for grid connected Solar PV Power Projects by Central Public Sector Undertakings (CPSUs); guidelines for transparent tariff based bidding for solar and wind power projects; subsidy for setting up off-grid and decentralized solar systems; subsidy for setting up family type biogas plants; notification of standards for deployment of solar photovoltaic system/devices; and priority sector lending status for loans up to a limit of Rs 15 crore. Replying the a query on reasons for financial and operational inefficiencies of DISCOMs, he said that there are various reasons for the same which include amongst others tariffs not reflective of costs, delays in tariff filings, delays and non release or partial release of subsidies released by States against the supplies made to subsidised categories, high Aggregate Technical and Commercial (AT&C) loss levels etc. The Government has launched Ujjwal DISCOM Assurance Yojana (UDAY) for improving the financial and operational efficiencies of DISCOMs. The Government has also advised the States to convert all existing consumer meters into smart prepaid meters to improve billing and collection efficiencies within a period of three years; ensure upfront release of subsidies; and conduct regular energy audits. In order to ensure timely payment to renewable energy generators, Shri R K Singh informed that the Indian Renewable Energy Development Agency Limited (IREDA), a Government Company established Non-Banking Financial Institution, has been extending short-term securitized loans to the DISCOMs at preferential rates. In the financial year 2019-20, IREDA has disbursed Rs 900 crore to Telangana, Rs 1200 crore to Andhra Pradesh and Rs 450 crore to Tamil Nadu. Source: PIB

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INDIA

Discoms’ outstanding dues to power gencos rise nearly 50 pc to Rs 88,177 cr in Dec Power producers’ total outstanding dues owed by distribution firms jumped nearly 50 per cent to Rs 88,177 crore in December 2019 over the same month previous year, reflecting stress in the sector. Distribution companies (discoms) owed a total of Rs 59,015 crore to power generation companies in December 2018, according to portal PRAA (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators).

he portal was launched in May 2018 to bring in transparency in power purchase transactions between the generators and discoms. In December 2019, the total overdue amount, which was not cleared even after 60 days of grace period offered by generators, stood at Rs 78,174 crore as against Rs 44,464 crore in the same month of the preceding year. Power producers give 60 days to discoms for paying bills for the supply of electricity. After that, outstanding dues become overdue and generators charge penal interest on that in most cases. In order to give relief to power generation companies (gencos), the Centre enforced a payment security mechanism from August 1, 2019. Under this mechanism, discoms are required to open letters of credit for getting power supply. According to the latest data on the portal, outstanding dues in December has also increased over the preceding month. In November 2019, total outstanding dues on discoms stood at Rs 82,414 crore.

The overdue amount in November has also increased over the preceding month. The total overdue amount was Rs 73,175 crore in November 2019. Discoms in Rajasthan, Uttar Pradesh, Jammu & Kashmir, Telangana, Andhra Pradesh, Karnataka and Tamil Nadu account for the major portion of dues to power gencos, the data showed. Overdues of independent power producers amount to 25.45 per cent of the total overdue of Rs 78,174 crore on discoms in December. Among the central public sector power generators, NTPC alone has an overdue amount of Rs 15,695.65 crore on discoms, followed by NLC India at Rs 5,010.69 crore, NHPC at Rs 3,165.09 crore, THDC India at Rs 2,136.30 crore and Damodar Valley Corporation at Rs 822.09 crore. Among private generators, discoms owe the highest overdue of Rs 3,201.68 crore to Adani Power, followed by Bajaj Group-owned Lalitpur Power Generation Company Ltd at Rs 2,212.66 crore and GMR at Rs 1,930.16 crore. The overdue of non-conventional energy producers like solar and wind, stood at Rs 6,739.47 crore in December.

Source: PTI

Rs 1.5 lakh crore: The bill India is set to pay for the coming power gamechanger The planned 25 crore prepaid meters are expected to raise enough revenue to cover the costs and lead to savings for state power distributors. The govt will run an auction for the contract to install the meters, which are being called a “game changer” for the sector. The systems will provide discoms with real-time data on consumption of each consumer.

ndia’s nationwide roll-out of smart power meters, aimed at supporting ailing utilities and bolstering reliable electricity supply, will cost about Rs 1.5 lakh crore ($21 billion), according to a government estimate. The prepaid meters are expected to help to improve billing and collection, which are the most basic problems facing the country’s ailing distribution companies, known as discoms. These utilities, mostly controlled by their state governments, lose money because of poor billing and theft of power, which often leads to them delaying payments to generators and depriving their customers of reliable supplies. The price tag estimated for the smart meters includes hardware, installation and operations, such as the system integration and data analysis, according to Power Secretary Sanjiv Nandan Sahai. The planned 25 crore prepaid meters across the country will raise enough revenue to cover the costs and lead to some savings for state power distributors, Sahai said in an interview in New Delhi. The government will run an auction for the contract to install the meters, said Sahai, who called them a “game changer” for the sector.

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The systems will provide discoms with real-time data on consumption of each consumer, helping them spot thefts and losses, as well as plan power purchases better, according to Sambitosh Mohapatra, partner for power and utilities at PricewaterhouseCoopers India.

Smart meters have the potential to alter the landscape and operations of discoms across the metering, billing and collection cycle, Sambitosh Mohapatra said. “They can drive energy efficiency, allow customers to manage consumption, help discoms plan their capital expenditure better and lead to their overall financial improvement, benefiting the whole sector value chain.” The country has already installed 10 lakh smart meters across four states, the power ministry said in a statement Source: Bloomberg

MARCH- 2020

INDIA

Karnataka bags Rs 72,000 cr investment proposals; EV, solar power in focus

Rs 72,000 crore investment proposals were received at the Invest Karnataka meet, for the states northern region, said an official

About 50 foreign and domestic firms have proposed to invest Rs 72,000 crore in the northwest and northern regions of the state and a dozen companies signed agreements with us,” state Industries Department Secretary Gaurav Gupta said. Rajesh Exports, Bengaluru-based group, signed an agreement to set up a manufacturing unit at Dharwad to rollout electric vehicles and make lithium ion batteries. “Rajesh Exports proposes to invest about Rs 50,000 crore for manufacturing electric cars and lithium ion batteries for the domestic and overseas markets. It will generate about 10,000 jobs,” said Gupta.

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imilarly, Sonali Power has signed a pact with the state nodal agency (Udyog Mitra) to set up a solar power plant at Davangere at a cost of Rs 4,800 crore, which will generate 2,100 direct jobs. Chief Minister B.S. Yediyurappa claimed several firms had come forward to collectively invest Rs 1 lakh crore since the BJP government came into being in July 2019.

MARCH- 2020

Many Indian and foreign firms will sign agreements with the state government at the 3-day Global Investors meet in Bengaluru on November 3-5, Yediyurappa said at the ‘Invest Karnataka’ meet. Noting that Karnataka was rich in natural and human resources, especially in high-tech and skilled workforce, Yediyurappa said investment opportunities were plenty in aerospace, automobiles, machine tools, electric vehicles and bio-technology besides information technology. “About 40 global firms expressed interest to invest in the state at a roadshow held at Davos, Switzerland, on the margins of the World Economic Forum (WEF) meet on January 23,” he said. Under the new industrial policy, the state government will set up clusters to make toys at Koppal, textiles in Bellari, solar equipment at Kalaburagi and farm machinery at Bidar. “We are committed to make North Karnataka a power house of industries for the region’s development, with Hubballi-Dharwad as the growth hub,” Yediyurappa said.

Source: IANS

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INDIA

ENGIE fully commissions 250 MW Kadapa solar project in Andhra Pradesh The 200 MW phase was commissioned ahead of schedule in May 2019 and this milestone supports ENGIE’s ambition to be a major renewables development partner as India becomes one of the fastest growing countries in global energy transition, a company statement said.

rench electric utility firm ENGIE said it has fully commissioned its 250 MW solar project in Andhra Pradesh. The 200 MW phase was commissioned ahead of schedule in May 2019 and this milestone supports ENGIE’s ambition to be a major renewables development partner as India becomes one of the fastest growing countries in global energy transition, a company statement said. The remaining 50 MW was recently commissioned in order to provide power to about 400,000 people, it said. ENGIE was awarded the Kadapa project in April 2017. The signing of the 25-year power purchase agreement with state-run power giant NTPC was announced at the inauguration of the Mirzapur solar power plant in the presence of Prime Minister Narendra Modi and French President Emmanuel Macron in March 2018. Over 1 million panels and over 2,700 string inverters were installed with 1.9 million safe manhours put by over 1,200 skilled and unskilled manpower in a site spread across 1,250 acres, it said.

ENGIE has been present and active in India for over 40 years and has a total installed capacity of more than 1.5 GW in renewables, and employs around 1,000 people in power generation, engineering and energy services.

ENGIE is committed to supporting India’s energy transition. We look forward to continuing to support India’s low-carbon generation investments and in the Middle East region whilst continuing to operate to the highest possible health and safety standards, ENGIE Middle East, South & Central Asia and Turkey (MESCAT) CEO Sébastien Arbola said in the statement.

Source: PTI

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MARCH- 2020

INDIA

Round-the-clock power supply via renewable-thermal bundling: Draft policy Addressing the issues of intermittency, limited hours of supply and low capacity utilisation of transmission infrastructure, the draft policy provides for reverse bundling

he Ministry of New and Renewable Energy has proposed a draft policy for the supply of round-the-clock (RTC) power to distributors through a mix of renewable energy and electricity generated in coal-based plants. Addressing the issues of intermittency, limited hours of supply and low capacity utilisation of transmission infrastructure, the draft policy provides for reverse bundling, wherein high-cost thermal power is being allowed to be bundled with cheaper renewable energy. Accordingly, a power generating firm will have to supply electricity such that at least 51 per cent of the annual energy supplied corresponds to renewable energy and the balance is drawn from thermal sources. The generator will supply RE power complemented with thermal power, in RTC manner, keeping at least 80 per cent availability on an annual basis, the draft said.

“The main objective of the scheme is to provide RTC power to the discoms through bundling of RE power with thermal power and to scale up renewable capacity additions. It will also facilitate fulfilment of renewable purchase obligation (RPO) requirement of the obligated entities,” the ministry said inviting comments from stakeholders on the new policy.

While India is committed to installing 175 GW of renewable energy (RE) sources by 2022 and 450 GW by 2030, intermittent power generated through such sources and its implication on the grid safety has been a concern. Parallelly, there is around 26 GW of stranded thermal power assets lying unutilised which can provide firm power to the grid. To bridge the gap, the MNRE has come out with the draft RE-based round the clock (RTC) power. The scheme is unique in the world as conventional and non-conventional resources will complement each other to provide a sustainable firm power to the grid. The scheme has been welcomed by industry bodies such as the Association of Power Producers (APP) and industry chamber ASSOCHAM. APP says the scheme will help with utilisation of thermal power capacity, especially since the new super critical coal-based thermal power plants have quite a high ramp rate which can be effectively utilised to provide combined renewable energy blended RTC power. The policy states that the RE power may include solar, wind, small hydro, or a combination thereof, with or without any Energy Storage System (ESS). A composite single tariff for RE, complemented with thermal energy will be quoted by the bidders at the delivery point, it said adding successful bidder will be selected through a transparent bidding process wherein bidders will quote a composite single tariff for bundled energy.

For 2022, India has set a target of having 100 GW of solar generation, 60 GW of wind, 10 GW of biomass and 5 GW of small hydro. It is further committed to increase capacity to 450 GW by 2030 so as to ensure 40 per cent of the total installed power generation capacity is non-fossil fuel, reducing emission intensity of GDP by 33-35 per cent from 2005 level. Source: PTI

RSDCL, NTPC sign agreement to develop 925-Mw solar park in Jaisalmer

As per the agreement, RSDCL will develop infrastructure in the solar park and NTPC will develop the solar projects. Rajasthan Solar Park Development Company Ltd (RSDCL), a subsidiary of Rajasthan Renewable Energy Corporation, and NTPC signed an agreement to develop 925 MW capacity solar park at Nokh in Rajasthan’s Jaisalmer district. alla also asked Rajasthan Renewable RSDCL Chairman Anil Gupta and National Thermal Energy Corporation (RREC) officials to initiPower Corporation (NTPC) Executive Director Mohit ate research and development activities in Bhargava signed the agreement here in the presence of the field of energy storage. Referring to the Rajasthan Energy Minister B D Kalla. As per the agreeBudget presented by Chief Minister Ashok ment, RSDCL will develop infrastructure in the solar park Gehlot, the minister said provisions have and NTPC will develop the solar projects. Speaking on the been made to promote solar energy in urban occasion, Kalla said the state government has given many areas through rooftop solar systems. RRECL relaxations and facilities in recently issued solar energy Chairman and Principal Secretary – Energy policy, and wind and hybrid energy policy. Saying that Ajitabh Sharma said that RSDCL will invest about Rs 450 crore in Rajasthan has vast potential for solar and wind energy infrastructural development, while NTPC is expected to invest more which should be tapped, he asked investors to avail the than Rs 3,500 crore in the project. benefits of the state’s policies. Source: PTI

MARCH- 2020

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INDIA

EESL Plans to Set Up 1,500 MW decentralised solar power plants by 2021 State-owned Energy Efficient Services Ltd (EESL) has forayed into solar power generation and plans to set up 1,500 MW of decentralised solar power plants across the country by the end of 2020-21, its managing director, Saurabh Kumar said.

ccording to Kumar, the Maharashtra government had given mandate for 800 mw of solar power, of which EESL has already operationalised 100 MW. Rajasthan has given EESL the mandate to set up 113 MW of solar distributed generation projects, he added. In Maharashtra, EESL is supplying electricity at 3.10 per unit to agriculture feeders, with land for the project being provided by the state. In Rajasthan, the company will supply power at 3.90 per unit along with land acquisition cost, he said. The company, however, will not set up solar capacity of more than 10 MW at one location, Kumar said, adding that the capacity of these solar power plants in each substation ranges from 0.5 MW to 10 MW. According to Kumar, the decentralised solar plants will meet the requirements of farmers connected to the agriculture feeder. He said EESL has installed 1.1 million smart meters in New Delhi Municipal Corp area, Uttar Pradesh, Haryana and Bihar. EESL has set a target of installing 250 million smart meters over the next few years.

Source: energy.economictimes.indiatimes

Rajasthan to set up 30,000 MW solar power plants by 2024-25 Rajasthan targets to set up 30,000 MW solar power plants by the year 2024-25 in the state, Energy Minister B D Kalla said. Replying to a question raised by BJP legislator Arjun Lal Jingar during Question Hour in the Rajasthan Assembly, Kalla said the government has issued a new Solar Energy Policy-2019 to promote solar production in the state.

Rajasthan targets to set up 30,000 MW solar power plants by the year 2024-25 in the state, Energy Minister B D Kalla said. Replying to a question raised by BJP legislator Arjun Lal Jingar during Question Hour in the Rajasthan Assembly, Kalla said the government has issued a new Solar Energy Policy-2019 to promote solar production in the state. The state government targets to set up 30,000 MW solar power plant by the year 2024-25 through the policy. He said that 24,000 MW capacity grid-connected solar power plants/solar parks, 4,000 MW capacity decentralized solar power plants, and 1,000 MW capacity solar rooftops and solar pumps are targeted to be set up. www.EQMagPro.com

He said that farmers in the state can install decentralised solar power plants ranging from 0.5 MW capacity to 2 MW capacity on unused land or wasteland in a distance of 5 km from 33/11 KV sub-station of power distribution corporations. Proposals were invited by Rajasthan Renewable Energy Corporation from all interested applicants for implementation of the scheme to set up solar power plants or to lease the land. Kalla said that a total of 12,853 proposals have been received. The process of selection of solar energy producers is under progress under the scheme. Power will be purchased for 25 years at the rate of Rs 3.14 per unit, he added.

Source: PTI

MARCH- 2020

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INDIA

Tongo hands over letter of engagement to NTPC as PMC for about 300 MW solar power projects in Togo The Letter of Engagement of NTPC as PMC for development about 300 MW Solar Power Projects by Togo was handed over here by Mr. Kondi Mani, Charge dâ&#x20AC;&#x2122; Affaire, Embassy of Togo, New Delhi, to Mr. Gurdeep Singh, CMD (NTPC), in the august presence of Shri R. K. Singh, Minister of Power & RE (GoI) & President of ISA Assembly. Mr. Upendra Tripathy, Director General (ISA) was also present.

Speaking on the occasion, Shri R K Singh expressed his happiness over the development and stated that RE project offers cheaper power. This resource must be harnessed by ISA member countries as RE makes it possible to supply electricity to people living in far-flung areas through distributed power supply model. He underlined the importance of independent regulators upon stating that under recently evolving model prepaid smart metering helps in smooth billing and collection and the governments need not invest in the projects which developers take care.

ogo is a Country in West Africa and Member of International Solar Alliance (ISA). The country has set an ambitious plan to achieve universal electricity access by 2030 with focus on capacity addition in Solar Power generation. The Country has taken various initiatives to achieve these targets. The Country has been requesting assistance of ISA for development of Solar capacity in the Country. ISA has been taking various initiatives to assist the member countries to develop Solar Projects. Presently there are 6 Programmes of ISA to develop Solar capacities in Member Countries which include Agricultural Pumps, Mini grids, Rooftop Solar, Large Scale Grid connected Projects etc. The Programme on large scale Grid connected Projects on Solar park model was approved in 2nd Assembly held on 30th October 2019. Implementation of ISA Programmes are member driven and ISA Secretariat facilitates the implementation. NTPC Limited is a Power Major and a Public Sector Company of Government of India, owning an installed Power capacity of more than 58,000 MW which include 870 MW of Solar Projects and 1062 MW under development. Apart from development of own Solar projects, the Company has been the nodal Agency for development of more than 4000 MW of Solar Projects on IPP Model. Engagement of NTPC by Togo for PMC, based on endorsement of ISA: NTPC had submitted a proposal to ISA requesting endorsement of ISA to Member Countries to give Project Management Consultancy (PMC) to the member Countries for implementation of Solar Projects. As per NTPC Proposal, in ISA member Countries where Solar Projects are implemented through competitive bidding, NTPC may act as a project Management Consultant (PMC).

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NTPC will carry out various activities for selection of Solar Project developers (SPDs) on competitive basis for setting up Projects on ownership basis and enter into Power Purchase Agreement with Government-designated entities. The scope of PMC includes presentations to the concerned ministries and other stakeholders in ISA Countries for structuring of Projects, assistance to bring out enabling policy and regulatory framework for competitive procurement of Solar Power, bid process management for selection of Project developers on competitive basis, structuring PPA, Roof/ Land leasing agreements etc. The PMC charges of NTPC will be recovered from the selected SPDs. NTPC based on the feasibility, may also develop Solar Projects by putting own equity in Countries where Feed in Tariff is in force. ISA Endorsement of NTPC: The proposal of NTPC, after review by ISA Advisory Committee, was put on Swiss challenge for 28 days on ISA website. Subsequently, the proposal was submitted to ISA Finance Committee. Based on theconcurrence of Finance Committee, the proposal has been cleared in 2nd ISA Assembly. Based on the above, a Letter of Endorsement was given to NTPC for extending PMC services and circulated to all the National Focal Points (NFPs) of ISA Member Countries. There will not be any direct cost implications to the member countries. However, the engagement of NTPC for PMC is the sole discretion of a Member Country. NFP (National Focal Point) of Togo, based on the endorsement of ISA has sent a communication to DG ISA for engaging NTPC for the PMC services for development of Solar PV Projects/Parks on 70 Hectares of identified land in Dapaong (Dalwak Region: Capacity More than 33 MW) and on 500 Hectares of identified land in Mango (Savanes Region: Capacity About 250 MW). Togo is the first ISA Country to avail the services of NTPC. Source : pib.gov.in

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INDIA

Power Minister dedicates 11 renewable energy management centres to nation

Singh also inaugurated the Northern Region Renewable Energy Management Centre (NR-REMC) at a function. Power Minister R K Singh dedicated to the nation 11 Renewable Energy Management Centres (REMCs) for renewable energy integration. Singh also inaugurated the Northern Region Renewable Energy Management Centre (NR-REMC) at a function here. On the occasion, the Minister dedicated to the nation, eleven REMCs, placing India among a league of few nations, which have state-of-theart management centers for renewable energy integration,” a power ministry statement said. Speaking on the occasion, Singh congratulated all those who planned the Green Corridors and REMCs and said that they are showing more vision than that shown by Europe and US when they started renewable energy management.

he government’s target of 175 GW renewable energy (RE) capacity by 2022 poses challenges to grid management due to intermittent and variable nature of RE generation. The REMCs are equipped with artificial intelligence-based RE forecasting and scheduling tools and provide greater visualisation and enhanced situational awareness to the grid operators. The REMCs are co-located with the State Load Dispatch Centres (SLDCs) in Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Madhya Pradesh, Gujarat and Rajasthan; and in Regional Load Dispatch Centres (RLDCs) at Bengaluru, Mumbai and New Delhi; and at the

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National Load Dispatch Centre (NLDC) here. Presently, 55 GW of renewable power (solar and wind) is being monitored through the eleven REMCs. The government had approved the implementation of the REMCs as a central scheme and had mandated PowerGrid, a Maharatna CPSE under the Ministry of Power, as the implementing agency. These REMCs are being managed by the Power System Operation Corporation of India Ltd (POSOCO) at the regional and national level, and at the state level by SLDCs. The minister also released a report by POSOCO on ‘Analysis of Impact of Solar Eclipse 26th Dec’19 on Indian Power System’. The report covered various areas such as solar generation forecasting, ramp estimation and behaviour of PV plants during solar eclipse.

Source: PTI

MARCH- 2020

BUSINESS & FINANCE

Global green bond issuance seen at $300-$375 bln this year: Research

NTPC raises Asia’s largest Japanese yen loan worth USD 750 Million

India’s largest power generator NTPC Limited has raised syndicated Japanese yen loan worth USD 750 million. This is the largest ever syndicated JPY loan raised by any Asian Corporate from offshore Samurai loan market. It is also the highest ever single foreign currency loan raised by NTPC.

Global green bond issuance is expected to be between $300-$375 billion this year, after a record year last year, according to research from two companies who track the growing market.

reen bonds are a category of fixedincome securities that raise capital for projects with environmental benefits, such as renewable energy or lowcarbon transport. The bonds make up a small fraction of the overall bond market, but they are attracting attention because meeting emissions-cutting targets will need trillions of dollars of capital from public and private sectors. According to Nordic corporate bank SEB, issuance reached a record high of $263 billion last year and since the green bond market started in 2008, it has raised $840 billion. SEB expects green bond issuance to reach $375 billion this year and cumulatively, the market should pass $1 trillion in size. Moody’s Investor Service expects green bond issuance to reach $300 billion in 2020, while social and sustainability bond issuance will reach $25 billion and $75 billion respectively. The financial sector is increasingly incorporating sustainability factors into their investment decisions and risk management. This will continue in the coming years which will support the green bond market, it said. Source: m.economictimes

MARCH- 2020

n an endeavour towards sustainable and cleaner environment, NTPC would utilize these loan proceeds to fund capex for installation of Flue Gas Desulphurization (FGD) system that helps in substantial reduction of SOx emission, new hydro projects and projects using ultra supercritical technology with low carbon emission. Raised under automatic route of RBI ECB regulations, the loan has been fully underwritten by State Bank of India, Tokyo, Sumitomo Mitsui Banking Corporation, Singapore and Bank of India, Tokyo. The facility has a door to door maturity of 11 years under two tranches. Source: ntpc.co.in

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BUSINESS & FINANCE

TOTAL to invest USD 510 mn for 50% stake in 2,148 MWac solar power projects held by Adani Green

The Transaction underlines the AGEL and Total’s commitment to address India’s growing demand for power in a sustainable manner and help meet India’s climate change goals.

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dani Green Energy Limited (AGEL) and Total Gas & Power Business Services SAS (TOTAL) have entered into a binding arrangement for investment of approximately USD 510 Million for acquisition of 50% stake and other instruments in a Joint Venture Company (JVC) which will house 2,148 MWac operating solar projects presently 100% owned by AGEL. The balance 50% stake in the JV Co shall be held by AGEL. The solar portfolio is spread across 11 states in India. The stock is currently trading at Rs202.20 up by Rs9.6 or 4.98% from its previous closing of Rs192.60 on the BSE. The Transaction is subject to customary approvals and definitive agreements. The Transaction underlines the AGEL and Total’s commitment to address India’s growing demand for power in a sustainable manner and help meet India’s climate change goals.

Adani Group Chairman, Gautam Adani, commented; “We are delighted to extend our long term partnership with TOTAL to our renewable energy business in AGEL. The investment reinforces the immense potential in India’s renewable energy sector, as well as Adani group commitment towards sustainable development. This is a pivotal step in our journey towards building the world’s largest solar power company by 2025 and the world’s largest renewable power company by 2030.” Source: indiainfoline

MARCH- 2020

BUSINESS & FINANCE

Eversource buys ex investment banker’s biz, enters solar rooftop space EverSource Capital, a JV between PE firm Everstone Capital and Lightsource BP, has acquired Origin Renewables – a company which is into solar rooftop space, as part of entering the rooftop focused commercial and industrial (C&I) business.

rigin, which develops and invests in solar rooftop and other renewable projects on a Operational Expenditure (OPEX) or Build Own Operate and Transfer (BOOT) model, was owned by Manikkan Sangameswaran, a former investment banker worked with Babcock & Brown, ABN AMRO and UBS Securities. Origin had implemented solar rooftop projects with a capacity of 515 kWp for commercial and industrial (C&I) customers with a potential pipeline of over 50MWp. Manikkan who is currently the executive director of Radiance Renewables, had previously worked as the President- Infrastructure of ICICI Venture and co-headed the Infrastructure fund, focused on investment opportunities in energy, transport and renewable sectors. This is the third investment by Eversource Capital, since it was formed in April 2018. The investments are being done through The Green Growth Equity Fund (GGEF), managed by EverSource Capital, designed to promote sustainable energy projects. The UK Government and India’s National Investment and Infrastructure Fund (NIIF) are the investors and committed over £240 million as anchor capital.

In September, the fund had set up Radiance Renewables – as a private equity owned developer of renewable energy solutions for commercial, industrial and residential customers in India, with investing primary equity capital of Rs.300 crore. As a 100% subsidiary of the Green Growth Equity Fund (GGEF), Radiance targets to create over 1.5 GW of renewable energy capacity in India over the next 4 years based on a develop, build, own and operate strategy. Currently, Radiance manage 80 MWp and developing over 150 MWp across the states of Maharashtra, Karnataka, Tamil Nadu and Rajasthan. Radiance is also partnering with some of India’s top corporate and industrial customers who aim to achieve their sustainability goals by large scale adoption of renewable energy, added sources. Primarily operate as a Renewable Energy Services Company (RESCO – providing customers with OPEX solutions for their energy procurement), Radiance has also joined hands with solar technology players, regulatory advisors, EPC and O&M companies to develop and operate its projects.

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In a similar move, global infrastructure investment manager I Squared Capital had invested about $150 million in Amplus Energy Solutions, which owns and operates distributed rooftop solar in India in 2015. Amplus, which owns and manages a portfolio of more than 650 MWp of distributed solar assets in India, was acquired by Malaysia’s state-run oil and gas company, Petronas for Rs.2700 crore last year. With setting up both on-site solar projects (rooftop and ground-mounted) and off-site solar farms, Amplus has a portfolio of 180 commercial and industrial customers across diverse verticals in the country. In February last year, EverSource Capital had acquired a significant minority stake in Ayana, the renewable energy platform founded by UK based CDC for $330 million.

Radiance is launched for providing renewable energy solutions to commercial and industrial customers. and it leverages on Evesource’s parentage, Lightsource BP and Everstone Capital, said Dhanpal Jhaveri, CEO, Eversource Capital without disclosing further details. Last year, Satish Mandhana, former Managing Partner at IDFC Alternatives, was hired as the Senior Managing Director & CIO of Eversource Capital. GGEF has a target fund corpus of $ 700 million and its first close of $340 million was achieved in April 2018. India’s renewable capacity installations reached 86 GW as of 31 December, 2019, where wind energy became the biggest contributor with 44 per cent share in the total renewable energy mix followed by solar with 39 per cent share, according to research firm JMK Research and Analytics. Renewable energy capacity addition will be remained at about 8.5 – 9.0 GW for FY2020, which is similar to the capacity added in FY2019. The share of RE based generation in the overall generation mix at all India level is rising, as seen from an increase from 5.6% in FY2015 to 9.2% in FY2019. The share of RE is expected to reach closer to 10% in FY2020, ICRA report added. Source: economictimes.indiatimes

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BUSINESS & FINANCE

ADB, European Union, and ASEAN Countries Partner to Boost Green Infrastructure The European Union (EU) announced it is preparing to support the Association of Southeast Asian Nations’ (ASEAN) Catalytic Green Finance Facility (ACGF) with €50 million ($54.9 million) to help governments prepare and catalyze public and private financing for climate-friendly infrastructure projects across Southeast Asia.

aunched in April 2019 and managed by the Asian Development Bank (ADB), the facility provides ASEAN governments with technical assistance and easier access to sovereign loans to finance infrastructure projects focusing on renewable energy and energy efficiency, sustainable urban transport, water supply and sanitation, and climate-resilient agriculture. The EU infusion will come out of its Asia Investment Facility, according to EU Commissioner for International Partnerships Ms. Jutta Urpilainen, who made the announcement during the ASEAN–EU Dialogue on Sustainable Development along with ADB’s Representative to Europe Mr. Robert Schoellhammer.

This commitment reflects the European Union and ADB’s deepening collaboration to help Southeast Asian countries achieve the United Nations’ Sustainable Development Goals, said Mr. Schoellhammer.

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Mr. Anouj Mehta, ACGF Unit Head at ADB’s Southeast Asia Regional Department, said: Our joint support through the ASEAN Catalytic Green Finance Facility will help ASEAN member states fight climate change; improve air, soil, and water quality; and improve environmental protection. Southeast Asian countries face an annual financing gap of over $100 billion to meet its infrastructure needs. ACGF is part of the ASEAN Infrastructure Fund and is owned by ASEAN’s 10 member states and ADB. In addition to ADB and the EU, cofinancing partners for the facility include Agence Française de Développement, the European Investment Bank, German development cooperation through KFW, and the Government of the Republic of Korea. The first ACGF-supported project is expected to be approved later this year. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region. Source: adb.org

MARCH- 2020

BUSINESS & FINANCE

CPPIB looks to go big on ReNew as Goldman cuts stake Canadian Pension Plan Investment Board (CPPIB) is closing in on ReNew Power to double down on its biggest clean energy bet in the country and become the single largest shareholder, said people with knowledge of the matter. The move follows several months of negotiations.

he transaction, once complete, will give principal shareholder Goldman Sachs a muchneeded route to unlock value. Goldman is the original backer of Re-New, the country’s leading renewable power company. An existing investor, CPPIB is looking to raise its stake to over 40% by buying an additional 24% stake from Goldman Sachs Group, which had backed firstgeneration entrepreneur Sumant Sinha to create a green energy platform in 2011 with a $200 million commitment. The Wall Street investment bank is currently the largest shareholder with a 48% stake. CPPIB and Abu Dhabi’s sovereign wealth fund Abu Dhabi Investment Authority each own 16%, Japan’s gas and utilities major JERA owns 9%, and other small financial investors such as Global Environmental Fund own 3%. Sinha and employees own the remaining 8%. CPPIB first invested $144 million in ReNew in January 2018 and since then its total commitment has gone up to over $400 million. Its last round at Rs 415 a share valued ReNew at around $2.3 billion, said people in the know. The current round is at a discount to that and may see CPPIB pay $500520 million though the final quantum and other details are still being thrashed out.

The deal will also help employees and Sinha to monetise some of their shareholding. They too have been seeking a liquidity event ever since the IPO did not fructify, said one of the persons cited above. CPPIB, Goldman Sachs and Sinha declined to comment. Ever since ReNew was forced to shelve IPO plans in mid2018 – at a high $4 billion valuation –shareholders, especially Goldman, had been looking at ways to monetise investment and unlock value. Goldman has invested through a fund whose lifespan is getting over. It’s likely to park its residual 24% stake in a new fund and wait for future opportunities. Brookfield had also negotiated to buy into ReNew as ET reported on November 9. But Brookfield’s offer was not agreeable to Goldman, said the sources cited above. The company has also been finding it strategically difficult to raise primary capital as that would have set a new valuation benchmark, said people in the know. ReNew is among the top two independent power producers in the country with 4.9 GW of operational wind and solar capacity and over 3.2 GW in the pipeline.

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In January, it raised $450 million through a dollar bond issue, to refinance existing borrowings and for future capital expenditure. According to Fitch Ratings, the firm’s leverage ratio, or its net adjusted debt-to-operating ebitda (earnings before interest depreciation and amortisation) ratio, stood at over 5.5 times on a sustained basis. However, analysts feel the company’s large size and diversified renewable-asset portfolio provides economies of scale and operating leverage, mitigating concentration risk. Its project portfolio is spread across original equipment manufacturer suppliers and also geographically, with no single Indian state accounting for more than 25% of the total portfolio.

We believe the long-term powerpurchase agreements (PPAs) for the group’s operating assets offer price certainty and long-term cash flow visibility, said Fitch analyst Girish Madan. “The majority of the assets, representing 96% of group capacity, have PPAs with tenors of around 20-25 years, and a long remaining life: the weightedaverage operating life for the group’s assets is around three years.” Long-term PPAs provide protection from price risk, but production volume will vary, based on resource availability, which is affected by seasonal and climatic patterns, he said. The worry is the weak financial profile of state utilities that buy power from developers like ReNew. Stateowned power-distribution utilities account for about 60% of group total capacity, including projects under development. Around 36% of the offtake is tied up with sovereignbacked entities such as Solar Energy Corporation of India (SECI) with 31%, which have more timely payment records. Around 4% is sold directly to corporate customers, broadening the diversity of counterparties. “The weak financial profile of these counterparties has led to payment delays, more recently from the utilities in the state of Andhra Pradesh,” Madan said. Source : reuters

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international

SOLAR ENERGY FIRM SUNSEAP SNAGS $50M FUNDING FROM TEMASEK, ABC WORLD ASIA Sunseap Group has secured a total of $50 million from ABC World Asia, an Asia-focused impact investing private equity fund based here, and state investment company Temasek Holdings for solar projects in Singapore and other parts of Asia. ABC World Asia’s managing director Tan Shao Ming will also join Sunseap’s board of directors.

Sunseap’s president and executive director Lawrence Wu said: “Through this investment from Temasek and ABC World Asia, we gain partners not only interested in our ability to grow as a company, but also our ability to bring climate change solutions to new markets and drive positive environmental impact.”

ith solar systems installed on the rooftops of more than 1,500 HDB blocks in Singapore, Sunseap said it produces enough clean energy to power approximately 42,000 four-room HDB households annually. It allows residential customers to reduce their carbon footprint by switching to certified green energy through the liberalised electricity retail market. The company also recently won the tender for SolarNova 4, which will see solar panels installed across buildings in Singapore, including 1,218 HDB blocks and 49 government sites. The project is expected to generate more than 70 megawatt-peak (MWp) of solar energy, increasing Sunseap’s generation capabilities in Singapore.

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Through its offsite clean energy supply contracts, Sunseap is also enabling global tech giants Apple and Microsoft to meet their local energy requirements from renewable sources. Across the region, it has a total operating, under-construction and developmental asset project capacity of 1.7 gigawattpeak from projects in China, Taiwan, Japan, Vietnam and other parts of South-east Asia.

Sunseap’s CEO and executive director Frank Phuan said: “As we embark on the next phase of growth, we look forward to partnering and supporting more businesses in their drive for a sustainable future, as well as developing more renewable energy solutions and pursuing energy efficiency projects, building Sunseap to be a distributed utility provider in Singapore and across the region.” Credit Suisse (Singapore) and DBS Bank acted as financial advisers to Sunseap for this latest investment. Source: singaporenews.worldtimes.news

MARCH- 2020

international

Foresight Group energy infrastructure fund secures 342 mln euros Foresight Group has secured 342 million euros ($379 million) for its energy infrastructure fund in its first close, the private equity investment manager said

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he Foresight Energy Infrastructure Fund will invest in low-carbon energy infrastructure such as renewable energy, battery and energy storage and transmission and distribution assets. Foresight expects to use 275 million euros of the total raised to acquire assets quickly. Commitments to the fund were made by institutional investors across Europe including the Swedish insurance company PRI Pensionsgaranti, the European Investment Bank, sustainable infrastructure fund Arcano Earth Fund, and Norwegian financial services group DNB’s life insurance company. The fund’s strategy has been designed with a focus on “the global transition to decentralised, digitised and decarbonised networks,” said Dan Wells, partner at Foresight. Foresight has around 4.5 billion pounds ($5.9 billion) of assets under management, of which more than 3 billion are related to energy infrastructure.

MARCH- 2020

Generate Capital raises $1 billion for renewable energy infrastructure development The floodgates are open once again for capital investing in renewable energy projects and technology. Generate Capital, the renewable energy infrastructure investor, has raised more than $1 billion for new projects from a group of investors focused on infrastructure — including AustralianSuper, QIC, Railways Pension, among others.

he new financing fuels project development for sustainable infrastructure that serves more than 400 companies, universities, school districts, and nonprofits across North America. Over the last five years, Generate has built more than $1 billion in sustainable projects in the energy, waste, water and transportation industries. Alongside the funding, Generate added former New York State Energy Research and Development Authority chairman, Richard Kauffman, and Lynn Jurich, the co-founder and chief executive of Sunrun to the Generate board of directors. The investment and project development firm partners with project developers on battery storage, community, commercial and industrial solar energy; energy efficiency, vehicle electrification; fuel cell; wastewater treatment; distributed desalination and organic waste management projects.

At Generate, we are working with the leading pioneers to bring about an infrastructure revolution, one that is democratized, digitized, decentralized, and decarbonized, said Scott Jacobs, the co-founder and chief executive of Generate, in a statement. “This transition requires an entirely different type of company committed to rebuilding the world: one that is mission-aligned with its many stakeholders, can provide flexible, efficient capital solutions to enable more projects to be built, and has the expertise and capacity to manage that infrastructure and deliver those resources — forever — to its customers.” Source: ph.news.yahoo

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international

Temasek Pushes Clean Energy With Solar Co-Investment

Singapore’s state investment arm Temasek Holdings furthers its commitment into renewable energy with its latest co-investment, alongside a private equity fund, of $50 million in a solar energy firm.

unseap secured funding from Temasek and Singapore-based ABC World Asia for solar projects in the city-state and other parts of Asia. Following the investment, which was advised financially advised by Credit Suisse and DBS, ABC World Asia’s managing director Tan Shao Ming will join the solar power company’s board of directors.

Through this investment from Temasek and ABC World Asia, we gain partners not only interested in our ability to grow as a company but also our ability to bring climate change solutions to new markets and drive positive environmental impact, said Sunseap’s president and executive director Lawrence Wu. Temasek continues to bet on renewable energy with the latest investment into Sunseap. Earlier this month, it co-launched renewable energy platform O2 Power in India through a $500 million co-investment with Swedish asset manager EQT.

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Sunset already has solar systems installed on the rooftops of more than 1,500 public housing blocks in Singapore which it says produces enough clean energy to power around 42,000 four-room households. It has also recently won tender to further install solar panels across 1,218 public housing blocks and 49 government sites. And within Asia, it has a grand total asset project capacity of 1.7-gigawatt peak from projects in China, Taiwan, Japan, Vietnam, and other Southeast Asian markets.

As we embark on the next phase of growth, we look forward to partnering and supporting more businesses in their drive for a sustainable future, as well as developing more renewable energy solutions and pursuing energy efficiency projects, building Sunseap to be a distributed utility provider in Singapore and across the region,» said Frank Phuan, Sunseap’s CEO and executive director. Source: finews.asia

MARCH- 2020

international

Jeff Bezos: World’s richest man pledges $10bn to fight climate change Amazon boss Jeff Bezos has pledged $10bn (£7.7bn) to help fight climate change. The world’s richest man said the money would finance work by scientists, activists and other groups. He said: “I want to work alongside others both to amplify known ways and to explore new ways of fighting the devastating impact of climate change.”

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riting on his Instagram account, Mr Bezos said the fund would begin distributing money this summer. Mr Bezos has an estimated net worth of more than $130bn, so the pledge represents almost 8% of his fortune. Some Amazon employees have urged him to do more to fight climate change. There have been walkouts and some staff have spoken publicly. Also, Mr Bezos is financing the Blue Origin space programme, criticised for its carbon footprint. Compared to some multibillionaires, Mr Bezos had done only limited philanthropy. His biggest donation before pledge is thought to have been $2bn in September 2018 to help homeless families and fund schools.

He has also been criticised for not signing the Giving Pledge, under which the super-rich promise to give away half of their wealth during their lifetimes. Mr Bezos’s full Instagram post read: “Today, I’m thrilled to announce I am launching the Bezos Earth Fund.⁣⁣⁣ ⁣⁣⁣”Climate change is the biggest threat to our planet. I want to work alongside others both to amplify known ways and to explore new ways of fighting the devastating impact of climate change on this planet we all share. This global initiative will fund scientists, activists, NGOs – any effort that offers a real possibility to help preserve and protect the natural world. “We can save Earth. It’s going to take collective action from big companies, small companies, nation states, global organisations, and individuals. ⁣⁣⁣⁣⁣⁣”I’m committing $10bn to start and will begin issuing grants this summer. Earth is the one thing we all have in common – let’s protect it, together.”⁣⁣⁣ Source: bbc

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technology

We Now Have An ‘Anti-Solar Panel’ That Generates Power In The Nighttime

Solar power technology is one of the most popular sources of clean renewal energy that has been through several innovations through the years to be used for a host of applications such as powering residential apartments, streetlights and even run the batteries on the International Space Station.

ut the only caveat in harnessing this limitless bounty is that it cannot generate power at night. But now, scientists have found a way to leverage solar energy irrespective of day and night and keep it going round the clock. Researchers at the University of California have reportedly invented a new type of solar technology that they’re calling ‘anti-solar panels’ whose modus operandi is the exact opposite of conventional solar panels. The regular solar panels that we have today work by trapping sunlight and converting it into energy for a variety of purposes. Whereas, the anti-solar panel simply works in reverse, capturing energy radiated by the Earth to the space.

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Here’s what happens: When one side of the Earth is plunged into darkness, it cools down. The heat in that surface region thus starts escaping into space. Now the anti-solar panel seizes this heat, or thermal energy, which would have otherwise been lost, and turns it into usable energy. Reportedly, the anti-solar panels can generate around 25 per cent of the energy that a solar panel does in a day.

“In order to produce electrical power after the sun has set, we consider an alternative photovoltaic concept that uses the earth as a heat source and the night sky as a heat sink, resulting in a ‘nighttime photovoltaic cell’ that employs thermo-radiative photovoltaics and concepts from the advancing field of radiative cooling,” researchers explain in the study published in ACS Photonics. Although the amount of energy generated this way has no competition with the traditional solar panels, that’s essentially free energy and can mean a lot if captured and used on a large scale. Source: in.mashable

MARCH- 2020

technology

Solar power to become cheaper and more efficient in 2020s Wood Mackenzie highlights 6 key trends to watch in 2020 and beyond. Solar system prices will continue to drop over the next decade, driven by advances in module efficiency, manufacturing, labour practices and software, according to Wood Mackenzie.

owever, the focus of the next decade will be defined by two trends: a shift from purely decreasing capital expenditure to a more holistic approach to reduce lifetime solar system costs; and “solar plus” solutions. The 2020s will see levelized cost of energy (LCOE)-oriented supply chain innovation continue to drive down solar system cost and improve energy yields. The urgent need to fight climate change will demand the solar industry to think creatively beyond what was previously expected to be feasible.

What are the biggest trends to watch in the global solar market in 2020 and beyond? Xiaojing Sun, Wood Mackenzie Senior Analyst, and Lindsay Cherry, Wood Mackenzie Analyst, see six key themes: Project LCOE reduction. “Solar plus” applications will begin to take over the market. Repowering existing solar plants. Trade tensions and tariffs. Intelligent manufacturing will revolutionise solar supply chain. Cybersecurity breaches could become commonplace.

Sun said: “Enhancing solar system performance is crucial for lowering LCOE. Module and system components innovation will increase the energy generation per watt and reduce degradation. “Intelligent system design, using software powered by data analytics coupled with real-time performance monitoring, will ensure solar systems are designed and operated to maximise energy generation and financial performance. “The 30-year module performance warranties will put solar power plants’ lifetime on par with that of natural gas combined-cycle plants, increasing the competitiveness of solar in the marketplace. “Innovations in wafer, cell, and modules will increase the panel power output without proportionally increasing manufacturing costs. We are likely to see widespread applications of n-type bifacial modules using large wafers with improved hotspot performance and lower light- and temperature-induced degradations. “Module manufacturers will implement efficient and automated practices to lower production costs. As a result, 500W+ modules will be widespread in the second half of the decade yet cost no more than today’s 400W modules.”

MARCH- 2020

In the 2020s, solar energy as a standalone application will become less relevant than today and “solar plus” applications will begin to take over the market. According to Wood Mackenzie, the late 2010s saw rapid growth of floatovoltaics in several Asian countries due to a lack of viable land. Floatovoltaics are expected to become prominent in European and Middle Eastern countries over the next ten years. Higher cost is a common challenge faced by most “solar plus” applications. If floatovoltaics can offer any insight, costs are expected to decline as competition among vendors and developers escalates with more market entrants and rising demand. The most talked about “solar plus” application is solar-plus-storage. As solar and storage costs are driven down the curve, Wood Mackenzie says more utilities are likely to turn to solar-plus-storage instead of solar-only procurements to provide more dispatchable capacity on their grids. Recent utility solar-plus-storage procurements in the US give a good preview of what’s to come during the new decade in system design and architecture. More system integrators have warmed up to DC-coupled solutions that eliminate the need for a second inverter. Wood Mackenzie expects to see greater integration of solar and storage hardware components. The market for repowering existing solar plants will take off in the 2020s as the global install base for solar ages, according to Wood Mackenzie. “The repowering of solar systems allows for production of more electricity while using existing land, interconnection points and other infrastructure, leading to a lower LCOE.

From 2020 – 2030, the potential market for solar repowering sites that have reached 20 years of operation could hit 67 GWdc cumulatively. This could be a major boon for asset owners, O&M providers and solar component manufacturers. “With the advent of more efficient and less expensive technology, repowering may even pencil out for sites younger than 20 years,” said Cherry.

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technology Trade is good for the expansion of solar power globally, while trade barriers drive up the cost of solar and reduce the potential for deployment. As of January 2020, solar modules sold in the US are on average 45% more expensive than in other major developed countries due to three different solar-related tariffs. “If the US were to remove all tariffs on imported solar modules today, system prices would go down by nearly 30%. In the no tariff scenario, utility-scale solar in the US would cost less than $1.00/Wdc to build in 2020, two years earlier than its current cost trajectory. “On the contrary, if the US decided to repeat the same set of tariffs for another round, by 2026 it could cost twice as much to buy solar modules in the US than in Europe or Canada. “Chinese module makers would see their global market share increase if all existing solar tariffs were removed. The biggest beneficiary would be American solar developers and consumers. Solar-plus-storage economics would also improve. Considering rapidly declining battery costs, the 2020s may be the decade where solar-plus-storage first becomes a competitive base load resource. “However, a sudden do-away with tariffs would deal a huge blow to US domestic module manufacturers. Southeast Asia’s capacities would also be negatively affected,” added Sun.

The solar manufacturing sector could experience a technological revolution over the next decade. With the combination of 5G technology, the internet of things and artificial intelligence, solar modules, inverters and trackers will be produced in smart factories. These futuristic manufacturing plants will be highly automated and significantly more efficient and productive than the currentday facilities. Fully automated production lines mean less reliance on labour and a stronger focus on IT and telecommunication technologies. According to Wood Mackenzie, these processes will weaken or even neutralise the labour cost advantage of some Asian manufacturers. The capital required to adopt 5G technologies will also create a high barrier to entry and favour players with deeper pockets. With an increasing reliance on technology comes the threat of cybersecurity breaches. “Security experts view an attack on the electricity grid as imminent, which could have serious and far-reaching implications for the solar industry. “The growth of distributed energy resources is of particular concern. While cybersecurity is addressed in portions of federal standards in the US, no comprehensive standard exists, leaving solar plants and the grid vulnerable. “If a cyberattack hit the solar industry tomorrow, it would severely jeopardise the reliability of plants and hurt the industry both reputationally and operationally,” added Cherry. Source: woodmac

Enel’s Heterojunction Solar Cell Achieves 24.63% Efficiency

A 24.63% conversion efficiency for a heterojunction (HJT) solar cell based on a standard M2 wafer was achieved by the National Solar Energy Institute (INES) in collaboration with the Enel Green Power renewable energy business of Italian state-owned power company and gas distributor Enel.

“The result was confirmed by the German Institute for Solar Energy Research in Hamelin (ISFH).” he Italian company said the bifacial cell’s front-side efficiency was raised by around 0.7% using an improved busbar-free screen printing metallization process based on heterojunction processes developed between Enel and INES, using manufacturing equipment provided by Swiss specialist Meyer Burger. The increase in efficiency was made possible by combining busbarless technology – which enables more light to fall onto the cell surface – and a treatment developed by INES and Enel which further improved cell passivation. Enel Green Power started production of heterojunction modules at its 3Sun module factory in Catania in October. The 200 MW facility manufactures bifacial solar panels with an output of up to 400 W and efficiency of more than 20.5%. This facility will produces the new product too.

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Source: cleanfuture.co.in

MARCH- 2020

technology

GoodWe becomes the world’s first non-European inverter manufacturer to obtain the very demanding VDE-AR-N 41102018 compliance certificate On February of 2020 GoodWe became the first non-European PV inverter manufacturer in the world to receive an official certification from the authoritative TÜV Rheinland Industrie Service GmbH from Germany validating that its C & I and utility grade MT-Series Inverter has passed the latest version of the VDE-AR-N 4110-2018 Technical Requirements for the connection and operation of customer installations to the medium voltage network issued by the VDE Testing and Certification Institute. These are extraordinarily important news that give us enormous pride and it is our joy to share with our customers the achievement of this important milestone.

o give some context: the VDE-AR-N 4110-2018 Technical Requirements for the connection and operation of customer installations to the medium voltage network constitute a set of diversified conditions put in place by the VDE Testing and Certification Institute that network operators, generating plant operators but also component manufacturers such as GoodWe need to meet in order to ensure the safe and stable connection of energy generating equipment such as our MT-Series inverter to the European electric grids.

The latest version of this set of technical requirements (Guideline FGW TG 4 Rev.9) derive in great measure from the European network codes and contain “expanded requirements for fault ride-through of short voltage drop as well as for providing reactive powers through decentralized power generating plants”. The fact that the GoodWe has passed this set of requirements contributes in a very important way to certify that the GoodWe MT-Series is compliant with the European regulations and that the connection of the MT-Series inverter to the European grids is safe as it does not disrupt their stable performance.

GoodWe technically outperforms formidable competitors: praise to the company’s R & D capabilities In these times of fierce market competition, this important achievement eloquently proves once again that GoodWe is a global inverter player to be reckoned with. The VDE-AR-N 4110-2018 technical requirement are one of the most demanding and exhaustive standards of the PV inverter industry. After months of dedication and a long-term collective effort, GoodWe has been the first non-European supplier to get this recognition and this feat clearly illustrates the very high technical capabilities and strengths that the company has reached over the years. Without a doubt, these capabilities are now among the strongest in the whole industry and encompass every element in the process of technological development of the company: a great R & D team, best design and top of the line components.

The doors of Europe are now open for the GoodWe MT-Series The MT-Series is one of GoodWe’s most successful and globalized inverters. For the past two years, the number of deployments of this inverter across the world

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has multiplied, contributing to raise the reputation of this inverter, which is considered, thanks to its outstanding DC oversizing of 50% and full operation at extreme temperatures, one of the most cost-effective in the industry with the lowest LCOEs. On the back of its enormous success in markets such as India, Turkey and Brazil and after being selected by a number of international EPCs, the GoodWe MT-Series landed last year in Europe with landmark projects in Hungary, where it was selected thanks to its remarkable functionality, which includes PLC Communications and string level monitoring.

After passing the VDE-AR-N 4110-2018 requirements and obtaining this certification, the GoodWe MT-Series is now officially recognized by the most authoritative technical body in the industry such as the TÜV Rheinland Industrie Service GmbH as a compliant utility grade inverter. This important success will contribute to open the doors of Europe (and the rest of the world) to the GoodWe MTSeries, allowing us to have a larger participation in the utility projects of the continent and as a consequence a stronger contribution to the energy transition of the region, expected to accelerate starting from this year onwards. This is thus a great milestone and a great news that gives again great pride.

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technology

Don’t let your inverter becomes an orphan, it needs to be looked after well Sofarsolar technical Engineers often encounter such problems. Many users installed photovoltaic power stations, and they can take good care of solar panels like a baby.Unfortunately, inverters become an orphan were ignored when inverters sounds and lights alarm attract their attention but they keep a “set and forget” sort of deal.

First, Look out for warning lights

Third,Watch inverter performance

Each Sofarsolar inverter has three alarm lights represent that GFCI warning, inverter states light, and alarm. Sofarsolar’s inverters now can sort out minor problems and glitches themselves, but more serious problems, or minor problems that often lead to more serious hassle, will elicit a cry for help. As soon as you see any lights, read your manual to see if you can fix it or whether you have to call a Sofarsolar techie in.

Watching your inverter’s performance is the best way to make sure it’s healthy. Sofarsolar inverter’s has 4’LCD that displays the updates of energy, power, input information, warning information etc so that you can see how much energy your system is producing. Knowing what to expect on a daily, weekly, monthly and seasonal basis means you’re able to see shortfalls rapidly and take action.

Second, Listen out for noises In order to attract many users’ attention, Sofarsolar has added sound alarm function on each inverter.If you’re hearing any sound alarm, any funny noises (especially if there’s a warning light too),then you need to take further steps – either work through the manual or call someone in. Sometimes, your inverter will work away quietly 99.99% of the time.

Fourth,Check the data Sofarsolar technical Engineers advised that you should also compare your output with the data supplied to you by your installer or manufacturer. If you’re finding you’re always much lower than your estimated energy production then there may be a physical reason, like shady trees or an obstructive building. It’s not always about looking for problems with the inverter itself, there are often external reasons for less-than-optimal outputs and these can sometimes be eliminated or improved upon.

As a user don’t let your inverter becomes an orphan, it needs to be looked after well, when you do four best things to look after your inverter, I think photovoltaic power station will bring you an endless surprise.

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MARCH- 2020

technology

Why is the LONGi Hi-MO 4 module favoured by the PV market? There is little question that the solar market in general has thus far shown a growing preference for the LONGi Hi-MO 4 module with M6 wafer (166mm), but there are nevertheless still some in the PV industry who have an ambiguous attitude towards the product. In this article, we have put together a Q&A list on the LONGi Hi-MO 4 and trust that this will provide a more systematic and in-depth understanding of its background and benefits.

Why has LONGi chosen the M6 wafer (166mm) specification for the Hi-MO 4 module?

The reasons for choosing the M6 wafer (166mm) for Hi-MO4 he cost saving and compatibility advantages of the M6 wafer (166mm) are achieved at both the manufacturing end of the industrial chain and the application end of the system. For the cost saving on the system side, the fundamental reason is that the increase of current basically makes use of the margin of the current commercial

inverter and increases the capacity of a single string for unchanged Voc (the string length is unchanged). Since M6 bifacial modules fully utilize the current margin of the inverter, any wafer larger than M6 will limit the inverterâ&#x20AC;&#x2122;s current and lead to a loss in power generation. Although new module circuit design can reduce current, the benefit in BOS cost will disappear when compared with M6 modules.

How has the LONGi Hi-MO 4 module evolved?

Upgraded Hi-MO4

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technology LONGi optimized the design size of the Hi-MO 4 module earlier this year. The size of the 72 cell module changed to 2094 * 1038mm. The efficiency of mass produced modules exceeded

20% across the board, and that of the 450W module reached 20.7%. The improvement in efficiency brings further BOS cost savings, and the land area occupied by a power station is also significantly reduced.

What is the difference in BOS cost between the LONGi Hi-MO 4 module and modules of other specifications?

Comparison of main products in market (Bifacial Module) With a 72 cell module with a 158.75mm silicon wafer, at a power station adopting a centralized inverter and fixed bracket configuration, the BOS cost of the Hi-MO 4 can be reduced by 0.65 US cents/W. Although the power of a 78 cell module

is equal to that of the Hi-MO 4, the reduction in the number of series connections leads to a significant gap between the cost saving of its BOS and that of Hi-MO 4.

BOS cost comparison (Using string inverter)

At a power station adopting string inverters, the BOS cost of Hi-MO 4 can be reduced by 0.86 US cents/W due to the increase of capacity ratio.

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technology LONGi’s Hi-MO 4 module is obviously larger. Can it really reduce installation costs?

Comparison of main products in market (Bifacial Module) Obviously, a high power module with an M6 wafer (166mm) brings higher power generation gains and lower BOS costs in practical application. But will the increase in module size and weight make the actual installation more difficult? Will it add more installation costs? According to detailed research, there is no obvious difference between a Hi-MO 4 module and a

conventional module in terms of handling, upper bracket and installation work. However, due to the increase in power of a single Hi-MO 4 module, the number of modules required is lower, meaning that installation effort is reduced, efficiency improved, and the overall construction period shortened, significantly lowering overall installation costs.

What is the market performance of the LONGi Hi-MO 4 module? LONGi’s Hi-MO 4 module has been in a state of relatively short supply since it was launched, with more than 10GW of cumulative orders and letters of intent. Shipments in 2019 reached 1.5GW. Projects where the Hi-MO 4 module has already been utilized cover, among other territories, all regions of China, Bangladesh and Vietnam. Feedback from customers and EPCs has generally been that significant savings have been seen in most aspects of the construction process. The market response to Hi-MO 4 has been extremely positive.

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In 2020, the capacity of the module will exceed 20GW, ensuring stable global supply. After continuous optimization, the Hi-MO 4 module has an impressive mass production version, with a further reduction in weight. With the addition of bifacial technology, BOS and LCOE costs have also been lowered. The LONGi Hi-MO 4 module has quickly become the preferred choice for global clients, especially for large-scale PV power plant investors, and has demonstrated huge investment value worldwide.

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technology

Pilot project with China Electric Institute (CEI) verifies the power generation performance of monofacial and bifacial PERC modules in Sanya and Turpan The China Electric Institute (hereinafter referred to as CEI) has compared the outdoor power generation performance of the then emerging monocrystalline PERC and polycrystalline modules in 2016-2017. The 1-year monitoring data of two real-life fields in Sanya, Hainan (humid and hot marine environment) and Turpan, Xinjiang (dry and hot environment), shows that the PERC module had an excellent performance in terms of both power generation and anti-degradation (the first-year yield gain of a PERC module is 3-4%). For details, please refer to “Analysis Of Which Module Has Higher Power Generation By Pilot Project Data”, “Comprehensive Degradation Performance of Monocrystalline PERC In Practical Application” and “Power Generation Performance of Mono-crystalline PERC module”.

injiang (dry and hot environment), shows that the PERC module had an excellent performance in terms of both power generation and anti-degradation (the first-year yield gain of a PERC module is 3-4%). For details, please refer to “Analysis Of Which Module Has Higher Power Generation By Pilot Project Data”, “Comprehensive Degradation Performance of Monocrystalline PERC In Practical Application” and “Power Generation Performance of Mono-crystalline PERC module”.

The monofacial and bifacial PERC modules for the pilot project were provided by LONGi, and the polycrystalline modules were from two Tier 1 manufacturers. The power of the modules was retested by the CEI before 2mounting samples, with power generation data measured from the DC side and the results used to calculate the power generation per watt. In this test, the LONGi monofacial PERC module continued its excellent power generation performance, as on previous occasions, its power exceeding that of the polycrystalline module. In the Sanya test field, the average power generation per watt of the LONGi monofacial PERC module was 4.7% higher than that of polycrystalline module and 4.1% higher than that of polycrystalline module. In the Turpan test field, the average power generation per watt of the LONGi monofacial PERC module was 3.7% higher than that of polycrystalline module and 4.9% higher than that of polycrystalline module

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For the bifacial PERC module, the yield gain relative to the monofacial PERC module under two different albedo conditions was tested in two fields. In the Sanya test field, with a ground type of white paint with high albedo, the average rear side gain was 18.5% during July to November 2018. Tested on cement ground, the average rear side gain was 8.6% during November 2018 to May 2019. In the Turpan test field, the average rear side gain was 20.1% under surface conditions of white paint from June to October 2018. Replacing the ground material with gravel, the average bifacial gain was 7.0% from November 2018 to June 2019.

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technology

The yield gain of the bifacial modules was shown to be higher in summer than in winter throughout the year; for a sunny day, the power generation gain is represented by a U-shaped curve that is higher in the morning and evening than at noon. The figure below shows the power generation of monofacial and bifacial PERC modules in the Sanya test field on April 29, 2019:

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technology

The yield gain of the bifacial module is derived from the irradiation received on its rear side. In order to investigate the uniformity of the light received on the rear side of the module, six measuring points were taken on the back of the module to monitor irradiation. The position of each measuring point is shown in the figure below:

The irradiance for each point on the rear side in typically clear weather is shown in the figure below. The irradiance of different positions is relatively high at noon and relatively low in the morning and evening. The higher the position, the higher the irradiance.

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MARCH- 2020

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technology In terms of the test results in Turpan, we focused on the working current of the module under high irradiation conditions, calculating the total inclined irradiation and string current for each month.

Detailed analysis shows that optimal daily irradiation was not more than 1,100W / m2 in sunny weather (such as August 24, 2018). The highest annual irradiation occurred in cloudy weather (July 4, 2018). The instantaneous irradiation was close to 1,300W / m2. The enhancement effect of reflection from clouds on irradiation is usually very short.

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The results in July 2018 and June 2019 are shown in the figure below. Turpan is an area with abundant light resources. The maximum daily irradiation is usually about 1,000W / m2, and there are few days with poor irradiation.

Conclusion: in the one-year real-life field test conducted by CEI in Sanya, Hainan (humid and hot marine environment) and Turpan, Xinjiang (dry and hot environment), the LONGi monofacial PERC module maintained its power generation advantage over the polycrystalline module, with a power generation gain of 4- 5%; the newly added LONGi bifacial PERC module demonstrated a stable and reliable power generation gain compared with the monofacial module. The yield gain with white paint is about 20% and that with cement and gravel is about 8%. The case study analyzes the irradiance at different positions on the rear side, the annual irradiance and the working current, which can provide valuable reference for the application of bifacial modules in power station systems.

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research & Analysis

SECI gets AA+(Stable) Rating From ICRA Solar Energy Corporation of India Ltd: Ratings reaffirmed; outlook revised to Stable; rated amount enhanced.

Summary of rating action

Rationale The revision in outlook primarily factors in the significant delays in the receipt of payments from state-owned discoms in states, mainly Andhra Pradesh, Rajasthan and Karnataka, which has resulted in high debtors and has led to high utilisation of the available payment security fund (PSF) that has been significantly dipped into at present. The outlook revision also reflects the concerns on the financial position of the state-owned distribution utilities in many states, arising out of lower-than-expected reduction in aggregate technical and commercial (AT&C) loss level, tariff inadequacy and inadequate subsidy support. Further, Solar Energy Corporation of India Ltd (SECI) does not have any additional PSF beyond the level that is allocated through budgetary support for National Solar Mission, Phase 2, Batches 1, 3, 4 schemes and will have to either utilise its own funds to manage mismatch in payments and collections if any, or take external borrowings. However, as per the amendments done by Ministry of New and Renewable Energy (MNRE) in the solar bidding guidelines in October 2019, developers will have to deposit Rs. 5 lakh per MW on commissioning of assets, which would be utilised as a PSF by SECI. While the same is valid for solar tenders floated under Standard Bidding Guidelines (SBG) from Tranche 5 onwards, all wind auctions under bidding guidelines and solar auctions (conducted before October 2019) do not have the benefit of any PSF. However, the ratings continue to draw comfort from the strong parentage of SECI [100% owned by the Government of India (GoI)] and its strategic role in promoting the solar and wind energy sector in India, which is a thrust area of the Government. The ratings also factor in the benefits available to the company by virtue of its inclusion as a beneficiary of the tripartite agreement (TPA) signed between Central Government, state governments and the Reserve Bank of India (RBI). Nearly all states/UTs have either already signed the TPA or have provided in-principle approval. ICRA favourably considers the fact that SECI, which signs power purchase agreements (PPA) with developers, enters into back-to-back power sale agreements (PSA) with discoms, thus mitigating any risks related to demand, execution or operations. ICRA also positively factors in the trend exhibited by the majority of the discoms in opening the requisite letter of credit (LCs) as payment security in favour of SECI, post notification of the LC requirement in August 2019 by the Ministry of Power (MoP), GoI. Further, an improved tariff competitiveness of both wind and solar energy is a positive from the discom’s perspective, given that weighted average PSA tariff for the projects awarded through SECI under SBG for a tendered capacity of 18+ GW averages close to Rs. 2.7 per unit, which is much lower than the average power purchase cost (APPC) for most discoms. The rating is also supported by the low risk and high margin fee-based income stream of SECI, wherein its gets a fixed percentage of the funds disbursed either for viability gap funding (VGF) or central financial assistance (CFA)-based schemes of the GoI and/or receives success fee on signing of PPA with developers. ICRA also notes the satisfactory performance of SECI’s own 10-MW solar power plant, wherein the counterparty is NVVN. Moreover, ICRA

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continues to factor in the company’s strong financial profile as reflected by an increasing scale of operations, healthy cash accruals, debt-free capital structure and strong debt protection indicators. Nevertheless, the company remains exposed to state-owned discoms, most of which have weak financial health. ICRA also takes note of the CERC order dated November 20, 2019, wherein CERC refused to approve the trading margins of Rs. 7 paise per unit for SECI for the duration of the PPA/PSA and instead put the onus on both the parties to mutually decideabout the trading margins. The company’s ability to sign the PSA agreements with the discoms as per its expectation, i.e. at 7 paise per unit remains important and any decline in the same may affect SECI’s profitability and return metrics. Finally, ICRA notes that the company is in the process of setting up various projects over the long term on its own balance sheet, depending upon the receipt of Government approvals. This would, however, expose it to executionrelated risks (time and cost overrun) and even leverage its capital structure. The Stable outlook on the [ICRA]AA+ rating reflects ICRA’s opinion that SECI will continue to benefit from the strong policy focus of the Government on the renewable energy sector and beneficiary under TPA mechanism. Nonetheless, the progress over the receipt of pending overdues in key states, adequacy of PSF for the capacity awarded and tariff payment behaviour by discoms remain key monitorables in the near term.

Key rating drivers Credit strengths

Strong sponsor strength as SECI is 100% owned by GoI – SECI is under the administrative control of the Ministry of New and Renewable Energy (MNRE), GoI and was set up on September 20, 2011, under the Companies Act 1956 as an implementation and facilitation institution dedicated to solar energy sector. It is implementing the National Solar Mission (NSM or JNNSM) on behalf of the GoI. The Government’s demonstrated support to solar initiatives lends strategic importance to the company. SECI’s inclusion in TPA and its subsequent signing by most state governments – SECI has been included as a beneficiary in the TPA to be executed between the Central Government, state governments and the RBI. The TPA, which has currently been signed by 29 states/UTs. While there has been no precedence of any TPA invocation so far, the same is expected to act as a key deterrent for the discoms, which should ensure their ability to honour the PSAs. Presence of PSF envisioned to cover three months of payment delays by discoms under NSM Phase II for aggregate commissioned capacity of ~5 GW – Of the Rs. 1,500 crore requested by SECI for PSF, the MNRE has sanctioned and released Rs. 500 crore for the capacity to be set up under NSM to cover for payment delays by discoms. The total available fund balance in PSF came down to Rs. 247 crore as on November 2019 from Rs. 537

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research & Analysis crore as on May 2019 due to payment delays from utilities in the states of Andhra Pradesh, Karnataka and Rajasthan. Although the PSF provides liquidity cushion it may be noted that its coverage currently does not include any other program except NSM (Phase 2 Batch 1,3 and 4). Hence, capacities awarded of 16+ GW under ISTS auctions under the Standard Bidding Guidelines (SBG) is outside the purview of such PSF, which is backed by budgetary allocation.

Trading margin for SECI is subject to mutual negotiation as per CERC order – In an order dated November 20, 2019, CERC while approving the tariffs determined through competitive bidding, refused to approve the trading margins of Rs. 7 paise per unit for SECI for the duration of the PPA/PSA. It instead put the onus on both the parties to mutually decide on the quantum of trading margins.

SECI as nodal agency is an intermediary – For its power trading business, SECI is an intermediary that has entered into PPAs with developers as well as PSAs with offtakers, i.e. state-owned distribution utilities. SECI, therefore, keeps a fixed trading margin of Rs. 0.05–0.07/unit. By virtue of the PSAs signed, it is largely insulated from any market risk, execution risk and operational risk as most terms in the PPA signed with developers and PSA signed with discoms are back to back. In the event of any delays from the PSA counterparties/state discom, the payment security measures available in PSA such as availability of LC and power supply regulation provide the mitigating factors to a large extent.

Thus far, there have been no prominent issues in this respect. Going forward, however, in case incremental PSAs are signed at a lower margin, it will adversely impact SECI’s profitability and return metrics.

Availability of one-month LCs for most power currently being sold – The MoP had issued guidelines, making it mandatory for discoms to open and maintain adequate Letters of Credit (LC) as the payment security mechanism under PPAs. Against a monthly requirement of ~Rs. 386 crore in November 2019, SECI received LCs of ~Rs. 300 crore from various discoms, which provides additional payment security for the company. Improved tariff competitiveness of renewable power to benefit offtakers – An improved tariff competitiveness of both wind and solar energy is a positive from the discom’s perspective, given that weighted average PSA tariff for the projects awarded through SECI under SBG for a tendered capacity of 18+ GW averages close to Rs. 2.7 per unit, which is much lower than the average power purchase cost (APPC) for most discoms. Comfortable financial profile – The company has a comfortable financial profile as reflected by increasing scale of operations, healthy cash accruals, debt-free capital structure and strong debt protection indicators. Moreover, it has healthy cash balances resulting in a comfortable liquidity position.

Credit challenges Credit quality of most counterparties remains weak – ICRA takes into account the high counterparty credit risks arising from exposure to state-owned discoms, most of which are in weak financial health. The same has been manifested by delay in payments from Andhra Pradesh, Rajasthan and Karnataka. Overall, the financial position of the state-owned distribution utilities in many states has remained weak, arising out of lower-than-expected reduction in aggregate technical and commercial loss (AT&C) level, tariff inadequacy and inadequate subsidy support. Unavailability of PSF (backed by budgetary support) for new schemes – At present, the PSF is available only for the capacities tendered under NSM Phase 2, Batch 1, 3 and 4. The company does not have funds available for the capacities auctioned under SBG tenders and will have to either use its internal funds or take external borrowings to meet shortfall if any. However, as per the amendments done by MNRE in the solar bidding guidelines in October 2019, developers will have to deposit Rs. 5 lakh per MW on commissioning of assets, which would be utilised as a PSF by SECI. But the same is valid for solar tenders floated under SBG from Tranche 5 onwards and all wind auctions under SBG and solar auctions (conducted before October 2019) do not have the benefit of any PSF at present.

Execution risks for underlying projects which are in development stage – At present, SECI is operating 11 MW of projects on its own balance sheet and is in advanced stages of completing another 10 MW project for DRDO. Moreover, SECI has obtained approval for various other projects having a significant capacity, which are currently in early stages of discussion/implementation. Once the company starts progress on these projects, it would be exposed to risks related to setting up a greenfield project such as time and cost overrun risks, funding risks, etc. as well as technology-related risks. ICRA also notes that earlier SECI was in the process of setting up a 160-MW wind-solar hybrid project in Andhra Pradesh, which has been delayed.

Liquidity Position: Strong

The liquidity profile of SECI is strong as reflected by availability of surplus funds, including free cash balances and cushion available in PSF. Over and above this, SECI has encumbered cash balances for providing grants/subsidies/VGF and PGDs are earmarked separately, which ensures availability of adequate funds. Total cash balance of the company as on FY2019 and the end of H1 FY2020 was Rs. 1,674 crore and Rs. 1,502, respectively. The company also has LCs available from discoms, which can be encashed to improve liquidity. Moreover, SECI is a party to the tripartite agreement, which can be invoked by it in case of continuous delays by a state government discom. The future cash flows of the company are expected to remain adequate to meet the internal requirements and ICRA does not envisage a cash flow mismatch for it. Further, ICRA takes comfort from the fact that SECI is a 100% GoI entity and is strategic for the Government’s plan to install renewable energy capacity in the country. ICRA expects the support from the Government for SECI to be forthcoming in case of any requirement.

Rating sensitivities Positive triggers: The positive triggers would include sustainable improvement in the financial position of the PSA counterparties, i.e. state-owned distribution utilities and timeliness in their payment behaviour in a sustained manner; timely creation and availability of PSF for all the ISTS tranche-based schemes; reinstatement of PSF for the existing schemes (Phase II – Batch I, III and IV), supported by receipt of all the pending overdues in a timely manner. Negative triggers: The ratings could be downgraded in case of any delays in receipt of pending overdues beyond the next four to six months and continuation of payment delays from the counterparty discoms thereafter; any significant regulatory challenges in seeking tariff adoption for PPA and PSAs ; any material increase in the leveraging on the books of the company to fund the project requirements; and any change in promoter profile or any change in form/extent of policy support from the MNRE, GoI.

Analytical approach:

MARCH- 2020

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research & Analysis

Implementing Demand Aggregation for Rooftop Solar Systems in Micro, Small, and Medium-Sized Enterprise Clusters HIGHLIGHTS India has 63.3 million Micro, Small, and Medium-Sized Enterprises (MSMEs). Thirtyone percent of these are manufacturing units (Government of India 2018a), which account for 25 percent of the industrial sector’s energy consumption. Advancing the implementation of clean energy measures in the MSME sector can play a key role in India’s clean energy transition. We present a pilot implementation of demand aggregation of solar rooftop photovoltaic systems (SRT PV) in two MSME clusters in Naroda and Aurangabad. We estimated a total of 4 megawatt peak (MWp) of distributed SRT PV potential in Aurangabad and 1 MWp in Naroda. We demonstrated successful implementation through installation of 160 kilowatt peak (kWp) (3 percent of estimated potential). Another 441 kWp (9 percent of estimated potential) is being installed. There were four factors critical to successful implementation: provision of technical assistance, coordination with industrial associations, transparent vendor selection process, and regular follow-ups.

Setting the context for this study. An estimated 63.3 million Micro, Small, and Medium-Sized Enterprises(MSMEs) in India produce 45 percent of the national manufacturing output and contribute 28.9 percent to India’s gross domestic product (GDP) (Government of India 2018a). The MSME sector accounts for 90 percent of the total industrial sector in India. Thirty-one percent of the MSME sector comprises manufacturing industries (Government of India 2018a). The report of the Working Group on Power for Twelfth Plan (2012–2017) provides an estimate of the energy consumed by the MSME sector. According to this report, this MSME manufacturing subsector alone consumed about a quarter of the total energy consumed by the industrial sector (Government of India 2012). The industrial sector, in turn, accounted for 41.48 percent of the total electricity consumption in the country for the fiscal year 2018 (Government of India 2019). It is evident that the MSME sector will be called upon to play a key role in India’s clean energy transition. This remains a challenge as most MSMEs are individually owned and operated, and have limited capital and manpower resources. Given the inherent contradiction outlined by this scenario, demand aggregation presents a viable alternative. Demand aggregation as a potential mechanism to scale up the deployment of renewable energy in the MSME sector. In 2014, the World Resources Institute India (WRII) and the Confederation of Indian Industry (CII) attempted to demonstrate a demand aggregation model by combining renewable energy procurement for six companies in Bangalore under one bid (Thanikonda et al. 2016). This initiative made a compelling argument for demand aggregation. Currently, most industries in India procure on-site solar rooftop photovoltaic system (SRT PV) installations via individual contracts and do not harness the economies of scale. This, in effect, causes them to lose out on the substantial benefits that they would derive from collaborative procurement. While large companies are in a better position to drive clean energy and energy efficiency

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measures, MSMEs are in a relatively disadvantaged position. MSMEs lack the leverage to influence renewable energy (RE) developers, energy efficiency (EE) technology providers, and financing institutions. As a consequence, MSMEs are generally unable to procure products that are customized to their needs. Demand aggregation can help them get better terms and to participate in India’s clean energy transition. Figure ES-1 below summarizes the different stakeholders and the key activities of demand aggregation for the procurement and deployment of SRT PV systems for MSME industrial clusters in Aurangabad and Ahmedabad. This publication aims to demonstrate a pilot implementation model for demand aggregation of SRT PV projects in two MSME industrial clusters in Western India. In this publication, we set out the methodology and approach we adopted to aggregate the demand for SRT PV systems in both the MSME clusters. We also present the processes that we evolved to overcome the challenges and barriers we were confronted with during the implementation of the project. There is currently limited empirical data available to inform policy and guide practice on energy usage and demands (including renewables), within MSME clusters. Through this practice note, we aim to consolidate learning from the previous WRII 2014 project as well as to develop a model for demand aggregation implementation through on-ground insights. The key metrics we shall use to measure the success of this project are: the number and size of installations that came about as a result of our facilitation, emissions reductions achieved, and replicability of the process. We believe that this publication will be of use to other MSME industrial associations and clusters, SRT PV vendors, and practitioners, consultants, and policymakers working on clean energy transitions in the MSME sector.

APPLIED LEARNING FROM PREVIOUS WRII STUDIES AND PROJECTS. The 2014 WRII study documented the following three major learnings from its unsuccessful attempt to demonstrate the implementation of demand aggregation:

Demand aggregation implementation—is most effective in geographical or common-purpose clusters. Strength in numbers—the higher the number of individual participants in a demand aggregation project, the more favorable the terms they are able to obtain. A greater number of participants also has a direct correlation to a higher rate of success as the project is less prone to being adversely affected by participants backing out during the process. Anchor partners—these are the institutional partners who function as aggregators during the demand aggregation implementation process.

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research & Analysis They play a crucial role in connecting a third-party enabler (in this instance, WRII) with their member industries. Effective anchor partners have a strong motivation and commitment to work for the betterment of their member industries and are key for the successful implementation of a demand aggregation project.

Drawing upon these key learnings from the 2014 WRII study, our first step was to secure the involvement of the respective industrial associations—Naroda Industries Association (NIA) in Ahmedabad and Marathwada Association of Small Scale Industries and Agriculture (MASSIA) in Aurangabad—as anchor partners. We conducted multiple capacity-building workshops working with the two anchor partners and our local partners at both locations. These workshops were an important part of the process. At the initial stage, the workshops generated.

awareness and aided discussion. As the implementation process progressed, they helped build trust among the member units by demonstrating the transparent methodology adopted for the selection of solar vendors. Overall, the workshops helped us gain acceptance for demand aggregation from the member industries/units.

PROJECT PARTICIPANTS We defined the following criteria to select the MSME cluster participants for this project: size, willingness to participate in demand aggregation, demand aggregation potential, and the presence of a supportive industrial association as the anchor partner. We then narrowed our focus to 70 units from each cluster, selected on the basis of their willingness to share data and participate in the demand aggregation project. For the purpose of this study, we define the anchor partner as an aggregator for the demand aggregation and implementation process. We define the local partner as an entity that is familiar with the stakeholders in the respective clusters who would help WRII with data collection and coordination efforts on the ground. Our local partners and anchor partners for both locations are shown in Table ES-1 below.

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PRE-IMPLEMENTATION ASSESSMENT We conducted an initial assessment through data collection, along with the use of Google Maps and sample on-site visits. The results of this exercise provided us the basis to estimate the total SRT PV installation potential for the 140 participating MSME industries. We identified a total potential of approximately 5 MWp for both the locations (4 MWp for the Aurangabad MASSIA cluster and 1 MWp for the Ahmedabad NIA cluster), which is equivalent to approximately 2,700 tonnes of avoided coal consumption per year. We used an assumption of 70 percent of utilization area to derive this calculation in accordance with the Central Electricity Regulatory Commission (CERC) thumb rule that 1 kilowatt (kW) of rooftop solar installation would need an area of 10 square meters (sq m) (Government of India 2014).

POST-IMPLEMENTATION EVALUATION We evaluated the success of this demand aggregation implementation project through the following key metrics: ▪ The number and size of installations implemented. ▪ Emissions reduction. ▪ Replicability of the process.

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research & Analysis Our aim was to demonstrate that demand aggregation implementation proved to be effective in accelerating the adoption of SRT PV systems in both of the MSME clusters. We were able to identify a total potential of 5 MWp, of which 160 kWp of the SRT PV system is already installed and 441 kWp of SRT PV system is in the process of being installed. If the entire capacity is installed it could potentially result in emissions reduction of around 5,483 total carbon dioxide (tCO2) annually. In addition, implementation across two different clusters in two different states illustrates the replicability of the idea and the process. As a part of the post-implementation process, we surveyed participants comprising 19 MSME industry members. In addition, we interviewed members of the two industrial associations, two local consultants, and the two selected solar vendors drawn from both locations. Seven of the surveyed MSME industries said that the potential for cost reduction was a critical incentive for them to join the project, 11 gave significant weight to having access to expert technical support from a third-party partner (in this instance, WRII and its local partners), and 6 gave significant weight to better contractual terms, as compared to individual procurement.

CHALLENGES TO THE SUCCESSFUL IMPLEMENTATION OF DEMAND AGGREGATION AND COUNTERMEASURES Perhaps the most significant challenge we faced was the lack of data on energy consumption in the MSME units. Even in instances where data was available, it often proved to be unreliable or of poor quality. We found that most of the MSME units do not monitor their energy consumption or maintain a record as they lack both awareness and resources. We devised a workaround for this challenge by conducting field visits to sample MSMEs to assess their consumption pattern, determine the type of load installed, and evaluate the potential for on-site renewable energy interventions.

The other critical challenge that we identified was the difficult task of convincing and converting the MSME units to install a clean energy source. Demand aggregation is predicated upon the willingness of each participant in the process to engage in the process. With limited resources available to them, MSME units most often do not place a high priority on clean energy interventions. The capacitybuilding workshops we conducted for the MSME members went a long way toward overcoming this challenge and securing their acceptance of demand aggregation.

PROJECT RESULTS AND LEARNINGS Our findings based on data compiled post-installation are the following: ▪ As of July 31, 2019, 160 kWp (3 percent of the estimated potential) SRT PV systems have been installed. This will enable an approximate 0.25 million units (MUs) of clean energy generation within a year. ▪ A further 441 kWp of SRT PV systems (9 percent of the estimated potential) are in the process of being installed. This will enable an approximate 0.69 MUs of clean energy generation within a year.

Our learning from this project emphasizes two key elements that influence and impact the demand aggregation implementation at every stage—from inception to actualization. The presence of a willing and supportive anchor partner (in this instance, the respective industrial associations) proved to be crucial to the process. The anchor partner cements the credibility of the process, provides a clear point of contact to liaise with thirdparty experts/ enablers and helps both vendors and participants to negotiate and resolve any issues. At a secondary level, it provides a platform for capacity building and awareness, establishes a trust equation, and encourages adoption through peer recommendation.

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The involvement of a technical and sector expert as facilitator (in this instance, WRII) emerged as an important factor, particularly since the clean energy transition process within the MSME sector is still at a nascent stage. The participants in both clusters expressed the opinion that the skills, information, expertise, and transparency that the facilitator provided positively influenced their willingness to adopt demand aggregation. We have listed the following activities we undertook during the demand aggregation implementation process in order to define the role of a facilitator in a more objective manner:

Pre-implementation activity checklist ▪ Creating awareness, leading to the adoption of demand aggregation. ▪ Evaluating the solar potential. ▪ Facilitating the bidding process for the acquisition and installation of SRT PV systems. ▪ Evaluating and identifying the best vendor options.

Implementation-support activity checklist ▪ Finalize the generic agreement and contractual terms. ▪ Facilitate regular follow-ups from both the vendor and the association to keep the industries motivated and accelerate the installation. In conclusion, we feel that we were able to road test the findings of the 2014 WRII study/project and to establish them as valid, key elements in the successful implementation of demand aggregation. We were also able to add new learning to our previous understanding of the demand aggregation process through a successful demonstration of implementation.

ENERGY CONSUMPTION IN INDUSTRIES The commercial and industrial sectors in India combined account for 50 percent of the national electricity consumption. The increasing penetration of solar energy in these sectors represents an opportunity to reach the goal of 100 gigawatts (GW) of solar by 2022 (India’s INDC to UNFCCC 2015). Installation of SRT PV systems showed a remarkable growth of more than 70 percent over 2017 despite utility-scale installations seeing a decline of approximately 20 percent. As of June 2019, India had 29.5 GW of installed solar capacity (Government of India 2019). Solar rooftop installations in the commercial and industrial sectors grew by 72 percent during FY2018 (Sai and Rustagi 2019). This is especially encouraging given the fact that India’s solar target of 40 GW to be met by SRT PV by 2022 currently stands at 2.2 GW (NITI Aayog 2015). Currently, most industries in India procure rooftop solar systems individually, regardless of whether or not the industry is within an industrial cluster. However, recent literature highlights the benefits of aggregating demand for energy (Bird and Holt n.d.). WRII and CII also made the case for demand aggregation in 2014 (Thanikonda et al. 2016).

ENERGY CONSUMPTION IN THE CONTEXT OF MSMES An estimated 63.3 million MSMEs in India produce 45 percent of the national manufacturing output and contribute 28.9 percent to India’s GDP (Government of India 2018a). The MSME sector accounts for 90 percent of the total industrial sector in India. Thirty-one percent of the MSME sector comprises manufacturing industries (Government of India 2018a), which are responsible for 25 percent of the total energy consumed by India’s industrial sector (Biswas et al. 2018; Government of India 2012). The report of the Working Group on Power for Twelfth Plan (2012–2017) has provided an estimate of the energy consumption of the entire MSME sector. According to this report, this MSME manufacturing sub-sector alone consumed about a quarter of the total energy consumed by the industrial sector (Government of India 2012).

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research & Analysis Overall, the industrial sector in India accounted for 41.48 percent of the total electricity consumption in the country for FY2018 (Government of India 2019). The energy consumption of the MSME units was expected to reach 68.2 metric tons of oil equivalent (mtoe) by 2017 with a projected annual growth of 6 percent (Government of India 2015). According to the latest MSME census (2014–2015), approximately 32 percent of the MSMEs use electricity to meet their energy requirements. Financial institutions, bilateral and multilateral organisations such as Small Industrial Development Bank of India (SIDBI), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, and the United Nations Industrial Development Organization (UNIDO), among others, are working on cluster-level programs and pilot studies to enhance adoption and implementation of clean energy solutions across MSME clusters in India. We drew upon our experience of working with MSMEs and a review of the relevant literature (Government of India et al. 2011; Biswas et al. 2018) on clean energy uptake in MSME clusters to understand the multiple elements that influence the uptake of clean energy in MSMEs. We found the following: Capacity building emerges as an essential tool to raise awareness and encourage the transition to renewable energy within the MSME sector. Most of the industries are understaffed and their focus tends to be centred on the process of production and marketing. They require additional support in terms of access to technical knowhow, recent innovations, and best practices for the implementation of clean energy solutions. MSMEs are ill-informed and, at times, wholly unaware of various financial schemes/subsidies/models available with specialized financial institutions, banks, and government bodies. There is a high level of uncertainty on data availability and the accuracy of data on energy consumption and energy saving potential in MSMEs in India since there is no comprehensive, reliable source of energy consumption data for the 6,000 estimated MSME clusters in the country (Biswas et al. 2018).

THE SIGNIFICANCE OF DEMAND AGGREGATION IN MSMES It is an established fact that companies with a large electricity requirement get better contractual terms, such as better price and before-and-after service guarantee, on renewable energy purchase agreements (> 1 MWp) as compared to smaller players (Mahindra World City 2017). Aggregation of demand allows demand from multiple smaller enterprises to be clubbed together and plays an essential role in scaling up the deployment of renewable energy among smaller companies (Deloitte Center for Energy Solutions 2017). In this publication we present our experience with the implementation of demand aggregation for SRT PV systems in two MSME clusters located in Aurangabad and Ahmedabad. These clusters were selected based on the following carefully defined criteria: ▪ size of the cluster. ▪ willingness of the respective industries to participate in demand aggregation. ▪ demand aggregation potential. ▪ the presence of an anchor partner such as an industrial association. Our first location, Aurangabad, is in the state of Maharashtra, India. There are four industrial clusters in this district—Chikalthana Maharashtra Industrial Development Corporation (MIDC) area, Shendra MIDC area, Railway Station MIDC, and Waluj MIDC area. Of the four clusters, we worked with the MASSIA cluster, comprising 1,500 units and spread over two locations: Chikalthana MIDC and Waluj MIDC. Electricity and light diesel oil are the primary fuels used in the MASSIA cluster. The industries within this cluster are largely automobile components manufacturing and light engineering units. There were no reliable sources to enable us to ascertain the total energy consumption data for this cluster.

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Our second location, Ahmedabad, is the state of Gujarat, India. There are twelve industrial clusters in this district— Apparel Park, Vatva Industrial Estate, Kathwada Industrial Estate, Odhav Industrial Estate, Kerala Industrial Estate, Dholka Industrial Estate, Viramgam Industrial Estate, Dhandhuka Industrial Estate, Zone D Ahmedabad Industrial Estate, Vani-Viramgam Industrial Estate, Sanand Mini-industrial Estate, and Naroda Industrial Estate. We selected the Naroda Industrial Estate (NIE) for this project. NIE has approximately 700 chemical manufacturing MSMEs. These units are spread over three industrial areas— Vatva, Odhav, and Naroda. The Naroda cluster comprises 200 chemical manufacturing MSME units. The primary fuels used in this cluster are natural gas, light diesel oil, furnace oil, white coke, briquettes, coal, wood, and electricity. According to data collected under the BEE_SME Program, the total energy consumption in this cluster during 2010–2011 was 262,481 tons of oil equivalent (toe) (Government of India et al. 2011).

OBJECTIVES OF THE DEMAND AGGREGATION PROJECT Our objectives for this project were: to pilot and develop a model for demonstration of demand aggregation and implementation for the installation of SRT PV systems in both MSME clusters, to define an objective process template and workflow, and to document the project as a case study to disseminate the learning from this exercise.

APPROACH AND METHODOLOGY KEY ACTIVITIES IN THE DEMAND AGGREGATION IMPLEMENTATION PROCESS In this section, we sequence the following: ▪ The demand aggregation implementation process through the workflow for each of the three actors: technical expert/facilitator, anchor partner/aggregator, and local partner/consultant. ▪ Activities for the technical expert/facilitator who enables and directs the overall process (in this instance, WRII) through... ▪ engaging with the respective industrial associations to get them on board as anchor partners. ▪ organizing capacity-building workshops and stakeholder consultations. ▪ collecting and analyzing data. ▪ identifying and engaging with vendors. ▪ conducting a competitive procurement process and assisting in the finalization of the solar vendor. ▪ Activities for the aggregator/anchor partner (in this instance, NIA and MASSIA, respectively) who drives and coordinates the implementation process by... ▪ sending association staff with a local partner representative to liaise with industry members; ▪ encouraging industry members to accept and adopt demand aggregation through capacity-building workshops; ▪ being actively involved in the finalization of a solar vendor.

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research & Analysis Two MSME Industrial Clusters in India Selected for Demand Aggregation of SRT PV Projects

▪ Activities for the local partner/consultant—an entity familiar with the stakeholders in the respective clusters who would help WRII with data collection and coordination efforts on ground (in this instance, GCPC and EEMS, respectively). The sequence of key activities for the demand aggregation implementation process is illustrated in Figure. The methodology we followed was divided into the following two parts: ▪ Our pre-implementation process focused on the collection of primary data to develop a baseline and interviews with industries to assess their knowledge of clean energy interventions. Very few solar installations were observed during the baseline study period, and these systems were primarily implemented through individual transactions. We gathered that the general understanding among the MSME units, with regard to solar technology, solar policy, and availability of financial support from different institutions, was limited as well. ▪ Our post-implementation process focused on gathering information on the challenges faced during implementation and the barriers confronting the industrial associations, industries, and solar vendors.

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PROJECT KICKOFF We launched the project in Ahmedabad in December 2017 with a workshop at the NIA office. We held a similar kickoff workshop at the MASSIA office in Aurangabad in October 2018 (Figure 3). The launch workshops focused on meeting industries and explaining the project with a view to winning their trust that data confidentiality would be maintained. We committed to assisting in the reduction of greenhouse gas (GHG) emissions in each cluster and facilitating clean energy interventions. We also organized capacity-building workshops on clean energy for the member industry owners to create an awareness about SRT PV systems, energy efficiency, and ways to reduce GHG emissions.

Data Collection and Analysis We conducted the primary data collection exercise with the support of local partners in both clusters. The local partner at each location was familiar with the industrial association and its member units. We selected the local partners based on their prior experience with industrial clusters, team strength, and inclination for sustainability work.

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research & Analysis Local Partners in the Demand Aggregation Implementation Process

We worked with the local partners to establish connections with individual industries, create awareness about the program, compile contact details, and collect data. The format (Appendix I) we used for primary data collection was designed to automatically calculate the GHG emissions once the required data was entered. We collected specific data on electricity consumption, fossil fuel consumption,

connected load, solar rooftop potential, operational hours, and equipment to help us develop a baseline. At this stage, we collected data through interviews and meetings with individual industry owners. Based on an analysis of the data we obtained, we were able to estimate the GHG emission reduction percentage and the SRT PV potential for sample individual industries in each cluster, which we then extrapolated onto the entire cluster. We observed, during the data collection process, that in the Aurangaba MASSIA cluster, electricity was the major source of energy for industries. Liquefied petroleum gas (LPG) and furnace oil were the secondary sources of fuel used by a few of the industries in the manufacturing process. In the Ahmedabad NIA cluster, natural gas was the major source of energy for industries, followed by light diesel oil, furnace oil, white coke, briquettes, coal, and wood. Electricity was the secondary energy source for this cluster. In both clusters, most of the industries were connected at the low tension (LT) supply point of the distribution companyâ&#x20AC;&#x201D;i.e., at 415 volts (V). The industries with high tension (HT) supply were mainly the mediumscale industries and a few small-scale industries that were engaged in die casting and used furnaces in the process. A graphic illustrating the distribution of industries in both the industrial clusters is shown below. Sixty percent of the industries we evaluated in both locations were under 100 kilo-volt-ampere (kVA) contract demand. Heavy engineering industries, which are also medium-scale industries, had more than 100 kVA as contract demand. On an average, the tariff paid by industries in Naroda was Rs.6.8/kWh (including fixed and variable charges) and the corresponding figure in Aurangabad was Rs.7/kWh.

RFP and Vendor Selection We set up a small working group, comprising two to three industries and senior industrial association committee members, at each of the locations. The objective of this working group was to maintain transparency and confidence in the process of selecting vendors for SRT PV systems. We developed the technical specifications for SRT PV systems, following the MNRE guidelines (Government of India 2013), for inclusion in the request for proposal (RFP) from solar vendors. The vendors were presented with a consolidated demand from 70 units in each cluster,

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Workshops and Stakeholder Consultancies in Naroda (left) and Aurangabad (right)

for SRT PV systems of 4 MWp in Aurangabad and 1 MWp in Ahmedabad. The potential for SRT PV systems was relatively less in Naroda as most of the industries have old roofs or the industry process under the roof is corrosive in nature. Technical and financial offers were invited from different solar PV vendors through a limited tendering process. The purpose of the limited tendering was to improve the quality of the bids received, to engage with local suppliers for better support postinstallation, and to ensure that contractors with the necessary experience and competence are given an opportunity to submit bids. The primary filtering criteria for the evaluation of vendors were technology offerings; panel and inverter efficiencies; installation and response-time warranties; additional offerings, if any; and, importantly, annual recurring cost in terms of maintenance. The secondary filtering criteria were based on economic offering, rate of return, and financial cash flow analysis for the lifetime of the project (25 years), which we conducted along with the local partner. We calculated ROI (return on investment) and IRR (internalrate of return) based on the assumption that the SRT PV system is connected to the grid with a net metering system. We then assisted in finalizing a solar vendor through three stakeholder consultations over a period of three months.

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research & Analysis RESULTS AND FINDINGS ECONOMIC ANALYSIS We were able to demonstrate a successful implementation of demand aggregation most directly through a reduced cost for SRT PV systems in both locations. The price finalized through our demand aggregation project

was Rs.33,000/ kW ($460/kW) for the MASSIA cluster and Rs.39,000 ($543/kWh) for the NIA cluster. This price was inclusive of panel cost, balance of material cost, and installation cost.

Categorization of Industries Based on Their Size

We assessed that cost was brought down by 10 percent for the NIA MSME cluster and by 15 percent for the MASSIA MSME cluster, when compared with the CERC benchmark rate for large SRT PV projects (CERC 2017). We worked out the simple payback period to an average of approximately 48 months at the prevailing tariff rates and the depreciation benefits1 on SRT PV systems to individual industries. Figure 5 shows the cash flow comparison between a demand aggregation scenario and a scenario where demand aggregation is absent. Cash flow is seen to be positive from the fourth year with demand aggregation; while without demand aggregation, cash flow would have been positive only from the fifth year onward.

GHG EMISSIONS ANALYSIS We estimate that the annual electricity generation from these installations implemented through this project could amount to 6.86 GWh, which, in turn, could avoid current scope 2 emissions (GHG emissions from electricity use) to the tune of around 5,483 tCO2 annually. The GHG emissions are estimated based on the India GHG protocol tool, considering the reduction in electrical grid consumption (WRI et al. 2018). Extrapolating these figures to all MSME manufacturing units in the two clusters, we were able to arrive at a theoretical combined estimate of around 75 MW for both clusters.

IMPLEMENTATION AND INSTALLATION POTENTIAL After the vendors were finalized in both locations, we conducted feasibility assessments to estimate the actual capacity of the installations and adapt the generic agreement to the specific requirements of each industry. We were only able to conduct a feasibility study for those industries that expressed clear interest and wanted to move forward with the project. The total potential for installations in both sites for the early adopters was 2.49 MW, across 41 units at both locations. A few early movers were interested the availing of tax benefits for installing rooftop solar panels. We decided to move ahead with the early movers with the expectation that the installation capacity will potentially increase as more industries join the demand aggregation implementation project. Of the total potential, 160 kWp has been installed and 441 kWp is in the process of being installed across both locations (Figure 7). An additional 874 kWp is in the combined pipeline for installation in both locations. Figure 6 depicts the distribution of the projects according to the updated status as of July 2019.

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REFLECTIONS AND LEARNING STAKEHOLDERS’ FEEDBACK We proceeded to conduct surveys and interviews after the finalization of a solar vendor in each cluster and the commencement of the installation of SRT PV systems. The respondents to this survey comprised 19 MSME industries; the interviews were conducted with both the anchor partners (industrial associations), the two selected vendors, and the two local partners. Our objective was to receive feedback from the project stakeholders and understand the factors that enabled or hindered finalization of the procurement process and the implementation of the installations. For the industrial associations, local partners, and vendors, all the interviews we conducted were on a one-on-one basis. For the individual industries, we conducted a few one-on-one interviews, distributed a survey questionnaire during group meetings, and circulated an online form to capture the industries’ experiences. We interviewed 19 industries, selected randomly, post-implementation. Fourteen of these 19 industries had participated in the demand aggregation project and of these 7 had finalized a deal with the respective vendors (2 in Naroda and 5 in Aurangabad).

Industrial Associations The feedback we received from the NIA and MASSIA clusters offered several key, common inputs. Both industry representatives and members of the associations agreed that having support from a technical expert/facilitator (WRII, in this project) and from a local consultant was crucial for helping them evaluate the proposals and move the project forward. The representatives of both associations particularly emphasized this point as they had previously attempted to incentivize the adoption of SRT PV systems but failed to move to an implementation process despite holding seminars and/or workshops. They all felt quite strongly that WRII’s facilitation during this demand aggregation implementation project was instrumental in accelerating the adoption of demand aggregation and that this involvement added to the credibility of the respective associations and vendors. Another common input we received was that

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research & Analysis the commencement of SRT PV systemsâ&#x20AC;&#x2122; installation at a few of the MSMEs served to establish trust among other industries. The respondents explained that this was useful to demonstrate that there were no conflicts of interest and that the negotiated terms were beneficial for all the association members. Industry representatives from both clusters also felt that scaling the installation of SRT PV systems would require a demonstration, such as that provided by our project, to bring about an understanding that engaging in renewable energy procurement is

possible for MSMEs and not reserved for larger companies. Divergent inputs consisted of location-specific elements for each cluster. For instance, in the cluster at Naroda, some of the industries emit highly corrosive fumes as part of their processes. This had to be taken into consideration to avoid damage to or malfunction of the solar panels. In the instance of the Aurangabad cluster, the minimum size of the inverter was considered as 25 kW, while in Naroda, the minimum size was 10 kW.

Cash Flow Analysis Study of 30 kW System with and without Demand Aggregation

Combined Status of the Projects as of July 2019

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research & Analysis Site Photo of Industry in Aurangabad with 50 kW Rooftop Solar PV System

Industries/Units

in the identified vendors. On the flip side, the industry feedback revealed renewable energy procurement is not viewed as a priority by MSMEs. Some industries had the financial capacity to pay the system up front, but they preferred to invest those resources in equipment directly related to their core business. In other cases, they simply did not have the time or ability to assess the final detailed proposal they received from a vendor. In Aurangabad, some industries faced financial constraints as they were preparing for expansion. They had cash flow limitations or were unable to take on additional debt. Several interviewees mentioned the lack of support from financial institutions. They expressed the opinion that the absence of attractive schemes specifically tailored to solar installations posed a considerable barrier to accelerating the adoption of renewable energy in the sector. Some initiatives that could help MSMEs are: creation of low-cost debt facilities, innovative financing mechanisms that help in risk mitigation, and construction of a new and useful paradigm when it comes to collateral requirements. As depicted in Figure 8, cost is a primary factor when considering solar—either a tariff increase or cost reduction, as mentioned by those who ranked “other” as their highest priority. This category/option includes the depreciation tax benefit, peer-to-peer learning effect, and availability of finances for a capex model. In terms of their objectives to join the demand aggregation project, some participants chose multiple objectives. As depicted in Figure 9, most of them decided to join the demand aggregation project because WRII was providing technical support; the second top reason was cost reductions.

Participant industries in both clusters told us that the involvement of the respective industrial association was a key factor, given the credibility and ability of the association to negotiate with the vendor on behalf of its member units. They felt that all the members were encouraged by the demonstration that the process for vendor selection was transparent and there were no conflicts of interest. Thus, the members were more inclined to join the effort without the need to reassess the financial proposals or renegotiate. Getting a lower price—between 10 percent less for NIA members and 15 percent for MASSIA member industries (as compared to the CERC price that the vendor offered)— as a direct consequence of aggregation, was a key factor for many industries to get on board with the project. They felt that the technical assistance provided by WRII saved them time and boosted their confidence

At both the cluster locations, most of the MSMEs were ready for a capex model. This is typically a model in which the industry/consumer makes the entire investment for the installation of SRT PV systems. The MSMEs we engaged with were actually self-sufficient in terms of investing in SRT PV systems provided: the payback period is less than four to five years; the risk associated with new technology or installation is negligible; and terms and conditions are transparent and clear. Not all MSMEs fall into this bracket. A case in point was the instance of a few MSME units that were interested in solar installation but short on funds and found it difficult to meet bank requirements for collateral. These units tend to expect government subsidies, prefer to learn from peer experience, and, therefore, take longer to

Vendors The vendor responses highlighted the benefits of having the industrial associations involved in demand aggregation and the implementation process since it allowed both the vendors and the buyers to have a clear point of contact. Vendors also felt that their marketing efforts were reduced as the association plays a vital role in convincing its members and disseminating information. The respondents’ feedback on the demand aggregation project was essentially that it helped them to reduce costs and save time and resources as compared to individual customer acquisition efforts. Demand aggregation also continues to offer a perceived advantage to the vendors by increasing the demand for and the sale of SRT PV systems in the long run.

Local Partners (GCPC and EEMS) Local partners in both clusters felt that gaining access to accurate information on industrial energy consumption, process, and electricity rates was a critical constraint given the hesitation among industries to share their energy data with a relative newcomer (WRII). Our local partners in both clusters observed that their continuous interaction with the various member units, coupled with the support of the anchor partners, helped overcome the barriers in collecting information and data.

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INSIGHTS AND CONCLUSIONS

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research & Analysis finalize the project. Overall, as the resources and finances are inherently limited in the MSME sector and business is highly dependent on market dynamics, it takes more time to convince MSMEs to adopt new technology. However, this is counterbalanced by the fact that these industries are typically run by one or two associates/owners who are the only decision-makers as compared to the more complex and lengthier decision-making process in large industries. In the Aurangabad cluster, the pace of the project was relatively faster as there were a few MSMEs that were actively interested in the availing of tax benefits through SRT PV installation. The demand aggregation process and workshops significantly improved the capacity of industrial associations on technology know-how related to SRT PV systems, understanding of financial models, and clarity about solar policy. MSMEs in both the cluster locations face problems in finding and employing skilled labor. Vendors have undertaken to clean the solar panels and monitor the SRT PV systems as part of the proposal, for a

limited period and at no additional cost. Based on our experience and observations during this project, we feel it would be worthwhile for both industrial clusters to consider aggregating their entire operation and maintenance requirements for SRT PV installations. Apart from ensuring better plant performance, this approach will also most certainly provide economies of scale in operations and maintenance to the SRT PV system owners. The following factors are critical to the successful implementation of the demand aggregation for solar PV systems project: ▪ Providing technical assistance ▪ Securing the support of and working closely with the industry association ▪ Transparent vendor selection process ▪ Presence of a local partner

Responses from Survey on Individual Motivations to Procure Solar Regardless of Demand Aggregation

Responses from Survey on Motivations to Join the Demand Aggregation Project

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research & Analysis There were a few operational challenges to project implementation. Structural issues in the Ahmedabad NIA cluster presented us with a challenge that we were unable to overcome. Roof-related constraints were a common challenge present in many industries in the Ahmedabad NIA cluster. Cement and asbestos sheet roofs are not suitable for solar installations. Most of the industries in the NIA cluster have these roofs due to the types of chemicals they use and the corrosive fumes produced as part of the dyeing processes. Other infrastructure-related limitations were roof-space availability, orientation, and shade. Any of these limitations—either singly or in combination with others— affect the potential size and attractiveness of the projects. Hence the lower potential and actual installed capacity in the Ahmedabad NIA cluster. Although such structural issues were also present in some industries in Aurangabad’s MASSIA cluster, financial constraints were the main challenges in this cluster. In addition, subsidies for electricity costs distort market signals. This, in effect, means industries need to install larger systems to take advantage of net metering policies. Regulations around net metering and subsidies also present a challenging conflict for some MSMEs in the MASSIA cluster as engaging in net metering implies forgoing their current electricity subsidy. Considering a longer-term scenario, adopting net metering in Aurangabad’s MASSIA

cluster is viable only if the installed capacity is equivalent to at least 50 percent of the load of the consumer. Hence, some industries tend to use the system solely for internalconsumption and lose potential gains from selling excess generation. Weighing the principal challenges faced by the NIA and MASSIA clusters, we concluded that addressing the structural problems is the harder challenge. Alternative solutions like replacing the rooftop are cost-intensive and would not be a priority for these MSMEs. Hence, a framework that also prioritizes on-site ground installations compared to a narrow focus on rooftop solar could help such industries overcome structural problems. In conclusion, structural planning that provides for future installation could promote the adoption and implementation of SRT PV systems via subsequent demand aggregation initiatives following the model of this pilot project. We believe that we have been able to successfully demonstrate a demand aggregation implementation model and have stayed true to our stated goal for this project. Through this practice note, we have also been able to capture and document our processes and learning on aggregating demand for MSME clusters. Efforts focused on the end-user demand side, especially in the case of energyintensive consumers, can support and multiply the benefits of the supply-side efforts of the Indian government. To conclude, we believe that sustained efforts such as these can contribute to the ambitious drive to scale clean energy adoption and accelerate the transformation to a low-carbon economy.

2020 to see a big jump in solar PV installations

Asia-Pacific markets will install 73 GW in 2020. Global solar PV installations finally crossed the 100 GW threshold in 2019, ending the year at 106 GW, an increase of 8.9%. By the end of the year, cumulative installed capacity will have reached 607 GW.

020 will see a big jump to 130.5 GW of installations. China, the U.S. and India will continue to lead the world in annual PV installations, installing 71.3 GW between the three countries, over 54% of annual demand.

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Demand to rebound in 2020; China & North America stabilize while others grow. Global installation demand will stabilize around 130 GW per annum from 2020 to 2024. Slowdowns in most major PV markets will be met with rising demand from emerging markets, substantially diversifying the global market. The 23 expected GW-scale markets in 2024 will deliver over 107 GW of the total 131 GW expected. Source: woodmac

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research & Analysis

IEEFA India: Policy certainty and stability sought to increase renewable energy development and investment Removal of solar trade duties, discom reform, and better central-state government coordination to increase renewable project development and transmission capacity urgently needed. 13 February 2020 (IEEFA India): Policy certainty will increase domestic and international investing into India finds a new report out by the Institute for Energy Economics and Financial Analysis (IEEFA).

he new report India’s Renewable Energy Policy Headwinds – Recommendations for Urgently Accelerating Activity in the Renewable Energy Sector finds a number of recent policy positions have undermined growth in India’s renewable energy sector.

India is one of the world’s largest and fastest growing markets for renewable energy and power transmission, says report author and IEEFA’s Director of Energy Finance Studies Tim Buckley. “Domestic renewable energy tariffs are now two thirds the cost of domestic coal-sourced power tariffs and half that of new imported thermal power costs. “India must be very proud of this result, and they must leverage this opportunity to enhance energy security whilst securing deflationary domestic energy investments. “The opportunity cost of delaying India’s electricity sector transition is too high. “With a few policy tweaks, India could be back on track to meet its’ ambitious target of 450 gigawatts of renewables by 2030.” The IEEFA report identifies a number of policies currently stifling growth in renewable energy in India. They include the imposition of the solar cell and module trade duty in 2017, which the government is now looking to extend beyond 2020. The duty has neither reduced imports nor significantly improved the competitiveness of Indian manufactured solar cells. Instead, it has severely slowed down solar installs in India, both because of the extra cost imposed but equally due to the confusion on delayed implementation.

The uncertainty of this trade duty has been one of the most serious impediments to India’s renewable energy momentum, says co-author Kashish Shah, IEEFA’s energy finance analyst. “Instead of trying to make Indian manufactured solar cells competitive by increasing the price of imported modules, the industry needs an assured offtake in domestic markets, as was achieved in the recent, very successful solar manufacturing tender. It also needs to be incentivised for exporting.” 52

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Better centre-state coordination on renewable energy development and increasing the expansion of necessary transmission networks and balancing capacity (batteries, pumped hydro storage, demand response management and more flexible thermal capacity) are further policy areas requiring immediate attention. “Renewable energy developers are currently experiencing delays and cost overruns while waiting for the central and state governments to talk to each other and streamline their activities. This is jeopardising their project economics and stalling further investment,” says Shah. The report finds a key prerequisite for continuing India’s renewable energy investment ambition is concurrently building out and modernising India’s national transmission grid to accelerate the enormous progress achieved over the last decade. “India could attract US$500 to 700bn in new investment by 2030 – the opportunity is huge,” says Buckley. “To do this, India’s grid must be urgently expanded. The slow-down in transmission capacity is slowing India’s renewable energy ambition. “And the continuing ballooning underfunding of subsidies and rising state-discom debt is severely hampering the financial industry’s ability to finance new renewable energy development, as is some state’s desire to renegotiate on projects. This is not on – and creates instability for investors.” The report concludes that sovereign risk, policy risks and erratic discom payments are all creating unnecessary financial constraints for the Indian renewable energy sector. “US$40-60bn of non-performing assets in the thermal power generation sector has combined with discom payment delays to impair various financial institutions’ ability to lend to the renewable sector at a time when investment is needed,” says Buckley. “It is extremely important to reshape policies hindering transmission capacity building and renewable project development while freeing up liquidity in the domestic banking system as soon as possible to keep India’s renewable energy ambition on track.”

Source : ieefa

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research & Analysis

Off-grid solar improves lives, here’s why it still plays a big role in India

The last decade has been a significant one for India’s electricity sector – with several policies and initiatives dramatically increasing the country’s electrification rate to nearly 100%. Yet, despite this impressive progress, new research shows that small scale solar, such as solar lanterns and home systems, still has a transformative role to play in the country’s future.

he study surveyed 949 off-grid solar households across South Asia, primarily including rural customers from the Indian states of Assam and Uttar Pradesh. It found that 94% of people felt that they had improved quality of life since purchasing their solar home system (SHS). Families reported that the SHS allowed their children to study more (in the evening) and led to better health by replacing harmful lighting sources such as kerosene lamps. 90% of households also reported feeling safer thanks to their solar home system. A number of households were also using their SHS for enterprise, leading to increased income. 12% of customers reported being able to undertake more economic activity, while the increased time available for work – due to more light/work hours and better connectivity – is equal to 4 full-time equivalent jobs being created for every 100 systems sold. 1 in 10 households said they can generate an additional income of $66 per month on average, thanks to their solar home system.

As a complement to grid electrification, small scale solar has a powerful role to play. Significantly, while previous research has focused largely on people for whom the SHS represents their household’s first access to modern electricity, 61% of households in the South Asia study are using their system as a backup to the main grid. This highlights how big impacts benefits are still seen when SHS are providing complimentary energy security in areas of weak or unreliable grid. These learnings provide clear and relevant insights for decision-makers in India and other countries with rapidly expanding grid access. Clean, affordable electricity access is one of the most important issues of our time and the off-grid solar industry is poised to make a significant contribution in this regard. Globally, around 280 million people have already benefitted from small scale solar technology, with over 950,000 products being sold in India in the first half of 2019 alone. In the coming decade, the industry is anticipated to play an even larger role – with increased size of systems, rising consumer aspirations and maturity of the industry in knowing and understanding its consumers well.

With small scale solar products continuing to boost welfare and larger, innovative appliances, including solar water pumps and refrigeration, now entering the market, the best is yet to come for the off-grid solar industry – and consumers will be the biggest beneficiaries. At GOGLA, we hope to work with governments and all other stakeholders to help the industry reach its true potential to further benefit the customers that it has been diligently serving for the past decade! Source: gogla.org

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research & Analysis

Solar home system improving quality of life in Southeast Asian countries : Report

A majority of households surveyed in South Asian countries, including India, said the solar home system has helped in improving their quality of life, according to a report by industry body GOGLA.

HS is a stand-alone photovoltaic system, which offers a cost-effective mode of supply of power for lighting and appliances to remote off-grid households. Established in 2012, GOGLA is a global association for the off-grid solar energy industry. The report surveyed 949 households in South Asia, mostly in rural India, on solar home system (SHS).

“94 per cent of households report their quality of life has improved since purchasing SHS,” the association for off-grid solar energy industry said in its latest report. While 90 per cent households said they feel safer with off-grid solar SHS, 11 per cent conceded that usage of SHS help generate additional income, as per the report titled ‘Powering Opportunities in South Asia research’ said. About 66 per cent respondents said children have now more time to do their homework. “SHS help households to undertake more economic activities as well as generate additional income of up to USD 66 a month and overall this additional work leads to job creation,” it said.

About 61 per cent of those surveyed reported the grid as their main source of light and 62 per cent said that SHS is their secondary source of power. Not just for off-grid customers, the solar home systems bring improvements in quality of life for on-grid customers as well. For enterprise, reliable solar light and power is leading to greater income and increased productivity, GOGLA South Asia Representative Viraj Gada said.

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“As the world is running out of time to reach the Sustainable Development Goals (SDGs), off-grid solar is emerging as a power tool for change. Through technology and business innovation, our industry is working hard to develop products and services that bring light and energy services to energy poor households. “Every day, we see the positive impact that solar home systems have, and the ways in which they are providing customers with new opportunities to generate income, unlock more working hours and create jobs,” he said. In the global off-grid solar sector, the report said, the investment has grown considerably to over USD 350 million in 2018 from USD 21 million in 2012. In India, GOGLA said, “the growth has been driven primarily by the consistent popularity of solar lantern sales, whilst in neighbouring Bangladesh the bedrock of the market lies in solar Home Systems (SHS) sold through the IDCOL programme. Notably, in more recent years, sales of SHS have also strengthened in India and Pakistan as customers seek larger products and services”.

Source: PTI

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research & Analysis

FORESIGHT 20/20: GLOBAL SOLAR PV A decade of emerging markets and new routes to market In the Foresight 20/20 series Wood Mackenzie’s analysts outline what the next decade will bring for their technologies and markets. One of the few certainties of the Energy Transition is that its advance will not be a straight-line. This series aims to highlight the underlying trends that will shape the coming decade and the gamechangers and risks that could, if they materialize, move the market. But before we move ahead, let us look back.

Defining a decade: When solar PV went global For solar PV, the last ten years have been characterised by exponential growth. Worldwide, there have been more megawatts of PV installed than any other power generation technology except coal. Cumulative installations have now surpassed 600 GWdc, from around 20 GWdc at the end of 2009. The final year of the decade saw the industry reach a significant milestone, with over 100 GWdc installed during a single year for the first time. The 2010s also saw a drastic change in the composition of the global PV market. In 2009 Germany accounted for 52% of global installations and was the only country to install more than 1 GWdc during the year. Fast forward to 2019, and 16 countries across all major regions installed more than a gigawatt. This was also the decade that saw China become the dominant force in PV, both up- and downstream. In 2009, China accounted for 2% of global installations. Just eight years later, it claimed more than half of the market. The decade saw an ever-shifting landscape of policy measures designed to bring investment into the sector. Regardless of the approach, a continuous theme has been solar outperforming policy makers’ expectations.

The technology has been a victim of its own success: throughout the 2010s, subsidy programs were introduced in myriad countries, at the same time as cost reductions were gathering pace. With generous returns on offer, investors rushed to deliver PV projects and governments struggled to keep a lid on the pace of growth. As an inevitable consequence, incentives were drastically curtailed or removed altogether, and markets contracted as quickly as they had emerged. The boom and bust of that period has largely come to an end, with the latter years of the decade seeing a comprehensive shift away from Feed-in Tariffs (FITs) towards competitive auctions. These offered policy makers a more effective tool to control deployment rates, and a way to procure increasingly low-cost power. As PV costs fell and competition intensified, a continuous cycle of record-breaking low auction tariffs were announced. Auctions in several countries have now seen contracts awarded at below US$20/ MWh – solar PV now offers the world’s cheapest power generation. That solar PV projects are now being developed without any kind of government support is indicative of the progress the industry has made over the last ten years. ‘PPAs’ (Power Purchase Agreements), ‘merchant investments’ and ‘price cannibalisation’ are the new buzzwords in the industry.

Annual global solar PV installations and China market share

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research & Analysis Future focused: Emerging market opportunities and power price risks The next decade is set to deliver more of the same for solar PV. Costs will continue to fall, though more slowly than before as the industry shifts from an eagle-eyed focus on capex towards reducing levelized costs; and the diversification of the market will continue at pace. Emerging markets will come of age. In the next five years, ountries from Saudi Arabia to Pakistan to Malaysia will join the gigawatt club. Outside of the OECD, there are auctions planned in 44 countries, and a project pipeline of 180 GWdc in almost 120 countries. Managing the risks associated with doing business in emerging power markets will be a key challenge for investors to negotiate. Chief amongst these will be the risk of weak offtaker finances leading to PPA renegotiations (as in South Africa and India); or rockbottom auction prices (mostly in Gulf Cooperation Council countries) setting unrealistically-low price expectations from governments in more challenging markets.

In developed power markets, more and more projects will be built outside of government support schemes, exposing investors to wholesale power price fluctuations. This will bring with it the risk of ‘cannibalization’ to captured power prices (or the ‘duck curve’) and its potential to erode IRRs. As within-day price spreads widen, and energy storage costs come down, using solar PV and battery-paired systems to shift power to peak price periods will look more attractive. Increased power price risk will also mean a change in the competitive landscape.

Emerging markets also offer opportunities beyond traditional grid-connected plants. Offgrid solar PV-based installations for those currently without power supply, or where the service from existing suppliers is inadequate will offer a different opportunity set, particularly in Sub-Saharan Africa. ESG concerns and the high cost of oil-based power is also leading to companies in extractive industries such as mining to look to PV-based systems as a cleaner – and in many cases cheaper – alternative. Hybrid solar PV systems will be the solution of choice for an increasing number of applications. Pairing PV with ever-cheaper batteries can offer firm zero-carbon power; whilst pairing with existing fossil fuel generators can reduce the carbon intensity of power supply. Other innovative systems such as ‘floatovoltaics’ and ‘agrivoltaics’ will also allow investors in solar PV to compete for a wider array of opportunities than ever before.

Power trading and PPA origination capabilities – typically the preserve of the larger utilities – will become more important. Smaller IPPs could be forced to focus purely on early-stage development and the sale of shovel-ready or operational projects as a result. The market will become more consolidated as larger players buy-up riskier portfolios. New entrants such as the oil and gas Majors will be keeping a close eye on market developments – their trading expertise and risk appetite should leave them wellplaced to succeed.

Growth gamechangers: Investments in grid infrastructure, short-term policy incentives and COP26 While the coming decade undoubtedly looks rosy for solar PV, actions by policy makers could pave the way for even stronger growth. New companies are queuing to enter the market; the pipeline of development projects is growing by the day; and there’s plenty of low-cost finance available. But investors are held back by two key things: a lack of investment in grid infrastructure, and insufficient clarity on supportive policy and regulation. When the fundamentals of investing in solar PV make sense without subsidy, markets can and should grow quickly. But decades of under-investment in grids and burdensome connection processes are putting the brakes on markets around the world.

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Large pipelines of projects are sitting undeveloped or in grid connection queues. Investment will also be required to increase the resiliency of grids to cope with variable renewable power supply. Well-developed and interconnected grids should be able to cope with reasonably high levels of penetration today. In emerging markets or islanded grids, however, managing even low levels of renewable penetration represents a challenge. To realize the levels of investment in solar PV, wind and energy storage needed to decarbonize power markets, policy makers will need to prioritize the build-out of both transmission and distribution networks.

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research & Analysis Policy makers are not short of ambition when it comes to the decarbonization of power markets. However, the translation of long-term targets into specific and consistent policy incentives is severely lacking. In Italy, for example, the government is targeting 30 GW of additional solar PV by 2030, but it has designed an auction that puts solar PV at a significant disadvantage to onshore wind. Other countries have launched one-off auction rounds without providing the industry with clarity around if, or when, further awards will take place.

On a more positive note, global efforts towards decarbonization could soon herald a rapid acceleration in the pace of investment in solar PV. November 2020 will see the UNFCCC’s 26th Conference of Parties (COP) held in the UK. This will be the most important COP since Paris in 2015, with signatories being urged to ‘ratchet-up’ the level of ambition in their Nationally Determined Contributions. Economy-wide net zero emissions targets will be on the agenda. A positive outcome from the talks will invariably lead to more action from financial institutions and investors to redirect capital towards zero-carbon energy. In turn, some of the world’s largest energy companies, that have so far – at best – begun to dabble in solar PV markets, may double-down on their commitments. This could be transformative for the sector.

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Such short-termism prevents the development of self-sustaining and mature PV markets. Time and again its been proven that if governments around the world put in place the frameworks to provide investors with certainty, the money will follow. In many countries this will be through the introduction of a long-term pipeline of auctions; in others it may be a case of loosening the constraints on where PV projects can be sited and streamlining planning processes.

Gray swan risks: Overly-aggressive auction bidding activity could cause problems down the line Unsustainable bidding activity could slow the development of emerging markets. The growing number of sub-US$20/MWh auction contracts awarded to solar PV projects around the world is largely seen as a success story, demonstrating the technology’s new-found competitiveness. But in some cases, it’s hard to see how the economics will translate into acceptable returns for investors. Assumptions around post-contract merchant revenue can make-or-break project economics. And it will be a long time before we know if some of these bets are going to pay off. But extremely low bid prices threaten to drive away companies with deep pockets but higher return expectations. Do we need to see solar bid prices go up for the long-term sustainability of the market? The risk presented by PV waste is one that the industry has not yet addressed. Towards the end of this decade the first wave of PV installations will begin reaching end of life.

Almost 4 GWdc of PV was installed between 2001 and 2005 – that represents anything up to 18 million individual modules. What will happen to those once they reach the end of their useful lives remains an unanswered question. In the EU, OEMs supplying the market have been responsible for paying for the cost of collecting and recycling old modules since 2012. Older modules will not fall under this regulation, however, and several OEMs from the time are no longer in business. And what about the sites themselves? Will asset owners begin thinking about repowering sites with new, more powerful modules? The relative youth of the PV industry means questions around waste and repowering are only beginning to come to the fore. Expect that to change as we move towards 2030.

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electric vehicle & ESS

EESL signs MoU with BHEL to set up a network of public charging stations at highways and cities across India Energy Efficiency Services Limited (EESL), a joint venture under Ministry of Power has signed a Memorandum of Understanding (MoU) with Bharat Heavy Electricals Limited (BHEL), one of the largest engineering and manufacturing enterprises in India to set up a network of Public Charging Infrastructure for electric mobility at various highways across the country.

ESL & BHEL will jointly explore opportunities in the field of e-mobility and fast-track the adoption of EVs in the country under Government of India’s National E-Mobility Programme. As part of the MoU, BHEL will offer complete EPC solutions from concept to commissioning while EESL will make the entire upfront investment on services, along with the operation and maintenance of the public charging infrastructure. The MoU covers collaboration for identifying, planning, development and installation of charging stations at suitable locations.

Commenting on the partnership, Shri. Saurabh Kumar, Managing Director, EESL said, “Mobility is changing rapidly, and India is powering ahead to a sustainability-driven future by adopting electric vehicles. Availability of adequate charging infrastructure is one of the key requirements for further accelerating EV adoption in India. Setting up various charging stations at highways will boost the interest of public commuting from one city to another enabling a smooth and sustainable transition to a futureoriented mobility solution.”

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Installation of public charging stations will help create a sustainable EV ecosystem in the states and cities to promote local adoption of E-mobility. With installation of public charging stations, the range anxiety among public is expected to reduce, which would help in increasing the adoption of EVs in the cities across India. This would also help meet the state level targets of increasing environment friendly clean fuel transportation. With increasing penetration of EVs, the local emission of pollutants is also expected to drop, leading to cleaner air providing several health beneﬁts to the public. Source: edelman

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electric vehicle & ESS

Total, Groupe PSA forming JV to produce EV batteries in Europe; €5B program; €200M pilot plant at Saft Nersac Energy major Total, through its wholly-owned subsidiary Saft, and Groupe PSA with Opel, intend to establish a joint venture named Automotive Cell Company (ACC) to develop EV battery manufacturing in Europe. The project will leverage cutting-edge R&D, notably provided by Saft, in order to produce EV batteries starting in 2023.

he partners say that the technology used will offer the highest level of energy performance, both in terms of range and charging time, and a lower carbon footprint than that of the competition. The first phase of the project focuses on R&D, including building a pilot plant on the land of Saft’s Nersac facility. The plant is scheduled to start up in mid-2021 and represents an investment of €200 million. The project will generate around 200 high-skilled jobs in France’s Nouvelle-Aquitaine region to develop, qualify and commercially scale up new, high-performance lithium-ion batteries. This first phase will trigger the investment decision for a large-scale production plant (8 GWh initially, rising to 24 GWh later on) in the northern Hauts-de-France region, followed by a second one of equal capacity in Germany, in order to reach 48 GWh of combined capacity by 2030. That would represent production of one million batteries a year, or around 10-15% of the European market. Ultimately, nearly €5 billion will be required to complete this ambitious program. Total and Groupe PSA acknowledge the support of French, German and European Union authorities for the project, expected to receive nearly €1.3 billion in public funding during its development in the frame of the Important Projects of Common European Interest (IPCEI) initiative authorized by the European Commission.

In 2015, Total set an ambition to become the responsible energy major. With that in mind, we acquired Saft, a major battery maker, in 2016, primarily to develop energy storage to support the growth of intermittent renewable energies such as solar and wind. The fast-growing development of electric mobility offers Total, via Saft, another opportunity for growth and commitment to a decarbonized economy. With the support of French, German and European authorities, we will deploy our best expertise and technologies alongside our partner Groupe PSA, to create a competitive European battery industry.

Patrick Pouyanné, Chairman and Chief Executive Officer of Total. Our purpose is to offer citizens mobility options that are clean, safe and affordable. I am convinced that this project, with our partner Total/Saft, will create a benchmark player in automotive battery cell development and production in Europe. I would like to thank the French and German authorities, the Nouvelle-Aquitaine and Hauts-de-France regions and Rhineland-Palatinate state for their active support, which is decisive in the creation of a competitive business backed by Total and its affiliate Saft, Groupe PSA and Opel.

Carlos Tavares, Chairman of the Managing Board of Groupe PSA. The Automotive Cell Company (ACC) will be a 50-50 Saft and Groupe PSA/Opel joint venture for the pilot production line. During the commercial production phase, Saft’s share in ACC will decline to 33%. In 2019, the European Union set ambitious, binding targets to quickly expand the sale of electric vehicles. The European market for automotive batteries is estimated to reach around 400 GWh in 2030, or 15 times current needs, corresponding to more than seven million electric vehicles. European automakers therefore need to plan their battery supply strategy, since batteries represent more than a third of an electric vehicle’s added value. The project’s implementation is contingent on securing the approvals of the relevant antitrust authorities.

Source: greencarcongress

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MARCH- 2020

electric vehicle & ESS

China Lithium Giant Faces Debt Mountain After Deal at Cycle Top Tianqi Lithium’s $300 million bond sinks on concern over debt. Producer bought a stake in Chile’s SQM for $4 billion in 2018. After borrowing billions to fund an overseas expansion to ride a lithium boom, a collapse in prices has left one of the world’s top producers straining under a mountain of debt. Valued at more than $6 billion, Tianqi Lithium Corp.’s predicament highlights the risks of boom-and-bust cycles in commodity markets that can punish mistimed or over-extended ventures, even in sectors fated to become dominant.

hile long-term prospects for lithium are bullish as demand for electric-vehicle batteries booms, the sector is reeling from a prolonged price slump triggered by an explosion in supply and reduction of EV subsidies in China, the biggest auto market. Tianqi is staring down a $3.5 billion loan from China CITIC Bank that it used to buy a 24% stake in a Chilean rival in May 2018. About $2.3 billion of that is

scheduled to come due in November, Moody’s Investors Service said in a report last month. The company’s $300 million offshore bonds sank the most on record last week amid reports that the giant miner was facing uncertainty over the repayment of just 300 million yuan ($43 million) of debt. They’ve since been drifting about 66 cents on the dollar, near an all-time low, amid continued concern about its financial health.

Lithium Leaders

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electric vehicle & ESS It’s not just Tianqi feeling the pain. Top global producer Albemarle Corp. has halted plans to spend $1.5 billion on new capacity, while Livent Corp. is also reviewing its growth ambitions. In Australia, juniors Galaxy Resources Ltd. and Pilbara Minerals Ltd. have slashed production plans, blaming low prices and excess supply. And in Canada, aspiring producer Nemaska Lithium entered creditor protection last month after a strategic review. All of this is a response to a premature wave of new supply that flooded the market in the past two years, overwhelming even the growth in demand for the material used in rechargeable batteries. Prices have halved since their peak in May 2018, according to consultant Benchmark Mineral Intelligence. Tianqi’s business has been “dragged by very heavy refinancing needs,” said Clare Guo, credit desk analyst at Nomura International HK Ltd. Still, it has world-class resources and manages to maintain decent operations in spite of tumbling lithium prices, she said.

The company said in a filing to the Shenzhen stock exchange Jan. 23 that it has transferred funds for a payment on the 300 million yuan onshore bond, puttable Feb. 1. It didn’t respond to calls and emails seeking comment before and during the Lunar New Year holiday in China, which has been extended because of the coronavirus outbreak. In early 2018, with prices soaring to multi-year highs amid a frenzy of interest in lithium assets, Tianqi clinched its deal to buy 24% of in Sociedad Quimica y Minera de Chile — known as SQM — for more than $4 billion. The tumble in prices since the acquisition has left Tianqi with a pile of debt and steadily shrinking profit. In April 2019, the company said its focus for the year was to reduce its assetto-liability ratio to a “more reasonable level,” and highlighted that its gross margins and cash flows were healthy. While gross profit margins for the third quarter last year were 53%, it posted its first quarterly net loss in more than 5 years as debt repayments mounted. Net interest servicing climbed to 552 million yuan.

The company in December raised about 2.93 billion yuan in a rights issue, less half the 7 billion yuan it was seeking to help pay down the load for the SQM purchase. About 41% of those new shares were purchased by Tianqi Group, the main shareholder and controlled by founder Jiang Weiping, along with related parties including Jiang’s wife, Zhang Jing, and son-inlaw, according to a company filing. Moody’s last month cut Tianqi’s rating to B1 from Ba3, saying smaller-than-expected proceeds from the rights issue would result in slower de-leveraging and tighter liquidity. Total debt will remain about 7.5 times operating profit for the next 12 months, Moody’s estimated.

The negative ratings outlook continues to reflect the uncertainty related to Tianqi Lithium’s refinancing plans, weak liquidity position and weak operations, Gerwin Ho, Moody’s lead analyst for Tianqi, wrote in a Dec. 23 note. Nevertheless, Moody’s said it expected the company will be able to roll over its debt with banks “given its strong market position." Tianqi would be far from the first commodities company to splurge on assets at the top of a cycle, only to face a squeeze when prices collapse. A famous example was Rio Tinto Group’s debt-fueled purchase of Alcan Inc. in 2007, just before the global financial crisis sparked a decade of woes for the aluminum industry.

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“A surplus of lithium product production, increasing inventory levels and weaker than anticipated demand” from the electric vehicle sector in China and the U.S. pressured suppliers of the metal through the second half of 2019, according to Galaxy Resources Ltd., which said Jan. 23 it would cut its mining operations and production in Western Australia. The market will continue to be pressured by excess stockpiles throughout the early part of 2020, it said. There’s a potential better long-term outlook as many planned projects have stalled on a lack of funding, meaning the market may return to a deficit as demand builds from automakers by the middle of the decade, according to Galaxy. The SQM stake purchase was “based on strategic needs,” Tianqi said in a statement in June 2018. The investment will bring long-term stable returns and enhance Tianqi’s exposure to SQM’s world-class resources, it said. Headquartered in Chengdu, Sichuan Province, Tianqi also owns a 51% stake in the Greenbushes lithium mine in Western Australia. The lithium market is paying close attention to Tianqi because it took on so much debt to pursue the purchase when prices were very high, according to Daniel Chen, an analyst at consultancy CRU Group. “I think Tianqi thought the SQM transaction as a once-in-a-lifetime opportunity,” he said. “And if they don’t take the chance then it would never happen.” Source: bloomberg

MARCH- 2020

electric vehicle & ESS

BPCL forays into swappable lithium ion battery supply for electric

vehicles

Eyeing opportunities in the wake of disruption expected from electric vehicles, oil major Bharat Petroleum Corporation Limited launched ‘e-drive initiative’ an electric three-wheeler mobility model. Partnering with electric vehicle-maker Kinetic Green Energy and Power Solutions and IIT Madras for technology support, the public sector oil marketing giant brought on stream a supply of swappable lithium-ion batteries at its retail outlets in Kochi and Lucknow in the first phase for electric three-wheelers.

A mobility in India.

ccording to the business model touted as unique, fleets of three-wheelers, also known as ‘e-rickshaws,’ are deployed in the two cities by Kinetic Green which also owns them and drivers pay rental for use of vehicles and a fee for energy provided by BPCL. There is, however, no maintenance cost. Chairman and managing director, BPCL, D Rajkumar said rising air pollution, increasing disposable incomes and rapid urbanisation would drive future

Chairman and managing director, BPCL, D Rajkumar said rising air pollution, increasing disposable incomes and rapid urbanisation would drive future mobility in India. “Electric vehicles would be having an increasing share of the urban transportation canvass in the years to come,” he said adding: “We are happy to have collaborated with two strong partners, the IIT Madras for technological support and Kinetic Green as a mobility partner.” The operations in Kochi and Lucknow were inaugurated through video conferencing from here and a giant screen beamed e-rickshaws lining up to change batteries at BPCL outlets and the process of swapping was over in a matter of few minutes, similar to the time taken for filling petrol or diesel. The three-wheelers are powered by two batteries and when the charge drains, it could be brought to the BPCL outlets where it would be replaced with fully charged ones.

CEO, Kinetic Green, Sulajja Firodia Motwani said the electric vehicle with swappable battery technology reduced upfront the cost of vehicle by 50 per cent. “Customers never have to worry about battery charging and replacement.”

MARCH- 2020

General Manager, BPCL, Rahul Tandon told reporters, “we are in active discussion with Kinetic to launch it in seven more cities in the next phase depending on licencing (for e- three wheelers).” The cost of two batteries, needed to run a single e- rickshaw is Rs 60,000 to Rs 65,000 and it is borne by the BPCL, he said answering a question. The usage fee for drivers is between Rs 350 and Rs 400 for a single swap of two batteries and the twin Li-ion batteries provide a range of 50-55 kms, he said. On investments for this venture, he said: “It is too early and too small at this stage but we have huge plans of going forward.” Also, he said this was only a first initiative to be prepared for any change that may happen in the market. Motwani said the rollout at Lucknow and Kochi was on a pilot basis. A fleet of 20 vehicles each in Kochi and Lucknow is in place and it would be expanded to 100 later and the investment for a single e-rickshaw is about Rs one lakh sans battery. “This is a new concept and we are promoting it.” In Kochi, while operations would only be at metro rail stations, at Lucknow it covers Metro and other urban areas as well, she told reporters. “We have a special agreement with Kochi Metro and they want to promote electric three-wheelers for connectivity.” E- rickshaws normally charge Rs 10 for commuters and the model will also address the last mile connectivity issue for users of Metrorail, she said. Electric vehicles are expected to cause disruption in the present automobile and auto component ecosystem and in 2018 Indian Oil had partnered with Fortum India for electric vehicle-charging stations. Last year, the Central government notified the second phase of the FAME India scheme with a Rs 10,000-crore outlay to encourage electric and hybrid vehicles.

Source: PTI

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IndianOil to team up with Phinergy of Israel for manufacture of metal-air batteries

In its quest to embrace emerging energy alternatives and to firm up viable, customer-convenient automobile battery technology options, Indian Oil Corporation (IndianOil) has firmed up its equity participation in Phinergy, Israel, for production of metal-air batteries.

hinergy specialises in aluminium-air (Al-Air) and zinc-air battery systems that have great potential applications in electric mobility and stationary applications. Aluminium is naturally available in India and their extraction and recycling technologies are also very well established. IndianOil’s collaboration with Phinergy in the field of Al-Air will help in reducing import dependence of the country and isolates the country’s energy requirements from global geo-political and currency risks. To start with, IndianOil has taken a minority equity stake in Phinergy (Israel). IndianOil and Phinergy are now in the process of forming a Joint Venture in India for collaboration in the field of Al-Air battery system including research & development, customization, manufacturing, assembly, sell and service of aluminium-air energy systems technology. The joint venture intends to setup a factory in India to manufacture Al-Air batteries for Electric Vehicles and stationary applications and facilitate development of eco-system for Al-Air technology.

Referring to the affirmative step in battery technology space, Mr. Sanjiv Singh, Chairman, IndianOil, said that IndianOil is evaluating and firming up a number of opportunities to provide Indian automobile consumers feasible and scalable alternative energy options. “We are confident that this Al-Air battery technology would complement Lithium ion batteries to provide a hybrid solution for large-scale adoption of electric vehicles in the country. Al-air battery technology has advantages on a number of factors like range, energy density, safety of operations, life-cycle etc., the India-centric,” he added.

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Phinergy is a start-up in clean and high energy-density battery systems based on metal-air technology, which generates electricity using aluminium or zinc as an energy source mainly. Phinergy’s CEO, Mr. David Mayer added “Phinergy is glad to join forces with IOCL and share the vision of enabling clean and affordable energy solutions for India”. Both companies are in discussions with leading auto manufactures for adoption of this technology in 3Ws, cars & buses, and they have also shown interest in evaluation and subsequent adoption of this technology. Source: iocl

MARCH- 2020

electric vehicle & ESS

Over 50% new threewheelers sold in India will be electrified by 2024: CRISIL

By 2024, as much as 43-48 per cent of new three-wheelers (excluding e-rickshaws), and 12-17 per cent of new two-wheelers sold in India will be electric vehicles (EVs), reveals a study by CRISIL Research.

he study looked at demand, supply and policy growth drivers for EVs such as battery costs, government subsidy and charging infrastructure, besides conducting a segmentwise analysis of the cost of acquisition and operation of EVs compared with existing internal combustion engine (ICE) vehicles. Faster adoption of two- and three-wheelers is a function of cost. Typically, electric scooters are cheaper to run compared with ICE scooters. And e-autos are cheaper as compared with their ICE counterparts.

Hetal Gandhi, Director, CRISIL Research said, “In the context, supply will also be a critical factor for adoption. The top five electric two-wheeler manufacturers are expected to increase their capacity for electric variants from 0.4 million units in fiscal 2020 to over 3 million units by fiscal 2024. And in three-wheelers, even incumbent original equipment manufacturers are launching e-autos at a rapid pace. But low-speed, four-seater e-rickshaws are fast emerging as an alternative to e-autos because of being 30 per cent cheaper.” At the other end, sales of personal electric cars will remain in the slow lane due to high acquisition and ownership costs, in the absence of demand incentives. “In the commercial vehicle space, subsidies to state transport undertakings will drive sales of electric buses for intra-city operations.” Cab aggregators, though, will step on the accelerator as these will enjoy better operational economies and subsidies. A cab aggregator e-car that runs ~50,000 km a year, for instance, can save about Rs 1.65 lakh a year compared with Rs 35,000 for a personal e-car that runs ~10,000 km a year, as per the study. In the commercial vehicle space, subsidies to state transport undertakings will drive sales of electric buses for intra-city operations. That said, poor public charging infrastructure will impact adoption.

MARCH- 2020

Pushan Sharma, Associate Director, CRISIL Research said, “The government has created a policy push for EVs with the second instalment of the Faster Adoption and Manufacturing of Electric Vehicles in India or FAME II policy and numerous efficiency and emission regulations. However, India has much catching up to do in terms of the four drivers of growth globally – battery price, demand incentives, supply push, and charging infrastructure. That means policy implementation will be crucial to faster adoption of EVs in India.” CRISIL Research expects the landed cost of a lithium-ion battery – a key driver of EV adoption in India – to come down in line with an expected drop in global prices by fiscal 2024. Execution of the government’s phased manufacturing programme for EV batteries, too, will help drive down battery prices. Till then, EV adoption will be gradual, giving auto component manufacturers enough time to realign their operations.

Source: crisil

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Tata Power plans to have 700 EV charging stations by 2021 Tata Power is planning to increase its network of electric vehicle charging stations to 700 by next year, a top company official said. The company has already installed 100 fast charging stations in various cities, including Delhi, Mumbai, Bengaluru, Pune and Hyderabad, which it plans to take to 300 by March 2020.

We are mapping the locations where EVs are launched and we will be setting up charging stations in those cities. Our aim is to take this number to around 700 by next year, company’s CEO and Managing Director Praveer Sinha said.

The government’s decision to lower the GST rate on EVs to five per cent from 12 per cent is expected to make EVs affordable for consumers with additional income-tax deduction. He said the company is not just focusing on public spaces but will also provide home EV charging stations. “We will create infrastructure for home charging as well as public charging like at metro stations, shopping malls, theatres and highway, among others,” Sinha said.

he company is already in talks with metro rail authorities and municipal corporations for setting up EV charging stations. Besides, it will set up charging stations at Tata Group owned outlets such as Chroma, WestSide, Titan watch showroom, and Indian Hotels, among others. Tata Power has also signed MoUs for setting up commercial EV charging stations at HPCL, IOCL, and IGL retail outlets. In Mumbai, the company has already set up 30 station, which it expects to increase to 200 by next year. Company’s Head-EV and home automation Sandeep Bangia said from the standard 15 kW stations, the companies may also look at installing charging stations that will adhere to 30-50 kW standards as demand grows. Source: PTI

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MARCH- 2020

electric vehicle & ESS

Lithium reserve found in Mandya near Bengaluru

Researchers at the Atomic Minerals Directorate, a unit of India’s Atomic Energy Commission, have estimated lithium reserves of 14,100 tonnes in a small patch of land surveyed in the Southern Karnataka district.

Bengaluru: Good omen for electric vehicles? Reserves of lithium, a rare metal critical to build batteries for electric vehicles, have been discovered in Mandya, 100 km from Bengaluru – a find that should boost local manufacturing of EV batteries. Researchers at the Atomic Minerals Directorate, a unit of India’s Atomic Energy Commission, have estimated lithium reserves of 14,100 tonnes in a small patch of land surveyed in the Southern Karnataka district, according to a paper to be published in the forthcoming issue of journal Current Science.

The present data provides a total estimation of available Li2O as about 30,300 tonnes over an area of 0.5 km x 5 km, which works out to about 14,100 tonnes of lithium metal,” said N Munichandraiah, Emeritus Professor at the Indian Institute of Science and an expert on battery technologies.

ut, to put this in perspective, the lithium find is small compared to many major producers. As the professor puts it: “If one compares with 8.6 million tonnes in Chile, 2.8 million tonnes in Australia, 1.7 million tonnes in Argentina or 60,000 tonnes in Portugal, 14,100 tonnes is not that large.” Lead author of the paper, PV Thirupathi, did not respond to mails seeking comment. India currently imports all its lithium needs. ‘Not Enough Exploration Effort’ Its imports of lithium batteries tripled to $1.2 billion in FY19 from $384 million in FY17. In the eight months to November 2019, lithium battery imports stood at $929 million, according to data shared by science & technology minister Harsh Vardhan in Parliament on February 2. Experts say while India requires lithium for its energy needs, there has been no comprehensive effort to map local reserves of lithium so far.

MARCH- 2020

We have not explored so far whether we have adequate reserves of lithium because of concerns of radioactivity,” says Dr Rahul Walawalkar, president of India Energy Storage Alliance, a grouping that looks at battery technologies. “We don’t know the potential So far, in the absence of local mines for lithium, India has set up Khanij Bidesh India to source and acquire mines in Argentina, Bolivia and Chile. Source: auto.economictimes.indiatimes

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EESL signs MoU with BSNL to install 1000 public charging stations across India

Energy Efficiency Services Limited (EESL), a joint venture of four National Public Sector Enterprises under Ministry of Power, Government of India, has signed a Memorandum of Understanding (MoU) with Bharat Sanchar Nigam Limited (BSNL), an Indian state-owned telecommunications company for the installation of public charging stations to boost e-mobility adoption across India.

nder the partnership, EESL will set up public charging stations in 1000 BSNL sites in a phased manner on a pan India basis. EESL will make the entire upfront investment on the services pertaining to the MoU, along with the operation and maintenance of the charging infrastructure by using qualified personnel. BSNL would be responsible for providing the requisite space and power connections for installing the charging infrastructure.

Talking about EESL’s mission to build a robust EV infrastructure, Mr Saurabh Kumar, Managing Director, EESL said, “Building a strong supporting EV infrastructure is key to cultivating consumer confidence in electric vehicles and would significantly enhance consumer convenience and reduce the range anxiety as well. EESL is leading the initiatives to promote EV adoption in India under its National E-mobility Programme. We are glad to partner with BSNL for synergistic action on setting up public charging infrastructure and services across India.”

Taking forward the vision of the National Electric Mobility Programme, EESL has commissioned 300 AC and 170 DC chargers across India. Till date, 66 public charging points are currently operational in Delhi NCR. In the pursuit of increasing the charging infrastructure penetration, EESL has signed MoU/Agreement with Ahmedabad Municipal Corporation (AMC), Noida Authority, Chennai Metro Rail Corporation Limited (CMRCL), Jaipur Metro Rail Corporation (JMRCL), Greater Hyderabad Municipal Corporation (GHMC) and Commissioner, Director of Municipal Administration (CDMA), New Town Kolkata Development Authority and Kalinga University Raipur (Chhattisgarh) for development of Public Charging Stations (PCS) in their respective areas. With its innovative model of demand aggregation and bulk procurement, EESL receives electric vehicles and chargers at a signiﬁcantly discounted rate vis-à-vis the actual market value. Further, with access to low cost funds, it is able to discover the most competitive project costs. Using this approach, EESL has established a sustainable business model, which makes EVs affordable for the end-consumers. Source: edelman

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MARCH- 2020

electric vehicle & ESS

Bill Gates-Led Fund Invests in Making Lithium Mining More Sustainable

Breakthrough Energy Ventures, helmed by Bill Gates, and MIT’s The Engine fund are leading an investment round of $20 million for Lilac Solutions, a U.S. startup aimed at making the extraction of lithium less water-intensive and more sustainable.

s the world looks to cut carbon emissions, people are increasingly turning to lithium-ion batteries for solutions such as powering electric vehicles or storing renewable energy. While there’s enough lithium available to meet today’s demand, BloombergNEF expects the market could see a shortfall as soon as 2023 as demand for the metal grows fourfold over the next decade. About 75% of the world’s lithium is trapped in underground deposits of briny water that contain a mixture of salts. The typical way to recover lithium is to pump the water to the surface into miles-long salt ponds and let the water evaporate. What remains is then treated with chemicals, processed, washed, and filtered to leave behind the lithium. BNEF estimates that each ton of lithium extracted from brine requires 70,000 liters of fresh water. Making matters worse, much of lithium mining happens in regions that are already waterstressed. In Chile’s Atacama Desert, for example, mining activity is wrecking the ecosystem and straining local communities. Evaporation pond extraction is also quite slow: It can take up to two years for brine to yield usable lithium. And the process is able to recover only about 50% of the lithium present in the brine. All that raises the upfront capital cost and slows down the pace at which new mines can be started.

MARCH- 2020

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electric vehicle & ESS Lilac Solutions, based in Oakland, California, is a one of a handful of startups deploying technologies that could drastically cut water use, lower capital expenditure, and make lithium-extraction more energy efficient. Instead of waiting for the sun to heat evaporation ponds, Lilac uses ion-exchange beads that are able to selectively remove lithium and leave behind magnesium, calcium, boron, and other unwanted minerals. Once the beads are saturated, they’re treated with an acid to extract the lithium and can then be used again. The process does away with the need for large evaporation ponds and is able to return the lithium-depleted brine back underground, according to the company. It also cuts down the amount of time needed to extract lithium from brine to mere hours. And the beads are selective enough to recover about 90% of lithium in brines. Other companies have tried to build these ion-exchange beads in the past, but they were either not selective enough at picking lithium out of the mixture of minerals or fell apart after just a few cycles, said Chief Executive Officer David Snydacker. The Lilac beads are the product of an obsession with lithium-ion batteries that started during his PhD research at Northwestern University. Lilac's process also cuts energy use and thus greenhouse-gas emissions. Breakthrough Energy Ventures looks to invest in startups that are each capable of cutting emissions by 500 million metric tons annually. The fund's investors include Jeff Bezos, founder of Amazon.com Inc., and Jack Ma, co-founder of Alibaba Group Holding Ltd. Michael Bloomberg, the founder and majority owner of Bloomberg LP, is a backer of Breakthrough.

The new round of funding will allow Snydacker to create a manufacturing line in California. The company intends to partner with existing mines rather than open its own; the first pilot using Lilac’s technology will start in Argentina later this year, in partnership with mining company Lake Resources. If it works, Snydacker hopes to deploy the technology to extract lithium from unconventional sources, such as oil fields and geothermal power plants, which both produce copious amounts of brine.

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Lilac’s competition is growing. Other startups in the space such as Rincon Ltd., Tenova, Adionics, and Summit Nanotech are all launching pilot plants. Some use ion-exchange technology like Lilac others use either nano-filtration (essentially filters small enough to separate charged atoms) or solvent extraction (chemicals that have affinity for lithium).

The demand for lithium is growing rapidly, according to BNEF metals analyst Sharon Mustri. “The main challenge for these startups is to scale up,” she said.

MARCH- 2020

electric vehicle & ESS

WoodMac: Global Energy Storage Installations to Hit 15GW by 2024 The 2020s are the decade when the energy storage market comes of age—with potentially profound implications for the global energy system. The global energy storage market quadrupled last year to 4 gigawatts of new installations and will surge to a 15-gigawatt annual market in 2024, even as system price declines slow down, according to Wood Mackenzie.

he energy storage industry begins the new decade in the midst of a rapid transformation from a niche market to one at the center of the global energy transition. Most grid-scale projects built over the past decade were limited to shorter-duration applications, such as ancillary services for the grid, the “lowest-hanging fruit of the storage tree,” a new WoodMac research note says. But the market has seen a rash of major project announcements recently, driven in particular by the U.S., where developers are increasingly pairing large-scale solar arrays with batteries. NextEra Energy, North America’s leading renewables developer, is adding substantial storage capacity through both its regulated Florida utility and its independent generation arm.

Meanwhile, Google’s blockbuster solar-plus-storage deal last month with NV Energy could blaze a trail for other companies looking to meet their real-time energy needs with renewables. Shortly afterward, Daimler announced a deal with Norwegian power firm Statkraft to cover its 24/7 electricity demand in Germany with renewables. Finn-Foley highlighted several other trends that will shape the energy storage industry in the decade ahead, including: If this catches on among other climate-forward corporations, the upside could be huge [for storage], said Daniel Finn-Foley, WoodMac’s head of energy storage, of the Google deal. Storage developers still face challenges in getting paid for all the various services a battery can offer the grid. But the industry is in the “enviable position of juggling growth game-changers from multiple directions,” FinnFoley observed. “Plunging costs drove speculation in the first scaled markets, but as price declines enter a steadier rate, further recognition of storage’s value — rather than cost — will be the key factor in determining growth,” he said. While the cost of energy storage systems fell by double-digit percentages regularly through the middle part of the last decade, the decline has moderated in recent years. System prices fell by around 6 percent last year, and that’s more or less the trajectory the industry can expect for the foreseeable future, WoodMac says.

MARCH- 2020

Behind-the-meter resiliency. While grid-scale storage projects will account for the majority of the gigawatts installed, concerns about blackouts and other climate-induced events will increasingly spur demand for battery systems at homes and businesses. Growing interest from oil and gas companies. A year ago Shell acquired German energy storage specialist sonnen, and the crossover between conventional energy giants and storage companies will likely continue. In another example, French oil producer Total last month announced plans to collaborate with automaker Opel on electric-vehicle battery manufacturing. One “gray swan risk” for the market, Finn-Foley warned, is the potential for supply-chain shortages and commodity dynamics — factors that delayed a number of storage projects planned for completion in 2018-2019. The stationary energy storage market has the “benefit and complication” of having a supply chain that overlaps with the EV and consumer electronics industries, Finn-Foley noted. “This has the spectacular benefit of piggy-backing learning curves for lithium-ion batteries, but it also ties the industry more closely to the research, development and innovation goals of these other parallel spaces.” Some areas of intense focus for EV makers, including battery weight and energy density, may not be as important for grid storage developers, he said.

Source: greentechmedia

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Lux Predicts Energy Storage Market Will Hit $500 Billion by 2035 The total energy storage market is expected to grow to $546 billion in annual revenue by 2035, according to a report released by Lux Research. The report, “Global Energy Storage Market 2019,” estimates that the three main drivers of energy storage – mobility applications, electronic devices, and stationary storage – will reach an annual combined deployment level of 3,046 GWh over the next 15 years, up from the current 164 GWh, with mobility applications making up the lion’s share of the growth.

The energy storage industry is poised for a massive increase in annual revenue and deployment capacity as key innovative technologies, such as solid-state batteries and flow batteries, reach commercialization, said analyst Chloe Holzinger, one of the report’s lead authors. “We continue to expect electric mobility applications, primarily light-duty passenger vehicles, to be the principal long-term driver of energy storage annual revenue and demand, with a total market share of 74% by annual revenue and 91% by annual deployed GWh by the year 2035.”

Mobility applications remain the long-term growth and demand driver for energy storage through 2035, with personal mobility devices expected to increase to $43.7 billion from their current $2 billion in revenue. Stationary storage is expected to grow to $111.8 billion in revenue by 2035, marking a significant increase from its $9.1 billion revenue in 2019. Meanwhile, energy storage demand for electronic device applications is expected to remain flat over the next 15 years with a CAGR of only 1.9%, as the markets for laptops, cell phones,

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rowth in revenue and deployment for the energy storage market over the next three years will be markedly different from the overall 2035 projections, with plug-in light-duty vehicles remaining the largest market with a predicted $24 billion increase in revenue by the end of 2022. Medium- and heavy-duty vehicles come in next, growing from $600 million a year in 2019 to a projected $3.6 billion per year in 2022, but have the highest combined annual growth rate (CAGR) of 80%. Residential storage has a CAGR of 76% and $8 billion revenue increase over the next three years, followed by personal mobility with a CAGR of $49% and $4.6 billion revenue increase.

and tablets are already saturated, leaving growth pegged primarily to population increase. The report identifies five major technologies that are wellpositioned to drive growth in energy storage markets: battery recycling, electric aviation, flow batteries, thinfilm batteries, and solid-state battery improvements. Source: prhacker

MARCH- 2020

electric vehicle & ESS

China’s CATL aims to raise $2.85 bln for EV battery projects The fundraising will help CATL to expand its battery-making capacity in Fujian, Jiangsu and Sichuan, as well as an energy storage research project, the company said in a filing to the Shenzhen stock exchange late

ATL, China’s top electric vehicle battery maker, said it aims to raise up to 20 billion yuan ($2.85 billion) in a private placement of shares to fund its battery projects and boost working capital. The company has partnerships with Tesla, Volkswagen and BMW. In a separate filing, the battery maker said it plans to invest 10 billion yuan in a battery manufacturing base in Ningde, where it is headquartered. China has set an ambitious plan for new energy vehicles, which include battery-only, plug-in hybrid and fuel-cell vehicles. However, their sales sank 51.6% in January, industry data showed, due to a cut in subsidies, the Lunar New Year holiday starting earlier than last year as well as the impact of the outbreak in China of a new coronavirus.

Source: reuters

EV Motors and BSES Yamuna to facilitate EV charging network in Delhi With an aim to provide a fillip to the e-mobility ecosystem in the nation’s capital, EV charging solutions provider – EV Motors India (EVM) – has inked an agreement with BSES Yamuna Power Limited (BYPL) that will see the companies work closely to facilitate EV charging facilities across Delhi.

s per the agreement, EVM and BYPL will “jointly create, operate and maintain charging infrastructure” under the former’s PlugNGo brand at select locations in central and east Delhi. All charging stations will be equipped with one or more charging points for catering to multiple EVs and they will also be accessible via a mobile application for online booking of charging slots and making payments digitally.

Commenting on the association, P R Kumar, CEO of BSES Yamuna Power Limited – one of the three power distribution companies in Delhi – said, “Charging infrastructure for EV vehicles is the need of the hour. We are working with strategic partners to facilitate the setting up of charging stations in east and central Delhi to bring in a change in the mobility landscape. This partnership with EV Motors India is a testimonial to these efforts.”

MARCH- 2020

Expressing his thoughts on the significance of creating a holistic e-mobility ecosystem, Arvind Gujral, CEO, EV Charging Infrastructure (PlugNGo), said, “PlugNGo is committed to reducing dependence on fossil fuel-based vehicles by offering energy efficient solutions. This tie-up plays a major role in boosting the charging infrastructure in the capital thereby accelerating the adoption of electric vehicles in the city.” EV Motors, a start-up that was founded in 2016, opened doors to its maiden EV charging facility at DLF Cybercity in Gurugram just over a year ago. The company is now aiming at creating 6,500 such outlets across the country in the next five years with an investment of $200 million (around Rs 1,400 crore). Overall, the penetration of electrification in the Indian automotive landscape remains at a nascent stage. However, a string of EVs launched in the recent months, including the Hyundai Kona Electric, MG ZS EV, Tata Nexon EV, and Mahindra eKUV100, signal a prospective shift in intent. Homegrown automakers Tata and Mahindra have announced substantial EV plans and many of the other OEMs are also said to have at least one upcoming EV model in their respective portfolios. Source: autocarindia

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EESL to set up 10,000 EV charging stations in next three years

Power PSUs’ joint venture EESL is set to ramp up its capital expenditure to set up around 10,000 electric vehicle (EV) charging stations in the next two to three years.

joint venture of PSUs under the Ministry of Power, the Energy Efficiency Services Limited (EESL) has undertaken this project to boost the e-mobility ecosystem in India. Presently, the state-run firm has tied up with various private and public companies such as Apollo Hospitals, BSNL, Maha-Metro, BHEL and HPCL, among others, to set up public charging infrastructure. It has also partnered with urban local bodies in Hyderabad, Noida, Ahmedabad, Jaipur and Chennai, and is in discussion with others to erect such infra.

We are working towards strengthening the charging infrastructure with an objective to set up 10,000 charging stations over the next two to three years across India, EESL Managing Director Saurabh Kumar told IANS. “We are in the process of signing MoUs with various states and government departments to promote EV adoption in India, which will further boost interest among the public, Kumar added. One of the main capital requirements to set up charging infrastructure is the availability of ‘land’, which as of now is provided free of cost by most municipal bodies or firms for public chargers to EESL. The clean energy major then sets up the charging station in that area and operates it for 10 years.

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In return, EESL pays a certain proportion as land rental to the entity for every kilowatt hour (kW/h) the company utilises. Till now, EESL has installed 68 public charging points, which are currently operational across the country. “By the end of FY20, we aim to install around 100 charging stations in Delhi-NCR, Chennai and Nagpur,” Kumar told IANS. “We are aiming to install around 1,500 EV public charging stations by the end of FY21 in Delhi-NCR, Maharashtra, Tamil Nadu, Telangana, Gujarat, West Bengal, Rajasthan, Chandigarh and Karnataka,” he added. Currently, many automobile companies and others, including standalone charging infrastructure developers, are also installing these facilities. Besides, the company has registered an annual turnover of Rs 2,565 crore in FY19. “In less than one year, we have earned a revenue of over Rs 9.3 lakh from our charging stations. EESL Capex is expected to be Rs 3,000 crore in 2019-20 and Rs 6,000 crore in 2020-21,” he said. As of now, apart from creating an e-mobility ecosystem in the country, EESL is scaling up smart meters and smart grids, storage and other clean energy technologies. Furthermore, the company is in the process of aggregating the demand generation for EVs in the country via bulk purchases. Source: IANS

MARCH- 2020

energy storage

The transition from Lead Acid battery to Lithium Ion battery: Why is the shift necessary? – Part 2 The first part of the article “The transition from Lead Acid battery to Lithium Ion battery: Why is the shift necessary?” introduced the need of storage and further detailed about the lead acid battery. It also discussed major disadvantages which were associated with the lead acid battery. This part of the article shall educate its readers about Lithium Ion battery, its working and its advantages over lead acid battery. Further it shall also detail the market dynamics of Lithium ion battery and its applicability in the Indian sub-continent.

hile considered to be one of the most emerging technologies in the storage industry, lithium ion isjust 50 years old. Similar to most of the battery technologies, the lithium ion battery has cathode, anode, electrolyte and a separator. The cathode of the battery is usually made up of combination of lithium & oxygen (known as the “active material”), a conductive additive and a binder.

The anode of the battery is usually made up of graphite which is known for good structural stability, low electrochemical reactivity, better affinity to lithium ions and lower price. The most common electrolyte used in the battery is a lithium salt, such as LiPF6 in an organic solution. The separator in the battery is usually made up of polyolefin as it has excellent mechanical properties, good chemical stability and lower costs. A typical Lithium Ion battery (Source: Samsung SDI)

The Li-ion battery works on the principle of electron-ion exchange, similar to most of the batteries. During discharging, the electrode with the high electron affinity will release electron (which is known as anode) and the electrode with the low electron affinity will gain electron (which is known as cathode).

This electron would travel through the load and thus allowing the battery to supply energy. Each component however has a specific function to perform. Cathode primarily determines the battery capacity i.e. higher the amount of lithium at cathode, the higher is the battery’s capacity

The anode enables exchange of lithium ion from/to cathode while charging/discharging. The electrolyte is one of the most important components of the battery. The salt present in the electrolyte allow only the passage of lithium ions and thus forcing the electron to be move via the external circuitry only thereby supplying the required energy to external load. The separator further facilitates such movement of lithium ion through its internal microscopic hole while also forming a physical barrier between the electrodes.

2. Lithium Iron Phosphate (LFP): Discovered in 1996, LFP batteries offered good electrochemical performance with reduced resistance, excellent safety and long life span but moderate specific energy and a lower voltage than other lithiumbased batteries.Its excellent thermal stability and enhanced safety enabled it to be utilized in applications which needed higher load currents and endurance, for ex: EVs, solar PV plants, UPS.

Let us now understand the (few important) existing battery technologies of lithium ion:

3. Lithium Nickel Manganese Cobalt Oxide (NMC): One of the most balanced performing lithium ion batteries is NMC. The cathode combination ratio which is usually one-third nickel, one-third manganese and one-third cobalt means that the raw material cost is lower than other types of batteries. Such combination further also allows NMC battery to be either utilized as a high energy battery or a high power battery. The battery found its application in EVs, medical devices, industrial applications, etc.

1. Lithium-Cobalt-Oxide (LCO): One of the earliest commercialized chemistry (in 1985) for Lithium ion batteries were the LCO batteries. These batteries had high stable energy capacities which allowed them to be utilized in applications in laptop, mobile phones, etc. However these batteries had higher thermal runaway, meaning that there was a fair chance that the battery possessed risk of exploding if it were damaged or overcharged. This directly led to compromised safety and life span of the battery.

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Comparison of various lithium battery technologies (Source: Battery University)

Let us now understand the advantages of Lithium ion battery over lead acid battery: 1. Light weight and easily portable: The lower weight of the lithium ion battery (compared to other commercial battery technologies) is probably one of its primary advantages. This is primarily because the battery utilizes lithium as its main components, which has both lower density and highest electrochemical potential. This further means that the battery has both higher energy density (3~4 times higher) and power density (3~6 times higher) which makes the battery even lighter when compared to lead acid battery. Additionally with the lithium battery utilizing dry electrolyte & electrodes, its installation and transportation becomes stress-free. 2. Shorter charging times and high energy delivery rates: With the application of storage now diversifying to in EVs, power plants, micro grids, etc. where the end application calls for the devices to be charged quickly and deliver high energy in a short span of time, lithium ion seems to be the perfect match. Compared to lead acid battery, the charging time of lithium ion battery could be reduced by 60% which makes it suitable for such applications. 3. Higher cycle life: One of the major concerns for storage is the duration up-till when it could be used. A battery is known to be rendered useless if its capacity reaches to 80% of its rated capacity. A typical lead acid battery runs for 300~500 cycles which means that it need to be replaced between every 1~2 years. A lithium ion battery on the other hand runs between 1,500 to 2,500 cycles which is almost 5 times more than the lead acid battery. 4. Better performance in extreme climates: Considering a case of India where extreme ambient temperatures are normal, a battery is required to be operational in all such conditions. Comparing both the battery types, the available capacity of lithium ion battery is better compared to lead acid battery (refer Figure 4) at both the extreme temperatures. This directly points out that lithium ion battery could be utilized at much better levels at all the temperature ranges.

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Available versus Temperature (Source: ALLCELL) The above factors make it clear that the Lithium Ion battery (and its variants) have a clear potential of covering almost all the applications which utilizes lead acid battery. The battery technology which has started seeing the light of the day is expected to have an exponential uptake, thanks to few specific applications like EVs, energy storage, consumer electronics, E bikes, etc. EVs are already creating a buzz in the automobile sector primarily due to the ill effects of traditional fossil based vehicle. The lithium-ion battery demand for EVs is known to grow from around 200 GWh in 2020 to 1,748 GWh annually by 2030, showing a rise of 900%. Such rise is primarily known to fuel the growth of the battery technology is the next decade. Further with the increased electrification around the world, the need for 24x7 reliable supply of electricity is increasing. With the lifetime limitations of lead acid battery, it is much expected that the grid managers and the generators shift towards

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