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

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CONT EN T

VOLUME 12 Issue #05

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

featured

GoodWe Ranked as Global No. 1 Hybrid Inverter Suppliers by Wood Mackenzie

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Huawei, Sungrow and SMA Were the Top Solar Inverter Players in 2019

Sungrow Joins RE100 Affirming its Commitment to Source 100% Renewable Electricity by 2028

32 featured Tata Power eyes Rs 3,000-crore divestment, revamp of green assets to cut debt

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.

MAY- 2020

interview Mr. Deepak Thakur

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‘COVID-19 wake up call for solar industry, need to set up more mfg facilities in India’

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ReneSola & Prosun Sign a 150MW Distribution Agreement in Australia

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Power minister proposes a new scheme worth Rs 3 lakh crore to finance commission

Adani Green plans Rs 10,000 crore capex for FY21 to build wind, solar plants

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Power Package: ₹45,000 cr liquidity for NBFCs; ₹90,000 cr for discoms

57 featured

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Quote: Mr. Sanjeev Aggarwal Founder and CEO – Amplus Solar

Sumant Sinha – CMD ReNew PoweR Quote on Financial Relief for Power sector

interview

Mr. Sandip Agarwal

EQ NEWS Pg. 08-60

interview

Mr. Pradeep Kumar

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research & analysis

ARTICLE Pg. 74-75

SOFAR SOLAR Refreshed the International Market Position Once Again!

MAY- 2020

Huawei offers leading Smart PV solutions which harnessing more than 30 years of expertise in digital information technology. As the largest inverter supplier from 2015 to 2019 globally for 5 consecutive years, Huawei is committed to building efficient, smart O&M, safe, reliable and gridsupporting Smart PV plants, and helping customers maximize the return of investment over the plantsâ&#x20AC;&#x2122;lifetime. In 2020, Huawei will further integrate AI technologies to boost LCOE and accelerate grid parity for all. 6Â

MAY- 2020

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PV Inverter Solutions Provider Localization Factory in Bangalore

13GW

13GW Annual Capacity

Top5

Utility Scale Inverter Supplier in India

Sineng Electric Co., Ltd.

No.6 Hehui Road, Huishan District, Wuxi City, Jiangsu Province, China.

Sineng Electric (India) Pvt. Ltd.

Plot No. 56 & 57, Bommasandra Jigani Link Rd Industrial Area, Bangalore, Karnataka, India

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MAY- 2020

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KKR to Acquire 317MWp of Solar Energy Assets from Shapoorji Pallonji Infra

Global investment firm KKR and leading infrastructure developer Shapoorji Pallonji Infrastructure Capital (“SP Infra”) announced the signing of definitive agreements under which KKR will acquire five solar energy assets from SP Infra for total consideration of INR15.54 billion (approximately US$204 million). The portfolio comprises of assets with a capacity of 169MWp in Maharashtra and assets with a capacity of 148 MWp in Tamil Nadu.

ith a legacy of 154 years, the Shapoorji Pallonji Group is based in Mumbai and operates in over 70 countries with a global turnover of over US$5 billion. SP Infra is the infrastructure development arm with assets and businesses in the renewable and gas-based power, highways, port and terminals in India and overseas.

David Luboff, Head of Asia Pacific Infrastructure at KKR, said, “We are truly pleased to extend our Infrastructure franchise in Asia and India through this investment in a world-class portfolio of fully operational solar energy projects. Given the growing demand across Asia Pacific for sustainable energy solutions, we also see this as a great example of how KKR can bring capital and expertise to assets to help meet the demand for infrastructure development. Looking ahead, we are excited to explore even more renewable energy opportunities in India and overseas.”

MAY- 2020

Sanjay Nayar, CEO of KKR India, added, “SP Infra and the Shapoorji Pallonji Group are recognized in India and worldwide for the high quality of their renewable energy projects, and given the government’s ambitious target of achieving 175GW of renewable energy capacity by 2022, we believe this is an attractive time to invest in this portfolio and provide even greater solar energy solutions to communities across India.”

Mukundan Srinivasan, Managing Director of SP Infra, said, “This deal further demonstrates SP Infra’s continued track record of developing high-quality infrastructure assets in its chosen spaces, creating value for further growth in its businesses, and be the partner of choice for highquality international investors like KKR.” KKR takes a flexible approach to Infrastructure investment in Asia Pacific. The Firm has evolved a traditional sector-based approach to Infrastructure – spanning assets such as transportation, energy, telecom, water and waste, among other segments – to further consider elements such as physical assets, proximity to the local economy, irreplaceability, sensitivities to economic cycles and governance, among other categories. KKR pairs the capabilities of its local teams in Asia Pacific with the Firm’s global industry and operational expertise to add value. India is a key part of KKR’s Asia Infrastructure strategy, and this announced transaction is the Firm’s second investment in the country as part of its dedicated Infrastructure strategy. Further details of the investment have not been disclosed. The transactions is subject to customary approvals. KKR makes its investment through its infrastructure fund. EY acted as KKR’s M&A advisor and AZB & Partners and Simpson Thacher acted as KKR’s legal advisors. Edelweiss, Khaitan & Co. and PwC acted as SP Infra’s respective M&A, legal and tax advisors.

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Tier-1 Solar PV Module Mfr IS14286

Contact

High Performance Poly, mPERC & Bifacial PV Modules www.EQMagPro.com

www.risenenergy.com EQ

MAY- 2020

9Â

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GoodWe Ranked as Global No. 1 Hybrid Inverter Suppliers by Wood Mackenzie GoodWe reached No.1 rank among hybrid inverter suppliers on a global scale and now stands proudly at the very top of this exclusive list with more than 15% global market share. The figures have been confirmed by none other than Wood Mackenzie in their report titled Global PV Inverter Market Shares Full-Year 2019.

his extraordinary achievement gives us enormous pride and it is a pleasure to share this huge milestone with our customers. It is because of great R&D capabilities, enhanced by more than 200 solar researchers, that GoodWe has attained this position of leadership in the complex and expanding energy storage segment. As early as 2014, GoodWe began to enter the field of solar energy storage. After years of continuous research and strategic deployment, GoodWe now boasts the industry’s most comprehensive storage portfolio from 3kW to 100kW, covering single-phase and three-phase, high voltage and low voltage, DC-coupled and AC-coupled retrofit solutions.

At present GoodWe’s hybrid inverter portfolio consists of Series ES, EM, ET, EH, BT, BH, SBP, ETC, BTC, SEA, for different application scenarios and offer massive potential in the storage sector. Thanks to these advanced, outstanding products, GoodWe has signed strategic cooperation agreements with Krannich Solar, Voltalia, Memodo, and other leading global distributors. GoodWe occupies the top spot in energy storage especially in Europe, South Africa and Australia. In markets where electricity prices are high such as Italy, Germany and Australia, an increasing number of residents have shown a preference for hybrid inverters due to FIT and high electricity bills, with the intention to maximize self-consumption. GoodWe’s backup function ensures steady 24-hour power supply in extreme weather conditions. While in countries where grids are unreliable or in poor condition, hybrid systems provide the best alternative for self-sufficiency. The market is hungry for storage and GoodWe has the ingredients. GoodWe has now won the TÜV Rheinland’s “All Quality Matters” award for four consecutive years since 2015. It is worth mentioning that the award-winning products range from the single-phase ES series in 2015, the SBP series in 2017 to the three-phase ET series in 2018, which proves GoodWe’s comprehensive and excellent ability in the Storage segment. All GoodWe storage products are equipped with a unique UPS function (Uninterruptible Power Supply). Compared to existing EPS functions (Emergency Power Supply) on the market, UPS is much better suited to inductive loads such as air conditioners or refrigerators with an automatic switchover time of less than 10 milliseconds, which guarantees 24/7 non- stop power supply.

MAY- 2020

80kW solar storage 100kW solar storage syssystem in Spain with 8 pcs of tem in Ghana with 10 pcs of GoodWe ET hybrid inverters GoodWe ET hybrid inverters

Commenting on this incredible achievement, CEO Daniel Huang stated: “being the No. 1 Hybrid Inverter Supplier on the planet is a recognition that motivates GoodWe to keep improving. GoodWe has always seen delivering high-quality inverters as its most important competitive advantage and its main contribution to the ongoing energy transformation. We would like to express our appreciation to our customers and partners for their continuous support and for sharing all the valuable feedback that has helped us deliver outstanding products.”

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MAY- 2020

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‘COVID-19 wake up call for solar industry, need to set up more mfg facilities in India’ The COVID-19 pandemic has been a wake up call for the domestic solar industry as it is heavily dependent on imports, but domestic manufacturing can be sustained only if there is profitability, a senior official of Tata Power Solar said. As much as 80 per cent of the demand for solar cells and modules are met by imports from Chinese companies.

herefore, the imposition of work restrictions by China in eight coronavirusaffected provinces, most of which are hubs of solar module manufacturers, impacted the Indian solar industry. The developers are facing a shortfall of raw materials which is going to affect the installations in the first half of the year.

COVID-19 pandemic is indeed a wake up call for the solar industry as the sector has been severely impacted due to the shortage of not just cells and modules but also other ancillary products. “This calls for setting up more manufacturing facilities in India. But this will happen only if there is a long term business proposition,” the company’s Managing Director and CEO Ashish Khanna said during a webinar. He said India has the necessary technology, which is at par with global standards, but what is lacking is the scale. “The government is taking steps by coming up with few manufacturing-linked tenders for setting up solar capacities and has also introduced basic custom duty on imports, but we need a policy framework that will ensure longevity of offtake of the products manufactured as well as profitability,” he said. India has set an ambitious target of adding 100 GW of solar energy by 2022 and has so far achieved installation of 34 GW. Khanna further said manufacturing is highly capital intensive and needs to be incentivised by the government to make it more cost competitive. “I am told that recently China proposed to set up 60 GW of manufacturing capacity, which can take care of over 50 per cent of global demand. These manufacturers get a lot of subsidies and incentives from the government and therefore can sell it at cheaper rates. “In the post COVID-19 period, developers and contractors may go back to Chinese modules and cells if we don’t give a good quality and cheaper alternative which is made in India,” he said.

MAY- 2020

Khanna noted that if the Indian government, through various policy initiatives, can ensure scale and profitability, manufacturers will increase production, which will not just cater to the domestic market but can also be exported. Tata Power Solar, which is largely focused on setting up solar projects on engineering, procurement, and construction (EPC) basis, also has a manufacturing unit in Bengaluru. The facility has a production capacity of 400 MW of modules and 300 MW of cells and the company is keen to invest in technology and capacity enhancement. “If there are returns, then why will we not invest? We have already invested in setting up the facility and we are eager to invest more in technology and capacity enhancement. However, manufacturing is not just a transaction but has to be looked at from a long-term horizon,” Khanna added. Tata Power Solar, a wholly-owned subsidiary of Tata Power, has commissioning over 425 MW rooftop projects, over 5.4 GW large projects, and more than 25,000 installations of solar water pumps across the country.

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Rs 90,000 crore scheme in offing for power companies The loans are sought to be made available to Power Finance Corp (PFC) and REC Ltd, the two sectoral lending institutions in Indian power sector, for onward concessional lending to state electricity distribution utilities to help them clear bills of power generating companies. The power ministry has sought bonds mainly normal as well as a special window provided by the Reserve Bank of India for large NBFCs, funds from institutions like EPFO, NSSF, LIC and multi-lateral agencies as well as external commercial borrowings, another official said. RBI last month announced Rs 50,000 crore capital support for National Housing Bank, National Bank for Agriculture and Rural Development and Small Industries Development Bank of India at 4.4% repo rate. The official added that banks can lend 25% of their net worth to PFC and its group company REC. For raising a large amount of fund for the liquidity infusion scheme, the limits will have to be revised, he said. As per the proposal, PFC and REC will launch a special loan product to specifically help discoms clear the power generatorsâ&#x20AC;&#x2122; bills. The special loans from PFC and REC are proposed to be paid directly to power plants to clear over Rs 88,000 crore dues on behalf of the discoms.

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he two companies will tap on liquidity infused in the banking system by the central bank as well as cheaper funds for which finance ministry nod has been sought. The Rs 90,000 crore scheme is likely to be implemented in phases spanning over a couple of months. The special concessional loans are proposed to be given to discoms for a period of 10-15 years and are likely to come with a moratorium on principal. The loans will be secured with state government guarantees along with budgetary support under the state budget, the official said. PFC and REC will pay the power plants on behalf of the distribution discoms and these will show as debt on the books of discoms. The states will have to agree to undertake commercial loss reduction trajectories, prepare proper energy accounting systems and action plans to reduce financial losses and bring in operational efficiencies.

MAY- 2020

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World’s Largest Solar Project Will Also Be Its Cheapest Abu Dhabi has set a global record-low solar price as authorities confirmed the winning bid in a 2-gigawatt tender. Upon its expected completion in mid2022, it is slated to be the largest single-site solar energy project in the world.

he Al Dhafra project had five bidders, with the lowest offer coming in at 1.35 U.S. cents per kilowatt-hour. The state-run Abu Dhabi Power Corporation (ADPower) confirmed to GTM that the leading consortium consists of French energy giant EDF and the projects division of Chinese solar manufacturer Jinko Solar. ADPower will now negotiate a 30year power-purchase agreement with EDF/ Jinko. If an agreement cannot be reached, ADPower, part of the Emirates Water and Electricity Company, can negotiate with the second-best bidder. EDF declined to comment when contacted by GTM. French utility Engie, Japan’s Softbank and Saudi Arabia’s ACWA Power, which has won a string of large projects in the region, were among the final five shortlisted bidders.

In the case of Al Dhafra, the winners will keep a 40 percent stake and receive a 30-year PPA contract that includes, construction, procurement, and operations and maintenance duties. There are numerous factors behind the ever-lower prices for solar in the Middle East, including great solar resources, large and flat sites, cheap-to-zero land costs, massive scale, and the cheap finance that comes with a 30-year PPA with a petrostate as the offtaker. Both JinkoSolar and EDF have strong track records in the United Arab Emirates. Jinko developed the 1.2-gigawatt Noor Abu Dhabi project in partnership with Marubeni, which came online last year. EDF has teamed up with UAE energy company and investor Masdar on a variety of projects, from solar thermal deployment in North Africa to an energy services company serving the whole region.

Why solar prices are so low in the Middle East

Big orders for the coronavirus-hit solar sector

The Gulf states have had more than their share of record-low solar prices of late. In November, Abu Dhabi’s neighboring emirate Dubai claimed the title with a 1.7 U.S. cents deal with ACWA Power for the next 900 megawatts of its Sheikh Mohammed bin Rashid al Maktoum Solar Park. The facility started in 2013 with 13 megawatts of First Solar panels and is working its way up to a targeted 5 gigawatts by 2030. Then in January, Qatar went even lower with a bid of 1.6 cents per kilowatt-hour. That project was won by French oil firm Total and Japanese conglomerate Marubeni. Now, three months later, the record looks set to pass back to the United Arab Emirates. Tenders in the Middle East and North Africa region usually see the state take majority ownership of the project.

MAY- 2020

So far, large solar tenders in the Middle East have motored on despite the current crises hitting the energy sector. Saudi Arabia is currently holding a 1.2-gigawatt solar energy tender of its own. First Solar, ACWA Power, Jinko, EDF and Marubeni are among the participants (PDF). For module suppliers, such monster deals can fill a significant hole in their order books. The global module market is moving toward an oversupply situation, as Chinese factories ramp back up even as many key markets remain in lockdown. A recent survey of inverter and module manufacturers by the Global Solar Council found that 40 percent of companies queried had seen orders fall 50 to 100 percent compared to last year due to COVID-19.

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Power minister proposes a new scheme worth Rs 3 lakh crore to finance commission

Officials of the power ministry discussed the need to restructure the power system to make states responsible for the financial health of their power distributions companies (discoms), with the NK Singh-led FC. Power minister RK Singh proposed a new scheme for the power sector amounting to Rs 3 lakh crore spanning five years, in his meeting with the 15th Finance Commission (FC)

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fficials of the power ministry discussed the need to restructure the power system to make states responsible for the financial health of their power distributions companies (discoms), with the NK Singh-led FC. This would entail recalibrating state borrowing limits under the Fiscal Responsibility and Budget Management (FRBM) Act, to account for the added liabilities, the press release said. The new scheme included an amalgamation of old schemes under the power ministry and focused on reducing losses in the power sector, separate feeders for agriculture and smart prepaid meters The minister also discussed policy reforms that were in the pipeline to turnaround the beleaguered power sector, including amendments to the Electricity Act. The meeting was in continuation to the recommendations the FC made on the power sector in its FY21 report released in November last year.

The FCâ&#x20AC;&#x2122;s report had noted that most states had reduced their aggregate technical and commercial (AT&C) losses and the difference between average cost of supply and average realizable revenue (ACS-ARR) after implementation of the Ujwal Discom Assurance Yojana (UDAY) in 2016-17. However, the progress was not sustainable unless systemic issues in the power sector are suitably addressed, it added. The commission will have to take into account the significant change in circumstances for the sector, including the Covid-19 and lockdown shock and the Rs. 90,000 crore liquidity injection for discoms announced by finance minister Nirmala Sitharaman, as part of the Atmanirbhar Bharat package. The FC was mandated to work out a fiscal consolidation roadmap for five financial years starting from the ongoing FY21 to FY26. Its final report is due on October 30. Earlier in May, the commission met with its committee on fiscal consolidation roadmap, that was constituted to take stock of the emerging situation and chart the way forward to review the fiscal consolidation of the general government.

MAY- 2020

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MYSUN, A Leading Rooftop Solar Platform, Raises Rs 32 Crores ($4.2 Mn)

MYSUN, a Delhi based technology platform for rooftop solar energy solutions for industry, SMEs/MSMEs and homes, has raised INR 32 Crores from its existing investors in a structured equity deal as a part of its Pre-Series A round. As the company is planning newer markets and newer business models in the short to medium term to scale up its technology, customer acquisition and nancing play, it is looking to raise Rs 250 Crores over the next few quarters.

YSUN is an end to end solar solutions and services company, backed by advanced technology and engineering with emphasis on providing tailor-made solar solutions and solar nancing solutions to industry, SMEs and MSMEs in particular, and homes/ residential customers. Its proprietary demand generation and demand aggregation tools already make it the largest online solar platform in India. MYSUN is revolutionizing the complete ownership experience of solar in India with a strong backbone of technology including AI-based tools, a one-of-its-kind advanced mobile app for on-site surveying & shadow analysis for accurate energy forecasting, and IoT tools for energy monitoring and enhanced customer experience.

The company plans to use the capital to further improve its technology infrastructure, scale up the service oerings, and expand to newer geographies, both in India and globally, including parts of Middle East, Asia Pacic and Africa. With this investment, MYSUN will also foray deeper into its in-house SME nancing solutions, catering to the unique solar nancing needs of SMEs/ MSMEs and individuals making solar ownership a hassle-free experience.

Commenting on the development, Mr Gagan Vermani, Founder and CEO of MYSUN said “We are committed to the vision to make solar energy access easy and reliable for the consumers. Our focus continues to use technology as a backbone of our business and to unlock the huge underserved consumer segments like SMEs and homes. We are happy to continue to have the condence of our investors and the patronage of our ever-rising pool of customers.”

MAY- 2020

“As the energy landscape, as well as the overall economic landscape, is changing rapidly due to the recent global events, we foresee higher and higher demand for independent solar energy systems across the B2B and B2C consumer segments around the globe over the next many years. With its innovative technology, business model and a highly experienced team, MYSUN is well placed to leverage this demand into a sustainable growth business. ”, Mr Vermani further added. Since its inception, MYSUN has already catered to millions of customers online and in the past 4 years, expanded across several states in India, with the commissioning of major projects for large, medium and small industries; homes and institutes.

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ReneSola & Prosun Sign a 150MW Distribution Agreement in Australia ReneSola, one of the world’s reputed PV module manufacturers and Prosun Solar, a standout among leading solar power equipment distributors in Australia, have announced the signing of a 150MW distribution agreement in Australia.

ince its inception in 2005, ReneSola has been operating in a number of international markets and has supplied more than 20GW in PV module capacity cumulatively worldwide. Prosun Solar, a professional and reputed company based in Australia, has been involved in the distribution of solar equipment for more than 10 years.

The Australian solar market is actually growing impressively. We have already supplied a cumulative capacity of more than 300MW to numerous Australian PV projects of various scales. Our higher wattage modules will bring down the overall project cost and add value to the PV market. We believe that together with Prosun, we will seize a good share of the Australian PV market, said Mr. Sky Wang, CEO of ReneSola Yixing Co., Ltd.

This is a long term partnership based on shared mutual business interests and the common social goal of promoting green energy products in the region. We will work closely with Prosun Solar to facilitate the development of this market with local inventory and the prompt delivery of our high efficiency and high wattage modules so that more and more companies that are involved in distributed generation can be benefited,” said Mr. Krishan Sharma, VP- Asia Pacific for ReneSola Yixing Co., Ltd.

According to Mr. Tahir, Managing Director and Founder of Prosun Solar, “ReneSola is a global brand and we are very proud to represent such fine quality products! As a company, Prosun has always demanded excellence with our quality policy and ReneSola will certainly bring further excellence to our catalogue. Our reputation in Australia is not just in adding products to our distribution chain but also to market products that will eventually become household names. I have always been an admirer of ReneSola and am looking forward to marketing their products on our continent. Prosun’s Australian reach will help ReneSola reach the heights it deserves in our part of the world!”

SunPower Secures $1 Billion in Solar + Storage Financing Through New Partnership with Tech CU

SunPower Corp. (NASDAQ:SPWR) today announced that a new $1 billion partnership with Technology Credit Union (Tech CU) will increase financing options for qualified U.S. residential solar customers. The new partnership will give SunPower access to capital for its loan program.

here will be multiple benefits for both SunPower and its customers including: Reduction of SunPower’s operating costs through lower per-watt financing fees; Streamlining of the loan application and contract signing process for customers; and Utilization of a financing platform that integrates SunPower’s sales and system design tools that give customers the ability to compare cash, lease or loan acquisition options all at one time.

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Our new partnership with Tech CU will diversify SunPower’s funding resources while providing our customers with a streamlined process and experience, said Norm Taffe, executive vice president of North American Channels. “This $1 billion commitment will also allow for tens of thousands of SunPower solar systems to be funded over the course of the next four years.”

We are pleased to add SunPower to our growing list of solar funding partners, said Deborah Crouch, vice president of Strategic Lending Partners at Tech CU. “We look forward to working with them for many years to come.”

MAY- 2020

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Including hydropower in RPO target for states to boost grid flexibility, address variability of solar and wind energy The proposal by the power ministry to include hydropower within the renewable purchase obligation (RPO) targets set for the state distribution companies will provide greater flexibility to the grid, address variability of wind and solar power and ensure the optimum utilisation of hydropower in the energy mix, according to industry experts.

enewable Purchase Obligation (RPO) makes it mandatory for a discom to purchase a certain share of power from renewable energy sources. The ministry, in Draft Electricity (Amendment) Bill 2020, has proposed to expand the scope of RPOs to include energy generated from hydro-power sources.

“The central government after consultation with the state governments, as may be considered necessary, prepare a National Renewable Energy Policy and prescribe a minimum percentage of purchase of electricity from renewable and hydro sources of energy,” the draft amendment said.

Experts say the move was long overdue for diversification of renewable portfolio in the energy mix. “We need to continuously expand the hydropower portfolio. Lately, we have not been able to give enough push to hydropower for multiple reasons; one being that water and water power are state subjects,” said Anil Razdan, a former secretary with the Ministry of Power. Describing the inclusion of hydropower in the RPO as a positive development, he said the country needs pumped hydro storage technology to further expand the scope of hydropower and for good balancing.

According to Anish De, National Head-Energy & Natural Resources at consultancy firm KPMG India, it is a positive move as hydropower is essential in the system for managing variability of the wind and solar power. “One of the biggest challenges in hydropower is the higher per unit costs but now since it has been made an obligation we can expect expedited contract execution which earlier was not the case due to higher procurement costs,” De said. The share of hydropower generation in the country’s energy mix has come down from 14.66 per cent in 2012-2013 to around 10.80 per cent in 2018-2019, according to the data available at Central Electricity Authority (CEA) website.

MAY- 2020

We earlier had provisions of regulatory determination of tariffs for hydro in the National Tariff Policy, which expired long back and we have had a policy vacuum since then. Discoms have no clarity on how to procure from hydro sources, Shubhranshu Patnaik, Partner at Deloitte India said. “The need for hydropower in balancing renewables is widely proven and the government also knows that hydropower needs to be exploited at the earliest,” he added. The government had last year approved a slew of measures including providing renewable energy status for large hydel projects and new funding provisions for them. Earlier hydro projects up to 25 MW capacity only were considered as renewables and were eligible for various incentives like financial assistance and cheaper credit. With the government’s announcement last year, hydro projects above 25 MW can also avail these benefits. Speaking on the RPO trajectories of different states in India, Patnaik said that the performance of states have been a mixed bag. Some states like Tamil Nadu, Karnataka, Rajasthan, Gujarat have done well and infact have exceeded targets, for others the challenges are more fundamentally rooted in the lack of financial viability of discoms. The draft amendment also provides for Renewable Generation Obligation (RGO) and lays down the modalities for bundling of renewable energy including hydro with thermal energy. Under RGOs, conventional plants will also produce a share of their generation from renewable energy source. A sub-section has been added in the draft amendment to address the non-compliance of renewable and hydropower purchase obligations. The penalty proposed is Rs 0.50 paise per kilowatt-hour (kwh) for the shortfall in purchase in the first year of default, Rs 1 per kwh for the shortfall in purchase in the second successive year of default and if the shortfall in purchase continues, the penalty will be charged at the rate of Rs 2/kwh for the shortfall in purchase continuing even after the second year.

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ADMIDST COVID LOCKDOWN, AMPLUS HELPS THE LOCAL VILLAGERS IN MIRZAPUR The global pandemic has severely shaken the world and has had catastrophic effects on livelihood of millions across the globe. It would not be wrong to say that in case of India, the maximum brunt of the unprecedented scenario is being faced by the poor labourers and daily wage workers. Amidst these dark times when life as we know it has come to a slow-down, citizens and corporates are uniting to provide rays of hope which can better the situation of the people in dire circumstances.

mplus Solar is one such organisation that came forward for the community of Gurudev Nagar village in Mirzapur district when the situations worsened for the people due to inability to commute to procure common essentials. The village is situated in a remote area harboring around 350 people. Amplus reached out to these families in need by providing them ration. The distribution was carried out in association of the District Magistrate and with the help of the local police. The village is in the vicinity of Uttar Pradesh’ first Open Access Solar park of 75 MWp owned by Amplus. This was in continuation of Amplus’ efforts to contribute to the local community and not just provide green energy through setting up and operation of Solar park.

Gensol Engineering wins multiple tenders In a BSE filing made on April 14, the company informed that they have bagged orders from Central Electronics Limited (CEL), Reserve Bank of India (RBI), Bihar Renewable Energy Development Agency (BREDA), Hindustan Petroleum Corporation Limited (HPCL) and Gas Authority of India Limited (GAIL).

etailing about the projects, Gensol Engineering stated that the project won from CEL is worth Rs 19.87 crore and it’s for setting up of an aggregate 13.2 MWp solar capacity in Maharashtra. Meanwhile, the company will also build an aggregate 3.2 MWp rooftop solar capacity at various locations of GAIL across India. This project is worth Rs 13.90 crore. Besides, other projects secured by the company includes 500 kWp grid-connected floating solar under capex model for BREDA, 2 MWp grid-connected solar plant in Bengaluru for HPCL and 100 kWp in Mumbai for RBI.

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Gensol Engineering Ltd provides renewable energy project development services and is also engaged in the construction of solar plants in India. The stock of Gensol Engineering Ltd is trading at Rs 85.00, up by 1.01 per cent against its previous close of Rs 84.15. Its 52-week high is recorded at Rs 89.50 while, its 52-week low is Rs 77.50 on BSE.

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72MW of LONGi high efficiency Mono PERC modules deployed at the world’s biggest solar park at Karnataka’s Pavagada, India In cooperation with India’s ReNew Power, the world’s leading solar technology company LONGi has supplied 72MW of its high efficiency Mono PERC modules to the Pavagada Solar Park, the world’s biggest solar park, in Karnataka’s Pavagada.

he Pavagada Park, located in the Tumakuru district of Karnataka and developed by the Karnataka Solar Park Development Corporation (KSPDCL), a joint venture between the Solar Energy Corporation of India (SECI) and Karnataka Renewable Energy (KREDL), is now fully operational and generating power. ReNew Power won the bid to build a 300MW solar plant as part of the Pavagada Solar Park in 2018. ReNew had initially planned to use polycrystalline modules, but later decided to opt for deployment of Monocrystalline PERC modules in significant portion of the Plant. This was in recognition of high efficiency and LCOE optimization characteristics of Mono PERC technology. With a total capacity of 2,050 MW, the Pavagada Solar Park was conceptualized in February 2015 and began construction in January 2016, spanning over 13,000 acres of land. The park is divided into eight blocks, each of 250 MW, and has dedicated high voltage supply lines, pooling stations, and a pooling substation for evacuation. LONGi signed a framework agreement with ReNew in late 2019 to supply its newly released HiMO PERC modules for installation at various other sites in India developed by the company.

ReNew plays a pivotal role in meeting India’s growing energy demands. We believe that the ongoing cooperation with the company will deliver more clean energy to India and further improve the sustainable development of renewable energy in the world.” said Zhong Baoshen, Chairman of LONGi Group. ReNew Power, established by Sumant Sinha in 2011, is India’s largest renewable energy IPP (Independent Power Producer), with capacity of more than 8GW, (commissioned and in pipeline). LONGi started cooperation with ReNew in 2017 and had, by mid-2019, supplied the company with 100MW of solar modules.

India has great potential to ramp up solar power generation in the near future and the framework agreement is expected to inject new momentum into the solar market in the region. This agreement represents a “win-win” situation for the two leading solar companies, and will effectively accelerate the development of renewable energy in India and the world, said Sumant Sinha, Chairman & MD, ReNew Power.

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What the Pandemic Means for Large-Scale Indian Solar Power Projects Still in the Pipeline While the ministry of new and renewable energy has offered some relief, the pandemic has exposed structural issues that canâ&#x20AC;&#x2122;t so easily be smoothed over by a relief package. With the International Monetary Fund (IMF) declaring a global recession, many sectors of the Indian economy are also facing the heat of COVID-19.

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critical sector caught in the grip of this socio-economic and humanitarian crisis is the solar energy sector. As the climate change narrative gains significance globally, thanks to the lockdown also, it becomes imperative that the Indian policymakers understand the structural issues hampering the growth of the solar energy sector. India has vowed to become a global leader in the solar energy space. Be it forging multilateral alliances like the International Solar Alliance (ISA) or setting impressive targets for domestic solar generation, the importance of this sector for the government is evident from its efforts. The nation also enjoys the natural advantage of having abundant solar-radiation and thus, the solar energy potential.

As per calculations by the National Institute of Solar Energy in India, the country has a solar potential of 750 GW, of which 142 GW is available in the state of Rajasthan alone. This, when read with the installed capacity of around 36 GW (4.8% of the total solar potential) points towards the need to assess the structural challenges behind the lagging pace of solar uptake in the country. Furthermore, we will need a disaggregated approach i.e. to look at states individually and then sum the total. The ongoing pandemic has exposed issues related to the economic resilience of solar development in India. The Ministry of New and Renewable Energy (MNRE) has stepped in to provide immediate relief to the solar developers by asking discoms to make timely payments for any solar power injected into the grid. However, the discoms and many solar developers have reportedly invoked the force majeure clause of their existing Power Purchase Agreements (PPAs) to express their inability to honour the contracts. In this context, given that around 29 GW of solar capacity in India is still in the pipeline, let us take a step back to assess some of the structural issues exposed by the COVID-19 pandemic.

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featured Firstly, the large scale dependence of domestic solar developers on global markets has affected the supplychain of solar modules, inverters and other raw materials from other countries, particularly China. This highlights the need to strengthen the domestic manufacturing industry for producing the range of essential inputs required for solar plant development.Also, given that the timing of the lockdown in India coincides with the end of the financial year, clearing of bills and inventory management is expected to be disrupted. This puts the smaller players at a disadvantage owing to better inventory management capacity of large-scale developers. Any relief measures or future solutions should take into account this inherent competitive disadvantage of smaller players and provide them with some affirmative action assistance. Secondly, the financial consequences of COVID-19 for solar project developers and power utilities are also significant. The mere impact of depleting value of Indian rupee points towards a cash-flow crunch for the solar developers owing to their import bills of raw materials. On top of it, the payment relief ordered by the MNRE, Ministry of Finance and many state governments for solar developers, utilities and other consumers will eventually create a bubble of cash flow crunch amongst the contracted parties of solar power agreements. Thirdly, with tighter cash flows of solar developers and utilities, it is expected that their payment obligations to the contracted parties, be it utilities or private consumers or EPC contractors (Engineering, Procurement & Construction), will be adversely affected. This will further add to the structural bottlenecks of financial inefficiencies in the power sector in general. In other words, the balance sheets of discoms, generating companies and solar developers will take a hit owing to the financial implications of COVID-19 in the solar power market. Finally, with the stalled on-site construction work, the developers are expected to overshoot their timeobligations of completing the commissioned projects within time. The construction workers across the state are going back to their homes as was seen in the early days of MGNREGA. This casts a shadow of uncertainty over labour availability post the lockdown period for such construction activities. It can potentially overshoot the time required for completing the under-construction projects by months. This becomes all the more worrying considering that a two-month delay from April 2020 would mean that status-quo would be achieved by July 2020, which marks the onset of monsoon in the northern half of India.

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Also, time and cost overruns would push many projects into becoming Non Performing Assets for which a robust insolvency and resolution regime is a must. The inevitable response to these aforementioned issues seems to be a financial restructuring or relief package. But as evidence from the power sector in India suggests, financial restructuring packages fail to achieve an economic turnaround of the sector as long as basic structural issues are addressed. As an immediate response, a financial relief package for the concerned entities could be beneficial. But in the long-run, focused efforts, with a must-do attitude, to address core issues are required for the solar energy sector, some of which are highlighted here. First and foremost, the monitoring of the progress of various solar projects in the construction phase should be done regularly to inform the different targets set up by the respective state governments. The solar adoption targets should be aligned with the solar potential of each of the states, to ensure that there is an equal geographical distribution of investments and economic opportunities in the development of solar projects across India. For the effective resolution of litigations and insolvency cases related to the renewable energy sector, specialised policy and institutional mechanism should be in place. Currently, the litigations are handled by the central and state Electricity Regulatory Commissions (ERCs), the Appellate Tribunal for Electricity (APTEL), the National Green Tribunal (NGT) and the judicial system of the country. This complicates the resolution process and further reduces the investorâ&#x20AC;&#x2122;s confidence as well as the investment climate in the solar sector of the country. Furthermore, to boost investment in this sector, it is crucial to carefully draw the contracts between solar developers and utilities. The first step in this regards could be to undertake effective risk-assessment of any project before signing the contract and commissioning the development of the solar plant. In addition to this, concerted efforts should be made to strengthen the current governance ecosystem of solar development policies in India. This includes ease of availing regulatory approvals and policy benefits, supply-side issues hindering the manufacturing and construction activities, land acquisition regime, administrative factors and demand-side factors. In addition to these, worker welfare measures and workplace safety are equally important in ensuring a productive labour market for such economic activities.

In this scenario, PPP in its real sense becomes more than important as the government would depend heavily on the private players to lift the economy. Though the government can only provide some relief and financial support and ease the structural process and procedures, it is the private player which has to take the burden to put things in order in a realistic time frame with all its efficiency and management abilities. Power sector which is already under stress cannot afford to let the situation go out of control and make every effort possible to overcome the situation.

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COVID-19: MNRE to promote local manufacturing, export hubs for renewable energy In a bid to minimise the impact of COVID-19 pandemic on the heavily import-dependent domestic solar industry, the Ministry of New and Renewable Energy (MNRE) has asked state and port authorities to identify land sites suitable for renewable energy manufacturing and export services hubs.

n an earlier tweet, Kumar had said that the ministry would provide full support to companies planning to expand or set-up bases in India for All states and ports are manufacturing and export of services in the renewable energy sector. requested to identify Many solar industry executives have been saying that the pandemic land parcels of 50-500 and its resultant lockdown will impact their business operations in the acres for setting up future. Hence, this step comes as a relief as far as local manufacturing of renewables is concerned. The ministry has also extended the deadline for renewable energy the approved list of models and manufacturers by six months to provide manufacturing and some relief to renewable energy firms that are under stress due to the export services hub, COVID-19 crisis. The earlier deadline was March 31. The Economic Times in a report said Anand Kumar, secretary, MNRE, in a last week had said that the government has no plans to slash its target of achieving 175 gigawatt of renewable energy capacity in the country by 2022 in the wake of the twitter post recently. virus outbreak and the nationwide lockdown.

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Adani Green plans Rs 10,000 crore capex for FY21 to build wind, solar plants Adani Green Energy Ltd plans to spend Rs 8,000 crore and Rs 10,000 crore to build between 1,100 MW and 1,500 MW respectively of wind and solar power plants in financial year 2020-21. As per a report by The Hindu Business Line, citing company’s CEO, Jayant Parimal, nearly Rs 7,000 crore of the amount will be financed by debt raised from domestic lenders. Later, through a green bond issue, the debt could possibly be refinanced, hinted Parimal.

dani Green is building 1,280 MW of wind, 475 MW of solar and 1,690 MW of hybrid plants, which will add to its existing portfolio of 2,545 MW — including the 2,148 MW under the JV with TOTAL, the report said. Asked if the COVID-19 crisis had disrupted the supply of solar modules, as Adani Green buys these modules from China, Parimal said the company had faced only a limited impact because it did not have too many projects under construction at that time.

In a statement issued on May 4, the company’s chairman Gautam Adani said that green and renewable energy-motivated investments will continue in this fiscal year. The company on May 4 posted a consolidated net profit of Rs 55.64 crore for the March 2020 quarter, helped by lower expenses.

The clean energy firm had logged a consolidated net loss of Rs 94.08 crore in the corresponding quarter a year ago, a company statement said. Its total income stood at Rs 718.66 crore for the quarter under review as against Rs 718.73 crore a year earlier. On a full-year basis, the company reported narrowing of consolidated net loss at Rs 67.96 crore in 2019-20. In 2018-19 fiscal, its net loss was Rs 475.05 crore. Total income for 2019-20 stood at Rs 2,629.07 crore, as compared to Rs 2,130.99 crore in 2018-19.

Bangladesh launches US$218.7m Green Transformation Fund to facilitate import of environment-friendly products, says GlobalData Bangladesh has introduced a US$218.7m (€200m) Green Transformation Fund (GTF) to provide soft loans to solar developers, other environmentfriendly products and Eurozone’s energy efficiency components’ importers. This is in addition to the existing US$200m fund to offer soft loans for dollar-denominated imports, says GlobalData, a leading data and analytics company.

Somik Das, Senior Power Analyst at GlobalData, comments: “The decision to introduce a fund was taken to support the developers and importers better-access to finance with low interest. The sectors covered under this fund are renewable energy and energy efficiency, water conservation and management, waste management, resource efficiency and recycling.

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“Access to low interest loans will be a much needed relief, especially post-COVID-19 as projects may be delayed due to liquidity and supply chain issues. Soft loans will be of great significance as renewable companies (developers and importers) get access to funds at lower interest rates, which may help them to sail through the difficult times.” However, the 3% margin (1% by central bank and 2% by authorized lender) covered by the lender and central agency in post-COVID market scenario may not give complete relief to the developers

who are already facing a lot of adverse market conditions. It is expected that equipment costs will be higher due to the supply chain issues and this may result in higher upfront costs than earlier. The lower interest rates offered under GTF may not be able to offset the impact of increased equipment costs. Das concludes: “The Central Bank and authorized lenders may closely follow the after-effects of the pandemic and reduce their margins if needed, to be able to provide any further relief necessary to the industry borrowers. This will help in the rebound of not just the industry in particular but the economy as a whole.”

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Solis to Raise $100M and Double Production Capacity

String inverter leader builds new factory to meet global demand for solar inlong Technologies (Stock Code: 300763.SZ), a global leader in photovoltaic string inverter manufacturing, announced plans to raise over $100M USD (» 700M Chinese Yuan), through a non-public offering to finance the expansion of its manufacturing capacity. Facing a rise in the global string inverter market, Ginlong will use these funds to double its production capacity of Solis products to 20GW per year. This expansion will enable Solis to boost its supply to grid-connected and solar-plus-storage projects for customers world-wide.

The demand for our ultra-reliable Solis inverters has driven this push to double our capacity, says Yiming Wang, Ginlong President. “We are seeing a boost in demand for string inverters over other technologies due to its cost-competitiveness and reliability. This doubling of our production represents an exciting milestone for Solis.”

The expanded factory will add 1,000,000 square feet to its existing facility in the Binhai Industrial park, bringing the company’s total capacity to 20GW. Construction plans include a new state-of-the-art R&D center, high-volume production lines equipped with advanced automation machinery, increased warehousing capacity and new offices. A new corporate campus includes state-of-the-art offices, a multi-functional conference center and apartments for dedicated personnel. “Our new corporate campus will add more than 500 new jobs to the Solis team, bringing in fresh talent and new ideas to boost innovation and drive growth,” adds Wang. Ginlong raised 533 million yuan during its IPO on the Shenzhen Stock Exchange in March of 2019, making it the only publicly-traded company focused exclusively on PV string inverters. Solis has since experienced strong demand fueled by residential, commercial and utility solar markets across Asia, the Americas and Europe. In Q1of this year the company reported its strongest quarter ever with first quarter profits up 766% from 2019.

Quote: Mr. Sanjeev Aggarwal Founder and CEO – Amplus Solar The liquidity problem of Distribution companies has become exacerbated due to Covid scenario. However, we need to be conscious of the fact that this again is going to be a temporary solution to the ailing power sector where long term reforms in terms of content and carriage separation are required and we need to provide the consumers a choice of their electricity supplier. This immediate liquidity injection will probably help many of the generation companies from being in a severely stressed situation

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Why Covid-19 Won’t Kill The Renewable Revolution

“By the end of the coming decade we will be on one of two paths. One is the path of surrender, where we have sleepwalked past the point of no return, jeopardizing the health and safety of everyone on this planet,” the Secretary-General of the United Nations’ Climate Change Conference COP25 told his audience last December. “Do we really want to be remembered as the generation that buried its head in the sand, that fiddled while the planet burned? The other option is the path of hope.” The global economy has already been on a trajectory toward greening its energy sources and (very) slow and steady decarbonization. But for all the progress being made, the global energy industry has not been changing nearly fast enough to meet the benchmarks set by the Paris agreement, and, by the assessments of many experts, will not be enough to avoid the negative consequences of climate change. The world’s premier authority in the matter, the Intergovernmental Panel on Climate Change (IPCC), has compiled a damning report which shows that in order to keep global warming within 1.5 degrees Celsius above average pre-industrial temperatures, the world would have to cut carbon emissions down to zero by the middle of the century – a feat that seems all but impossible in any scenario even close to business as usual.

his is exactly why the novel coronavirus pandemic, a global tragedy that is both a health and economic disaster of historic proportions, is being seen by some as a harbinger, not of doom, but of positive change. The COVID-19 pandemic has made business as usual an impossibility as the global economy has ground to a halt and markets have gone haywire, with oil even plunging into negative pricing, with the Brent Crude Intermediate benchmark reaching nearly -$40 per barrel last month. The World Economic Forum has questioned whether this disruption could bring a “new energy order” and a Forbes headline proclaimed that “In A Post-Pandemic World, Renewable Energy Is The Only Way Forward.” And, while the huge decline in energy demand due to the novel coronavirus pandemic has caused oil and gas prices to plummet, there have been some benefits for the renewable energy sector. “As shutdowns aimed at stemming the viral spread have caused global energy demand to plummet,” says Yale, “renewable sources have accounted for an increased share of power generation. That is in part because of the low cost of solar and wind power means they are often dispatched to grids before other sources such as coal and nuclear power.” Despite this silver lining, however, the green energy revolution has been slow to spark. “Now, the virus-induced economic shock is likely to slow the expansion of wind, solar, and other clean power sources, at least temporarily, experts say,” writes Yale Environment 360, citing a report by the International Energy Agency (IEA). “But while lockdowns, social distancing requirements, and financial uncertainties have put some new projects on ice, the underlying strengths of renewables remain strong, and analysts expect their economic advantage over volatile fossil fuels will only increase in the long term.” But that all depends on how policymakers and world leaders choose to go forward. “Which means 2020 is shaping up to be a pivotal moment for renewables — and the world’s hopes of checking warming.”

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But for now, the renewable energy sector is plagued with many of the supply chain failures that have plagued so many other industries during the pandemic, meaning that the growth of renewable energy capacity has slowed just when we need it to be increasing exponentially on the eve of climate change tipping point. “We were expecting a boom year” in 2020, IEA senior renewables analyst Heymi Bahar told Yale. “So this becomes very bad timing.” Adding to the difficult future prospects of the clean energy revolution, “COVID-19 could bump climate change down the list of leaders’ priorities.” But if these leaders do take the chance to invest in a cleaner tomorrow, Yale has a number of recommendations of how it could be done. Since solar and wind have become competitive and have outgrown direct subsidies, “they would benefit from upgrades that make power grids smarter and more flexible, and therefore better able to utilize renewables. Spending to expand electric vehicle charging networks is essential, too.” The list of recommendations also includes improved access to credit for the renewables industry, which lacks the capital of fossil fuels, policy changes including “national, long-term carbon-cutting commitments” and green stimulus initiatives to create clean energy jobs to address the current unemployment crisis. As countries begin to reopen, will leaders take advantage of this rare pause in the international economic momentum? Do we aspire to return to the status quo that was leading us to what the IPCC says is surely environmental and climate devastation? Or do we seize the opportunity to course-correct?

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Sumant Sinha – CMD ReNew PoweR Quote on Financial Relief for Power sector

The 90,000 cr liquidity infusion into discoms will breathe fresh life into the power sector and protect distribution companies from going bankrupt. This money will help the discoms to repay most of the Rs 92,000 crore outstanding payments that they owe to power generators, restarting the virtuous cycle of liquidity, higher investments and rapid growth for the power sector. This may also be an opportune time for the government to convince states to expedite distribution sector reforms so that distribution companies don’t need a bailout next time and are able to become financially viable entities.

Lockdown adds Rs 132 crore to AP Transco savings AP Transco announced that the corporation has managed to save Rs 132 crore in the last month with the lockdown in place. According to officials, all high cost conventional sources of energy have been kept under reserve shutdown. Bulk consumers, such as industries, railways, commercial establishments, HT consumers, function halls, malls and theatres are shut and only critical healthcare, government offices and domestic and agriculture loads are being serviced by the grid.

n a bid to ensure uninterrupted power supply, all thermal stations have been asked to stock coal for meeting exigencies for May. Currently, peak demand in the state has fallen from 11,000 megawatts (MW) to 8,500 MW and minimum demand is pegged at 6,000 MW instead of 8,000 MW during this time of the year. All high cost conventional energy sources have been kept under reserve shutdown and these thermal stations have been asked to stock coal for meeting the exigencies. As of date, the Genco stations have stocks that are sufficient for two to three weeks of operation. Vijayawada Thermal Power Station (VTPS) has a buffer for 18.93 days, Rayalaseema Thermal Power Station (RTPP) for 27.65 days and Krishnapatnam units have stocked coal for the next 14 days. Officials said continuous availability of coal, fall in international gas and oil prices have ensured adequate supply while demand is hovering at 65 to 70% of the usual peak loads experienced in summer.

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After exhausting all must run stations like hydel, wind, solar and nuclear, central generating stations (CGS) and gas stations are operated as per the grid demand and strictly as per the merit order and retail supply tariff orders as approved by the APERC,” joint managing director of AP Transco, KVN Chakradhar Babu stated.

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Plunging cost of wind and solar marks turning point in energy transition – IRENA Plunging costs of renewables mark a turning point in a global transition to low-carbon energy, with new solar or wind farms increasingly cheaper to build than running existing coal plants, according to a report published

he International Renewable Energy Agency (IRENA) said the attractive prices of renewables relative to fossil fuel power generation could help governments embrace green economic recoveries from the shock of the coronavirus pandemic.

We have reached an important turning point in the energy transition,Francesco La Camera, director-general of IRENA, said in a statement. Although scientists say the world needs to stage a much faster transition to mitigate the worst impacts of climate change, the annual report by the Abu Dhabi-based agency shows that wind and solar are increasingly competitive on price alone. More than half of the renewable capacity added in 2019 achieved lower power costs than the cheapest new coal plants, the report found. Auction results also suggest that the average cost of building new solar photovoltaic (PV) and onshore wind power now costs less than keeping many existing coal plants running, reinforcing the case for phasing out coal, the report said.

The authors also calculated that the world could save up to $23 billion of power system costs per year by using onshore wind and solar PV to replace the most expensive 500 gigawatts of coal-fired power, mostly found in China, India, Ukraine, Poland, South Korea, Japan, Germany and the United States. Such a switch would also reduce global carbon dioxide emissions by about the equivalent of 5% of the total CO2 emissions in 2019, the report found. Next year, up to 1,200 GW of existing coal capacity could prove more expensive to operate than the cost of building new utility-scale solar PV farms, the report found.

NTPC to appoint professional CEO for distribution biz NTPC, the country’s largest electricity generator, has started scouting for a professional CEO to oversee its power distribution business where the company plans a big foray.

t has issued advertisements in media for the appointment of a CEO asking qualified professionals to apply for the position that will offer best in the industry pay and allowances and provide opportunity to deserving candidates to run the distribution operations of the conglomerate for a fixed tenure of three years. The NTPC has plans to expand its distribution business taking advantage of the recent government announcement to privatise such operations in the union territories while asking state governments to also pursue the reform initiatives to strengthen the power sector. It is looking for both bidding for distribution licences as well as acquire prospective companies having established operations in the segment. In this regard the company has written to Delhi Electricity Regulatory Commission (DERC) inform you that NTPC has decided to foray into distribution sector and is keen on acquiring the distribution assets in the state.

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NTPC’s maiden entry into power distribution was by forming a 50:50 JV company ‘KINESCO Power and Utility Private Ltd.’ with Kerala Industrial Infrastructure Development Corporation (KINFRA). It is already distributing power in KINFRA owned industrial theme parks. The company formed NTPC Electric Supply Company Ltd. (NESCL) in 2002 as its wholly owned subsidiary with the objective of making a foray into the business of distribution and supply of electrical power, as a sequel to the reforms initiated in the power sector. The company was also mandated to take up consultancy and other assignments in the area of the Electrical Distribution Management System.

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Huawei, Sungrow and SMA Were the Top Solar Inverter Players in 2019 Huawei, Sungrow and SMA remained the solar inverter market leaders for the fifth year running, based on a new Wood Mackenzie report on the inverter market in 2019. These top three vendors have now held the same positions from 2015 to 2019.

imer (ABB) saw the most significant market gains last year, a result of its acquisition of ABB’s PV inverter line. Fimer is now the fifth-largest solar PV inverter vendor globally, climbing into the top 10 for the first time. Power Electronics maintained its first-place ranking in the U.S. market in 2019, although the company lost market share to Sungrow.

ITC safe-harboring and a rise in retrofits

Global PV inverter shipments grew by 18 percent year-over-year last year despite a slight contraction in the inverter market in AsiaPacific, which is the largest inverter market globally. Two main factors drove global inverter market growth in 2019. First, vendors sent a wave of shipments to the U.S. last year as developers safeharbored inverters and other equipment so their projects could claim Investment Tax Credit eligibility prior to the 2020 stepdown.

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Second, a rise in solar PV inverter retrofits contributed to the market’s growth last year, as asset owners and operations and maintenance teams sought to replace legacy inverters that had reached the end of their lifespan.

Market concentration similar to 2018 This time last year, the top five solar PV inverter vendors had just seen their combined market share slip for the first time since 2013. New data shows that in 2019, the top five vendors’ market concentration slipped again, though only by a percentage point — to 56 percent of the global market. The top 10 global PV inverter vendors held 76 percent of the market in 2019, the same percentage as last year. The concentration of the top 10 has been relatively flat since 2015, hovering around 75 percent.

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Consumers get 42 per cent cheaper power on average at real-time market on first day of trade at IEX

The average power tariff in the real-time market trade at India Energy Exchange (IEX) on the first day of operation stood at Rs 1.55 per unit, 42 per cent cheaper than the day ahead market, official data showed. Real-time market (RTM) enables consumers, including distribution companies (discoms) and captive users, to buy power on exchanges just an hour before delivery.

he average price discovered on day one was Rs 1.55 per unit, the auctions saw the price go as low as Rs 0.10 per unit on the platform, IEX said in a statement. According to the IEX data, the average price of power in the day ahead market (DAM) trade on May 31 for delivery on June 1, was Rs 2.68 per unit. Similarly the average tariff of power at DAM trade on June 1 for delivery on June 2 was Rs 2.2 per unit. The new market segment was operationalised at the IEX platform at 10:45 PM on May 31, 2020 for delivery at 12:00 AM on June 01 (Sunday midnight), 2020. The real-time market traded 3.41 MU (million units volume in 48 auction sessions on day one of the launch. However, the trade volume in DAM was 163 MU for delivery on June 1 and 119 MU for delivery on June 2.

The platform witnessed a significant sell side liquidity at about 10 times of the total buy volume leading to very attractive prices for the buyers, the IEX statement said. IEX said, “this (availability of power and low price) reinforces IEX’s belief that real-time trading of electricity would significantly help utilities and open access consumers manage power demand-supply variation and meet 24×7 power supply aspirations in the most flexible, efficient, and dynamic way.

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The real-time market will support the utilities in reducing dependence on grid deviation framework, reducing penalties and enable a safe and secure grid, it noted. The real-time market will make the power market more dynamic by enabling trade in electricity through 48 halfhourly closed double-sided auctions during the day, with delivery of power within one hour of closure of the bid session, it added. Earlier, consumers including discoms and captive users, were able to buy power a day prior in the DAM on the power exchanges where trading is done for two hours daily from 10 am to 12 noon. The main purpose of introducing a real-time power market is to deal with renewables interference and better portfolio management by power generation companies (gencos), discoms and other consumers. With more and more renewable energy capacity being added to power grids, there would be need for sudden ramp-up and downsizing of supply. Consumers can plan their energy supplies in a better way and gencos would be able to increase or decrease their output accordingly using the RTM facility. The RTM will optimise generation resources and facilitate generators and discoms to sell surplus power efficiently with next day payment cycle. Apart from IEX, Power Exchange of India Ltd (PXIL) also launched RTM on its platform from June 1.

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s per a report by The Hindu Business Line, citing company’s CEO, Jayant Parimal, nearly Rs 7,000 crore of the amount will be financed by debt raised from domestic lenders. Later, through a green bond issue, the debt could possibly be refinanced, hinted Parimal. Adani Green is building 1,280 MW of wind, 475 MW of solar and 1,690 MW of hybrid plants, which will add to its existing portfolio of 2,545 MW — including the 2,148 MW under the JV with TOTAL, the report said. Asked if the COVID-19 crisis had disrupted the supply of solar modules, as Adani Green buys these modules from China, Parimal said the company had faced only a limited impact because it did not have too many projects under construction at that time.

In a statement issued on May 4, the company’s chairman Gautam Adani said that green and renewable energymotivated investments will continue in this fiscal year. The company on May 4 posted a consolidated net profit of Rs 55.64 crore for the March 2020 quarter, helped by lower expenses. The clean energy firm had logged a consolidated net loss of Rs 94.08 crore in the corresponding quarter a year ago, a company statement said. Its total income stood at Rs 718.66 crore for the quarter under review as against Rs 718.73 crore a year earlier. On a full-year basis, the company reported narrowing of consolidated net loss at Rs 67.96 crore in 2019-20. In 2018-19 fiscal, its net loss was Rs 475.05 crore. Total income for 2019-20 stood at Rs 2,629.07 crore, as compared to Rs 2,130.99 crore in 2018-19.

RENOM crosses 1000 MW under its Operations and Maintenance business

The Operations and Maintenance sector is one of the most flourishing verticals in the energy sector but at the same time hugely competitive as well. n enterprise needs skilled manpower, infrastructure, and innovative practices to sustain in this fiercely competitive market. RENOM, part of Sanjay Ghodawat Group, is one such company that is making impressive inroads in O&M business verticals with its unique O&M strategies and unparalleled capabilities. Since its inception, the company is making headlines and gaining the trust of its customers by offering O&M services of international standards. Recently, RENOM has achieved one more impressive feat. It crossed 1000 MW under its maintenance. RENOM is the first real ISP (Independent Service Provider) in its true sense rendering comprehensive O&M services on par with an OEM to reach this momentous milestone in India. In fact, it is the only ISP to have multi-technology (all variants available in the wind market) and multi capacity turbines under comprehensive O&M contract. It specializes in O&M contracts that cover all aspects of the asset that would minimize risks and maximize profits for the customer. The company meticulously plan and efficiently execute O&M strategies to ensure equipment longevity, reliability, safety, and energy efficiency. Comprehensive O&M services, semi comprehensive O&M services, non-comprehensive O&M services, technical consultancy services, SCADA solutions, and wind turbine rotor blade inspection & repair services are some of its key services under O&M. RENOM is a pioneer in asset digitation and has collaborated with many technology giants to empower owners of energy plants to track, monitor, and analyze the real-time performance of their assets. In fact, the digitalization journey of RENOM has evolved from yesterday’s SCADA until tomorrow’s world of Digital Twin with Augmented and Virtual reality. It helps hugely in detecting the fault at an earlier stage so that blackout can be ignored with minimum maintenance time or downtime. Also, it helps greatly in achieving more efficiency, productivity and profitability.

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At RENOM, we can tailor-make O&M services that would help customers translate their vision into reality; on schedule, and within their budget. The depth of knowledge of our technical teams helps us resolve a greater range of challenges, avoiding pitfalls, making sure that the asset is maintained seamlessly, says Lakshmanan Bose, CEO – RENOM. “An effort that fuels to meet customer’s budgetary and sustainability goals while providing work efficiency and reliability." Since its inception, despite facing stiff competition from peers, RENOM has been successful in creating a niche for itself in the O&M space. Today, its expertise in the said field is well known, which is in fact admired and utilized by many industry giants like TATA Power, Hero Energy, Leap Green, Adani Power, MSPL, Emerson, Bharat Forge, GE power, Kirloskar, Ramco amongst many others. “I am very much delighted to see RENOM crossing 1,000 MW under its maintenance but our goals are much higher. We want RENOM to be the most preferred ISP in the renewable energy space in India for customers,” added Mr Ranjit Wadhokar, Partner – RENOM. “Also, our team is working in a direction to make RENOM a 5GW company by 2025 with a dominant global presence. I am confident that we will achieve this endeavour or even surpass our goals in the stipulated time in a very precise & pragmatic manner.”

MAY- 2020

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Tata Power eyes Rs 3,000-crore divestment, revamp of green assets to cut debt Tata Power Company hopes to raise about Rs 3,000 crore from divestment of non-core operations and restructuring the renewable energy business with an aim to cut debt by at around 40% this financial year.

The company, which has an installed capacity of 12,742 megawatts, hopes to raise the divestment proceeds despite the disruption caused by the pandemic, in the global economy, Chief Executive Officer and Managing Director Praveer Sinha told ET. “Our attempt is to reduce the debt to the levels of Rs 25,000 crore by the end of this fiscal year from Rs 44,000 crore; it is an indicative target. We are looking at various means to do it. We have already started our divestment process,” Sinha said.

n April, Tata Power Company completed the sale of its 50% stake in South African wind power company Cennergi to joint venture partner Exxaro Resources for Rs 660 crore. It is already in a pact to sell its stake in PT Arutmin Indonesia, and is now in talks to sell its stake in its asset in Zambia, BSSR coal mine in Indonesia and its shipping business.

“Even in this challenging environment, we received the money for our deal in South Africa. We are in the final stages of signing the deal for the sale of our shipping company and hopefully we will get the payment by June end,” Sinha said.

MAY- 2020

Over a decade ago, Tata Power invested in coal mines and shipping facilities to ensure backward integration and also diversified its global presence by investing in power assets overseas. But changes in the macro-economic environment and rising debt made the company change its strategy. The company has reduced its debt-to-equity ratio from 2.19 to 1.99 in FY20 and aims to reduce it to below 1.5 in FY21. “We will restructure our renewable energy business this year; we have not yet finalised the structure for it. But we will definitely look at de-consolidation, so that Rs 11,000 crore of debt on renewable assets moves out of the company’s balancesheet,” Sinha said. The lockdown due the pandemic has delayed the signing of agreements for revised tariff for its lossmaking Mundra unit. Sinha said that two of the key power procurers from the project– Gujarat and Maharashtra – have agreed and the other discoms are likely to get on board once the discussions resume. He also said that the government’s decision to inject Rs 90,000 crore liquidity into discoms has come as a big relief for the cash-strapped sector. “Liquidity was a challenge in the sector. The industrial and commercial consumers consume about 30-35% of our volumes but their revenue accounts for 55-60% of total revenue, so their inability to pay is impacting the discoms and restricting their ability to pay generation and transmission companies. The move to inject Rs 90,000 crore into state discoms is a welcome step as it will pump in money directly into the system,” Sinha said. Separately, Tata Power took over the management of Central Electricity Supply Utility of Odisha (CESU) management, after it emerged as the winner for bids for license to supply electricity to five circles in the coastal state.

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NTPC forms JV to set up waste to energy project State-owned power giant NTPC said it has incorporated a joint venture firm NTPC EDMC Waste Solutions for developing and operating waste to energy project.

he NTPC Ltd has incorporated a Joint Venture Company with East Delhi Municipal Corporation (EDMC) with equity participation of 74:26 respectively, in the name of NTPC EDMC Waste Solutions Pvt Ltd with the Registrar of Companies, of Delhi & Haryana on June 1, 2020, to develop & operate state of the art/modern integrated waste management & energy generation facility, the company said in a regulatory filing.

In its endeavour to transform solid waste to energy, the NTPC has collaborated with municipalities of East Delhi Municipal Corporation along with Kawas, Varanasi, Indore and Mohali. The municipal solid waste is segregated and recycled to utilise combustion fraction for power generation, production of methane gas and the residue is used for construction purpose.

Ircon inks pact with NIIFL, Ayana Power to explore opportunities in solar energy

Ircon International Ltd said it has inked pact with NIIFL and Ayana Renewable Power for exploring opportunities in solar energy sector. NIIFL and Ircon will evaluate strategic partnerships across infrastructure projects and have agreed in-principle to identify, bid and execute solar energy projects through joint ventures/consortium arrangements, as per the agreement.

“IRCON, a Miniratna Schedule -A Public Sector Enterprises has signed a Memorandum of Understanding (MOU) with National Investment and Infrastructure Fund Limited (NIIFL) and Ayana Renewable Power Private Limited (AYANA), a NIIF platform company to explore and collaborate on opportunities in the solar energy sector,” the company said in a statement.

he partnership will further consider suitable opportunities for solar energy production for Indian Railways as they intend to increase the share of renewables in their overall energy mix. This collaboration will enable execution of renewable energy projects at scale by utilising the complementary strengths of all partners, it said.

Ayana is an independent power producer with 800 MW of renewable energy projects under development. Through this collaboration, we are diversifying our business in solar energy sector. Further, this collaboration is aligned with Government of India’s policies on renewable energy sector and we believe solar energy sector has enormous opportunities. We hope our association with AYANA and NIIFL to explore projects in solar energy sector will be rewarding to all stakeholders, Ircon Chairman & Managing Director SK Chaudhary said.

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We are pleased to partner with IRCON and AYANA to invest into suitable projects in the solar energy sector. Given the vast untapped potential of this sector and our focus on making sustainable investments…,” NIIFL MD and CEO Sujoy Bose said.

MAY- 2020

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Amara Raja ties up with Gridtential Energy for bipolar battery technology Under the technology evaluation agreement, Amara Raja Batteries Limited and Gridtential Energy will assemble and test Silicon Joule bipolar reference batteries using Amara Raja’s active material to determine improvements in cycle life, energy density, battery efficiency, charging rates and manufacturing ability. Industrial and automotive battery majors Amara Raja has entered into a formal agreement with Gridtential Energy to collaborate on bipolar battery technology.

We are pleased to be working with the talented team at Amara Raja Batteries, a progressive energy storage company on the leading edge of lead-based battery technology innovation in India, said Gridtential Energy CEO, John Barton. “We believe that Silicon Joule advanced lead battery technology is a perfect fit for the Indian market, offering a high-performance, low-cost solution. We are excited by the opportunity to show that our advanced lead technology offers superior price-performance and confident that this will prove to be a successful platform for Amara Raja,” Barton added.

ridtential Energy provides nonexclusive licenses for Silicon Joule technology, enabling manufacturing partners to easily adapt their factories to provide high performing, higher voltage 24V & 48V batteries to their customers for the hybrid-automotive, low-speed EV (LSEV), energy storage system (ESS) & home back-up markets – all without giga-scale capital investments. Silicon Joule bipolar technology enables an innovative class of advanced lead batteries with silicon at its core. It is a design driven, low-cost, high-performance, patented energy storage solution that provides improved power density, cycle life, dynamic charge acceptance and wider temperature range, with up to 40 percent lower weight, while retaining full lead-battery recyclability, the company statement said.

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As an organization committed to innovation, entrepreneurship, and pursuit of excellence, Amara Raja is always interested in exploring new ways to serve our customers with advanced products.” said Amara Raja Batteries Limited Vice-Chairman and MD, Jayadev Galla. “The unique Silicon Joule Bipolar technology from Gridtential holds significant potential to deliver enhanced value to our customers. And very importantly, Gridtential helps meet our environmental commitment based on lead battery recyclability greater than 99 percent” he added.

S. Vijayanand, CEO, Amara Raja Batteries Limited commented, “We are very positive about the economic value of lead-based batteries in the Indian market and Gridtential Silicon Joule Bipolar technology can bridge the gap between current leadbased batteries and increasing demand for new energy storage applications. We look forward to seeing the results our teams can achieve working together on realizing more of the performance potential of lead-based batteries.”

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COVID-19: India added 989 MW solar capacity in Q1 2020, says report

India added only 989 megawatt (MW) of solar power generation capacity in the first quarter (Q1) of 2020 due to COVID-19 disruption, taking the total installed capacity to 37,916 MW by 31 March 2020, according to a latest report.

t added that 1,864 MW of utility scale solar capacity was scheduled to be commissioned in Q1 2020. “Actual completion at 689 MW, comprising 19 projects split between central government tenders of 257 MW, state government tenders of 415 MW, and other projects of 18 MW capacity were far below the estimate partly due to COVID-19 related disruption,” said the report titled ‘India Solar Compass Q1 2020’ by clean energy consultancy Bridge to India.

According to the report, the new capacity addition was split 70:30 between utility scale solar – 689 MW and rooftop solar – 300 MW. It added that the total utility scale, rooftop solar, and off-grid solar capacity stood at 32,176 MW, 5,740 MW and 978 MW, respectively, while the total project pipeline stood at 28,972 MW as on 31 March 2020. The government had imposed complete lockdown in commercial and business activity starting 25 March. Project construction was allowed to commence from 20 April but significant slippage in commissioning progress was likely because of constraints in equipment and labour availability, it added.

“We expect progress to be very slow in Q2 and Q3 2020 with capacity addition of only 500 MW and 1,184 MW, respectively,” said Bridge to India in its report. According to the report, rooftop solar has also been hit badly with only 300 MW of estimated capacity addition in the busiest quarter of the year. “This market may take longer to recover as consumers prioritise core business operations and conserve cash in view of the economic uncertainty. Our revised estimate for rooftop solar capacity addition over Q2 and Q3 is 360 MW,” it said. Power demand had begun to inch up gradually in January and February but then fell by as much as 25-30 per cent towards the end of March as the lockdown took effect. It added that if demand remains depressed then renewable power prospects would be seriously affected. Despite the execution slowdown, tender issuance in Q1 was high with SECI issuing 9,414 MW of tenders. Total tender issuance and auctions during the quarter stood at 14,293 MW and 8,241 MW, respectively, the report added.

IndiGrid to Buy Kalpataru Power JV Asset for Rs 310 crore Private equity firm KKR backed infrastructure investment trust India Grid Trust, or IndiGrid, has signed an agreement to acquire a power transmission asset at Jhajjar in Haryana for Rs 310 crore from current owners Kalpataru Power Transmission and Techno Electric & Engineering Company. IndiGrid aims to scale up its power transmission assets under management (AUM) to Rs 30,000 crore by 2022 and has plans to diversify into the solar power sector. In May 2019, IndiGrid received investments from KKR

This transaction is a major milestone and example of an accretive capital allocation process that KPTL has employed over the past several years. We are also progressing well on sale of other T&D assets and expect to close the same in FY21,” Manish Mohnot, managing firector and CEO, KPTL said.

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n executive from IndiGrid executive, on the condition on anonymity told ET, “IndiGrid is moving closer to the vision of having Rs 30,000 crore AUM. It already has Rs 18,000 crore of assets in the pipeline and Rs 12,000 crore have been acquired already. Third-party deals like these will add to that asset base and we aim to diversify into solar power to have 15-20% of our portfolio from that sector eventually.” This will be the second acquisition by IndiGrid from a company other than its original sponsor Sterlite Power.

and GIC, following which IndiGrid is managed by Sterlite Investment Managers which is majority owned by KKR. The pact to buy Jhajjar KT Transco Private is subject to approvals and marks the infrastructure investment trust’s first such transaction with Kalpataru Power Transmission. It is the second transaction with Techno Electric & Engineering Company, after acquisition of Patran Transmission Company Limited in August 2018. “We will continue to acquire operating assets and for that we are creating partnerships with Kalpataru Power and Techno Electric who actively bid for developing power transmission projects,” said the IndiGrid executive. Jhajjar KT Transco is an operational intra-state asset under the ‘design-build-finance-operate and transfer’ model, which evacuates power from the 1,320 megawatt thermal power plant in Jhajjar. The project has a contract for 25 years which can be extended by another 10 years. It has been operational for eight years, with a steady collection track record and receivable cycle of less than a month. IndiGrid currently has nine operating projects, which own 20 transmission lines with 5,800 circuit km length and four substations with 7,735 MVA capacity, with total AUM of Rs 12,100 crore.

MAY- 2020

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Lakhs of power sector workers protest against Electricity Amendment Bill 2020: AIPEF

Lakhs of power sector employees and engineers are protesting against the Electricity Amendment Bill 2020 and the government’s move to privatise power distribution companies in union territories, according to a statement by AIPEF. Last month, Finance Minister Nirmala Sitharaman had announced the government’s plan to privatise power distribution utilities in union territories. The power ministry also circulated a draft Electricity Amendment Bill 2020 on April 17, 2020.

Lakhs of electricity employees and engineers across the country today joined hands to observe a protest demonstration maintaining social distance against the Electricity Amendment Bill 2020 and move to privatise the power distribution in Union Territories, All India Power Engineers Federation (AIPEF) spokesperson V K Gupta said in the statement.

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ccording to the statement, power sector employees and engineers exercised their democratic right by wearing black badges and holding gate meetings in all the states and UTs, including Punjab, Haryana, Uttar Pradesh, Maharashtra, Gujarat, Assam, Telangana, Tamil Nadu, Andhra Pradesh, Kerala, West Bengal, Karnataka, Chhattisgarh, Jammu & Kashmir, Ladakh, among others. Gupta termed the Bill “antifarmer” and “anti-domestic consumer”, as it paves the way for privatization of the entire power sector in the country. After the Bill is passed, farmers will have to pay a monthly power tariff of Rs 5,000-6,000, while subsidized domestic consumers will have to pay at least Rs 8-10 per unit for consumption of up to 300 units per month, he said.

The Bill has been notified by the power ministry at a time when all forms of meetings, interactions, discussions and protests are choked. Access to affordable electricity is a right and not a luxury and burdening farmers and BPL (below poverty line) consumers with high rates is a retrograde step, he added. The Bill proposes some policy amendments and functional amendments to the Electricity Act of 2003. The quest for profit and greater commercial orientation than government-owned power distribution companies seem to be the only aim of the central government, he said. The Centre has violated the concurrent status of electricity to states by dictating on cross-subsidy, Direct Benefit Transfer (DBT) to farmers and BPL consumers, setting up of ECEE (electricity tribunal) and dictating on franchising of electricity distribution. Further, the government has moved one step ahead and issued orders to privatise the electricity systems of UTs, the statement said. The policy of cross-subsidy was introduced to provide electricity to poorer citizens and farmers at cheaper rates as compared to commercial and industrial consumers, it said. Now to abolish the crosssubsidy in a time-bound manner and proposing a DBT to such consumers by state governments will snatch away the rights of access to electricity for them, it noted.

“The Centre seeks to usurp this right of states which is totally unacceptable. It is unwise to bring legislation that would virtually finish the state sector and make the entire power supply sector dependent on private companies,” AIPEF said. In the proposed amendment, there is no political move at course correction based on experiences gained in more than one decade, for revamping the Electricity Act 2003, it added.

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Global energy leaders call for greater investment in clean electricity systems amid Covid-19 crisis Energy ministers and electricity industry CEOs from around the world have called for mobilising investments for secure and sustainable power systems to offset the impact of Covid-19 crisis on the electricity sector.

he participants in a high-level virtual meeting hosted by the International Energy Agency (IEA) recognised the critical importance of the electricity sector in response to the pandemic to keep essential services running, hospitals open and communication flowing.

Resilient electricity systems are vital for modern societies today and for a sustainable energy future, but they need much greater investment,” said IEA Executive Director Fatih Birol. The IEA’s World Energy Investment 2020 report earlier this week highlighted that global investment in the power sector is set to fall 10 per cent this year, compounding previous declines. “The drop in investment in electricity grids, an essential but often overlooked part of the shift to cleaner energy, is set to be even steeper,” said Birol.”Renewables like wind and solar will not be able to fulfil their great promise without a robust infrastructure that reliably delivers the power they produce to consumers,” he added. The discussion focused on the implications of the Covid-19 crisis for investments in the power sector that are needed to support clean energy transitions, as well as the opportunities for international cooperation and collaboration.

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Participants included 11 government ministers and nine company CEOs representing five continents and 60 per cent of the global electricity system. From India, NTPC Chairman and Managing Director Gurdeep Singh took part in the meeting. The meeting was co-hosted by the IEA and British government. It was one in a series leading up to the IEA Clean Energy Transitions Summit which will take place on July 9.

MAY- 2020

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Hike in prices of renewable certificates unnerves aluminium players

A steep escalation in prices of renewable energy certificates (RECs) has disquieted aluminium makers who are already grappling with business headwinds like depressed international prices and slump in domestic demand.

ndustry sources said there is an acute shortage of RECs in the market due to which it has become a sellers’ market. REC prices have spiked by 125 per cent over the past 12 months. For solar power, the price of RECs has soared to Rs 2.25 per Kilowatt Hour (KwH) despite tariffs of solar power averaging at Rs 2.50 per KwH since 2017-18.

It is imperative that the reduction in prices of solar and non-solar generation equipment should be passed on to the consumer in a timely manner. Therefore, the Commission’s floor & forbearance price determination requires to be revised from time to time in this direction. It is imperative to mention that almost all RE (renewable energy) capacity (around 9 per cent) is tied up under Long Term PPAs (power purchase agreements) and the REC market mechanism is not able to fulfil the purpose for which it was envisioned, Rahul Sharma, vice president of Aluminium Association of India (AAI) wrote to Central Electricity Regulatory Commission (CERC), the regulator for power sector.

MAY- 2020

Out of 86,759 Mw of RE installed capacity, almost 82,209 Mw is tied up in long-term PPA and mere 4,550 Mw is registered with REC registry and 628 Mw is accredited for REC registration. This has resulted in skewed market prices for RECs on Power Exchanges, which is turn has resulted in disconnect of REC prices with RE prices as visible in auction of Solar Energy Corporation of India Ltd (SECI) and NTPC Ltd. The REC demand supply gap has resulted in more than 125 per cent increase in Ssolar REC and 60 per cent increase in non-solar prices in last 12 months, putting a tremendous burden on consumers & distribution companies (discoms) complying with the said REC certificates. The existing thermal capacity of 225,000 MW (200,000 Mw coal, 25,000 Mw gas-based capacity) capacity itself requires 120,000 Mw of RE capacity installations. This is considering 17.5 per cent Renewable Purchase Obligation (RPO) as determined by the Ministry of Power for 2019-20 and 20 per cent Plant Load Factor (PLF) of RE generation compared to 60 per cent PLF of thermal capacity). Not only this, the industrial power consumption including that generated from thermal Captive Power Plants- CPPs (about 30,000 Mw) is obligated to purchase RE power (about 15,000 Mw), which is clearly not available in the market.

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POSSIBLE EFFECTS OF CORONAVIRUS ON SOLAR INDUSTRY

China is the largest producer of solar raw material globally. It supplies 85% of the raw material to the solar industry. China virtually controls the entire value chain from silicon to ingot , wafer, cell and module .Any potential strain could have an adverse impact in supplies. Southeast Asian module manufacturers to a large extent rely on Chinese suppliers for things like Solar cells, Glass , backsheets , frames, junction boxes,” . “If there is a long hold on those in China, their module assembly capacity may eventually be affected.”

he novel coronavirus, a respiratory illness that’s sickened more than 75,000 and killed more than 2000 people in China may impact the Chinese-rooted solar energy supply chain, potentially contributing to labor shortages, equipment delays and global price increases. Developers waiting for module delivery from mainland China in March and April will not see the orders delivered on time, while deliveries due late in the second quarter of 2020 are also likely to be delayed. Similarly the cell and module manufacturers will also feel the supply squeeze and their production will be severely hampered. Most of the cells & module manufacturers are dependent on china for their raw material, any supply disruptions in raw material will lead to the supply gap and hence price increment.

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The coronavirus outbreak in China could raise solar module prices in the near term as manufacturers have already begun experiencing wafer, cell and solar glass shortages. Production rates are also being affected by an extended new year holiday introduced by the authorities as a measure to deal with the virus, and the requirement workers from infected areas quarantine themselves for two weeks.

Author:

Mr. Manish Gupta Managing Director Insolation Energy

MAY- 2020

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Adani Green Energy wins the world’s largest solar award; Leapfrogs towards goal of 25 GW of installed capacity by 2025 AGEL wins the single largest solar development bid ever awarded, totaling 8 GW to be delivered over a period of 60 months. The $6 billion investment announced is the single largest since the launch of the AtmaNirbhar Bharat Abhiyan (Self Reliant India program) by Hon’ble PM Shri Modi The investment will lead to the creation of 400,000 direct and indirect jobs. The renewable energy generated will displace 900 million tonnes of CO2. AGEL now has 15 GW capacity under operation, construction or contract and moves closer to achieving its 25 GW renewable power target by 2025. Adani Green Energy Limited (AGEL, NSE: ADANIGREEN) has won the first of its kind manufacturing linked solar agreement from the Solar Energy Corporation of India (SECI). As a part of the award, AGEL will develop 8 GW of solar projects along with a commitment that will see Adani Solar establish 2 GW of additional solar cell and module manufacturing capacity. This award, the largest of its type, ever, in the world, will entail a single investment of Rs. 45,000 crores (US $6 billion) and will create 400,000 direct and indirect jobs. It will also displace 900 million tonnes of carbon dioxide over its lifetime.

ith this win, AGEL will now have 15 GW capacity under operation, construction or under contract thereby accelerating its journey towards becoming the world’s largest renewables company by 2025. This award will take the Company closer to its target of achieving an installed generation capacity of 25 GW of renewable power by 2025 which in turn will see it committing an investment of Rs. 112,000 crores ($15 billion) in the renewable energy space over the next 5 years.

This is the single biggest investment announced since the launch of the Hon’ble Prime Minister of India, Shri Narendra Modi’s AtmaNirbhar Bharat Abhiyan (Self Reliant India Program). It is also another significant step in India continuing to lead the world in battling climate change and furthering the commitment the Hon’ble Prime Minister of India made to the world at the COP 21 summit in Paris in 2015.

Commenting on the win, Mr. Gautam Adani, Chairman of the Adani Group said, “We are honoured to be selected by SECI for this landmark solar award. In today’s world, climate adaptation cannot be considered independent of economic development priorities and both, job creation as well as decarbonization must be simultaneous objectives. India made a commitment at the 2015 United Nations Climate Change Conference in Paris that it would lead the Climate Change revolution and today is the leader among the just eight nations on track to meet their COP21 commitments.

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The fact that renewable power will transition into becoming the world’s cleanest and most economical fuel is a foregone conclusion and the Adani Group intends to play a leading role in this journey. This award is yet another step in our nation’s climate change promise to the world as well as enabling our nation’s AtmaNirbhar Bharat Abhiyan (Self Reliant India Program). It is another step towards fulfilling our Group’s Nation Building vision.” Based on the award agreement the 8 GW of solar development projects will be implemented over the next five years. The first 2 GW of generation capacity will come online by 2022 and the subsequent 6 GW capacity will be added in 2 GW annual increments through 2025. The projects will include a variety of locations, including a 2 GW single-site generation project that is tied for the rank of the largest single-site project announced globally. The solar cell and module manufacturing capacity of 2 GW will be established by 2022 and along with the existing 1.3 GW of capacity will further consolidate the Group’s position as India’s largest solar manufacturing facility. Adani Green Energy Limited’s business model of focusing on long-term contracts with investment grade counterparties, rapidly constructing large projects, and thereafter building solar development partnerships with major global integrated energy players that seek to reduce their carbon footprint has enabled it to expand rapidly since its public listing less than two years ago. This new contract will further help strengthen this model.

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Sungrow Joins RE100 Affirming its Commitment to Source 100% Renewable Electricity by 2028 Sungrow, the global leading inverter solution supplier for renewables, announced that it has joined RE100, a group of businesses committed to the use of renewable power, to switch its electricity used globally in its manufacturing and operations to 100% renewable energy by 2028.

E100 is a fantastic lever to achieve 100% renewable. RE100 is led by The Climate Group, an intentional NPO focused on accelerating climate action, in partnership with CDP. The initiative works to increase corporate demand for – and in turn supply of – renewable energy. To join RE100, companies must set a public goal to source 100% of its global electricity consumption from renewable sources by 2050 and disclose electricity data annually, taking more responsibility for global low-carbon economy development and climate goals. More than 200 of the world’s largest companies have made commitments under the initiative, including Apple, Google, Microsoft and Facebook. 100% renewable is not a new concept but a reality for Sungrow

As part of its CSR efforts, Sungrow has committed to creating a “Green mission, better life” by exploring a variety of ways to increase energy efficiency and renewable energy use. In addition to energy-saving activities, the company promoted 100% utilization of renewable energy by using electric buses for staff transit and installing rooftop PV systems at its factories which was granted as the first batch of National Standard for Green Factories in China. As one of the most compelling renewable energy players, sustainability is a commitment rooted in Sungrow’s DNA. By the end of 2019, its accumulative inverters shipments reached 100GW that is equivalent to eliminating 103 million tons of carbon dioxide, demonstrating Sungrow’s continued efforts to achieve sustainability and to lead the industry in minimizing carbon footprint. Sungrow and RE100 join forces to tackle climate change.

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We are pleased to welcome Sungrow to RE100. It’s great to have them on board, demonstrating the rising demand for renewable electricity by leading corporations in China, said Sam Kimmins, Head of RE100 of the Climate Group.

Sungrow’s commitment to 100% renewable electricity has shown the world that renewable energy is the future, said Cao Renxian, Chairman of Sungrow. “Sungrow will uphold its mission of clean power for all, adhere to corporate citizenship responsibilities, formulate practical action plans, and reduce and eliminate carbon dioxide emissions in production and operation activities. We will strive to achieve 100% renewable power consumption earlier than 2028 to make our professional contribution to the global climate goal,” he added. Sungow actions to boost renewable energy in response to Covid-19. To help navigate this challenging time, Sungrow has put together a list of external and internal resources accelerating progress to the renewable energy growth – including ingenuity, partnership and action towards events, programs, ‘cloud’ visit factory, plus online workshops and more.

MAY- 2020

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India is the world’s fifthlargest energy economy; Ranked 3rd on renewable energy India ranks at the fifth position among the countries of the world when it comes to the size of its energy economy, measured by the combined revenue of energy companies. The country also ranks 3rd on renewable energy investment and future plans, according to a new study by British Business Energy.

SoftBank-Backed SB Energy & EDEN Bag 900 Megawatts Of Solar In India The government-owned power generation company NHPC had floated a 2-gigawatt solar PV tender last year. The tender conditions were flexible and allowed developers to choose project site of their liking. NHPC had initially set a maximum tariff bid of Rs 2.65 (US¢3.47) per kilowatt-hour which was later increased to Rs 2.95 (US¢3.87) per kilowatt-hour. It was finally set at Rs 2.78 (US¢3.64) per kilowatt-hour.

hese tender conditions generated huge interest among developers. Against the offered capacity of 2 gigawatts, NHPC received bids for over 3.1 gigawatts. SB Energy, a Softbank-backed developer, emerged as the largest bidder and secured 600 megawatts of capacity. Axis Energy Ventures, backed by Brookfield Asset Management, grabbed 400 megawatts, while O2 Power, a newly formed company backed by Singapore’s Temasek Holdings, won 380 megawatts. EDEN Renewables and homegrown Avaada Energy bagged 300 megawatts and 320 megawatts, respectively.

A total of seven developers participated in the competitive auction. The tariff bids declined from a high of Rs 2.78 (US¢3.64) per kilowatt-hour to just Rs 2.55 (US¢3.34) per kilowatt-hour. Despite the huge discount to the maximum tariff bid, developers seems pleased with the result. The developers, as well as the minister for new and renewable energy, pointed to the recent measures among by the government for the competitive bids. The flexibility this tender offered, especially in terms of the upward revision of maximum allowed bid, made it highly attractive to developers.

MAY- 2020

he London-based firm analysed 29 countries to find out which countries are leading the way for the energy industry. The countries were ranked by their revenue from energy companies, and in comparison to their GDP, the number of employees in the energy sector and a renewable energy score. Among all the energy companies combined, the USA takes the lead as the world’s top energy earner. Home to notable names such as Exxon Mobil, Chevron and Phillips 66 – the USA makes over $1 trillion through energy companies. China takes second place, earning just under $837 million and Russia in third with a much lower figure of $464 million.

mong the top countries who are investing in, partially using or have plans to use renewable energy in the near future, the USA is ranked 1 with a score of 7, followed by Brazil at 6.5 and India with a score of 6.3. Netherlands comes first when the companies are ranked based on the share of the energy industry to their GDP. The Netherlands actually sees just under half of its nominal GDP attributable to energy companies at 46.76 per cent, closely followed by Russia at 29.41 per cent. Hong Kong is the world leader when it comes to energy employment – with every 18th person out of 1,000 being employed in the energy sector. While for Russia’s working population, every 17th person out 1,000 is in an energy related job, the country also features in the top five countries for revenue and contributions to GDP.

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India’s Ultra Mega SoPower Package: lar Parks a $700-bn ₹45,000 cr liquidity investment opportunity for NBFCs; ₹90,000 cr for discoms India’s ultra-mega solar parks have attracted foreign capital, top global developers, and provided investors with an opportunity to join a $500-700 billion renewable energy and grid infrastructure investment boom in the coming decade, according to a latest report by IEEFA. According to the report titled ‘India’s Utility-Scale Solar Parks —A Global Success Story’, India has pioneered the ultra-mega solar park and, in the process, overcame a range of challenging obstacles.

Among other big bang announements, Finance Minister Nirmala Sitharaman announced collateral free automatic loans for businesses, including MSMEs, up to ₹3 lakh crore.

It is worth looking back over the past four years to see just how far the Indian renewable energy industry has advanced. The Indian utility-scale solar parks have kickstarted India’s energy sector transition amid myriad policy and project execution issues, India’s utility-scale solar park model has firmly stood its ground, said Kashish Shah, research analyst, IEEFA. He added that this approach has driven economies of scale and attracted global capital into India’s renewable energy sector over the past five years, with an immediate boon in mid-2017 of halving solar tariffs to a record low of Rs 2.44/kWh at the prevailing exchange rate.

The report added that India now houses multiple ultra-mega solar parks with capacity of more than 1 GW, with two of them being the largest commissioned in the world. The Bhadla solar park in Rajasthan is the world’s largest such installation to date, covering more than 14,000 acres with the total capacity of 2,245 MW. It added that utility-scale solar parks in India have successfully overcome the three major risks associated with renewable energy development in India, which are project execution risk, off-taker risk, and operation and maintenance risk.

n 2016, the Ministry of New and Renewable Energy had set a target for 40 industrial solar parks with a combined capacity of 20 GW, and in 2017 doubled this target to 40 GW by 2022. The ultramega power plant scheme involves a state government or local distribution company providing a single central grid connection and acquiring land on which the project can be built, shielding developers from procurement and time-delay risks. The Indian government has set a target to install 175 GW of renewable energy by the financial year 2021-22 (FY22) and 275 GW by FY27.

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he also said ₹45,000 crore liquidity will be infused into NBFCs through partial credit guarantee scheme. FM Sitharaman announced ₹30,000 cr liquidity facility for NBFCs, housing finance companies and MFIs. NBFCs, HFCs and MFIs with low credit rating require liquidity to do fresh lending to MSMEs and individuals and hence the liquidity infusion, she said. Electricity distribution companies are facing serious crisis, hence emergency liquidity infusion of ₹90,000 crore in discoms, FM announced. Under the MSME measure, borrowers with up to ₹25 crore outstanding and ₹100 crore turnover would be eligible for the special collateral free loan. The loan will have a 4 year tenor with moratorium of 12 months on principal repayment and the interest will be capped. There will be a 100 per cent credit guarantee cover to banks and NBFCs on principal and interest. The initiative can be availed till October 31, 2020, and no guarantee fee and fresh collateral would be required. On the back of the scheme, 45 lakh units can resume business activity and safeguard jobs.

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MOF issued OM in relation to Force Majeure Clause As per the OM, in view of restrictions placed on the movement of goods, services and manpower on account of the lockdown, situation prevailing overseas and in the country in terms of the guidelines issued by the MHA under the OM Act 2005 and the respective State and UT Governments, it is not possible for the parties to the contract to fulfil contractual obligations.

M refers to ‘Manual for Procurement of Goods 2017’, ‘Manual for Procurement of Works 2019’ and ‘Manual for Procurement of Consultancy and other Services 2017’ issued by the Department of Expenditure. These Manuals recognize extraordinary events or circumstances beyond human control leading to delays in or non-fulfilment of contractual obligations as force majeure events allowing invocation of FMC after following due procedure. The OM draws attention to Public-private Partnership (PPP) concession contracts, saying that a period of the contract may have become unremunerative and therefore, after fulfilling due procedure and wherever applicable, parties to the contract may invoke FMC for all construction/ works contracts, goods and services contracts and PPP contracts with Government Agencies. Wherever, FMC is invoked the date for completion of contractual obligations which had to be completed on or after February 20, 2020 shall stand extended for a period not less than 3 months and not more than 6 months without imposition of any cost or penalty on the contractor/concessionaire.

The concession period in PPP contracts ending on or after February 20, 2020 shall be extended by not less than 3 and not more than 6 months. The period of extension will be decided based on the specific circumstances of the case and the period for which performance was affected by the force majeure events. Further it is clarified that invocation of FMC would be held valid only in a situation where the parties to the contract were not in default of the contractual obligations as on February 19, 2020. It is further clarified that invocation of FMC will not absolve all non-performances of a party to the contract, but only in respect of such non-performance as is attributable to a lockdown situation or restrictions imposed under any Act or executive order of the Government/s on account of COVID-19 global pandemic.

Tamil Nadu CM Edappadi K Palaniswami urges PM Narendra Modi to put Electricity Bill on hold Tamil Nadu chief minister Edappadi K Palaniswami has urged Prime Minister Narendra Modi to keep the new Electricity (Amendment) Bill in abeyance till the proposed changes are thoroughly discussed with state governments. In a letter, he said the Bill goes against the rights of states and was detrimental to public interest.

he Centre has introduced the Bill, the fourth draft since 2014, to help private players enter generation, distribution and transmission of electricity, which, by and large, remains state-owned discoms’ monopoly as of now. The Bill seeks to make discoms levy power charges from all types of consumers. The government will have to directly transfer the subsidy component to the beneficiaries’ bank accounts. The electricity regulatory commission will have to fix tariffs without accounting for subsidies. In simpler terms, crosssubsidising some sectors – agriculture, huts and domestic connections – by levying higher tariffs on other sectors – commercial and industrial connections – will stop. In an election year, Palaniswami’s concern is that the bill would antagonise a large section of consumers as it would put spanner in the works of free power distribution to agriculture sector and hutments. The state has not been able to even meter agriculture power consumption. If unlimited use of power by agriculture sector ends, it could become a major political issue for the government. The state has also been providing 100 units of free power to all domestic consumers. However, the concerns raised by Palaniswami in the letter is that there would be serious difficulties in implementing direct benefit transfer in the electricity sector. It would work against the interest of farmers and domestic consumers, he claimed. 44

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It has been the consistent policy of my government that our farmers should receive free power and it should be left with the state government to decide the mode of payment of such subsidy,” said the chief minister. The proposed amendment Bill also seeks to take away the power of the state government in deciding the constitution of the state electricity regulatory commission. The commission has been so accommodative with the state government that even the mandatory tariff revision has not been happening for years in Tamil Nadu. One of the key amendments in the Bill is creation of Electricity Contract Enforcement Authority, aimed at enforcing contractual obligations by all stakeholders across the country. It will have the powers of a civil court. Problems that arose in the power sector in Andhra Pradesh after the change of government is what prompted the Centre to envisage formation of a new authority. The authority will have the sole jurisdiction to adjudicate on obligations under contracts regarding sale, purchase and transmission of electricity. The Bill also seeks to put an end to delayed payment by discoms to power generation firms. www.EQMagPro.com

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Rooftop solar developers may approach state regulator for connectivity Around 1000 MW of solar projects in Haryana are unable to transmit power because distribution companies are not giving them the required connectivity, aggrieved solar developers maintained.

he Distributed Solar Power Association, a body of solar rooftop developers, is likely to soon file a petition before the Haryana Electricity Regulatory Commission protesting the power discoms’ reluctance. All these are ‘open access’ projects, where developers supply power directly to their customers through the grid without routing it through a discom. But they need the relevant discom’s consent to do so. Though open access transmission is being propagated by governments, in practice, there has been a big push back from discoms against them because discoms lose revenue if power is transmitted directly without the discom as intermediary. There are three stages of consent to open access transmission – provisional connectivity, final connectivity and final interconnection agreement. Haryana discoms have allowed the first stage, and in some cases, the second, but they are not signing the final agreement. “1000MW of stage 1 approval has been granted, so they should allow that 1000MW to go through,” said a developer, requesting anonymity.

Developers said they have been approaching Haryana power officials at all levels to no avail. Applications have been stalled since October. “The Power Purchase Agreement has been signed with the customer, investors lined up, the EPC contract is in place. We are stuck at stage 1 connectivity,” said an international developer. “We have got the final connectivity. But the discom appears unwilling to move any further. We are sitting on a Rs 100 crore investment because the plant is ready,” said another developer.

Shatrujeet Kapur, managing director, power discoms, Haryana, declined to comment. “They (discoms) are attempting to block any open access project which they feel threatens their monopoly. That’s the dynamic playing out in the states,” said another leading developer, requesting anonymity.

Uttar Pradesh’s outstanding dues to gencos hit Rs 32,000 crore

As on April 2020, the state discoms have accumulated pending bills to the tune of Rs 32,000 crore to gencos, as against a total of Rs 17,500 crore owed by them in March 2019, reflecting a severe stress in the sector. Even as the Centre has announced a fresh Rs 90,000-crore package by PFC-REC to the state-run power distribution companies, Uttar Pradesh’s outstanding dues to electricity generating companies (gencos) have kept on piling.

f the Rs 32,000 crore, state generating companies’ dues stand at Rs 9,859 crore, those of IPPs stand at Rs 9,700 crore and Central generating companies at Rs 6,500 crore. The central transmission owes the discoms Rs 1,200 crore while the state transmission owes Rs 3,700 crore. Apart from this, the renewable energy producers have pending bills of Rs 1,050 crore. The discoms’ over-dues —bills that remained unpaid for more than 60 days — have been rising relentlessly. According to sources, among the IPPS, Lalitpur Power Generating Co has the maximum dues, worth Rs 3,000 crore, followed by NTPC, at Rs 2,900 crore. The spurt in overdues in April is being seen as a direct outcome of the lockdown imposed due to Covid-19 outbreak, as it has adversely impacted the electricity demand and the revenues and cash collections for the discoms.

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“The lockdown has resulted in a massive dip in power demand. Since the maximum demand fall has come from industrial and commercial establishment, which pay higher tariffs, the blow has been very hard. To add to that is the fact that collections from power sold has not been more than 10-20% as it has been difficult to continue meter reading exercises and collect payments from consumers amid the country-wide lockdown. These factors have aggravated the payment delays to generation companies,” said an official. At the end of March 2020, overall discoms dues to power producers across India stood at a staggering Rs 90,577 crore, up 41% from a year earlier. About 88% of these (Rs 79,829 crore) were overdues.

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Union Power Ministry writes to States/UTs extending Rs 90,000 crore package under Atmanirbhar Bharat Abhiyan

The funding would be done in two tranches of Rs. 45, 000 crore each. Union Ministry of Power has also decided to defer Fixed Charges of Central Power Gencos for power not scheduled to the DISCOMs during the lockdown period; to be repaid without interest in three equal instalments after lockdown Central Power Gencos/Central Transmission Companies have been suggested to consider giving rebate of 20-25% on power supplied(fixed charges) to DISCOMs during the lockdown period Discoms asked to pass on the cost savings to consumers. Union Ministry of Power has written to all States/UTs extending Rs 90,000 crore financial package to assist the stressed DISCOMs. A communication in this regard has been sent on 14.05.2020.

The package for power sector will significantly reduce the burden of Discoms for maintaining distribution of electricity as supplied by gencos/transcos during these difficult times. said Shri RK Singh, Minister of State (Independent Charge) for Power and New and Renewable Energy. The Government of India had on 13.5.2020 decided to make an infusion of liquidity of Rs 90,000 cr through Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) as a part of the Atmanirbhar Bharat Abhiyan.

nder this intervention, REC and PFC would extend special long term transition loans up to 10 years to DISCOMs. The letter sent to States/UTs mentions that REC and PFC shall immediately extend loans to DISCOMs which have headroom for further borrowing within the working capital limits prescribed under UDAY. Further, the DISCOMs that do not have headroom under UDAY working capital limits but have receivables from the State Government in the form of electricity dues and subsidy not disbursed will also be eligible for these loans to the extent of receivables from the State Government. Since these loans are long term and are not against the working capital requirement of the DISCOMs, with repayment security from the State Government, UDAY Working capital limits will not be applicable. In addition, , the respective States may request for relaxation of the limit to the Government of India for the DISCOMs that do not have receivables from States or headroom available under the working capital limits imposed under UDAY.

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The letter says, the COVID-19 pandemic and the resultant lockdown has adversely affected the power sector finances, creating a situation of acute liquidity crisis across the value chain in the power sector as a consequence. In this situation the liquidity infusion in the Power sector value chain will help to tide over the cash flow problem. This money will help discoms to repay most of the money that they owe to power generators( Gencos) and Transmission Companies( Transcos). It will help restart the virtuous cycle of cash flow in the Power sector. The loans will be provided to the DISCOMs against guarantees by the State Governments which will be used to clear liabilities of CPSE Gencos/Transco, IPP and RE generators. Total funding quantum will be about Rs. 90,000 crore. The funding would be done in two tranches of Rs. 45, 000 crore each., it adds. To further lift the discoms out of financial stress, Power Ministry as per another communication issued on 15.5.2020, has decided to defer the fixed charge on power not scheduled of Central Gencos for lockdown period and it will be repaid in interest free three equal instalments in subsequent months. During the lockdown period, there has been significant drop in demand because industrial and commercial units were closed. According to the Power Purchase Agreements, Discoms pay a fixed charge to Gencos for all the contracted quantity, even if power is not drawn. This has burdened the Discoms because they have to pay for the power that was not used during the lockdown period. They have also been suggested a rebate of 20-25 per cent on power supplied(fixed cost) including Inter State Transmission Charges(ISTS) payable to PGCIL for the lockdown period. The Discoms have been asked to pass on these cost savings to the end consumers which will lead to reduction in electricity cost to end consumers.

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Discoms to get loans at cheaper rate to pay dues to Gencos: Minister Financially stressed discoms will be offered loans at cheaper rates of 8.5 to 9 per cent for a 10-year period by state-owned power sector financing companies PFC and REC for clearing their dues towards power generation companies, Power and Renewable Energy Minister R.K. Singh said

he loans will be offered to discoms under the Rs 90,000 crore liquidity injection plan announced by Finance Minister Nirmala Sitharaman, help these entities clear their dues towards power generating companies and reinvigorate the sector hit hard by Covid-19 outbreak and the subsequent lockdown.

RK Singh said that the liquidity injection plan would help discoms in a big way as it would provide them credit at cheaper rates for a 10 year period with a two year moratorium on payments. Discoms would save between 3-9 per cent on interest payments under this liquidity window as late payment surcharge on delayed payment to gencos normally works out to 12-18 per cent. “PFC and REC provide loan to distribution and generation sector with a spread of 2.5 to 3 per cent. Under the present scheme, they have agreed to take lower 1.5 per cent spread that will lower the interest rate,” he said. Singh added that as part of the plan to invigorate the sector, discoms have also been allowed to defer payment of fixed charges to gencos for non-drawing of power contracted under PPAs (power purchase agreement) during the lockdown period. This payment, that normally accounts for a charge of Rs 1.25-1.50 per unit, can be paid post lockdown in three instalment by the discoms. The gencos will not charge any interest or carrying charge on this late payment. Announcing the liquidity window for discoms, Sitharaman had said that it was essential as discoms revenue have plummeted and they are in the midst of unprecedented cash flow problem accentuated by demand reduction during the current lockdown. Under the plan unveiled by the FM, power sector financiers PFC and REC will infuse liquidity of Rs 90,000 crore to discoms against receivables. Loans will be extended against state guarantees for exclusive purpose of discharging liabilities of discoms to gencos. Discoms dues towards gencos have risen to Rs 94,000 crore and this was making operations unsustainable as unpaid power producers were looking to stop power supplies to states. As with earlier power sector reform initiatives, the loans will be given to discoms against specific activities and reforms: digital payments facility by discoms for consumers, liquidation of outstanding dues of state governments, and plans to reduce financial and operational losses.

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To make the exercise beneficial even to power consumers, it has been decided that Central public sector generation companies shall give rebate to discoms on clearance of their dues, which shall be passed on to the final consumers (industries) by way of rebate of power tariff. The Covid-19 outbreak and subsequent lockdown has squeezed power demand sharply in months of March and April and the fall has been such sharp that demand for full year 2020-21 is set to report a 1 per cent decline, the first time in 36 years. Not only this, with expectation that lockdown may continue in large parts of the country for some more time, the discoms are set to return of yesteryear’s of adding losses after losses every year making their operations unviable. Extension would also impact demand further. According to an analysis done by rating agency Moody’s unit ICRA, expected losses at state-run electricity distribution utilities (discoms) would rise two-thirds to Rs 50,000 crore in FY21 with an addition of Rs 20,000 crore in book level losses in current year itself.

Discoms have already been reeling under low demand conditions for some time and this has impacted their revenue and ability to service payment dues to generators. Accordingly, the debt-laden discoms overdue payment to electricity generators had risen to Rs 94,000 crore now, more than 50 per cent higher compared with the same period last year. What has added to problems of discoms is that lockdown has resulted in consumption decline from the high tariff paying industrial and commercial consumers (tariff almost twice that for households) and the likely delays in cash collections from other consumer segments.

MAY- 2020

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India needs urgent policy reforms to meet 60-GW wind energy target by 2022: Report India, the world’s fourth-largest onshore wind market by installations, is likely to fall short of its ambitious wind energy target for 2022 by up to 10 gigawatt (GW) if urgent regulatory challenges are not addressed, according to a latest report.

t added that the country’s total wind energy capacity would only reach 50 GW by 2022 as existing the pipeline and new auctions face multiple challenges. India has set an ambitious 175 GW renewable energy target by 2022, of which 60 GW is due to come from wind energy. In 2020, supply chain disruptions due to the COVID-19 impact would further compound existing challenges to delay about 0.7 GW to 1.1 GW in new volume to 2021 and also possible cancellation of some planned auctions, according to the report released by the Global Wind Energy Council and MEC+.

“Project installation has been decelerating recently, with only 2.3 GW installed in 2019, nearly half of the 4.1 GW installed in 2017. Even in the high case scenario, the country is likely to fall short of its ambitious wind energy target for 2022,” said the report titled ‘India Wind Outlook Towards 2022: Looking beyond the headwinds ’.

According to Sidharth Jain, founder and CEO at MEC+, the immediate impact of COVID-19 would be a delay in the projects scheduled for the first and second quarter of 2020, however, more far reaching results could impact up to 3.5 GW of volumes due to projects with thinly spread developers, financial crisis, and limited new auctions.

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The report added that challenges such as grid and land availability, off-taker risks, onerous tender conditions, and low tariff caps have led to the past three Central tenders and all state wind tenders to be unsubscribed, retendered or even cancelled, while 80 per cent of awarded projects have been delayed by 6-12 months.

The government has put in place ambitious renewable energy targets in order to fulfil the country’s growing energy demand, which is set to double over the next 10 years… Setting realistic prices, a faster build out of grid infrastructure, ensuring market liquidity and streamlining land allocation and site development will be crucial to revive auction appetite and accelerate execution of India’s pipeline of wind energy projects,” said Ben Backwell, chief executive officer at GWEC. India is the world’s fourth-largest onshore wind market by installations, with 37.5 GW of capacity as of 2019, and has the potential for more than 695 GW at 120 metres. The government has set a target to reach a total wind capacity of 140 GW by 2030.

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South harnesses more solar power during lockdown

Southern states generated more solar power during the lockdown, as a component of the total power supply in April. Despite demand being less during lockdown compared to normal times, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana were able to use 2,655 million units of solar power compared to all other states, which generated 2,133 million units in the month.

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mong southern states, Karnataka lead with 1,092 million units, followed by Telangana (594.09MU) and Tamil Nadu (514.30MU). Maharashtra, Karnataka and Tamil Nadu were able to harvest wind power too during April. Compared to April, 2019, Karnataka and Tamil Nadu harvested more solar power this time around. In April 2019, Karnataka generated 791 million units and Tamil Nadu 400.11 million units of solar power. Consequently, evacuation of solar power by these two states increased by 28.53 per cent in Tamil Nadu and 38 per cent in Karnataka. In the case of Andhra Pradesh and Telangana, solar power evacuation came down by 19 per cent and 2 per cent respectively.

“As the demand was very less due to the lockdown, solar power was available during daytime and we were able to evacuate more units this year. As our solar power capacity too has increased, more solar power was available,” said a senior Tangedco official. Tamil Nadu’s solar power capacity increased by 666.65 MW in 2018-19 and as on January 2020, the total solar power capacity stood at 3788.51 MW. Wind power was also available, but infrequently in Tamil Nadu, Karnataka and Andhra Pradesh. Due to this, the total renewable power evacuation increased from 3676.63 million units of solar and wind power generation in April 2019 to 3686.44 million units. “In entire April, we had most of our thermal units on standby as power was available in Central units as well as from solar and wind sources. This helped us to stock more coal, which will be useful when the demand increases,” said the official.

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Tariff for round-the-clock solar power is competitive: ReNew’s Sumant Sinha India’s first tender to provide round-the-clock (RTC) solar power was won last week by Goldman Sachs-promoted ReNew Power, which quoted a tariff of Rs 2.9 per unit (kwh) for the complete capacity of 400 Mw offered by the government.

he tender is unique in several ways. Unlike the nature of solar to run for a few day-time hours, this project would provide power for 24 hours. For this purpose, the tender had proposed that solar power would either be blended with other sources such as wind or hydro, or would have an energy storage system. To include that cost in the project, the tender provided for 3 per cent escalation in the tariff annually for 15 years. Industry experts said the average tariff would land around Rs 3.6 per unit.

Speaking with Business Standard, Sumant Sinha, Founder & CEO, ReNew Power said the tariff quoted for the project is not high, rather it is very competitive. “I would say the number (average tariff) is lower than what you what you are mentioning (Rs 3.6/unit). To provide that kind of firmness of power, you do have consider certain issues that you have to take care of,” he said. At Rs 3.6 per unit, the tariff is closer to the average rate of thermal power in India. This RTC tender was floated by Solar Energy Corporation of India (SECI) to supply power from solar power plant all around the day. SECI is the nodal tendering agency under the ministry of new and renewable energy. The project will have 80 per cent plant load factor (operational capacity). Sinha further added, “For example, procurers won’t buy more than 100 per cent power from you. But in the designing of the plant, you end up with times when the power generation is more than 100 per cent. We have to account for conditions such as these. That is why the tariff has been so aggressive. But it was quite lower than what the government was expecting,” Sinha said. He also said the capital cost of most companies is higher than what regulators assume in their calculations. This therefore increases the discounting rate that the companies take. Central Electricity Regulatory Commission (CERC) in the tariff determination of renewable power, provide for a discounting rate, which is the ‘post-tax weighted average cost of capital’ or the cost of capital over the period of the project. This rate is higher than the capital cost and is added to the total bid amount quoted by a company.

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Sinha said, even after taking a higher discounting rate, the tariff quoted by his company is “lower than even the discounting rate of CERC.” Centre is also planning another RTC scheme which will involve blending thermal power with renewable and selling them together at an average rate. Sinha said the idea behind this scheme is to help stranded thermal power. “There is a lot of unsold thermal capacity in the country. I think this is an attempt by the government to combine that unused thermal capacities with renewables and thereby and provide a product that may be attractive to certain distribution companies,” he said. Another way to have renewable power running at all hours is to maintain energy storage or install hybrid units of wind, hydro and solar together. “It depends on the cost of storage which is high currently. It also depends on the profile of power generation that matches the demand curve. I think by blending wind and solar together, one can get to a fairly close to that demand curve,” said Sinha.

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Only one-third SECI wind projects commissioned so far Only about one-third of 6,000 megawatt wind power capacity auctioned by the Solar Energy Corporation of India in four tranches between 2017 and 2018 have been commissioned so far despite their deadlines ending. SECI, the nodal agency through which the new and renewable energy ministry (MNRE) conducts wind and solar auctions, has commissioned only 1961 MW of wind capacity, an official at the ministry said on condition of anonymity. “There are three big reasons for the delay,” the official told ET. “Firstly, getting defence clearance for wind projects takes a long time. It takes six months to a year to come by.” Wind projects are often located in sensitive border areas, hence they require the defence ministry’s clearance.

The scheduled commissioning deadline for tranche 3 projects was November 2019, and March this year for tranche 4. According to a wind power developer, the winning tariffs in tranche 3 auctions were “too low”.

The other two reasons the person cited are the Gujarat government’s initial reluctance to lease land to winners of auctions conducted by the central agency and the novel coronavirus outbreak.

“Had it not been for Covid-19, these projects may have been commissioned by now,” the person said. SECI has commissioned 1,000 MW out of 1,049 MW in the first auction held in February 2017 while 685 MW out of 1,000MW have been commissioned in tranche 2 held in October 2017, the official said. The scheduled commissioning date for tranche 2 was May 2019. In the tranche 3 auctioned in February 2018, 277MW out of 2000 MW have been commissioned while not a single megawatt has been commissioned amongst the 2000 MW auctioned in tranche 4 in April 2018.

“The tariff is unviable now,” the developer told ET. “Wind turbine manufacturers are unwilling to execute our project. Lenders are not willing to fund the project.” The winning tariffs in that auctions were in the range of Rs 2.44-2.45 per unit, only one paisa higher than the record low reached so far. The MNRE official cited earlier, however, said the government would not renegotiate. “We will not allow modifications in tariff, we feel strongly about that.” But extensions would be granted on genuine grounds, the official said. “We have given guidelines to SECI as to how the timelines could be extended,” the person said. “I’m hopeful that they will be executed.” Some of the biggest winners of these auctions were Sembcorp, Renew Power, Inox Wind and Adani Green Energy.

India is the world’s fifth-largest energy economy; Ranked 3rd on renewable energy India ranks at the fifth position among the countries of the world when it comes to the size of its energy economy, measured by the combined revenue of energy companies. The country also ranks 3rd on renewable energy investment and future plans, according to a new study by British Business Energy.

As a global population we are becoming more environmentally conscious, but with the demand for energy increasing it’s important to highlight the economies which are leading the way for revenue but also employment and renewable energy production, Ian Wright, Managing Director, British Business Energy said. Among the top countries who are investing in, partially using or have plans to use renewable energy in the near future, the USA is ranked 1 with a score of 7, followed by Brazil at 6.5 and India with a score of 6.3.

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Netherlands comes first when the companies are ranked based on the share of the energy industry to their GDP. The Netherlands actually sees just under half of its nominal GDP attributable to energy companies at 46.76 per cent, closely followed by Russia at 29.41 per cent. Hong Kong is the world leader when it comes to energy employment – with every 18th person out of 1,000 being employed in the energy sector. While for Russia’s working population, every 17th person out 1,000 is in an energy related job, the country also features in the top five countries for revenue and contributions to GDP.

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Within 10 days of the lockdown, India was consuming 20% less power than usual

As India completes almost a month of a government-mandated lockdown to control the spread of the coronavirus, cities with poor air quality have been reporting cleaner air and lower pollution—an expected outcome of the nationwide closure. For instance, the CREA report said, “all coal-based power plants in 300 kilometres radius of Delhi (Haryana, Punjab, and Uttar Pradesh) except two units at Dadri Power Plant have been shut down due to low demand.” It emphasised that there has been a “reduction in overall power demand and associated coal consumption by the power generation facilities across the country.” The report compared power generation in India during the two weeks before March 24 (the day of the lockdown) and two weeks after and found a 19% overall reduction in power generation in India. Coal-based power generation in particular reduced by 26% during the same period, said the CREA report.

ith fewer vehicles on the road, reduction in consumption of petroleum products and reduction in power demand from the commercial and industrial sector, around 78% cities where air quality is recorded have reported “good and satisfactory” levels during the lockdown period, compared to 44% cities with these levels of air quality in the pre-lockdown phase.

On April 21, the National Aeronautics and Space Administration (NASA) also released an image, according to which its satellite sensors observed aerosol levels at a 20-year low for this time of year in northern India after just a week of reduced human activities. According to a data tracker developed by the Energy Policy Institute at the University of Chicago, India’s electricity consumption has fallen by 18.72% (till April 3) due to the lockdown. Similarly, as per the data compiled by the Centre for Research on Energy and Clean Air (CREA), an independent research organisation working on clean air and clean energy, there has been a clear reduction of consumption of petroleum products and coal by industries in regions within and around cities.

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Sunil Dahiya, an analyst with CREA and one of the authors of the report, said that this “decrease in coal-based power generation” and “stopping of overall industrial production throughout India” are responsible for “reduction in emission load of pollutants translating into air quality improvements across the country making blue skies visible.” On March 24, prime minister Narendra Modi had announced a threeweek nationwide lockdown starting from March 25 which, on April 14, was extended till May 3. According to the CREA report, there has been a reduction in the consumption of diesel/petrol and other petroleum products in the transportation sector within cities. Consumption of diesel decreased by 24% in March 2020 compared to March 2019, with most of the fall post the lockdown. “Overall consumption of petroleum products in India decreased by 18% during the same period.”

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india Decline in pollution As a result of the reduction in consumption and generation, the report prepared by Lauri Myllyvirta and Dahiya of CREA showed that “drastic and clear reductions in pollution levels, which are a result of decreasing fossil fuel consumption in transportation, industries and energy sector.” “Most of this reduction came after the lockdown resulting in a drastic drop in NO2 (nitrogen dioxide)/pollution emissions/levels in urban areas,” said Dahiya. On April 21, India’s top pollution watchdog, the Central Pollution Control Board (CPCB), also released an analysis on the impact of Covid-19 lockdown (March 25-April 15) on air quality in the country. NASA too released an image on April 21 that showed aerosol levels at a 20-year low for this time of year in northern India—an area which is among the most highly polluted regions of the world. Aerosols are tiny solid and liquid particles that are harmful to human health. Their source is both natural (like dust storms and forest fires) and man-made (like the burning of fossil fuels). In the northern Indian region showed in the NASA map, human activities like motor vehicles, coal-based power plants etc are the primary reason behind the majority of aerosols but the 2020 lockdown has shown a clear reduction in such sources. However, the aerosol concentration is expected to go up in the upcoming weeks when the season of dust storms in the region begins. Human activities may contribute to it as well once the lockdown is lifted. According to CPCB’s analysis, the nationwide lockdown has resulted in significant improvement in air quality in the country. It explained that the major sectors contributing to air pollution are transport, industries, power plants, construction activities, road dust, and residential activities etc. “Under the nationwide lockdown, all transport services—road, air and rail—were suspended with exceptions for essential services. Educational institutions, industrial establishments and hospitality services were also suspended. As a result, air quality improvement has been noted in many towns and cities across the nation,” said the CPCB analysis. According to the CPCB’s report, it was observed that about 78% of cities in the AQI bulletin are falling in “good and satisfactory categories in the lockdown phase, increasing from the average of 44% seen in the pre-lockdown phase.” CPCB prepares an AQI bulletin on a daily basis for more than 100 cities across India. The pollution watchdog explained that “it may be reasonable to state that more cities have their air quality within national standards during the lockdown period.” “During the lockdown period, no city entered the very poor category. Among the cities in poor category during the lockdown period, instances of Singrauli and Brajrajnagar are found frequently. It is worth noting that Singrauli is home to several power plants, which are operational during the lockdown period and Brajrajnagar has in its vicinity numerous open-cast and underground coal mines,” explained the CPCB report.

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In the Delhi-National Capital Region (which includes major neighbouring towns like Faridabad, Gurugram, Noida, and Ghaziabad), infamous for recording very poor and severe levels of air quality for the most part of the year, the data from the continuous ambient air quality monitoring stations show that there has been “substantial improvement in the air quality of Delhi-NCR during the lockdown period, as the major contributing sources to particulate matter (PM) and NO2 emissions (prominent pollutants in Delhi NCR) have been restricted.” The CPCB report said that the air quality index Delhi-NCR was largely under “moderate” category in the week before the start of lockdown period and as the days progressed, under the cumulative effect of restricted vehicle movement, industrial and commercial activities, the AQI improved to “satisfactory” category. It explained that during the first few days of the lockdown the air quality was even recorded in the “good” category in Delhi, Ghaziabad and Noida due to factors like scattered rains but after April 4 due to meteorological factors the air quality shifted to “moderate” category. ‘Further, a dust storm from the gulf region hit Delhi and the surrounding areas on April 15, further pushing the air quality to the higher end of the moderate category.” However, experts are worried that once the lockdown is lifted and industries resume operations, the sudden spike in pollution could make the situation worse.

T K Joshi, who is a member of the CPCB, SAID that an increase in air pollution once the lockdown is lifted is an important concern. “The lockdown has ensured less use of fossil fuels which are the primary reason behind global warming. Also, staying at home has helped in containing the exposure of people to this new disease which is still not being understood. Initial reports have highlighted that the majority of deaths (of those infected from Covid-19) occurred due to respiratory issues. So, if one has damaged lungs due to heavy exposure to air pollution, smoking or diseases like Asthma their vulnerability increases. The reduction in air pollution has also resulted in reducing the overall impact of this disease,” Joshi said.

MAY- 2020

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OPINION: RTC Renewable Energy as the new normal – Learnings from Karnataka and Tamil Nadu Key learnings can be drawn from renewable rich states of Karnataka and Tamil Nadu, which have been managing a high share of clean energy in their grid networks due to availability of hydro and biomass power.

ecent months have seen several unprecedented events affecting the society as well as the economy. The energy sector has witnessed a sharp dip in its demand, impacting the utilities all along the value chain. Phase-I of the lockdown period (March 24 and April 19, 2020) saw a 25 per cent decrease in the power demand compared with the same period of the previous year. A similar fall was observed in the peak demand, which reduced from 160 GW to 115 GW. During this period, coal power generation was adjusted, which increased the share of renewable power in the grid. A parallel and important event has been the discovery of competitive tariffs in bids requiring supply of round the clock (RTC) renewable power with an annual utilization factor of 80 per cent (four times the typical value of a solar / wind project). These trends indicate shifting to a ‘New Normal’, both in terms of individual behavior to tackle Covid-19 as well as in providing higher quantum of despatchable green power.

Over eighty per cent of the renewable energy basket in India is attributed to wind and solar having variable (and seasonal) characteristics. To serve the changing demand patterns of consumers and accommodate an increasing share of clean energy, technologies with firm characteristics like biomass and hydro would be required. In this regard, key learnings can be drawn from renewable rich states of Karnataka and Tamil Nadu, which have been managing a high share of clean energy in their grid networks due to availability of hydro and biomass power. Data for the monsoon period of the year 2019 (May to September) shows over 75 per cent penetration of clean power in the state of Karnataka, with equal share from both variable (solar and wind) and firm (hydro 1 and biomass) sources. A kind of complementarity can be observed between hydro and biomass, with biomass plants (where fuel can be stored) operating at higher load factors during the lean-hydro months. Similarly, in Tamil Nadu, over half the grid supply during the period May to September 2019 was attributed to clean power, within which, two-thirds was contributed by variable wind and solar, with the remaining share coming from firm technologies (hydro 2 and biomass-cogeneration). Here also, a synergy was observed in terms of loading factors of these technologies based on their seasonal availability.

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It is important to note that even with a large installed base of biomass projects (20 GW, including cogeneration), the utilization of assets in terms of power generation is sub-optimal. Similarly, small hydro power sector in India has been stagnating, with the total installed capacity still below the 5 GW mark, and projects operating at half the expected PLF levels (average of 22%). If prudently utilized, these assets would be able to generate power equivalent to 80 GW of solar, or 60 GW of wind projects with RTC characteristics. The co-benefits would include increased share of green power in the grid, assimilation of variable solar and wind power (lesser curtailment), provision of RTC power at competitive tariffs and reduced dependence upon fossil fuels. As such, firm-clean technologies like hydro and biomass needs to be promoted with measures like explicit procurement mandates, provision of low-cost funds and tax-credits and extending grid balancing incentives. This measures shall help India meet its International Climate Commitments as well as Sustainable Development Goals.

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MAY- 2020

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MAY- 2020

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interview

Mr. Sandip Agarwal MD & CEO, EverStream India Think Energy Group

EQ: “Lives vs Livelihood”, the world seems to be scrambling to solve this puzzle. How do you think that the Government has responded to it? SA: The choice is straightforward. It is life first whether saving them for disease or hunger. Let us not be mistaken that lockdown means life and lifting lockdown means livelihood. We must balance between various form of responses to reduce the effective loss of life. The difficult part is how to implement the same in a balanced way. Lockdown (coupled with increasing testing, contact tracing and quarantine enforcement) has generally been the initial response so that the country can ramp-up its healthcare infrastructure to fight the pandemic. Let us take the example of India. Infection rate since the lockdown has not increased exponentially but has remained linear at around 5%. Between March 23 and April 22, 2020, India increased its testing capability 25 times (to 500,000 now), there has been an increase of 3.5 times in total dedicated hospitals (to 736 now) and 3.6 times in isolated hospital beds (to 1.94 lakh now). Now the challenge is to bring the economy back to work in a way that we can minimize the spread of infection to a level that can be supported by existing healthcare capabilities. We might see repeated lockdowns in areas where the rate of infection grows too fast with the ultimate objective of reducing death rate and thereby allaying fear. The response of the government to the conundrum of lives vs livelihood can be fully comprehended only over a period. While on the one hand weak healthcare system & dense population can lead to loss of life directly from the rampant spread of disease and on the other hand loss of millions of jobs in the low income groups will push them towards poverty and hunger leading to loss of life in a number of cases (and loss of dignity of life in most of the cases). Therefore, lives and livelihood must be balanced equally.

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EQ: Experts are predicting about a 10% decline in GDP this quarter and possibly negative growth rate for the whole year. What do you think would be the Impact of COVID 19 on the Indian Economy? SA: 10% fall in GDP this quarter and a near zero 0% GDP growth rate for the year would be the best possible outcome. I expect economy to contract by a larger number for the whole year. However, the numbers for this year is not as important as the path we choose to fight the pandemic, to spread the pain of such disruptions more fairly and the recovery plan. Even if the lockdown is lifted completely sooner than later, it is almost certain that we will see multiple lockdowns followed by intermediate period when the economy would operate with less restrictions. It is pertinent to note that even when the restrictions are lifted economy would operate at best at 95% with spending on hospitality, entertainment, tourism and aviation expected to see more than 50% slowdown before the vaccines are out. It would be war against fear of getting infected more than the infection itself and unfortunately fear find its way through the gate until the vision is blackened. Having said that, India has always been a resilient economy. We came out of every economic crisis since financial liberation in less than 2 years on the back of strong domestic demand supported by healthy saving rate, unending entrepreneurial spirit, parallel economy (which no analyst can predict beyond a point) and bank lending supported by fiscal / monetary policies. On the back of strong monetary and fiscal measures followed by a surge in private consumption and subsequently private investments, India’s GDP growth rose to pre-crisis levels in 2010. This time around we have added complexity of slower credit growth and falling growth rate at the time we entered the crisis but we also have the advantage of substantially higher foreign reserve cover, sound external sector and domestic wealth. If Govt responses were to abate flight of capital and more importantly provide the required push to private consumption leading to a surge in private investments and remove supply constraints at the same time then we should expect recession for the full year, muted growth next year followed by a strong recovery in 2022.

MAY- 2020

interview EQ: You mentioned that Government responses would be crucial in fighting the pandemic on the economic front. Do you want to provide certain suggestions for the Government to consider? SA: We are in this vacuum between the Old World and the New World where what we do today will decide what the New World will bring with it. Make no mistake that Governments should refrain from making the mistake of yielding to excessive worries about budget deficits and rating downgrades. The Indian government should bring a massive fiscal stimulus package in the range of 10% of the GDP to tackle the crisis (in addition to monetary policies to create more liquidity). The pertinent questions are: a. Where to get the money from; b How to repay it; and c. How to design and administer the stimulus package. If Government decide to run a large fiscal deficit primarily on account of lower revenue & increase borrowing, then it must convince the world then there is a credible plan in place to bring back the fiscal deficit to desirable level and to repay the debt. India has an unfair distribution of wealth where the top 1% of the population holds about 73% of the wealth. Additionally, the bottom 70% the population holds about 0.25% of the wealth and were left out in the Old World. This has caused resentment and anger among the bottom half for decades. By changing the social contract and ensuring that the top 1% pay for the crises Government can find money in a way which does not affect its fiscal outlook and bring harmony in the society.

EQ: Where to get the money from? SA: The government can raise funds by issuing special COVID Bonds domestically, which will be long term low interest-bearing bonds even at the cost of some form of Financial Repression by pushing the top 1% of the population to buy these COVID Bonds. The Government can also resort to low interest borrowing from international associations e.g. borrow from World Bank, utilize its quota of SDRs from IMF. Further, Reserve Bank of India on the back of strong reserve cover can buy bonds to an extent.

EQ: How to repay the new debt? SA: Through a combination of short term taxes, which could include a higher income tax for the super-rich category (> INR 1cr), additional wealth tax, increasing the excise on liquor and tobacco, increased taxes on high value land deal, dividend distribution taxes on undeployed portion and increased carbon emission taxes levied on petroleum products, the government could mobilise in the range of $75bn-$100 bn/annum.

EQ: How to design and administer the package? SA: It is critical that government come with co-ordinated fiscal and monetary support to push demand and ensure that the benefit reach to those who truly deserve it. a. improve the medical infrastructure to fight the pandemic; b. provide livelihood support by direct transfer particularly to migrant or displaced labourers; c. bail out SMEs in the informal sector; and d. Ensure lending to otherwise profitable projects and organization through credit guarantee from the government.

EQ: Many Experts are saying that the “World will Change Forever” or we will see “The New World”? Can you provide your views on this? SA: By the time we come out of the fear of the physical damage and start understanding the economic damage, some things would have altered near permanently. Healthcare – This crisis could bring about three welcome changes as pandemic become high probability high impact event: a. spur in investments in public healthcare infrastructure (expected to increase more than 50% from the current level of $134 bn globally); b. global collaboration with more aid for poor nations as virus does not obey border law; and c. advancement in science of vaccinology & virology. Aviation Sector – The global aviation industry is expected to lose around $250bn in 2020 and over 25 million jobs could be impacted (with over 3 million jobs in India alone). We have seen Virgin Australia, FlyBe, Compass Airline and Trans State Airline fall and more are likely to go away.

MAY- 2020

While airline demand would pick up one vaccine is available, there will be significant reduction in traffic as businesses reassess the need to fly after finding out a way to work remotely. Reversal in the industry’s dramatic expansion is expected with consolidation and less competition leading to higher fare and less low-cost routes. Globalization & Global Supply Chain – Recalibration of the expanding era of globalization and a new equilibrium at a lower level will be the new normal. Global supply chain management and decisions are going to be at the top of the boardroom discussions. Localization and diversification would be the themes expected to disrupt the existing supply chain. The existing supply chain inherently incorporate policies related to currency management and geo-political strategies which would hard to predict as all of this unfolds. Democratic Rights – Around 84 countries have declared some sort of national emergency. Suppression of freedom of speech, right to protest and controlling the press are various forms being used to exercise unprecedented power. Coronavirus Law in Hungary and arrest of Hong Kong’s leading pro-democracy activists by China are just examples of how leaders have usurped more power which they do not intend to give away entirely even after the pandemic. Protectionism & Populism – Global politics underwent a sea change with a surge in populism and nationalist sentiments after the impact of Global Financial Crisis 2008 was felt and understood. The impact that COVID 19 would leave behind would be much larger in scale and by the very design of the problem people in low income group in hospitality and entertainment be the hardest hit and the anger that it would bring could lead to an unprecedented demand for change. Both protectionism and populism are expected to make a grand come back at a scale not been in decades. Relations between Employers, Informal Workers, and the State – Migrant Workers are often seen as the driving force of Developing Economies as they provide an inexhaustible pool of cheap rural labour. The pandemic has exposed the relation between the State, Employer and these Migrant Workers. The State must choose between protecting the intertest of these workers or succumbing to the demand of capital provider and almost reverse the evolution process of labour laws to go back in time to the colonial era. If this is not done in the right spirit, we will unfortunately trade short term trivial gain for permanent loss of trust. It would take decades if not centuries to cultivate trust back into this relationship.

EQ: MNRE has been proactive and trying to balance the needs of the Generators and Discoms. What other aspects should the MNRE address to have a more meaningful impact? SA: At the outset, I would like to thank MNRE, the Hon’ble Minister and the Hon’ble Secretary for their immense contribution to the sector. It is through their perseverant efforts and direction that India today is on track to achieve the almost impossible target of 175 GW of renewable capacity by 2022. MNRE has stepped up in these times of crisis and has been taking all efforts towards ensuring the sector does not face distress in these trying times. Disbursement of long outstanding incentives, working with lending community so that Discoms get soft loan to clear long outstanding dues, solving a number of regulatory hurdles in implementation of ISTS projects, reiterating the ‘must-run’ status and clarifying its stand on Force Majeure related to supply and work disruption are commendable achievement in the first month of the crises itself. As you know these are good first steps but a lot need to be done to reap its benefits. Most large developers are currently implementing projects under state bids (along with SECI/NTPC projects) and there is a lag in adoption of the blanket extension by the Energy Departments of States.

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interview

We would therefore like to see MNRE to notify a relevant communication directing the Energy Departments in the states to clarify that the extension as provided in MNRE OM dated April 17, 2020 shall apply for the Projects currently under implementation in the respective states. Without certainty of these extension there would be further delays in implementation of projects which would put millions of jobs in the supply chain at stake. Leadership in providing certainty on the extension goes a long way in starting the economic engine and that too at little cost to the exchequer.

Regulatory framework will be tested in the meantime. In spite of multiple attempts to promote rooftop financing, there has been limited success. Multiple Government backed FIs, with the support of Multinational DFIs, have taken up the mandate to fund rooftop projects. Inherent risk aversion is exhibited by the kind of financing terms and guarantee/collateral requirement that the lender requires. Further a number of rooftop developers are small to mid-size companies and find it very difficult to get project financing for such project.

EQ: State Discoms inability to pay has been in the global media for most part of the last year. How do you think global investors are looking at it? What are your personal views on this?

EQ: You have earlier mentioned that “the dynamics of C&I PPA can change completely in the aftermath of COVID 19”. Can you provide more details in this regard?

SA: DISCOMs owed renewable energy generators ₹62.19 billion (~$856.2 million) in overdue payments at the end of January 2020. MNRE’s recent steps to make opening LCs compulsory and ensuring soft loans to Discoms will provide much needed short-term liquidity to the developers. However, the only medium-term solution, in the current structure, is to ensure that the Discoms are financially sustainable, with tariffs reflecting the cost of supply and subsidies being paid directly to the beneficiary. The proposed amendments in the Electricity do take care of much of these concerns. However, we must see whether these amendments can be notified and implemented effectively. In the long run, we would need to let the state allow the privatization of distribution companies with required regulatory safeguards or independence of Discom in decision making to ensure long-term viability. We must realize that Discoms in India tend to exhibit cyclical patterns when it comes to outstanding period. But the relevant point is that Discoms pay at the end. We must not forget that all contracts in India have been upheld in spite of few attempts by the Discoms to change them and the courts have always shown the right path in this regard. Therefore, it is a myth that Discoms in India will not pay. However, we should include reasonable level of working capital in our financial model and try to diversify our investments across Discoms.

EQ: Experts believe that the Government may fall short of its target of 40 GW by 2022 when it comes to rooftop installations. What do you are the major hindrances for the rooftop segment to grow? SA: There are two key issues here, regulatory and project financing. India has taken the concept of Net Metering from the world but probably did not consider two unique aspects that exists here: a. the tariff structure is inverted and b. the tariff for agriculture and domestic (lower consumption segment) are cross subsidized. So, when the higher paying industrial and commercial customers move out, Discoms are left to bleed. This is unsustainable. Potentially we need a three-way sharing of benefits where the consumer pays both the generator and Discom yet reduces its energy bill. That process is underway, with Discoms trying to come with policies to recover a part of the saving in cost, and it would take 6-12 months before stakeholders comes to an acceptable equilibrium.

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SA: As the post-COVID world realigns, there will be some industries that will be more impacted than the others. We can clearly see the impact on airline, hospitality, entertainment and tourism industry. Changes in the Global supply chain management decision would complicate this further. As the economy evolves out of the pandemic, localization and diversification shall disrupt the current Global supply chain management which would hard to predict as all of this unfolds. The criteria for selection of C&I PPAs would become more complicated. Given such Black Swan events, it is likely that developers would re-look at the contracts to incorporate clauses which can clearly cover such situation in future. Further, developers should beyond current credit rating and will analyse broader global geopolitical and economic factors affecting the industry and specifically the client. Go back to Old Basics, review client revenue base, their operating metrics and how much they are sustainable in the environment likely to emerge, would be the New Mantra.

EQ: We understand that this platform TEPSOL is a part of a larger global platform. Can you provide more details here? SA: TEPSOL is majority owned by Everstream Capital, an independent investment firm that manages over $500 million of funds and assets on behalf of some of the world’s largest institutional investors. It invests in energy and infrastructure assets with a primary focus on sustainable energy sources. Over the years EverStream has built platforms in Japan, India, Mexico, US and Europe. EverStream’s “Principals” are highly experienced operators and investors who have created and/or led some of the largest companies in the industry including SunEdison and two of the largest publicly traded pure-play companies in the renewable industry globally namely TerraForm Power (Nasdaq: TERP) and TerraForm Global (Nasdaq: GLBL); both were recently sold to Brookfield Asset Management. In India, we are focused both on the solar and water market. We have an existing portfolio of 120 MW of operating assets, including both ground mounted and rooftop projects, and a pipeline of 281 MW of ground mounted projects. We have built an extraordinarily development company in India and what sets this team apart is the global perspective and the linkages that we are able to leverage using the Everstream connect. We believe that the current market dislocation will provide an opportunity to acquire operating assets at attractive valuations apart from executing greenfield projects. We are increasingly looking at doing more water projects in water re-use and desalination segment.

MAY- 2020

interview

Mr. Deepak Thakur CEO â&#x20AC;&#x201C; HES, Sterling and Wilson

Energy storage projects will increase in India for peaking power tariff tenders He added that the firm will expand its portfolio in integrating storage solutions and is positive that the hybrid market will grow with higher renewable energy penetration into the grid. The hybrid and energy storage (HES) division, part of the solar power generation company Sterling & Wilson, was launched in 2018.

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Deepak Thakur, chief executive officer of its HES division in an exclusive interview tells ETEnergyWorld they are awaiting hybrid EPC tenders in Leh, Chhattisgarh, Lakshadweep from SECI, NTPC, in the coming months and are focussing on roundthe-clock power concept. Edited excerpts

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interview

Q1: Give us a brief overview of the size of the company’s operations and the hybrid energy and storage business? DT: The global turnover of Sterling and Wilson in 2018-19 was Rs 12,207 crore. The Hybrid and Energy Storage (HES) business provides EPC solutions for hybrid power plants and energy storage. These hybridized storage solutions can be applied to large fossil and renewable power plants, data centers, the C&I segment and also remote settings such as islands. We offer these solutions to a range of clients — independent, community of ‘behind the meter’ end-users, project developers, public utilities etc. The company has delivered 9.5 GW of solar, diesel, and gas-based power plants on a turnkey basis.

Q2: The HES division was launched exactly two years back in April 2018. Can you share details — capacity and location etc — of the projects bagged/commissioned in India in this time? If the company has not commissioned any projects in India in two years, is that not slow progress? DT: Indian Hybrid market got the push from MNRE/SECI couple of years ago. Initial projects which were announced and tendered were Wind Solar Hybrid of 1.2 GW and 700 MW CTU connected Wind Solar Hybrid Projects. These were tariff-based bidding projects, which were not pure-play EPC contracting business models. Recently, SECI came out with an RTC power supply tender and peaking power supply tariff, which are all hybrid projects under the same tariff-based bidding structure. In 2018, the first large EPC Hybrid project was tendered, with a configuration of 40 MW Wind, 120 MW Solar + Storage, which was partly funded by World Bank. SWPL was the lowest bidder and received the LOI from SECI. However, due to unforeseen circumstances, this project could not take off. In India, we are awaiting Hybrid EPC tenders in Leh, Chhattisgarh, Lakshadweep from SECI, NTPC, and other large utilities in the coming months. We are quite positive that the Hybrid market will grow with higher Renewable Energy penetration into the Grid.

Q3: What are the specific business opportunities or tenders the company is eyeing in India in the HES space? DT: HES is specifically focussing on opportunities like Roundof-the-Clock (RTC) power concept coming up in Solar Energy Corporation of India (SECI) and National Thermal Power Corporation (NTPC) tenders. S&W is also positive about the fact that the energy storage projects are going to increase in India for peaking power tariff tenders. We will expand our portfolio into engineering and integrating storage solutions to address this potential market in India. We are also focussing on upcoming Wind, Solar Hybrid projects, as targeted by the Govt of India under MNRE/ SECI.

Q4: Can you give us details of the current ongoing projects and what is the capacity of the projects executed by the HES division? DT: The company has executed a hybrid project with Solar + Diesel + Battery in Nigeria, under the Energizing Education Programme from Rural Electrification Agency (REA) for three sites. This comprises 37 MWh battery energy storage systems, 5.7 MWp solar, and DG of 4.4 MVA. It is providing power to universities in West Africa. In Niger, we have won a large Hybrid project of Solar + DG + Battery + Transmission line as part of a consortium bid. We would start implementing another solar-gas-storage hybrid and solar-DG-storage system integration project by the end of Q1.

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Q5: What are your expansion plans for India and the global markets? DT: Hybrid power, along with battery storage, has gained traction in recent years due to the inherent benefits of facilitating power predictability, serving 24 x 7 energy needs with optimization of fossil fuel-green energy mix, reducing the carbon footprint. According to a report, the global hybrid energy, including the storage market, is projected to be about $40 billion by 2025. Our parent SP Group is present in 60 countries. The S&W portfolio is spread in India, Middle East, Africa, South East Asia, and the Caribbean. Over the last couple of years, our solar business has expanded into North, South America, and Australia. The expansion plans for the HES business include leveraging S&W’s existing worldwide presence. However, the focus is on specific markets like South Asia, Africa, South East Asia, and Australia in the medium term. This is based on the assessment of each market in terms of the regulatory framework, policies, energy scenario, T&D scope, and trends. We have built domain expertise in hybridization and storage, and these operations are spread across four locations, in addition to India.

Q6: What steps should the government take on the policy front for promoting hybrid energy storage in India? DT: India’s resolve to achieve 175 GW renewables capacity by 2022 will help build a new energy security architecture in the country. And, this transition can be enabled through robust policy implementation and availability of utility-scale battery storage services.

Q7: How do you see the hybrid energy storage industry growing in the coming years in India? DT: The Ministry of New and Renewable Energy (MNRE) has stated that based upon the availability of land and solar irradiation, the potential of solar and wind energy in the country is around 750 GW and 300 GW respectively. However, the current installed capacity of Solar and Wind in the country 35 GW and 38 GW respectively, as of February 2020. At present, close to 63 per cent of the total installed capacity is being met by thermal energy and around 23 per cent through renewable energy, while hydropower accounts for almost 12.5 per cent.

This points to the urgent need for further exploitation of renewables sources of energy, and hybrid and energy storage should be integral to this scheme of the framework. The clear trend in the recent past, which is expected to only grow, is that the demand for electricity will be met more through renewable energy (RE) installations. The economics of solar and wind power today definitively outweigh thermal power generation, and this is a huge lever, in addition to governmental push towards RE. While intermittency and unpredictability are known limitations of renewable energy, hybridization mitigates these issues effectively. An existing solar installation, for example, can integrate wind to make it capacityefficient and likewise, a wind farm can accommodate solar installations on the same land parcel. The unutilized energy can be stored in a Battery Energy Storage System (BESS) and used whenever required. Storage provides a flexible source and load to mitigate voltage regulation limitations and, hence, once the hybrid set-up is connected to a BESS, it becomes a truly robust and viable energy source.

MAY- 2020

interview

Mr. Pradeep Kumar Director- India and Srilanka, Longi Solar

According to Pradeep Kumar- Director of Business at LONGi Solar, the solar power segment in India is witnessing a rapid uptake of higher efficiency technologies like monocrystalline. A strong supporter of this technology transition, Kumar comes with a professional experience with electrical industry giants like Crompton Greaves and Raychem RPG. He worked for four years with Sungrow, before joining LONGi in December 2019.

In his current role, he oversees business development and contracts with large IPPs & EPCs across India and Sri Lanka. With over a decade of experience, he has a strong understanding of the solar supply chain dynamics in India as well as the associated regulations. Amidst the uncertainties pertaining to basic customs and safeguard duties, and ALMM processes, Kumar is driving the team to achieve the highest market share in the country. In this interview, Kumar talks about the ongoing transition towards monocrystalline modules, and bifacial in near future.

EQ: How has been Longiâ&#x20AC;&#x2122;s journey in the Indian solar market?

EQ: What has been the penetration of monocrystalline technology in this market?

PK: Longi has been in the Indian solar industry for the past four years. In the early years we did not have a big team in the country. The situation has now changed and the solar market in general has shown a growing preference for the LONGi Hi-MO 4 module with M6 wafer (166mm). We have a full-fledged team now to handle a large portfolio of projects. The total deployment of our modules so far has been around 1.25 GW. This capacity is already operational and all our customers are extremely happy with the performance and service of our products. Now we are signing up for larger contracts. We aim to be number one in India by end of year 2020, targeting atleast4 GW of business by catering to most of the module requirements for esteemed projects to be executed by top project developers in India. We have already booked orders for 2.6 GW in the initial two months of calender year 2020, primarily for dispatches in Q3 and Q4. India is a very strategic and promising market for us and we hope to do good business here in coming years.

PK: Indian EPCs and developers have started deploying modules made using monocystalline technology for most of their upcoming projects. Higher efficiency with lower degradation levels, combined with other advantages have made this technology the most reliable and feasible solution for all big projects in India and across the globe. We are now signing contracts for the supply of mono PERC modules for very large projects with top developers and EPCs in India. The market size for this technology can be gauged from the fact that if 10 GW of solar capacity will be deployed in India in the year 2020, we feel around 7-8 GW will be based on monocrystalline technology. In reality, it might be even more.

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MAY- 2020

EQ: What is LONGiâ&#x20AC;&#x2122;s plan to manufacture modules in India? PK: LONGi has a strong manufacturing presence in China across the PV manufacturing value chain, right from ingots and wafers to cells and modules. We also have very aggressive plans for manufacturing modules in India and have been exploring all possible business models to do so. We have short listed two strategies so far and will soon decide which one is the most feasible option for us. So, you may hear a big announcement from LONGi shortly once we finalise the right option.

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interview

The intention is clear that we want to set up a factory in India, be it directly or through a joint venture. As we see that the future for solar is very bright for India, setting up a factory here will definitely help us to diversify capacities and help us in catering to the module requirements of India and other potential regions across the globe.

EQ: What is the module price guideline for the next few quarters? PK: There are two major PV technologies in India currently. Polycrystalline – which is the most widely adopted, and monocrystalline- which is fast gaining traction. There exists a price difference between the two technologies. Monocrystalline technology continues to charge a premium over polycrystalline due to higher generation and better reliability offered by the former. We will continue to have a competitive pricing strategy for India.

EQ: Beyond monocrystalline, what is the PV technology outlook in India? PK: Technology outlook depends a lot on its acceptance in the Indian market. Bifacial, by all standards is a better product compared to monofacial modules. The only challenge for bifacial pertains to economies of scale – the more the volume, the better will be its pricing and suitability for a project. In the initial stage, a few developers are accepting a small risk of taking a trial of this technology which we have already been discussing with them. Some developers are already deploying our bifacial modules for a smaller volume of their projects, which is a positive sign. Once these trials are completed, the difference between mono and bifacial will be evident. In markets like Middle East, the sector has already shifted to bifacial as it is highly successful in their natural conditions. We are hopeful that Indian solar market will also shift to bifacial technology on a large scale by 2021.

EQ: What are your views on customs duty and safeguard duties imposed by the government? PK: There is not much clarity on what has been the government’s intent – whether it is about imposing Basic customs duty (BCD) or about the continuation of safeguard duties after August 1, 2020. We expect clarity as well as uniformity on these from the government. We are hoping for fair play – if basic customs duty is imposed on any manufacturer, it should be uniform across Indian and foreign manufacturers. This will promote healthy competition in the market -purely based on the capacities and capabilities of the manufacturers. It has to be a strategic call by the government. As far as safeguard duties are concerned, they will most likely be removed this year.

EQ: What are the other key issues faced by solar manufacturers?

PK: There are not many significant hurdles but we certainly need clarity regarding BIS certification norms and MNRE’s decision to enlist models and manufacturers on the Approved List of Models and Manufacturers (ALMM). We are happy to be a part of such processes that is being implemented; the only expectation is to have early clarity on these processes because it has a direct impact on the pace of project implementation. This in turn will not just affect solar revenue generation but also the orderbook of manufacturers as developers will need to postpone the contracts to comply with the new regulations. Another challenge pertains to the sudden increase in modules demand for projects that got postponed due to PPA issues in states like Andhra Pradesh and Telangana as well as those that were lined up for commissioning in the quarters ended September and December. It is estimated that atleast 5-6 GW of modules will be coming to Indian ports between June – December 2020.

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This will create a big rush for clearances at the ports and inland logistics, which we feel is going to pose a challenge for the manufacturers as few developers might decide to delay the shipments to avoid this congestion. If there exists such delay, it will hit the revenues of module manufacturers and also create an imbalance in demand and supply forecasts.

EQ: What is LONGi’s share in the utility and rooftop solar segments in India?

PK: LONGi has been strategically growing its base in India. Until last year, we were not very aggressive as polycrystalline was a dominant technology. Acceptance of monocrystalline technology has picked up tremendously this year and we are set to scale up our market share. In 2020, we expect to have 30 per cent market share in the utility-scale segment and between 10-15 per cent in the distributed solar space (including rooftop).

EQ: How has the competitive landscape for mono PERC emerged in India?

PK: In India, our key competitors for monocrystalline technology are Jinko Solar, Ja Solar and Trina Solar. A few domestic manufacturers are also producing monocrystalline modules but their scale of production is too small in comparison. As of now, there exists a healthy competition for mono PERC in India.

EQ: What opportunity do you see in niche segments such as floating and hybrid solar?

PK: We have been in discussions for a 70 MW floating solar project coming up in India. The potential for such projects is big in India but their implementation is not so easy. The technology for floating solar projects is mostly imported from countries like China or Spain and the on-ground issues in India are different from those countries. It is just the initial phase and the technology might get proven by next year. Once that happens, the floating market is likely to pick up as the potential is huge and issues like land constraints do not apply to this segment. As far as modules are concerned, we have a substantial advantage in this space as LONGi has worked on a number of floating solar projects globally. We have supplied modules for the biggest floating solar project (150 MW) in China which was developed by Sungrow. We can bring in that experience on board and share it with local developers in India. In the hybrid projects space, there seems to be a lot of development. Many large-scale developers are working in this space on solar-wind projects as well as storage-based set ups. The government is pushing this segment and hence we see a significant opportunity in this market in the coming days. We will be supporting such projects both technically as well as in terms of high quality equipment supply and good service.

EQ: What are the new markets that LONGi is focusing on besides India?

PK: Middle East and Africa are the new focus areas for LONGi and a lot of manpower is being recruited for conducting business in this region. Middle East is emerging as a promising market with some very large-scale tenders coming up in the region. LONGi is already working closely with the key developers in the region.

EQ: What is LONGi’s outlook for the Indian solar market? PK: Indian solar market is very promising for a manufacturer like us and will remain a key focus area. We have a clear intent of being invested in this market and are thus exploring the opportunity of setting up a manufacturing base here. We are here in this market for the long run and would be very happy to contribute to the renewable energy mission set by the Indian government.

MAY- 2020

research & analysis

SOFAR SOLAR Refreshed the International Market Position Once Again! Century New Energy NetworkCNE analysis team released the export data of inverters manufactured in China in April 2020.

tatistics show thatthe value of export of inverters made in China in April was US $232 million (including photovoltaic inverter, off-grid solar energy inverter, vehicle inverter, etc.), 4.36% lower than last month due to the global 2019-nCoV epidemic. Since 2020, SOFARSOLAR's global market performance has been eye-catching. This time it ranked third in the monthly list of value of export of China’s inverter brands, once again refreshing the position of SOFARSOLAR in the international market. Headquartered in Shenzhen, China, SOFARSOLAR is a wholly-owned subsidiary of Shenzhen SOFAR Group. SOFAR Group was founded in 2007, involvingSOFARCommunication, SOFARSOLAR, SOFAR Industrial Park, investment and other businesses, among which SOFARSOLAR has become one of the top 5 series inverter enterprises in China and the global leader in energy storage inverters. Relying on the strong capability and financial support of SOFAR Group, SOFARSOLAR was established in 2013, focusing on inverter product research and development, production, sales and service, and providing customers with comprehensive solutions. At present, it mainly provides energy storage inverter, AC-coupled inverter, 1-3kW single-phase photovoltaic grid-connected inverter, 3-6kWdual-channel MPPT photovoltaic grid-connected inverter, 4-120kWthree-phase photovoltaic grid-connected inverter, battery, battery cabinet, charging pile and other products.

MAY- 2020

CurrentlySOFARSOLAR covers more than 60 countries and regions in the world, and occupies an important market share inChina, Italy, Poland, the Netherlands, Brazil, South Korea, Germany, Vietnam, India, Russia, South Africa, Pakistan, the Philippines and other countries. SOFARSOLAR has become the trustworthy inverter brandpreferred by the local. The international market is an important part of SOFARSOLAR'sglobal strategic layout. In recent years, SOFARSOLAR has actively raised the ratio of resources and made both efforts in domestic and foreign markets. In the face of market changes, the company adjusted its market strategy in a timely manner to ensure that the domestic market progressed steadily and sales performance continued to rise. For the foreign market, based on the longterm market cultivation, SOFARSOLAR continues to cooperate in-depth with internationallyrenowned enterprises. With the swift development of international performance and the rapid increase of market share, SOFARSOLAR has continuously refreshed its international market position. Since 2020, encountering the impact of the global 2019-nCoV epidemic, SOFARSOLAR has kept its international market sharecontinuing to grow by taking positive and effective measures. According to the monthly list of value of export of China’s inverter brands released by CNE analysis team, SOFARSOLARleapt to the third place. This is the recognition from the market, and it is also the best embodiment of SOFARSOLAR to be the most innovative expert enterprise in the industry of persisting in starting from customers and creatively providing customers with valuable services. In the future, SOFARSOLAR will uphold the corporate mission of "Creating Clean Energy and LeadingAGreen Life", quickly promote the popularization and application of photovoltaic power generation, and strive to become aproud partner of global customers.

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MAY- 2020

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Technology

Backsheet - a Guard for your Solar Modules With the huge thrust on Renewable Energy Segment, a rapid growth of Global Solar PV market has been observed in the last five years. Lot of new demands werecreated - utility scale and roof-top segment have been phenomenal across the World. But often it has been observed that quality issues with the solar module come as an attached nightmare for the Industry. Rampant drive towards reduction of cost of solar power and ignorance about the solar modules’ materials aspects and its contribution towards life, have often lead to quality compromises which mostly lead to these problems.

ne of the most critical constituent materials used in the construction of a Solar PV module is the backsheet. The backsheet is the outermost layer of the PV module placed at the non-sunny side of it. While the backsheet contributes only 4-5 % of the total cost of a solar panel, the criticality of a solar panel backsheet is quite high compared to its cost contribution. While choosing any solar panel, one needs to give enough thought in figuring out more about the backsheet. High quality backsheet will ensure solar panels’ longevity and ability to survive very difficult environmental conditions for 25 long years.

The backsheet is basically a polymeric laminate that protects the PV module from UV rays, moisture and other weathering aspects along with guarding as an electrical insulator. Thus it should have the superlative properties of protection against moisture ingress, weatherability, mechanical strength, adhesion, dielectric properties, reflectivity etc. or an optimized balance of all of these.

Generally, backsheet is a three-layer laminate but there are lot of varieties available in the market be it the basic protective layers likeflouride-based polymers, polyesters, polyamides, polypropylene etc. or thickness or combination of layers. Till decade and half back,Tedlar was the only choice for protective layers of backsheetsfor solar modules – and it is still the only polymer that has proved its long-term (25 years or more) reliability in the field.The demand based economy had driven the backsheet industry to come up with newer technology based solutions in the form of PVDF which already has a proven track record of more than a decade.

MAY- 2020

To serve the purpose of cost reduction, industry has seen the evolution of materials along with layers getting thinner and fewer, removal of solid innermost layer with PE based solution or usage of coatings. A wrong choice of backsheet can lead to severe adverse effect on modules and its very early failure due to backsheet’s cracking, yellowing and delamination etc.

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Rooftop & Offgrid

Accelerating India's Rooftop Solar PV Sector through Demand Aggregation Strategies The Government of India has set ambitious targets to drive the shift towards renewable energy. With regards to solar energy, the 100 GW target by 2022 consists of 60 GW of utility scale and 40 GW of rooftop solar.

itherto, proactive measures by the government through its various arms such as National Thermal Power Corporation Limited (NTPC) and Solar Energy Corporation of India (SECI) has made it possible to get closer to the utility-scale target. On the other hand, the rooftop photovoltaics (RTPV) sector has seen slower progress despite heavy subsidies and incentives to consumers. Since the industrial and residential sectors cover more than half of total electricity consumption nationwide and have considerable roof area; these low hanging fruits can be targeted to meet the targets . The RTPV sector is facing many challenges such as affordability among weaker economic segments, high customer acquisition costs due to the distributed nature of the business, lack of awareness and know-how of what benefits RTPV systems can bring to consumers and the unavailability of Renewable Energy Service Company (RESCO) model in some states. The need of an hour is to find ways in boosting rooftop solar sector installations. One possible way, which this article focuses on is through demand aggregation. Demand aggregation is the process of bringing together several potential RTPV consumers, preferably geographically co-located and then presenting this as a single group of customers to an installer or an investor. Several pilots by The Energy and Resources Institute (TERI) and World Resources Institute - India (WRI India) have proved that by aggregating demand, the problems of customer acquisition cost and lack of awareness could be solved ,3. This can be done by targeting industrial unions and housing societies, all avenues where people of similar energy requirements and roof types can be brought together. These aforementioned pilots have shown initial promise. According to the WRI India, 40% of total customers who were involved in that project were motivated because of the financial benefits and the remaining 60% were inclined due to the technical guidance by these technical experts .

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There is an urgent need for both the central and state governments to provide the necessary policy support for demand aggregators. This can work similar to the online retail aggregators, but with greater on-ground engagement. Certain business models should be allowed to make the concept effective. These strategies can be driven from both ends, wherein governments, end consumers or third party aggregators such as Gujarat Energy Research and Management Institute (GERMI), TERI and WRI India can initiate the process of aggregating demand. Incorporating demand aggregation models with the existing RTPV programs in the states also could be an added advantage to increase the visibility and credibility. Some of the strategies are a) to float separate tenders by forming geological clusters, b) loan based models for consumers with lower-income or c) by starting campaigns to market the concept of demand aggregation. Community solar also can be considered as a demand aggregation tool, which is referred to as a solar installation that is collectively owned by more than one individual and the units generated by that system are offset in their respective accounts according to their stake in the system.

Demand aggregation can potentially help installers increase scale and reduce customer acquisition costs. This eventually benefits the customers by installing RTPV systems with lower cost. To engage in such community driven projects, it is very likely that these motivated consumers will also bring others on board. This is the need of the hour for the RTPV sector in India to move closer to meet the target of 40 GW, if not for fulfilling it.

Author:

Mr. Prathit Dave Junior Research Fellow advisory group at GERMI

MAY- 2020

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inverters

The world's most powerful 1500V string inverter SG250HX-IN

urrently, solar power generation faces significant growth due to global awareness and favorable government policies. At the same time the PPA price for solar continues to decrease, which is already lower than traditional power generation in some countries. One example is a 500MW solar plant in Qinghai province, China. Therefore, solar plant investors pay more attention to the Levelized Cost of Energy (LCOE).

The application of new technologies such as tracker system and bifacial module will reduce the LCOE. But a question remains: How to match the new technologies and deep integration with the solar plant? Due to lack of flat land, solar plant are now installed over complex environmental conditions like hilly areas, coastal areas and desert regions. In this context, Sungrow introduces the world's most powerful 1500V string inverter in 2019 — SG250HX-IN, which is a global product in compliance with both IEC and UL standards.

12 MPPTs Compatible with Bifacial Module and Tracker System, High Yield International Solar Energy Research Center Konstanz indicates that the lowest LCOE of 1 USD cent/kWh is expected in 2021/2022 and the leading technologies to achieve this goal will be bifacial module plus tracker system. The single axis or multi axis tracker system plus bifacial module will require higher full-load operation capacity and pose more challenges for the inverters. Sungrow’s SG250HX-IN can run at full load for a long time attributing to reliable and robust components

MAY- 2020

selection with advanced design. Additionally, SG250HX-IN is embedded with 12 MPPTs to adapt complex terrain and enables 26A input current per string, perfectly matching the bifacial modules. SG250HX-IN also provides reserved power supply and communication interface to tracker system. SG250HX-IN has 0.3~0.5% higher yield compared with its competitor through PVsyst simulation, which will bring a higher performance.

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inverters

SG250HX-IN compatible with Bifacial Module & Tracker System

Bigger & Flexible Block, Cost Saving As a recent study shows that the global market for large-scale PV installations is shifting to bigger block design to reduce LCOE. Based on the cost comparison of different capacity block, 6~9.6MW block enables lowest cost. Sungrow’s SG250HX-IN is suitable for any block size between 3MW to 9.6MW and higher depending on customer’s design. The SG250HX-IN typical system diagram is shown as figure:

The SG250HX-IN and communication device supports PLC (Power Line Communication), which decrease communication cable cost. Detailed CAPEX study indicates that SG250HX-IN will save 0.2~0.3 USD cent/Wp compared with competitor.

System Diagram

Adapt to Harsh Environments In recent years, more solar plants are installed in coastal areas and desert areas which pose challenges to inverters. With smart forced air-cooling technology, the SG250HX-IN can work stably in scorching heat. On account of lower internal temperature than the temperature in natural cooling method, the lifetime of the SG250HX-IN will be longer. Due to separate electrical/ cooling chamber design, SG250HX-IN provides an ingress protection rating of IP66 for all chambers and anti-corrosion design with C5 protection degree, making it ideal for applications in coastal areas, chemical industrial region and other typical harsh conditions.

High protection rating and low internal temperature

Smart Monitoring Makes Fault Diagnostics Easy Sungrow can provide a complete monitoring solution for SG250HXIN which includes COM100 (Smart Communication Box), Insight (Local SCADA), iSolarCloud (Remote SCADA), PPC (Power Plant Controller). Sungrow’s monitoring solution supports I-V curve scanning and diagnosis which can finish a full-scale plant diagnosis in 15 minutes with an accuracy less than 0.5%. It makes easy to locate faults caused by dust shielding, glass panel cracking, dirt shielding, diode short circuit, gate line disconnect and PID attenuation in order to reduce power generation loss.

Summary The SG250HX-IN is the most powerful 1500V inverter in the market to date and is equipped with the latest solar technology to withstand new challenges and suitable for utility-scale solar plants. It will undoubtedly bring higher

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yield and lower CAPEX. IP66 protection and C5 anti-corrosion capability make it easy to adapt to harsh environments. The smart monitoring solution can accurately locate faults to ensure power generation benefits of solar plants.

MAY- 2020

technology

Power-up bifacial modules with clear backsheet for reliable performance Bifacial is gaining traction globally and is expected to get majority of the market share over the next few years as confidence is established on the technology and higher generation. Bifacial modules have traditionally been front glass-back glass (G-G) structures owing to lack of good transparent backsheet (GB) options. Introduction of transparent backsheets with field proven Tedlar® PVF film provides a reliable solution. Benefits of Glass-Transparent Backsheets (G-B) over Double Glass (G-G) – Lower cost of ownership

BENEFITS

REASON

More Reliable and Durable

1. >35-years of field proven glass-backsheet structure 2. Lower power degradation rate 3. Lower risk of PID

Better generation

G-G panels operate 1 – 3°C higher than G-B Solar Panels

Lower installation & O&M cost

1. No change in structure design and weight 2. Lighter weight enables easier installation, and lower

labor cost 3. Less risk of breakage during transportation and installation Lower manufacturing cost

1. No change in manufacturing process – no additional capex investment

2. Higher yield rate (More fragile G-G is prone to

cracking during manufacturing) 3. Faster lamination speed enables more production Evolution and Field Performance: G-G vs. G-B Solar Panels G-G solar panels have been in use for a few decades now. Gen 1 G-G solar panels had 3.2 mm fully tempered glass (front and rear) and an aluminum frame. However, they exhibited high power degradation due to cell corrosion and encapsulant browning and delamination in the studies conducted by JRC and DuPont, respectively. JRC has reported an average annual degradation rates of ~1.3% and ~0.3% in double glass and glass / Tedlar® backsheet solar panels (aged between 19 – 23 years), respectively[1]. The primary reason for this high degradation in G-G structures is the entrapment of moisture (which seeps in through the edges of the modules), that gradually corrodes the metal contacts, cells and accelerates power loss. However, breathable backsheets allow for quick ingress and egress of the moisture, preventing its water entrapment inside the panels.

15 years old plant with double glass in China, severe encapsulant browning and corrosion, 100% power loss.

MAY- 2020

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technology

10 years old plant with double glass in USA, encapsulant discoloration and delamination, plant decommissioned due to high power loss Next generation G-G solar panels were launched around 2017, albeit with a few changes – 3.2 mm thick fully tempered front and rear glasses were replaced with 2.5 mm thick heat strengthened glasses and were frameless– to minimize the weight and the cost. However, these design changes led to massive failures (bending and glass cracking) in less than 2 years in the field. This prompted inclusion of frames, which increased the cost, weight and more susceptibility to PID. In the current generation G-G panels, thinner 2 mm heat strengthened glass (HSG) is used to reduceweight. However, HSG increases the risk of glass cracking due to snow and wind loads and hot spots.

Bending of double glass panels in ~15% panels after 1 year.

Cracking of double glass panels in ~10% panels after 2 years.

In the current generation G-G panels, thinner 2 mm heat strengthened glass (HSG) is used to reduce weight. However, HSG increases the risk of glass cracking due to snow and wind loads and hot spots. G-B structures especially those with Tedlar® based backsheets, are field proven over more than 35 years and have demonstrated low degradation rates across different applications, geographies and climates.

Conclusion Bifacial technologies with their higher yield are expected to gain share in the near term. The stakeholders are striving to establish robust solutions for the front and rear layers: balancing the variables of efficiency improvement, higher weight and reliability requirements. G-G panel structures traditionally preferred for bifacial continue to extend challenges for the manufacturers and developers. A new development: Glass – transparent (clear) Tedlar® based backsheet (G-B) structure, with its lighter, mechanically stronger and easier to install advantages provide a reliable alternative and is increasingly gaining acceptance globally.

Reference [1] Joint Research Centre (Italy)

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AUTHOR

RAHUL KHATRI

Technical Leader – South Asia DuPont Photovoltaic Solutions

MAY- 2020

technology

Which solar PV module should I select?

In the past few years, solar PV market has grown in a very big scale in India. With this growth, a lot of PV module manufacturers have entered the market with a diversified range of products. Having almost similar technical ratings and similar warranty terms, sometimes it becomes very difficult for the users to select a right solar PV module for their system. This article is an attempt to summarise different factors one should consider while selecting a solar PV module for their system.

1. Efficiency of the module

There is always a wrong conception people make regarding efficiency of PV modules. It is not always correct to say that if we select a higher efficiency module, than we will get higher energy output. Let us understand how efficiency effects energy output from the project and how efficiency factor should be considered before selecting a solar PV module. In the above figure, it can be seen that different power rating modules have different efficiencies and same physical size. Letâ&#x20AC;&#x2122;s consider WS-340 model with power rating 340 Wp, efficiency 17.52% and size 1960mm x 990mm and see how efficiency is calculated for this: Sample PV module data sheet

Now letâ&#x20AC;&#x2122;s consider two scenarios and see the effect of efficiency under those scenarios. Scenario 1: 10 kWp system with WS-330 (efficiency 17.01%) and 10 kWp system with WS-345 (efficiency 17.78%) model. Under this scenario, we have an option to select from either 17.01% and 17.78% efficient modules. Since, installed capacity of system is fixed i.e. 10 kWp,it does not make any difference whether one selects WS-330 or WS-345.Energy output will remain same in both the cases. Scenario 2: 20 number of WS-330 (efficiency 17.01%) and 20 number of WS-345 (efficiency 17.78%) model modules. In this scenario, since the number of modules are fixed, energy generated from 20 number of WS-345 modules will be more than energy generated from 20 number of WS-330 modules. The reason of higher energy is higher installed capacity of 20 number of WS-345 modules when compared to installed capacity of 20 number of WS-330 modules. A higher efficient module will not be beneficial if the installed capacity of the project is fixed. However, a higher efficient module will be beneficial to meet the higher energy and higher installed capacity in case roof space is a constraint.

2. Temperature coefficient of Power Temperature coefficient of Power is mentioned on the module datasheet. This is very important parameter one should consider while selecting a PV module between different manufacturers. As we know temperature has a negative impact on the performance of the PV modules, i.e. as cell temperature increases, power of a module decreases. This decrease is indicated as Temperature coefficient of Power on the module data sheets. Few examples as taken from various module datasheets are shown in figures below:

Temperature Coefficient of Power for Sample Module 1

Hence, one should select a higher efficiency solar PV module when there is a space constraint to meet the expected solar PV installed capacity. Temperature Coefficient of Power for Sample Module 2

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technology It can be seen from the above Figure 2 and Figure 3 that sample Module 1 has a Temperature coefficient of Power equal to 0.41% / °C while the sample Module 2 has 0.39% / °C. This means that at higher temperatures, Module 1 will have more power losses when compared to Module 2.

In the above calculations, it can be seen that at same ambient temperature, cell temperature of Module 1 is lower than the cell temperature of Module 2. Hence, there will be more power losses in Module 2 than Module 1, as we know that higher the cell temperature higher will be the power loss.

Hence, a Module with lower Temperature coefficient of Power should be selected if project is designed for higher temperature regions.

4. Power tolerance of the module

3. NOCTvalues of the module Every manufacturer provides NOCT (Nominal Operating Cell Temperature) values of solar PV module on the technical datasheet. NOCT values define the expected cell temperature at different ambient temperatures.

Hence, a module with lowest NOCT is always preferable. In the market two power tolerance type of modules are available, positive tolerance and negative tolerance. Negative power tolerance means, the power rating of the module can be less than the peak rating mentioned in the data sheet. For example a 330 Wp (±5% tolerance) means the module rating can be anywhere in between 313.5Wp to 346.5 Wp. So, there is always an ambiguity, whether one will get higher rating module or lower rating module. On the other hand, a 300 Wp (0,+5% tolerance) means the module rating can be anywhere in between 330 Wp and 346.5 Wp. Hence, in case of positive tolerance modules, there is no ambiguity that one will get lower power rating module. Hence, Positive power tolerance module should be preferred over negative power tolerance module. In the above article few major parameters were discussed, however there are many other parameters too, that should be considered while selecting a solar PV module. Below table can be referred for this: Parameters

NOCT value for Sample Module 1

Choice for Best Modules

Price

Competitive

Availability

Commercial Available

Fill Factor

Higher

NOCT

Lower

Temperature Coefficient of Power Lower

NOCT value for Sample Module 2 Module 1 has a NOCT value of 47 °C and Module 2 has a NOCT value of 48 °C. Let’s use these values to estimate maximum cell temperature for both the modules, considering maximum ambient temperature of 45 °C. Highest expected cell temperature can be calculated by using below mentioned modified formula:

Efficiency

Higher (if space is constraint)

Power Tolerance

Positive

Number of Cell Busbars

Higher

Number of Bypass diodes

Higher

PID

PID free

Selection of Solar PV module should not only be done on the basis of cheap price. Consideration of other factors are also very important.

AUTHOR Lucky Aggarwal

Senior Consultant GSES India Sustainable Energy Pvt Ltd. Managing Director SolarTechSaarthi Pvt Ltd.

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MAY- 2020

research & analysis

World’s largest lockdown and its consequences for the electricity sector

The world’s largest COVID-19 lockdown has been in place for the past fortnight in India where 1.3 billion people are advised to stay at home for 21 days. Most of the offices, large and small-scale industries, commercial establishments (malls, theaters, supermarkets etc) are ordered to remain shut to control the spread of COVID-19. Schools, colleges and religious places are also shut to control the disease spread. Only hospitals, a few essential industries and a few commercial establishments are allowed to operate. Even Indian Railways has stopped its operation making public transport coming to a standstill in the entire country.

his situation has led to a large reduction in peak electricity demand across the five electricity regions of the country. The above figure (Figure 1) depicts the all India peak electricity demand for the preceding two weeks. The week (16/03 – 22/03) was a normal week and the week (23/03 – 29/03) was a lockdown week. In the lockdown week, all India peak demand on an average was reduced by 20 per cent when compared to the normal week. On Saturday (28/03) the all India peak demand was 115 GW down from 164 GW on Saturday (21/03) of the previous week i.e., a reduction in peak demand of close to 30 per cent. Figure 2 presents the percentage reduction in peakdemand during the lockdown week (23/03 – 29/03) as compared to the normal week (16/03 – 22/03) across the different electricity regions of the country.

MAY- 2020

As is observed from the figure, on an average across the lockdown week, the western region (WR) in the country felt the highest peak demand reduction of 25.19 per cent followed by northern (NR), southern (SR), eastern (ER) and north eastern region (NER) with 20.49 per cent, 14.66 per cent, 10.21 per cent and 9.70 per cent respectively.The state of Maharashtra and Gujarat (two of the major industrialized states in India) are the two highest consumers of electricity in India and that is the main reason for highest reduction in peak demand in the western region. The peak demand reduction in NER is low when compared to the other regions as there are not many industries in NER. Further, the electricity demand from railways too was very less. The same can be attributed to the eastern region too where the concentration of industries is less. In the SR especially with the closure of Multinational corporations, there is a substantial reduction in the peak demand.

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research & analysis The total installed capacity of India as of February 2020 is 369 GW (Coal 198 GW, *Renewable energy sources (RES) 88 GW and others) and with the highest peak demand of only 146 GW (24/03) in the lockdown week, the peak demand is just 40 per cent of the installed capacity. Even during the normal week with peak demand of 164 MW (19/03),

With more renewable energy resources added into the electricity system and the difficulty in switching off the renewable power, the generation from the fossil fuel power plants (coal and lignite) has been reduced. Figure 4 picturizes the electricity generation from coal and renewable energy sources for both the normal and lockdown weeks. With generation from renewable energy sources quite stable, the generation from coal power plants is significantly reduced to meet the lesser demand.

India has abundant supply to meet the electricity demand. Figure shows all-India electricity generation in million units (MU) for the normal week and the lockdown week. In the normal week the generation was as high as 3674 MU on 19/03 (Thursday) and it has reduced to 2,642 MU on 28/03 (Saturday) in the lockdown week i.e. the electricity generation has reduced by 27 percent.

In the normal week the average generation from coal-based power plants was 2,570 MUs and it has reduced to 1,986 MU whereas in the corresponding period the averagegeneration for RES was 341 MU and 284 MU respectively. However, a majority of the reduction is experienced in coal-based power plants. While these power plants have enough resources to operate and they are in good condition due to the reduction in demand, these power plants are intentionally shut. We can observe from the above data even in the normal week the generation was far less when compared to the available installed capacity.

Figure presents the plant load factor (PLF) of Coal and lignite-based power plants from 2009-10 to 2019-20. As we can observe from the figure, *PLF of 2019-20 (56.40 per cent) is at the lowest in the last 10 years and it is expected to decrease even further with this lockdown.

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