SolarQuarter April Issue 2019 by SolarQuarter

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Volume 09. l Issue 4

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April 2019

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+91 8879613521 Solar Quarter • April 2019

IN CONVERSATION

TABLE OF CONTENTS Optmistic Outlook For Indian Solar Market

Mr. M. Arun Kumar, Partner, INDUSLAW “We Are Specifically Recognised For Our Prominent Alternative And Renewable Energy Practice”

Mr. V.S.Mohan, PMP Country Manager, Alfanar Construction

15 SolarQuarter Women Leaders In Solar Sector 2019

“Alfanar’s Ambitious Mandate Of 3 Gws Pv Development In Next 5 Years In Mena, Europe And Asia”

Perspective Hybridization Of Solar Tender With Storage Component- The Road Ahead..............................................................................................16

Women Leaders In Solar Sector

Record Low Tariffs Discovered In The Recent Solar Auctions ......... ....................................................................................................................17

Opinion

Why Is Mono Silicon Wafer Getting Bigger And Bigger?

Sliding Tariff Trend And Its Impact On The Overall Project Viability ...................................................................................................18

Cover Story Safeguard Duty - “A Boon Or A Bane?” - Manufacturing Perspective .............................................................................................20

....24-25

Strategic Partnership

Solar Energy: The Perfect Match For EVs

Raychem RPG- Selecting the Right Energy Storage Systems for Solar Projects ........................................................................................23

Company Feature  I Energy / INVT- Solar Energy Has Come To Be Accepted As

A Major Source Of Energy For The Future ..................................19

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Solar Quarter â&#x20AC;¢ April 2019 5

India News

riano Solar Commissions 18.75 MWp For Aditya Birla Renewables In Chhattisgarh

“These solar PV power plants, jointly developed by Aditya Birla Renewables Limited and

ndia levies anti-dumping duty on solar cell component from four nations

New Delhi: India has imposed anti-dumping duty of up to $1,559 per tonne on imports of

Ultratech, contribute to achieving India’s Solar Energy goal of 100 GW by 2022. With high

a certain type of sheet used in solar cell making from China, Malaysia, Saudi Arabia and

construction quality and execution, Oriano team constructed the solar PV project in a very

Thailand for five years to safeguard domestic players against cheap shipments.

short time of less than 3 months,” said Samir Dash, Vice President - Operations, Aditya Birla Renewables. Yeshwant Rao, Co-founder & MD of Oriano, said, “We are committed to the construction of high-quality solar power plants in India.” Oriano Solar , which was founded in June 2015, has emerged as the fastest growing clean technology company in Asia Pacific by Deloitte Fast 500 in Dec 2018. Currently, Oriano is executing 134.5 MWp of solar projects to be commissioned by September 2019 and will surpass cumulative installation of 350+ MWp by the end of this financial year. India’s installed solar capacity has reached 28 GW by Dec 2018 and the Indian solar market is growing rapidly with over 17 GW of projects under implementation. “We believe that Oriano Solar is on a strong growth path and confident of crossing 1 GW of execution by Oriano by 2022,” said Sachin Jain, Co-founder & CEO, Oriano Solar. Oriano Solar works as an EPC partner for Utility-Scale projects and with C&I IPP developers in infrastructure development, evacuation and turnkey EPC. Oriano was awarded #1 ‘Solar PV EPC company of the year - Utility Scale (50-100 MW) - Gold’ by India Solar Week Awards in July 2018

ndia Working On Unified Portal To Help Consumers Set Up Rooftop Solar Panels

The Ministry of New and Renewable Energy in association with the World Bank and Asian Development Bank is developing a unified web portal, which will facilitate as a singlewindow clearance system for consumers looking to install rooftop solar panels. Besides, the portal will also help in promoting and creating awareness regarding usage of rooftop solar in India. “MNRE, ADB and the World Bank are developing unified web portal. The respective states are also part of the initiative. The portal will work like a single-window clearance system for the consumers looking to install rooftop solar panels, besides promoting and creating awareness regarding usage of rooftop solar in India. Today, if someone wants to install a solar panel at roof of his business unit,the person would not know who to approach,” said an official involved in the process.

xtension of Solar Safeguard Duty Imposition Period Unlikely

Last year, the Directorate General of Trade Remedies (DGTR) recommended a 25 percent safeguard duty on solar cell imports from China and Malaysia for the first year, followed by a phased-down approach. In the first six months of the second year, a safeguard duty of 20 percent will be payable by exporters to India, and in the latter half of the second year, exporters will pay a safeguard duty of 15 percent. The safeguard duty of 25 percent

In a notification, the Department of Revenue has said that after considering the recommendations of the commerce ministry’s investigation arm DGTR, it is imposing the duty, which is in the range of $537 to $1,559 per tonne, on imports of “Ethylene Vinyl Acetate sheet for solar module” being exported by these four nations. “The anti-dumping duty imposed shall be effective for a period of five years (unless revoked, superseded or amended earlier),” it has said.

ender Issued for 1.7 MW of Solar with Battery Energy Storage in Andaman and Nicobar

There has been a steady uptick in solar plus storage tenders in India lately. The Rajasthan Electronics and Instruments Limited (REIL), a public-sector enterprise operating in the electronics, information technology, and renewable energy segment, is the latest government agency to issue a tender to set up 1.7 MW of solar photovoltaic (PV) projects with battery energy storage system (BESS) in Andaman and Nicobar islands. This is an engineering procurement construction (EPC) tender, and the bid-submission deadline is May 4, 2019. A pre-bid meeting will be held on April 10, 2019. Bidders are required to pay bid security of ₹5 million (~$0.072 million). The projects will be developed on a turnkey basis. The scope of work includes the design, engineering, procurement, supply, packing, forwarding, transportation, unloading, storage at the site, site development, construction, erection, installation of equipment, testing and commissioning along with the associated transmission system. A 1 MW solar PV project with 0.5 MW/0.5 MWh (at the point of coupling) BESS will be set up in Havelock Island while another 0.7 MW solar PV project with 0.5 MW/0.5 MWh (at the point of coupling) BESS will be set up in Neil Island.

ndia stares at pile of solar e-waste

By 2050, India will likely stare at a pile of a new category of electronic waste, namely solar e-waste, says a study made public on Thursday. Currently, India’s e-waste rules have no laws mandating solar cell manufacturers to recycle or dispose waste from this sector. “India’s PV (photovoltaic) waste volume is estimated to grow to 200,000 tonnes by 2030 and around 1.8 million tonnes by 2050,” said the study by Bridge To India (BTI), an energy consultancy firm. “India is poorly positioned to handle PV waste as it doesn’t yet have policy guidelines on the same…a lack of a policy framework is coupled with the fact that even basic recycling

on solar modules and cells has been in effect since July 30, 2018.

facilities for laminated glass and e-waste are unavailable.

When contacted about this issue, Dhruv Sharma of Indian Solar Manufacturers Association

Despite the e-waste regulation being in place for over seven years, only less than 4% of

(ISMA) said, “No new petition is going to be filed. We have given up on that idea. Apart

estimated e-waste is recycled in the organised sector as per the latest estimates from the

from the levy of the safeguard duty, the government has provided Indian manufacturers

Central Pollution Control Board,” say the authors of the report.

with non-tariff support in the form of preference in the KUSUM Yojana and CPSU program.”

AIL and BHEL signed MoU for development of Solar based power project.

arnataka’s Pavagada Solar Park to be Fully Operational by December 2019

At Karnataka’s Pavagada Solar Park, approximately 1,400 MW of grid-connected solar

GAIL (India) Limited and Bharat Heavy Electricals Limited (BHEL) have inked a Memorandum

photovoltaic (PV) projects are operational. Recently, ReNew Power commissioned 300 MW

of Understanding (MoU) in New Delhi for cooperation in development of solar based

of solar PV capacity at the park.

power projects. Shri Santanu Roy, Executive Director (Business Development), GAIL and Shri S. Seetharaman, General Manager (Renewable Energy & Water Business), BHEL signed the MoU in presence of Shri Manoj Jain, Director (Business Development) GAIL and Shri S. Balakrishnan Director (IS&P) BHEL. GAIL shall be the project developer and BHEL shall act as an Engineering, Procurement, Construction and Project Management Contractor. BHEL shall also provide Operation & Maintenance services during the initial period upon becoming successful bidder. This development will help both the companies to leverage their competitive strengths to

The Pavagada Solar Park infrastructure was developed by the Karnataka Solar Power Development Corporation Limited (KSPDCL), a joint venture between the Solar Energy Corporation of India (SECI) and KREDL. It was initially built to host a capacity of 2,000 MW of solar at a single location spanning 13,000 acres of land. Later, it was decided to develop an additional 50 MW of capacity at the park. Out of the 2,050 MW capacity being developed at the park, the National Thermal Power Corporation (NTPC) is implementing 600 MW of solar PV, the Solar Energy Corporation of

build substantial portfolio in solar power projects in line with INDC targets of Government

India (SECI) is implementing 200 MW, while KREDL is implementing 1,250 MW.

of India.

When contacted, a KSPDCL official informed, “The entire 2,050 MW at Pavagada will be

The MOU aims at building a closer strategic partnership between the two Maharatna

operational by December 2019. SB Energy has that much time to commission its capacity.

PSUs for jointly pursuing commercial solar power projects through participation in Tariff /

For the 50 MW, solar PV awarded recently by the KREDL, the developer has up to October

Viability Gap Funding (VGF) based competitive bidding process.

2019 to commission the project.”

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Solar Quarter • April 2019 7

Asia News

ungrow Boosts its Commitment to Emerging Solar Markets in Asia-Pacific

South Korea outlines fresh incentives to prioritise renewable projects with a low carbon footprint, higher efficiency and stricter industry codes. Offering a comprehensive product

China’s solar manufacturers are unhappy with recent government policy changes that have put a brake on the sector. “We’ve already halted work on 11 megawatts of industrial and commercial distributed solar PV projects,” says the marketing director for one solar photovoltaic (PV) module

portfolio, Sungrow is establishing itself as the best platform in the sector to address a

manufacturer in Guangdong province.

wide range of demands. Products including commercial string inverter SG110CX, outdoor

This is one consequence of China’s “531” policy that was announced by the National

central inverter SG1250UD, integrated energy storage systems and one-stop solutions for

Development and Reform Commission, the Ministry of Finance, and the National Energy

floating PV plants are unveiled at Green Energy Expo held in South Korea, setting ongoing

Administration without warning on May 31(hence the “531” name). The policy is designed

efforts to further meet the diversified requirements locally.

to control breakneck growth in the solar sector, principally by accelerating the phase-out

“As one of the major dedicated players in the local solar industry, we are bringing forth

of subsidies.

a state-of-the-art product lineup together with service tailored for local customers,” said

China has led the world in new solar installations in each of the past five years, helped by

Luke Lu, President of Sungrow APAC Region. “We’ll strengthen cooperation with global

guaranteed electricity prices. But the cost of subsidies has been growing unsustainably,

partners in scaling up the applications of renewables and accelerating the steps to fulfill

and as manufacturers have expanded rapidly to meet demand the risk of overcapacity has

our mission of ‘clean power for all’,” he added.

grown.

The emerging APAC solar market has been experiencing dramatic growth over the past

The new policy brings the industry to a crossroads. During the 12thFive Year Plan period

few years and Sungrow is embracing proliferating opportunities in the region, especially

(2011-2015) subsidies were paid late and there was significant wastage of both solar and

considering the proximity of the Company’s manufacturing hubs.

wind power. Those lessons should have been learned by now, says Meng Xiangan, deputy director of the China Renewable Energy Society. To avoid a repeat, the sector can either

bout 70 percent of the global solar expansion in the last year was recorded in Asia

Through 2018, the world added 171 GW of renewable energy, witnessing a growth of 7.9 percent in renewable capacity during the year. These findings were revealed by the International Renewable Energy Agency (IRENA) in its new publication titled ‘Renewable Capacity Statistics 2019’.

lobby for an extension of subsidies and continue its rapid and unsustainable expansion, or accept that new capacity will face a tougher challenge on costs.

aiwan hits 1GW of downstream solar PV installations for the first time

The PV market has already gone through a long formation process, an analyst said.

Solar energy witnessed the fastest growth at 24 percent with capacity addition of 94

Solar photovoltaic (PV) installations in Taiwan hit 1GW for the first time in history, according

GW. Wind energy posted a growth of 10 percent with the capacity addition of 49 GW. In

to market research firm TrendForce. Moreover, the government is pushing towards a goal

comparison, hydropower grew by just 2 percent with a capacity increase of 21 GW.

of 1.5GW in new installations by the end of 2019.

Most of the new renewable energy installations are taking place in Asia as it added over

EnergyTrend analyst Sharon Chen commented that though the market scale for PV

105 GW of renewable capacity and accounted for 61 percent of new capacity additions in

systems aren’t as large as that of wind power, the PV market has already undergone a long

2018. Asia’s share in global renewable generation capacity accounted for 44 percent. In

formation process.

comparison, North America’s share of global renewable generation capacity accounted for

“Consider further the fact that PV charging stations have a relatively steady and high

16 percent while Europe stood at 23 percent.

return on investment, and it’s not hard to see why even banks and life insurance firms are

“Asia continued to dominate the global solar capacity expansion with a 64 GW increase

scrambling to claim a portion of this market,” she added.

(about 70 percent of the global expansion in 2018). In a repeat of last year, China, India,

The total capacity leapt nearly twice the figure in 2017 at 520MW.

Japan, and the Republic of Korea accounted for most of this. Other major increases were in the U.S., Australia, and Germany”, IRENA highlighted in its report.

engal could have South Asia’s largest floating solar power plant

ooftop Solar Power Potential For Vietnam Over Next Decade Pegged At More Than 4 GW

Vietnam holds promise for more than 4 GW of rooftop solar power capacity to be effectively commissioned in the next 10 years. Commercial and industrial installations will claim 95%

The plant could have a capacity of 500MW and a total investment of $365.11m.

of this, according to investment management firm VinaCapital. Till July 2018, 748 rooftop

Bengal could have South Asia’s largest floating solar power plant with a capacity of 500MW

solar power projects were in operation in the country with a total capacity of 11.55 MW, as

and a total investment of $365.11m (INR 2,500 crore), the Times of India reports. According

per Vietnam Briefing, a business news portal produced by the Dezan Shira & Associates.

to sources, the Kangsabati river at Mukutmanipur could be the location for the project.

In a post published by the Vietnam Investment Review, Samresh Kumar, VinaCapital’s

The German government-owned KfW is also keen to finance the project. The report noted

Managing Director of Principal Investments, said the country’s electricity consumption is

that KfW representatives were present during chief minister Mamata Banerjee’s Germany

expected to grow at 10% per annum over the next 5 years, but power supply is likely to

tour in 2018.

grow by only around 8.5% thanks to El Nino weather conditions which are bringing down

KfW could also fund a 200MW ground-mounted solar power plant that could attract an

its hydropower potential. Solar can step in to fill up this demand-supply gap.

additional investment of $145.99m (INR 1,000 crore).

The Vietnamese government allowed grid operators to sell power to national utility

The Ministry of New and Renewable Energy (MNRE) also announced a collaboration with

Vietnam Electricity Corporation (EVN) for a fixed price, and also put in place a net metering

KfW for the implementation of solar projects over water bodies.

scheme for rooftop solar power generation from systems in commercial operation by

launch a new payment mechanism for rooftop solar power generation through which EVN

hina Plans to Prioritize Non-Subsidized Wind and Solar Projects

China is prioritizing unsubsidized wind and solar photovoltaic (PV) projects. China’s National Energy Administration (NEA), has organized and drafted a project report on promoting non-subsidized affordable projects for wind and solar power generation. The construction work plan is up for comments and suggestions up to April 23, 2019. The effective date of the consultation paper (construction work plan) is until December 31, 2020. It is valid until the end of China’s ongoing 13th Five-Year-Plan (2016-2020). The consultation paper provides greater clarity on how the NEA intends to move forward during the remaining period of the ongoing plan. In the construction work plan circulated by the NEA, priority has been categorically given to the construction of unsubsidized projects. Unsubsidized solar power generation projects that can start construction in 2019 will be confirmed first, before the confirmation of any project applying for subsidies.

hina’s solar industry is at a crossroads

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June 30, 2019. In January 2019, the government introduced regulation 02/2019/QD-TTg to will directly pay for the electricity it gets from rooftop solar power sellers.

outh Korea Mulls Increasing Renewables Share In Energy Mix To Up To 35% By 2040

South Korea’s government is contemplating increasing its renewable energy share in total energy generation to between 30% to 35% through installation of 103 to 129 GW by 2040. The Ministry of Trade, Industry and Energy (MOTIE) has proposed this measure in a draft revision of the government’s energy master plan, according to Reuters. It is an effort in the direction of the country reducing its reliance on coal and nuclear power, it said. According to MOTIE, 155 to 235 GW of solar and wind could be installed. In December 2017, under the new energy roadmap draft of the 8th Basic Plan for Long-Term Electricity Supply and Demand, MOTIE said the country would increase the share of renewables to from around 8% to 20% by 2030. The 20% would equal 58.5 GW renewables including around 30 GW of solar. The proposed increase comes on the back of a recommendation by a local unidentified advisory group, according to the director of MOTIE. Korea’s government renews its 20-year masterplan every 5 years, according to South Korean news agency, Yonhap. The administration will also discourage coal power generation by banning new power plants, shut down old facilities and also not give go ahead for new nuclear reactors.

Solar SolarQuarter Quarter••April April2019 2019 8

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Solar Quarter â&#x20AC;¢ April 2019 9

Global News

capital funding, public market, and debt financing. Activity across venture capital funding,

It is seen as a way to solve pressing environmental, employment and economic problems

public market, and debt financing were up 10% in Q1 2019, compared to Q1 of 2018.

with a single comprehensive plan. Modeled on Roosevelt’s New Deal, which created jobs,

“Funding levels were up slightly year-over-year in Q1 2019, but the solar industry was

invested in large infrastructure projects, and pulled the US out of the Great Depression, the

on a much stronger footing at the beginning of this year compared to a year earlier,

Green New Deal is a modern version of that program, but with green energy investments,

when the industry was hit with tariffs, subsidy and installation cuts in China, and a module

21st century job training, and deficit reduction as the key components.

oversupply situation. The market is upbeat, and solar equities rebounded strongly in the

A Green New Deal for Central America (GNDCA) would address many of these

first quarter. However, China is still a wild card, and depending on its 2019 policy direction,

environmental, employment and economic issues, while building on the success of the

lobal Solar Market Receives $2.8 Billion in Corporate Funding in Q1 2019

The solar sector received $2.8 billion in corporate funding globally, including venture

it could have a significant impact on the solar industry,” said Raj Prabhu, CEO of Mercom Capital Group. According to the report, global VC funding for the solar sector in Q1 2019 was mostly flat,

‘Green New Deal’ for Central America would present business opportunities for renewable power generators

Recently there has been a great deal of interest in a ‘Green New Deal’ for the United States.

existing regional electricity market, Mercado Eléctrico Regional (MER), and the recently completed regional interconnection system, Sistema de Interconexión Eléctrica de los Países de América Central (SIEPAC).

totaling $176 million in 13 deals, compared to $161 million raised in 22 deals in Q1 2018. Of the $176 million in VC funding raised in 13 deals during Q1 2019, 63 percent went to solar downstream companies, which raised nearly $111 million in seven deals. The average solar VC deal size in Q1 2019 dropped to $13.6 million from $27.9 million in Q4 2018.

lean energy industry applauds Puerto Rico’s new 100 percent clean energy law

On Thursday, Puerto Rico’s Governor Ricardo Rosselló signed into law the Puerto Rico Energy Public Policy Act which lays the groundwork for the island’s transition to 100 percent clean energy by 2050. The legislation establishes a 100 percent renewable energy renewable portfolio standard (RPS) by 2050, bans coal plants starting in 2028, provides for automatic interconnection to

rcelorMittal Energy signs landmark PPA for Spanish solar farms

Infrastructure and private equity investment manager Foresight Group has agreed a 10year corporate power purchase agreement with the energy arm of global steel and mining giant ArcelorMittal for two solar farms in Spain. The deal with ArcelorMittal Energy marks the first corporate 10-year fixed price PPA to be agreed in Spain. The two subsidy-free solar farms will be grid connected and will supply ArcelorMittal steel mills. They are expected to be operational later this year and generate around 8.6 GWh each a year.

the grid of customer-sited solar energy systems below 25 kilowatts, and reduces the utility

Edouard Oberthür of ArcelorMittal said that “as a large consumer of electricity in Europe,

approval time to 90 days for commercial and industrial solar projects.

ArcelorMittal is very proud to sign these PPAs in order to supply our mills with a competitive

Additionally, the act mandates that solar energy users will have access to net metering

and CO2-free electricity supply”.

within one month of a system’s installation, new solar consumers will be grandfathered

Last year, Foresight opened a new office in Madrid to strengthen its presence in Southern

and protected from future policy changes for the next 20 years, and clarifies that the

Europe for subsidy free solar acquisitions.

existing net metering policy and grandfathering protection shall be in place for no less than five years. The new law also clarifies that all scales of renewable energy production, including home solar energy, will count for Renewable Energy Certificates (RECs) for RPS compliance.

pple says 44 of its suppliers have made clean energy commitments

Global manufacturer Apple announced it has nearly doubled the number of suppliers that have committed to run their Apple production on 100 percent clean energy, bringing the total number to 44. Because of this partnership between Apple and its suppliers, Apple will exceed its goal of bringing 4 gigawatts of renewable energy into its supply chain by 2020, with over an additional gigawatt projected within that timeframe. Apple reduced its comprehensive carbon footprint for the third year in a row in 2018, in large part due to the company’s Supplier Clean Energy Program. Manufacturing makes up 74 percent of Apple’s carbon footprint, so the program helps its suppliers increase energy efficiency and transition to renewable energy sources. “Every time one of our suppliers joins us in our efforts to address climate change, we move closer to a better future for the next generation,” said Lisa Jackson, Apple’s vice president of Environment, Policy and Social Initiatives.“We’ve made it a priority to hold our

ermany generated more than 50 percent of electricity from renewables in March

In a first for the country, Germany generated 54.5 percent of electricity from renewable energy in March 2019. This is according to data collected by the Fraunhofer Institute for Solar Energy Systems.Germany Trade and Invest’s Director of Energy, Esther Frey issued a statement in response to the news calling it “significant.” “It shows that German investment in renewable energy sources is changing the way the country will get its power in future,” she added. Germany has been steadily adding renewables into its generation mix as part of the Energiewende, which translates to Energy Transition. The company has pledged a lowcarbon, nuclear-free future and has been installing both onshore and offshore wind and solar at a quick pace.

.S. solar market tops 10 GW in 2018, again For the third year in a row, the U.S. solar industry installed double-digit gigawatts

(GW) of solar PV capacity, with 10.6 GW coming online in 2018, according to the latest statistics from Wood Mackenzie Power & Renewables and the Solar Energy Industries

suppliers accountable to the same environmental standards we observe and hope that our

Association (SEIA).

collaboration will show others what is possible. While we are proud of our announcement

It’s a 2 percent decrease from 2017 but forecasts indicate the market rebounding in the

today, we won’t stop driving change within our industry to support the clean energy

years ahead, said the groups. SEIA’s president and CEO, Abby Hopper said the 2 percent

transition happening globally.”

decrease was due to “growing pains” which can be attributed to solar tariffs.

“The total amount of solar installed in America is on track to more than double in the next

K power grid to be ‘zero-carbon-capable’ says operator

five years, proving solar’s resiliency and its economic strength. It’s clear, this next decade is

Two years after Britain had its first coal-free day since the Industrial Revolution, the

going to be one of significant growth,” she added.

nation’s network operator is readying itself for life without any fossil fuels.

Total installed PV capacity in the U.S. is expected to rise by 14 percent in 2019 with annual

The grid may start dropping its need for natural gas power for short periods in about 2025,

installations reaching 15.8 GW in 2021. In addition to a market outlook, the SEIA and

coinciding with coal’s complete phaseout. The system wants to be “zero-carbon capable”

Wood Mackenzie released a report that details how the industry performed in 2018 in

by then, said Julian Leslie, head of national control at National Grid Plc’s electricity system

each segment.

operator.

In 2018, non-residential PV saw an annual decline of eight percent due to policy transitions

While natural gas regularly provides more than half of the U.K.’s electricity, increasing wind

in major markets. Utility-scale solar underwent a seven percent contraction in 2018, largely

and solar power output means the need for the fossil fuel is sometimes very low, falling

related to Section 201 tariffs.

below a quarter of usage on windy days.

Yet, while annual growth fell in both the non-residential and utility-scale solar sectors,

“All of those things need to happen in order to make the zero-carbon-in-2025 aspiration

residential solar growth stabilized in 2018 after the previous year’s contraction. The U.S.

happen,” Leslie said in a telephone interview. “In 2025, it may just be for half an hour, it

residential solar market has now seen five consecutive quarters of modest growth, and

may just be for an hour. Then gradually, in the years that follow, that time period will grow

the fourth quarter of 2018 was the largest quarter for residential solar in two years. Nearly

and grow.”

315,000 households added solar in 2018.

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Solar SolarQuarter Quarter••April April2019 2019 10

Industry Insights

Re-Invest Becomes Sun-World With Launch Of Global Editions The first edition of Sunworld will be organised in Peru between 12 November and

“We have signed an agreement with Peru and they have declared it as an event of national

14 November this year and the second edition is planned to be organised in Nairobi

importance. The event is called ISA Peru LAC (Latin American Caribbean) Sunworld,” he

in November 2020. The third event in 2021 will either be organised in Indonesia or

said.

Australia.

The first edition of Sunworld will be organised in Peru between 12 November and 14 November this year and the second edition is planned to be organised in Nairobi in

India is planning to launch the global editions of its flagship renewable energy sector

November 2020. The third event in 2021 will either be organised in Indonesia or Australia.

event Re-Invest even as the domestic version of the event continues to grow in scale.

He said that as part of the ritual a Kenyan minister will visit Peru and take the torch to his

The move is in response to the huge interest witnessed from overseas entities in the event,

country for the next event while the Indonesian or Australian minister will visit Kenya to

Upendra Tripathy, Director General of International Solar Alliance (ISA), the India-led global

take the torch to his home country.

grouping of sunshine-rich countries, told ETEnergyworld in an interview.

Tripathy also informed that industry body Associated Chambers of Commerce and Industry

Commenting on the plan, Anand Kumar, Secretary, Ministry of New and Renewable Energy

of India (ASSOCHAM) is planning to take a delegation of 30 industry leaders to Peru to

(MNRE), the main organizer of Re-Invest, said: “MNRE has been successfully organising

participate in Sun-World this year.

Re-Invest. The second Re-Invest was attended by 25,000 people with 70-odd international

The first RE-Invest in 2015 had 200 speakers from 29 countries and 2,800 delegates from

delegations and over 500 B2B and B2G meetings. We would be willing to help ISA or any

42 countries, including representatives of 578 Indian companies and 124 foreign ones.

other country in organising such an event for the benefit of universal energy access and

RE-Invest had initially been planned to be organised annually, and the next event after

procuring energy at affordable rates.”

February 15, 2015 had been scheduled for February 2016. The event was then delayed to

He also added that the event is now planned to be held once every year given the huge

November 2016 and thereafter to February 2017, when the venue was shifted from Delhi,

interest from stakeholders and the appetite of the renewable energy sector.

where the first meet was held, to Gandhinagar in Gujarat.

Tripathy said as a first step, ISA has signed an agreement with South American nation Peru

The event was postponed again to December 2017, and the venue as well moved to India

to organise RE-Invest in that country in November this year and the overseas avatar of the

Expo Mart in Greater Noida. The fourth postponement was to April 2018 and then finally

mega event will be known as Sun-World I.

the 2nd Global RE-Invest was held between 3-5 October 2018 at India Expo Mart, Greater

“The name of RE-Invest will change to Sun-World as it moves out of India,” Tripathy said.

Noida, National Capital Territory of Delhi.

“We would want RE-Invest to be organised outside India as a best practice but we will not

Tripathy also clarified that RE-Invest will continue to be organised in India annually.

be able to continue with the same name if it moves out to any other country,” he added.

Ministry of New and Renewable Energy (MNRE) had recently stated India will host the

Tripathy also said multiple foreign nations have expressed interest in organising the large

third edition of its Global Renewable Energy Investors’ Meet & Expo (RE-INVEST) on 3-5

solar energy event in their own geographies and ISA has decided that the first Sun-World

October, 2019 in New Delhi.

will be organised in Peru.

s ol al ar qr qu ua ar tr et er .r c. co om m w ww ww w. s. o

Source: News Feeds

Solar Quarter • April 20191111 Solar Quarter • April 2019

In Conversation

“We Are Specifically Recognised For Our Prominent Alternative And Renewable Energy Practice” Mr. M. Arun Kumar, Partner, INDUSLAW

There are many companies emerging in Solar Industry. What are some of the applicable law to consider while operating business in Solar? In India there are no specific laws that govern the solar industry. In fact, we do not have any specific laws for the renewable energy sector, however, it is under the Electricity Act, 2003 that various policies, regulations and guidelines are formulated for the solar industry and other renewable projects. Having said that, when we look at the entire lifecycle of a solar plant from its planning stage to execution, operation and all the way till the completion of its operational life, a whole gamut of laws are involved including contracts and mercantile laws, import-export laws, environment laws, land laws, corporate and financial laws and laws relating to dispute resolution as well.

How does a law firm like yours, help different stakeholders of the Solar Industry? At IndusLaw, our experience in the power sectors spans all verticals of the sector – generation (including thermal, hydro and renewables), transmission, distribution and trading. We are specifically recognised for our prominent alternative and renewable energy practice. We have been closely and regularly involved in advising project developers, project sponsors, contractors, vendors, equity investors/private equity funds, development platforms, and project lenders, in the solar industry. Hence, as legal specialists, we end up playing a significant role in advising stakeholders in the renewable industry throughout a project’s life cycle in the following key aspects: � Bid stage advisory, term sheet discussions and finalization, risk identification and risk allocation in relation to offtake arrangements, etc � Land title diligences and acquisition, � Project procurement contracts, EPC and O&M contracts, � Debt/ equity project fundings, � Regulatory advisory, and � Structuring and documentation in relation to investments, acquisition and disposition transactions. At IndusLaw, our specialised renewable energy practice group consists of 8 partners and nearly 30 lawyers. We have established a reputation for providing tailored and thought through legal solutions in the renewable energy sector and especially the solar industry.

What legal issues do developers face while developing solar project? Industry stakeholders are well aware of the tariffs at which solar projects are being tendered in the recent times. Keeping that in mind, I believe the two most important issues are:

(i) Compliance and timely fulfillment of PPA obligations by offtaker While in projects sponsored by Government instrumentalities like SECI, the PPA related risks like delay in payments, cancellation/ re-negotiation of PPAs are mitigated to a large extent by SECI itself purchasing power and selling back-to-back to utilities, the projects involving state governments where power offtakers are directly state discoms, the risks arising from non-payments/ delay in payments, cancellation/ re-negotiation of PPAs are generally in existence. Such situations in addition to the litigations with state utilities add up to the overall cost of the developer and end up in unviable projects. Having said that, these risks are serious for older PPAs which have been signed on higher tariffs.

(ii) Project land issues In Government sponsored projects (through SECI or NTPC) where land is provided (egs. in solar parks), typically it is the timely handover of the land alongwith its access rights that are an area of concern. Whereas, in privately acquired land (whether lease or outright purchase), the concern areas are around clean title, zero encumbrances, local issues and access and distance to the closest sub-station. In addition to the above two, there is also the risk of adequate and robust infrastructure for evacuation and transmission of power. The math here is very simple – while transmission infrastructure takes years to set up, renewable energy plants are set up in a matter of months. Thus, the mismatch in power being generated and infrastructure required to evacuate the generated power give rise issues such as curtailment of capacities, delay in obtaining connectivity approvals etc. And lastly, decisions like withdrawal of tax benefits and fiscal concessions are also areas that affect renewable energy developers and lead to uncertainty and lack of interest amongst stakeholders. In fact, now with the dilution in the payment securities provided to developers under recent SECI PPA’s, the risk for developers in bidding for and developing SECI projects has also increased.

w w w . s o l a r q u a r t e r . c o m

Are there any legal risks involved for EPC companies when it comes to working with Solar Roof projects? While the utility scale plants have their own share of risks, the rooftop solar plants have a specific set of risks like: (i) lack of awareness, (ii) lack of rooftop space, and (iii) difficulty in obtaining credit and bankability issues. The primary market for rooftop solar plants are factories, warehouses, educational institutions and buildings like malls, movie halls etc. This is also because rooftop companies have taken the initiative of advertising and creating awareness about the benefits of rooftop plants to the consumers of this market. But overall consumers have low awareness of rooftop solar plants, their benefits, government schemes, net metering concept etc. Most residential consumers are apprehensive about issues like upfront costs (in CAPEX model), discom issues, structural damages to their houses, system failures etc., all of which is primarily due to lack of knowledge and awareness about installation, operation and benefits of rooftop solar systems. Moreover, another reason for the rooftop market being concentrated on factories, warehouses, and educational institutions is also because of large rooftop areas that are available at such sites. Lack of space is also therefore a risk in setting up rooftop plants. Issues like lack of standardised power purchase agreements, customers with unclear or limited credit histories, low income residential consumers and limited performance record of rooftop solar plants cast a huge burden on the banks and lenders. This is further aggravated by lack of or limited understanding of the rooftop solar system by the banks and lenders themselves.

Can you shed some lights on any new emerging legal issues, with change in recent power sector regulations? Some of the recent legal issues in the industry are as follows:

(i) Imposition of Safeguard Duty on solar cells and panels The Directorate General of Trade Remedies (DGTR), Govt. of India, recommended that a safeguard duty be imposed on solar cells and solar panels being imported from China and Malaysia for a period of 2 years. The imposition of safeguard duty was challenged, and the Orissa High Court stayed the imposition of safeguard duties. Subsequently, setting aside the order of the Orissa High Court, the Hon’ble Supreme Court of India allowed the Orissa High Court to continue to hear the petition filed against the safeguard duty but ordered that there will be no stay on imposing it. Though the matter is under litigation, the Government may allow these duties to pass through under change in law provisions of the PPAs. More recently, Department of Revenue on recommendations from the DGTR has imposed anti-dumping duty in the range of USD 537 to USD 1,559 per tonne, on imports of “Ethylene Vinyl Acetate sheet for solar module” which is used in solar cell making, from China, Malaysia, Saudi Arabia and Thailand for five years to safeguard domestic players against cheap shipments. Such developments create a lot of uncertainty among the stakeholders in the sector and affect investor sentiments at large. Developers must bear in mind that clauses relating to change in law/ change in tax law are clearly defined to avoid interpretative issues when instances such as this occur.

(ii) GST Since the introduction of Goods and Service Tax in India, the applicability of GST rates on solar power projects has been ambiguous. This is critical especially for solar power projects where the entire input GST becomes a cost burden for the developers. A concessionary rate of 5% GST has been provided for solar power generating systems, solar PV modules and parts for manufacture of products under GST laws. However, with lack of clarity on the definition of ‘solar power generating system’ and coupled with the fact that turnkey EPC contracts were being consistently held to be works contracts and thus liable to 18% GST, the stakeholders have resorted to different contracting structures and negotiations based on varying interpretations of the extant GST laws. Projects which did get the benefit of change in law under their respective PPAs due to the introduction of GST, faced a different set of troubles in ascertaining the exact post-GST cost for which they could claim benefit under the PPA. A notification which came into effect from December 31, 2018 recommended that where a solar power generating system (under chapter 84, 85 or 94) attracting 5% GST is supplied with services of construction, then in all such cases 70% of the gross value will be deemed as the value of supply of said goods attracting 5% rate and the remaining 30%, of the gross value will be deemed as the value of supply of taxable service attracting standard GST rate of 18%. This once again gives rise to innovative contracting structures since single EPC contracts have been repeatedly held by various advanced ruling authorities to be a composite supply of works contract liable to be taxed at 18% GST. So apart from practical challenges at the time of invoicing and payment of taxes, this recent notification has created some new ambiguities for the industry to deal with.

Solar SolarQuarter Quarter••April April2019 2019 12

Industry Insights

India Looking At $500 bn Investment In Renewable Energy Generation By 2028 The global think-tank said in a special report the long-term outlook is favourable for

The report said India added 1.6 GW of rooftop solar capacity in calendar year 2018, a

renewable energy in India

growth of 68 per cent in new installation compared to 2017. India’s rooftop capacity has been growing at a CAGR of 90 per cent over the past six years. While sustaining a near-

India is looking at a mammoth $500 billion worth of investment in creating renewable energy generation capacity with tendering of 500 Gigawatt (Gw) by 2028 in addition to $250 billion investment in grid expansion and modernisation required for uptake of green energy capacity, according to the Institute of Energy Economics and Financial Analysis (IEEFA). The global think-tank said in a special report the long-term outlook is favourable for renewable energy in India as the country saw a dramatic decline in the wholesale electricity tariffs from solar and wind generation sources in 2017-18 with capacity consistently awarded at sub-Rs3 per unit through reverse bidding auctions. “With zero indexation on these tariffs, renewables have broken through grid parity and have continued to increasingly capture the market share as the new low cost source of capacity since 2017,” the report said, adding technology and price-based fundamentals will continue to strengthen the upward trajectory of the renewable energy industry. The Australia-based institute also said that 75 GW of renewable capacity has been installed across India, 28 GW has been auctioned and 37 GW of capacity is under various stages of tendering and bidding. If all of this comes to fruition, this amounts to a total of 141 GW of renewable capacity, relative to the government’s target of 175GW by 2022. Provided the 37 GW of tendered capacity is awarded in the next six to nine months, it will mandate developers to commission this capacity before March 2022. In general, the deadline for commissioning solar and wind power projects is 24 months. India exited the last financial year (2018-19) with 22.5 GW of renewable capacity auctions awarded but yet to be built. Of this, 21.6 GW was awarded at below Rs3 per unit with zero indexation for 25 years – locking in real electricity sector deflation for decades to come. In the last quarter of the year alone 32 GW of new tenders were announced.

doubling of annual capacity installs will be difficult, ongoing market expansion could mean another 9 GW of rooftop solar installs till FY2022, taking cumulative capacity to 12.9 GW. “Given the existing wind and solar tenders’ trajectory and other renewable sources of Biomass and run-of-river (RoR), IEEFA forecasts India is set to reach 144 GW renewable energy capacity by FY2022, not too far short of the aspirational 175 GW target set back in 2015. This also would put India on a run-rate to exceed its 275 GW target for 2027,” the report said. The country added total power generation capacity of around 12 GW last financial year. This included net new thermal capacity of 3.4 MW – 5.8 Gw of new coal-fired capacity addition with closure of 2.4 Gw -- the lowest thermal power plant addition in a decade. New on-grid capacity additions in renewable energy stood at 8.6 GW including 6.5 GW of solar, 1.6 GW of wind and 0.5 GW from other sources in 2018-19. In addition, around 1.6 GW of behind-the-meter rooftop solar capacity was also added during calendar year 2018, up 68 per cent year-on-year, a highlight for the electricity sector.

The Australia-based institute also said that 75 GW of renewable capacity has been installed across India, 28 GW has been auctioned and 37 GW of capacity is under various stages of tendering and bidding. If all of this comes to fruition, this amounts to a total of 141 GW of renewable capacity, relative to the government’s target of 175GW by 2022. Source: News Feeds

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Solar Quarter • April 2019 13

In Conversation

“Alfanar’s Ambitious Mandate Of 3 Gws Pv Development In Next 5 Years In Mena, Europe And Asia” Mr. V.S.Mohan, PMP Country Manager, Alfanar Construction

Lets begin with a glimpse of your company’s presence/foray in India’s RE sector? Alfanar Company, headquartered at Riyadh, Saudi Arabia, started its operations in 1976 as

What are your growth plans for the Indian market and do you feel India would be your most favoured destination for RE investments?

an EPC Contractor and 1989 as a Manufacturer of electrical products and has now grown

We want to set up 2000 MW by 2021. “Half of it will be in wind energy, and the other half

itself into leading player in Energy sector with around USD 2.2 Billion turnover. Alfanar’s

in solar.”

core business line includes (i) construction of Solar & wind power projects, Conventional Power Plants, substation Projects, & transmission line and (ii) manufacturing of electrical equipments, design & development centers and a number of facilities in the Middle East, Asia and Europe.

What according to you is the biggest strength of your company in the solar industry and how do you plan to leverage this strength in the Indian solar sector ?

Renewable Energy:

Our track record as one of the largest EPC companies in Saudi Arabia augmented to the

As a regional market leader in power generation and transmission, Alfanar Construction

global presence with the robust promoter back ground supported by the vision to grow

has currently more than 37 on-going mega infrastructure projects exceeding USD 2.1

organically in the RE sector. Our strength is supplemented by the presence of varied

billion in 2017. This is in addition to a further 200 accomplished projects in different

experience in solar domain covering GCC, Europe, India and Bangladesh.

sectors in the last four decades, regionally and well-placed in GCC, majorly covering in

brand in power industry. We serve equally to government and private clients.

How has your experience been with your foray in the Indian Wind sector and how do you plan to replicate this with your proposed investment in the Indian Solar sector?

In India last year Alfanar emerged as a winner in SECI-III and SECI-V ISTS Wind project

So far the journey in the Wind Sector has been pleasant with proper support from State and

UAE, Bahrain and Qatar. Adhering to the international standards with the full commitment to quality and safety rules, Alfanar Construction has acquired client trust and is a reputed

tendering process and secured two projects each of 300 MW capacities in Gujarat.

Centre. The nodal agency SECI is making environment conducive for the new developers

Alfanar has diversified into the business of Renewable Energy with ambitious mandate

and investors entering the RE space of India.

to develop 3 GWs in next 5 years in MENA, Europe and Asia. With ongoing projects of

For the solar sector we want to enter with meticulous approach and maintain the quality

over 1.7 GW of RE Projects in Egypt, India and Spain which are at different stages of development, financial closure and construction. We are already executing 50 MW of Solar Plant as a Main EPC contractor in Egypt and also executing BOP works for 2X300 MW of wind projects in Bhuj, Gujarat.

Where do you see the Solar Energy industry in India poised for the next 10 years? India poised for huge growth in solar energy for the next 10 years. With growth at same pace we will be touching the mark closer to 500 GW which is will be round double the present target of Indian government to reach 225 GW by 2022. The Indian renewable energy sector is the fourth most attractive renewable energy market in the world. As of October 2018, India ranked 5th in installed renewable energy capacity. Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 19.78 per cent between FY14–18. The focus of Government of India has shifted to clean energy after it ratified the Paris Agreement. With the increased support of government and improved economics, the sector has become attractive from investors perspective. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role.

What do you think about India’s Solar Policies on a holistic perspective and what according to you are the current bottlenecks which may impede growth for this sector.? The Policy space is even with boost and bumps for the Solar sector. Some initiatives by the

for which Alfanar is globally known in this highly competitive era. We are building the core Solar team in India and working in Tandem at ground level to structure the infrastructure blocks of the Solar Projects (Land , Evacuation, approach, permits, etc..). We have rolled up our sleeves in India and the solar sector will see us aggressively coming up into both EPC and Development domains.

As a regional market leader in power generation

and

transmission,

Alfanar

Construction has currently more than 37 on-going

mega

infrastructure

projects

exceeding USD 2.1 billion in 2017. This is in addition to a further 200 accomplished projects in different sectors in the last four decades, regionally and well-placed in GCC, majorly covering in UAE, Bahrain and Qatar.

Government of India boosting the Indian renewable energy sector are as follows: The Ministry of New and Renewable Energy (MNRE) has decided to provide custom and excise duty benefits to the solar rooftop sector, which in turn will lower the cost of setting up as well as generate power, thus boosting growth. The Indian Railways is taking increased efforts through sustained energy efficient measures and maximum use of clean fuel to cut down emission level by 33 percent by 2030. My individualistic throw on the bottlenecks would be; Lack of infrastructure: Solar power project development in solar parks is being hampered by delays relating to infrastructure and site preparation issues. The government’s rush to auction projects in these parks ahead of completing land acquisition formalities has led to project developers winning bids but not ready to start construction due to lack of infrastructure. Proper measures for Grid Integration and Forecasting to have a seamless transition from Conventional to renewables is greatly missing from the India power scenario. We are yet to achieve maturity in that area to be at par with countries like Germany, Belgium, France etc.

w w w . s o l a r q u a r t e r . c o m

Our track record as one of the largest EPC companies in Saudi Arabia augmented to the global presence with the robust promoter back ground supported by the vision to grow organically in the RE sector. Our strength is supplemented by the presence of varied experience in solar domain covering GCC, Europe, India and Bangladesh.

SolarQuarter Quarter••April April2019 2019 14 Solar

Industry Insights

Optmistic Outlook For Indian Solar Market Fitch Solutions Macro Research on Tuesday said it is maintaining a positive outlook on

It said, “We do not believe that the new government will back out of the existing

India’s renewables growth, excluding hydro power, irrespective of general elections as

renewables sector policies, as they have also promised to promote ‘green energy’ and

both the incumbent and the opposition support clean energy.

aim to encourage investments in off-grid renewable power generation in their election

“We maintain a positive outlook on India’s non-hydro renewables growth regardless

manifesto.”

of India’s Lok Sabha election outcome, as both the incumbent government and main

The report also added that although the recent safeguard tariffs on solar cells from China

opposition remain strongly supportive of renewables growth,” Fitch Solution Macro

and Malaysia will weigh on investor confidence in the short term, this will not have a

Research said in its outlook for India’s renewable energy sector.

significant impact on our longer term outlook, and investor interests will rebound and

The Fitch Group unit expects the country’s non-hydro renewables capacity to grow at a

continue to strengthen the project pipeline.

robust annual average growth rate of 11.1 per cent from 71.7 gigawatt (GW) in 2018 to over 204 GW by 2028, with solar being the main driver of this expansion.

Credits: Fitch Solutions Macro Research

According to the latest report from Fitch Solutions Macro Research, a unit of Fitch Group, Indian solar power capacity will grow robustly at an annual average rate of 15.3% to reach 105.9 GW by 2028, up from 26 GW in 2018.

This assessment

is based on the continued strong government support for the solar sector, including aggressive growth targets, a large number of capacity tenders and the increasing efforts to establish a conducive investment

ecosystem

for

the Solar Sector. The recent efforts toward encouraging rooftop and

solar

installations

installation

solar

pumps and grid-connected PV projects enabled by the KUSUM scheme will ensure that distributed small-scale facilities become a supportive factor

Besides

solar

the

growth.

government

impetus is further evidenced in

slew

supporting

measures such as 12 GW of new grid-connected capacity for government use; waiving inter-state

transmission

charges, drawing up a new National Electricity Plan to develop transmission systems and incorporate 175 GW of renewables into the grid by 2022. Despite the strong renewables growth, it highlighted that coal will remain dominant in

the

country’s

power

generation mix over the next decade. Strong

renewables

sector

growth has been seen as a key marker of Modi’s power sector

reform

success,

and it believes the Modi government to

will

encourage

into

the

continue investment

sector

through

supportive policies to reach the ambitious target of 175 GW renewables capacity by 2022.

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Solar SolarQuarter Quarter• •April April2019 20191515

Perspective

Hybridization Of Solar Tender With Storage Component The Road Ahead

Mr. Pinaki Bhattacharyya, CEO, AMP India The Indian RE sector has seen unprecedented growth in the

Tamil Nadu, Maharashtra, Karnataka and Andhra Pradesh have large capacities for both

last few years owing to favourable policy and regulatory

wind and solar installation. Superimposing wind and solar resource maps for India shows

framework and amicable investment climate. The drive for

large areas where both wind and solar have high to moderate potential.

capacity expansion in the RE sector is currently led by wind

Having said that, the market for hybrids is still at a nascent stage and the government of

and solar with approx. 35GW and 27GW (Source: MNRE) of

India is also taking requisite steps to boost solar-wind hybrid adoption in greenfield and

installed capacity as on 31st December 2018.

brownfield projects. The National hybrid policy has been in place for sometime and Andhra

Considering the issues faced by both the segments are similar such as land acquisition,

Pradesh has also issued a Wind-Solar hybrid policy. Hybrid capacities have been bid out by

evacuation infrastructure and consistent supply availability. Since, solar and wind can

SECI and AP government to attract developers to set up these projects which would also

only generate when their source of power is good, it makes sense to set up solar-wind

act as test case projects. The interest shown by the government in promoting hybrids is

hybrid projects. In a solar-wind project, the two sources would complement each other

an encouraging sign for the industry, which has been facing innumerable issues related to

and help deal with the inconsistency of power supply and power can be generated from a

transmission and land acquisition.

plant almost round the clock, thus achieving better grid stability. Hybridisation would also

AMP India is the fastest growing integrated C&I solution provider in India and with its

lead to the optimal and effective utilisation of available resources such as land as well as

programmatic approach to provide complete energy solution to the customer is beginning

transmission infrastructure which make up about 25% cost for a RE project.

to evaluate setting up hybrid projects for its customers.

India is an ideal market to set up hybrid projects considering many states such as Gujarat,

Mr. Deepak Khare, Vice President, Engie Fortunately, there have been significant technological

play depending on the blend of local conditions of sun, wind, rain, clouds, etc. a) When

advancements in the energy space that give promise to

the sun is strong and temperatures are high, wind tends to be weak. b) Conversely, when

fulfilling this need. At the forefront of renewable energy

wind is strong and skies are cloudy with rain and moisture, sunlight is minimal. Therefore,

development is solar power / wind power/ hybrid of either

a combination of wind and solar will likely increase energy production during any cycle.

two or together with energy storage. Due to limited sunlight

We all know that LCOE (tariff)would be crucial factor for driving hybrid tenders either

hours during the day, a solar PV system typically have 20%

with Solar PV+Storage OR Solar PV+Wind OR all three PV+Wind+Sorage together, where

PLF. Therefore, the system would need to generate enough

PLF can be maximized with optimum capex & opex . Combining both Solar PV and wind

power in sunny hours to last 24, with the ability to store for meeting peak demand hours .

powers will minimize the storage requirements . Major challenges of hybridization is

When a wind machine that can make power around the clock is added to the solar system,

higher project development cycle “from site selection, land acquisition (combination of

the size of the solar and, more importantly, the storage system can be dramatically reduced,

scattered land for WTG footings and PV system installation) to design integration” point

resulting in lower cost with higher energy density and a smaller carbon footprint (fewer

of view when compared to standalone systems .Hence , upcoming hybrid tenders shall

chemical batteries good for the environment).

consider 3-4 months higher time for project development cycle till COD when compared

Other benefits of combining solar, wind and storage, there are other factors that come into

with standalone RE projects.

Mr Manoj Kumar Upadhyay , Founder & Chairman, ACME Group. With the increased renewable landscape, Indian electricity

coupled with the storage facility, the CUF could be increased to 45%-50% which means

sector is under transition phase and thus needs cautious

firm power for 10-12 hours a day. The storage based solar power, if compared with the

and proactive initiatives towards characterising this energy

Levelized Cost of Electricity (LCOE) of new thermal power plants (~INR 5-6 per unit), makes

to firm nature. The grid related issues such as Duck Curve

it economically comparable even now.

and negative pricing faced by developed markets such

We expect Govt. agencies coming up with solar tenders coupled with partial storage

as Germany and California in recent times due to large

facilities (3-4 hrs) thereafter transforming towards increased storage component-based

penetration of renewable energy sources makes it imminent for India to have energy

tenders. In fact, we suggest govt. to formulate scheme wherein it incentivises the existing

storage components being tied – up with renewable energy sources.

solar plants for having partial storage facility. This would make the solar power from

Now a days, solar plants are designed to achieve CUF up to 30% and if this is being

existing plant better in terms of forecasting and dispatch ability.

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Solar SolarQuarter Quarter• •April April2019 2019 1616

Perspective

Record Low Tariffs Discovered In The Recent Solar Auctions Expert Views

Mr. Gautam Das, Co-Founder/Director, Oorjan Cleantech Pvt. Ltd. Solar as an alternate asset:

intensive although the project break-even is 3-5 years against a project life of 25 years!

Many of you must be tracking developments around

Banks and private investors are coming forward to offer loan and/or Opex solutions to

investment in solar projects and ever declining PPA (Power Purchase Agreement) rates. However, many of the project bids and their returns are not fundamentally sustainable. A

end consumers. Oorjan offers both loan and Opex financing options to consumers as part of our offering to end consumers. We too are supported by banks, NBFC and private investors who in turn enjoys a healthy return on investment.

significant number of projects are either never born or never operational, or prices are

Assessing customer credit worthiness and taking necessary precautions to protect the

renegotiated. Aggression of building larger portfolio and compromised hardware quality

investments is important for sustainable investment in solar and maintaining comfort to

is not healthy. We need to build solar assets which should work for 25 years and investor/

the investors. Hence, a thorough credit assessment is essential to ensure that customer

consumer enjoys sustainable return from sustainable energy. Reduction is PPA bids can’t

would be capable of paying back the liability either from saving or existing cash flow from

outpace enhancement in technology and reduction is cost without compromising project

regular income. It might be necessary to take a part of the investment as collateral or bank

quality.

guarantee.

Background Return from traditional investment underlying like equity, commodity, real estate and bonds have witnessed extreme volatility and investors are looking for alternate assets. Investment in solar is one of the important underlying which is expected to provide a healthy double digit return on investment. However, investment in solar and it’s return primarily depends on how does investor assess and mitigate following risks 1) Risk associated with evolving solar ecosystem and policies are yet to mature 2) Credit risk on the counterparty and power buyer’s ability to pay on time 3) Technology and operations risk associated with investment in solar

Technology and Operation Risk Solar technology across the world is improving at a very fast pace and cost per megawatt has significantly come down over the last few years. Solar plants are expected to operate for about 25 years and quality of system and design are important for higher generation and minimize unproductive down time. The best way to mitigate technology and operation risk is to adopt premium hardware, well thought through design and implementation by quality installer. Plant should be insured against unfortunate eventualities and under generation risks which is available in market now. Developers are also advised to consider the cost associated with the replacement of hardware like inverters, junction boxes, cleaning etc. so that the cost lines are not surprised as and well required. In short, I would recommend to adopt the best technology and price in costs in advance to minimize technology and

Ecosystem: India is one of the evolving countries which is promoting solar energy and intend to meet its INDC (Intended Nationally Determined Contributions) target of achieving 40% of the

operation risks.

Conclusion:

energy need through renewable energy by 2030. This herculean task and requires structured

Solar is a long-term investment and associated with a few risks. Hence, return has to justify

and favourable policies to achieve the target. Secondly it requires an investment of close to

a risk premium over lower risk asset categories. Continued and ever declining PPA prices

2.5 billion US dollar to drive the mission. This kind of achievement can only be met when

over the last few years are a concern for sustainability of the investments and there are

policies and ecosystem are investor friendly and public -private partnership works towards

solar assets are fetching as low return as 5-9% in many cases due to aggressive bidding.

common goal. Central and state governments are working hard but the policies at times

The developers should have a long-term view on hardware quality and project cost. We

are not well aligned. Solar adoption by both end consumer and investor requires support

can’t afford to reduce cost and compromise on hardware quality - the cheapest on day

on net-metering, transmission, easier approvals etc. An uniform and transparent policies

one could be the most expensive within a few years if the power generations are healthy!

across the country would boost participation by private investors, banks, Overseas fund

Declining PPA rate can’t outpace the enhancement in technology and fundamental

etc. Ecosystem is evolving fast and better than ever before. Journey is long and requires faster pace to promote solar investment.

reduction in cost for premium hardware. We at Oorjan constantly promote and offer only premium hardware, reliable technology and not in battle to build a short term focused

Building awareness on solar has come a long way and governments across states are doing

portfolio. We need to build a solar portfolio which should work for 25 years and investor/

a great job. Many young companies like Oorjan are using innovative technology to build

consumer enjoys sustainable return from sustainable energy.

the awareness, offering “digital test drive of solar”, remote monitoring tool to build trust and promote solar.

Financial Risk and Return Investment in solar can provide return up from 10-30 percent to end consumers and PPA investor to can get a healthy return as high as 20%. These numbers are anyway much better than the return from traditional assets lime fixed deposit, equity, commodity and real-estate. High return comes with higher risk which needs to be assessed and mitigated. End consumer’s return on solar project is so healthy that not adopting solar is like losing out on opportunities to save money and reduce cost. However, adopting solar is capital

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We need to build solar assets which should work for 25 years and investor/consumer enjoys sustainable return from sustainable energy. Reduction is PPA bids can’t outpace enhancement in technology and reduction is cost without compromising project quality. Solar Quarter Quarter •• April April 2019 2019 17 17 Solar

Opinion

Sliding Tariff Trend And Its Impact On The Overall Project Viability Mr Simarpreet Singh, Founder-Director, Hartek Solar Pvt. Ltd. What are your views on the record low tariffs discovered in the recent solar auctions?

projects because of the rising cost of capital. Consequently, some auctions had to be

The all-time low tariffs are a result of an appreciable decrease

Impact on the quality of projects

in the cost of equipment as well as the cost of finance. Competitive financing has led to healthy competition by attracting big private players. Declining tariffs will take us closer to the 100-GW target by augmenting the demand for solar power. The low tariffs have, in fact, even absorbed the impact of safeguard duty and GST. Another major reason for the declining tariffs is the drop in prices of solar panels imported from China. About 80% of the solar panels and modules used in solar projects in India are Chinese. With local demand falling after the Chinese government stopped approving more solar projects and cut subsidies for its developers, the prices have weakened considerably as solar manufacturers in China are now banking on exports to recover their costs. Yet another factor contributing to low tariffs is aggressive reverse bidding by developers

cancelled as there were not enough participants. Developers are treading with caution, and understandably so.

We should take into account that the current tariffs are based on the upcoming installed cost of solar, which further depends on module prices, capital costs and exchange rate. While solar module prices are likely to drop by 20 per cent over the next one year and a probable cut in interest rates will bring down the cost of capital, the exchange rate is also expected to remain stable. As a result, the per MW cost for solar may drop by 10-12% in the next one year, a development that will work in favour of the industry. But developers may also face immense pressure to match timely execution with optimal quality if these factors do not come into play. Many of them will be tempted to compromise on quality to maintain profits.

participating in solar project auctions. However, it needs to be taken into consideration that

Though the rising demand will be accompanied by a pressure to reduce prices, developers

the Rs 2.44 tariff is for a 600-MW mega project, which enjoys the advantage of economies

will have more bargaining power to keep prices low on account of the larger projects

of scale and viability gap funding (VGF) of 30 per cent. If we take out this capital subsidy,

offered in tenders. With falling tariffs, it is expected that the costs will also go down. In

aimed at bridging the gap between the project cost dictated by the prevailing electricity

this scenario, the quality of projects will not suffer. Besides the decrease in module prices,

rate and the price quoted by a developer, the tariff quoted would have been much higher.

Balance of System costs are also likely to fall due to better inverter designs. So, it has

Tariffs need to be evaluated with reference to execution costs so as to get a better picture

become imperative for developers and EPC companies to augment their procurement and

of bid competitiveness. The solar industry has gone through many unfavourable changes

design capabilities.

over the past one year, which has only added to capital costs. While GST alone has led to a 6-8 per cent increase in capital costs, safeguard duty can raise the capital costs by 14 per

Possibility of Further de-scalation of Tariff

cent. Uncertainty over import duties on panels, rupee depreciation and hedging costs have

While solar power tariffs are expected to increase marginally in the short term, a recent

made developers cautious, prompting them to quote higher tariffs. SECI had to cancel a

study conducted by The Energy and Resources Institute (TERI) has estimated that the

300-MW solar tender awarded to Adani Green Energy because of high tariffs.

tariffs will come down in the range of Rs 1.90 to Rs 2.30/kWh by 2030. Module prices

Solar tariffs hit an all-time low of Rs 2.44 per unit for the first time in May 2017 at a 500-

have fallen by 44 per cent over the past one year, but much of this advantage has been

MW auction conducted by the Solar Energy Corporation of India (SECI) for the Bhadla Solar

offset by safeguard duty, GST and rupee depreciation. The costs went up, execution

Park in Rajasthan. But since then, the tariffs were increasing steadily due to the rising cost

challenges mounted and discoms had to cancel several tenders because of unrealistic

of solar panels and the impact of safeguard duty. They rose to Rs 2.94-3.54 for an 860-

tariff expectations.

MW project auctioned by the Karnataka Renewable Energy Development Ltd in February

In a study titled “Exploring Electricity Supply-Mix Scenarios to 2030”, TERI has found that

last year. However, the prices have weakened since May when the Chinese government

“a high renewable energy scenario will have a deflationary impact on system tariff later

stopped approving more solar projects in the country, fearing excess capacity. This led to a drop in the prices of imported Chinese solar panels, which reflected in the subsequent auctions. With solar tariffs reaching grid parity, companies are betting big on renewables.

Supplementary inputs:

in the projection period”. TERI has also projected a reduction in the capital cost of solar photovoltaic technology up to 3 per cent per year till 2024, 2 per cent from 2024 to 2027 and 1 per cent after 2027. Technological improvements and optimised manufacturing processes will lead to reduction in capital costs. The study has pointed out that the tariffs can even drop to Rs 1.90/kWh if the widespread deployment of tracking technology raises

Sliding tariff trend and its impact on the overall project viability

the capacity utilisation factor of new plants.

While the downward trend may affect the viability of solar projects by making developers

Storage technologies will also witness an appreciable reduction in costs. The levelised

compromise on quality to meet the costs, there is reason to be optimistic. Since the

costs of solar plus three hours of storage could fall from Rs 13.6/kWh to Rs 6.34/kWh and

developers who have quoted low tariffs have taken all factors into consideration, they will

the levelised costs of standalone storage from Rs 29.0/kWh to Rs 11.9/kWh by 2030. In

try their best to generate more electricity when there is a drop in tariffs so as to improve their profits and reduce investment-associated risks. Moreover, the recent low tariffs have largely been witnessed in solar parks, where the economies of scale factor comes into play for developers, who also do not have to pay for the cost of land, transmission and evacuation. Tariffs for smaller projects have not fallen at the same rate. Ultra mega projects do not involve variable costs. The only cost the developers have to bear is the interest they pay after commissioning. With interest rates going down, the projects are expected to become increasingly viable. Given the huge capital that has flooded the solar market, the cost of finance can make all the difference. A further drop in prices will depend more on the cost of finance than the cost of technology. If this happens, the government will be inclined to focus more on solar

contrast, coal tariffs are likely to increase because of rising transport and capital costs. SECI’s auction recorded the lowest tariff of Rs 2.55 per unit, a modest increase as compared to its previous auction held in July 2018 which recorded an all-time low bid of Rs 2.44 per unit. SECI’s reverse auction of 1,200 MW has witnessed tariffs ranging from Rs 2.55 to Rs 2.61 per unit. US-based UPC Energy Group secured a 50-MW project at Rs 2.55 per unit, the lowest tariff in the auction. These tariffs are incredibly low for a 50 MW project, indicating that solar power will become even cheaper in the long term. Solar tariffs are again showing an upward trend with tariffs of Rs 2.70-2.71 per unit being quoted in the latest auction by SECI. The tariffs in the next one year are expected to hover around this mark.

energy.

With falling tariffs, it is expected that the costs will

The imposition of safeguard duty will not immediately enable domestic solar module

also go down. In this scenario, the quality of projects

manufacturers to cater to all solar projects coming up in the country. As of now, the domestic module industry has a considerably low capacity which can meet only 15 per cent of India’s solar power requirements. That explains our reliance on Chinese imports and the need to withdraw safeguard duty on Chinese imports. Goldman Sachs Group Inc has rightly observed that solar installations are likely to slow and stretch project schedules as developers adjust to the tariffs. The viability of bid tariffs for independent power producers largely depends on capital cost, long tenure debt availability at competitive cost and plant load factor level. The outlook for solar power demand is favourable in India owing to improved tariff competitiveness

will not suffer. Besides the decrease in module prices, Balance of System costs are also likely to fall due to better inverter designs. So, it has become imperative for developers and EPC companies to augment their procurement and design capabilities.

and strong policy thrust. At the same time, investors are worried about the viability of

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SolarQuarter Quarter••April April2019 2019 1818 Solar

Company Feature

Solar Energy Has Come To Be Accepted As A Major Source Of Energy For The Future Founded in 2017, i-energy has expanded with its best pace and are now present in 3 states namely Maharashtra, Gujrat & Uttar Pradesh. Mr. Jaspal Singh & Mr. Kislay Yadav, young & dynamic, having a big vision to expand across the nation with the best execution Practices, Engineering & Quality Adherences with the moto as “ONE DREAM SOLAR INDIA”. I-Energy have 4 companies under its Umbrella with diversified team of Directors expertized in different business verticals. We intent to promote Solar Energy and contribute Country’s Green Energy Development Program, Sales of PV panels, EPC for Solar Setups, AMC services are widely provided . We provide Residential, Commercial, and Industrial Solar Solutions along with Solar Project Consultancy. Authorized Sales / Service partners for INVT for Maharashtra & UP and Havells Solar Authorized Distributors for Maharashtra.

Vision Statement- “To Contribute to Customers Delight by Providing Innovative, Valuable & rational Solutions, thereby contributing to the Country’s renewable energy target of 100GW plus by 2022”. Mission Statement- “To achieve excellence in Project execution, quality, reliability, consistently enhancing our deliverables & to promote a work culture that fosters learning, team spirit and to overcome challenges to attain our goals”.

Business Goals & Objectives:- “Our target a milestone of 10 MW of EPC by 2020 by maintaining the quality standards to get best generation of Electricity Units.”

Products & Services.- EPC solutions Roof & Ground Mounted, Trading, Manufacture AC DC boards with safety standards & AMC services by dedicated team of Managers, Engineers & Designers. Quality Policy of the Company: “Our SOP’s help us maintain the Qualty standards, QA/QC as well as promote “Zero Injury Philosophy”. About INVT. INVT has been concentrating on industry automation and energy power since its foundation in 2002 and is committed to “Providing the best product and service to allow customers more competitiveness”. INVT goes public in 2010 and is the first A-share listed company (002334) in Shenzhen Stock Exchange.

Snapshot of INVT. � Founded in 2002, listed in stock in 2010. �12 R&D centers, more than 850 patents. � 16 subsidiaries, 2 manufacturing bases � More than 3000 employees � Over 30 domestic offices and warranty centers � 9 overseas Subsidiaries: Russia, India, Thailand, UAE, Italy, UK, Germany, Australia, Mexico. � Sales network covering more than 60 overseas countries and regions

17 years of experience accumulation of inverter technology, lead the photovoltaic The iMars series inverter has a unique product technology advantage in product stability, power efficient transformation, low harmonic current harmonics and grid security access, which can be widely used in home roof, office roof and factory roof, Commercial power station.

A perfect service system to make customers more competitive The company has passed the TÜV/ CE / AS4777/ CEC/ CQC and other international and domestic authoritative certification and testing. As a photovoltaic leader, the company is committed to developing high efficiency, high performance and high quality photovoltaic inverter. At the same time, based on its powerful monitoring platform centre of the Internet, it has developed a remote monitoring system independently and solved the problem of remote maintenance.

Global layout, active participation in investment in new energy projects It is China’s ten largest distributed inverter brand, China’s “top ten” PV system brand, China’s “ten best” distributed power plant developers, also won the 2017 global intelligent inverter innovation technology contribution award, the annual best photovoltaic poverty award, but also enjoy the national level high-tech enterprises, Guangdong autonomous creation New top 100 enterprises, photovoltaic leader and a series of honors.

Service Support: INVT branches and warranty centres are ready to offer all-around back-ups including professional solutions, technical trainings and support 24 x 7. For More Details about Products & Services please visit our website : www.i-energy.co.in Or write to us at info@i-energy.co.in

MOST EFFICIENT & LONG LIFE INVERTER Our Advantages

13 R&D centers More than

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laboratories, awarded ACT from TUV SUD and WTDP-UL More than

850 pcs of patents. Our Inverter Ranges

2 Kw to 60 Kw Make in India

For Further Details Pl Contact 9879714466, 9742291095 GREENARCH SOLAR PVT LIMITED.

NAGPUR OFFICE

R.H No.A6, Suman Nagri, Near Godhni Railways, Godhni, Nagpur. 440023 SURAT OFFICE

201/202, Maruti Arcade Delad Patiya Olpad Sayan Road, Sayan Surat - 394130 w w w . s o l a r q u a r t e r . c o m

Solar Quarter • April 2019 19 Solar Quarter • April 2019 19

Cover Story

Safeguard Duty - “A Boon Or A Bane?” - Manufacturing Perspective Mr. Chetan Shah, Director, Goldi Solar The imposition of safeguard duty on solar cells and module imports has been in effect since July 30, 2018. This move by the Directorate General of Trade Remedies (DGTR) created a temporary chaos in the Indian solar industry, ultimately resulting in reduced demand for a few months. But gradually, after the initial storm had subsided, demand started picking up. All the big solar developers who used to procure imported solar modules began to source them from the domestic market. This greatly benefited the domestic module manufacturers.

For this move to be effective, the government should first create a favourable environment to boost cell manufacturing in India along with ample support for developing latest technologies. And till the time cell manufacturing capacities reach optimal levels so as to bridge the demand-supply gap, the government should exclude solar cells from safeguard duty. The HSN code for solar cells and solar modules is the same. So, imposing a safeguard duty on one will automatically drag the other in the duty net. One classic example of avoiding this situation is the policy implemented by Turkey wherein the government there made import duty applicable on only that portion of glass that would cover solar cells. In this way, a solar panel came into the tax duty net whereas it protected cells from getting taxed. In simpler words, the solar cells that are covered under glass will attract duty whereas loose solar cell imports will not attract duty. This move benefited Turkish panel manufacturers

Secondly those manufacturers who used to import solar panels, also started running their

in a big way.

manufacturing capacities to optimal levels.

One of the disadvantages the DTA units found themselves in on account of safeguard duty

Even the handful of domestic cell manufacturers have benefited from imposition of

imposition was against manufacturers in SEZs (Special Economic Zones) with the latter

safeguard duty with their order books full for the coming months.

enjoying all privileges and export advantages along with concessional tariffs and charges

However, in India, the operational solar cell manufacturing capacity is very meagre. It

compared to Domestic Tariff Area units. Though SEZs are meant only for exports, they

is hardly enough to meet the country’s burgeoning demand. India will auction close to

were selling in domestic market as well. This caused a huge disparity for DTA units in terms

25 GW to 30 GW of projects a year. Domestic manufacturers are not in a position to

of opportunities. Whereas the Domestic Tariff Area units pay safeguard duty and GST on

manufacture over 3 GW or 4 GW. The Indian cell manufacturing also lacks the technology

safeguard duty which blocks their working capital to a certain degree.

to deliver high efficiency solar cells. These shortcomings will create a huge demand-supply

Tweaking its policies and creating a favourable environment for domestic manufacturers,

gap for solar cells. Going forward, at least 80% will be imported.

and encouraging investments in enhancing technologies is the need of the hour and

Besides, after imposition of safeguard duty on solar cells from China, these were imported

expected from the GOI.

from other countries like Vietnam, Thailand and Cambodia without paying SGD. So, the

This will ultimately create a win-win situation for the domestic cell manufacturers, the solar

government did not benefit in any special way by imposing duty on solar cells.

module manufacturers and developers.

Mr. Ashok Jakhotia, Founder and Chairman, Spark Solar

which had been declining, tumbled to less than 10 percent. The future of domestic manufacturing is still highly uncertain and safeguard duty alone is unlikely to make any tangible difference because of the limited 2-year period of application. The Imposition of safeguard duty has failed to achieve the desired objectives of according protection to the

The safeguard duty on imports is applicable for two years. It

domestic manufacturers from the sudden surge of imports. The safeguard duty has been

would be reduced from July 2019 to 20 percent for six months,

imposed for two years and the implementation period of utility scale solar projects is 18

and would be charged at 15 percent for the next six months.

to 24 months. In such circumstances, the solar projects which were auctioned before the

The duty has been introduced on the grounds that such

imposition will mostly be procuring panels during the period safeguard duty is to remain

imports were causing ‘serious injury’ to domestic solar panel

in force, and are eligible to pass the burden of the safeguard duty to the end consumer

manufacturers. The cheaper equipment coming into the Indian market is often from

by invoking the change in law clause of the Power Purchase Agreement. In the absence

Chinese manufacturers who are dumping goods below cost. Chinese counterparts are

of strong local manufacturing, India will need to import $42 billion of solar equipment by

using unfair government subsidies to finance their operations and then selling their

2030.

merchandise for less than the cost of manufacturing and shipping it.

India is emerging as an undisputed leader in terms of solar deployment however its

Last year, the Chinese government slashed its domestic incentives for buyers of solar panels,

domestic manufacturing industry is bleeding and is unable to grow with the pace to

sharply reducing demand for equipment and adding to the oversupply. Manufacturers cut

support deployments, currently India is highly dependent on imports of solar modules to

their prices to compensate, which sent global prices plummeting.

achieve its solar targets. India’s vision to become a world leader in solar energy cannot

Though Indian solar installations reached a record high, making solar energy the biggest source of new electricity generation. But the domestic industry’s share of the panel market,

Mr. Vishal Amin, Director,

be complete without building its manufacturing strength in solar sector and thus there is an immediate need to promote domestic manufacturing in solar sector.

impose a safeguard duty, in a limited time frame, if unforeseen developments threatens the domestic industry.

Lubi Solar

After much contemplation, the government has decided to impose a 25% safeguard duty

The solar industry in India has witnessed hiatus after a very

the Indian industry time to gear up.

promising run, raking mutlifigure growth for more that half a decade. The steep deceleration could be attributed to intense participation by Chinese participants and the incumbent industry’s inability to fight off the stiff competition.

on all imports from China. The duty is supposed to ease out over two years, thus allowing On the manufacturing front, the decision has allowed a level playing ground. However, the decision has led to sluggish participation from the IPP’s, many projects having been cancelled after receiving quotes not so competitive to replace the coal based power.Also Indian manufacturers operating in SEZ come under the ambit of safeguard duty, offsetting

Industry pressures have pushed the prices by almost 30% in the last two years. This has

most benefits.

attracted increased participation by IPP in large-scale government promoted solar projects

The limited geographical implementation of the duty has resulted in smart redirection of

pushing the per unit costs to lesser than the power produced by coal based units. This

materials from countries like Vietnam, Thailand and neighbouring countries. As a result

trend, however has been fueled by steep increase in the Chinese imports, raking up losses

the price in the markets have shown little upward trend.

for the Indian manufacturers, who have been already working with wafer thin margins.

The Chinese governments decision to remove domestic subsidies along with the anti-

Even in case of the Indian manufacturers, majority of the manufacturing inputs are Chinese

dumping duties imposed on Chinese supplied by various countries and trade regions,

imports,allowing very little control. China having invested heavily in the technology is

has forced chinese manufacturers to further decrease the prices internationally, partially

reaping the benefits of having mastered the technology. The Indian industry,however, has

offsetting the impact of the safeguard duty for Indian manufacturers.

been suffering to keep up with the pressures.

So considering all the different factors, the safeguard duty overall has helped to build

To protect the local industry the government had been contemplating safeguard duty

positive sentiments in the industry but the industry may have failed to realize the perceived

on imported solar cells and panels. Under the WTO rules, a country shall only choose to

benefits of the action.

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Solar Quarter Quarter •• April April 2019 2019 20 Solar 20

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Solar Quarter â&#x20AC;¢ April 2019 21

Women Leaders 2019 Alina Rizvi CEO & Founder NEWTON POWER & INFRA

Archana Sharma Director ZENOM SOLAR POWER UNIT OF ZENOM VYAPAAR PVT. LTD

Mirunalini VC Director SWELECT ENERGY SYSTEMS LTD

Radhika Choudary Co Founder FREYR ENERGY SERVICES PVT LTD

Shubhra Mohanka Director GAUTAM SOLAR PVT. LTD.

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Anjali Garg Energy Specialist INTERNATIONAL FINANCE CORPORATION

Deepika Sandeep Program Manager, Analytics & AI BHARAT LIGHT & POWER PVT. LTD.

Myriam Akhoun EPC Project Manager ENGIE SOLAR

Reena Banerjee Head HR SPRNG ENERGY PVT LTD

Prof. Usha Bajpai Professor and Former Coordinator, Renewable Energy CENTRE OF EXCELLENCE IN RENEWABLE ENERGY, EDUCATION AND RESEARCH, UNIVERSITY OF LUCKNOW

Solar Quarter â&#x20AC;¢ April 2019 22

Strategic Partnership

Selecting the Right Energy Storage Systems for Solar Projects Mr. Ashish Kumar

load when energy is being stored and generation sources when energy is released.

Lead Energy Storage, Raychem

The energy storage technologies can be further classified based on the application it is suitable for-

Ministry of New and Renewable Energy (MNRE) has set a

1. UPS support – The role of UPS is to provide emergency backup in case of loss of

target of 175GW power to be generated from renewable

main power to bring another standby power source online or to properly shut down the

sources by Year 2022. Renewable sources, especially solar

protected equipment. The power and energy rating of these systems are relatively small.

and wind due to its intermittent nature require resiliency

2. Grid Support – The primary function of these systems is to make the grid more reliable

at both transmission and distribution level to ensure

and stable. The power and energy rating varies with the technology.

smooth integration and operation on the grid. Recently, plan released by Power Grid Corporation of India (PGCIL) entitled ‘Green Energy Corridors’ highlights topics such as Intra/Inter State transmission system strengthening, need for flexible generation, establishment of Renewable Energy Management Centre(REMC), forecasting etc. to address intermittency and variability aspects as well as grid integration issues of large scale RE generation. There are potential problems associated with large scale integration of RE generation such as transmission and distribution congestion, transmission equipment deferral, need for spinning reserves, need for ancillary services (frequency regulation, voltage and reactive power support) and ramp rate control. We believe from global experience that energy storage system (ESS) when designed and implemented at various levels of grid can mitigate the problems mentioned above. Countries like USA, Canada and Germany etc. have already started with multi-megawatt installations of these fast responding, flexible and remotely controlled energy storage systems for applications such as frequency regulation, transmission support, ramp rate control and peak power shifting etc. on their grid.

3. Energy Management – These are large scale applications of storage which supports the baseload generation and reduces usage of peaker plants. Energy storage is not new in India. Lead acid cells are widely used in residential sector for UPS and back up applications. Pumped hydro has been used for bulk energy time shift and energy management by power producers. Li-ion and flow batteries have got a lot of traction in the recent years due to steep decline in cost and advancement in technology. Li-ion batteries are more ideal for high power and short duration (15min to 4hour) applications such as frequency regulation, RE Integrations etc. Flow battery which is relatively new but with higher cycle life is ideal for long duration application (>4 hours) such as energy shifting. With the recent steep decline in Lithium Battery prices , we have seen a lot of ongoing/up-coming installation of battery based energy storage system with Li-ion batteries. In Lithium Ion mostly Li-NMC & Li-LFP technologies are leading the energy storage market and most of the key battery manufacturers have announced GWh scale

expansion plan to cater the growing need. The important

parameters of batteries that play an important role is technology adoptions are DOD, Cycle Life, Efficiency , Degradation , Self -Discharge , Foot-print , O&M cost etc. Further

The electricity cannot be effectively stored in its own form. It can be converted into

, for solar projects beside the battery technology the design topology of the project

another form that can be stored and converted back to its original form when needed.

i.e. AC Coupled, DC Coupled or Hybrid Coupled also play an important role in overall

There are various ways to store energy. Common examples are electrochemical energy

optimization of the project . Conventionally AC Coupled has dominated the energy

(batteries), mechanical energy (flywheel, compressed air), potential (pumped hydro),

storage market but in recent a few years DC Coupled design because of its unique

thermal (molten salt), chemical (hydrogen, synthetic natural gas), electrical (capacitor,

advantages have created a lot of traction in the market .

magnetic fields). From an electrical standpoint, these energy storage methods act as

Mr. Sagnik Ghoshal

Mr. Kapil Kumar

BD – Energy Storage

Head – Solar Technology, Fortum

Subhasree Projects Pvt Lt.

India has an ambitious plan of 175 GW renewables by 2022, main challenge in achieving these targets could be the ability of grid to undertake renewables, there we believe storage has a key role to play . We have seen that during the last few months many solar + storage tenders have been released and many more large scale tenders are also expected in the upcoming years. So it becomes very important to select the right technology to build sustainable and profitable projects.

As a turnkey Solution provider, Subhasree has to often

Selection of the storage system depends a lot on the application and requirement. Storage system for a fast response

work with the customers to select the right make and size

frequency regulation would be different from the storage system of energy shifting. There are various technologies

of the system. This not only affects the overall working

available in the market each having its own advantages and disadvantages. Selecting the right battery application,

and usability of the solar solution as a whole, but also

designing an optimized system and operation strategy can be the difference between the make or break of the project.

affects the economics of the system to a large scale.

For the storage system coupled with solar projects, We do see that a DC-coupled system has certain advantages,

The question we often ask our customers to ask when

because of its ability to capture clipped energy and reduce balance of plant costs due to the shared bi-directional

choosing products is – What are you looking to achieve out of the system being installed? If the answer is Energy Cost Reduction, it is usually a fine balance to obtain between the largest battery system that can provide you the longest solar storage and the overall economics of the project evaluated over a period of time. If the answer

inverter and the evacuation infrastructure. However, it does come at the cost of reduced flexibility in charging. Important parameters to be evaluated between different energy storage systems are capacity & power, depth of discharge, life cycle of batteries, round trip efficiency, storage system components life and warranty. While choosing the manufacturer it is also important to evaluate their track record and bankability in the long run. Apart from initial capex, O&M cost over project lifetime and after sales service are equally important criteria for the selection of manufacturer.

is Energy Backup, care must be taken to allow for the best systems and components to allow for the most reliable solution with the least after-commissioning support. We use our own energy monitoring platform to provide

Mr. Amit Beriya

the customer near real-time updates regarding system

DGM – Energy Storage & New Products, Amplus Solar

status, battery management, remote system control, etc. The primary areas of concern for any turnkey solution provider like ours is to ensure that we have the right partners, access to proper engineering assistance, robust system components and materials. Our partnership with RPG Raychem gives us access to their engineering expertise to provide the customers with the best, mostsustainable, value solution.

Battery energy storage systems are gradually becoming viable for multiple applications in integration with Solar PV plants. In a developer model, sizing as well designing system becomes very critical for project viability. Although battery is the major cost component in an energy storage system, but the battery inverter, balance of plant and system controller plays a very critical role in performance. Battery system is versatile in nature and hence the system size and design depend on the end application it is meant to serve. For example, if the application of battery system is to provide site power during grid outage a battery inverter capable of forming an island grid should be used whereas for an energy shift application cost of battery inverter can be saved by using only an On-grid battery inverter. With the right selection of the major components of a battery system – battery, power conditioning system (battery inverter) and the system controller, an optimized storage system can be selected to increase the commercial viability.

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Solar 23 Solar Quarter Quarter •• April April 2019 2019 23

Technology News

o amp up solar cells, scientists ditch silicon

grophotovoltaics Leads To Increased Yield For Power Generation & Crops

Silicon dominates the world of solar power. Even the newest solar cell designs, tandem

Agrophotovoltaics Leads To Increased Yield For Power Generation & Crops, Says Fraunhofer

devices that have a silicon solar cell below a cell made of a crystalline material called a

ISE; Claims Further Cost Reductions Possible With Economies Of Scale & Implementing

perovskite, rely on the material. Now, researchers are doing away with silicon altogether,

Learnings.

creating tandems from two of the best yet perovskites, each tailored to absorb a different

While some fear that solar ground mounted power plants at some point might run into

part of the solar spectrum. Because perovskites are easier to manufacture than silicon

space issues in certain regions, there are ways for optimisation. For example, it is possible

cells, the advance could lead to less costly solar power. “The high efficiency [of] these all-

to use solar systems for multiple purposes, such as for power generation and agricultural

perovskite tandem solar cells is an important advance in photovoltaics and [is] likely to

support. Fraunhofer ISE studied power generation and crop yield from a 194 kW of solar

lead to further innovations,” Prashant Kamat, a chemist at the University of Notre Dame in

PV array put up on a third of a hectare of arable land mounted on a 5-meter high structure

South Bend, Indiana. Perovskites are also better than silicon at absorbing high-energy blue

near Lake Constance in Germany. While in 2017, the land use efficiency was found to be

photons from sunlight. That has prompted numerous research groups and companies to

160% per hectare, in 2018 it has been found to have reached 186% per hectare.

marry the two, topping conventional silicon cells—which are better at snagging lower-

The joint project called ‘Agrophotovoltaics-Resource Efficient Land Use (APV-RESOLA)’,

energy yellow, red, and near-infrared photons—with semitransparent perovskite cells

discovered that the farmers of Heggelbach were able to increase the yields for 3 out of 4

to double up on power production. One such tandem, created by startup Oxford PV in

crops grown under the agrophotovoltaic (APV) system that was greater than the reference

the United Kingdom, can reportedly achieve 28% solar-to-electrical efficiency. Problems

yield. Partial shading underneath the photovoltaic modules improved the agricultural

remain. One is that tin readily reacts with oxygen from the air, creating defects in the tin-

yield, and the sun-rich summer increased the solar electricity production. Solar irradiation

lead perovskite’s crystalline lattice. These defects disrupt electrical charges’ movement

under the APV system was about 30% less than the reference field. Presence of the solar

through the cell, limiting the cell’s efficiency. Now, researchers led by Joseph Berry, a

arrays was also responsible for distribution of precipitation and soil temperature.

physicist at the National Renewable Energy Laboratory in Golden, Colorado, report they’ve

Solar power generation from the panels in 2018 increased 2% annually to 249,857 kWh, with

found a way to prevent tin in a perovskite from reacting with oxygen. They added a simple

electricity production costs of such a system competitive with a small PV rooftop system.

organic compound to their tin-lead perovskite mix called guanidinium thiocyanate,

Further cost reductions due to economies of scale and learning effects are anticipated.

which essentially coats the perovskite crystallites that make up the solar absorbing film,

Farmers will also be able to have an additional source of income if the electricity generated

preventing oxygen from seeping inside to react with the tin. As a result, the efficiency of

is stored and used on site. Arid climate zones can benefit from such systems that also

the tin-lead perovskite layer jumped from 18% to 20%. When Berry and his team combined

provides shade for crops and livestock. Fraunhofer says it is already working on several

this material with a conventional high-energy absorbing top perovskite layer, the resulting

projects to transfer the technology to threshold and developing countries as well as for

tandem cell converted 25% of the energy in sunlight to electricity.

new applications.

unlight and Mirrors Still Seen as Part of Australia’s Future Power Mix

An Australian energy startup says it has found a solution to the problem that has dogged some thermal solar technology projects, removing instability in the process of storing the generated electricity. Vast Solar’s technology differs from rivals because it uses liquid sodium as a heat transfer agent, improving control of the sunlight bouncing off specialized mirrors, according to Chief Executive Officer Craig Wood. The mirrors focus the light on liquid sodium receivers placed on the top of a tower, with the sodium then used to transfer heat to molten salt storage tanks. Other projects typically also use molten salt as the transfer agent. “Across the industry there has been a number of issues people have had with failures with heat exchanges and also with the hot salt tanks,” Wood said in an interview. “These failures have been caused to a greater or lesser extent by inadequate control of the heat transfer fluid temperature out of the solar receiver.” Vast Solar may help shore up confidence in the technology after rival SolarReserve Inc. failed to arrange financing for its A$650 million ($463 million) Aurora Solar Energy project in South Australia. That project was seen adding a crucial new supply to the state’s troubled grid amid global efforts to transition to cleaner power generation. Californiabased SolarReserve didn’t respond to a request for comment. Thermal solar technology’s attraction lies in firming up solar generation -- utilizing thermal storage to keep the power flowing when the sun isn’t shining. However, operational issues have cast doubt on its reliability. Vast Solar’s use of liquid sodium allows it to move away from the central tower design used at most existing solar thermal plants, instead using multiple receiving towers which Wood says can unlock efficiencies and reduce the risk of system outages. Wood’s company has had a pilot project in operation since 2017 and plans to have a socalled 30 megawatt “reference plant” online in three years.

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ew type of silicon promises cheaper solar technology

An international research team led by The Australian National University (ANU) has made a new type of silicon that better uses sunlight and promises to cut the cost of solar technology. The researchers say their world-first invention could help reduce the costs of renewable electricity below that of existing coal power stations, as well as lead to more efficient solar cells. Senior researcher ANU Professor Jodie Bradby said silicon was used as the raw material for solar cells because of its abundance, low-cost and non-toxicity. “But the standard form of silicon does not use all available sunlight,” Professor Bradby said. “Just by poking silicon with a tiny hard tip, we’ve created a more complex silicon capable of absorbing more sunlight than the standard type commonly used in solar cells. “We have proved that we can easily make this new kind of silicon—previously thought unobtainable under normal room temperature and pressure—which could be used for making more efficient solar cells and lead to cheaper energy.” Dr. Sherman Wong, who worked on the study for his Ph.D. at ANU, is the first author of the paper published in the journal Physical Review Letters. He said the team was exploring a little-known property of silicon—its ability to exist in different crystal forms. “Silicon can also take many crystal forms that have different and useful properties,” said Dr. Wong, who is now at RMIT University. “The new type of silicon we’ve created is called r8-Si. Instead of the atoms being square or cubic like in standard silicon, it’s more complex—shaped a bit like a diamond on playing cards, only it’s in 3-D. “It’s an exciting field and there is a multi-billion dollar industry built around silicon manufacturing, so silicon is a super important material that’s worth optimising.” Professor Bradby said the team would use unique high-pressure facilities at ANU to develop ways of making enough material to produce a prototype solar cell.

Solar Quarter • April 2019 24 24

INDUSTRY Industry Insights INSIGHTS

Why Is Mono Silicon Wafer Getting Bigger And Bigger?

PV Modules using large wafers can save:

{

Bracket, pile foundation, Module and Bracket Information DC Combiner box / String inverter Land

In recent years, PV technologies have been developing rapidly. With respect to cell, the high-efficiency PERC, bifacial cell and black silicon technologies have started mass production gradually, while N-type and heterojunction technologies have obtained footholds in the market; with respect to module, the double-glass, half-cell, multi-busbar and shingled-cell technologies have realized large-scale industrialization. With respect to monocrystalline silicon wafer, many technological breakthroughs have been made and more noteworthy, the wafer is getting bigger and bigger. Before 2010, monocrystalline silicon wafers are small-size with 125mm width (f164mm silicon ingot diameter) and a few 156mm (f200mm) wafers. After 2010, 156mm wafers have occupied an increasingly bigger share and become the mainstream. 125mm P-type wafers were almost eliminated around 2014, only some IBC or HIT cells. At the end of 2013, LONGi, Zhonghuan, Jinglong, Solargiga and Comtec jointly issued the standards for M1 (156.75-f205mm) and M2 (156.75-f210mm) wafers. Without changing the size of the module, M2 could increase the module power by more than 5Wp, rapidly becoming the mainstream and maintaining the status for several years. During that period, there were also a few M4 (161.7-f211mm) wafers on the market, the area of which was 5.7% larger than M2, and such wafers were mainly applied to N-type bifacial modules.

costs of bracket and pile foundation per Wp is reduced; when large modules have little effect on the transportation and installation speed, the installation efficiency of modules and brackets per Wp will be enhanced; as the capacity per array is determined by the inverter and can be deemed fixed, high-power modules can reduce the use of combiner boxes or string inverters, and the reduction in the use of brackets can reduce the footprint of the array (considering the front and back spacing and the left

In the second half of 2018, due to intensified market competition, many enterprises

and right spacing of the brackets), and the reduction in the number of brackets and

turned their attention to silicon wafers again, hoping to increase the power of modules by

their footprint can reduce the use of power cables. It’s estimated that a 425Wp module

expanding the size of silicon wafers to secure product competitiveness. One methodology

using 166mm wafers can save the BOS cost by at least RMB0.05/Wp compared to the

is to copy the release of M2, continue to increase the width across the wafer, to 157mm,

380Wp module using M2 wafers (both of 72-cell type). If a tracker is used or in an

157.25mm or 157.4mm for instance, without increasing the size of the module, but

overseas area where the labor cost is high, more BOS costs will be saved.

the increase in power obtained is limited, the requirement on production accuracy is increased, and the certification compatibility may be affected (e.g. failing to meet the creepage distance requirement of UL). Another methodology is to follow the route of increasing the width across the wafer from 125mm to 156mm, and increase the size of the module, such as 158.75mm pseudo-square wafer or square wafer (f223mm), the latter increases the wafer area by about 3%, which increases the power of a 60-cell module by nearly 10Wp; meanwhile, some N-type module manufacturers choose 161.7mm M4 wafers; some enterprises plan to launch 166mm wafers.

The above two points show that when the equipment production and transportation are not a problem, the wafer size should be as large as possible to save more cell and module costs and system BOS costs. For this reason, cadmium telluride thin film cell manufacturer First Solar directly increases the module size from the fourth-generation 1200*600mm to 2009*1232mm. The module area （near 2.5m2） and the weight （35kg） should be the limit values obtained after comprehensive analysis. For crystalline silicon modules, it’s necessary to take the opportunity of this industry change to adjust the size to a more stable and cost-effective one, just like the adjustment from 125mm to 156mm. According

Now let’s take a look at why the wafer size is getting bigger and bigger.

to a WeChat article titled “Monocrystalline is easier to realize large wafer size”, the main

1. From the perspective of production, the production rates of cells and modules (wafers/

factor restraining wafers from becoming bigger is the diffusion furnace. To make the wafers

hour, modules/hour) are basically fixed, and the increase in the size of wafer can

bigger in a diffusion furnace with limited diameter, the pseudo-square monocrystalline

enhance the power of cells or modules produced per unit time, which can reduce the

silicon wafer should have certain advantages over the square monocrystalline silicon wafer.

equipment, manpower and even other costs per Wp of the company, thereby reducing

In conclusion, big wafers can bring obvious value to the photovoltaic industry. Major

the manufacturing costs of cells and modules, especially when 125mm wafers are

enterprises should take this opportunity to determine a size that can be relatively stable for

switched to 156mm wafers.

many years to reduce repeated investment in production line transformation and module

2. From the perspective of the cost of power station system, taking terrestrial power station as an example, under the same efficiency, the module obtains higher power due to bigger wafer size, while the number of modules in a string remains unchanged, as a result, the module efficiency on a single bracket increases accordingly, and the

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certification expenses . The 166mm monocrystalline silicon wafer, as the maximum size compatible with all production lines, seems to be a good choice at the current stage. Credits: Longi Solar

SolarQuarter Quarter••April April2019 2019 25 Solar

INDUSTRY Industry Insights INSIGHTS

Innovative Solar Applications & Latest Technology Breakthroughs Solar skin design Sistine Solar, a Boston-based design firm, is making major strides with the concept of aesthetic enhancement that allow solar panels to have a customized look. The MIT startup has created a “solar skin” product that makes it possible for solar panels to match the appearance of a roof without interfering with panel efficiency or production. Solar powered roads These roadways are heralded for their ability to generate clean energy, but they also

Advances in solar panel efficiency A number of achievements by various panel manufacturers have brought us to today’s current record for solar panel efficiency: 23.5 percent, held by premium panel manufacturer SunPower. The solar cell types used in mainstream markets could also see major improvements in cost per watt – a metric that compares relative affordability of solar panels. Thanks to Swiss and American researchers, Perovskite solar cells (as compared to the silicon cells

include LED bulbs that can light roads at night and have the thermal heating capacity to

that are used predominantly today) have seen some major breakthroughs in the past

melt snow during winter weather.

two years. The result will be a solar panel that can generate 20+ percent efficiency while

Wearable solar

still being one of the lowest cost options on the market.

Past few years saw an innovation in solar textiles: tiny solar panels can now be stitched

Of course, the work doesn’t stop there, as MIT researchers reminded us in May when

into the fabric of clothing. The wearable solar products of the past, like solar-powered

they announced new technology that could double the efficiency of solar cells overall.

watches, have typically been made with hard plastic material. This new textile concept

The MIT lab team revealed a new tech concept that captures and utilizes the waste heat

makes it possible for solar to expand into home products like window curtains and

that is usually emitted by solar panels.

dynamic consumer clean tech like heated car seats. This emerging solar technology is

Solar thermal fuel (STF)

credited to textile designer Marianne Fairbanks and chemist Trisha Andrew.

Luckily, MIT Professor Jeffrey Grossman and his team of researchers have spent much

Solar batteries: innovation in solar storage

of the past few years developing alternative storage solutions for solar, the best one

The industry-famous Tesla Powerwall, a rechargeable lithium-ion ion battery product

appears to be solar thermal fuels (STFs).

launched in 2015, continues to lead the pack with regard to market share and brand

The technology and process behind STFs is comparable to a typical battery. The STF can

recognition for solar batteries. Tesla offers two storage products, the Powerwall 2.0 for

harness sunlight energy, store it as a charge and then release it when prompted. Recent

residential use and the Powerpack for commercial use.

years saw the invention of a solid state STF application that could be implemented in

Solar Tracking Mounts

windows, windshields, car tops, and other surfaces exposed to sunlight.

.Trackers allow solar panels to maximize electricity production by following the sun as

Solar water purifiers

it moves across the sky. PV tracking systems tilt and shift the angle of a solar array as

Stanford University researchers collaborated with the Department of Energy this year

the day goes by to best match the location of the sun. GTM Research recently unveiled

to develop a new solar device that can purify water when exposed to sunlight. The

a recent report that shows a major upward trend in the popularity of tracking systems.

minuscule tablet (roughly half the size of a postage stamp) is not the first solar device

The report stated that by 2021, almost half of all ground mount arrays will include solar

to filter water, but it has made major strides in efficiency compared to past inventions.

tracking capability.

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Credits: Excerpts From EnergySage

Solar Quarter • April 2019 26

Company News

ourth Partner Energy Commissions Solar Projects Of Over 3000 KWp In Telangana Under SECI’s Rooftop Scheme

rowatt Presenting Latest Product Models in a Row of Exhibitions

Fourth Partner Energy, India’s leading distributed solar rooftop energy company

At the start of April, Growatt exhibited its latest residential inverter, Growatt MIN 2.5-6k

announced the commissioning of 8 solar projects with a capacity of 3116 kWp in the

TL-X and commercial & industrial inverter, Growatt MAX 50-80k in a series of global trade

State of Telangana, as part of an initiative by the Solar Energy Corporation of India to

show events. Growatt engineers and representatives received delegates at Smart Energy

increase renewable energy adoption across government offices, under its 1000 MWp Grid-Connected Rooftop Solar PV System Scheme. The projects have been implemented across prestigious institutions like National

Conference & Exhibition in Australia, International Green Energy Expo & Conference in South Korea, Solarex Istanbul in Turkey and the Solar Show in Vietnam. “The global solar market is expected to grow at double-digit rate this year. According to IHS Markit, solar installations would reach 129 gigawatts. This is a great opportunity

Institute of Technology - Warangal, Prof. Jayashankar Telangana State Agricultural

for us to grow our business and bring our reliable inverter solutions to the global solar

University (PJTSAU), Central Research Institute for Dryland Agriculture and select BSNL

market.” said Lisa Zhang, Growatt Marketing Director. As the NO.1 Chinese residential

and CRPF offices.

solar inverter supplier, Growatt has been exporting its inverter solutions since its

In Telangana, the scheme provides for government offices to switch to solar power at zero capital costs, and avail electricity at a flat rate of Rs 3.14/unit for 25 years; which will eventually result in average savings of 50-60% in their cost of power consumption.

foundation. With its product reliability and professional customer service, Growatt has earned reputation among the clients around the world. With the development of technology and solar policies, the solar industry is changing and PV inverter brand is revolutionizing their solutions. “There are new developments in our products. We’ve

The largest of these SECI projects is at NIT, Warangal with an operational capacity of

launched MIN 2.5-6kTL-X for residential systems and MAX 50-80kTL3 for commercial

1000 kWp. In Hyderabad, PJTSAU’s installation has a capacity of 717 kWp. Dr. Sudheer

and industrial solar. They are smart, capable, reliable and up-to-date. Clients are very

Kumar, Registrar, PJTSAU added, “Clean and green energy is what Telangana is moving

interested in our new inverters. ” Zhang introduced.

towards and Fourth Partner helped us make the transition in a smooth, hassle-free

Growatt MIN 2.5-6kTL-X has an appealing design with OLED display and touch button.

manner. They provided all end-to-end services and assistance, offering high quality solar

At first glance, customers are attracted by such compact and beautiful design. Compared with solar inverters of the ‘old’ generation, it’s about 35% lighter because it uses

power generation.” Vivek Subramanian, Co-Founder & ED, Fourth Partner Energy said, “We are proud to

aerospace grade materials, light and flame-retardant. So it would be easier to carry and install. Growatt MAX 50-80kTL3 has got 6 MPPTs and quad-core chips, which will greatly

be associated with all these projects in our home State and endeavour to work towards

increase its flexibility for configuration on irregular roofs and enhance its capability to

Telangana achieving its solar energy targets. These projects will just not result in cost

handle functions like surge protection, I-V curve scan, fault waveform record, one-click

savings for the clients but also cut Carbon emissions by around 4500 tons annually,

diagnosis etc.

equivalent to planting over 2 lakh trees in India’s youngest state.”

uPont Photovoltaic Solutions Partners with Fraunhofer ISE

Collaboration aims to optimize accelerated testing protocols for c-Si solar panels DuPont Electronics & Imaging’s Photovoltaic Solutions business announced it has entered into a collaboration agreement with the Fraunhofer Institute for Solar Energy Systems ISE, a leading institute for applied scientific and engineering research and development in solar energy, to optimize accelerated testing protocols for crystalline silicon solar panels.Fraunhofer ISE will validate and accelerate solar panel sequential testing methods developed by DuPont, to enable service life estimation calculations. The tests aim to address the most common types of panel degradation observed in the field at the backsheet level, by type of material used. Commenting on the agreement, Kaushik Roy Choudhury, Ph.D., Global Reliability Manager, DuPont Photovoltaic Solutions said: “We are pleased to be working alongside the scientists at Fraunhofer ISE to help validate our set of accelerated tests. Studying how panels age in the field under multiple environmental stresses is critical for customers and future development of materials.” The proposed tests will be based on DuPont’s Module Accelerated Sequential Testing protocols, whereby solar panels are subjected to several sequences that combine damp heat, UV and thermal cycling to generate accelerated test conditions aligned with realistic stresses experienced in the field. Karl-Anders Weiss, Ph.D., Project Manager, Fraunhofer ISE said: “The aim of this work is to determine whether the proposed accelerated testing protocols can accurately predict service lifetime of solar panels made with different types of materials. Our intent is to move from the current IEC standards which are limited to predicting early stage failure mechanisms, to a longer-term view of panel aging in the field.” As part of this collaboration, the testing protocols will be refined by Fraunhofer ISE to enable a simpler and faster recipe that could help to resolve one of the biggest challenges of the photovoltaic industry.

w w w . s o l a r q u a r t e r . c o m

Solar Quarter • April 2019 27

INDUSTRY Industry Insights INSIGHTS

Solar Energy: The Perfect Match For EVs

EVs and Solar as a supporting source of power.

A brief about EVs.

Recently there has been much hype around EVs what with the Indian government pledging

There are mainly three types of EVs classified by the amount of electricity they use for their

to replace petrol and diesel cars with EVs by 2030.

power source. They are: Hybrid Electric Vehicles (HEVs), Plug-in Hybrid Electric Vehicles

Though it is an ambitious plan, getting the supporting infrastructure up and running will be

(PHEVs) and Battery Electric Vehicles (BEVs).

a major challenge. Besides, one more aspect and that too a very important one is whether

Hybrid Electric Vehicles: HEVs are powered by a combination of electricity and petrol.

the switch over to EVs is really serving the purpose for which they were basically put on

While the electricity is generated by the car’s braking system to recharge the battery,

the roads? Whether the switch over to EVs will actually make a difference in emissions;

also called ‘regenerative braking’, this powers the electric motor which helps in the initial

whether it will help in reducing air pollution?

start off and then the petrol engine takes over as the speed or load increases. Hybrids are

It will definitely help in reducing India’s oil import bill to a great extent but is an electric

designed to ensure the best economy in various driving conditions by controlling both the

vehicle as green as it is supposed to be? Well, the answer lies in the fact that an EV will only

motors (petrol and electric) by an internal computer.

be as green as the electricity it runs on.

Plug-in Hybrid Electric Vehicles: Also called Extended Range Electric Vehicles (EREVs),

For instance, let’s take the example of a country like Norway. It’s EVs are the cleanest in the

they are also powered by both electricity and petrol. A PHEV’s battery can be charged by

world, as 98% of its electricity is sourced from hydropower, a form of renewable energy.

‘regenerative braking’ as well as by plugging in an external power charging outlet. The

64% of India’s electricity is produced by means of conventional sources like coal, diesel etc., 2% from nuclear and 34% from renewable sources. Out of 34% of renewables, the share of solar consists of 6.9%. Large- and small-scale hydro, wind and biomass make up for the rest. With only a small share of power sourcing coming from renewables, and electrification of mobility gathering steam in the near future, the potential impact of EVs on electricity cannot be ruled out. What will happen when the share of EVs gradually increases in the future? Will it serve the purpose of a clean energy revolution if the EVs will be charged by electricity generated through conventional forms? Solar is the only answer which will justify the zero-emission purpose of embracing EVs. Why particularly solar and not wind or other renewables? Solar PV technology is the only form of renewable which can be heavily decentralized or dispersed by way of installing small scale solar power plants. A dispersed energy system consisting of a small-scale power plant will put the power source closer to the end user, reducing transmission and distribution inefficiencies and most importantly relieving the impact of extra loading on the grid. It will offer dual benefits of reducing emissions by adopting EVs as a means of transport and reducing fossil fuel use, thereby increasing eco-efficiency. With the gradually decreasing prices of solar and new break-throughs in PV technology

petrol engine also acts as an extension by recharging the battery as it gets low. Thus, unlike conventional hybrids, PHEVS can be plugged-in and recharged from an outlet, allowing them to drive extended distances using just electricity. In these kinds of hybrids, the choice of the primary source of energy lies with the end user as some car makers favour petrol and some favour electricity. Battery Electric Vehicles: Unlike any of the above two hybrids, a Battery Electric Vehicle is exclusively powered by electricity which is sourced from a rechargeable battery. An EV is solely powered by an electric motor instead of an ICE (Internal Combustion Engine). It gets power from a controller which regulates the amount of power based on the use of the accelerator pedal by the driver. EVs have minimum parts, have no fuel tank, or a petrol engine or an exhaust pipe and are totally emission free. EVs can also charge their batteries through ‘regenerative braking’ like hybrids. When an EV’s batteries are depleted, they can be charged either at your home or at a dedicated ‘EV charging station’. It is very much similar to charging your mobile phone. Due to their sustainability and cheap running costs, EVs are the way to the future and they are set to make an entry into the market with a stealth which is going to catch every one unawares. Now let’s discuss the potential of EVs to replace ICEs (Internal Combustion Engines), their benefits, implementation challenges and solutions.

coupled with better and more effective storage systems with improved efficiencies and

Many countries around the world, along with India, have pledged to totally scrap out all

decreasing costs, we will be witnessing a huge disruption in the automobile industry. Solar

vehicles running on fossil fuels to be replaced with EVs in a course of a few years.

will be the perfect matching partner for EVs and the future is bright for an EV market

The first step in realizing this dream would be to educate the masses and create an

integrated with Solar PV.

awareness about the financial and social benefits of using an EV. Along with the same, the

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Solar Quarter Quarter ••April April 2019 2019 28 Solar 28

INDUSTRY Industry Insights INSIGHTS government should build confidence in the general public by framing favourable policies and encouraging investment in the supporting infrastructure which is an essential backbone of EVs.

“With the gradually decreasing prices of solar

Financial and Social benefits

and new break-throughs in PV technology

An EV is very much economical compared to an ICE (Internal Combustion Engine). On

coupled with better and more effective

an average, an EV can save up to seven times on fuel costs. An EV practically has no

storage systems with improved efficiencies

maintenance costs as it has minimal parts compared to an ICE. No clutch, no gears and no petrol or diesel engine.

and decreasing costs, we will be witnessing a

Besides, EVs are subsidized by the government’s FAME (Faster Adoption and Manufacturing

huge disruption in the automobile industry.”

of Hybrid and Electric vehicles) scheme under which incentives up to Rs 25,000/- are offered for electric scooters and motorcycles, up to Rs. 61,000/- for three wheelers and up to Rs. 1,38,000/- for electric cars. Reduced harmful exhaust emissions will lead to better air quality which will lead to less health problems caused by pollution.

“The

In terms of safety, EVs have a lower centre of gravity due to which they are less likely to roll over. EVs also have a lower risk of major fires or explosions.

ministry

power

under

the

Government of India has laid down guidelines

When you prefer to drive an EV in lieu of an ICE, you are contributing your bit towards the environment, you are supporting the fight against climate change and you are reducing

and standards for charging infrastructure

your carbon footprint. Besides, you are also helping in reducing the country’s oil import

to enable faster adoption of EVs in India

bill.

by ensuring safe, reliable, accessible and

Changeover to EVs – A changeover of the mindset

affordable

Driving an EV is not the same as driving a petrol or diesel car. In conventional fossil fuel

charging

infrastructure

and

eco-system.”

powered cars, when you run out of fuel you go to the gas station for a re-fuel which will take five minutes. In case of an EV, when your car’s batteries are depleted, you have to get your car batteries charged at an EV charging station or at your home or work place. This usually takes from 30 minutes to five hours depending on the type of charger (More on this in the next write up). It is almost the same as charging your mobile phone.

and any individual/entity is free to set up public charging stations by following the

An EV owner will have to plan his schedule accordingly to charge his vehicle, but most EV

standards and protocols laid down by the government.

users usually charge their vehicles at home in the evening after the end of the day’s work.

Any person wanting to set up a PCS can apply for connectivity and he will be provided

Generally public charging stations are used when in transit on highways.

with power supply connectivity on a priority basis by the distribution company licensee.

Challenges

� Battery costs have come down drastically since the past few years and are expected to

As people are generally bound to charge their EVs in the evenings when they come back home from work, there is a possibility that this may lead to a significant spike in evening

halve due to a growing battery manufacturing industry with significant economies of scale.

peak loads at the local level. These hot spots will generally be concentrated around

With the government sending out the right signals and making ambitious announcements

residential premises. Are our utility companies ready to take on the extra load? If not, what

and looking at the future potential of EVs, battery manufacturing companies are readying

is the next best alternative?

themselves to meet the coming demand with more enhanced capacities at competitive

Another major challenge would be the development of supporting infrastructure by way of installing sufficient charging stations at multiple points in the cities as well as on highways. This will require huge capital investments. Besides, will the government act with agility in

prices. � The potential of EV charging infrastructure manufacturing in India

giving permissions, doing away with red tape and make this procedure simpler, avoiding cumbersome permissions and paperwork?

Shared electric and connected mobility could help save up to INR 20 lakh crore in oil imports and nearly one giga tonne of carbon dioxide emissions by 2030.

EESL (Energy Efficiency Services Ltd) under the Ministry of Power is committed to

A major hurdle about an EV is the prohibitive battery replacement costs. Battery costs will

fulfilling GOI’s vision by creating an eco-system for manufacturers and suppliers

have to come down and efficiencies and power capacity will have to increase.

to invest in E-Mobility in India. Aggregating demand through bulk procurement &

Solutions

guaranteed payments to suppliers.

� EV manufacturers can incentivise EV owners for delaying charging during peak load

public, EESL looks forward to the same type of acceptance to help EVs a success.

conditions. For e.g. BMW’s i3 EV owners were signed up for an 18-month program where the participants received alerts through a smart phone app asking them to delay

charging delays. Energy companies can tie up with EV manufacturers to develop a system where EV owners

Electricity regulators can even design effective rate structures to shift EV charging times using demand response wherein Discoms may offer attractive time-of-day tariff to promote off-peak charging. � Electricity regulators can play a proactive role in promotion of EVs wherein they can mandate Discoms to invest in EV charging infrastructure. The ministry of power under the Government of India has laid down guidelines and

Central government has announced that there will be no need for a license to establish EV charging stations in India.

would be allowed to operate as individual ‘energy hubs’ which would enable them to draw, store and return electricity to the grid, thus, balancing grid overloads.

EV adoption requires an effective charging infrastructure for creating the eco-system for EVs to operate smoothly.

charging of their EV. When accepted, the software allows BMW to halt the charging remotely. Participants were paid incentives based on the number of times they accepted

Replicating the success of LED revolution which received a mammoth support from

EESL has planned to replace the government’s fleet of five lakh conventional ICE cars with electric variants.

It aims to establish a charging infrastructure across all states.

EVs are set to bring in a major disruption in the automobile industry and the change is just over the horizon. - Mehul Gogri, DY. Manager - Corp Comms, Goldi Solar Pvt. Ltd.

standards for charging infrastructure to enable faster adoption of EVs in India by ensuring safe, reliable, accessible and affordable charging infrastructure and eco-system. Setting up of Public Charging Stations (PCS) has been announced as a de-licensed activity

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Solar Quarter • April 2019 29 29 Solar Quarter • April 2019

FACT

Cleantec

BOARD

Lands

Recently Bloomberg New Energy Finance (BNEF) released its annual authoritative rep key findings are as under with special emphasis o Global Clean Energy Investment

Global New Investment in Cle

Global clean energy investment totaled $332.1 billion / INR 23,10,000 cr in 2018 (drop of 8% over 2017)

Globally, Solar sector recorded the maxim wind and other RE

Global New Investment in Clean Energy, by Region

APAC region recorded the highest investment amongst all regions viz EMEA (European Middle East & Africa), APAC (Asia Pacific Region) and AMER (The Americas)

Wind recorded a positive growth of 3.2% @ $129 billion / INR 8,97,400 cr

For Market Outreach In Asia Pacific Vipul Gulati | m: +91 99209 17193 | e: vipul@firstviewgroup.com

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EMEA Growth

Two biggest financed Solar projects

Sector Growth % 2018 vs 2017: Total investment in solar was 24% to $130.8 billion / INR 9,09,975 cr (drop of 24% over 2017) due to declining capital costs and policy changes.

APAC Region (-22.4%) Degrowth over 2017

800MW NOORm Midelt PV and solar thermal portfolio in Morocco @ $2.4 billion/ INR 16,696 cr.

709M NLC Tangedco India, at a co @ $0.5billion/

For Customised Research Reports & Market Analysis Nitin Raikar | m: +91 8369859974 | e: nitin@firstviewgroup.com

Solar Quarter â&#x20AC;˘ April 2019 30

For Meg meg

ch Investment

www.solarquarter.com

scape 2018

port on the global investments attracted in the clean energy space for the year 2018. The on overall global outlook and India specific pointers:

ean Energy, by Sector

mum investment for 2018 vis-vis sectors

Global New Investment in Clean Energy APAC

In APAC region, Solar & Wind dominated the investment inflows in Cleantech technologies in 2018

New Investment in Clean Energy India

Region - 28% h over 2017

s include:

MW o PV plant in ost of about / INR 3478 cr

AMER Region (-2.5%) Degrowth over 2017

“

Europe attracted clean energy investments to the tune of $74.5 billion / INR 5,18,296 cr (up by 27% over 2017)

Advertising & Branding Opportunities ghna Sharma | m: +91 8850563096 | e: ghna@firstviewgroup.com

w w w . s o l a r q u a r t e r . c o m

India attracted cleantech investments close to $ 11 Billion / INR 76,500 cr in 2018 (approximately derived from BNEF charts)

“ “

Amongst the top asset finance deals - 950 MW Moray Firth Offshore Wind Farm @Debt financing.”

Global venture capital and private equity attracted investments to the tune of 127% to $9.2 billion / INR 64,000 cr the highest investment since 2010.”

“

Offshore wind projects witnessed a spurt in growth @ $25.7 billion / INR 1,78,794 cr.”

Source: Infographic Data derived and compiled from Bloomberg NEF (BNEF) report, Clean Energy Investment Trends, 2018 Exchange Rate : 1 USD = 69.62 INR

Solar Quarter • April 2019 31

Global Renewable

FACT

BOARD

North America RE Installation: 636GW % of Global RE: 27.06

#5 RE Installation: 366GW % of Global RE: 15.62

South America

RE Installation: 46GW % of Global RE: 1.96

RE Installation: 226GW % of Global RE: 9.6

Cumulative Global RE Installed Capacity @2018

2350 GW

Solar Energy - Highest YoY RE capacity addition in 2018

24%

Wind Energy - 2nd Highest YoY RE capacity addition in 2019

9.5%

7.90%

Cumulative Installed Capacity share by Top 5 countries - China, US, Brazil, Germany & India

56%

Global Growth accounted by Solar and Wind in 2018 RE Capacity addition

84%

Hydropower installed capacity - Highest share among all RE technologies

1172 GW

Highest New RE Capacity addition by Asia

61%

Wind Energy installed capacity - 2nd Highest share among all RE technologies

564 GW

11.4%

Solar Energy installed capacity - 3rd Highest share among all RE technologies

486 GW

Annual RE Capacity addition in 2018

Global RE YoY growth over 2017

Asia YoY growth over 2017

171 GW

For Market Outreach In Asia Pacific Vipul Gulati | m: +91 99209 17193 | e: vipul@firstviewgroup.com

w w w . s o l a r q u a r t e r . c o m

For Customised Research Reports & Market Analysis Nitin Raikar | m: +91 8369859974 | e: nitin@firstviewgroup.com

Solar Quarter â&#x20AC;˘ April 2019 32

For A Meg

Energy Landscape www.solarquarter.com

Europe

Asia

RE Installation: 1043GW % of Global RE: 44.43

Africa

Australia

RE Installation: 31GW % of Global RE: 1.32

Top 5 Global RE Nations

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w w w . s o l a r q u a r t e r . c o m

Global RE Technology Capacity (GW) @2018

Source: Infographic Data derived and compiled from IRENA (2019), Renewable capacity statistics 2019, International Renewable Energy Agency (IRENA), Abu Dhabi Infographics By Firstview Media Ventures Pvt. Ltd.

Solar Quarter â&#x20AC;˘ April 2019 33

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Solar Quarter â&#x20AC;¢ April 2019 34

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Solar Quarter â&#x20AC;¢ April 2019 35

3.125MW

Central Inverter Solution Higher yields Lower system cost Suitable for harsh environments

Sineng Electric Co., Ltd. NO.6 Hehui Road, Huishan District, Wuxi, China

Sineng Electric (India) Pvt Ltd. Plot No. 56 & 57, Bommasandra - Jigani Link Rd Industrial Area, Bangalore, Karnataka, India w w w . s o l a r q u a r t e r . c o m

Solar Quarter â&#x20AC;¢ April 2019 36